BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                          AB 183 (Ma)
          
          Hearing Date: 8/15/2011         Amended: 6/22/2011
          Consultant: Maureen Ortiz       Policy Vote: G.O. 7-4
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          BILL SUMMARY:  AB 183 prohibits off-sale licensees from selling 
          alcoholic beverages using a customer-operated checkout stand 
          located on the licensee's physical premises.
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                            Fiscal Impact (in thousands)

           Major Provisions         2011-12      2012-13       2013-14     Fund
           
          Enforcement                        ---------unknown, 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 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 $50,000 to $100,000.

          AB 183 contains Findings and Declarations stipulating that 
          allowing customers to purchase alcoholic beverages through 
          self-service checkouts:

          a)  Facilitates the purchase of alcoholic beverages by minors.
          b)  Permits customers who are in an advanced state of 
          intoxication to purchase additional alcoholic beverages, in 
          violation of state law.
          c)  Allows for greater theft of alcoholic beverages, thereby 
          depriving the state of tax revenues.

          Current law requires retailers to conduct all sales of 
          cigarettes, spray paints, and some over the counter drugs 
          through face to face transactions.  AB 183 will additionally 








          AB 183 (Ma)
          Page 1




          require customers to purchase alcoholic beverages at a check 
          stand other than a self-service kiosk.  Retailers claim that 
          self-service checkouts already contain a "lock-out" mechanism 
          which prohibits a customer from purchasing alcohol until a clerk 
          intervenes and verifies that the customer is over age 21 through 
          the identification of the customer.  

          The Department of Alcoholic Beverage Control administers the 
          provisions of the ABC Act which include licensing individuals 
          and businesses associated with the manufacture, importation, and 
          sale of alcoholic beverages in this state, as well as the 
          collection of license fees or occupation taxes.  Violations of 
          the Alcoholic Beverage Control Act constitute a misdemeanor.

          This bill is similar to AB 1060 (De La Torre) 2009-10 session, 
          which was vetoed by the Governor.  In part, the veto message 
          stated, "There is no legitimate evidence to suggest that 
          self-service checkout stands are contributing to the theft of 
          alcoholic beverages and sales to minors or intoxicated persons.  
          Retailers have several strong reasons to prevent the theft or 
          sale of alcohol to minors including the fact that alcohol is an 
          expensive product to be stolen and a grocer's alcohol sales 
          could be placed in jeopardy. Thus, it is unclear what problem 
          this bill seeks to address."