'Son of Tesco Fresh & Easy Law': Self-Service Checkout Booze Ban Bill Passes California State Senate; Headed to Governor's Desk For Action

self-service or "assisted" checkout at Fresh & Easy.

Breaking Buzz

Assembly Bill 183, the legislation to ban sales of alcoholic beverages at self-service checkout stands in retail stores in California, has passed in the California State Senate and is being sent to Governor Jerry Brown, who has until October 9 to either sign the bill into law or veto it. Today is the last day of the 2011 legislative session and the last day for the California State Legislature to send bills to the Governor for action by October 9.

AB 183 passed late Thursday by just the 21-vote majority needed to gain approval and be sent to the Governor.

Twenty one members of the California State Senate voted in favor of passing AB 183 late yesterday, with 16 members voted against passage of the measure, which if signed into law by the Governor will require face-to-face transactions between retail store employees (full-service checkout) and customers whenever alcoholic beverages are purchased at retail in the Golden State.

Three members of the California State Senate, two Democrats and a Republican, didn't vote on the bill yesterday. Those members are Lois Wolk and Carol Liu (Democrats), and Doug LaMalfa, who is a Republican.

As we reported on Wednesday, AB 183 failed in its first vote in the California State Senate on Tuesday, even though it received 17 votes in favor of passage to 16 opposed, because it failed to get the 21-vote majority required to pass. [See - September 7, 2011: Self-Service Checkout Booze Ban Bill Fails in California Senate First Time Around; 'Missing Seven' Dems Hold Key to Passage By Friday.]

However, as we correctly pointed out in the story, Senator Christine Kehoe (Democrat-San Diego), who is the bill's manager in the California State Senate, was able to get a motion to reconsider the bill passed following AB 183's failure to get the needed 21 votes.

Her reason for doing so was because seven Senate Democrats - Senate Majority Leader Ellen Corbett, along with members Noreen Evans; Carol Liu; Curren Price; Michael Rubio; Lois Wolk; and Leland Yee - didn't vote on AB 183 on the Senate Floor on Tuesday.

Five of the "Missing Seven" Democrats voted late yesterday in favor of passage of AB 183, which is what allowed the self-service booze ban bill to gain the needed 21 votes and pass. Senator Rubio voted against the bill. Senators Wolk and Liu didn't vote on AB 183 yesterday, as was the case on Tuesday.

As we've noted in our extensive coverage and analysis of AB 183 and the two bills that preceded it in 2008 (AB 523) and 2010 (AB 1060), if the legislation that's now been passed by both the California State Assembly and California State Senate and is being sent to Governor Jerry Brown becomes law, it will have the most immediate and significant impact on Tesco's Fresh & Easy Neighborhood Market because the chain, which has 128 of its 177 fresh food and grocery markets in California, is currently the only grocer in the Golden State that offers self-service checkout only in its stores.

Other grocery chains in California, such as Winco Foods, Kroger's Ralphs, Save Mart Supermarkets and a couple others, for example, offer customers a choice of both full and self service checkout in some of their stores. But Tesco's Fresh & Easy has a self-service checkout only model and system which it uses in all its stores in California (128 units), metro Las Vegas, Nevada (21 stores) and metro Phoenix, Arizona (28 units). Fresh & Easy calls its system assisted checkout because if asked store workers will assist customers in scanning and bagging their grocery purchases.

Fresh & Easy Neighborhood Market self-checkout system, like those of all other retailers in California, also requires a face-to-face interaction with a store clerk anytime alcoholic beverages are purchased by customers.

When a customer scans an alcoholic beverage item, the self-service checkout system locks up, alerting store workers. Once this occurs a store clerk goes to the checkout and checks the customers identification card to make sure he or she is 21, which is the legal age required to purchase alcohol in California. The clerk must then punch a code number into the cash register in order for the customer to complete his or her transaction.

