BILL ANALYSIS
AB 2284
Page 1
ASSEMBLY THIRD READING
AB 2284 (Horton)
As Introduced February 20, 2002
Majority vote
GOVERNMENTAL ORGANIZATION 22-0APPROPRIATIONS 17-3
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|Ayes:|Horton, Strickland, |Ayes:|Steinberg, Alquist, |
| |Briggs, Canciamilla, | |Aroner, Cohn, Corbett, |
| |Cardenas, Chan, Chavez, | |Diaz, Firebaugh, |
| |Cohn, Corbett, Dickerson, | |Goldberg, Maldonado, |
| |Firebaugh, Harman, La | |Negrete McLeod, Papan, |
| |Suer, Liu, Longville, | |Chu, Simitian, |
| |Maddox, Nation, Oropeza, | |Washington, Wiggins, |
| |Reyes, Wiggins, Wright, | |Wright, Zettel |
| |Wyland | | |
| | | | |
|-----+--------------------------+-----+--------------------------|
| | |Nays:|Ashburn, Robert Pacheco, |
| | | |Runner |
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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 requires ABC:
1)To administer the provisions of the Alcoholic Beverage Control
Act (ABC Act).
2)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)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)With regard to the automation report, to identify potential
revenue sources that could be used to fund these improvements
AB 2284
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and enhancements including, but not limited to, receiving
federal grants, earmarking a portion of any future Consumer
Price Index (CPI) adjustments, or utilizing any "fee for
service" revenue as described above.
FISCAL EFFECT : No fiscal impact because ABC is currently
completing a study encompassing the subject matter of this bill.
COMMENTS : AB 1298 (Wesson) Chapter 488, Statutes of 2001,
addressed the structural budget deficit that had negatively
affected ABC since the mid 1990's. AB 1298 represented a
collaborate effort that involved extensive negotiations between
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, ABC may annually adjust
these fees by the percentage increase of CPI. This bill also
requires 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 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.
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 ABC Act, and should there be agreement
among ABC, the alcoholic beverage industry, and the public, as
to acting upon the findings of the report.
AB 2284
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Analysis Prepared by : Eric Johnson / G. O. / (916) 319-2531
FN: 0004492