BILL ANALYSIS
AB 2284
Page 1
Date of Hearing: May 1, 2002
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Darrell Steinberg, Chair
AB 2284 (Horton) - As Introduced: February 20, 2002
Policy Committee: Governmental
Organization Vote: 22-0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill requires the Department of Alcoholic Beverage Control
(ABC) to conduct a study to identify potential revenue sources
to fund its programs and systems.
FISCAL EFFECT
No fiscal impact because the ABC is currently completing a study
encompassing the subject matter of this bill.
COMMENTS
Background and Purpose . Chapter 488, Statutes of 2001 (AB 1298,
Wesson) was enacted last year to address the structural budget
deficit that had negatively affected the ABC since the mid
1990's. 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 Consumer Price Index (CPI). ABC will
be required to publish the adjusted fee list and transmit the
list to the Legislature for approval as part of the ABC's annual
budget submission.
AB 1298 also 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 requires the ABC to study the feasibility of
adopting a "fee for service" policy, thus allowing the ABC to
charge a fee to applicants and licensees for services provided
by the department. The two reports are to be submitted to the
Legislature by May 15, 2002.
AB 2284
Page 2
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 AB 1298
is to potentially accommodate any statutory changes based on the
findings of the above mentioned reports.
Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081