BILL ANALYSIS
AB 1060
Page 1
ASSEMBLY THIRD READING
AB 1060 (De La Torre)
As Introduced February 27, 2009
Majority vote
GOVERNMENTAL ORGANIZATION 11-3APPROPRIATIONS 12-4
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|Ayes:|Price, Chesbro, De Leon, |Ayes:|De Leon, Ammiano, Charles |
| |Evans, Hall, Hill, Lieu, | |Calderon, Davis, |
| |Mendoza, Portantino, | |Krekorian, Hall, John A. |
| |Torres, Torrico | |Perez, Price, Skinner, |
| | | |Solorio, |
| | | |Audra Strickland, |
| | | |Torlakson |
| | | | |
|-----+--------------------------+-----+---------------------------|
|Nays:|Anderson, Jeffries, Tran |Nays:|Nielsen, Duvall, Harkey, |
| | | |Miller |
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SUMMARY : Prohibits off-sale licensees from selling alcoholic
beverages using a self-service checkout system. Specifically,
this bill :
1)Prohibits off-sale general licensees from selling alcoholic
beverages using a point-of-sale system with limited or no
assistance from an employee of the licensee.
2)Defines "point-of-sale" system to mean 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.
3)Finds and declares that allowing customers to purchase
alcoholic beverages through self-service checkouts facilitates
the purchase of alcoholic beverages by minors; permits
intoxicated customers to purchase additional alcoholic
beverages; and, allows for greater theft of alcoholic
beverages, thereby depriving the state of tax revenues.
EXISTING LAW:
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1)Establishes the Department of Alcoholic Beverage Control (ABC)
and grants it exclusive authority to administer the provisions
of the ABC Act in accordance with laws enacted by the
Legislature. This involves licensing individuals and
businesses associated with the manufacture, importation and
sale of alcoholic beverages in this state and the collection
of license fees or occupation taxes for this purpose.
2)Provides that the ABC may place reasonable conditions upon any
licensee in certain situations, including, but not limited to,
the following: where grounds exist for the denial of an
application for a license or where a protest against the
issuance of a license has been filed; where findings are made
by the ABC which would justify suspension or revocation of the
license, and imposition of the conditions is reasonably
related to those findings; where findings are made by the ABC
that the licensee has failed to correct objectionable
conditions within a reasonable period of time. Furthermore,
existing law provides that the ABC may suspend or revoke a
license for failure to take reasonable steps to correct
objectionable conditions, as described.
3)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.
4)Provides 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.
5)Defines an "on-sale" license as authorizing the sale of all
types of alcoholic beverages: namely, beer, wine and distilled
spirits, for consumption on the premises (such as at a
restaurant or bar). An "off-sale" license authorizes the sale
of all types of alcoholic beverages for consumption off the
premises in original, sealed containers.
6)Provides for various license types issued by the ABC
including:
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a) Type 20 Off-Sale Beer and Wine - Authorizes the sale of
beer and wine for consumption off the premises where sold.
Minors are allowed on the premises; and,
b) Type 21 Off-Sale General - Authorizes the sale of beer,
wine and distilled spirits for consumption off the premises
where sold. Minors are allowed on the premises.
FISCAL EFFECT : Every 50 complaints received by ABC for stores
selling alcohol through self-service check-outs would
likely result in 10 to 15 actual violations. ABC states costs
associated with those investigations could range up to $100,000
per year.
COMMENTS : According to the author, this bill will help to
reduce sales of alcoholic beverage to underage or intoxicated
persons by requiring a cashier for an alcohol sales transaction
in a retail store. Self-service checkout stands are becoming
more and more prevalent at convenience stores throughout
California. In fact, some companies rely exclusively on a
self-service check out system. Problems associated with these
self-service checkout stands include concerns that these
self-service checkout stands facilitate the purchase of alcohol
by minors, permit intoxicated customers to purchase alcohol
beverages, and allow for greater theft of alcoholic beverages
since there is often inadequate supervision.
The author states that the State of California has taken a
leadership role in preventing our youth from accessing tobacco,
yet in many retail stores minors have easy access to alcoholic
beverages. The author states that we depend on our store clerks
to prevent underage drinking by being trained to check ID and
assess a situation where the purchaser may be intoxicated. With
a self-service checkout system, there is often only one member
of staff assigned to supervise nine checkout stands. This
system invites abuse.
The author maintains that it is time that the California
Legislature takes action and regulates the sale of alcohol
through self-service checkouts so we can prevent underage
drinking and protect our communities.
ABC staff notes that they have no evidence of any problems
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associated with minors purchasing alcoholic beverages through
self-service checkouts in California.
In Support : Supporters of this bill assert that the
predominant problem among youth is alcohol consumption and that
sound alcohol policies such as AB 1060 can prevent and reduce
alcohol-related problems.
Proponents reference the California State Attorney General's
"California Student Survey" which found that 36% of 9th grade
and nearly half (48%) of 11th grade students report that alcohol
is very easy to obtain. The survey also discovered that teens
who binge drink (consume 5 or more drinks in a row within the
past 30 days) constitute almost half of 9th graders who report
any drinking. Additionally, the survey found that by 11th grade
nearly two-thirds of the teens who drink report binge drinking.
Proponents emphasize that the state has a responsibility to
regulate the retail sale of alcohol and as a society we must do
everything we can to prevent youth access to alcohol.
Proponents believe that preventing youth access by restricting
alcohol sales through unsupervised self-service retail sales is
good public policy.
In Opposition : Opponents disagree with the findings of the
measure and argue that self-service checkout stations have
a lockout or "freeze" mechanism to preclude any customer from
purchasing alcoholic beverages without clerk intervention to
verify age (ID) and finalize the purchase.
Opponents assert, "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."
Prior legislation : AB 523 of 2008, 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.
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Analysis Prepared by : Eric Johnson / G. O. / (916) 319-2531
FN: 0000728