BILL ANALYSIS �
AB 841
Page 1
ASSEMBLY THIRD READING
AB 841 (Torres)
As Amended April 10, 2013
Majority vote
BUSINESS & PROFESSIONS 9-3
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|Ayes:|Gordon, Bocanegra, | | |
| |Campos, Dickinson, | | |
| |Eggman, Holden, Mullin, | | |
| |Skinner, Ting | | |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Jones, Maienschein, Wilk | | |
| | | | |
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SUMMARY : Requires a junk dealer or recycler to pay a seller of
nonferrous materials by mailed check only, and prohibits sellers
from picking up a cash or check payment in person.
Specifically, this bill :
1)Prohibits a junk dealer or recycler from paying cash to a
seller for nonferrous metals.
2)Prohibits a junk dealer or recycler from allowing a seller to
pick up cash or check payment on or after the third business
day, as specified.
FISCAL EFFECT : None. This bill is keyed non-fiscal by the
Legislative Counsel.
COMMENTS :
1)Purpose of this bill . This bill will require a payment for
nonferrous scrap metal purchased by a junk dealer or recycler
to be a check only and be mailed directly to the seller as
opposed to the current payment method which allows a seller to
pick up cash or check payment from the junk dealer or recycler
after the third business day. This bill is author sponsored.
2)Author's statement . According to the author, "The copper
crime wave continues to be a problem not only in California,
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but across the nation. According to a report from the
National Insurance Crime Bureau (NICB), thefts of copper and
other metals have increased [because of] rising prices for the
stolen recyclables. A total of 25,083 theft claims of copper,
bronze, brass and aluminum were submitted in the three years
ending December 31, 2011. Ninety-six percent of the thefts
were copper. California ranks 4th in the nation generating
the most metal theft insurance claims with 1,348. The theft
of metal from homes, utilities and public areas has negative
effects on families, public safety, business and agriculture.
AB 841 assists law enforcement in catching copper thieves by
requiring recyclers to issue check payments for metal
recycling."
3)Metal theft . Metal theft continues to be a problem in
California. The Riverside Press Enterprise reported on March
10, 2013, that "metal thieves are hitting inland freeways
hard-often during the day-and occasionally making off with
surprisingly large items from construction sites?in another
case, a freeway light pole, which was knocked down in a crash,
was stolen before workers could repair it."
In another article from the Riverside Press Enterprise, it
reported that in "Corona, like other cities, private
residences and businesses have been hit hard by metal thieves.
Scrap yards will pay almost 3 dollars for non-insulated
copper wire and almost 2 dollars per pound for insulated
copper wire." The Federal Bureau of Investigation reported in
2008 numerous instances of copper theft causing significant
damage to important safety equipment such as tornado sirens in
Mississippi and transformers in Florida that caused electrical
outages.
The NICB released a report in 2009 regarding metal theft which
reported that "thieves seem willing to go to any length to
obtain the metal, which they can then sell to scrap dealers.
Thieves have stripped sheets of metal from building rooftops,
stolen memorial decorations from cemeteries, ripped apart air
conditioners for the copper coils within, and stripped homes
and buildings of wiring and piping. Frequently, the damage
caused by such thefts is several times the value of the metal
stolen?Thieves have removed wiring from traffic and railway
signals and even posed as utility workers in order to remove
large sections of thick utility cable from the sewers beneath
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city streets. Several thieves have been electrocuted trying
to steal live electrical wiring." (Metal Theft Claims from
January 2006 to November 2008, February 13, 2009, National
Insurance Crime Bureau).
4)Current scrap recycling requirements . AB 844 (Berryhill),
Chapter 731, Statutes of 2008, imposed additional
recordkeeping requirements and payment restrictions on junk
dealers and recyclers when purchasing nonferrous materials.
Junk dealers and recyclers are now prohibited from buying
nonferrous materials unless the buyer obtains 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 is restricted to a check mailed to the
seller or to a cash or check payment that can be collected by
the seller three days after the date of sale. Junk dealers
and recyclers are also required to follow strict guidelines
regarding the retention of records, payment for materials, the
photography or video of items being purchased, and the
collection of identification and thumbprints of sellers, among
others.
However, certain exemptions do exist. Under current law, if a
seller does routine business with a junk dealer or recycler
(i.e., five separate transactions on five or more separate
days a month with the same junk dealer or recycler for three
separate months), the check by mail only payment requirement
as specified in this bill will not apply. Additionally, if a
seller has an established relationship with a junk dealer or
recycler and has provided the name, physical business address,
and business telephone number of the seller's business,
business license number or tax identification number and a
copy of the driver's license of the person delivering the
nonferrous material on behalf of the seller, he or she will be
exempt from the check by mail only payment requirement, among
other provisions.
5)Arguments in support . The Association of California Water
Agencies (ACWA) writes in support, "Metal theft has quickly
become a severe drain on many water district budgets. Many
times criminals may steal material that only garners a small
amount of money but the damage that the theft creates costs
our public agencies thousands of dollars to repair. For this
reason, ACWA supports [this bill]."
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6)Arguments in opposition . The West Coast Chapters of the
Institute of Scrap Recycling Industries (ISRI) writes in
opposition, "[T]his bill would undo an important provision of
the metal theft statute. Specifically, it would eliminate the
ability of customers?to return to the recycler to receive
payment by check or cash. Also, there are many customers who
do not have checking accounts and without being able to
receive cash, this proposed change in law could subject them
to the enormous check cashing fees administered by banks and
check cashing companies."
7)Related legislation . AB 801 (Brown) of 2013 would require
junk dealers and recyclers to obtain specified information
before providing payment for nonferrous materials marked with
an indicia of ownership, as defined, and would further require
that this information be retained as part of the written
record of purchases. That bill is currently pending in the
Assembly Business, Professions and Consumer Protection
Committee.
AB 909 (Gray) of 2013 would require the Board of State and
Community Corrections to establish a Metal Theft Task Force
Program to provide grants to applicant regional task forces
for the purpose of providing local law enforcement and
district attorneys with the tools necessary to successfully
interdict the commission of metal theft and related metal
recycling crimes. That bill is pending in the Assembly Public
Safety Committee.
SB 485 (Ron Calderon) of 2013 would require a sealer who is
responding to a request concerning the weights, measures, or
weighing or measuring instruments of a junk dealer or recycler
to also inspect the sales and purchase records of the junk
dealer or recycler to ensure compliance with the recordkeeping
and reporting requirements. The bill would also require a
sealer to cite a junk dealer or recycler who is in violation
of those recordkeeping or reporting requirements. That bill
is currently pending in the Senate Business, Professions and
Economic Development Committee.
Analysis Prepared by : Elissa Silva / B.,P. & C.P. / (916)
319-3301
AB 841
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