BILL ANALYSIS �
AB 2589
Page 1
Date of Hearing: April 30, 2014
ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
K.H. "Katcho" Achadjian, Chair
AB 2589 (Bloom) - As Amended: April 21, 2014
SUBJECT : Weights and measures: county sealers: county
ordinance: annual registration fee.
SUMMARY : Allows counties to charge an annual registration fee
to businesses that handle more than 10,000 packages or
containers per year to recover costs of weighing and measuring
packages, containers, or amounts of commodities sold, or in the
process of delivery. Specifically, this bill :
1)Allows any county board of supervisors, by ordinance, to
charge an annual registration fee, not to exceed $640, in
order to recover the county's actual costs of carrying out
existing law governing the requirements of county sealers to
weigh or measure packages, as specified.
2)Requires any registration fee adopted pursuant to 1), above,
to be charged to a business location operating in the county
that packs, imports, warehouses, or distributes more than
10,000 packages or containers per year that intends to sell or
distribute for sale those packages or containers.
3)Defines "business location" to mean a business location that
packs, imports, warehouses, or distributes one or more types
of packaged goods or commodities.
4)Requires any ordinance imposing a registration fee pursuant to
1), above, to exempt any person or entity operating a business
location at which both retail sales and commodity packing
operations are conducted if the retail sales activities
constitute the significant majority of its business
operations.
EXISTING LAW :
1)Requires the sealer of a county to inspect and test weighing
and measuring devices that are used or sold in the county, as
specified.
2)Requires each county sealer, from time to time, to weigh or
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measure packages, containers, or amounts of commodities sold,
or in the process of delivery, in order to determine whether
they contain the quantity or amount represented and whether
they are being sold in accordance with law.
3)Allows a county board of supervisors, by ordinance, to charge
an annual registration fee, not to exceed the county's total
cost of actually inspecting or testing the devices as required
by law, to recover the costs of inspecting or testing weighing
and measuring devices required of the county sealer pursuant
existing law, and to recover the cost of carrying out 2),
above.
4)Specifies that the annual registration fee for a business that
uses a commercial weighing or measuring device or devices
shall consist of a location fee, a Department of Food and
Agriculture administrative fee, and a device fee, pursuant to
a list of applicable fees for specified weighing and measuring
devices.
5)Provides that for all other commercial weighing or measuring
devices not listed, the device fee shall not exceed $20 per
device, and the registration fee shall not exceed the sum of
$1,000 for each business location.
FISCAL EFFECT : None
COMMENTS :
1)Purpose of this bill . This bill allows counties to pass an
ordinance to charge an annual registration fee of up to $640
to fund package inspection programs for business locations
that pack, import, warehouse, or distribute more than 10,000
packages or containers per year. The bill contains an
exemption for businesses whose principal activity is retail
consumer transactions. This bill is sponsored by the
California Agricultural Commissioners and Sealers Association
(CACASA).
2)Author's statement . According to the author, "Currently,
county sealers inspect facilities with commercial scales, such
as grocery stores, to make sure their measuring devices are
accurate and their products match their labeled contents.
Sealers are able to do these inspections because of a local
annual fee on these businesses.
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"While existing law allows partial reimbursement for package
inspection activity that is linked to commercial weighing and
measuring device registration fees in counties that have
enacted a registration ordinance, it does not allow for
reimbursement for costs of inspecting packages at facilities
that do not employ commercial weights and measures devices to
which device registration fees would apply. Many large
commercial manufacturing and warehouse facilities distribute
and package products based on weight and quantity, but do not
possess commercial weighing and measuring devices due to the
absence of consumer retail activity on the premises.
Therefore, local governments have no means to fund inspections
of this universe of facilities?leaving (them) largely
unregulated."
3)Background . Current law allows county boards of supervisors
to establish fees for business locations to fund local weights
and measures enforcement programs. The fees are the single
largest source of revenue for the county program outside the
County General Fund.
The authority for weights and measures registration fees was
passed by the Legislature in 1982 to provide funding for
weights and measures inspection activities. The law has been
amended multiple times to add additional devices to the
registration program and to adjust the schedule of maximum
fees. The law now applies to virtually all weighing and
measuring devices used commercially. The only exceptions are
farm milk tanks, which are specifically exempted, and
check-out scanners, which are not considered weighing or
measuring devices.
According to CACASA, the sponsor of this bill, four counties
have enacted ordinances allowing fees for inspections of the
facilities described in this bill: Riverside County, San
Bernardino County, Santa Barbara County, and Ventura County.