Tesco's Fresh & Easy and other opponents of AB 183, such as the California Grocers Association, the California Retailers Association, California Chamber of Commerce and others, argue this safeguard is enough to prevent minors from purchasing alcoholic beverages using the self-service checkouts.

In contrast, proponents of AB 183, which include its author, Assemblywoman Fiona Ma (Democrat-San Francisco), the majority of members of the California Assembly and Senate who passed the bill, and groups like Mother's Against Drunk Driving, the United Food and Commercial Workers Union (UFCW), various law enforcement organizations and others, say allowing sales of alcoholic beverages at self-service checkouts increases the chance minors can game the system and purchase adult beverages.

But the argument over whether or not AB 183 should pass in the California State Legislature is now moot. The legislation passed by a big majority in the California State Assembly in May and by 21 votes (to 16 against) in the California State Senate yesterday.

Now it's all up to Governor Jerry Brown to decide if what we've nicknamed the "Son of Tesco Fresh & Easy Law" (AB 183) because of its singular impact on the grocery chain of the same name becomes law in California. We nicknamed the previous two bills, AB 523 in 2008 and AB 1060 in 2010, both of which had as their goals the banning of alcohol sales at self-service checkouts, the "Tesco Fresh & Easy Law," hence the addition of "Son of" to what is now a four year old nickname for three bills since 2008, all of which have been authored to ban the sale of alcoholic beverages at self-service checkout stands in retail stores in California.

AB 523 failed to make it out of the California State Legislature in 2008. But In 2010, AB 1060 passed in both the California State Assembly and Senate. Republican Governor Arnold Schwarzenegger vetoed the bill at the final hour though, as we reported here - September 30, 2010: Fresh & Easy Neighborhood Market Hopes Governor Schwarzenegger Can Find His Veto Pen Before Midnight Tonight

Jerry Brown, the former two-term Governor of California (1970's-80's), a Democrat who replaced Republican Arnold Schwarzenegger in Sacramento in 2011, has until October 9 to either sign AB 183 into law, veto it, or do nothing. If Brown doesn't sign or veto the bill by the October 9 deadline it automatically becomes law.

Follow the Story Below - Legislation to Ban Sales of Alcoholic Beverages at Self-Service Checkout Stands in California: A History - 2008-2011

September 7, 2011: Self-Service Checkout Booze Ban Bill Fails in California Senate First Time Around; 'Missing Seven' Dems Hold Key to Passage By Friday

September 6, 2011: California State Senate Set to Vote on Self-Service Checkout Booze Ban Bill This Week

August 20, 2011: 'Son of Tesco Fresh & Easy Law': Self-Service Checkout Booze Ban Bill AB 183 Passes Out of California Senate Appropriations Committee; Headed For Senate Floor

July 27, 2011: 'Son of Tesco Fresh & Easy Law' Moving Through State Senate: Will California Determine Fresh & Easy Neighborhood Market's Checkout Scheme?

June 4, 2011: 'Son of Tesco Fresh Easy Law': Self-Checkout Booze Ban Bill AB 183 Sails Through California State Assembly; State Senate Next Stop

May 11, 2011: ‘Son of Tesco Fresh & Easy Law' - California Assembly Appropriations Committee Passes Self-Checkout Ban Bill AB 183 By 12-4 Margin

May 6, 2011: 'Son of Tesco Fresh & Easy Law': California State Assembly Appropriations Committee Hearing For AB 183 Cancelled

May 4, 2011: 'Son of Tesco Fresh & Easy Law': Strong Chance California Legislation to Prohibit Alcohol Sales at Self-Service Checkouts Could Pass This Year

September 30, 2010: Fresh & Easy Neighborhood Market Hopes Governor Schwarzenegger Can Find His Veto Pen Before Midnight Tonight

September 28, 2010: Fresh & Easy Neighborhood Market Hoping Governor Schwarzenegger Prefers His Veto Pen When it Comes to AB 1060

September 25, 2010: Future of Fresh & Easy Neighborhood Market's Self-Service-Only Checkout in California Up to Governor Schwarzenegger

August 24, 2010: California State Senate Sends Bill to Governor That Could End Self-Service-Only Checkout at Fresh & Easy Neighborhood Market

August 15, 2010 piece : Bill to Ban Alcoholic Beverage Sales at Self-Service Checkouts Would End 'Self-Service Only' at California Fresh & Easy Neighborhood Market Stores

July 14, 2008: Breaking News & Analysis: CA Assemblyman Introduces 'Tesco Fresh & Easy Law' to Ban Stores With Self-Checkout-Only From Selling Alcoholic Beverages.

