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