BILL ANALYSIS Ó AB 183 Page 1 Date of Hearing: May 4, 2011 ASSEMBLY COMMITTEE ON APPROPRIATIONS Felipe Fuentes, Chair AB 183 (Ma) - As Introduced: January 25, 2011 Policy Committee: Governmental Organization Vote: 11 - 3 Urgency: No State Mandated Local Program: Yes Reimbursable: No SUMMARY This bill prohibits off-sale licensees from allowing individuals to use self-check out machines to purchase alcoholic beverages. FISCAL EFFECT Every 50 complaints received by the Department of Alcoholic Beverage Control (ABC) for stores selling alcohol through self-service check-outs would likely result in 10 to 15 actual violations. Alcohol Beverages Control Fund costs associated with those investigations could range up to $30,000 per year. COMMENTS 1)Rationale . According to the author's office, this bill takes a precautionary step and precludes the possibility of underage drinking abuses occurring due to the usage of a self-service checkout kiosk - the passive supervision associated with these stations makes them vulnerable to manipulation. By forcing alcohol purchases to be made through a face-to-face transaction from beginning to end, the state can ensure that the necessary age verification steps are being taken to keep alcohol out of the hands of minors. The author's office emphasizes that requiring retailers to conduct all of their alcohol sales in a face-to-face transaction with a cashier is not difficult and points out that it is currently required for cigarettes, spray paints, and some over the counter drugs. 2)Current Law . Current law states that every person who sells, AB 183 Page 2 furnishes, gives, or causes to be sold, furnished, or given away, any alcoholic beverage to any person under the age of 21 years is guilty of a misdemeanor. In addition, the law states that except as provided by law, any person who violates existing law by furnishing an alcoholic beverage, or causing an alcoholic beverage to be furnished, to a minor shall be punished by a fine of $1,000, no part of which shall be suspended, and the person shall be required to perform not less than 24 hours of community service during hours when the person is not employed and is not attending school. 3)ABC Staffing . There are approximately 82,000 permanently licensed establishments in California, with an average of 12,000 applications for license transfers and new businesses made each year. On average, an additional 33,000 temporary "special event" licenses are issued to non-profit and charitable organizations for their events annually. Although the majority of these businesses/venues are run in an orderly fashion, some present significant public safety problems. As of March 2011, ABC is authorized 142 sworn investigators to conduct its enforcement operations to police the activities at these 115,000 licensed venues. Currently, there are 45 vacant investigator positions which have not been filled due to several factors, including hiring freeze restrictions in place since July 2010. If ABC were able to maintain a zero percent vacancy rate, each investigator would be responsible for approximately 810 licensed venues. 4)Related Legislation . In 2010, AB 1060 (De La Torre) would have prohibited off-sale licensees from selling alcoholic beverages using a self-service checkout system. That bill was vetoed by the governor. In his veto message, the governor asserted that there is no legitimate evidence to suggest that self-service grocery checkout stands are contributing to the theft of alcoholic beverages and sale to minors or intoxicated persons. AB 523 (De La Torre) of 2007-08, an urgency measure, would have prohibited off-sale general licensees from selling alcoholic beverages using a self-service checkout system. The bill failed passage in Senate Committee on Governmental Organization. AB 183 Page 3 Analysis Prepared by : Julie Salley-Gray / APPR. / (916) 319-2081