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, 2027, authorizes the board of supervisors of a county, by ordinance, to charge an annual registration fee, 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, 2027, 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 county sealers described above and for other specified duties, 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 an annual registration fee to recover the costs of the county sealer, as provided, until January 1, 2029, 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, 2029.

Existing law specifies that the annual registration fee for a business that uses a commercial weighing or measuring device consists of, among other things, a business location fee and a device fee. Existing law generally prohibits the business location fee and device fee from exceeding $100 per business location, plus 100% of the maximum applicable device fee.

This bill would instead prohibit the business location fee and device fee from exceeding $120 per business location, plus 100% of the maximum applicable device fee.

The bill would increase the maximum device fee for water submeters and vapor submeters used under certain circumstances to $6 and $10, respectively, and would increase the maximum device fee for computing scales to $25. The bill would also apply the same device fee and other requirements applicable to computing scales to electronic counter scales interfaced with a cash register or any point-of-sale system.

Existing law provides, that for computing scales, the portion of the annual registration fee consisting of the business location fee and the device fees shall not exceed $1,000 for each business location.

This bill would increase the maximum annual registration fee described above to $1,200.

Existing law provides, that for all other commercial weighing or measuring devices not specifically listed, the device fee shall not exceed $20 per device and the portion of the annual registration fee consisting of the business location fee and the device fees shall not exceed $1,000 for each business location.

This bill would increase the maximum device fee to $26 for these devices and would increase the maximum annual registration fee described above to $1,200.

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, 2027, authorizes the board of supervisors of a county, by ordinance, to charge an annual registration fee, 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, 2027, 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 county sealers described above and for other specified duties, 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 an annual registration fee to recover the costs of the county sealer, as provided, until January 1, 2029, 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, 2029.

Existing law specifies that the annual registration fee for a business that uses a commercial weighing or measuring device consists of, among other things, a business location fee and a device fee. Existing law generally prohibits the business location fee and device fee from exceeding $100 per business location, plus 100% of the maximum applicable device fee.

This bill would instead prohibit the business location fee and device fee from exceeding $120 per business location, plus 100% of the maximum applicable device fee.

The bill would increase the maximum device fee for water submeters and vapor submeters used under certain circumstances to $6 and $10, respectively, and would increase the maximum device fee for computing scales to $25. The bill would also apply the same device fee and other requirements applicable to computing scales to electronic counter scales interfaced with a cash register or any point-of-sale system.

Existing law provides, that for computing scales, the portion of the annual registration fee consisting of the business location fee and the device fees shall not exceed $1,000 for each business location.

This bill would increase the maximum annual registration fee described above to $1,200.

Existing law provides, that for all other commercial weighing or measuring devices not specifically listed, the device fee shall not exceed $20 per device and the portion of the annual registration fee consisting of the business location fee and the device fees shall not exceed $1,000 for each business location.

This bill would increase the maximum device fee to $26 for these devices and would increase the maximum annual registration fee described above to $1,200.

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, 2027, authorizes the board of supervisors of a county, by ordinance, to charge an annual registration fee, 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, 2027, 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 county sealers described above and for other specified duties, 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.

Existing law specifies that the annual registration fee for a business that uses a listed commercial weighing or measuring device consists of, among other things, a business location fee and a device fee. Existing law prohibits the business location fee and device fee from exceeding $100 per business location, plus 100% of the maximum applicable device fee.

This bill would instead prohibit the business location fee and device fee from exceeding $120 per business location, plus 100% of the maximum applicable device fee.

The bill would increase the maximum device fee for water submeters and vapor submeters used under certain circumstances to $6 and $10, respectively, and would increase the maximum device fee for computing scales to $25. The bill would also apply the same device fee and other requirements applicable to computing scales to electronic counter scales interfaced with a cash register or any point-of-sale system.

Existing law provides, that for computing scales, the portion of the annual registration fee consisting of the business location fee and the device fees shall not exceed $1,000 for each business location.

This bill would increase the maximum annual registration fee described above to $1,200.

Existing law provides, that for all other commercial weighing or measuring devices not listed, the device fee shall not exceed $20 per device and the portion of the annual registration fee consisting of the business location fee and the device fees shall not exceed $1,000 for each business location.

This bill would increase the maximum device fee to $26 for these devices and would increase the maximum annual registration fee described above to $1,200.

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, 2027, authorizes the board of supervisors of a county, by ordinance, to charge an annual registration fee, 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, 2027, 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 county sealers described above and for other specified duties, 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 an annual registration fee to recover the costs of the county sealer, as provided, until January 1, 2029, 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, 2029.

CONCURRENCE IN SENATE AMENDMENTS

CSA1 Bill Id:AB 1304

Author:(Papan)

As Amended Ver:May 31, 2023

Majority vote

SUMMARY

Increases certain permissible registration fees that a County Board of Supervisors may charge to fund the operations of the County Sealer of Weights and Measures.

Major Provisions

1. The maximum business location fee increases from $100 to $120 per business location.
2. The maximum fee for residential water submeters increases from $2 to $6 per device
3. The maximum fee for residential natural gas vapor submeters increases from $4 to $10 per device.
4. The fee for computing scales and electronic counter scales interfaced with a cash register or any point-of-sale system increases from $23 to $25 per device, while the maximum fee for each business location increases from $1,000 to $1,200 per location.
5. The catch-all fee for commercial weighing and measuring devices not otherwise identified in statute increases from $20 per device to $26 per device, while the maximum fee for each business location increases from $1,000 to $1,200 per location.

Senate Amendments

Update the fee for computing scales to also include electronic counter scales interfaced with a cash register or any point-of-sale system; extend the applicable sunset date from January 1, 2027 to January 1, 2029.

COMMENTS

Background. This bill would increase the permissible fees that County Sealers of Weights and Measures can charge to fund their inspection and verification of the accuracy of certain measuring devices. This increase is sought because of significant increases in County Sealers' costs of operations, not least because of significant inflation over the past two years.

County Sealers are responsible for ensuring that all of the commercial scaling and volumetric measuring devices used in a county provide accurate readings, and are not installed and used to facilitate fraud. Statutory authorization for the office of the County Sealer is more than a century old; the oldest authorizing statute uncovered by Committee staff was enacted in 1913.

The County Sealer's seal is affixed to many measuring devices one encounters in the course of daily life in California. County Sealers ultimately make sure that if the readout at the gas station says that you have pumped seven gallons of gasoline, that the pump in question actually dispensed seven gallons; that if the scale at the supermarket says that you are buying two pounds of steak, that the scale accurately measured two pounds; and that if the natural gas submeter in your apartment says that you used 2,000 cubic feet of natural gas last month, that you were actually provided 2,000 cubic feet of gas.

It is crucial to note that County Sealers protect both consumers and retailers. Consumers are obviously protected against fraud, and save money, if they can trust the measurements they are provided when purchasing goods and paying for utilities. As the sponsor writes, "[T]he impact of a commercial transaction that results in an 'undersold' item disproportionately impacts indigent consumers since they are not receiving the full amount of commodities they are due based on faulty measure. […] When every dollar counts, it is critical that you get every ounce you paid for." County Sealers also protect honest businesses from dishonest ones: a business that is able to reap extra revenue by cheating its customers ever-so-slightly on many transactions is one that gains an unfair advantage over law-abiding competitors that provide their customers with accurate measurements. Existing law authorizes counties to charge fees to recover the costs incurred by County Sealers when they perform required inspections. These inspections cover devices such as retail fuel dispensing meters; water, electric, and natural gas vapor submeters in mobile home parks, apartment complexes, and boat docks; truck scales; cattle scales; grocery counter scales; taxi meters; and a host of other devices that weigh or measure commodities that are offered for sale.

What this bill would do. This bill would increase the statutory caps on certain fees that counties may charge businesses in order to sufficiently fund County Sealers' inspection and testing programs.

