BILL ANALYSIS                                                                                                                                                                                                    Ó




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          |SENATE RULES COMMITTEE            |                        AB 296|
          |Office of Senate Floor Analyses   |                              |
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                                       CONSENT


          Bill No:  AB 296
          Author:   Dodd (D)
          Introduced:2/12/15  
          Vote:     21  

           SENATE BUS, PROF. & ECON. DEV. COMMITTEE:  9-0, 6/8/15
           AYES:  Hill, Bates, Berryhill, Block, Galgiani, Hernandez,  
            Jackson, Mendoza, Wieckowski

           SENATE APPROPRIATIONS COMMITTEE:  6-0, 6/29/15
           AYES:  Lara, Beall, Hill, Leyva, Mendoza, Nielsen
           NO VOTE RECORDED:  Bates

           ASSEMBLY FLOOR:  74-0, 4/9/15 - See last page for vote

           SUBJECT:   Weights and measures:  inspection:  fees


          SOURCE:    Author


          DIGEST:  This bill extends the authority of the Board of  
          Supervisors of a county and the State Department of Food and  
          Agriculture (DFA) 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.


          ANALYSIS:   


          Existing law:


          1) Requires the Sealer of a county to inspect and test weighing  








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             and measuring devices, as specified, that are used or sold in  
             the county.  (Business and Professions Code (BPC) § 12210)



          2) Requires the Sealer of a county to weigh or measure packages  
             to determine whether they contain the amount represented, as  
             provided.  (BPC § 12211)



          3) Authorizes, until January 1, 2016, the Board of Supervisors  
             of a county, by ordinance, to charge fees, not to exceed the  
             county's total cost of actually inspecting or testing  
             weighing and measuring devices required of the County Sealer,  
             to recover the costs of the County Sealer to perform these  
             duties. 


          (BPC § 12240)

          4) Requires, until January 1, 2016, the DFA Secretary to  
             establish by regulation an annual administrative fee to  
             recover reasonable administrative and enforcement costs  
             incurred by the DFA for exercising supervision over and  
             performing investigations in connection with the activities  
             performed by Sealers described above, and requires the  
             administrative fee to be collected for every device  
             registered with each county office of weights and measures  
             and paid annually to the DFA.  (BPC § 12241)





          This bill extends the authority of a County Board of Supervisors  
          and the DFA to charge fees to recover the County Sealer's costs  
          related to the inspection and testing of weighing and measuring  
          devices, from January 1, 2016, to January 1, 2019.











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          Background





          County Sealers.  The inspection and testing of weighing and  
          measuring devices is overseen by a County Sealer of Weights and  
          Measures.  Historically, these Sealers have been responsible for  
          ensuring that 'equity prevails' in the marketplace and that  
          consumers reliably get precisely what they paid for.  As such,  
          these Sealers and their offices enforce the laws and regulations  
          of the state under the general direction and oversight of the  
          DFA Secretary.  In practice, this oversight involves the  
          inspection and testing of packaged commodities and all  
          commercially-used weighing and measuring devices.   

          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.  That program and the related fee authorization have  
          been amended many times since then to add new devices to the  
          registration program and adjust the schedule of maximum fees in  
          statute.  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, mostly recently by AB 1623 (Yamada, Chapter 234,  
          Statutes of 2012).  It is important to note that this same  
          authorization also permits the DFA 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  








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          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.
          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:YesLocal:   No

          According to the Senate Appropriations Committee:
          
           Continued DFA administrative fee revenues of approximately  
            $800,000 annually through the 2018 calendar year ($650,000  
            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)


          SUPPORT:   (Verified7/1/15)


          California Agricultural Commissioners and Sealers Association  
          (source)
          California State Association of Counties
          City and County of San Francisco and Mayor Edwin Lee
          County of Santa Clara 
          County of Ventura 
          Placer County Board of Supervisors
          Rural County Representatives of California


          OPPOSITION:   (Verified7/1/15)


          None received

          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  








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          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."

          ASSEMBLY FLOOR:  74-0, 4/9/15
          AYES:  Achadjian, Alejo, Baker, Bigelow, Bloom, Bonilla, Bonta,  
            Brown, Burke, Campos, Chau, Chávez, Chiu, Chu, Cooley, Cooper,  
            Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Gallagher,  
            Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez,  
            Gonzalez, Gordon, Gray, Grove, Hadley, Harper, Roger  
            Hernández, Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey,  
            Levine, Linder, Lopez, Low, Maienschein, Mathis, Mayes,  
            McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte, Olsen,  
            Patterson, Perea, Quirk, Rendon, Ridley-Thomas, Rodriguez,  
            Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting,  
            Wagner, Waldron, Weber, Wilk, Williams, Wood, Atkins
          NO VOTE RECORDED:  Travis Allen, Brough, Calderon, Chang, Beth  
            Gaines, O'Donnell


          Prepared by:Mark Mendoza / B., P. & E.D. / (916) 651-4104
          7/2/15 14:16:04


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