This is the Valley Industry & Commerce Association’s (VICA) monthly column for the Business Journal. VICA is a business advocacy group representing the San Fernando Valley and surrounding areas. The L.A. City Council has referred a motion to its Planning and Land Use Management Committee (PLUM) to create an ordinance that would require a conditional use permit (CUP) for retailers who use self-checkout technology and sell alcohol. The motion’s author, Councilmember Richard Alarc & #243;n, cites concerns that beer, wine and liquor sold through self-checkout presents an opportunity for minors or intoxicated people to easily make an illegal purchase. There is also apprehension that use of self-checkout technology will cause theft of alcohol products to increase. Current law requires a CUP if there is a “substantial change in the mode or character of operation.” The ordinance proposed by the motion would require any retail establishment that dispenses alcoholic beverages and uses self-checkout to obtain a CUP. This would mean that a retail establishment wishing to sell alcohol with self-checkout machines would not even be able to operate or open its doors without the CUP, which can take one year or more to obtain. The city already has a separate conditional use permit specific to the sale of alcoholic beverages. The permit allows an establishment to operate without the ability to sell alcohol, but the motion before PLUM does not even take this option into consideration. It is clear that the motion also fails to take into account the safety mechanisms self-checkouts currently possess. The systems automatically lock when any alcohol product is scanned. This requires the clerk monitoring the self-checkout stands to verify the age and sobriety of the customer to complete the transaction, just like if a traditional checkout stand was being used. The self-checkout system is also programmed to lock when an item of similar weight to an alcoholic beverage is scanned. This also requires a clerk to confirm that the customer’s purchase is legal before the transaction can be completed. It is in the best interest of grocers and retailers to make certain that any technology used in doing business reduces the incidence of theft and ensures compliance with the law. Theft is costly to retail establishments and the loss of an alcohol sales license due to illegal transactions could mean millions in lost sales revenue. The proposed city ordinance is unnecessary and troublesome to the retail community. Self-checkout technology does not pose any greater risk of theft or alcohol purchase by minors than a traditional checkout stand. Statistics from the U.S. Substance Abuse & Mental Health Services Administration show that most underage drinkers do not purchase alcohol for themselves (only 8.2 percent). Instead, the most common way to obtain alcohol is to give money to someone of legal age to purchase it for them (22 percent). The city must consider its reputation in the business community. Councilmembers say they want to make the city more attractive to business and create policies that will entice retailers to locate in Los Angeles, but enacting an ordinance like the one proposed in the motion would do the opposite. The CUP requirement creates an additional burden for retailers who are already taking the proper precautions to act in compliance with the law. These businesses will take their sales-tax generating ability to other business-friendly communities surrounding the City of L.A., where they will not have to wait more than a year to open their doors. Do you think self-checkouts create an increased risk of illegal alcohol purchases? Would the passage of the revised CUP ordinance make the city even more unfriendly to business? E-mail your responses or thoughts about the column to [email protected] .