These fee increases are as follows:

1. The business location fee, assessed for each business location that (a) contains a device to be inspected or tested, (b) requires the use of specialized testing equipment, and (c) requires a single visit, would increase from $100 to $120 per business location.
2. If the owner of a business such as a marina, mobilehome park, recreational vehicle park, or apartment complex also owns and is responsible for the utility submeters at these locations, then the maximum fee for each water submeter would increase from $2 to $6 per device, and for each natural gas vapor submeter would increase from $4 to $10 per device. Each of these fees is assessed per unit, space, or apartment that is submetered.
3. The maximum fee for a computing scale (or an electronic counter scale interfaced with a cash register or any point-of-sale system) would increase from $23 to $25, while the overall maximum fee for each business location would increase from $1,000 to $1,200.
4. The catch-all fee for commercial weighing and measuring devices not otherwise identified in statute would increase from $20 to $26 per device, while the overall maximum fee for each business location would increase from $1,000 to $1,200.

Analysis. Justification for these fee increases lies with increases in operational costs for County Sealers. Increased costs result in an inability to perform inspections with the frequency required under law and/or operating deficits for counties forced to backfill the County Sealer's costs of operation.

The business location fee in #1 above was established by AB 889 (Ruskin, Chap. 529, Stats. 2005). The fee took effect on January 1, 2008, and has remained unchanged ever since. According to the United States Bureau of Labor Statistics Consumer Price Index (CPI) Inflation Calculator, $100 in January 2008 has the same buying power as $144.82 in July 2023. (See https://www.bls.gov/data/inflation_calculator.htm.) By this standard, an increase in the statutory fee to $120 appears reasonable. The remaining fees in #2-4 above were established by AB 1623 (Yamada), Chapter 234, Statutes of 2012, and took effect on January 1, 2013. According to the CPI Inflation Calculator, $2 in January 2013 (the permissible fee for water submeters) has the same buying power as $2.65 in July 2023, $4 (the permissible fee for natural gas vapor submeters) has the same buying power as $5.31 in July 2023, $20 (the permissible catch-all fee for other devices) has the same buying power as $26.55 in July 2023, and $23 (the permissible fee for a computing scale) has the same buying power as $30.53 in July 2023. Finally, $1,000 in January 2013 has the same buying power as $1,327.48 in July 2023. Using the inflation standard, the fee increases in #3 and #4 also appear reasonable. Which leaves the fee increases in #2 for submeters, which significantly exceed the increase in inflation over this time. The bill's sponsor, the California Agricultural Commissioners and Sealers Association, justifies this increase as follows. Inspection and testing of water and natural gas vapor submeters was first authorized in statute by AB 1623. The figures used in that bill have proven to be insufficient to cover the time and expense required, particularly to re-test devices that are out of compliance. The Association has surveyed its membership as to the actual cost of inspecting and testing these submeters: the statewide average is $6 per water submeter and $10 per vapor submeters.

In light of the data, these fee increases appear reasonable—particularly in light of the fact that these increases may remain fixed in statute until January 1, 2029, when authorization for counties to charge fees to cover County Sealers' costs of operation next sunsets.

According to the Author

California Weights and Measures professionals ensure a fair marketplace by verifying products are sold by accurate weights, measures, and prices. This is the most basic and fundamental principle of the marketplace that dates back to the earliest civilizations. If an item for sale is represented by the pound, gallon or meter, the consumer must be able to trust that the device used to establish that measurement and price [is] accurate and trustworthy. This important program protects consumers so they can be confident that they "get what they pay for," and allows for true value comparison protecting businesses by ensuring fair competition in the marketplace.

Arguments in Support

Bill sponsor California Agricultural Commissioners and Sealers Association explains the negative impact that inadequate fees impose on county budgets:

Current law mandates that each and every device that measures weight, volume, length or any other unit of measurement that is used to determine the price of a commercial transaction must be registered, tested and sealed by a county sealer of weights and measures. Current law places a maximum "cap" that can be charged, annually, per device by a county sealer to provide revenue to fund the county inspection program. […] Since the caps are set in statute, counties cannot charge more than the amounts listed in the Code, even if a cost study demonstrates that the service provided exceeds the maximum that can be charged under current law. The current device fees and business location fee have not been adjusted to reflect increased costs to provide this mandatory annual service, and counties are operating at an ongoing significant deficit.

Arguments in Opposition

No opposition on file

FISCAL COMMENTS

None

VOTES:

ASM PRIVACY AND CONSUMER PROTECTION: 10-0-1

YES: Gabriel, Joe Patterson, Bauer-Kahan, Bennett, Essayli, Irwin, Lowenthal, Papan, Wicks, Wilson

ABS, ABST OR NV: Vince Fong

ASSEMBLY FLOOR: 66-0-14

YES: Addis, Aguiar-Curry, Alanis, Alvarez, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Wendy Carrillo, Chen, Connolly, Megan Dahle, Davies, Dixon, Essayli, Mike Fong, Friedman, Gabriel, Gallagher, Garcia, Gipson, Grayson, Haney, Holden, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Low, Lowenthal, Maienschein, Mathis, McKinnor, Muratsuchi, Stephanie Nguyen, Pacheco, Papan, Jim Patterson, Joe Patterson, Pellerin, Petrie‑Norris, Quirk-Silva, Ramos, Reyes, Luz Rivas, Robert Rivas, Rodriguez, Blanca Rubio, Santiago, Schiavo, Soria, Ting, Valencia, Villapudua, Waldron, Wallis, Weber, Wicks, Wilson, Wood, Zbur, Rendon

ABS, ABST OR NV: Arambula, Bains, Juan Carrillo, Cervantes, Flora, Vince Fong, Hart, Lackey, Lee, McCarty, Ortega, Sanchez, Ta, Ward

SENATE FLOOR: 38-0-2

YES: Allen, Alvarado-Gil, Archuleta, Ashby, Atkins, Becker, Blakespear, Bradford, Caballero, Cortese, Dahle, Dodd, Durazo, Eggman, Glazer, Gonzalez, Grove, Hurtado, Jones, Laird, Limón, McGuire, Menjivar, Min, Newman, Nguyen, Niello, Ochoa Bogh, Portantino, Roth, Rubio, Skinner, Smallwood-Cuevas, Stern, Umberg, Wahab, Wiener, Wilk

ABS, ABST OR NV: Padilla, Seyarto

UPDATED

VERSION: May 31, 2023

CONSULTANT: Jith Meganathan / P. & C.P. / (916) 319-2200 FN: 0001806

 THIRD READING  

Bill No: AB 1304

Author: Papan (D)

Amended: 5/31/23 in Senate

Vote: 21

SENATE BUS., PROF. & ECON. DEV. COMMITTEE: 11-0, 6/12/23

AYES: Roth, Alvarado-Gil, Archuleta, Ashby, Becker, Dodd, Glazer, Niello, Smallwood-Cuevas, Wahab, Wilk

NO VOTE RECORDED: Nguyen, Eggman

SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8

ASSEMBLY FLOOR: 66-0, 5/8/23 - See last page for vote

SUBJECT: Weights and measures: inspection fees

SOURCE: California Agricultural Commissioners and Sealers Association

DIGEST:

This bill increases the fees that a County Board of Supervisors may charge to fund the operations of the County Sealer of Weights and Measures, as specified, and extends the sunset date of that fee authority by two years, until January 1, 2029.

