BILL ANALYSIS
AB 2284
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Date of Hearing: April 22, 2002
ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
Jerome Edgar Horton, Chair
AB 2284 (Horton) - As Introduced: February 20, 2002
SUBJECT : Department of Alcoholic Beverage Control: revenue
sources: study.
SUMMARY : Requires the Department of Alcoholic Beverage Control
(ABC) to conduct a study to identify potential revenue sources,
as specified, to fund its programs and systems.
EXISTING LAW
1)Requires the Department of Alcoholic Beverage Control to
administer the provisions of the Alcoholic Beverage Control
Act.
2)Requires ABC to conduct a study to assess its existing
automation and information technology systems and identify
necessary improvements and possible enhancements. The results
of this report must be reported back to the Legislature on or
before May 15, 2002.
3)Requires the ABC to study the feasibility of adopting a "fee
for service" policy that would presumably benefit the public
by allowing ABC to charge a fee to applicants and licensees
for services provided by the department. The results of this
report must be reported back to the Legislature on or before
May 15, 2002.
4)Requires the Department, with regard to the automation report,
to identify potential revenue sources that could be used to
fund these improvements and enhancements including, but not
limited to, receiving federal grants, earmarking a portion of
any future CPI adjustments, or utilizing any "fee for service"
revenue as described above.
FISCAL EFFECT : Unknown
COMMENTS : AB 1298 (Wesson & Oropeza, Ch. 488, Statutes of 2001)
was enacted last year to address the structural budget deficit
that had negatively affected the ABC since the mid 1990's. AB
1298 represented a collaborate effort that involved extensive
AB 2284
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negotiations between the ABC and the alcoholic beverage
industry. AB 1298 phases in over a three-year period a $7.5
million license fee increase, and provides that beginning
January 1, 2005, the ABC may annually adjust these fees by the
percentage increase of the CPI. The bill also requires the ABC
to publish the adjusted fee list and transmit the list to the
Legislature for approval as part of ABC's budget submission for
the fiscal year in which the adjusted fees would be implemented.
A second provision of AB 1298 required the ABC to conduct a
study to assess its existing automation and information
technology systems and identify necessary improvements and
possible enhancements. A second report is also required that
would direct ABC to study the feasibility of adopting a "fee
for service" policy that would presumably benefit the state by
allowing ABC to charge a fee to applicants and licensees for
services provided by the department. The results of both of
these reports must be reported back to the Legislature on or
before May 15, 2002. With regard to the automation report, ABC
is required to identify potential revenue sources that could be
used to fund these improvements and enhancements including, but
not limited to, receiving federal grants, earmarking a portion
of any future CPI adjustments authorized by the bill, or
utilizing any "fee for service" revenue as described above.
The purpose of this bill is to potentially accommodate the
findings of the above mentioned reports that are due to the
Legislature by May 15, 2002. This vehicle would be available
should there be a need for any statutory changes to the
Alcoholic Beverage Control Act, and should there be agreement
among the ABC, the alcoholic beverage industry, and the public,
as to acting upon the findings of the report.
REGISTERED SUPPORT / OPPOSITION :
Support
None on file.
Opposition
None on file.
Analysis Prepared by : Eric Johnson / G. O. / (916) 319-2531
AB 2284
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