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Home My WebLink AboutMINUTES - 07251989 - IO.1 �• ��:----- --:o�, I.O. 1 TO: ' Board of Supervisors FROM: INTERNAL OPERATIONS COMMITTEE DATE: July 17, 1989 osr'4 COUIZ'r'r � SUBJECT: STATUS REPORT ON EFFORTS TO INCREASE THE EXCISE TAX ON ALCOHOLIC BEVERAGES EITHER THROUGH LEGISLATION OR AN INITIATIVE Specific Request(s) or Recommendations(s) & Background & Justification RECOMMENDATIONS: 1.Acknowledge receipt of this report from the Internal Operations Committee on the efforts which are being made to increase the excise tax on alcoholic beverages either through legislation or the initiative process. 2.Request the Health Services Director to make a further report to our Committee once the Legislature has adjourned in September to update us on the status of legislation and on the plans for an initiative to be qualified for the ballot in November, 1990. BACKGROUND: On November 29, 1988 the Board of Supervisors referred to our Committee the issue of plans which were being laid to seek,either through legislation or the initiative process, a substantial increase in the excise tax on alcoholic beverages. Our Committee made a status report to the Board March 7, 1989. On June 27, 1989 the Board of Supervisors referred to our Committee a written report from the County Administrator's Office on the status of seven bills which have been introduced into the Legislature this Session. On July 17,1989 our Committee received the attached update from the County Administrator's Office on these seven pieces of legislation and heard an oral report from the Health Services Director on the status of efforts to qualify an initiative for the ballot in 1990. Continued on attachment; YES Signature: RecomTTP07WERS ounty Administrator Recommendation of Board Committee provOther:Signature(s): SUNNE WRIGHT MC PEAK Action of Board oh: _ July 25, 1989 Approved as Recommended x Other Vote of Supervisors I HEREBY CERTIFY THAT THIS IS A TRUE AND CORRECT COPY OF AN ACTION TAKEN X Unanimous (Absent — ) AND ENTERED ON THE MINUTES OF THE Ayes: Noes: BOARD OF SUPERVISORS ON DATE SHOWN. Absent: Abstain: Attested 9 cc: County Administrator P ' Bat elor, Clerk of the Board Health Services Director of Supervisors and County Administrator Alcohol Program Chief �p CLVM:eh (io-1) By Deputy Clerk The only pieces of legislation which have been moving at all to date are AB 2066 (Killea) which would increase the excise tax on all alcoholic beverages and dedicate one half of the proceeds to law enforcement,trauma care and drug and alcohol abuse prevention, education and treatment. The other half of the revenue would go to the State General Fund. AB 2066 failed passage in the Assembly Ways and Means Committee on June 20, 1989 and is now a two-year bill which may be pursued again in 1990. The other bill, sponsored by the Wine Institute is SB 1597 by Senator Alquist which would increase the tax only on wine from one cent to ten cents with the proceeds going into the S tate General Fund,with no commitment that any of the money would be used for alcohol and drug programs at the local level. The initiative campaign, which is headed by Assemblyman Connelly, is proceeding on schedule. Mr. Finucane reported that at this point the concept which is being drafted into the initiative will have most of the money come directly to counties,providing the local community more discretion in how the money is spent. It was emphasized that all of the staff time being spent on the initiative campaign is being done on the employees' own time and no County time or resources are involved. Our Committee will continue to monitor both the initiative campaign and legislation and will report this matter back to the Board after the Legislature adjourns in September. - 2 - L. t OFFICE OF THE COUNTY ADMINISTRATOR C O N T R A C O S T A C O U- N T Y Administration Building 651 Pine Street, 11th Floor Martinez, California DATE: . July 12, 1989 TO: Supervisor Tom Powers Supervisor Sunne W. McPeak INTERNAL OPERATIONS OMMITTEE FROM: Claude L. Van •Marte isistant County Administrator SUBJECT: LEGISLATION