ANALYSIS:

Existing law:

1. Provides that the Division of Measurement Standards (DMS) within the Department of Food and Agriculture (DFA) for 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. (Business and Professions Code (BPC § 12100)
2. Establishes in each county an office of county sealer of weights and measures who is appointed by the board of supervisors except in charter counties, and the term of office is four years, as specified. (BPC § 12200)
3. Authorizes the 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 currently required, to recover the costs of inspecting or testing weighing and measuring devices, as specified. (BPC § 12211)
4. Establishes the following maximum device fees:
   1. If the owner of a marina, mobilehome park, recreational vehicle park, or apartment complex also owns and is responsible for the utility submeters at these locations, then the maximum fee for each water submeter is $2 per device and for each natural gas vapor submeter is $4 per device, per space or apartment. (BPC § 12240(g)(1).)
   2. The maximum fee for a computing scale is $23, with an overall maximum fee for each business location of $1,000. (A computing scale is defined as a weighing device, with a capacity of less than 100 pounds, which indicates the monetary value of a commodity it weighs.) (BPC § 12240(n).)
   3. The catch-all fee for commercial weighing and measuring devices not otherwise identified in statute is $20 per device, with an overall maximum fee for each business location of $1,000. (BPC § 12240(t).)

This bill:

1. Increases the annual registration fee for a business that uses a commercial weighing or measuring device, as specified, from $100 to $120 per business location.
2. Increases the maximum device fee for residential water submeters from $2 to $6 per device, and the fee for residential natural gas vapor submeters from $4 to $10 per device.
3. Increases the device fee for computing scales from $23 to $25 per device, while the maximum fee for each business location increases from $1,000 to $1,200 per location.
4. Updates the definition of a computing scale to include electronic counter scales interfaced with a cash register, as specified, and that it indicates through its indicator or point-of-sale system indicator, the monetary value as specified.
5. Updates the definition of weighing devices, other than computing scales, to include an interfaced electronic counter.
6. Increases for all other commercial weighing or measuring devices, which are not marina’s, mobile home parks, recreational vehicle parks, and apartment complexes, from $20 to $26 per device, maximum fee for each business location increases from $1,000 to $1,200 per location.
7. Extends the sunset date of the County Board of Supervisors’ authority to collect a fee to fund the operations of the County Sealer of Weights and Measures by two years until January 1, 2029.

Background

County sealers of weights and measures, are appointed by their respective county boards of supervisors, and are responsible for ensuring that all commercial scaling and volumetric measuring devices are providing accurate readings, to ensure that customers pay the correct amount for the product they are purchasing. County sealers regulate a significant number of weighing devices including petroleum fuel meters, utility submeters, odometers, taximeters, LPG meters, and all grocery, butchery, jewelry, postal, vehicle, luggage and shipping scales. These weighing devices are tested for accuracy and inspected to determine if they are appropriate for their intended use and provide accurate readings. Once that is determined, the inspector certifies the device by affixing a paper seal to it. If a device is inaccurate, the county sealers require it be removed from use until serviced, repaired and recalibrated. Current law requires any weighing device used for commercial purposes to be registered with the county sealer.

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.

The fees authorized for weights and measure device registration are specified in statute. Specifically, BPC Section 12240 sets a “maximum” fee that can be charged for each device or location for which a required inspection is necessary depending on the type of scale or measuring device being used. Counties are authorized to charge anywhere up to the maximum in order to reimburse their costs of inspection or testing of the weighing or measuring device.

This bill increases the statutory caps or maximum fees that can be charged to businesses in order to sufficiently fund the County Sealers’ inspection and testing programs.

In addition, this bill updates definitions of certain weighing devices to ensure that as new technology is created related to the types of scales, the fee assessed based on the scale being used is accurate. This bill revises the definition of a computing scale, which is typically used in the grocery business, to include electronic counter scales interfaced with a cash register or any point-of-sale system. Scales in this category have a weighing capacity of less than 100 pounds, and the revised definition will not change the type of weighing that this scale should be used for. In addition, this bill revises the definition of those weighing devices, which are other than computing scales, to include an interfaced electronic counter. These scales have a weighing capacity of at least 100 pounds but less than 2,000 pounds and the definition update is to capture new technology in scales, not to change the purpose of the scale. Additionally, this bill extends the sunset date on the Board of Supervisors’ authority to charge a fee to fund the local weighmaster’s program by an additional two years-from January 1, 2027, to January 1, 2029.

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No

SUPPORT: (Verified 8/15/23)

California Agricultural Commissioners and Sealers Association (source)

County of Humboldt

County of Orange

County of Santa Clara

Placer County Board of Supervisors

Solano County Board of Supervisor

OPPOSITION: (Verified 8/15/23)

None received

ARGUMENTS IN SUPPORT: Supporters generally note that these fees cover the costs associated with inspections, ensuring the accuracy and integrity of weights and measures devices in various business locations.

ASSEMBLY FLOOR: 66-0, 5/8/23

AYES: Addis, Aguiar-Curry, Alanis, Alvarez, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Wendy Carrillo, Chen, Connolly, Megan Dahle, Davies, Dixon, Essayli, Mike Fong, Friedman, Gabriel, Gallagher, Garcia, Gipson, Grayson, Haney, Holden, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Low, Lowenthal, Maienschein, Mathis, McKinnor, Muratsuchi, Stephanie Nguyen, Pacheco, Papan, Jim Patterson, Joe Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Reyes, Luz Rivas, Robert Rivas, Rodriguez, Blanca Rubio, Santiago, Schiavo, Soria, Ting, Valencia, Villapudua, Waldron, Wallis, Weber, Wicks, Wilson, Wood, Zbur, Rendon

NO VOTE RECORDED: Arambula, Bains, Juan Carrillo, Cervantes, Flora, Vince Fong, Hart, Lackey, Lee, McCarty, Ortega, Sanchez, Ta, Ward

Prepared by: Elissa Silva / B., P. & E.D. / 916-651-4104

8/16/23 14:04:42

**** END ****

SENATE COMMITTEE ON

BUSINESS, PROFESSIONS AND ECONOMIC DEVELOPMENT

Senator Richard Roth, Chair

2023 - 2024 Regular

Bill No: AB 1304 Hearing Date: June 12, 2023

Subject: Weights and measures: inspection fees.

SUMMARY:

Increases the fees that a County Board of Supervisors may charge to fund the operations of the County Sealer of Weights and Measures, as specified, and extends the sunset date of that fee authority by two years, until January 1, 2029.

Existing law:

1. Provides that the Division of Measurement Standards (DMS) within the Department of Food and Agriculture (DFA) for 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. (Business and Professions Code (BPC § 12100)
   
2. Requires the DFA to investigate conditions in the various counties and cities in respect to weights and measures, and to the sale of goods, wares and merchandise, commodities, and foodstuffs in containers. (BPC § 12101)
   
3. Requires the Secretary of the DFA to adopt necessary regulations governing the inspection frequency of all commercially used weights, measures, and weighing and measuring apparatus in the state. (BPC § 12212(b))
4. Establishes in each county, an office of county sealer of weights and measures. The county sealer is appointed by the board of supervisors except in charter counties, and the term of office is four years, as specified. (BPC § 12200)
   
5. Authorizes a county sealer, with the consent of the appointing authority, to appoint deputies or inspectors when necessary or expedient to carry out the duties of the office, and serve at the pleasure of the county sealer. (BPC § 12200)
   
6. Requires each sealer within his or her county to inspect, try and test all weights, scales, beams, measures of any kind, instruments or mechanical devices for weighing and measuring, and tools, appliances and accessories connected with any or all such instruments or measures, sold or used by any proprietor, agent, lessee or employee for commercial purposes, as defined. (BPC § 12210(a))
   
7. Authorizes the 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 currently required, to recover the costs of inspecting or testing weighing and measuring devices, as specified. (BPC § 12211)
   
8. Establishes the following maximum device fees:
9. If the owner of a marina, mobilehome park, recreational vehicle park, or apartment complex also owns and is responsible for the utility submeters at these locations, then the maximum fee for each water submeter is $2 per device and for each natural gas vapor submeter is $4 per device, per space or apartment. (BPC § 12240(g)(1).)
10. The maximum fee for a computing scale is $23, with an overall maximum fee for each business location of $1,000. (A computing scale is defined as a weighing device, with a capacity of less than 100 pounds, that indicates the monetary value of a commodity it weighs.) (BPC § 12240(n).)
11. The catch-all fee for commercial weighing and measuring devices not otherwise identified in statute is $20 per device, with an overall maximum fee for each business location of $1,000. (BPC § 12240(t).)

