BILL ANALYSIS
SB 627
Page 1
Date of Hearing: July 15, 2009
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Kevin De Leon, Chair
SB 627 (Calderon) - As Amended: July 7, 2009
Policy Committee: Business and
Professions Vote: 10 - 0
Urgency: No State Mandated Local Program:
Yes Reimbursable: No
SUMMARY
This bill requires core recyclers to comply with additional
recordkeeping and identification procedures and new payment
restrictions when purchasing catalytic converters.
Specifically, this bill:
1)Requires a core recycler to maintain a written record for two
years of the place and date of purchase, the name and
identification of the seller of the converter, the vehicle
license number of the car, and other information about the
purchase and sale of the catalytic converter.
2)Prohibits a core recycler from providing payment for a
catalytic converter unless the payment is made by check, the
check is mailed or provided no earlier than three days after
the date of sale, and the core recycler obtains a photo or
video of the seller (unless the seller is a business), a
written statement regarding the origin of the catalytic
converter, and other identifying information.
3)Defines a core recycler as a person or business that buys used
individual catalytic converters, transmissions, or other parts
previously removed from a vehicle; a person or business that
buys a vehicle that may contain these parts is not a core
recycler.
4)States that a person who makes false statements regarding the
information required by this legislation is guilty of a
misdemeanor, punishable by a fine of $1,000 for the first
conviction, $2,000 for the second, and $4,000 for the third
and subsequent convictions.
SB 627
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FISCAL EFFECT
Potential nonreimbursable costs to local government for
additional enforcement, offset to some extent by additional fine
revenues.
COMMENTS
1)Background . To deter the theft of scrap metals from both
public and private property, existing law requires junk
dealers and recyclers who purchase scrap metals to collect and
maintain certain identifying information from the sellers of
these goods. The availability of such records presumably makes
it easier for law enforcement to investigate and hopefully
resolve a crime. Existing law creates similar requirements for
other secondhand dealers, such as pawnbrokers, who also deal
with goods that have a greater than average chance of being
stolen.
2)Purpose . The author is concerned about the continuing theft of
scrap metal. He contends that the theft of scrap metal is one
of the fastest growing crimes in California. He notes that in
recent years, the costs of several metals, such as those found
in catalytic converters, made the theft and then sale of
converters increasingly profitable. "Thieves prey on parking
lots, going from car to car, taking their catalytic
converters. The valuable metals inside (platinum and rhodium
being the most common) are then exchanged for money when the
thief takes the converters to metal recyclers."
3)Related Legislation . SB 691 (Calderon; Chapter 730, Statutes
of 2008) requires junk dealers and recyclers to comply with
additional recordkeeping and identification procedures and new
payment restrictions when purchasing nonferrous materials, as
defined.
SB 447 (Maldonado; Chapter 732, Statutes of 2008) requires a
junk dealer or recycler to report information about each sale
or purchase of junk to the chief of police of the city or the
sheriff of the county in which the junk dealer or
recycler purchased the junk, in the same manner as required by
a secondhand dealer or coin dealer, as specified.
SB 627
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AB 1778 (Ma, Chapter 733, Statutes of 2008) prohibits a junk
dealer or recycler from providing payment for newspaper valued
at $50 or more or California redemption value (CRV) containers
valued at $100 or more unless certain requirements are met
including payment by check or electronic transfer, and copies
of the seller's identification, which must be retained for two
years.
Analysis Prepared by : Julie Salley-Gray / APPR. / (916)
319-2081