BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1060
                                                                  Page  1

          Date of Hearing:   May 13, 2009

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

              AB 1060 (De La Torre) - As Introduced:  February 27, 2009 

          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 $100,000 per year. 

           COMMENTS  

           1)Rationale  . The author's office points out that as a society,  
            we must continue to fight the ill effects of underage drinking  
            because the lives of far too many young people are negatively  
            impacted by alcohol consumption.  A sizeable number of deaths  
            and injuries are sustained each year due to this practice.   
            Yet, despite the clear consequences and dangers posed by  
            underage drinking, studies show that minors throughout  
            California are being exposed to alcohol at much earlier ages.   
            The author's office cites a 2006 National Survey on Drug Use  
            and Health that found 28% of young people between the ages of  
            12-20 reported drinking alcohol; 19% reported binge drinking. 

            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  








                                                                  AB 1060
                                                                  Page  2

            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.  

           2)Current Law  .  Current law states that every person who sells,  
            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)Opposition  . Opponents argue that self-service checkout  
            stations have a lock-out or "freeze" mechanism to preclude any  
            customer from purchasing alcoholic beverages without clerk  
            intervention to verify age and finalize the purchase.

            The California Grocers' Association states that "assisted  
            checkout stations are overseen by clerks who must abide by  
            California state law governing the sale of alcoholic  
            beverages.  The clerks must either ask for identification from  
            individuals seeking to purchase alcoholic beverages or make a  
            determination that the customer is above the age of 21 and  
            'override' the system by keying in their clerk or other code  
            in order to complete the transaction."

           4)Related Legislation  . 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.


           Analysis Prepared by  :    Julie Salley-Gray / APPR. / (916)  
          319-2081