This bill:

1. Increases the annual registration fee for a business that uses a commercial weighing or measuring device, as specified, from $100 to $120 per business location.
   
2. Increases the maximum device fee for residential water submeters from $2 to $6 per device, and the fee for residential natural gas vapor submeters from $4 to $10 per device.
   
3. Increases the device fee for computing scales from $23 to $25 per device, while the maximum fee for each business location increases from $1,000 to $1,200 per location.
   
4. Updates the definition of a computing scale to include electronic counter scales interfaced with a cash register, as specified, and that it indicates through its indicator or point-of-sale system indicator, the monetary value as specified.
   
5. Updates the definition of weighing devices, other than computing scales, to include an interfaced electronic counter.
   
6. Increases for all other commercial weighing or measuring devices, which are not marina’s, mobile home parks, recreational vehicle parks, and apartment complexes, from $20 to $26 per device, maximum fee for each business location increases from $1,000 to $1,200 per location.
   
7. Extends the sunset date of the County Board of Supervisors’ authority to collect a fee to fund the operations of the County Sealer of Weights and Measures by two years until January 1, 2029.

FISCAL EFFECT:

This bill is not keyed fiscal by Legislative Counsel.

COMMENTS:

1. Purpose. The California Agricultural Commissioners and Sealers Association is the sponsor of this bill. According to the author, “Inflation since 2008 has been roughly 20%. Counties are losing money on this program, and this bill would bring the fees in line with what it currently costs to run the program.”
2. Background.

Weights and measures. Enforcement of California's weights and measures laws and regulations is the responsibility of the DMS under the DFA. The DMS works with county sealers of weights and measures who, under the supervision and direction of the Secretary of DFA, carry out many of the weights and measures inspection and enforcement activities at the local level. County weights and measures officials inspect and test packaged commodities and all commercially used devices. Weights and measures officials have the authority to issue citations for misdemeanor and infraction violations involving weights and measures laws. DFA is required to adopt necessary regulations governing the inspection frequency of all commercially used weights, measures, and weighing apparatus in the state.

County Sealers. County sealers of weights and measures, are appointed by their respective county boards of supervisors, and are responsible for ensuring that all commercial scaling and volumetric measuring devices are providing accurate readings, to ensure that customers pay the correct amount for the product they are purchasing. County sealers regulate a significant number of weighing devices including petroleum fuel meters, utility submeters, odometers, taximeters, LPG meters, and all grocery, butchery, jewelry, postal, vehicle, luggage and shipping scales. These weighing devices are tested for accuracy and inspected to determine if they are appropriate for their intended use and provide accurate readings. Once that is determined, the inspector certifies the device by affixing a paper seal to it. If a device is inaccurate, the county sealers require it be removed from use until serviced, repaired and recalibrated. Current law requires any weighing device used for commercial purposes to be registered with the county sealer.

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.

The fees authorized for weights and measure device registration are specified in statute. Specifically, BPC § 12240 sets a “maximum” fee that can be charged for each device or location for which a required inspection is necessary depending on the type of scale or measuring device being used. Counties are authorized to charge anywhere up to the maximum in order to reimburse their costs of inspection or testing of the weighing or measuring device.

This bill would increase the statutory caps or maximum fees that can be charged to businesses in order to sufficiently fund the County Sealers’ inspection and testing programs.

These fee increases are as follows:

• The business location fee, assessed for each business location that (a) contains a device to be inspected or tested, (b) requires the use of specialized testing equipment, and (c) requires a single visit, would increase from $100 to $120 per business location.
• If the owner of a business such as a marina, mobile home park, recreational vehicle park, or apartment complex also owns and is responsible for the utility submeters at these locations, then the maximum fee for each water submeter would increase from $2 to $6 per device, and for each natural gas vapor submeter would increase from $4 to $10 per device. Each of these fees is assessed per unit, space, or apartment that is submetered.
• The maximum fee for a computing scale would increase from $23 to $25, while the overall maximum fee for each business location would increase from $1,000 to $1,200.
• The fee for commercial weighing and measuring devices not otherwise specified in statute would increase from $20 to $26 per device, while the overall maximum fee for each business location would increase from $1,000 to $1,200.

Fee History. 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 was amended in 1983, 1987, 1991, 1992, 1993, 1994, 1996, 1998, 2005, and 2018 to add additional devices to the registration program and to adjust the schedule of maximum fees for certain devices. Past legislation has also contained a sunset provision for a county board of supervisors to charge a fee or registration fee to cover the cost of inspecting and testing weighing devices. The last comprehensive fee increase was in 2012. More recently, AB 347 (Chau, Chapter 521, Statutes of 2018) raised the fee for computing devices from $20 to $23 and revised the current scale category used for jewelry and prescriptions to include Class II weighing devices or those scales meeting the designs specifications for Class II weighing devices.

Information provided by the sponsors note that in order to determine the appropriate fee to be charged to cover the cost associated with inspections, the county sealers review the required county monthly report which details the time spent reviewing devices and costs associated with that inspection. Upon noticing and determination that the costs for inspecting certain devices were exceeding the fees collected, the fees proposed by this bill are the result of that analysis. That assessment helps identify why only some of the maximum fees authorized to be charged are proposed to be increased in this bill.

In addition, this bill updates definitions of certain weighing devices to ensure that as new technology is created related to the types of scales, the fee assessed based on the scale being used is accurate. This bill revises the definition of a computing scale, which is typically used in the grocery business, to include electronic counter scales interfaced with a cash register or any point-of-sale system. Scales in this category have a weighing capacity of less than 100 pounds, and the revised definition will not change the type of weighing that this scale should be used for. In addition, this bill revises the definition of those weighing devices which are other than computing scales, to include an interfaced electronic counter. These scales have a weighing capacity of at least 100 pounds but less than 2,000 pounds and the definition update is to capture new technology in scales, not to change the purpose of the scale. Additionally, this bill extends the sunset date on the Board of Supervisors’ authority to charge a fee to fund the local weighmaster’s program by an additionally two years-from January 1, 2027 to January 1, 2029.

1. Related Legislation. AB 694 (Committee on Privacy and Consumer Protection, Chapter, 525, Statutes of 2021) extends the authority of a county's board of supervisors to charge certain fees and extend related provisions. This bill makes minor updates and nonsubstantive changes to other statutes.

AB 347 (Chau, Chapter 521, Statutes of 2018) extended, until January 1, 2022, the authority for a county sealer to recover the costs related to the inspection and testing of weighing and measuring devices; increases the fee cap for the inspection of a computing scale by $3 and adds a Class II weighing scale.

AB 296 (Dodd, Chapter 133, Statutes of 2015), Extends the authority of the Board of Supervisors of a county and the 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.

AB 1623 (Yamada, Chapter 234, Statutes of 2012), extended the sunset date on the county board of supervisors authority to charge fees to recover the costs of the county sealer to perform specified inspections until January 1, 2018, and establishes or revises 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.

1. Arguments in Support. The California Agricultural Commissioners and Sealers Association writes in support, “The current device fees and business location fee have not been adjusted to reflect increased costs to provide this mandatory annual service, and counties are operating at an ongoing significant deficit.”

The County of Santa Clara writes in support and notes, “The extension of board of supervisors’ authority to charge an annual registration fee is vital for the protection of consumers against fraud in the marketplace, and for promotion of equity in the business community.”

The Placer County Board of Supervisors writes in support and notes, “County weights and measures programs provide a valuable consumer protection service that helps to ensure that consumers will be charged the correct price when purchasing goods sold by weight or measurement.”

The Orange County Board of Supervisors writes in support, “This bill would allow the fee cap to be increased, which would enable the County to allocate appropriate staffing levels to conduct needed inspections, respond to consumers, and ensure a fair marketplace that protects all businesses.”

