BILL ANALYSIS
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|SENATE RULES COMMITTEE | AB 1060|
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THIRD READING
Bill No: AB 1060
Author: De La Torre (D)
Amended: As introduced
Vote: 21
SENATE GOVERNMENTAL ORG. COMMITTEE : 8-0, 7/14/09
AYES: Wright, Florez, Negrete McLeod, Oropeza, Padilla,
Price, Wiggins, Yee
NO VOTE RECORDED: Harman, Benoit, Calderon, Denham, Wyland
SENATE APPROPRIATIONS COMMITTEE : 7-4, 8/17/09
AYES: Kehoe, Corbett, Hancock, Leno, Oropeza, Price, Yee
NOES: Cox, Denham, Walters, Wyland
NO VOTE RECORDED: Runner, Wolk
ASSEMBLY FLOOR : 50-27, 5/28/09 - See last page for vote
SUBJECT : Alcoholic beverage licenses: self-service
checkouts
SOURCE : Author
DIGEST : This bill prohibits off-sale licensees from
selling alcoholic beverages using a self-service checkout
system.
ANALYSIS : 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
CONTINUED
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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.
This bill:
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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.
Comments
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 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 is not
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 which
focuses on researching trends in the grocery industry and
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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 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."
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
According to the Senate Appropriations Committee:
Fiscal Impact (in thousands)
Major Provisions 2009-10 2010-11
2011-12 Fund
Enforcement
------likely less than $150------
Special*
*Alcoholic Beverage Control Fund
SUPPORT : (Verified 9/10/09)
California Council on Alcohol Policy
Consumer Federation of California
Los Angeles, City of
Marin Institute
Mothers Against Drunk Driving
Peace Officers Research Association of California
Peace Officers Research Association of California
Pueblo Y Salud, Inc.
Sutter/Yuba Friday Night Live - Youth Development
Organization
OPPOSITION : (Verified 9/10/09)
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California Grocers Association
California Retailers Association
Department of Finance
NCR
ARGUMENTS IN SUPPORT : Proponents note that the
predominant problem among youth is alcohol consumption and
that sound alcohol policies such as this bill can prevent
and reduce alcohol-related problems.
Proponents reference the California State Attorney
General's "California Student Survey" which found that 36
percent of 9th grade and nearly half (48 percent) of 11th
grade students report that alcohol is very easy to obtain.
The survey also discovered that teens who binge drink
(consume five 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 this bill 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 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 National Survey on
Drug Use & Health show that:
Among underage drinkers, just 8.2 percent purchased the
alcohol themselves while nearly 22 percent 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 percent). In addition, adult family members
provided it 19.5 percent of the time.
ASSEMBLY FLOOR :
AYES: Ammiano, Arambula, Beall, Block, Blumenfield,
Brownley, Buchanan, Caballero, Charles Calderon, Carter,
Chesbro, Coto, Davis, De La Torre, De Leon, Eng, Evans,
Feuer, Fuentes, Furutani, Galgiani, Hall, Hayashi,
Hernandez, Hill, Huffman, Jones, Krekorian, Lieu, Bonnie
Lowenthal, Ma, Mendoza, Monning, Nava, Nielsen, John A.
Perez, V. Manuel Perez, Portantino, Price, Ruskin, Salas,
Saldana, Skinner, Solorio, Swanson, Torlakson, Torres,
Torrico, Yamada, Bass
NOES: Adams, Anderson, Blakeslee, Conway, Cook, DeVore,
Duvall, Emmerson, Fletcher, Fuller, Gaines, Garrick,
Gilmore, Hagman, Harkey, Huber, Jeffries, Knight, Logue,
Miller, Nestande, Niello, Silva, Smyth, Audra Strickland,
Tran, Villines
NO VOTE RECORDED: Bill Berryhill, Tom Berryhill, Fong
TSM:do 9/10/09 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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