Economic and Fiscal Impact Statement

Economic Impact Statement

Department Name:

Department of Alcoholic Beverage Control

Contact Person:

Robert de Ruyter

Email Address:

robert.deruyter@abc.ca.gov

Telephone Number:

(916) 419-8958

Descriptive Title From Notice Register or Form 400:

On-Sale Licenses for Boats

Estimated Private Sector Cost Impacts

This regulation:

Impacts business and/or employees
Impacts small businesses

Estimated Economic Impact (Incl. Fiscal Impact):

Below $10 million

Total number of businesses impacted:

108

Types of businesses:

Businesses with on-sale licenses for boats

Percentage of impacted businesses that are small businesses:

43%

Number of business that will be created:

0

Number of business that will be eliminated:

0

Explain:

The proposal won’t create any new businesses, but there could be a small increase in licenses issued.

The geographic extent of impact:

Statewide

Number of jobs created:

0

Number of jobs eliminated:

0

Types of jobs or occupations impacted:

The proposal will not directly create new jobs in the businesses holding on-sale licenses for boats. According to the industry this proposal will save jobs currently in existence.

Estimated Costs

Total Costs:

Businesses and individuals statewide may incur $0 to comply with this regulation over its lifetime.

Initial costs – small business:

$0

Annual ongoing costs – small business:

$0

Initial costs – typical business:

$0

Annual ongoing costs – typical business:

$0

Initial costs – individual:

$0

Annual ongoing costs – individual:

$0

Other economic costs that may occur:

None

Share of total costs for each industry:

None

Annual costs for a typical business to comply with reporting requirements:

$0

This regulation will NOT directly impact housing costs.

There are NO comparable Federal regulations.

Estimated Benefits

Summary of benefits:

The extension of hours of service prior to and after a scheduled trip or voyage will increase the time the effected businesses will be able to sell alcohol to patrons. This should help these businesses to recover from the hardships experienced during the COVID pandemic.

Befits are the result of:

Goals developed by the agency based on broad statutory authority.
The proposal aligns the hours restrictions for these licenses with other statutory standards in place.

Total statewide benefits from the regulation over its lifetime:

Unknown

How would current businesses expand as a result of this regulation:

This may lead to more issued on-sale licenses for boats, but these are a limited licenses with specific limitations. The industry request stated that without the proposal jobs and businesses would be lost due to the impacts of the pandemic.

Alternatives to the Regulation

Alternatives considered:

Alternative 1: No extension.
Alternative 2: An extension of time to sell alcohol to two hours before and two hours after a scheduled trip or voyage.
Regulation: Align the hours for the sales to other statutory schemes, two hours prior and one hour after a trip.

Benefit of Proposed Regulation:

$0

Cost of Proposed Regulation:

$0

Benefit of Alternative 1:

$0

Cost of Alternative 1:

$0

Benefit of Alternative 2:

$0

Cost of Alternative 2:

$0

Quantification issues relevant to a comparison of estimated costs
and benefits for this regulation or alternatives:

The industry claims this change will allow them to continue after suffering the economic hardship of the COVID pandemic. The benefit expected is the industry will not lose jobs.

Were performance standards considered to lower compliance costs?

No – performance standards are changed by this proposal.

Major Regulations

The regulation subject to OAL review WILL NOT have an estimated economic impact to business enterprises and individuals located in or doing business in California exceeding $50 million in a 12-month period between the date the major regulation is estimated to be filed with the Secretary of State through 12 months after the major regulation is estimated to be fully implemented.

Increase or decrease of investment in the State:

None expected, a small increase may occur due to more licenses being issued.

Incentive for innovation in products, materials or processes:

None expected.

Benefits of the regulations:

On-sale licenses for boats will experience minor increased profits, but this change will save struggling businesses, not add them. No other benefits.

Fiscal Impact Statement

A. Fiscal Effect on Local Government

Nothing is entered in this section of the form.

B. Fiscal Effect on State Government

No fiscal impact exists. This regulation does not affect any State agency or program.

C. Fiscal Effect on Federal Funding of State Programs

No fiscal impact exists. This regulation does not affect any Federally funded State agency or program.

Fiscal Effect on Federal Funding of State Programs

No fiscal impact exits. This regulation does not affect any federally funded State agency or program.

Signature

This form was signed by the Fiscal Officer on February 27, 2023 and by the Agency Secretary on May 16, 2023.