BILL ANALYSIS �
AB 183
Page 1
ASSEMBLY THIRD READING
AB 183 (Ma)
As Introduced January 25, 2011
Majority vote
GOVERNMENTAL ORGANIZATION 11-3 APPROPRIATIONS 12-4
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|Ayes:|Hall, Atkins, Block, |Ayes:|Fuentes, Blumenfield, |
| |Blumenfield, Chesbro, | |Bradford, Charles |
| |Gatto, Hill, Ma, Perea, | |Calderon, Campos, Davis, |
| |V. Manuel P�rez, Torres | |Gatto, Hall, Hill, Lara, |
| | | |Mitchell, Solorio |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Nestande, Valadao, Silva |Nays:|Harkey, Nielsen, Norby, |
| | | |Wagner |
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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.
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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 the ABC which would justify suspension or revocation of the
license, and imposition of the conditions is reasonably
related to those findings; and, where findings are made by the
ABC that the licensee has failed to correct objectionable
conditions within a reasonable period of time. 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 (e.g., at a
restaurant or bar). An "off-sale" license authorizes the sale
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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 : According to the Assembly Appropriations
Committee, every 50 complaints received by ABC for stores
selling alcohol through self-service check-outs would likely
result in 10 to 15 actual violations. Alcohol Beverages Control
Fund costs associated with those investigations could range up
to $30,000 per year.
COMMENTS : According to the author, 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 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 references a recent study on the
self-checkout system conducted by law students in the Community
Economic Development Clinic at the University of California, Los
Angeles, 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
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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
following 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, this bill 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
General's "California Student Survey" which found that 36% of
the 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 (i.e., 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
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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% 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.
Prior legislation : AB 1060 (De La Torre) of 2009, which was
vetoed by the Governor, would have prohibited off-sale licensees
from selling alcoholic beverages using a self-service checkout
system.
AB 523 (De La Torre) of 2007, which failed passage in the Senate
Governmental Organization Committee, would have prohibited
off-sale general licensees from selling alcoholic beverages
using a self-service checkout system.
Analysis Prepared by : Eric Johnson / G. O. / (916) 319-2531
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