BILL ANALYSIS Ó AB 296 Page 1 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 Page 2 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 Page 3 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 Page 4 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