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AB-2738 Powdered alcohol.(2017-2018)

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Date Published: 02/16/2018 04:00 AM
AB2738:v99#DOCUMENT


CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 2738


Introduced by Assembly Member Brough

February 15, 2018


An act to amend Sections 24200.7, 25623, and 25623.5 of the Business and Professions Code, relating to beverages.


LEGISLATIVE COUNSEL'S DIGEST


AB 2738, as introduced, Brough. Powdered alcohol.
The Alcoholic Beverage Control Act regulates the application for, the issuance of, the suspension of, and the conditions imposed upon, alcoholic beverage licenses, and is administered by the Department of Alcoholic Beverage Control. That act requires the department to revoke the license of any licensee who manufactures, distributes, or sells powdered alcohol, as provided, and prohibits the possession, purchase, sale, offer for sale, distribution, manufacture, or use of powdered alcohol, the violation of which is punishable as an infraction.
This bill would provide exceptions to the prohibitions on the manufacture, distribution, and sale of powdered alcohol to apply to bona fide manufacturers or public or private research institutions, if the powdered alcohol is possessed exclusively for manufacturing, research, or development purposes and not for retail sale. The bill would provide that the retail sale of products that contain powdered alcohol as an ingredient in a mixture printed on a substrate, if the mixture cannot be reasonably converted to a loose, powdered form, is not prohibited. The bill would provide that a product containing powdered alcohol as an ingredient in a mixture printed on a surface of a substrate is an alcoholic beverage, as specified.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 24200.7 of the Business and Professions Code is amended to read:

24200.7.
 The (a) Except in the limited instances described in subdivision (b), the department shall revoke or suspend any license if the licensee or the agent or employee of the licensee manufactures, distributes, or offers for retail sale powdered alcohol.
(b) (1) The sale to, offer for sale to, manufacture by, or delivery of powdered alcohol to a bona fide manufacturer or public or private research institution or the possession of powdered alcohol by a bona fide manufacturer or public or private research institution, or by its agents or employees, if the powdered alcohol is possessed exclusively for manufacturing, research, or development purposes and not for retail sale, is not cause for the suspension or revocation of a license.
(2) The retail sale of products that contain powdered alcohol as an ingredient in a mixture printed on the surface of a substrate, provided that the mixture cannot be reasonably converted to a loose, powdered form is not cause for the suspension or revocation of a license. Any product that contains powdered alcohol as an ingredient in a mixture printed on a surface of a substrate is an alcoholic beverage as defined by Section 23004, either alone or when combined or mixed with water or any other liquid.

SEC. 2.

 Section 25623 of the Business and Professions Code is amended to read:

25623.
 (a) A Except in the limited instances described in subdivision (b), a person shall not possess, purchase, sell, offer for sale, manufacture, distribute, or use powdered alcohol.
(b) (1) This section does not prohibit the sale to, offer for sale to, manufacture by, or delivery of powdered alcohol to a bona fide manufacturer or public or private research institution or the possession of powdered alcohol by a bona fide manufacturer or public or private research institution, or by its agents or employees, if the powdered alcohol is possessed exclusively for manufacturing, research, or development purposes and not for retail sale.
(2) This section does not prohibit the retail sale of products that contain powdered alcohol as an ingredient in a mixture printed on the surface of a substrate, provided that the mixture cannot be reasonably converted to a loose, powdered form. Any product that contains powdered alcohol as an ingredient in a mixture printed on a surface of a substrate is an alcoholic beverage as defined by Section 23004, either alone or when combined or mixed with water or any other liquid.

(b)

(c) Any person who sells, offers for sale, manufactures, or distributes powdered alcohol is guilty of an infraction that shall be punishable by a fine of not more than five hundred dollars ($500).

SEC. 3.

 Section 25623.5 of the Business and Professions Code is amended to read:

25623.5.
 (a) A Except in the limited instances described in subdivision (b), a person shall not possess, purchase, sell, offer for sale, manufacture, distribute, or use powdered alcohol.
(b) (1) This section does not prohibit the sale to, offer for sale to, manufacture by, or delivery of powdered alcohol to a bona fide manufacturer or public or private research institution or the possession of powdered alcohol by a bona fide manufacturer or public or private research institution, or by its agents or employees, if the powdered alcohol is possessed exclusively for manufacturing, research, or development purposes and not for retail sale.
(2) This section does not prohibit the retail sale of products that contain powdered alcohol as an ingredient in a mixture printed on the surface of a substrate, provided that the mixture cannot be reasonably converted to a loose, powdered form. Any product that contains powdered alcohol as an ingredient in a mixture printed on a surface of a substrate is an alcoholic beverage as defined by Section 23004, either alone or when combined or mixed with water or any other liquid.

(b)

(c) Any person who purchases, possesses, or uses powdered alcohol is guilty of an infraction and subject to a fine of one hundred twenty-five dollars ($125).