BILL ANALYSIS Ó AB 296 Page 1 Date of Hearing: March 25, 2015 ASSEMBLY COMMITTEE ON APPROPRIATIONS Jimmy Gomez, Chair AB 296 (Dodd) - As Introduced February 12, 2015 ----------------------------------------------------------------- |Policy |Privacy and Consumer |Vote:|10 - 0 | |Committee: |Protection | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: NoReimbursable: No SUMMARY: This bill extends the authority of a county board of supervisors and the state Department of Food and Agriculture (Department) to charge fees to recover the county sealer's costs related to the inspection and testing of weighing and measuring devices, from AB 296 Page 2 January 1, 2016, to January 1, 2019. FISCAL EFFECT: 1.Absent a sunset extension on the fee authority, the state would incur costs of approximately $650,000 to cover the Department's oversight functions. The Department collected approximately $650,000 in 2013-14 to cover its costs of supervision, investigation, and enforcement of the county programs. The fee is an annual, per-device fee that ranges from $.10 (submeters) to $12.00 (scales greater than 10,000 pounds capacity) depending on the type of device. The majority of devices are charged $1.10. 1.Counties collected $23.1 million in fee revenue statewide in 2012-13 to defray their costs of the device registration program. Existing law prohibits a county from charging fees that exceed its total cost of performing the required county sealer duties. Absent a sunset extension on the fee authority, counties would be required to fund this program from other sources, most likely county general fund. COMMENTS: 1.Purpose. This bill allows counties and the Department to continue to charge fees to recover the costs of the county sealer device inspecting and testing programs by extending the sunset date for three years. The bill does not change any fees or fee caps. AB 296 Page 3 2.Background. Inspection and testing of weighing and measuring devices is overseen in each county by the County Sealer of Weights and Measures. In practice, this function involves the inspection and testing of packaged commodities and all commercially-used weighing and measuring devices, including gas pumps, water meters, grocery scales, taxi meters, among many others. Sealers and their offices enforce the laws and regulations of the state under the general direction and oversight of the Secretary of Food and Agriculture. Sealers protect both consumers and businesses by ensuring that consumers reliably get what they pay for, and that businesses are competing fairly. In 1982, the Legislature authorized county boards of supervisors to establish fees to partially fund local weights and measures enforcement programs. Over time, the program has been amended to add new devices to the registration program and to adjust the schedule of maximum fees. Based on the maximum fee schedule, each county and its affected businesses negotiate specific fees and adopt them by local ordinance. This authorization has been extended by statute nine times since 1985, most recently by AB 1632 (Yamada) in 2012, and is set to expire on January 1, 2016. 3.Previous legislation. a) 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. AB 296 Page 4 b) AB 2361 (Ruskin), Chapter 260, Statutes of 2010, 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 until January 1, 2013. c) 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 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. Analysis Prepared by:Jennifer Swenson / APPR. / (916) 319-2081