Economic And Fiscal Impact Statement

Economic Impact

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:

Responsible Beverage Service Training Program

Notice File Number:

Z

Estimated Private Sector Cost Impacts

This regulation:

Impacts business and/or employees
Impacts small businesses
Impacts jobs or occupations
Imposes reporting requirements
Impacts individuals

Estimated Economic Impact (Incl. Fiscal Impact):

Over $50 million[1]

Total number of businesses impacted:

56,173

Types of businesses:

ABC On-Sale Licensees, corporate and nonprofit RBS Training Providers

Percentage of impacted businesses that are small businesses:

33%

Number of business that will be created:

0

Number of business that will be eliminated:

0

Number of jobs created:

2,316

Types of jobs or occupations impacted:

Increased content creation and investment in RBS Training. It is anticipated that $89 per employed Alcohol Server cost will not result in any lost jobs due to this regulation.

This regulation will NOT affect the ability of California businesses to compete with other states by making it more costly to produce goods or services here.

Estimated Costs

Total Costs:

Businesses and individuals statewide may incur $206,800,000 to comply with this regulation over its lifetime.

Initial and Ongoing Costs for Years 2022-2024

Initial costs – small business:

$2,121.40

Annual ongoing costs – small business:

$1,060.70

Initial costs – typical business:

$10,607

Annual ongoing costs – typical business:

$5,303.50

Initial costs – individual:

$0

Annual ongoing costs – individual:

$89

Other economic costs that may occur:

Individual costs are for those being initially hired as Alcohol Servers. Includes opportunity costs of time spent in RBS Course.

Share of total costs for each industry:

The ongoing costs will only be to ABC On-Sale Licensees and individuals who become Alcohol Servers.

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

$200

This regulation will NOT directly impact housing costs.

There are NO comparable Federal regulations.

Given the existence or absence of Federal regulations, the California Legislature determined the need for a mandatory Responsible Beverage Service Training Program to address the costs to the community of overuse of alcohol.

Estimated Benefits

Summary of benefits:

Reduce the overuse of alcohol by minors and intoxicated persons at ABC On-Sale Licensees to reduce the alcohol related harms and costs to California Communities through providing Alcohol Servers with Responsible Beverage Service Training.

Befits are the result of:

Specific statutory requirements – The RBSTPA ensures every Alcohol Server will understand their duty to serve alcohol responsibly.

Total statewide benefits from the regulation over its lifetime:

$3.5 Billion annually

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

The market for Responsible Beverage Service Training will increase by an estimated 1000% leading to more trainers and investment in effective RBS trainings being developed both in-person and online.

Alternatives to the Regulation

Alternatives considered:

Proposed Solution: ABC Administered Online Certification Exam for Alcohol Servers
Alternative 1: Proctored Certification Exams
Alternative 2: RBS Provider Administered Certification Exam

Benefit of Proposed Regulation:

$7,000,000,000

Cost of Proposed Regulation:

$206,800,000

Benefit of Alternative 1:

$7,000,000,000

Cost of Alternative 1:

$425,800,000

Benefit of Alternative 2:

$3,200,000,000

Cost of Alternative 2:

$207,200,000

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

The benefits are an estimated reduction in the economic harms to California due to the overuse of alcohol.

Were performance standards considered to lower compliance costs?

Yes – In the proposed alternative the State is bearing much of the costs of developing and implementing the required technology to provide a full and robust program as prescribed by the legislature with less fiscal impact.

Major Regulations

The regulation subject to OAL review WILL 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:

Estimated 2020-2021 Investment is $100.9 Million

Incentive for innovation in products, materials or processes:

Responsible Beverage Service Training Providers will have a strong incentive to innovate and better their training programs to capture more of the newly created market.

Benefits of the regulations:

Alcohol Servers and ABC On-Sale Licensees will better be aware of their duty in serving alcohol and all Californians will benefit.

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Fiscal Impact

Fiscal Effect on Local Government

No fiscal impact exists. This regulation does not affect any local entity or program. Some local jurisdictions currently have a Mandatory RBS training Requirement, but this program should not affect the bulk of their funding for enforcement of mandatory RBS standards.

Fiscal Effect on State Government

Additional expenditures in the current State Fiscal Year

Approximately $1,829,211

It is anticipated that State agencies will:

Absorb these additional costs within their existing budgets and resources.
Increase the currently authorized budget level for the 2019-2020 Fiscal Year.

Other (please explain):

Please see attached yearly program cost projection from 2019-2020 budget proposal.

Fiscal Effect on Federal Funding of State Programs

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

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Signature

This form was signed by the Fiscal Officer on May 20, 2019 and by the Agency Secretary on May 21, 2019.

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Footnotes

• [1] If the economic impact is over $50 million, agencies are required to submit a Standardized Regulatory Impact Assessment as specified in Government code Section 11346.3(c).