HD35 - Long-Term Plan for Funding of the Weights and Measures Program


Executive Summary:
The 2003 Appropriations Act reduced the general fund appropriations of the Virginia Department of Agriculture and Consumer Services (VDAGS) to carry out the Weights and Measures program by $650,000. The 2003 Appropriations Act also required the Commissioner of Agriculture and Consumer Services to collect a fee of $9.00 beginning July 1, 2003 from all entities subject to weights and measures regulation pursuant to Chapter 35 of Title 3.1 of the Code of Virginia for each device subject to inspection. The 2004 Appropriations Act further reduced the fee to $4.00 for each commercial weighing and measuring device and directs that the Commissioner shall develop a long-term plan to adequately fund the weights and measures program.

The report represents the work of the Agency and an industry work group during the past two years. The plan's objective is to develop a financial strategy for the program that will protect the public and the business sector without undue regulatory burdens. This plan addresses the following factors: (1) the likelihood of additional general fund resources for this activity; (2) projected workloads, including the total number of devices subject to regulation and by type of device; (3) cost containment strategies in regulatory management through increased reliance upon technology; (4) options to fund the program or a portion of the program through a flexible fee schedule that considers the number of devices used by a business establishment and the time and resources to test such devices; and (5) legislation to implement the plan.

The workgroup identified the following findings:

• The Weights and Measures Program benefits Virginia's businesses and consumers alike.

• Nearly 107,000 weighing and measuring devices of various types are subject to inspection in Virginia. Seventy-five percent of the states that responded to a national survey (30/40) reported they have either a registration fee or licensing fee for weighing and measuring devices.

• Businesses believe the Commonwealth's Weights and Measures Program should be supported by general fund tax dollars.

• Given the uncertain fiscal climate of the past few years and a reluctance to create ongoing general fund obligations for future budgetary cycles, general funds have been reduced and are limited for the operation and support of the Virginia Weights and Measures Program.

Recommendations:

Weights and Measures regulation is an important function of government. Therefore, VDACS recommends that this program continue to provide the level of protection that can be supported through available funding. Realizing that general funds are limited due to continuing fiscal challenges and that industry does not support the funding of this program through increases in fees, VDACS recommends the continuation of the $4.00 per device fee, expansion of authority extended to Weights and Measures Service Technicians, and removal of the mandated twelve-month inspection interval in order to continue the program. This combination of utilizing the existing revenue source and efficiencies in the operation of the Weights and Measures Program is the most viable option for serving business and consumers at this level of funding.