BILL ANALYSIS Ó ----------------------------------------------------------------------- |Hearing Date:July 2, 2012 |Bill No:AB | | |1518 | ----------------------------------------------------------------------- SENATE COMMITTEE ON BUSINESS, PROFESSIONS AND ECONOMIC DEVELOPMENT Senator Curren D. Price, Jr., Chair Bill No: AB 1518Author:Perea As Amended:June 25, 2012 Fiscal:No SUBJECT: Weighmasters: automated weighing systems. SUMMARY: Authorizes any weighmaster weighing any vehicle moving construction 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. Existing law: 1)Defines "weighmaster" as any person who weighs, measures, or counts any commodity and issues a statement of memorandum of the weight, measure, or count which is used as the basis for either the purchase or sale of that commodity or charge for service. (BPC § 12700) 2)Provides for the licensure of weighmasters. (BPC § 12703) 3)Requires a weighmaster to pay to the California Department of Food and Agriculture (CDFA) the following license fee for each license year as applicable to the operation: a) Seventy-five dollars ($75) if the weighmaster is operating at a fixed location. b) Thirty dollars ($30) for each additional fixed location the weighmaster is operating at. c) Two hundred dollars ($200) if the weighmaster is operating at other than a fixed location. d) Twenty dollars ($20) for each deputy weighmaster. (BPC § AB 1518 Page 2 12704) 1)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. (BPC § 12711) 2)Requires weighmasters to obtain a license with the Division of Measurement Standards under the CDFA. (BPC § 12714) 3)Requires weighmasters to keep and preserve for four years all copies of certificates issued and make them available for inspection. (BPC § 12716) 4) Requires that any weighing, measuring, or counting instrument or device, as defined, which is used by a weighmaster to be approved, tested, and sealed. (BPC § 12717) 9)Authorizes the Director to adopt necessary rules and regulations regarding the accuracy of automated systems for retail commodity price charging referred to as "scanners." (BPC § 12736) 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, provided that the system and the operation of the system comply with regulations or policies issued by the CDFA. 2) Defines 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. 3) Specifies that this bill does not impact existing weighing and ticketing systems. 4) Requires a weighmaster who uses an unattended weighing system to keep the same number of deputy weighmaster licenses as were licensed in the average of the last two years preceding the use of an unattended weighing system, until January 1, 2020. AB 1518 Page 3 5) Requires a weighmaster who uses an unattended weighing system to pay the following annual license fees, until January 1, 2020: a) $200 if the weighmaster is operating at a fixed location; b) $75 for each additional fixed location at which the weighmaster is operating; c) $300 if the weighmaster is operating at other than a fixed location; and, d) $50 for each deputy weighmaster. 6) Requires a weighmaster who uses an unattended weighing system to pay the following annual license fees, beginning January 1, 2020: a) $75 if the weighmaster is operating at a fixed location; b) $30 for each additional fixed location at which the weighmaster is operating; c) $200 if the weighmaster is operating at other than a fixed location; and, d) $20 for each deputy weighmaster. 7) 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 to satisfy current certificate requirements. 8) Defines the following terms: a) "License year" to mean the period of time beginning with the first day of the month the weighmaster is required to be licensed in this state, and ending on the date designated by CDFA for expiration of the license, or yearly intervals after the first renewal; b) "Location" to mean a premise on which weighing, measuring, or counting devices are used; c) "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 AB 1518 Page 4 weighmaster, as specified; and, d) "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. FISCAL EFFECT: None. This bill has not been keyed "fiscal" by Legislative Counsel. COMMENTS: 1.Purpose. This measure is sponsored by the California Construction and Industrial Materials Association (CALCIMA). According to the Sponsor, "the legal counsel for the Department of Food and Agriculture has determined that issuance of automated weigh tickets is not allowed under current law, stating that current law was written in 1916. "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. 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 AB 1518 Page 5 California industry to modernize. In certain locations, imports of aggregates, cement, and related materials from Canada, Mexico, and other nations compete with California sources." 2.Background. The Weighmaster program was established in 1916 to ensure accuracy and fairness in weighing and measuring for commercial transactions involving commodities. A key component of the law is that a weighmaster or deputy is present to sign weight certificates. Administered by the CDFA, 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, objectivity 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. 3.Related Legislation. AB 1623 (Yamada) extends the authority of a county board of supervisors to charge fees to recover the costs of the county sealer until January 1, 2018, and establishes or revises device fee caps. This bill will be heard in this Committee on July 2. AB 1782 (Hill) exempts medical waste handlers from recording parcel weight information on weighmaster certificates. This bill is currently awaiting hearing on the Senate floor. SB 944 (BP&ED Committee, Chapter 432, Statutes of 2011) a Committee omnibus bill, as introduced, contained a similar provision to the AB 1518 Page 6 weighmaster exemption for medical waste haulers found in AB 1782. However, due to opposition from the California Agricultural Commissioners and Sealers Association, the amendment was removed from the bill. 4.Arguments in Support. The Sponsor of this bill 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 '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. This 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 to compete more effectively, while also implementing the technologies to enhance verification, accuracy and record-keeping." SUPPORT AND OPPOSITION: Support: California Construction and Industrial Materials Association (Sponsor) CALPORTLAND California Rock Crushers DeSilva Gates Construction Langley Hill Quarry Teichert Materials Vulcan Materials Company West Coast Aggregates, Inc Western Care Construction Company, Inc. AB 1518 Page 7 Opposition: None received as of June 27, 2012 Consultant:Michael Lynch