SUPPORT AND OPPOSITION:

Support:

California Agricultural Commissioners & Sealers Association (Sponsor)
County of Orange

County of Placer
County of Santa Clara

Opposition:

None received

-- END --

SENATE COMMITTEE ON

BUSINESS, PROFESSIONS AND ECONOMIC DEVELOPMENT

Senator Richard Roth, Chair

2023 - 2024 Regular

Bill No: AB 1304 Hearing Date: June 12, 2023

Subject: Weights and measures: inspection fees.

SUMMARY:

Increases the fees that a County Board of Supervisors may charge to fund the operations of the County Sealer of Weights and Measures, as specified, and extends the sunset date of that fee authority by two years, until January 1, 2029.

Existing law:

1. Provides that the Division of Measurement Standards (DMS) within the Department of Food and Agriculture (DFA) for 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. (Business and Professions Code (BPC § 12100)
   
2. Requires the DFA to investigate conditions in the various counties and cities in respect to weights and measures, and to the sale of goods, wares and merchandise, commodities, and foodstuffs in containers. (BPC § 12101)
   
3. Requires the Secretary of the DFA to adopt necessary regulations governing the inspection frequency of all commercially used weights, measures, and weighing and measuring apparatus in the state. (BPC § 12212(b))
4. Establishes in each county, an office of county sealer of weights and measures. The county sealer is appointed by the board of supervisors except in charter counties, and the term of office is four years, as specified. (BPC § 12200)
   
5. Authorizes a county sealer, with the consent of the appointing authority, to appoint deputies or inspectors when necessary or expedient to carry out the duties of the office, and serve at the pleasure of the county sealer. (BPC § 12200)
   
6. Requires each sealer within his or her county to inspect, try and test all weights, scales, beams, measures of any kind, instruments or mechanical devices for weighing and measuring, and tools, appliances and accessories connected with any or all such instruments or measures, sold or used by any proprietor, agent, lessee or employee for commercial purposes, as defined. (BPC § 12210(a))
   
7. Authorizes the 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 currently required, to recover the costs of inspecting or testing weighing and measuring devices, as specified. (BPC § 12211)
   
8. Establishes the following maximum device fees:
9. If the owner of a marina, mobilehome park, recreational vehicle park, or apartment complex also owns and is responsible for the utility submeters at these locations, then the maximum fee for each water submeter is $2 per device and for each natural gas vapor submeter is $4 per device, per space or apartment. (BPC § 12240(g)(1).)
10. The maximum fee for a computing scale is $23, with an overall maximum fee for each business location of $1,000. (A computing scale is defined as a weighing device, with a capacity of less than 100 pounds, that indicates the monetary value of a commodity it weighs.) (BPC § 12240(n).)
11. The catch-all fee for commercial weighing and measuring devices not otherwise identified in statute is $20 per device, with an overall maximum fee for each business location of $1,000. (BPC § 12240(t).)

This bill:

1. Increases the annual registration fee for a business that uses a commercial weighing or measuring device, as specified, from $100 to $120 per business location.
   
2. Increases the maximum device fee for residential water submeters from $2 to $6 per device, and the fee for residential natural gas vapor submeters from $4 to $10 per device.
   
3. Increases the device fee for computing scales from $23 to $25 per device, while the maximum fee for each business location increases from $1,000 to $1,200 per location.
   
4. Updates the definition of a computing scale to include electronic counter scales interfaced with a cash register, as specified, and that it indicates through its indicator or point-of-sale system indicator, the monetary value as specified.
   
5. Updates the definition of weighing devices, other than computing scales, to include an interfaced electronic counter.
   
6. Increases for all other commercial weighing or measuring devices, which are not marina’s, mobile home parks, recreational vehicle parks, and apartment complexes, from $20 to $26 per device, maximum fee for each business location increases from $1,000 to $1,200 per location.
   
7. Extends the sunset date of the County Board of Supervisors’ authority to collect a fee to fund the operations of the County Sealer of Weights and Measures by two years until January 1, 2029.

FISCAL EFFECT:

This bill is not keyed fiscal by Legislative Counsel.

COMMENTS:

1. Purpose. The California Agricultural Commissioners and Sealers Association is the sponsor of this bill. According to the author, “Inflation since 2008 has been roughly 20%. Counties are losing money on this program, and this bill would bring the fees in line with what it currently costs to run the program.”
2. Background.

Weights and measures. Enforcement of California's weights and measures laws and regulations is the responsibility of the DMS under the DFA. The DMS works with county sealers of weights and measures who, under the supervision and direction of the Secretary of DFA, carry out many of the weights and measures inspection and enforcement activities at the local level. County weights and measures officials inspect and test packaged commodities and all commercially used devices. Weights and measures officials have the authority to issue citations for misdemeanor and infraction violations involving weights and measures laws. DFA is required to adopt necessary regulations governing the inspection frequency of all commercially used weights, measures, and weighing apparatus in the state.

County Sealers. County sealers of weights and measures, are appointed by their respective county boards of supervisors, and are responsible for ensuring that all commercial scaling and volumetric measuring devices are providing accurate readings, to ensure that customers pay the correct amount for the product they are purchasing. County sealers regulate a significant number of weighing devices including petroleum fuel meters, utility submeters, odometers, taximeters, LPG meters, and all grocery, butchery, jewelry, postal, vehicle, luggage and shipping scales. These weighing devices are tested for accuracy and inspected to determine if they are appropriate for their intended use and provide accurate readings. Once that is determined, the inspector certifies the device by affixing a paper seal to it. If a device is inaccurate, the county sealers require it be removed from use until serviced, repaired and recalibrated. Current law requires any weighing device used for commercial purposes to be registered with the county sealer.

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.

The fees authorized for weights and measure device registration are specified in statute. Specifically, BPC § 12240 sets a “maximum” fee that can be charged for each device or location for which a required inspection is necessary depending on the type of scale or measuring device being used. Counties are authorized to charge anywhere up to the maximum in order to reimburse their costs of inspection or testing of the weighing or measuring device.

This bill would increase the statutory caps or maximum fees that can be charged to businesses in order to sufficiently fund the County Sealers’ inspection and testing programs.

These fee increases are as follows:

• The business location fee, assessed for each business location that (a) contains a device to be inspected or tested, (b) requires the use of specialized testing equipment, and (c) requires a single visit, would increase from $100 to $120 per business location.
• If the owner of a business such as a marina, mobile home park, recreational vehicle park, or apartment complex also owns and is responsible for the utility submeters at these locations, then the maximum fee for each water submeter would increase from $2 to $6 per device, and for each natural gas vapor submeter would increase from $4 to $10 per device. Each of these fees is assessed per unit, space, or apartment that is submetered.
• The maximum fee for a computing scale would increase from $23 to $25, while the overall maximum fee for each business location would increase from $1,000 to $1,200.
• The fee for commercial weighing and measuring devices not otherwise specified in statute would increase from $20 to $26 per device, while the overall maximum fee for each business location would increase from $1,000 to $1,200.

Fee History. 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 was amended in 1983, 1987, 1991, 1992, 1993, 1994, 1996, 1998, 2005, and 2018 to add additional devices to the registration program and to adjust the schedule of maximum fees for certain devices. Past legislation has also contained a sunset provision for a county board of supervisors to charge a fee or registration fee to cover the cost of inspecting and testing weighing devices. The last comprehensive fee increase was in 2012. More recently, AB 347 (Chau, Chapter 521, Statutes of 2018) raised the fee for computing devices from $20 to $23 and revised the current scale category used for jewelry and prescriptions to include Class II weighing devices or those scales meeting the designs specifications for Class II weighing devices.

Information provided by the sponsors note that in order to determine the appropriate fee to be charged to cover the cost associated with inspections, the county sealers review the required county monthly report which details the time spent reviewing devices and costs associated with that inspection. Upon noticing and determination that the costs for inspecting certain devices were exceeding the fees collected, the fees proposed by this bill are the result of that analysis. That assessment helps identify why only some of the maximum fees authorized to be charged are proposed to be increased in this bill.

