BILL ANALYSIS �
AB 183
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 183 (Ma)
As Amended June 22, 2011
Majority vote
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|ASSEMBLY: |48-26|(May 26, 2011) |SENATE: |21-16|(September 8, |
| | | | | |2011) |
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Original Committee Reference: G.O.
SUMMARY : Prohibits off-sale licensees from selling alcoholic
beverages using a customer-operated checkout stand, as specified.
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 customer-operated checkout stand located on the licensee's
physical premises.
The Senate amendments clarify that no privileges under an off-sale
license shall be exercised by the licensee at any customer-operated
checkout stand located on the licensee's physical premises.
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
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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 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.
AS PASSED BY THE ASSEMBLY , this bill prohibited off-sale licensees
from selling alcoholic beverages using a self-service
checkout system.
FISCAL EFFECT : According to the Senate Appropriations Committee,
ABC states that every 50 complaints for stores selling alcohol
through self-service checkouts will likely result in 10-15 actual
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violations. Costs associated with investigations of those
complaints would be approximately $50,000 to $100,000.
COMMENTS : This bill, as amended in the Senate is consistent with
Assembly actions.
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 (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 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
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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 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.
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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
FN: 0001863