BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 296| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- 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 AB 296 Page 2 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. AB 296 Page 3 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 AB 296 Page 4 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 AB 296 Page 5 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 **** END ****