BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 485|
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UNFINISHED BUSINESS
Bill No: SB 485
Author: Calderon (D), et al.
Amended: 8/5/13
Vote: 21
SENATE BUSINESS, PROF. & ECON. DEV. COMM. : 10-0, 4/22/13
AYES: Price, Emmerson, Block, Corbett, Galgiani, Hernandez,
Hill, Padilla, Wyland, Yee
SENATE APPROPRIATIONS COMMITTEE : 7-0, 5/23/13
AYES: De León, Walters, Gaines, Hill, Lara, Padilla, Steinberg
SENATE FLOOR : 39-0, 5/29/13
AYES: Anderson, Beall, Berryhill, Block, Calderon, Cannella,
Corbett, Correa, De León, DeSaulnier, Emmerson, Evans, Fuller,
Gaines, Galgiani, Hancock, Hernandez, Hill, Hueso, Huff,
Jackson, Knight, Lara, Leno, Lieu, Liu, Monning, Nielsen,
Padilla, Pavley, Price, Roth, Steinberg, Torres, Walters,
Wolk, Wright, Wyland, Yee
NO VOTE RECORDED: Vacancy
ASSEMBLY FLOOR : 77-1, 9/9/13 - See last page for vote
SUBJECT : Weighmasters: junk dealers and recyclers
SOURCE : West Coast Chapter of the Institute of Scrap
Recycling Industries
DIGEST : This bill requires a junk dealer or recycler to
submit additional information regarding its junk dealer business
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to the Department of Food and Agriculture (CDFA) when applying
for a weighmaster's license or a renewal license, 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, increases the
fees that junk dealers or recyclers pay for each fixed location,
and sunsets these provisions on January 1, 2019.
Assembly Amendments authorize the Secretary of CDFA to enter
into a cooperative agreement with any county sealer to carry out
certain provisions of this bill; repeal specified provisions on
January 1, 2019; and remove findings and declarations relating
to recordkeeping and reporting requirements for commercial scrap
recycling transactions.
ANALYSIS :
Existing law:
1.Vests the CDFA with general supervision of weights and
measures and weighing and measuring devices sold or used in
the state, and authorizes the Secretary of CDFA to exercise
any power conferred upon CDFA or upon the State Sealer, who is
the chief of the Division of Measurement Standards (DMS)
within CDFA and is charged with the enforcement of the
provisions relating to weights and measures. Further provides
for the enforcement of those laws and the inspection and
testing of measuring devices, in each county, by the county
sealer.
2.Defines a weighmaster as any person, who, for hire or
otherwise, weighs, measures, or counts any commodity and
issues a statement or memorandum of the weight, measure, or
count which is used as the basis for either the purchase or
sale of that commodity or charge for service. Requires a
weighmaster to obtain a license and to pay a license fee, as
prescribed.
3.Authorizes the Secretary to refuse to grant a license, to
refuse to renew a license, or to revoke or suspend a license
if, after an administrative hearing, the Secretary is
satisfied that the applicant or licensee is not qualified to
capably or reliably perform the duties of a weighmaster or has
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been found guilty of a misdemeanor relating to the regulation
of weighmasters.
4.Regulates junk dealers and recyclers and defines "junk" to
mean secondhand and used machinery and all ferrous (containing
iron) and nonferrous (excludes iron) scrap metals (as defined)
and alloys, including any and all secondhand and used
furniture, pallets, or other personal property, excluding
livestock; "junk dealer" to include any person engaged in the
business of buying, selling and dealing in junk, or
purchasing, gathering, collecting, soliciting or procuring
junk, and any person operating, carrying on, conducting or
maintaining a junk yard or place where junk is gathered
together and stored or kept for shipment, sale or transfer;
and "recycler" to mean any processor, recycling center, or
noncertified recycler, as defined, who buys or sells scrap
metal that constitutes junk.
5.Requires junk dealers and recyclers to keep a written record,
as specified, of each sale and purchase for at least two
years; requires the written information to be reported to the
chief of police or sheriff, as specified; and makes it a
misdemeanor to make a false or fictitious statement in the
written record.