However, CACASA has traditionally interpreted state law
authorizing fees as being dependent on the presence of a
commercial weighing or measuring device or devices at the
business location being inspected. Therefore, a business
location that uses no commercial weighing or measuring device
cannot be subject to a fee, according to this interpretation.
This bill is being sought to clarify in statute that counties
may charge a fee to support inspection activities in business
locations that process more than 10,000 packages a year,
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regardless of whether the business location uses commercial
weighing or measuring devices in its operations.
4)Committee amendment . In order to limit the bill to the
intended scope of facilities (those that handle more than
10,000 packages or containers per year), the Committee may
wish to consider the following amendment:
On page 2, in line 13, after "shall be charged" insert
"only"
5)Previous legislation . AB 1623 (Yamada), Chapter 234, Statutes
of 2012, extended the authority of a county board of
supervisors to charge fees to recover the costs of the county
sealer until January 1, 2018, and established or revised a
number of device fee caps.
AB 2361 (Ruskin), Chapter 260, Statutes of 2010, extended the
sunset date on the authority of a county board of supervisors
to charge fees to recover the costs of the county sealer to
perform specified duties until January 1, 2013.
AB 889 (Ruskin), Chapter 529, Statutes of 2005, extended the
authority for county sealers to levy civil penalties for
violations in lieu of criminal prosecution; extended the
sunset on the authority for counties to charge annual
registration and device fees until January 1, 2011; updated
and revised the fee schedule levels; and, established, until
January 1, 2009, the authority for counties to inspect the
pricing accuracy of retail point of sale systems.
AB 1810 (Wiggins), Chapter 512, Statutes of 2000, extended the
sunset dates granting authority for civil penalties and device
registration fees relating to weights and measures.
SB 189 (Kelley), Chapter 476, Statutes of 1997, extended the
sunset date on the authority of a county board of supervisors
to charge fees to recover the costs of the county sealer to
perform specified duties until to January 1, 2001.
AB 1728 (Murray), Chapter 47, Statutes of 1995, extended the
sunset date on the authority of a county board of supervisors
to charge fees to recover the costs of the county sealer to
perform specified duties until January 1, 1998.
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AB 2987 (Cramer), Chapter 1380, Statutes of 1982, established
fee collection authority for weights and measures programs on
a county by county basis.
6)Arguments in support . CACASA, the sponsor of this bill,
states, "Existing law allows a funding mechanism to partially
reimburse local governments for package inspection activity
that is linked to commercial weighing and measuring device
fees. If an establishment does not possess or employ a
commercial weighing or measuring device, there would be no
funding source to address package quantity accuracy at these
locations, leaving them largely unregulated.
"Ensuring that the represented weight, count or measure of
product within a package is being delivered to consumers and
purchasers is one of the most fundamental and critical
components of a fair and equitable marketplace. The consumer
deserves to trust the contents label on their product and
should be entitled to 'get what they pay for.'"
7)Arguments in opposition . Opponents write, "The registration
(fee required by this bill) could vary dramatically from
county to county and manufacturers could be charged multiple
times as product is shipped throughout the state. Consumers
in California are protected by a variety of Federal and State
specific statutes regulating the labeling and packaging of
products?County weights and measures inspections are routinely
conducted at the retail level. Assembly Bill 2589 could
result in a package being inspected (and fees charged for such
an inspection) in multiple locations?In addition, products
manufactured in California may be intended for sale in other
states and countries. AB 2589 could result in the imposition
of an inspection fee on those packages.
"It is inappropriate for county sealers to profit from the
imposition (of) a fee on packages intended for sale outside
California. Likewise, many products sold in California are
not manufactured in the state, and would not be subject to
these inspections creating yet another disadvantage to doing
business in California."
REGISTERED SUPPORT / OPPOSITION :
Support
AB 2589
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California Agricultural Commissioners and Sealers Association
[SPONSOR]
Consumer Federation of California
Regional County Representatives of California
Opposition
American Coatings Association
American Wood Council
Cal Chamber
California League of Food Processors
California Manufacturers & Technology Association
California Paint Council
Consumer Specialty Products Association
Grocery Manufacturers Association
National Federation of Independent Business
Personal Care Products Council
Toy Industry Association
West Coast Lumber & Building Material Association
Western Plant Health Association
Western Wood Preserver's Institute
Analysis Prepared by : Angela Mapp / L. GOV. / (916) 319-3958