BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     AB 296


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          Date of Hearing:  March 17, 2015


                ASSEMBLY COMMITTEE ON PRIVACY AND CONSUMER PROTECTION


                                    Gatto, Chair


          AB  
                     296 (Dodd) - As Introduced  February 12, 2015


          SUBJECT:  Weights and measures:  inspection:  fees


          SUMMARY:  Extends the authority of the board of supervisors of a  
          county and the state Department of Food and Agriculture  
          (Department) to charge fees to recover the costs of the County  
          Sealer related to the inspection and testing of weighing and  
          measuring devices, from January 1, 2016, to January 1, 2019.


          EXISTING LAW:   


          1)Requires the sealer of a county to inspect and test weighing  
            and measuring devices, as specified, that are used or sold in  
            the county. (Business and Professions Code (BPC) Section  
            12210)



          2)Requires the sealer of a county to weigh or measure packages  
            to determine whether they contain the amount represented, as  
            provided. (BPC 12211)

          3)Authorizes, until January 1, 2016, the board of supervisors of  
            a county, by ordinance, to charge fees, not to exceed the  
            county's total cost of actually inspecting or testing weighing  
            and measuring devices required of the county sealer, to  
            recover the costs of the county sealer to perform these  








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            duties.  (BPC 12240)





          4)Requires, until January 1, 2016, the Department Secretary to  
            establish by regulation an annual administrative fee to  
            recover reasonable administrative and enforcement costs  
            incurred by the Department for exercising supervision over and  
            performing investigations in connection with the activities  
            performed by sealers described above, and requires the  
            administrative fee to be collected for every device registered  
            with each county office of weights and measures and paid  
            annually to the Department of Food and Agriculture Fund. (BPC  
            12241)
          FISCAL EFFECT:  Unknown


          COMMENTS:  


          1)Purpose of this bill  .  This bill would extend by three years  
            the fee authorization for counties and the state Department of  
            Food and Agriculture to recoup their costs for the inspection  
            and testing of weighing and measuring devices by county  
            sealers, a program that has been ongoing since 1982.  The  
            measure is sponsored by the California Agricultural  
            Commissioners and Sealers Association. 



           2)Author's statement  . According to the author's office, "This  
            bill would extend a statutory sunset date of AB 1623 (Yamada,  
            2012) which is set to expire on January 1, 2016. AB 296  
            extends the sunset through to January 1, 2019.  This will  
            allow local governments to continue to recover costs  
            associated with the administration of the annual device  
            registration program.  Accurate measurements are vital to  
            protecting consumers from fraudulent and inadvertent errors.  
            Precise scales allow consumers to make informed decisions  
            about their purchases while maintaining a level and  








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            competitive marketplace for businesses."



           3)County Sealers  .  The inspection and testing of weighing and  
            measuring devices is overseen by a County Sealer of Weights  
            and Measures.  Historically, these Sealers have been  
            responsible for ensuring that 'equity prevails' in the  
            marketplace and that consumers reliably get precisely what  
            they paid for.  As such, these Sealers and their offices  
            enforce the laws and regulations of the state under the  
            general direction and oversight of the Department Secretary.   
            In practice, this oversight involves the inspection and  
            testing of packaged commodities and all commercially-used  
            weighing and measuring devices.   

          In order to help pay for the cost of the inspection and testing  
            program, legislation was passed in 1982 to authorize county  
            boards of supervisors to establish fees for business locations  
            to partially fund local weights and measures enforcement  
            programs.  That program and the related fee authorization have  
            been amended many times since then to add new devices to the  
            registration program and adjust the schedule of maximum fees  
            in statute.  The program now applies to virtually all weighing  
            and measuring devices used commercially (such as gas pumps,  
            water meters, grocery scales, taxi meters, etc.), with the  
            exception of farm milk tanks and grocery store check-out  
            scanners. In 2012-13, the device registration program had  
            expenditures of $23.1 million statewide.

          These fees are the single largest source of revenue for the  
            county program outside of the County General Fund, and the  
            authorization has been extended by statute nine separate times  
            since 1985, mostly recently by AB 1623 (Yamada) in 2012.  It  
            is important to note that this same authorization also permits  
            the Department to establish by regulation an administrative  
            fee to recover costs incurred for supervision and  
            investigation of the same program. However, this bill does not  
            change any of the "fee caps" for location fees, specific  
            device fees, and total registration fees, which are usually  
            negotiated between the counties and the businesses affected  
            and then codified in statute.  The fee authorization statute  








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            is currently set to expire on January 1, 2016. 

           4)Arguments in support  .  According to the Rural County  
            Representatives of California (RCRC), "County Agriculture  
            Commissioners and Sealers perform valuable services for county  
            residents and those within the local agriculture industry.   
            For example, one of those roles is ensuring that actual  
            weights and sizes are accurate.  Weighing and measuring  
            devices must be inspected in a timely manner so that consumers  
            are protected against unscrupulous business operators. 



          "In order to perform the much-needed services, County  
            Agriculture Commissioners must recover their costs. Thus, we  
            believe it appropriate that Boards of Supervisors continue to  
            be able to adopt fee schedules so that a county's costs can be  
            recovered, while at the same time balancing the needs of  
            industry with the protections of consumers."



           5)Previous legislation  . 6)AB 1623 (Yamada), Chapter 234,  
            Statutes of 2012, extended the sunset date on the county board  
            of supervisor's authority to charge fees to recover the costs  
            of the County Sealer to perform specified inspections until  
            January 1, 2016, and established or revised certain device fee  
          caps.7)

          AB 2361 (Ruskin), Chapter 260, Statutes of  
            2010,8) extended the sunset date on the authority of the board  
            of supervisors of a county to charge fees to recover the costs  
            of the county sealer to perform specified duties until January  
            1, 2013.



            AB 889 (Ruskin), Chapter 529, Statutes of 2005, extended the  
            sunset date to January 1, 2011, and established a gradual  
            increase in the fees that may be adopted by a board of  
            supervisors in order to more fully fund the local weights and  
            measure device inspection program.  The bill also established  








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            a two-tiered fee schedule that provided both a location fee  
            and a device fee to more effectively capture the cost of the  
            initial device inspection.

            AB 1810 (Wiggins), Chapter 512, Statues of 2000, extended the  
            sunset dates on the civil penalty authority and on device  
            registration fees to January 1, 2006.





            SB 189 (Kelley), Chapter 476, Statutes of 1997, extended the  
            sunset date of the fee authorization to January 1, 2001.

            AB 1728 (Murray), Chapter 47, Statutes of 1995, extended the  
            sunset date of the fee authorization to January 1, 1998.

            SB 1644 (Kelley), Chapter 592, Statutes of 1994, established  
            the current administrative fine provisions for weights and  
          measures.   


          REGISTERED SUPPORT / OPPOSITION:


          Support


          California Agricultural Commissioners and Sealers Association  
          (Sponsor)
          California State Association of Counties
          Rural County Representatives of California



          Opposition


          None received. 










                                                                     AB 296


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          Analysis Prepared  
          by:              Hank Dempsey/P. & C.P./(916) 319-2200