BILL ANALYSIS Ó Senate Appropriations Committee Fiscal Summary Senator Kevin de León, 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 23, 2013 Consultant: Robert Ingenito SUSPENSE FILE. AS PROPOSED TO BE AMENDED. 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 county sealers to make a thorough investigation of the information submitted on that application within 90 days, and would require CDFA 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 $500 fee per license year to CDFA for the administration and enforcement of these provisions. Fiscal Impact: Costs to CDFA would be funded with a newly established fee on junk dealers and recyclers. 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 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. SB 485 (Calderon) Page 1 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. Author's Amendments would (1) increase the fee from $250 to $500, and (2) require county sealers (instead of CDFA) to investigate information contained in applications for new or renewed licenses.