BILL ANALYSIS Ó AB 1508 Page 1 ASSEMBLY THIRD READING AB 1508 (Carter) As Amended April 19, 2012 Majority vote BUSINESS & PROFESSIONS 9-0 ----------------------------------------------------------------- |Ayes:|Hayashi, Bill Berryhill, | | | | |Allen, Butler, Eng, | | | | |Hagman, Hill, Ma, Smyth | | | | | | | | ----------------------------------------------------------------- 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 Page 3 Analysis Prepared by : Rebecca May / B.,P. & C.P. / (916) 319-3301 FN: 0003408