Existing law requires the sealer of a county to inspect and test weighing and measuring devices, as specified, that are used or sold in the county. Existing law also requires the sealer of a county to weigh or measure packages to determine whether they contain the amount represented, as provided. Existing law, until January 1, 2016, authorizes the board of supervisors of a county, by ordinance, to charge fees, not to exceed the countys 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. Existing law, until January 1, 2016, requires the Secretary of Food and Agriculture to establish by regulation an annual administrative fee to recover reasonable administrative and enforcement costs incurred by the Department of Food and Agriculture 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 Department of Food and Agriculture Fund.

This bill would extend the authority of the board of supervisors of a county to charge fees to recover the costs of the county sealer, as provided, until January 1, 2019, and would extend certain other related provisions. The bill would also continue the annual administrative fee to recover the costs incurred by the department described above until January 1, 2019.

Existing law requires the sealer of a county to inspect and test weighing and measuring devices, as specified, that are used or sold in the county. Existing law also requires the sealer of a county to weigh or measure packages to determine whether they contain the amount represented, as provided. Existing law, until January 1, 2016, authorizes the board of supervisors of a county, by ordinance, to charge fees, not to exceed the countys 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. Existing law, until January 1, 2016, requires the Secretary of Food and Agriculture to establish by regulation an annual administrative fee to recover reasonable administrative and enforcement costs incurred by the Department of Food and Agriculture 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 Department of Food and Agriculture Fund.

This bill would extend the authority of the board of supervisors of a county to charge fees to recover the costs of the county sealer, as provided, until January 1, 2019, and would extend certain other related provisions. The bill would also continue the annual administrative fee to recover the costs incurred by the department described above until January 1, 2019.

Existing law requires the sealer of a county to inspect and test weighing and measuring devices, as specified, that are used or sold in the county. Existing law also requires the sealer of a county to weigh or measure packages to determine whether they contain the amount represented, as provided. Existing law, until January 1, 2016, authorizes the board of supervisors of a county, by ordinance, to charge fees, not to exceed the countys 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. Existing law, until January 1, 2016, requires the Secretary of Food and Agriculture to establish by regulation an annual administrative fee to recover reasonable administrative and enforcement costs incurred by the Department of Food and Agriculture 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 Department of Food and Agriculture Fund.

This bill would extend the authority of the board of supervisors of a county to charge fees to recover the costs of the county sealer, as provided, until January 1, 2019, and would extend certain other related provisions. The bill would also continue the annual administrative fee to recover the costs incurred by the department described above until January 1, 2019.

 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 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.

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 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.: Yes Local: 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: (Verified 7/1/15)

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: (Verified 7/1/15)

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 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 ****

SENATE COMMITTEE ON APPROPRIATIONS

Senator Ricardo Lara, Chair

2015 - 2016 Regular Session

AB 296 (Dodd) - Weights and measures: inspection: fees.

This bill does not meet the criteria for referral to the Suspense File.

Bill Summary:

AB 296 would extend the authorization for county boards of supervisors and the California Department of Food and Agriculture (CDFA) to charge specified fees related to the inspection and testing of weighing and measuring devices, and the administration and oversight of those activities, as specified, until January 1, 2019.

Fiscal Impact:

• Continued CDFA 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)

Background:

Inspection and testing of weighing and measuring devices is overseen in each county by the County Sealer of Weights and Measures. In practice, this function involves the inspection and testing of packaged commodities and all commercially-used weighing and measuring devices, including gas pumps, water meters, grocery scales, taxi meters, among many others. Sealers and their offices enforce the laws and regulations of the state under the general direction and oversight of the Secretary of Food and Agriculture. Sealers protect both consumers and businesses by ensuring that consumers reliably get what they pay for, and that businesses are competing fairly.

Existing law authorizes a county board of supervisors to charge an annual registration fee to recover county sealer costs of testing and inspection of weighing and measuring devices. The registration fee must not exceed a county’s actual testing and inspection costs, and it is comprised of a business location fee, a CDFA administrative fee, and a device fee, as specified. Existing law prescribes a fee schedule that establishes maximum fee amounts that may be charged for specified device registrations including retail gas pump meters, livestock and feed scales, motor truck scales, utility meters and submeters, liquefied petroleum gas meters, vehicle meters and odometers, and all other commercial weighing and measuring devices, and makes specified exceptions. According to CDFA’s most recent expenditure report for weights and measures activities, counties collected approximately $24 million to test nearly 1.4 million weights and measures devices in 2013-14.