In addition, this bill updates definitions of certain weighing devices to ensure that as new technology is created related to the types of scales, the fee assessed based on the scale being used is accurate. This bill revises the definition of a computing scale, which is typically used in the grocery business, to include electronic counter scales interfaced with a cash register or any point-of-sale system. Scales in this category have a weighing capacity of less than 100 pounds, and the revised definition will not change the type of weighing that this scale should be used for. In addition, this bill revises the definition of those weighing devices which are other than computing scales, to include an interfaced electronic counter. These scales have a weighing capacity of at least 100 pounds but less than 2,000 pounds and the definition update is to capture new technology in scales, not to change the purpose of the scale. Additionally, this bill extends the sunset date on the Board of Supervisors’ authority to charge a fee to fund the local weighmaster’s program by an additionally two years-from January 1, 2027 to January 1, 2029.

1. Related Legislation. AB 694 (Committee on Privacy and Consumer Protection, Chapter, 525, Statutes of 2021) extends the authority of a county's board of supervisors to charge certain fees and extend related provisions. This bill makes minor updates and nonsubstantive changes to other statutes.

AB 347 (Chau, Chapter 521, Statutes of 2018) extended, until January 1, 2022, the authority for a county sealer to recover the costs related to the inspection and testing of weighing and measuring devices; increases the fee cap for the inspection of a computing scale by $3 and adds a Class II weighing scale.

AB 296 (Dodd, Chapter 133, Statutes of 2015), Extends the authority of the Board of Supervisors of a county and the 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.

AB 1623 (Yamada, Chapter 234, Statutes of 2012), extended the sunset date on the county board of supervisors authority to charge fees to recover the costs of the county sealer to perform specified inspections until January 1, 2018, and establishes or revises 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.

1. Arguments in Support. The California Agricultural Commissioners and Sealers Association writes in support, “The current device fees and business location fee have not been adjusted to reflect increased costs to provide this mandatory annual service, and counties are operating at an ongoing significant deficit.”

The County of Santa Clara writes in support and notes, “The extension of board of supervisors’ authority to charge an annual registration fee is vital for the protection of consumers against fraud in the marketplace, and for promotion of equity in the business community.”

The Placer County Board of Supervisors writes in support and notes, “County weights and measures programs provide a valuable consumer protection service that helps to ensure that consumers will be charged the correct price when purchasing goods sold by weight or measurement.”

The Orange County Board of Supervisors writes in support, “This bill would allow the fee cap to be increased, which would enable the County to allocate appropriate staffing levels to conduct needed inspections, respond to consumers, and ensure a fair marketplace that protects all businesses.”

SUPPORT AND OPPOSITION:

Support:

California Agricultural Commissioners & Sealers Association (Sponsor)
County of Orange

County of Placer
County of Santa Clara

Opposition:

None received

-- END --

ASSEMBLY THIRD READING

ATR Bill Id:AB 1304

Author:(Papan)

As Amended Ver:April 17, 2023

Majority vote

SUMMARY

Increases the permissible fees that a County Board of Supervisors may charge to fund the operations of the County Sealer of Weights and Measures.

Major Provisions

Increases certain permissible registration fees that a County Board of Supervisors may charge to fund the operation of the County Sealer of Weights and Measures, as follows:

1. The maximum business location fee increases from $100 to $120 per business location.
2. The maximum fee for residential water submeters increases from $2 to $6 per device
3. The maximum fee for residential natural gas vapor submeters increases from $4 to $10 per device.
4. The fee for computing scales increases from $23 to $25 per device, while the maximum fee for each business location increases from $1,000 to $1,200 per location.
5. The catch-all fee for commercial weighing and measuring devices not otherwise identified in statute increases from $20 per device to $26 per device, while the maximum fee for each business location increases from $1,000 to $1,200 per location.

COMMENTS

Background. This bill would increase the permissible fees that County Sealers of Weights and Measures can charge to fund their inspection and verification of the accuracy of certain measuring devices. This increase is sought because of significant increases in County Sealers' costs of operations, not least because of significant inflation over the past two years.

County Sealers are responsible for ensuring that all of the commercial scaling and volumetric measuring devices used in a county provide accurate readings, and are not installed and used to facilitate fraud. Statutory authorization for the office of the County Sealer is more than a century old; the oldest authorizing statute uncovered by Committee staff was enacted in 1913.

The County Sealer's seal is affixed to many measuring devices one encounters in the course of daily life in California. County Sealers ultimately make sure that if the readout at the gas station says that you have pumped seven gallons of gasoline, that the pump in question actually dispensed seven gallons; that if the scale at the supermarket says that you are buying two pounds of steak, that the scale accurately measured two pounds; and that if the natural gas submeter in your apartment says that you used 2,000 cubic feet of natural gas last month, that you were actually provided 2,000 cubic feet of gas.

It is crucial to note that County Sealers protect both consumers and retailers. Consumers are obviously protected against fraud, and save money, if they can trust the measurements they are provided when purchasing goods and paying for utilities. As the sponsor writes, "[T]he impact of a commercial transaction that results in an 'undersold' item disproportionately impacts indigent consumers since they are not receiving the full amount of commodities they are due based on faulty measure. […] When every dollar counts, it is critical that you get every ounce you paid for."

County Sealers also protect honest businesses from dishonest ones: a business that is able to reap extra revenue by cheating its customers ever-so-slightly on many transactions is one that gains an unfair advantage over law-abiding competitors that provide their customers with accurate measurements.

Existing law authorizes counties to charge fees to recover the costs incurred by County Sealers when they perform required inspections. These inspections cover devices such as retail fuel dispensing meters; water, electric, and natural gas vapor submeters in mobile home parks, apartment complexes, and boat docks; truck scales; cattle scales; grocery counter scales; taxi meters; and a host of other devices that weigh or measure commodities that are offered for sale.

What this bill would do. This bill would increase the statutory caps on certain fees that counties may charge businesses in order to sufficiently fund County Sealers' inspection and testing programs.

These fee increases are as follows:

1. The business location fee, assessed for each business location that a) contains a device to be inspected or tested, b) requires the use of specialized testing equipment, and c) requires a single visit, would increase from $100 to $120 per business location.
2. If the owner of a business such as a marina, mobilehome park, recreational vehicle park, or apartment complex also owns and is responsible for the utility submeters at these locations, then the maximum fee for each water submeter would increase from $2 to $6 per device, and for each natural gas vapor submeter would increase from $4 to $10 per device. Each of these fees is assessed per unit, space, or apartment that is submetered.
3. The maximum fee for a computing scale would increase from $23 to $25, while the overall maximum fee for each business location would increase from $1,000 to $1,200.
4. The catch-all fee for commercial weighing and measuring devices not otherwise identified in statute would increase from $20 to $26 per device, while the overall maximum fee for each business location would increase from $1,000 to $1,200.

Analysis. Justification for these fee increases lies with increases in operational costs for County Sealers. Increased costs result in an inability to perform inspections with the frequency required under law and/or operating deficits for counties forced to backfill the County Sealer's costs of operation.

The business location fee in #1 above was established by AB 889 (Ruskin), Chapter 529, Statutes of 2005. The fee took effect on January 1, 2008, and has remained unchanged ever since. According to the United States (U.S.) Bureau of Labor Statistics Consumer Price Index (CPI) Inflation Calculator, $100 in January 2008 has the same buying power as $143 in March 2023. (See https://www.bls.gov/data/inflation_calculator.htm.) By this standard, an increase in the statutory fee to $120 appears reasonable.

The remaining fees in #2-4 above were established by AB 1623 (Yamada), Chapter 234, Statutes of 2012, and took effect on January 1, 2013. According to the CPI Inflation Calculator, $2 in January 2013 (the permissible fee for water submeters) has the same buying power as $2.62 in March 2023, $4 (the permissible fee for natural gas vapor submeters) has the same buying power as $5.24 in March 2023, $20 (the permissible catch-all fee for other devices) has the same buying power as $26.21 in March 2023, and $23 (the permissible fee for a computing scale) has the same buying power as $30.15 in March 2023. Finally, $1,000 in January 2013 has the same buying power as $1,310.73 in March 2023.

