BILL ANALYSIS
Bill No: AB
1060
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Roderick D. Wright, Chair
2009-2010 Regular Session
Staff Analysis
AB 1060 Author: De La Torre
As Introduced: February 27, 2009
Hearing Date: July 8, 2009
Consultant: Art Terzakis
SUBJECT
Alcoholic Beverages: self-service checkouts
DESCRIPTION
AB 1060 prohibits off-sale licensees from selling alcoholic
beverages using a self-service checkout system.
Specifically, this measure:
1. 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.
2. Prohibits off-sale licensees from selling alcoholic
beverages using a point-of-sale system with limited or no
assistance from an employee of the licensee.
3. 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.
EXISTING LAW
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Existing law 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.
Existing law 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.
Existing 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.
Existing law 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 $1000, 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.
Existing law 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.
AB 1060 (De La Torre) continued
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BACKGROUND
Purpose of AB 1060: The author's office points out that as
a society, we must continue to fight back 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, AB 1060 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 of California 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 would not be
difficult and points out that it is currently required for
cigarettes, spray paints, and some over the counter drugs.
Additionally, the author's office references a recent study
on the self-checkout system conducted by law students in
the Community Economic Development Clinic at UCLA as proof
of the problems associated with selling alcohol through a
self-checkout system. The study grew out of the Clinic's
work with the Los Angeles Alliance for a New Economy
(LAANE) which has focused on researching trends in the
grocery industry and their impact on economic development
in low-income communities. This particular study was
conducted over two weeks in April with participants ranging
in age from 21 to 41. Participants visited five different
grocery store chains with self-checkout machines:
Albertsons, Ralph's, Fresh & Easy, Superior, and the Market
by Vons. In total, participants conducted 97 visits to 34
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grocery stores with self-checkout machines in Los Angeles
and Orange counties. The study drew the falling
conclusion: "evidence of inadequate staffing, inconsistent
monitoring, and technological failures documented in the
study suggest that self-checkout machines may increase the
risk of illegal purchases of alcohol, thereby harming
public health."
Arguments in Support: Proponents note 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.
Arguments in Opposition: Opponents disagree with the
findings of the measure and 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 (ID) and finalize
the purchase.
Opponents state 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."
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Opponents note that studies consistently show that most of
the time, minors obtain alcohol from persons of legal age,
not by purchasing or stealing it themselves. Opponents
report that findings of the latest U.S. Substance Abuse &
Mental Health Services Administration (SAMHSA) National
Survey on Drug Use & Health show that:
Among underage drinkers, just 8.2% purchased the
alcohol themselves while nearly 22% gave money to
someone of legal age to purchase it.
Among underage drinkers who did not pay for the
alcohol, the most common source was an unrelated
person aged 21 or older (37.2%). In addition, adult
family members provided it 19.5% of the time.
Staff Comments: When an individual goes through the
self-checkout lane and is purchasing, say, a bottle of wine,
the self-checkout supervisor must approve the sale through
verification of age. You have to do this even if you're 84
years old, because the computer automatically demands ID
since of course it cannot (yet) distinguish between an
inebriated 19-year-old with a case of Pabst Blue Ribbon and
a 58-year-old with a bottle of Pinot Noir.
It should be noted that ABC staff indicates that they have
no evidence of any problems associated with minors
purchasing alcoholic beverages through self-service
checkouts.
PRIOR/RELATED LEGISLATION
AB 523 (De La Torre) 2007-08 Session. Identical to AB 1060
(De La Torre) of 2009. (Failed passage in this committee
on a vote of 5-2)
SUPPORT: As of July 3, 2009:
California Council on Alcohol Policy
Consumer Federation of California
Los Angeles, City of
Marin Institute
Mothers Against Drunk Driving (MADD)
Peace Officers Research Association of California
Pueblo Y Salud, Inc.
Sutter/Yuba Friday Night Live - Youth Development
Organization
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OPPOSE: As of July 3, 2009:
California Grocers Association
California Retailers Association
NCR Corporation
Tech America
FISCAL COMMITTEE: Senate Appropriations Committee
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