BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 485
                                                                  Page  1

          Date of Hearing:   August 21, 2013

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                   SB 485 (Calderon) - As Amended:  August 5, 2013 

          Policy Committee:                             Business and  
          Professions  Vote:                            14 - 0 

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill establishes additional requirements for junk dealers  
          and recyclers. Specifically, this bill:

          1)Requires a junk dealer or recycler to submit additional  
            information regarding its junk dealer business to the  
            California Department of Food and Agriculture (CDFA) when  
            applying for a weighmaster's license or a renewal license.

          2)Requires the CDFA to complete an investigation of the  
            information on the application or renewal within a specified  
            period of time and revoke the license if the information  
            submitted in the application or renewal is materially  
            inaccurate. 

          3)Increases the fees that junk dealers or recyclers pay for each  
            fixed location, and sunsets these provisions on January 1,  
            2019. 

           FISCAL EFFECT  

          1)The on-going workload for CDFA associated with the increased  
            inspection procedures, training, hearings, and general  
            oversight of the program would cost in excess of $800,000 per  
            year. 

          2)Revenue generated by the increased fees is expected to fully  
            cover the cost of the program.  CDFA estimates that it will  
            collect approximately $875,000 annually. 

           COMMENTS  








                                                                  SB 485
                                                                  Page  2


           1)Purpose  . This bill requires junk dealers to provide additional  
            information to CDFA when applying for or renewing a  
            weighmaster's license in order to reduce the number of  
            non-compliant dealers, and hopefully deter fraudulent  
            transactions and decrease the sale of stolen metal property.   
            This bill also creates new license fees for a weighmaster who  
            is a recycler or junk dealer in order to operate at specified  
            locations.  This bill is sponsored by the West Coast Chapter  
            of the Institute of Scrap Recycling Industries.  

           2)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% 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. 


           Analysis Prepared by  :    Julie Salley-Gray / APPR. / (916)  
          319-2081