As part of a broad strategy to reduce CDFA’s General Fund expenditures by $15 million, AB 120 (Budget Committee), Chap 133/2011, implemented several proposals to reduce the scope of certain programs within the department, and shift costs to special funds, assessments, and fees. One provision of AB 120 authorized CDFA to charge an annual administrative fee on every device registered with county offices of weights and measures to recover administrative and enforcement costs related to county sealers’ inspection and testing of devices. Depending on the device, the per-device CDFA administrative fee ranges from $0.10 for certain submeter devices to $12.00 for large scales with a capacity of over 10,000 pounds, but the fee is $1.10 for most devices. Counties retain 15 percent of the revenues from the fee to cover their administrative costs, and the remaining 85 percent is deposited into the state Food and Agriculture Fund.

Existing law repeals the authority to charge weighing and measuring device registration fees, including the CDFA administrative fee, on January 1, 2016.

Proposed Law:

AB 296 would extend the repeal date on the authority for county boards of supervisors and CDFA to charge specified fees related to the inspection and testing of weighing and measuring devices, and the administration and oversight of those activities, from January 1, 2016 to January 1, 2019.

Related Legislation:

Fee authorization statutes have been extended through legislation nine times since the Legislature originally authorized county boards of supervisors to charge fees to partially fund local weights and measures enforcement programs in 1982. Most recently, AB 1623 (Yamada), Chap 234/2012 extended the repeal date on the authority for counties to charge fees to recover costs for testing and inspection of weighing and measuring devices from January 1, 2013 to January 1, 2016. That bill also established and revised the caps on certain device fees.

Staff Comments:

Absent this bill, CDFA’s administrative costs to operate the Device Enforcement Program would become a General Fund liability, and counties would need to cover costs of testing and inspecting weighing and measuring devices with general revenues or discontinue activities.

-- END --

SENATE COMMITTEE ON

BUSINESS, PROFESSIONS AND ECONOMIC DEVELOPMENT

Senator Jerry Hill, Chair

2015 - 2016 Regular

Bill No: AB 296 Hearing Date: June 8, 2015

Subject: Weights and measures: inspection: fees.

SUMMARY:

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.

Existing law:

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

FISCAL EFFECT:

This bill is keyed “fiscal” by Legislative Counsel. According to the Assembly Appropriations analysis written on March 25, 2015:

1. Absent a sunset extension on the fee authority, the state would incur costs of approximately $650,000 to cover the DFA's oversight functions.

• The DFA collected approximately $650,000 in 2013-14 to cover its costs of supervision, investigation, and enforcement of the county programs. The fee is an annual, per-device fee that ranges from $.10 (submeters) to $12.00 (scales greater than 10,000 pounds capacity) depending on the type of device. The majority of devices are charged $1.10.

2. Counties collected $23.1 million in fee revenue statewide in 2012-13 to defray their costs of the device registration program. Existing law prohibits a county from charging fees that exceed its total cost of performing the required County Sealer duties. Absent a sunset extension on the fee authority, counties would be required to fund this program from other sources, most likely county general fund.

COMMENTS:

1. Purpose. The California Agricultural Commissioners and Sealers Association is the Sponsor of the bill. According to the Author’s office, “This bill would extend a statutory sunset date of AB 1623 (Yamada, 2012) which is set to expire on January 1, 2016. AB 296 extends the sunset through to January 1, 2019. This will allow local governments to continue to recover costs associated with the administration of the annual device registration program. Accurate measurements are vital to protecting consumers from fraudulent and inadvertent errors. Precise scales allow consumers to make informed decisions about their purchases while maintaining a level and competitive marketplace for businesses."

2. 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) in 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 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.
   
   

3. Previous Legislation. AB 1623 (Yamada, Chapter 234, Statutes of 2012) extended the sunset date on the County Board of Supervisor’s authority to charge fees to recover the costs of the County Sealer to perform specified inspections until January 1, 2016, and established or revised certain device fee caps.

AB 2361 (Ruskin, Chapter 260, Statutes of 2010) extended the sunset date on the authority of the Board of Supervisors of a county 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 sunset date to January 1, 2011, and established a gradual increase in the fees that may be adopted by a Board of Supervisors in order to more fully fund the local weights and measure device inspection program. The bill also established a two-tiered fee schedule that provided both a location fee and a device fee to more effectively capture the cost of the initial device inspection.

AB 1810 (Wiggins, Chapter 512, Statues of 2000) extended the sunset dates on the civil penalty authority and on device registration fees to January 1, 2006.

SB 189 (Kelley, Chapter 476, Statutes of 1997) extended the sunset date of the fee authorization to January 1, 2001.

AB 1728 (Murray, Chapter 47, Statutes of 1995) extended the sunset date of the fee authorization to January 1, 1998.

