BILL ANALYSIS �
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|Hearing Date:June 20, 2011 |Bill No:AB |
| |1181 |
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SENATE COMMITTEE ON BUSINESS, PROFESSIONS
AND ECONOMIC DEVELOPMENT
Senator Curren D. Price, Jr., Chair
Bill No: AB 1181Author:Butler
As Amended:May 10, 2011 Fiscal: Yes
SUBJECT: Weights and measures.
SUMMARY: When a commodity is sold based upon a quantity represented
by the purchaser or by using the purchaser's equipment, this bill
would prohibit the purchaser from paying the seller less than the
highest applicable price posted for that commodity.
Existing law:
1)Provides that the Division of Measurement Standards (DMS) within the
Department of Food and Agriculture (DFA) has general enforcement
supervision of the laws relating to weights and measures and
measuring devices, and provides for the enforcement of those laws
and the inspection and testing of measuring devices in each county
by the county sealer.
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 less
than the true quantity. (BPC � 12512)
3)Makes violations of Item #2 above, a misdemeanor (crime). (BPC �
12512)
4)Defines, for purposes of weighing and measuring devices, the term
"service agency" to mean any person, firm, corporation or
association that for payment of any kind repairs a commercial
device. (BPC � 12531)
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5)Prohibits any person from acting as a service agency unless they are
registered with the Secretary of Food and Agriculture and meet
specified requirements including the payment of a fee. (BPC �
12532)
This bill:
1)Additionally prohibits a purchaser from computing the purchase price
of the commodity according to a unit price that is less than the
highest applicable price posted for that commodity.
2)Makes technical corrections and related conforming changes including
revising references to "registered repairman" to instead refer to a
registered service agency.
FISCAL EFFECT: The Assembly Appropriations Committee analysis dated
May 18, 2011, indicates potential minor non-reimbursable local costs
for investigation and prosecution of violations, potentially offset by
fine revenue.
COMMENTS:
1.Purpose. This bill is sponsored by California Agricultural
Commissioners and Sealers Association (CACSA) to help weights and
measures officials protect consumers when the sale of a commodity,
or the redemption of a refund of a commodity, such as a CRV
recyclable beverage containers, is based upon a quantity determined
by the recycler who purchases the items from a member of the public.
Specifically, this measure 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.
2.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 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.
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The Business and Professions 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 Food and Agriculture, enforces the laws and
regulations. These enforcement programs protect and promote the
local economy and commerce of each county.
3.Arguments in Support. In sponsoring the bill, the CACSA writes:
"County weights and measures officials serve all consumers as the
local regulatory agency authorized to enforce the California
Business & Professions Code and California Code of Regulations
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. Currently, 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 current
language related to the underpayments addresses underpayments traced
to the misrepresentation of weight or volume of the commodity, not
the actual monies remitted. The proposal will ensure that consumers
are paid the correct refund that is being advertised by the
retailer."
4.Possible Clarifying Amendment: "posted price." In requiring a
recycler to give the seller the full value for the items being sold,
the bill refers to "the highest applicable price posted for the
commodity." It has been pointed out that there is no specification
as to where or how the price is "posted." The Author and Sponsors
may wish to consider clarifying the bill to refer to the "the
highest applicable price for the commodity at the location of the
sale."
5.Recommended Technical Amendment. Committee staff recommends the
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following technical conforming amendment. On page 2, line 22,
strike out "repairman" and insert: "service agency."
SUPPORT AND OPPOSITION:
Support: California Agricultural Commissioners and Sealers
Association (Sponsor)
Opposition: None on file as of June 15, 2011
Consultant:G. V. Ayers