Self-Service Checkout Booze Ban Bill Fails in California Senate First Time Around; 'Missing Seven' Dems Hold Key to Passage By Friday

Self service or "assisted" checkout at Fresh & Easy.

"It ain't over 'til it's over."  -Yogi Berra

AB 183, the bill that if it becomes law would ban sales of alcoholic beverages at self-service checkout stands in grocery and other types of retail stores in California, has failed to gain the needed 21-vote majority required to pass in the California State Senate.

But the voting is far from over.

Following a 17-to-16 vote in favor of passage of AB 183 late yesterday, Senator Christine Kehoe (Democrat-San Diego), who is carrying the legislation in the California State Senate for its author, Assemblywoman Fiona Ma (Democrat-San Francisco), made a motion to reconsider, which was approved by all 40 members of the Senate.

As a result, yesterday's vote is what's called an unofficial ballot, which means AB 183 will come up for another (the official) vote before Friday, which is the last day of the current legislative session and the deadline for both houses of the state legislature to pass bills and send them to the Governor.

Should AB 183 pass in the Senate and then be signed into law by Governor Jerry Brown, it will have a singular immediate impact on Tesco's Fresh & Easy Neighborhood Market because the retailer, which has 127 of its 177 fresh food and grocery stores in California, is the only chain in the Golden State that has a self-service checkout only system. The other 49 Fresh & Easy markets are in metro Las Vegas, Nevada (21 units) and metro Phoenix, Arizona (28 stores)

AB 183 requires all purchases of alcoholic beverages to be transacted in a face-to-face interaction with a store clerk, which means full-service checkout.

Many retailers in California offer self-service checkout in their stores but as an option along with the traditional full-service checkout. For these retailers a ban on sales of alcohol at self-service checkouts merely means customers will have to use the full-service checkouts when buying booze.

But for Tesco's Fresh & Easy, if AB 183 becomes law it will mean the retailer will need to at a minimum convert at least one of the checkout stands in each of its California stores to a full-service unit, in order to comply with the face-to-face interaction provision of the bill.

The long range future implication of the legislation for all retailers in California is that should they want to offer self-service checkout only in a store, such as a supermarket where alcoholic beverages are sold, they can't do so, instead having to offer some form of mixed self and full-service checkout in order to fulfill the legal requirements of AB 183.

The 'Missing Seven' Democrats

The reason AB 183 fell four votes short of gaining the 21 votes (simple majority) needed to pass is because seven members of the California State Senate, all Democrats, failed to vote, either because they were absent or abstained from voting on the measure.

Among the seven members who didn't vote for AB 183 yesterday was Senate Majority Leader Ellen Corbett, a Democrat from the Northern California city of San Leandro.

The remaining six members, all Democrats, who failed to vote on the bill yesterday are: Senator Noreen Evans; Senator Carol Liu; Curren Price; Michael Rubio; Lois Wolk; and Leland Yee.

According to our sources, Senator Kehoe filed the motion to reconsider yesterday based on the absence of some or all of the seven members of her party, including the Senate Majority Leader.

Based on our ongoing reporting and analysis of the legislative bill and process, at least four of the "Missing Seven" members - and possibly all seven - plan to vote in favor of passage of AB 183 when it comes up for a vote again, which could be as early as today.

The bill needs favorable votes from just four of the seven members in order to gain the 21 votes required for passage. Stay tuned.

