BILL NUMBER: AB 2285 CHAPTERED 09/28/06 CHAPTER 566 FILED WITH SECRETARY OF STATE SEPTEMBER 28, 2006 APPROVED BY GOVERNOR SEPTEMBER 28, 2006 PASSED THE ASSEMBLY AUGUST 21, 2006 PASSED THE SENATE AUGUST 16, 2006 AMENDED IN SENATE JUNE 19, 2006 AMENDED IN ASSEMBLY APRIL 26, 2006 INTRODUCED BY Committee on Business and Professions (Negrete McLeod (Chair), Shirley Horton (Vice Chair), Maze, Nation, Vargas, and Yee) FEBRUARY 22, 2006 An act to amend Sections 13300 and 13352 of, to add the heading of Article 1 (commencing with Section 13300) to Chapter 13 of Division 5 of, to add the heading of Article 2 (commencing with Section 13350) to Chapter 13 of Division 5 of, and to repeal the heading of Chapter 13.5 of Division 5 of, the Business and Professions Code, and to amend Section 7100 of the Civil Code, relating to point-of-sale systems. LEGISLATIVE COUNSEL'S DIGEST AB 2285, Committee on Business and Professions Point-of-sale systems. Existing law requires for automated checkout systems that all price reductions, surcharges, and taxes be displayed for the consumer at least once before the consumer is required to pay for the goods or services. Other provisions of existing law make any violation of these requirements a misdemeanor. This bill would delete that display requirement, but would require the price, and in the instance of an advertised price reduction or discount, the discounted price or regular price and credit or reduction of advertised savings, to be displayed. The bill would recharacterize these provisions to apply to point-of sale-systems. This bill would make other conforming changes. By expanding the scope of an existing crime, this bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. The heading of Article 1 (commencing with Section 13300) is added to Chapter 13 of Division 5 of the Business and Professions Code, to read: Article 1. Point-Of-Sale Displays SEC. 2. Section 13300 of the Business and Professions Code is amended to read: 13300. (a) The operator of a business establishment that uses a point-of-sale system to sell goods or services to consumers shall ensure that the price of each good or service to be paid by the consumer is conspicuously displayed to the consumer at the time that the price is interpreted by the system. In any instance in which the business advertises a price reduction or discount regarding an item offered for sale, the checkout system customer indicator shall display either the discounted price for that item, or alternatively, the regular price and a credit or reduction of the advertised savings. Any surcharges and the total value to be charged for the overall transaction also shall be displayed for the consumer at least once before the consumer is required to pay for the goods or services. The checkout system customer indicator shall be so positioned, and the prices and amounts displayed shall be of a size and form, as to be easily viewable from a typical and reasonable customer position at each checkout location. (b) For the purposes of this section, "point-of-sale system" means any computer or electronic system used by a retail establishment such as, but not limited to, Universal Product Code scanners, price lookup codes, or an electronic price lookup system as a means for determining the price of the item being purchased by a consumer. (c) All point-of-sale systems used by a business establishment on and after January 1, 2007, shall comply with the requirement of subdivision (a). SEC. 3. The heading of Chapter 13.5 (commencing with Section 13350) of Division 5 of the Business and Professions Code is repealed. SEC. 4. The heading of Article 2 (commencing with Section 13350) is added to Chapter 13 of Division 5 of the Business and Professions Code, to read: Article 2. Point-Of-Sale System Accuracy Verification SEC. 5. Section 13352 of the Business and Professions Code is amended to read: 13352. For purposes of this chapter, "point-of-sale" system means any computer or electronic system used by a retail establishment such as, but not limited to, Universal Product Code scanners, price lookup codes, or an electronic price lookup system as a means for determining the price of the item being purchased by a consumer. SEC. 6. Section 7100 of the Civil Code is amended to read: 7100. (a) Every retail grocery store or grocery department within a general retail merchandise store which uses a point-of-sale system shall cause to have a clearly readable price indicated on 85 percent of the total number of packaged consumer commodities offered for sale which are not exempt pursuant to subdivision (b). The management of any such retail grocery store or grocery department shall determine the number of consumer commodities normally offered for sale on a daily basis, shall determine the consumer commodities to be exempted pursuant to this subdivision, and shall maintain a list of those consumer commodities exempt pursuant to this subdivision. The list shall be made available to a designated representative of the appropriate local union, the members of which are responsible for item pricing, in those stores or departments that have collective bargaining agreements, seven days prior to an item or items being exempted pursuant to this subdivision. In addition, the list shall be available and posted in a prominent place in the store seven days prior to an item or items being exempted pursuant to this subdivision. (b) The provisions of this section shall not apply to any of the following: (1) Any consumer commodity which was not generally item-priced on January 1, 1977, as determined by the Department of Food and Agriculture pursuant to subdivision (c) of Section 12604.5 of the Business and Professions Code, as in effect July 8, 1977. (2) Any unpackaged fresh food produce, or to consumer commodities which are under three cubic inches in size, weigh less than three ounces, and are priced under forty cents ($0.40). (3) Any consumer commodity offered as a sale item or as a special. (4) Any business which has as its only regular employees the owner thereof, or the parent, spouse, or child of such owner, or, in addition thereto, not more than two other regular employees. (5) Identical items within a multi-item package. (6) Items sold through a vending machine. (c) For the purposes of this section: (1) "Point-of-sale system" means any computer or electronic system used by a retail establishment such as, but not limited to, Universal Product Code scanners, price lookup codes, or an electronic price lookup system as a means for determining the price of the item being purchased by a consumer. (2) "Consumer commodity" includes: (A) Food, including all material whether solid, liquid, or mixed, and whether simple or compound, which is used or intended for consumption by human beings or domestic animals normally kept as household pets, and all substances or ingredients added to any such material for any purpose. This definition shall not apply to individual packages of cigarettes or individual cigars. (B) Napkins, facial tissues, toilet tissues, foil wrapping, plastic wrapping, paper toweling, and disposable plates and cups. (C) Detergents, soaps, and other cleaning agents. (D) Pharmaceuticals, including nonprescription drugs, bandages, female hygiene products, and toiletries. (3) "Grocery department" means an area within a general retail merchandise store which is engaged primarily in the retail sale of packaged food, rather than food prepared for immediate consumption on or off the premises. (4) "Grocery store" means a store engaged primarily in the retail sale of packaged food, rather than food prepared for consumption on the premises. (5) "Sale item or special" means any consumer commodity offered in good faith for a period of 14 days or less, on sale at a price below the normal price that item is usually sold for in that store. The Department of Food and Agriculture shall determine the normal length of a sale held for consumer commodities generally item priced on January 1, 1977, in stores regulated pursuant to this chapter, and that period shall be used for the purposes of this subdivision. The department's determination as to the normal length of a sale shall be binding for the purposes of this section, but each such determination shall not exceed seven days. SEC. 7. No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.