BILL ANALYSIS �
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