WHICH ADDRESSES ATTEMPTS TO INCREASE THE EXCISE TAX ON ALCOHOLIC BEVERAGES On June 27, 1989 the Board of Supervisors referred to your Committee a summary of legislation which has been introduced in the State Legislature in an effort to increase the excise tax on alcoholic beverages . The following is an updated copy of that summary. Currently the Board ' of Supervisors has not taken a position on any of these pieces of legislation. There are currently seven pieces of legislation which address the issue of an excise tax on alcoholic beverages in one way or another. AB 1712 (Harris) - As amended May 2, 1989. Authorizes counties, upon a 2/3 vote of the board of supervisors, to impose a transaction and use tax on alcoholic beverages not to exceed 3%, to provide funds for essential or customary public services. AB 1712 is currently on referral to the Assembly Revenue & Taxation Committee. It failed passage on June 12, 1989. AB 2051 (Connelly) - As amended June 15, 1989 Imposes an unspecified tax on each alcoholic beverage on a per drink basis (12 ounces of beer, 6 ounces of wine, 1 1/2 ounces of distilled spirits) which apparently is to be collected at the retail level . The tax would be effective January 1, 1990 . AB 2051 is currently on referral to the Assembly Revenue & Taxation Committee. AB 2066 (Kill.ea) - As amended May 24, 1989. Increases the tax on beer from $0 . 04 per gallon to $0 .20 per gallon, effective July 1, 1990 . Increases the tax on wine from $0 . 01 per gallon to $0 . 15 per gallon, effective July 1, 1990 and at higher rates for wines with a higher percentage of alcohol in them as well as for champagne and sparkling wine. Increases the tax on distilled spirits from $2 . 00 per gallon to $3.25 per gallon, effective July 1, 1990 . One-half of the increased tax revenue is allocated to the State General Fund. Of the other one-half, 30% is allocated for drug and alcohol abuse prevention, education, and treatment programs, including activities in the public school. Forty percent of this one-half is allocated to providing trauma care. The remaining 300 of this one-half is allocated for the cost of providing law enforcement . The bill also provides that each year the Board of Supervisors will report to the Legislature regarding the accomplishments of drug and alcohol abuse prevention, education and treatment programs funded by this legislation. The bill also requires that a specific type of evaluation mechanism be designed, including specific numerical objectives which must be met or exceeded if a program is to be judged successful . AB 2066 has passed the Assembly Revenue & Taxation Committee and is currently on referral to the Assembly Ways and Means Committee where it failed passage on June 20 1989. Reconsideration has been granted. AB 2441 (Cortese) - As introduced. This bill would increase the tax only on wine from $0 . 01 per gallon to $0 . 10 per gallon and at higher rates for wine with higher alcohol content. The bill also provides that it would only becomes effective if ACA 41 (Cortese) is approved by the voters . AB 2441 is currently on referral to the Assembly Revenue & Taxation Committee. ACA 41 (Cortese) - As introduced. This proposed amendment to the State Constitution would exempt from state and local agencies ' expenditure (Gann) limits the proceeds of any increase in the excise tax on wine which are levied on or after January 1, 1990 . ACA 41 :is currently on referral to the Assembly Revenue & Taxation Committee. SB 1243 (Garamendi) - As introduced. At this point this is only a spot bill which makes only technical changes to the tax on alcoholic beverages . SB 1243 is currently on referral to the Senate Revenue & Taxation Committee. SB 1597 (Alquist) - As amended May 11, 1989 . SB 1597 is an identical companion bill to AB 2441 which increases the excise tax on wine from $0 . 01 per gallon to $0 . 10 per gallon. SB 1597 passed the Senate June 28 1989 by a vote of _28 :5 and is currently on referral to the Assembly Revenue & Taxation Committee. CLVM:eh alcohol cc: Health Services Director Mental Health Director Alcohol Program Chief