California Legislation to Ban Alcohol Sales at Self-Service Checkouts: Follow the Story at the Links Below

September 6, 2011: California State Senate Set to Vote on Self-Service Checkout Booze Ban Bill This Week

August 20, 2011: 'Son of Tesco Fresh & Easy Law': Self-Service Checkout Booze Ban Bill AB 183 Passes Out of California Senate Appropriations Committee; Headed For Senate Floor

July 27, 2011: 'Son of Tesco Fresh & Easy Law' Moving Through State Senate: Will California Determine Fresh & Easy Neighborhood Market's Checkout Scheme?

June 4, 2011: 'Son of Tesco Fresh Easy Law': Self-Checkout Booze Ban Bill AB 183 Sails Through California State Assembly; State Senate Next Stop

May 11, 2011: ‘Son of Tesco Fresh & Easy Law' - California Assembly Appropriations Committee Passes Self-Checkout Ban Bill AB 183 By 12-4 Margin

May 6, 2011: 'Son of Tesco Fresh & Easy Law': California State Assembly Appropriations Committee Hearing For AB 183 Cancelled

May 4, 2011: 'Son of Tesco Fresh & Easy Law': Strong Chance California Legislation to Prohibit Alcohol Sales at Self-Service Checkouts Could Pass This Year

September 30, 2010: Fresh & Easy Neighborhood Market Hopes Governor Schwarzenegger Can Find His Veto Pen Before Midnight Tonight

September 28, 2010: Fresh & Easy Neighborhood Market Hoping Governor Schwarzenegger Prefers His Veto Pen When it Comes to AB 1060

September 25, 2010: Future of Fresh & Easy Neighborhood Market's Self-Service-Only Checkout in California Up to Governor Schwarzenegger

August 24, 2010: California State Senate Sends Bill to Governor That Could End Self-Service-Only Checkout at Fresh & Easy Neighborhood Market

August 15, 2010 piece : Bill to Ban Alcoholic Beverage Sales at Self-Service Checkouts Would End 'Self-Service Only' at California Fresh & Easy Neighborhood Market Stores

July 14, 2008: Breaking News & Analysis: CA Assemblyman Introduces 'Tesco Fresh & Easy Law' to Ban Stores With Self-Checkout-Only From Selling Alcoholic Beverages.

California State Senate Set to Vote on Self-Service Checkout Booze Ban Bill This Week

Self-service or "assisted" checkout at Fresh & Easy.

The California State Senate is set to vote on AB 183, which if passed in the legislative body and signed into law by Governor Jerry Brown will ban the sales of alcoholic beverages at self-service checkouts in retail stores in the Golden State, before the week is out.

In its official language, AB 183 prohibits holders of off-sale beer, wine and liquor licenses from selling alcoholic beverages using a customer-operated checkout stand located on the licensee's physical premises. [You can read the legislative analysis here.] In other words, any purchase of alcohol will require a face-to-face interaction with a store clerk if the bill becomes law in the Golden State.

Friday, September 9 is the last day of the current legislative session, and the last day both houses of the California State Legislature can vote on and pass bills in the session before it recesses until January 4, 2012.

A simple majority, 21 votes, is needed for AB 183 to pass in the California State Senate.

The bill, which originated in the California State Assembly (hence the AB designation), passed by a 48-to-26 majority in that body on May 26 of this year.

Based on our analysis, AB 183, which is authored by Assemblywomen Fiona Ma (Democrat-San Francisco), has enough votes (with a few to spare) to pass in the California State Senate.

If we're correct and the bill passes by the end of Friday's session, AB 183 will then be sent to Governor Jerry Brown, who like Ma and the majority of the bill's backers in both houses is a Democrat.

If the Governor receives AB 183 by the end of legislative business Friday, he has until October 9 to either sign or veto the bill.

If AB 183 doesn't pass or for some reason isn't voted on in the California State Senate by Friday, it will be dead for this legislative session.

