BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          AB 296 (Dodd) - Weights and measures:  inspection:  fees.
          
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          |Version: February 12, 2015      |Policy Vote: B., P. & E.D. 9 -  |
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          |Urgency: No                     |Mandate: No                     |
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          |Hearing Date: June 29, 2015     |Consultant: Mark McKenzie       |
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          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  







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            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  








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          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.









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