BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           1060 (De La Torre)
          
          Hearing Date:  8/17/2009        Amended: As Introduced
          Consultant:  Maureen Ortiz      Policy Vote: G.O. 8-0
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          ____
          BILL SUMMARY:   AB 1060 prohibits the selling of alcoholic  
          beverages using a self-service checkout system.
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          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2009-10      2010-11       2011-12     Fund
                                                                  
          Enforcement                             ------------ likely less  
          than $150-----------          Special*

          *Alcoholic Beverage Control Fund
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          ____

          STAFF COMMENTS: 
          
          According to the Department of Alcoholic Beverage Control (ABC),  
          every 50 complaints received for stores selling alcohol through  
          self-service checkouts will likely result in 10-15 actual  
          violations.  Costs associated with investigations of those  
          complaints would be approximately $100,000.

          AB 1060 prohibits off-sale licensees from selling alcoholic  
          beverages using a point-of-sale system with limited or no  
          assistance from an employee of the establishment.   
          "Point-of-sale" system is defined as any computer or electronic  
          system such as Universal Product Code scanners, price lookup  
          codes, or an electronic price lookup system.

          The ABC has exclusive authority to administer the provisions of  
          the ABC Act which involves licensing individuals and businesses  
          associated with the manufacture, importation and sale of  
          alcoholic beverages and the collection of license fees.   
          Existing law authorizes the ABC to place reasonable conditions  
          on any licensee.











          AB 1060 contains Legislative findings and declarations which  
          proclaims that allowing consumers to purchase alcoholic  
          beverages through self-service checkouts facilitates the  
          purchase of alcoholic beverages by minors; permits customers who  
          are in an advanced state of intoxication to purchase additional  
          alcoholic beverages, in violation of state law; and allows for  
          greater theft of alcoholic beverages thereby depriving the state  
          of tax revenues.

          According to retailers, most self-service checkout stations have  
          a lock-out mechanism to preclude any customer from purchasing  
          alcoholic beverages without clerk intervention to verify age and  
          finalize the purchase.