Using the inflation standard, the fee increases in #3 and #4 also appear reasonable. Which leaves the fee increases in #2 for submeters, which significantly exceed the increase in inflation over this time. The bill's sponsor, the California Agricultural Commissioners and Sealers Association, justifies this increase as follows. Inspection and testing of water and natural gas vapor submeters was first authorized in statute by AB 1623. The figures used in that bill have proven to be insufficient to cover the time and expense required, particularly to re-test devices that are out of compliance. The Association has surveyed its membership as to the actual cost of inspecting and testing these submeters: the statewide average is $6 per water submeter and $10 per vapor submeters.

In light of the data, these fee increases appear reasonable – particularly in light of the fact that these increases may remain fixed in statute until January 1, 2027, when authorization for counties to charge fees to cover County Sealers' costs of operation next sunsets.

According to the Author

California Weights and Measures professionals ensure a fair marketplace by verifying products are sold by accurate weights, measures, and prices. This is the most basic and fundamental principle of the marketplace that dates back to the earliest civilizations. If an item for sale is represented by the pound, gallon or meter, the consumer must be able to trust that the device used to establish that measurement and price [is] accurate and trustworthy.

This important program protects consumers so they can be confident that they "get what they pay for," and allows for true value comparison protecting businesses by ensuring fair competition in the marketplace.

Arguments in Support

Bill sponsor California Agricultural Commissioners and Sealers Association explains the negative impact that inadequate fees impose on county budgets:

Current law mandates that each and every device that measures weight, volume, length or any other unit of measurement that is used to determine the price of a commercial transaction must be registered, tested and sealed by a county sealer of weights and measures. Current law places a maximum "cap" that can be charged, annually, per device by a county sealer to provide revenue to fund the county inspection program. […] Since the caps are set in statute, counties cannot charge more than the amounts listed in the Code, even if a cost study demonstrates that the service provided exceeds the maximum that can be charged under current law. The current device fees and business location fee have not been adjusted to reflect increased costs to provide this mandatory annual service, and counties are operating at an ongoing significant deficit.

Arguments in Opposition

No opposition on file

FISCAL COMMENTS

None

VOTES

ASM PRIVACY AND CONSUMER PROTECTION: 10-0-1

YES: Gabriel, Joe Patterson, Bauer-Kahan, Bennett, Essayli, Irwin, Lowenthal, Papan, Wicks, Wilson

ABS, ABST OR NV: Vince Fong

UPDATED

VERSION: April 17, 2023

CONSULTANT: Jith Meganathan / P. & C.P. / (916) 319-2200 FN: 0000259

Date of Hearing: April 25, 2023

ASSEMBLY COMMITTEE ON PRIVACY AND CONSUMER PROTECTION

Jesse Gabriel, Chair

ABPCA Bill Id:AB 1304 (

Author:Papan) – As Amended Ver:April 17, 2023

SUBJECT: Weights and measures: inspection: fees

SYNOPSIS

Existing law authorizes counties to charge fees to recover the costs incurred by County Sealers of Weights and Measures when they perform required inspection and verification of the accuracy of designated measuring devices. This bill would increase the permissible fees that County Sealers can charge in order to fund their inspection and verification programs. This increase is sought because of significant increases in County Sealers’ costs of operations, not least because of significant inflation over the past two years.

County Sealers are responsible for ensuring that all of the commercial scaling and volumetric measuring devices used in a county provide accurate readings, and are not installed and used to facilitate fraud. Their inspections cover devices such as retail fuel dispensing meters; water, electric, and natural gas vapor submeters in mobile home parks, apartment complexes, and boat docks; truck scales; cattle scales; grocery counter scales; taxi meters; and a host of other devices that weigh or measure commodities offered for sale.

County Sealers protect both consumers and retailers. Consumers are obviously protected against fraud, and save money, if they can trust the measurements they are provided when purchasing goods and paying for utilities. County Sealers also protect honest businesses from dishonest ones: a business that is able to reap extra revenue by cheating its customers ever-so-slightly on many transactions is one that gains an unfair advantage over law-abiding competitors that provide their customers with accurate measurements.

By appropriately and adequately funding County Sealers, the Legislature can both ensure that Sealers perform inspections with the frequency required under law and prevent counties from operating at a deficit in order to fund Sealers’ operations.

The bill is sponsored by the California Agricultural Commissioners and Sealers Association, and supported by the County of Santa Clara. The measure has no opposition on file.

SUMMARY: Increases the permissible fees that a County Board of Supervisors may charge to fund the operations of the County Sealer of Weights and Measures. Specifically, this bill:

1. Increases certain permissible registration fees that a county board of supervisors may charge to fund the operation of the county sealer of weights and measures, as follows:
   1. The maximum business location fee increases from $100 to $120 per business location.
   2. The maximum fee for residential water submeters increases from $2 to $6 per device
   3. The maximum fee for residential natural gas vapor submeters increases from $4 to $10 per device.
   4. The fee for computing scales increases from $23 to $25 per device, while the maximum fee for each business location increases from $1,000 to $1,200 per location.
   5. The catch-all fee for commercial weighing and measuring devices not otherwise identified in statute increases from $20 per device to $26 per device, while the maximum fee for each business location increases from $1,000 to $1,200 per location.

EXISTING LAW:

1. Establishes in each county the office of county sealer of weights and measures, and grants the sealer the power to appoint deputies or inspectors and to hire clerks. (Bus. & Prof. Code § 12200.)
2. Requires a county to pay the salary and other compensation for the county sealer, and any of the sealer’s deputies, inspectors, and clerks, in the same time and manner as other county officers. (Bus. & Prof. Code § 12201.1.)
3. Permits a county board of supervisors to charge an annual registration fee to recover the county sealer’s costs to inspect or test weighing and measuring devices. (Bus. & Prof. Code § 12240(a).)
4. Limits the fee that may be collected under 3) to the total cost of actual inspection and testing. (Ibid.)
5. Decrees that the annual registration fee for a business that uses a commercial weighing or measuring device consists of a business location fee, a department administrative fee, and a device fee. (Bus. & Prof. Code § 12240(f).)
6. Defines “business location” as a location that uses one or more categories or types of commercial devices required to be inspected or tested by the county sealer, that requires the use of specialized testing equipment, and that necessitates not more than one inspection trip. (Bus. & Prof. Code § 12240(u).)
7. Limits the business location fee to no more than $100 per business location. (Bus. & Prof. Code § 12240(f).)
8. Provides that the department administrative fee is to be established by the Secretary of Agriculture by regulation. (Bus. & Prof. Code § 12241.)
9. Establishes the following maximum device fees:
   1. If the owner of a marina, mobilehome park, recreational vehicle park, or apartment complex also owns and is responsible for the utility submeters at these locations, then the maximum fee for each water submeter is $2 per device and for each natural gas vapor submeter is $4 per device, per space or apartment. (Bus. & Prof. Code § 12240(g)(1).)
   2. The maximum fee for a computing scale is $23, with an overall maximum fee for each business location of $1,000. (A computing scale is defined as a weighing device, with a capacity of less than 100 pounds, that indicates the monetary value of a commodity it weighs.) (Bus. & Prof. Code § 12240(n).)
   3. The catch-all fee for commercial weighing and measuring devices not otherwise identified in statute is $20 per device, with an overall maximum fee for each business location of $1,000. (Bus. & Prof. Code § 12240(t).)

FISCAL EFFECT: As currently in print this fill is keyed non-fiscal.

COMMENTS:

1) Background. This bill would increase the permissible fees that County Sealers of Weights and Measures can charge to fund their inspection and verification of the accuracy of certain measuring devices. This increase is sought because of significant increases in County Sealers’ costs of operations, not least because of significant inflation over the past two years.