If we're correct and AB 183 passes in the California State Senate this week, the opponents of the legislation, which include Tesco's Fresh & Easy Neighborhood Market, the California Grocers Association and others (see the lists at the end of this piece), will then need to stage a last-ditch effort to persuade the Governor to veto it by the October 9, 2011 deadline.

Governor Brown hasn't spoken out publicly in favor of or against AB 183, which isn't surprising since as the chief executive of the state with the second-highest unemployment rate (12.2 %) in the nation (after Nevada) and a huge budget deficit, he has bigger fish to fry than the self-service checkout booze ban legislation.

However, based on our reporting and analysis, we believe the Governor is leaning towards signing the self-service checkout booze ban bill by an about 60% (sign) to 40% (veto) margin, which is far from the slam-dunk many of its supporters thought would be the case earlier this year.

'Tesco Fresh & Easy Law'

Legislation to ban sales of alcoholic beverages at self-service checkouts in retail stores in California was first authored in 2008. That bill, AB 523, failed to make it out of the California State Senate.

In 2010 another bill, AB 1060, passed both houses of the California State Legislature but was vetoed by then Governor Arnold Schwarzenegger.

We nicknamed the two bills, both authored by Assemblyman Hector De La Torre (D-South Gate, Southern California) and backed primarily by the United Food and Commercial Workers (UFCW) union, the "Tesco Fresh & Easy Law" because if either bill had become law it would have affected Tesco's Fresh & Easy Neighborhood Market more directly than any other retailer in California since it's the only chain we've been able to find that offers self-service checkout only at its 128 stores in the Golden State.

Tesco has 177 Fresh & Easy stores, all of which offer self-service checkout only, or what the grocer calls "assisted checkout" because if asked a store worker will assist shoppers with the checkout process. The 49 remaining Fresh & Easy stores are located in metropolitan Las Vegas, Nevada (21 units) and metro Phoenix, Arizona (28 stores.)

Enter 'Son of Tesco Fresh & Easy Law'

But just when Tesco's Fresh & Easy Neighborhood Market thought it might be able to catch a break following the 2010 veto, San Francisco Assemblywoman Fina Ma, who's also the Speaker Pro Tempore of the California State Assembly, the second highest leadership position, introduced what we've nicknamed the "Son of Tesco Fresh & Easy Law," AB 183, in late January of this year.

This time around Ma and the bill's supporters have done two things De La Torre didn't: Built a much broader coalition in favor of the legislation, which includes numerous law enforcement organizations, and downplayed the UFCW union's involvement in AB 183.

For example, in 2008 and again in 2010 the UFCW was front-and-center in touting the self-checkout booze ban legislation. This time around the union has remained largely in the background, although as we've noted in our coverage of AB 183 it's a key supporter of the legislation.

The support particularly of law enforcement will be key if as we've said AB 183 passes this week in the California State Senate.

On one side the California Grocer's Association, California Chamber of Commerce and other opponents will be attempting to bend the Governor's ear, asking him to veto the self-checkout booze ban bill.

But on the other hand, in addition to the UFCW union and the powerful MADD (Mothers Against Drunk Driving) organizations, there will also be numerous California law enforcement organizations who argue that allowing sales of alcohol at self-service checkouts makes it easier for minors to purchase alcoholic beverages in stores, even though there's little empirical evidence to support the position, including that offered in the official legislative analysis of AB 183

A number of these law enforcement groups supported AB 1060 last year. But this year they've been much more vocal in their collective support. Supporters have also added many more law enforcement groups to the list of supporters.

As such, it will be difficult for the Democratic Governor to veto AB 183, as the forces behind it - important Democrat legislators and allies like Ma and others, the unions, MADD and law enforcement organizations statewide - make for a rather potent combination for Brown to buck should he want to veto the bill, which in practice will only directly affect one retailer in California, Tesco's Fresh & Easy Neighborhood Market.

