BILL ANALYSIS �
AB 183
Page 1
Date of Hearing: April 13, 2011
ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
Isadore Hall, Chair
AB 183 (Ma) - As Introduced: January 25, 2011
SUBJECT : Alcoholic beverage licenses: self-service checkouts.
SUMMARY : Prohibits off-sale licensees from selling alcoholic
beverages using a self-service checkout system. Specifically,
this bill :
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 :
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 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
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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 $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.
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:
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 : Unknown
COMMENTS :
According to the author's office, this bill takes a
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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 their impact on economic
development in low-income communities. This particular study
was conducted over two weeks in April, 2009 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."
The author states, this bill will ensure that all alcohol
purchases be completed through a face-to-face transaction to
ensure proper identification and prevent sales to minors and the
intoxicated. Despite the concerns over the precision of the
self-checkout machines, AB 183 does not ban them. This bill is
a fair compromise bill that will prevent underage drinking and
protect our communities.
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
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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.
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 also contend 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."
Furthermore, 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.
Prior legislation : AB 1060 (De La Torre) of the 2009-2010
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Legislative Session. Prohibits off-sale licensees from selling
alcoholic beverages using a self-service checkout system.
Vetoed by Governor.
AB 523 of 2007-2008 Legislative Sessions. 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.
REGISTERED SUPPORT / OPPOSITION :
Support
Association for Los Angeles Deputy Sheriffs
California Association of Addiction Recovery Resources
California Association of Alcoholism & Drug Abuse Counselors
California Council on Alcohol Problems
California Narcotic Officers' Association
California Police Chiefs Association
California Professional Firefighters
County Alcohol and Drug Program Administrators Association of
California
L.A. County Probation Officers Union
Marin Institute
Mothers Against Drunk Driving
Riverside Sheriffs' Association
Opposition
California Grocers Association
California Hispanic Chambers of Commerce
Analysis Prepared by : Eric Johnson / G. O. / (916) 319-2531