6.Requires junk dealers and recyclers to record certain
information from the seller when buying nonferrous (not
containing iron) materials, including a valid driver's
license, or other specified identification; obtain a clear
photograph or video of the seller and a clear photograph or
video of the material being purchase, and obtain a thumbprint
of the seller, as prescribed by the Department of Justice.
This bill:
1.Specifies that in addition to any other requirements for
issuance of a weighmaster's license, if the applicant is a
recycler or junk dealer CDFA shall require the applicant to
furnish all of the following information accurately on any
application for a new license or the renewal of a license:
A. A copy of the applicant's current business license;
B. A statement indicating that the applicant has either
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filed an application for a stormwater permit or is not
required to obtain a stormwater permit;
C. A statement indicating that the applicant has the
equipment necessary to comply with the photographic and
thumbprinting requirements for the purchase and sale of
nonferrous material, as specified, or a statement
indicating that applicant will not be purchasing or selling
nonferrous materials and is not required to comply as
specified; and
D. The name or names of any deputy weighmasters.
1.Requires CDFA to issue a license to a junk dealer or recycler
upon receipt of an application for a new license or renewal of
a license that contains the required information and is
accompanied by the appropriate fee.
2.Requires CDFA, on or before December 31, 2014, and upon
issuance of a license to a junk dealer or recycler, or renewal
of such a license, to make a thorough investigation of all of
the information contained on the application within 90 days,
and specifies that if the license is issued or renewed on or
after January 1, 2015, CDFA shall make a thorough
investigation of all the information contained in the
application within 90 days for a new license, and within one
calendar year for a renewal of a license.
3.Specifies that if CDFA determines that the information
submitted is materially inaccurate, CDFA shall revoke the
license issued to a junk dealer or recycler unless the junk
dealer or recycler complies with the specified requirements
within 14 days of notice from CDFA of a proposed revocation,
as specified.
4.Provides that a junk dealer or recycler whose license has been
revoked is entitled to a hearing, as specified.
5.Authorizes the Secretary of CDFA to enter into a cooperative
agreement with any county sealer to carry out the specified
provisions.
6.Requires a weighmaster who is a recycler or junk dealer or is
performing services on behalf of a recycler or junk dealer, in
addition to specified license fees, to also pay to CDFA the
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following license fee for each license year as applicable to
the operation:
A. $500 if the weighmaster is operating at a fixed
location;
B. $500 for each additional fixed location at which the
weighmaster is operating; and
C. $500 if the weighmaster is operating at other than a
fixed location.
1.Specifies that license fees collected shall be deposited in
the CDFA fund to be expended by CDFA for administration and
enforcement.
2.Specifies that the above provisions shall remain in effect
until January 1, 2019.
3.Makes legislative findings and declarations relative to
requirements for commercial scrap recycling transactions and
the role of the DMS and county sealers in the review and
inspection of weighing and measurement devices.
4.Makes other minor technical and clarifying changes.
Background
In 2009, metal theft reached an unacceptable level. In 2005,
the number of reported metal theft incidents went up 100% from
the previous year, and in 2006 the increase was 400%. The value
of metals stolen in 2008 was at least $6 million in California.
News stories up and down the state were highlighting that
nothing was being spared by metal thieves.
Farmers were seeing copper wires and aluminum pipes stripped
from their equipment. Utility companies are seeing their lines
cut and stripped of copper wire. Construction companies lost
wire and pipe at construction sites. Schools, churches, and
businesses had their wire from air conditioning units stolen.
Catalytic converters ripped off of parked cars. Even bronze
cemetery vases were being stolen and sold for scrap. The list
goes on and on, and the damage caused by the theft results in
much greater costs for the victims than is gained by the
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thieves.
The reasons for these thefts were fairly simple. The stolen
metal could be sold to metal recyclers for a good amount of
cash, on the spot. Copper was the hot commodity in particular,
and given its high price, thieves were taking just about
anything copper they could get their hands on. Law enforcement
agencies throughout the state concluded from arrests made that
metal thieves were predominantly drug users looking for quick,
easy money to feed their habit.