But the Governor is unpredictable and has been known to buck what is often seen as conventional political wisdom, such as he did earlier this year when he vetoed the card check bill passed in the legislature which would have allowed farm workers in California to vote on unionization by filling out a card rather than using the traditional secret ballot voting process. The legislation though had much more riding on it for the Governor and the state than does AB 183, which most residents of California have little idea of, and if they do care little about.

We should know before or by Friday if AB 183 has passed in the California State Senate, as our analysis suggests will be the case, and is then sent to the Governor for his signature or veto. Stay tuned.

Key Supporters of AB 183

California Police Chiefs Association (co-source)
California Professional Firefighters (co-source)
Mothers Against Drunk Driving (co-source)
Association for Los Angeles Deputy Sheriffs
California Association of Addiction Recovery Resources
California Association of Alcohol and Drug Program Executives, Inc.
California Association of Alcoholism and Drug Abuse Counselors
California Council on Alcohol Problems
California Labor Federation
California Narcotic Officers' Association
California Nurses Association
California Teamsters Public Affairs Council
City and County of San Francisco Police Department
Consumer Federation of California
County Alcohol and Drug Program Administrators Association of California
Los Angeles County Probation Officers Union
Marin Institute
Riverside Sheriffs' Association
United Food and Commercial Workers Union
Western States Council of the United Food and Commercial Workers

Key Opponents of AB 183

California Chamber of Commerce
California Grocers Association
California Hispanic Chambers of Commerce
California Independent Grocers Association
California Manufacturers and Technology Association
California Retailers Association
Central City Association of Los Angeles
Information Technology and Innovation Foundation
Los Angeles Area Chamber of Commerce
National Cash Register Corporation
Neighborhood Market Association
Tech America
Valley Industry and Commerce Association 

Source: State of California Legislative Analyst's Office

California Legislation to Ban Alcohol Sales at Self-Service Checkouts: Follow the Story at the Links Below

August 20, 2011: 'Son of Tesco Fresh & Easy Law': Self-Service Checkout Booze Ban Bill AB 183 Passes Out of California Senate Appropriations Committee; Headed For Senate Floor

July 27, 2011: 'Son of Tesco Fresh & Easy Law' Moving Through State Senate: Will California Determine Fresh & Easy Neighborhood Market's Checkout Scheme?

June 4, 2011: 'Son of Tesco Fresh Easy Law': Self-Checkout Booze Ban Bill AB 183 Sails Through California State Assembly; State Senate Next Stop

May 11, 2011: ‘Son of Tesco Fresh & Easy Law' - California Assembly Appropriations Committee Passes Self-Checkout Ban Bill AB 183 By 12-4 Margin

May 6, 2011: 'Son of Tesco Fresh & Easy Law': California State Assembly Appropriations Committee Hearing For AB 183 Cancelled

May 4, 2011: 'Son of Tesco Fresh & Easy Law': Strong Chance California Legislation to Prohibit Alcohol Sales at Self-Service Checkouts Could Pass This Year

September 30, 2010: Fresh & Easy Neighborhood Market Hopes Governor Scharzenegger Can Find His Veto Pen Before Midnight Tonight

September 28, 2010: Fresh & Easy Neighborhood Market Hoping Governor Schwarzenegger Prefers His Veto Pen When it Comes to AB 1060

September 25, 2010: Future of Fresh & Easy Neighborhood Market's Self-Service-Only Checkout in California Up to Governor Schwarzenegger

August 24, 2010: California State Senate Sends Bill to Governor That Could End Self-Service-Only Checkout at Fresh & Easy Neighborhood Market

August 15, 2010 piece : Bill to Ban Alcoholic Beverage Sales at Self-Service Checkouts Would End 'Self-Service Only' at California Fresh & Easy Neighborhood Market Stores

July 14, 2008: Breaking News & Analysis: CA Assemblyman Introduces 'Tesco Fresh & Easy Law' to Ban Stores With Self-Checkout-Only From Selling Alcoholic Beverages.