BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 1508
                                                                  Page  1


          ASSEMBLY THIRD READING
          AB 1508 (Carter)
          As Amended  April 19, 2012
          Majority vote 

           BUSINESS & PROFESSIONS        9-0                                
                              
          
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          |Ayes:|Hayashi, Bill Berryhill,  |     |                          |
          |     |Allen, Butler, Eng,       |     |                          |
          |     |Hagman, Hill, Ma, Smyth   |     |                          |
          |     |                          |     |                          |
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          SUMMARY  :  Revises the exemption on the sale of nonferrous 
          materials with a value under $20 from certain payment 
          restrictions by requiring the majority of the transaction be for 
          the redemption of beverage containers, as specified.

           EXISTING LAW  :

          1)Requires junk dealers and recyclers to keep written records of 
            all sales and purchases made in the course of their business, 
            and makes a violation of recordkeeping requirements a crime.

          2)Prohibits a junk dealer or recycler from providing payment for 
            nonferrous materials unless the payment is made by mailed 
            check or cash or the check is provided three days after the 
            date of sale, and the dealer or recycler obtains a photograph 
            or video of the seller and certain other identifying 
            information, as specified, and retains this information for a 
            specified period of time.

          3)Exempts from payment restrictions the redemption of nonferrous 
            materials with a value under $20 if the primary purpose of the 
            transaction is the redemption of beverage containers, as 
            specified.

          4)Provides for the California Beverage Container Recycling and 
            Litter Reduction Act (Act) administered by the Division of 
            Recycling in the Department of Resources Recycling and 
            Recovery.

           FISCAL EFFECT  :  Unknown.  This bill is keyed non-fiscal by the 








                                                                  AB 1508
                                                                  Page  2


          Legislative Counsel.

           COMMENTS  :  According to the author, "When AB 844 Ý(Berryhill), 
          Chapter 731, Statutes of 2008] first became effective, we saw a 
          dramatic decrease in metal thefts.  However, this bill provided 
          a loophole in the enforcement of this law.  If the primary 
          purpose of the transaction is for redeeming California 
          Redemption Value (cans, bottles and plastic), individuals are 
          able to redeem cash for their scrap metals if it remains under 
          $20.   

          "An example of this would be, if a person cleans up their garage 
          and has a small bag of aluminum cans and an extension cord he 
          wants to get rid of, he can scrap the materials for under the 
          $20 threshold and get paid in cash immediately.  This loophole 
          has resulted in increased metal thefts.  
            
          "According to the San Bernardino County Sherriff's Department, 
          metal thefts have increased again to almost the same level it 
          was prior to the passage of AB 844 because metal thieves became 
          aware of this loophole.  In order to obtain quick cash, thieves 
          use pieces stolen from buildings and infrastructure to sell to 
          recycling companies, while combining their materials with 
          aluminum cans.  Therefore, it is hard to determine the seller's 
          primary purpose because thieves began packaging their stolen 
          metal into $20 increments."

          AB 844 (Berryhill), Chapter 731, Statutes of 2008, required junk 
          dealers and recyclers to comply with additional recordkeeping 
          requirements and new payment restrictions when purchasing 
          nonferrous materials.  Junk dealers were now prohibited from 
          providing payment for nonferrous materials unless he or she 
          obtained a copy of the seller's driver's license, a photo or 
          video of the material being purchased, and a thumbprint of the 
          seller.  Additionally, payment was restricted to a check mailed 
          to the seller or by cash or check to be collected by the seller 
          three days after the date of sale.  The new payment restrictions 
          were exempted for individuals redeeming nonferrous materials 
          with a value less than $20 in a single transaction, when the 
          primary purpose of the transaction is the redemption of beverage 
          containers under the Act, or if the junk dealer and seller 
          completed five or more transactions per month.

          








                                                                 AB 1508
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          Analysis Prepared by  :    Rebecca May / B.,P. & C.P. / (916) 
          319-3301 


                                                                FN: 0003408