In an effort to toughen restrictions on the purchase of metal,
and thus to curb the sale of stolen metal, in 2008, the
Legislature enacted SB 691 (Calderon, Chapter 730, Statutes of
2008), AB 844 (Berryhill, Chapter 731, Statutes of 2008) and SB
447 (Maldonado, Chapter 732, Statutes of 2008). These bills
attempted to stem the tide of metal theft in California. Since
that time a number of bills have sought to further address
different aspects of the problem of recycling stolen materials.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
According to the Senate Appropriations Committee, costs to CDFA
will be funded with a newly established fee on junk dealers and
recyclers.
SUPPORT : (Verified 9/9/13)
West Coast Chapter of the Institute of Scrap Recycling
Industries (source)
Association of California Water Agencies
California Chamber of Commerce
California Farm Bureau Federation
Montebello Chamber of Commerce
PacifiCorp
ARGUMENTS IN SUPPORT : The author's office acknowledges that
California has stringent reporting requirements for recycling
companies when purchasing non-ferrous materials such as copper
and stainless steel. The purpose for creating such strict
reporting requirements, according to the author's office, was to
discourage metal theft and promote honest competition within the
scrap metal recycling industry. Unfortunately, the reporting
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requirements have not stopped the theft of metals. Instead, it
has created unscrupulous and non-compliant recyclers within the
industry. The consensus is not that existing laws have
shortcomings, but the lack of resources to enforce the law. Due
to the extreme strain on state and local revenues, the ability
to enforce the existing laws seems to be the greatest challenge
to solving the metal theft puzzle for local law enforcement.
Non-compliant recyclers provide an avenue for thieves to sell
stolen material, according to the author's office. This bill
seeks to address the issue of monitoring recyclers who do not
follow the law by establishing additional requirements for
recyclers who submit an application for a new weighmaster's
license or the renewal of a weighmaster's license with CDFA.
The bill's sponsor, the West Coast Chapter of the Institute of
Scrap Recycling Industries (ISRI), argues that "California has
the most comprehensive statutory structures in the nation to
help prevent the theft of non-ferrous metal which ISRI
supported. Over the years, it has become readily apparent that
additional laws on the books are not necessary. The problem is
not the lack of sufficient statutory muscle, but the dire lack
of judicial enforcement. Simply stated, few local police
agencies have the desire to redirect their scarce resources to
enforce the metal theft laws. This is a budgetary issue and not
an issue of substantive law. SB 485 will help relieve the
budgetary stress on law enforcement and is another step in the
right direction in reducing metal theft by providing additional
enforcement tools."
The California Grocers Association (CGA) supports the bill,
arguing that allowing sealers to inspect and cite these
businesses' financial records for accepting stolen metals such
as shopping carts will act as a deterrent for these dealers to
no longer accept unlawfully obtained material. "Simply put, SB
485 will help curb a theft issue that deeply impacts our member
companies," writes CGA.
The California Farm Bureau Federation states that metal theft is
a crisis facing our communities and given public safety budget
cuts, and providing the authority to county agricultural
commissioners is an important step to expand the enforcement of
the record keeping requirements for junk dealers and recyclers."
The California Chamber of Commerce argues that tougher
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enforcement serves as a deterrent to crimes as shown through the
work of rural crime task forces operating on the coast and in
the central part of the state.
ASSEMBLY FLOOR : 77-1, 9/9/13
AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Bigelow, Bloom,
Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian
Calderon, Campos, Chau, Chávez, Chesbro, Conway, Cooley,
Dahle, Daly, Dickinson, Eggman, Fong, Fox, Frazier, Beth
Gaines, Garcia, Gatto, Gomez, Gonzalez, Gordon, Gorell, Gray,
Grove, Hagman, Hall, Harkey, Roger Hernández, Holden, Jones,
Jones-Sawyer, Levine, Linder, Logue, Lowenthal, Maienschein,
Mansoor, Medina, Melendez, Mitchell, Morrell, Mullin,
Muratsuchi, Nazarian, Nestande, Olsen, Pan, Patterson, Perea,
V. Manuel Pérez, Quirk, Quirk-Silva, Rendon, Salas, Skinner,
Stone, Ting, Wagner, Waldron, Weber, Wieckowski, Wilk,
Williams, Yamada, John A. Pérez
NOES: Donnelly
NO VOTE RECORDED: Vacancy, Vacancy
MW:ej:n 9/9/13 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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