BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2203
                                                                  Page  1

          Date of Hearing:   April 9, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                AB 2203 (Chesbro) - As Introduced:  February 20, 2014 

          Policy Committee:                              Governmental  
          Organization Vote:                            19-0

          Urgency:     No                   State Mandated Local Program:  
          Yes    Reimbursable:              No

           SUMMARY  

          This bill prohibits the obliteration, mutilation, or marking out  
          of a manufacturer's name on metal beer kegs.

           FISCAL EFFECT  

          Negligible and absorbable enforcement costs to the Department of  
          Alcoholic Beverage Control.

           COMMENTS 

          1)  Purpose.   According to the author, current law prohibits the  
            removal of manufacturer names, brand names, print, or markings  
            placed on containers such as returnable beer containers or  
            cartons made of wood or fiber board.  AB 2203 simply adds  
            metal kegs to the list of containers for which removal is  
            prohibited.

          2)  Keg Theft.   The author argues metal theft is a chronic  
            problem, and the beer industry is not immune from being  
            victimized.  Beer manufacturers invest significant resources  
            into refillable metal kegs.  Unfortunately, some of these kegs  
            have been stolen and resold for scrap metal value.

            The author asserts existing law makes it illegal for a junk  
            dealer or recycler to purchase or accept metal kegs marked  
            with indicia of ownership from any person or entity other than  
            the indicated owner.  Indicia of ownership includes words,  
            symbols, or registered trademarks printed, stamped, etched,  
            attached, or otherwise displayed on the exterior surface of  
            the beer keg that reasonably identifies the owner.








                                                                  AB 2203
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           Analysis Prepared by  :    Joel Tashjian / APPR. / (916) 319-2081