BILL NUMBER: AB 1907 CHAPTERED 09/27/08 CHAPTER 434 FILED WITH SECRETARY OF STATE SEPTEMBER 27, 2008 APPROVED BY GOVERNOR SEPTEMBER 27, 2008 PASSED THE SENATE AUGUST 14, 2008 PASSED THE ASSEMBLY AUGUST 18, 2008 AMENDED IN SENATE JUNE 11, 2008 INTRODUCED BY Assembly Member Ruskin FEBRUARY 7, 2008 An act to amend Sections 13350, 13356, and 13357 of the Business and Professions Code, relating to point-of-sale systems. LEGISLATIVE COUNSEL'S DIGEST AB 1907, Ruskin. Point-of-sale systems: price accuracy verification. Existing law provides the criteria and methodology, as specified, by which local officials are to measure and verify the accuracy of a point-of-sale (POS) system used by retail establishments as a means for determining the price of an item being purchased by a consumer. Existing law provides procedures for the initial standard inspection as well as special inspections of a POS system. Under existing law, these provisions remain in effect only until January 1, 2009. This bill would change the criteria established for an initial standard inspection of a POS system, including the size of the random sample, as specified. This bill would include within the definition of "special inspections" a reinspection of an establishment at which a price violation occurred within the previous 6 months, as opposed to within the previous 3 months. This bill would also extend the date on which these provisions would be repealed from January 1, 2009, to January 1, 2014. By directing local officials to follow a specified standard of inspection, this bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 13350 of the Business and Professions Code is amended to read: 13350. (a) The board of supervisors of any county or city and county that has adopted or that adopts an ordinance for the purposes of determining the pricing accuracy of a retail establishment using a point-of-sale (POS) system, shall base the initial standard inspection of the POS system on the following criteria: (1) The initial standard inspection shall be performed by collecting a random sample of items that shall include a maximum of 50 percent sale items from either: (i) One department of a retail store. (ii) Multiple areas of a retail store. (iii) The entire store. (2) The initial standard inspection shall be performed by testing a minimum random sample of 10 items for a retail establishment with three or fewer POS checkout registers. (3) The initial standard inspection shall be performed by testing a minimum random sample of 25 items for a retail establishment with 4 to 9 POS checkout registers. (4) The initial standard inspection shall be performed by testing a minimum random sample of 50 items for retail establishments with 10 or more POS checkout registers. (5) The sealer shall verify that the lowest advertised, posted, marked, displayed, or quoted price is the same as the price displayed or computed by the point-of-sale equipment or printed receipt. Only items computed at a higher price than the lowest advertised, posted, marked, displayed, or quoted price shall be considered not in compliance. (6) The minimum random sample size shall not apply to inspections of any establishment at which fewer items than the number specified as the minimum sample size are marked or displayed with a posted or advertised item price. (7) The maximum percentage of sale item restriction in paragraph (1) shall not apply to inspections of any establishment at which a marketing or promotional practice does not enable the sampling of the minimum required percentage of nonsale items, such as "Everything In Store 50 percent Off" or the like. (8) The compliance rate percentage of a retail establishment shall be determined by dividing the number of items in compliance by the sample size multiplied by 100. (b) Enforcement action may be taken for any item not in compliance. (c) The sealer may reinspect any retail facility that has a compliance rate of less than 98 percent. (d) The board of supervisors, by ordinance, may charge a point-of-sale system inspection fee or an annual registration fee, not to exceed the county's total cost of inspecting or testing the accuracy of prices accessed or generated by the system pursuant to this section. (e) The board of supervisors, by ordinance, may charge a reinspection fee for reinspections of a retail establishment that fails the prior inspection, not to exceed the county's total cost of reinspecting or testing the accuracy of prices accessed or generated by the system pursuant to this section. SEC. 2. Section 13356 of the Business and Professions Code is amended to read: 13356. All other inspections of the point-of-sale system are considered "special inspections," including, but not limited to, inspections pertaining to investigations, consumer complaints, complaints from competing businesses or a reinspection of a retail establishment at which one or more price accuracy violations have occurred within the previous six months. SEC. 3. Section 13357 of the Business and Professions Code is amended to read: 13357. This article shall remain in effect only until January 1, 2014, and as of that date is repealed, unless a later enacted statute that is enacted before January 1, 2014, deletes or extends that date. SEC. 4. No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act, within the meaning of Section 17556 of the Government Code.