County Sealers are responsible for ensuring that all of the commercial scaling and volumetric measuring devices used in a county provide accurate readings, and are not installed and used to facilitate fraud. Statutory authorization for the office of the County Sealer is more than a century old; the oldest authorizing statute uncovered by Committee staff was enacted in 1913.

The County Sealer’s seal is affixed to many measuring devices one encounters in the course of daily life in California. County Sealers ultimately make sure that if the readout at the gas station says that you have pumped seven gallons of gasoline, that the pump in question actually dispensed seven gallons; that if the scale at the supermarket says that you are buying two pounds of steak, that the scale accurately measured two pounds; and that if the natural gas submeter in your apartment says that you used 2,000 cubic feet of natural gas last month, that you were actually provided 2,000 cubic feet of gas.

It is crucial to note that County Sealers protect both consumers and retailers. Consumers are obviously protected against fraud, and save money, if they can trust the measurements they are provided when purchasing goods and paying for utilities. As the sponsor writes, “[T]he impact of a commercial transaction that results in an ‘undersold’ item disproportionately impacts indigent consumers since they are not receiving the full amount of commodities they are due based on faulty measure. […] When every dollar counts, it is critical that you get every ounce you paid for.”

County Sealers also protect honest businesses from dishonest ones: a business that is able to reap extra revenue by cheating its customers ever-so-slightly on many transactions is one that gains an unfair advantage over law-abiding competitors that provide their customers with accurate measurements.

Existing law authorizes counties to charge fees to recover the costs incurred by County Sealers when they perform required inspections. These inspections cover devices such as retail fuel dispensing meters; water, electric, and natural gas vapor submeters in mobile home parks, apartment complexes, and boat docks; truck scales; cattle scales; grocery counter scales; taxi meters; and a host of other devices that weigh or measure commodities that are offered for sale.

2) Author’s statement. According to the author:

California Weights and Measures professionals ensure a fair marketplace by verifying products are sold by accurate weights, measures, and prices. This is the most basic and fundamental principle of the marketplace that dates back to the earliest civilizations. If an item for sale is represented by the pound, gallon or meter, the consumer must be able to trust that the device used to establish that measurement and price [is] accurate and trustworthy.

This important program protects consumers so they can be confident that they “get what they pay for,” and allows for true value comparison protecting businesses by ensuring fair competition in the marketplace.

3) What this bill would do. This bill would increase the statutory caps on certain fees that counties may charge businesses in order to sufficiently fund County Sealers’ inspection and testing programs.

These fee increases are as follows:

1. The business location fee, assessed for each business location that (a) contains a device to be inspected or tested, (b) requires the use of specialized testing equipment, and (c) requires a single visit, would increase from $100 to $120 per business location.
2. If the owner of a business such as a marina, mobilehome park, recreational vehicle park, or apartment complex also owns and is responsible for the utility submeters at these locations, then the maximum fee for each water submeter would increase from $2 to $6 per device, and for each natural gas vapor submeter would increase from $4 to $10 per device. Each of these fees is assessed per unit, space, or apartment that is submetered.
3. The maximum fee for a computing scale would increase from $23 to $25, while the overall maximum fee for each business location would increase from $1,000 to $1,200.
4. The catch-all fee for commercial weighing and measuring devices not otherwise identified in statute would increase from $20 to $26 per device, while the overall maximum fee for each business location would increase from $1,000 to $1,200.

4) Analysis. Justification for these fee increases lies with increases in operational costs for County Sealers. Increased costs result in an inability to perform inspections with the frequency required under law and/or operating deficits for counties forced to backfill the County Sealer’s costs of operation.

The business location fee in #1 above was established by AB 889 (Ruskin, Chap. 529, Stats. 2005). The fee took effect on January 1, 2008, and has remained unchanged ever since. According to the U.S. Bureau of Labor Statistics Consumer Price Index (CPI) Inflation Calculator, $100 in January 2008 has the same buying power as $143 in March 2023. (See https://www.bls.gov/data/inflation_calculator.htm.) By this standard, an increase in the statutory fee to $120 appears reasonable.

The remaining fees in #2-4 above were established by AB 1623 (Yamada, Chap. 234, Stats. 2012) and took effect on January 1, 2013. According to the CPI Inflation Calculator, $2 in January 2013 (the permissible fee for water submeters) has the same buying power as $2.62 in March 2023, $4 (the permissible fee for natural gas vapor submeters) has the same buying power as $5.24 in March 2023, $20 (the permissible catch-all fee for other devices) has the same buying power as $26.21 in March 2023, and $23 (the permissible fee for a computing scale) has the same buying power as $30.15 in March 2023. Finally, $1,000 in January 2013 has the same buying power as $1,310.73 in March 2023.

Using the inflation standard, the fee increases in #3 and #4 also appear reasonable. Which leaves the fee increases in #2 for submeters, which significantly exceed the increase in inflation over this time. The bill’s sponsor, the California Agricultural Commissioners and Sealers Association, justifies this increase as follows. Inspection and testing of water and natural gas vapor submeters was first authorized in statute by AB 1623. The figures used in that bill have proven to be insufficient to cover the time and expense required, particularly to re-test devices that are out of compliance. The Association has surveyed its membership as to the actual cost of inspecting and testing these submeters: the statewide average is $6 per water submeter and $10 per vapor submeters.

In light of the data, these fee increases appear reasonable—particularly in light of the fact that these increases may remain fixed in statute until January 1, 2027, when authorization for counties to charge fees to cover County Sealers’ costs of operation next sunsets.

5) Related legislation. AB 694 (Privacy and Consumer Protection, Chap. 525, Stats. 2021), among other things, extended the authority of county boards of supervisors to charge fees to recover the costs of the county sealer to perform specified duties until January 1, 2027.

AB 347 (Chau, Chap. 521, Stats. 2018), among other things, extended the authority of county boards of supervisors to charge fees to recover the costs of the county sealer to perform specified duties until January 1, 2022.

AB 296 (Dodd, Chap. 133, Stats. 2015) extended the authority of county boards of supervisors to charge fees to recover the costs of the county sealer to perform specified duties until January 1, 2019.

AB 1623 (Yamada, Chap. 234, Stats. 2012) extended the authority of county boards of supervisors to charge fees to recover the costs of the county sealer to perform specified duties until January 1, 2016, and established and/or revised various device fee caps.

AB 2361 (Ruskin, Chap. 260, Stats. 2010) extended the authority of county boards of supervisors to charge fees to recover the costs of the county sealer to perform specified duties until January 1, 2013.

AB 889 (Ruskin, Chap. 529, Stats. 2005) extended the authority of county boards of supervisors to charge fees to recover the costs of the county sealer to perform specified duties until January 1, 2011. The bill also established a two-tiered fee schedule that provided both a location fee and a device fee, in order to more effectively capture the cost of the initial device inspection.

ARGUMENTS IN SUPPORT: Bill sponsor California Agricultural Commissioners and Sealers Association explains the negative impact that inadequate fees impose on county budgets:

Current law mandates that each and every device that measures weight, volume, length or any other unit of measurement that is used to determine the price of a commercial transaction must be registered, tested and sealed by a county sealer of weights and measures. Current law places a maximum “cap” that can be charged, annually, per device by a county sealer to provide revenue to fund the county inspection program. […] Since the caps are set in statute, counties cannot charge more than the amounts listed in the Code, even if a cost study demonstrates that the service provided exceeds the maximum that can be charged under current law. The current device fees and business location fee have not been adjusted to reflect increased costs to provide this mandatory annual service, and counties are operating at an ongoing significant deficit.

REGISTERED SUPPORT / OPPOSITION:

Support

California Agricultural Commissioners and Sealers Association (sponsor)

County of Santa Clara

Opposition

None on file

Analysis Prepared by: Jith Meganathan / P. & C.P. / (916) 319-2200