Governor Schwarzenegger Vetoes AB 417!
On Friday, October 7 Governor Schwarzenegger
vetoed AB 417. Good job to everyone involved!
The Governor's Note: To the Members of the California State Assembly: I am returning Assembly Bill 417 without my signature. This bill would codify current law and practice to treat flavored malt beverages as a malt beverage product consistent with federal standards of identity, which 49 of the 50 states follow. I am taking this action to allow a full discussion of the issues surrounding flavored malt beverages, not to suggest that the State's regulatory administration of flavored malt beverages is flawed. It was amended late in the session and only had one full hearing with short notice. I encourage all interested parties, particularly health professionals, law enforcement and the producers of flavored malt beverages, to use this opportunity for public debate and serious consideration of the policy issues surrounding this beverage.
Sincerely,
Arnold Schwarzenegger
Background: Anheuser-Busch's back-room tactics rushed AB 417 through the California legislature to protect its profits on kid-friendly alcopops. Governor Schwarzenegger promised not to veto bills passed "in the middle of the night." Ask him to veto AB 417 to protect kids, raise as much as $40.5 million in state revenue and keep his commitment to "clean up Sacramento."
Anheuser-Busch, the original source of AB 417, gave $2.7 million to influence public policy in California from 2000-2005. Using this influence, beer makers have rushed a bill through the State Legislature that would change the state's definition of beer and help guarantee that "alcopops" remain the beverage of choice among teen girls.
If this measure is signed into law, these sweet, bubbly drinks, also known as flavored malt beverages (including Smirnoff Ice, Mike's Hard Lemonade, and Skyy Blue), will continue to be taxed at the low rate used for beer even though they contain alcohol from distilled spirits. The change would also mean that these "girlie beers" or "cheerleader drinks" would continue to be sold in convenience stores and delis - greatly increasing their availability to young people.
In order to avoid public scrutiny of this major policy change, the bill's sponsors abruptly altered an unrelated bill that had cleared several legislative hurdles--a tactic known as "gut and amend". Greg Aghazarian, the leading recipient of alcohol industry donations in the Assembly, along with other politicians who receive contributions1 from Big Alcohol, then rushed the bill through the Assembly and Senate. Now it has landed on the Governor's desk with no public inquiry or debate.
What would a fair and democratic hearing of this issue have revealed? The alcohol industry has been illegally selling alcopops as beer, even though they are distilled spirits under current law. According to an
American Medical Association study (pdf), alcopops are popular among underage youth, particularly teenage girls. Taxing alcopops as distilled spirits rather than beer would generate up to $40.5 million a year in tax revenue and help reduce underage drinking. More details are available in a briefing paper(pdf)2 by Jim Mosher and from the AMA3.
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