SB 1644 (Kelley, Chapter 592, Statutes of 1994) established the current administrative fine provisions for weights and measures.

4. Arguments in Support. According to the Rural County Representatives of California (RCRC), "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 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."

SUPPORT AND OPPOSITION:

Support:

California Agricultural Commissioners and Sealers Association (Sponsor)

California State Association of Counties

City and County of San Francisco

County of Santa Clara

Rural County Representatives of California

Opposition:

None received as of June 2, 2015.

-- END --

ASSEMBLY THIRD READING

ATR Bill Id:AB 296

Author:(Dodd)

As Introduced Ver:February 12, 2015

Majority vote

SUMMARY:

Extends the authority of the board of supervisors of a county and the state Department of Food and Agriculture (Department) 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.

FISCAL EFFECT:

1. According to the Assembly Appropriations Committee, absent a sunset extension on the fee authority, the state would incur costs of approximately $650,000 to cover the Department's oversight functions.

The Department collected approximately $650,000 in 2013-14 to cover its costs of supervision, investigation, and enforcement of the county programs. The fee is an annual, per-device fee that ranges from $0.10 (submeters) to $12.00 (scales greater than 10,000 pounds capacity) depending on the type of device. The majority of devices are charged $1.10.

Counties collected $23.1 million in fee revenue statewide in 2012-13 to defray their costs of the device registration program. Existing law prohibits a county from charging fees that exceed its total cost of performing the required county sealer duties. Absent a sunset extension on the fee authority, counties would be required to fund this program from other sources, most likely county general fund.

COMMENTS:

1. Purpose of this bill. This bill would extend by three years the fee authorization for counties and the Department to recoup their costs for the inspection and testing of weighing and measuring devices by county sealers, a program that has been ongoing since 1982. The measure is sponsored by the California Agricultural Commissioners and Sealers Association.

2. Author's statement. According to the author's office, "This bill would extend a statutory sunset date of AB 1623 (Yamada, [Chapter 234, Statutes of] 2012) which is set to expire on January 1, 2016. AB 296 extends the sunset through to January 1, 2019. This will allow local governments to continue to recover costs associated with the administration of the annual device registration program. Accurate measurements are vital to protecting consumers from fraudulent and inadvertent errors. Precise scales allow consumers to make informed decisions about their purchases while maintaining a level and competitive marketplace for businesses."

3. County Sealers. The inspection and testing of weighing and measuring devices is overseen by a County Sealer of Weights and Measures. 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. 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, most recently by AB 1623. This same authorization also permits the Department 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 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.

4. 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 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."

There is no opposition on file.

Analysis Prepared by: Hank Dempsey / P. & C.P. / (916) 319-2200 FN: 0000087

Date of Hearing: March 25, 2015

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Jimmy Gomez, Chair

ABPCA Bill Id:AB 296

Author:(Dodd) – As Introduced Ver:February 12, 2015

Urgency: No State Mandated Local Program: No Reimbursable: No

SUMMARY:

This bill extends the authority of a county board of supervisors and the state Department of Food and Agriculture (Department) 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.

FISCAL EFFECT:

1. Absent a sunset extension on the fee authority, the state would incur costs of approximately $650,000 to cover the Department's oversight functions.

• The Department collected approximately $650,000 in 2013-14 to cover its costs of supervision, investigation, and enforcement of the county programs. The fee is an annual, per-device fee that ranges from $.10 (submeters) to $12.00 (scales greater than 10,000 pounds capacity) depending on the type of device. The majority of devices are charged $1.10.

2. Counties collected $23.1 million in fee revenue statewide in 2012-13 to defray their costs of the device registration program. Existing law prohibits a county from charging fees that exceed its total cost of performing the required county sealer duties. Absent a sunset extension on the fee authority, counties would be required to fund this program from other sources, most likely county general fund.

COMMENTS:

1. Purpose. This bill allows counties and the Department to continue to charge fees to recover the costs of the county sealer device inspecting and testing programs by extending the sunset date for three years. The bill does not change any fees or fee caps.

2. Background. Inspection and testing of weighing and measuring devices is overseen in each county by the County Sealer of Weights and Measures. In practice, this function involves the inspection and testing of packaged commodities and all commercially-used weighing and measuring devices, including gas pumps, water meters, grocery scales, taxi meters, among many others. Sealers and their offices enforce the laws and regulations of the state under the general direction and oversight of the Secretary of Food and Agriculture. Sealers protect both consumers and businesses by ensuring that consumers reliably get what they pay for, and that businesses are competing fairly.

