BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                       AB 296


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          ASSEMBLY THIRD READING


          AB  
          296 (Dodd)


          As Introduced  February 12, 2015


          Majority vote


           ------------------------------------------------------------------- 
          |Committee         |Votes|Ayes                  |Noes               |
          |                  |     |                      |                   |
          |                  |     |                      |                   |
          |------------------+-----+----------------------+-------------------|
          |Privacy           |10-0 |Gatto, Wilk, Baker,   |                   |
          |                  |     |Calderon, Chau,       |                   |
          |                  |     |Cooper, Dababneh,     |                   |
          |                  |     |Dahle, Gordon, Low    |                   |
          |                  |     |                      |                   |
          |------------------+-----+----------------------+-------------------|
          |Appropriations    |15-0 |Gomez, Bigelow,       |                   |
          |                  |     |Bonilla, Bonta,       |                   |
          |                  |     |Calderon, Daly,       |                   |
          |                  |     |                      |                   |
          |                  |     |                      |                   |
          |                  |     |Eduardo Garcia,       |                   |
          |                  |     |Eggman, Gallagher,    |                   |
          |                  |     |Holden, Quirk,        |                   |
          |                  |     |Rendon, Wagner,       |                   |
          |                  |     |Weber, Wood           |                   |
          |                  |     |                      |                   |
          |                  |     |                      |                   |
           ------------------------------------------------------------------- 










                                                                       AB 296


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          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.
          FISCAL  
        EFFECT:1.  According to the Assembly Appropriations Committee, 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 $0.10 (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.


          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 of this bill.  This bill would extend by three years the  
            fee authorization for counties and the Department 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  








                                                                       AB 296


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            bill would extend a statutory sunset date of AB 1623 (Yamada,  
            [Chapter 234, Statutes of] 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 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.  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.  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, most recently by AB 1623.  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 is currently  
            set to expire on January 1, 2016. 









                                                                       AB 296


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          4)Arguments in support.  According to the Rural County  
            Representatives of California, "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."


            There is no opposition on file.




          Analysis Prepared by:                                               
                          Hank Dempsey / P. & C.P. / (916) 319-2200  FN:  
          0000087