BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                            Senator Kevin de Le�n, Chair


          SB 485 (Calderon) - Weighmasters: Junk Dealers and Recyclers
          
          Amended: May 14, 2013           Policy Vote: BP&ED 10-0
          Urgency: No                     Mandate: No
          Hearing Date: May 20, 2013      Consultant: Robert Ingenito
          
          This bill meets the criteria for referral to the Suspense File.


          Bill Summary: SB 485 would require a junk dealer or recycler  
          upon application for or renewal of a weighmasters' license to  
          submit additional specified information regarding its junk  
          dealer or recycler business to the California Department of Food  
          and Agriculture (CDFA). Additionally, the bill would require  
          CDFA (1) to make a thorough investigation of the information  
          submitted on that application within 90 days, and (2) to revoke  
          a junk dealer or recycler's weighmasters' license if the  
          information submitted in the application is materially  
          inaccurate. 

          The bill would require a junk dealer or recycler applying for a  
          weighmaster license to pay a $250 fee per license year to CDFA  
          for the administration and enforcement of these provisions.

          Fiscal Impact: CDFA would incur costs of approximately $587,000  
          for the first year, and $550,000 ongoing (special funds) for  
          personal services and operating costs.

          The measure could generate approximately $250,000 in revenue  
          (assuming there are 1,000 business locations). CDFA 

          Background:  Metal prices have risen sharply on the world  
          markets over recent years. For instance, a commonly-cited index  
          of metal prices has risen about 42 percent since 2005.  
          Consequently, thefts of metals such as copper, bronze, brass,  
          and aluminum have risen sharply in recent years, for the  
          purposes of sales to metal recyclers. Examples of metal-theft  
          include the stripping of copper wires and aluminum pipes from  
          agricultural equipment, copper wire stripped from utility power  
          lines, the removal of wire and pipe from construction sites.

          The damage caused by these thefts is often several times the  








          SB 485 (Calderon)
          Page 1


          value of the metal stolen, leaving the victims with hefty repair  
          costs. The U.S. Department of Energy has estimated that metal  
          theft costs U.S. businesses around $1 billion a year. 

          Proposed Law: This bill would, among other things, do the  
          following:
           
                 Require CDFA to require a recycler or junk dealer, as  
               defined, who applies for a weighmaster's license or to  
               renew a weighmaster;s license to furnish specified  
               additional information on the application. 
                 Require CDFA to issue a license to a junk dealer or  
               recycler to an applicant who submits the appropriate  
               information and fee.

                 Require CDFA to make a thorough investigation of all of  
               the information contained in the application within 90  
               days.

                 Require CDFA to revoke a junk dealer or recycler's  
               weighmaster's license if the information submitted in the  
               application is materially inaccurate, unless the junk  
               dealer or recycler complies with these information  
               requirements within 14 days. 

                 Provides that a junk dealer or recycler whose license  
               has been revoked is entitled to a hearing before an  
               administrative law judge, as specified.