BILL ANALYSIS Ó AB 1518 Page 1 Date of Hearing: March 27, 2012 ASSEMBLY COMMITTEE ON BUSINESS, PROFESSIONS AND CONSUMER PROTECTION Mary Hayashi, Chair AB 1518 (Perea) - As Amended: March 19, 2012 SUBJECT : Weighmasters: automated weighing systems. SUMMARY : Authorizes weighmasters to use unattended weighing systems, as specified. Specifically, this bill : 1)Authorizes any weighmaster weighing any vehicle moving construction materials, including but not limited to earth, stone, rock, sand, gravel, limestone, ready mixed concrete, cementitious materials, recycled construction materials, or asphalt paving materials, to use an unattended weighing system to weigh the vehicle and issue a weighmaster certificate to buyers who opt to utilize the unattended system. 2)Requires the name of the principal weighmaster and the unique system identification number of the unattended weighing system utilized to be imprinted on the weighmaster certificate and specifies that this information satisfies current weighmaster certificate requirements. 3)Specifies that this bill does not impact existing weighing and ticketing systems. 4)Defines the following terms: a) "Principal weighmaster" to mean any person or entity identified on the weighmaster certificate, that may employ or designate any person to act for the weighmaster as a deputy weighmaster, as specified; and, b) "Unattended weighing system" to mean an automated system not directly under the supervision of a weighmaster that meets approval, testing, and sealing requirements, as specified. EXISTING LAW : 1)Provides for the licensure of weighmasters who weigh, measure, or count any commodity and issue a statement or memorandum AB 1518 Page 2 that is used as the basis for either the purchase or sale of that commodity. 2)Requires that a weighmaster issue a signed weighmaster certificate, with specified information, whenever payment for the commodity is dependent on a written or printed weight, measure, or count. 3)Specifies that any weighing, measuring, or counting instrument or device, as defined, which is used by a weighmaster be approved, tested, and sealed, as specified. FISCAL EFFECT : Unknown COMMENTS : According to the author, "Established in 1916, Business & Professions Code sections 12700-12736 ensure accuracy and fairness in weighing and measuring for commercial transactions involving commodities. A key component of the code is that a weighmaster or deputy is present to sign weight certificates. "Technological developments with computers, scanners, sensors, electronics, lasers, video, etc. provide capabilities for accuracy, verification, and efficiency that were not previously available. In essence, technology provides means for remote and/or unattended systems. "Nearly every facet of extraction, processing, batching, loading, weighing, and ticketing of construction materials is or can be automated to some degree. Individual loader operators even have computerized information on how much to load in each truck. Load out processes remain the one operation that cannot be fully automated due to current law. "Construction and industrial material operations can load out up to hundreds of trucks each day during busy times. Automated systems will allow more efficient dispatch of trucks, which can help reduce truck queuing and idling, improve timely delivery to projects, and distribute impacts to local traffic more evenly. It can assist with the management of vehicles to meet after hour work demands. "Automated systems can allow for utilization of more plants. In a slow economy, it is often uneconomical to open or operate certain plants for small projects due to the lack of automation. AB 1518 Page 3 This can lead to materials being hauled longer distances over public roads. Automated load outs could facilitate optimal use of plants nearest to projects. "It brings California standards up to par with other states and allows California industry to modernize. In certain locations, imports of aggregates, cement, and related materials from Canada, Mexico, and other nations compete with California sources." Background . Administered by the California Department of Food and Agriculture, the Weighmaster Enforcement Program assures that commercial transactions based on quantities certified on a weighmaster certificate are accurate. The program licenses as weighmasters, individuals or firms who weigh or measure bulk commodities and issue certificates of accuracy. The Weighmaster Enforcement Program seeks to provide customer confidence when buying or selling bulk products based on quantities represented on a weighmaster certificate by ensuring uniformity, fairness and honest competition in the marketplace. A weighmaster is a person or business that weighs, measures, or counts a commodity and issues a written statement of that quantity, referred to as a weighmaster certificate. It is a legal document used as the basis to buy or sell the commodity described on the certificate. All weighmaster certificates are required by law to have certain information that must be completed prior to issuance. Some of the required information includes the name of the licensed weighmaster company and a description of the commodity weighed, measured or counted. Certificates must be dated and signed by a deputy weighmaster. This bill allows weighmasters to use an unattended or "automated" weighing system to issue a weighmaster certificate. The bill also specifies that unattended weighing systems meet current approval, testing, and sealing requirements. Support . The sponsor of this bill, California Construction and Industrial Materials Association (CalCIMA), writes, "AB 1518 would update a 1916 provision in the Business & Professions Code that prevents modernization of weighing and ticketing functions. In particular, the code requires the physical presence of a AB 1518 Page 4 'weighmaster' to issue a weigh certificate. While nearly every aspect of extracting, processing, batching, and loading materials can be automated, the exception is for the issuance of the weigh certificate. "While supporting technology adaptations, CalCIMA members are also equally committed to accuracy and transparency of transactions. Our members work closely with the Division of Measurement Standards (DMS) to ensure automated systems meet or exceed transaction safeguards that prevent fraud or misuse. The legislation re-iterates authority for DMS to regulate, approve, and test weighting systems, and retains overall weighmaster function and responsibility. "The legislation can provide many benefits, including allowing for more efficient scheduling of trucks and plant operations, reducing truck idling and congestion on road ways, allowing use of plants closer to project sites, and assisting California business compete more effectively, while also implementing the technologies to enhance verification, accuracy and record-keeping." Oppose . The California Agricultural Commissioners and Sealers Association (CACASA) writes in opposition, "The bill would define an unattended weighing system as an automated system not directly under the supervision of a weighmaster that meets the approval, testing, and sealing requirements specified in existing law. "County sealers would be tasked with performing weighmaster certificate audits at the site of the unattended weighing system to ensure that commercial transactions dependent on weights and measures are accurate. Additionally, county sealers would be called upon in the event of a complaint by either the consumer or the retailer. CACASA is concerned that the introduction of unattended weighing systems in the state will require increase oversight and audit activity to ensure consumer protection. "Without an increase to the fees associated with the program, ÝCACASA] has determined that there is insufficient funding at the state level to perform adequate inspections and audits of the unattended weighing systems. Until there is a stronger level of comfort and available resources to maintain oversight, CACASA must oppose unless amended to provide sufficient enforcement funding." AB 1518 Page 5 REGISTERED SUPPORT / OPPOSITION : Support California Construction and Industrial Materials Association (Sponsor) Brown Sand, Inc. CalPortland Company Specialty Minerals, Inc. Syar Concrete LLC Teichert Materials Vulcan Material Company, West Region Western Care Construction Company, Inc. Opposition California Agricultural Commissioners and Sealers Association Analysis Prepared by : Rebecca May / B.,P. & C.P. / (916) 319-3301