BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1181
                                                                  Page  1

          Date of Hearing:   April 26, 2011

              ASSEMBLY COMMITTEE ON BUSINESS, PROFESSIONS AND CONSUMER 
                                     PROTECTION
                                 Mary Hayashi, Chair
                 AB 1181 (Butler) - As Introduced:  February 18, 2011
           
          SUBJECT  :   Weights and measures.

           SUMMARY  :   Provides that it is unlawful for any person, firm, 
          corporation, or association to advertise, publish, post, or make 
          by any means whatsoever, any deceptive, false, or misleading 
          statement regarding the quantity, purchase, or selling price, or 
          condition of sale or purchase of a product that is offered or 
          solicited for sale or purchase.  Specifically,  this bill  :

          1)Provides that it is unlawful for any person, firm, 
            corporation, or association to advertise, publish, post, or 
            make by any means whatsoever, any deceptive, false, or 
            misleading statement regarding the quantity, purchase, or 
            selling price, or condition of sale or purchase of a product 
            that is offered or solicited for sale or purchase. 

          2)Prohibits the purchase of a commodity according to any 
            quantity which is less than the true quantity or computing the 
            purchase price of the commodity according to a unit price that 
            is less than the highest applicable posted for the commodity.

          3)Makes technical, clarifying changes.

           EXISTING LAW  :

          1)Makes it a crime for a person, firm, corporation, or 
            association to advertise, solicit, or represent by any means a 
            product for sale or purchase if it is intended to entice a 
            consumer into a transaction different from that originally 
            represented.  

          2)Provides that when the sale of any commodity is based upon a 
            quantity representation either furnished by the purchaser or 
            obtained through the use of equipment supplied by the 
            purchaser, the purchaser is prohibited from buying the 
            commodity according to any quantity which is less than the 
            true quantity.









                                                                  AB 1181
                                                                  Page  2

           FISCAL EFFECT  :   Unknown

           COMMENTS  :  

           Purpose of this bill  .  According to the author's office, 
          "Currently, there is no requirement that a recycling center 
          provide a customer receipt on a recycling transaction.  
          Consequently, a customer may be paid less than they are entitled 
          without them being aware.  This amendment removes the need to 
          establish "intent" to deceive or mislead and makes any false or 
          misleading statements about the sale or purchase of a product 
          which changes this to a strict liability violation.  The 
          advertiser of a commodity or service is legally responsible for 
          offering the product or service at the applicable price that is 
          advertised.

          "Also, if the weight is correct but the refund is less than the 
          posted price should compute, we have no clear violation. The 
          proposal will ensure that consumers are paid the correct refund 
          for the deposit they paid on a beverage container and return it 
          whether it is the weight or the price computed that is 
          incorrect."

           Background .  In California, Agricultural Commissioners and 
          Sealers of Weights and Measures are appointed in each of 
          California's 58 counties by respective County Board of 
          Supervisors. County Agricultural Commissioners and Sealers work 
          cooperatively with the California Department of Food and 
          Agriculture, California Environmental Protection Agency and the 
          Department of Pesticide Regulation to provide protections to 
          consumers, the environment, the agricultural industry, and to 
          the marketplace.

          The California Business and Professions Code (B&P Code) 
          establishes a County Sealer of Weights and Measures in each 
          county.  Historically, it has been the primary objective of 
          weights and measures officials to ensure that "equity prevails" 
          in the marketplace.  To achieve that objective each county, 
          under the general direction and oversight of the Secretary of 
          Agriculture, enforces the laws and regulations of the B&P Code 
          and the California Code of Regulations (CCR). These enforcement 
          programs protect and promote the local economy and commerce of 
          each county.

           Support  .  The California Agricultural Commissioners and Sealers 








                                                                  AB 1181
                                                                  Page  3

          Association, the sponsor of this bill, writes in support, 
          "County weights and measures officials serve all consumers as 
          the local regulatory agency authorized to enforce the B&P Code 
          and CCR pertaining to issues of 'Equity in the Marketplace.'  
          This enforcement efficiently and effectively protects local 
          commerce, thus encouraging stability in the state's economy.  
          Sealers annually perform thousands of inspections on various 
          commercial devices, check packages for net content, review 
          weighmaster records for accuracy, provide training and education 
          to businesses and individuals.

          "AB 1181 was introduced in response to the discovery of 
          underpayments occurring during transactions between consumers 
          and recycling centers.  Currently, there is no requirement that 
          a recycling center provide a customer receipt on recycling 
          transactions.  Consequently, a customer may be paid less than 
          they are entitled without them being aware.  However, AB 1181 
          removes the need to establish 'intent' to deceive or mislead and 
          makes any false or misleading statements about the sale or 
          purchase of any product which changes these transactions to a 
          strict liability standard and violation.  The advertiser of a 
          commodity or service is legally responsible for offering the 
          product or service at the applicable price that is advertised.

          "Additionally, if the weight of the commodity is deemed correct 
          but the refund is less than the posted price should compute, the 
          County Sealer is challenged to identify a clear violation under 
          the current code.  The proposal will also ensure that consumers 
          are paid the correct refund that is being advertised by the 
          retailer."

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          California Agricultural Commissioners & Sealers Association

           Opposition 
           
          None on file.
           
          Analysis Prepared by  :    Rebecca May / B.,P. & C.P. / (916) 
          319-3301 










                                                                  AB 1181
                                                                  Page  4