Contact: Michael Scippa, 415-548-0492; Pete Ratajczak, 415-257-2488; Gilberto Leon, 415-257-2491

SAN RAFAEL, Calif., Aug. 15 /Standard Newswire/ -- The California State Board of Equalization (BOE), under the strong leadership of State Controller John Chiang, made history today when they set in motion a rulemaking procedure to tax alcopops as distilled spirits, instead of the current "beer" classification. The decision was immediately applauded by alcohol activists and youth from the California Youth and Alcopops Coalition, the group that initiated the drive with a petition to the BOE last fall.

"Flavored Malt beverages should be taxes as distilled spirits because they fall under the category of distilled spirits, as written in California law," stated Chiang. "While today's vote is about fair taxation," he added, "taxing flavored malt beverages as liquor will also help reduce their popularity with young people by simply pricing the product out of their reach."

"This is an enlightened step forward in controlling underage consumption of alcohol," said Bruce Lee Livingston, MPP, Executive Director of Marin Institute. "For generations, Big Alcohol has evaded proper taxation on these products. Now, the state will benefit and the health and well-being of our youth will be improved."

A recent Marin Institute report detailed the true costs of the consumption of alcopops by underage youth in California. The report concluded that alcopops cost California $1.25 billion, 60 lives, and 50,000 incidents of harm. With the new tax in place, the lives of 21 youth will be saved, as well as $437 million in societal costs. The tax is also expected to reduce underage alcopop consumption in the state by 35 percent.

"Public policy trumped corporate-influenced politics today," said Michele Simon, Director of Research and Policy at Marin Institute. "It's a great victory not just for the people and state of California but for other states that are taking a keen interest in our process because they desire similar outcomes. If we can do it, so can they," she added.

In addition to Controller Chiang's "yes" vote, board members Judy Chu and Betty Yee also voted for the change. Members Bill Leonard and Michele Steele voted no. The proposed tax could increase the average price of alcopops by an estimated 25 percent and generate over $40 million for the state treasury. In addition, the funds could be used for alcohol prevention programs and emergency medical center expenses.

Marin Institute is an alcohol industry watchdog based in San Rafael, Calif.: www.marininstitute.org, 415 456-5692.