BILL ANALYSIS                                                                                                                                                                                                    Ó







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        |Hearing Date:July 2, 2012          |Bill No:AB                         |
        |                                   |1518                               |
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                      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 § 





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             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.  





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        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 





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             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 





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          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 





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          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.







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         Opposition:  

        None received as of June 27, 2012



        Consultant:Michael Lynch