In 1982, the Legislature authorized county boards of supervisors to establish fees to partially fund local weights and measures enforcement programs. Over time, the program has been amended to add new devices to the registration program and to adjust the schedule of maximum fees. Based on the maximum fee schedule, each county and its affected businesses negotiate specific fees and adopt them by local ordinance. This authorization has been extended by statute nine times since 1985, most recently by AB 1632 (Yamada) in 2012, and is set to expire on January 1, 2016.

3. Previous legislation.

1. AB 1623 (Yamada), Chapter 234, Statutes of 2012, extended the sunset date on the county board of supervisor’s authority to charge fees to recover the costs of the County Sealer to perform specified inspections until January 1, 2016, and established or revised certain device fee caps.

2. AB 2361 (Ruskin), Chapter 260, Statutes of 2010, extended the sunset date on the authority of the board of supervisors of a county to charge fees to recover the costs of the county sealer until January 1, 2013.

3. AB 889 (Ruskin), Chapter 529, Statutes of 2005, extended the sunset date to January 1, 2011, and established a gradual increase in the fees that may be adopted by a board of supervisors in order to more fully fund the local weights and measure device inspection program. The bill also established a two-tiered fee schedule that provided both a location fee and a device fee to more effectively capture the cost of the initial device inspection.

Analysis Prepared by: Jennifer Swenson / APPR. / (916) 319-2081

Date of Hearing: March 17, 2015

ASSEMBLY COMMITTEE ON PRIVACY AND CONSUMER PROTECTION

Gatto, Chair

ABPCA Bill Id:AB 296

Author:(Dodd) – As Introduced Ver:February 12, 2015

SUBJECT:

Weights and measures: inspection: fees

SUMMARY:

Extends the authority of the board of supervisors of a county and the state Department of Food and Agriculture (Department) 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.

EXISTING LAW:

1. Requires the sealer of a county to inspect and test weighing and measuring devices, as specified, that are used or sold in the county. (Business and Professions Code (BPC) Section 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 Department Secretary to establish by regulation an annual administrative fee to recover reasonable administrative and enforcement costs incurred by the Department 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 Department of Food and Agriculture Fund. (BPC 12241)

FISCAL EFFECT:

Unknown

COMMENTS:

1. Purpose of this bill. This bill would extend by three years the fee authorization for counties and the state Department of Food and Agriculture to recoup their costs for the inspection and testing of weighing and measuring devices by county sealers, a program that has been ongoing since 1982. The measure is sponsored by the California Agricultural Commissioners and Sealers Association.

2. Author's statement. According to the author's office, "This bill would extend a statutory sunset date of AB 1623 (Yamada, 2012) which is set to expire on January 1, 2016. AB 296 extends the sunset through to January 1, 2019. This will allow local governments to continue to recover costs associated with the administration of the annual device registration program. Accurate measurements are vital to protecting consumers from fraudulent and inadvertent errors. Precise scales allow consumers to make informed decisions about their purchases while maintaining a level and competitive marketplace for businesses."

3. 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 Department 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) in 2012. It is important to note that this same authorization also permits the Department 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 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.
   
   
   

4. Arguments in support. According to the Rural County Representatives of California (RCRC), "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 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."

5. Previous legislation.

6. AB 1623 (Yamada), Chapter 234, Statutes of 2012, extended the sunset date on the county board of supervisor’s authority to charge fees to recover the costs of the County Sealer to perform specified inspections until January 1, 2016, and established or revised certain device fee caps.

7. 
   
   AB 2361 (Ruskin), Chapter 260, Statutes of 2010,

8. extended the sunset date on the authority of the board of supervisors of a county 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 sunset date to January 1, 2011, and established a gradual increase in the fees that may be adopted by a board of supervisors in order to more fully fund the local weights and measure device inspection program. The bill also established a two-tiered fee schedule that provided both a location fee and a device fee to more effectively capture the cost of the initial device inspection.

AB 1810 (Wiggins), Chapter 512, Statues of 2000, extended the sunset dates on the civil penalty authority and on device registration fees to January 1, 2006.

SB 189 (Kelley), Chapter 476, Statutes of 1997, extended the sunset date of the fee authorization to January 1, 2001.

AB 1728 (Murray), Chapter 47, Statutes of 1995, extended the sunset date of the fee authorization to January 1, 1998.

SB 1644 (Kelley), Chapter 592, Statutes of 1994, established the current administrative fine provisions for weights and measures.

REGISTERED SUPPORT / OPPOSITION:

Support

California Agricultural Commissioners and Sealers Association (Sponsor)

California State Association of Counties

Rural County Representatives of California

Opposition

None received.

Analysis Prepared by:

Hank Dempsey/P. & C.P./(916) 319-2200