BILL ANALYSIS                                                                                                                                                                                                    �



                                                                            



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          |SENATE RULES COMMITTEE            |                        SB 482|
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                                    THIRD READING


          Bill No:  SB 482
          Author:   Hill (D)
          Amended:  As introduced
          Vote:     21

           
           SENATE BUS., PROF. & ECON. DEVELOPMENT COMMITTEE  :  10-0, 4/1/13
          AYES:  Price, Emmerson, Block, Corbett, Galgiani, Hernandez,  
            Hill, Padilla, Wyland, Yee

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8


           SUBJECT  :    Point-of-sale systems

           SOURCE  :     Author


           DIGEST  :    This bill extends indefinitely the law authorizing a  
          county to perform inspections, and charge inspection fees for  
          retail point-of-sale (POS) systems, and to take enforcement  
          actions for violations of that law.

           ANALYSIS  :    

          Existing law:

          1. Authorizes the board of supervisors of any county or city and  
             county that has adopted an ordinance for the purposes of  
             determining the pricing accuracy of a retail establishment  
             using a POS system to perform standard inspections, charge  
             inspection fees, and take enforcement actions.  

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          2. Establishes the criteria and methodology, as specified, by  
             which local officials are to measure and verify the accuracy  
             of a POS system used by retail establishments as a means for  
             determining the price of an item being purchased by a  
             consumer.

          3. Requires the sealer to verify that the lowest price  
             advertised, posted, marked, displayed, or quoted is the same  
             as the price displayed or computed by the POS equipment or  
             printed receipt, and states that items computed at a higher  
             price shall be considered not in compliance.  

          4. Provides that enforcement action may be taken for any item  
             not in compliance, and that the sealer may re-inspect any  
             retail facility that has a compliance rate of less than 98%.   


          5. Provides that a county may charge an inspection fee or an  
             annual registration fee, not to exceed the actual cost of the  
             inspection or testing.  

          6. Provides that a county may charge a re-inspection fee, not to  
             exceed the actual cost of the re-inspection or tests, when an  
             establishment has failed a standard inspection.  

          7. Defines "point-of-sale system" as any computer or electronic  
             system used by a retail establishment such as, but not  
             limited to, Universal Product Code (UPC) scanners,  
             price-look-up codes, or an electronic price look-up system as  
             a means for determining the price of the item being purchased  
             by a consumer.  

          8. Authorizes the re-inspection of a retail establishment if one  
             or more price accuracy violations have occurred in the  
             previous six months.  

          9. Repeals the January 1, 2014 sunset date of the POS law.  

          This bill deletes the January 1, 2014 sunset date of the POS  
          law, thereby extending indefinitely the POS law which authorizes  
          a county to perform inspections, and charge inspection fees for  
          retail POS systems, and to take enforcement actions for  
          violations of that law.


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           Background
           
          The Department of Food and Agriculture has general enforcement  
          supervision of the state law relating to weights and measures  
          and measuring devices, and any state or county sealer has  
          authority to administer specific provisions of this law.  The  
          authority for weights and measures registration fees was first  
          enacted in 1982 to provide funding for inspection activities.   
          The law has been amended several times to add additional devices  
          and to adjust the schedule of maximum fees.  Under the law, the  
          county board of supervisors may authorize POS registration fees  
          and establish inspection fees not to exceed the actual cost of  
          conducting the inspection.  The inspection process involves  
          testing a representative sample of items from a retail  
          establishment and determining whether the advertised price  
          matches what the consumer is charged.

           Comments
           
          The author indicates that this bill is necessary to ensure that  
          the consumer protections contained in prior legislation relating  
          to POS devices (AB 889 and AB 1907) remain in statute  
          permanently.  These bills granted counties the authority to  
          inspect the pricing accuracy of retail POS systems and  
          established appropriate fees, and to ensure that fees would be  
          commensurate with enhanced service and uniformity in the  
          inspection process.

           Prior Legislation
           
          AB 1907 (Ruskin, Chapter 434, Statutes of 2008) extended the  
          sunset date on the POS law from January 1, 2009, to January 1,  
          2014.

          AB 889 (Ruskin, Chapter 529, Statutes of 2005) extended  
          authority of county sealers of weights and measures to levy  
          civil penalties for violations, extended the sunset on the  
          authority for counties to charge an annual device registration  
          fee, updated and revised fee schedule levels, and extended,  
          until January 1, 2009, the authority for counties to inspect the  
          pricing accuracy of retail POS systems.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  Yes

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           SUPPORT  :   (Verified  4/12/13)

          California Agricultural Commissioners and Sealers Association
          California Grocers Association
          California Retailers Association


           ARGUMENTS IN SUPPORT  :    The California Agricultural  
          Commissioners and Sealers Association (CACASA) indicates that  
          the current inspection procedure represents a carefully crafted  
          compromise that was agreed to by all interested parties.  CACASA  
          states that all affected parties have discussed the merits of  
          the scanner inspection program and have agreed that the local  
          oversight benefits not only the consumer through more accurate  
          and fair pricing at the marketplace; but also the industry  
          through the creation of a level playing field.  CACASA states  
          that there is mutual agreement that counties should continue to  
          have the ability to opt into the program.

          The California Grocers Association supports making the current  
          POS law permanent, stating that the criteria and methodology  
          established in 2005 has worked effectively for the last eight  
          years and supports removing the sunset date from the existing  
          law.


          MW:d  4/15/13   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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