BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session AB 296 (Dodd) - Weights and measures: inspection: fees. ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: February 12, 2015 |Policy Vote: B., P. & E.D. 9 - | | | 0 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: June 29, 2015 |Consultant: Mark McKenzie | | | | ----------------------------------------------------------------- This bill does not meet the criteria for referral to the Suspense File. Bill Summary: AB 296 would extend the authorization for county boards of supervisors and the California Department of Food and Agriculture (CDFA) to charge specified fees related to the inspection and testing of weighing and measuring devices, and the administration and oversight of those activities, as specified, until January 1, 2019. Fiscal Impact: Continued CDFA administrative fee revenues of approximately $800,000 annually through the 2018 calendar year ($650,000 AB 296 (Dodd) Page 1 of ? deposited into the Food and Agriculture Fund; $150,000 retained at the county level). Continued county fee revenues of approximately $24 million annually through the 2018 calendar year. (local funds) 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. Existing law authorizes a county board of supervisors to charge an annual registration fee to recover county sealer costs of testing and inspection of weighing and measuring devices. The registration fee must not exceed a county's actual testing and inspection costs, and it is comprised of a business location fee, a CDFA administrative fee, and a device fee, as specified. Existing law prescribes a fee schedule that establishes maximum fee amounts that may be charged for specified device registrations including retail gas pump meters, livestock and feed scales, motor truck scales, utility meters and submeters, liquefied petroleum gas meters, vehicle meters and odometers, and all other commercial weighing and measuring devices, and makes specified exceptions. According to CDFA's most recent expenditure report for weights and measures activities, counties collected approximately $24 million to test nearly 1.4 million weights and measures devices in 2013-14. As part of a broad strategy to reduce CDFA's General Fund expenditures by $15 million, AB 120 (Budget Committee), Chap 133/2011, implemented several proposals to reduce the scope of certain programs within the department, and shift costs to special funds, assessments, and fees. One provision of AB 120 authorized CDFA to charge an annual administrative fee on every device registered with county offices of weights and measures to recover administrative and enforcement costs related to county AB 296 (Dodd) Page 2 of ? sealers' inspection and testing of devices. Depending on the device, the per-device CDFA administrative fee ranges from $0.10 for certain submeter devices to $12.00 for large scales with a capacity of over 10,000 pounds, but the fee is $1.10 for most devices. Counties retain 15 percent of the revenues from the fee to cover their administrative costs, and the remaining 85 percent is deposited into the state Food and Agriculture Fund. Existing law repeals the authority to charge weighing and measuring device registration fees, including the CDFA administrative fee, on January 1, 2016. Proposed Law: AB 296 would extend the repeal date on the authority for county boards of supervisors and CDFA to charge specified fees related to the inspection and testing of weighing and measuring devices, and the administration and oversight of those activities, from January 1, 2016 to January 1, 2019. Related Legislation: Fee authorization statutes have been extended through legislation nine times since the Legislature originally authorized county boards of supervisors to charge fees to partially fund local weights and measures enforcement programs in 1982. Most recently, AB 1623 (Yamada), Chap 234/2012 extended the repeal date on the authority for counties to charge fees to recover costs for testing and inspection of weighing and measuring devices from January 1, 2013 to January 1, 2016. That bill also established and revised the caps on certain device fees. Staff Comments: Absent this bill, CDFA's administrative costs to operate the Device Enforcement Program would become a General Fund liability, and counties would need to cover costs of testing and inspecting weighing and measuring devices with general revenues or discontinue activities. AB 296 (Dodd) Page 3 of ? -- END --