Contacts: Jessica Wolin, Marin Institute, 415-456-5692
Judy Walsh-Jackson, San Diego County Policy
Panel on Youth Access to Alcohol 619-757-6036

GOVERNOR SAYS “NO” TO GIRLIE DRINKS
Vetoes AB 417 “Kiddie Booze” Bill

SACRAMENTO, CA October 11, 2005---Teenagers, parents, community-based local coalitions, and public health and safety organizations such as the California Council on Alcohol Policy, California Conference on Alcohol Problems, County Alcohol and Drug Program Administrators of California, California Medical Association, Consumers for Auto Reliability and Safety, Drug Policy Alliance, Marin Institute, Mothers Against Drunk Driving (MADD), PTA, San Diego County Policy Panel on Youth Access to Alcohol, and Youth Leadership Institute urged Governor Schwarzenegger to veto “stealth” legislation that would have enhanced the liquor industry’s ability to market “alcopops” (sweet drinks spiked with hard alcohol), a product that appeals to 14-18 year old girls, in particular.

“We thank Governor Schwarzenegger for his veto of this gift to the liquor industry, which would have contributed to underage drinking, a public health crisis that endangers the health and lives of California’s young people,” said Beth Sise, JD, RN, MSN, CPNP, Chair of the San Diego County Policy Panel on Youth Access to Alcohol.

The controversial measure, AB 417, would have reclassified these sweetened, soda-pop style drinks such as Smirnoff Ice, Mike’s Hard Lemonade, and Skyy Blue, as “beer,” even though they contain distilled alcohol. Under current California law, these beverages are classified as distilled spirits, which should mean higher taxes and fewer retail outlets.

AB 417 became a liquor industry priority earlier this summer when Attorney General Lockyer wrote the state Board of Equalization and the Department of Alcoholic Beverage Control saying that the industry was deceptively classifying these drinks as beer rather than spirits and he called on the Board and the Department to enforce state law regarding these cocktails. Attorney General Lockyer vigorously opposes AB 417.

“Kids all over the state and the nation call these products ‘cheerleader beer’ and ‘girlie beer’ because they are so popular with underage girls—their sweet taste is designed to appeal to young drinkers,” said Cinthya Luis, a high school senior and member of the San Diego County Youth Council.

“Alcopops should be made harder for underage drinkers to buy—not easier,” said James Mosher, Director, Director, Center for the Study of Law and Enforcement Policy, Pacific Institute for Research and Evaluation.

AB 417 would have codified the Business and Professions code to increase the availability of these drinks by allowing product sales in approximately 35,000 additional retail outlets statewide. Their appeal to young people makes enforcement of laws against underage drinking far more problematic and costly. The reclassification would also have allowed distillers to escape network television’s ban on distilled spirits advertising. Research shows that underage youth are more likely to be familiar with this advertising than adults. Distillers use alcopops as a way to get their brand names on television shows that appeal to a youthful audience. As a result, distilled spirits are becoming increasingly popular with young people.

Legislators sent AB 417 to the Governor via a controversial process known as “gut and amend.” More than six months after the deadline for introducing new legislation had passed, in the waning days of the legislative session, the liquor industry persuaded Assemblymember Greg Aghazarain (R-Stockton) to remove the contents of a stalled bill, and substitute the provisions to promote distribution of the alcopops. No fiscal committee held a public hearing on the new bill, even though the Board of Equalization estimated that the bill would have resulted in the state losing $40.5 million per year in tax revenue. The only hearing that occurred in the Assembly took place late on the last night of the legislative session, and was announced only minutes before it began, stifling public input.

The groups thank the Governor for keeping his promise to not only protect young people but also for keeping his commitment to veto “gut and amend” legislation because of the lack of public scrutiny.

The alcohol industry was seeking this legislative gift in response to an investigation into the marketing of alcopops by Attorney General Bill Lockyer. Currently, California law requires such beverages to be marketed and taxed as distilled spirits. While beer is taxed at the rate of 20 cents per gallon, distilled spirits are taxed at a much higher rate ---$3.30 per gallon. Eager to evade prosecution for years of deceptively marketing millions of gallons of the drinks under false pretenses, and evading taxes, the liquor industry turned to the legislature for a special favor.

“This bill could have been vetoed on good government grounds alone,” said Glenn Backes of Drug Policy Alliance, “Any similar legislation introduced next year should be carefully analyzed by public safety and health committees—not rushed to the Governor in the dead of night.”

Anheuser-Busch, the original sponsor of AB 417, gave $2.7 million to influence public policy in California from 2000-2005. Assemblymember Aghazarian (R-Stockton), the author of AB 417, was the top recipient of alcohol PAC money in the Assembly over the past 12 months, and his wife sells grapes to the wine industry. More information about alcopops and AB 417, including the American Medical Association survey of teenagers, is posted on the Web at: www.MarinInstitute.org.

Other Contacts:
Joan Kiley, Alcohol Policy Network, 510-548-9822, Berkeley
Roxanne Woods, RN, UC Davis, Sacramento, 916-734-9798
Zelenne L. Cárdenas, Social Model Recovery Systems, Inc., Los Angeles, 310-245-7643
Jill Galante, San Diego County Youth Council, San Diego, 619-225-0831

The Marin Institute is an alcohol industry watchdog and a resource for solutions to community alcohol problems.

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