BILL ANALYSIS Ó
SB 757
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SENATE THIRD READING
SB 757 (Berryhill)
As Amended April 15, 2013
Majority vote
SENATE VOTE :36-1
BUSINESS & PROFESSIONS 13-0
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|Ayes:|Bonilla, Bocanegra, | | |
| |Campos, Dickinson, | | |
| |Eggman, Gordon, Hagman, | | |
| |Holden, Maienschein, | | |
| |Mullin, Skinner, Ting, | | |
| |Wilk | | |
| | | | |
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SUMMARY : Authorizes a junk dealer or recycler to accept as
valid seller identification a passport from any country or a
Matricula Consular issued by Mexico when buying newspaper or
California Redemption Value (CRV) containers, and clarifies that
the definition of a "secondhand dealer" does not include a "junk
dealer." Specifically, this bill :
1)Allows a junk dealer or recycler to accept as valid seller
identification a passport from any country in addition to
another item of identification bearing an address of the
seller, or the Matricula Consular in addition to another item
of identification bearing an address of the seller, as
specified, when purchasing newspapers or CRV containers.
2)Clarifies that a "secondhand dealer" does not include a "junk
dealer" as specified.
3)Declares that the clarification of the definition of a
"secondhand dealer" to explicitly exclude a "junk dealer" is
declaratory of existing law.
FISCAL EFFECT : None. This bill is keyed non-fiscal by the
Legislative Counsel.
COMMENTS :
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1)Purpose of this bill . This bill would allow junk dealers and
recyclers providing payment for newspaper or CRV containers to
accept a passport from any country or a Matricula Consular
issued by the Mexican consulate as acceptable identification.
These forms of identification are already accepted under
existing law in the purchase of nonferrous materials. This
bill also clarifies that a "junk dealer" is not a "secondhand
dealer," and is not subject to the provision of the secondhand
dealer law. This bill is sponsored by the West Coast Chapter
of the Institute of Scrap Recycling Industries.
2)Author's statement . "[This bill] is an attempt to address
issues and challenges to current law that regulates the
restrictions on the purchases of copper, aluminum, stainless
steel, brass, and bronze by junk dealers and recyclers. In
2012 AB 1583 (Roger Hernández), (Chapter 300, Statutes of
2012) and AB 1508 (Carter), (Chapter 531, Statutes of 2012)
added Matricula Consular language to the junk dealer portion
of the [Business and Professions] Code so it would conform to
the Secondhand Dealer reporting requirements. That change was
not applied consistently throughout the code section?Thus if a
person brings in over $100 of beverage containers and $500 of
non-ferrous material and only has a Matricula Consular form of
identification; the recycler would not be allowed to use the
Matricula Consular identification for the beverage containers
and would have to tell the seller he cannot purchase the
beverage containers because he does not have the proper ID but
he could purchase the non-ferrous material with the ID."
3)The growing metal recycling industry . According to the
Institute of Scrap Recycling Industries, Inc., (ISRI)
nonferrous (or not iron-based) metals are among the few
materials that do not degrade or lose their chemical or
physical properties in the recycling process. Because of
this, these metals have the capacity to be recycled a nearly
infinite number of times. Nonferrous materials include
copper, copper alloys, stainless steel, or aluminum (but not
beverage containers, as specified in the California Public
Resources Code).
In the United States, the value of the nonferrous scrap industry
jumped to nearly $40 billion in 2010, which was an increase of
28% from 2009. In terms of volume, it has been reported that
nonferrous scrap materials make up a small percentage of the
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total quantity of material recycled in the United States, but
by value it accounts for more than half of the total earnings
of the scrap recycling industry. In 2010, the U.S. exported
$16.7 billion worth of nonferrous scrap to nearly 100
countries.
4)The identification requirement for scrap recycling . AB 1583
(Roger Hernández) previously authorized a junk dealer and
recycler to accept as identification of a seller a passport
from any country or a Matricula Consular, along with another
form or identification bearing an address, or an
identification card issued by the United States in addition to
prohibiting junk dealers and recyclers from purchasing or
receiving bulk merchandise pallets as specified. Under
current law when a junk dealer or recycler takes in certain
nonferrous materials, they must keep a detailed written record
of the transaction including the identification of the seller.
Individuals engaged in recycling have currently three options
when providing identification: a valid California driver's
license number or United States identification card, a
passport, or a Matricula Consular.
However, when purchasing newspapers or CRV containers, a junk
dealer must obtain an additional form of identification. This
bill will simply allow a junk dealer or recycler to accept a
passport or Matricula Consular card in addition to a primary
form of identification. Obtaining the proper identification
in any junk dealer or recycler transaction may help to
alleviate improper or illegitimate activity.
5)Identification and the Matricula Consular . The Matricula
Consular is an identification card issued to Mexican nationals
by the Mexican Consulate. The identification card certifies
that the card holder is a Mexican National living in the
United States. The card is primarily used for identification
purposes and contains a photograph of the bearer, along with
the individual's birthplace, address outside of Mexico and a
government-issued identification number. Applicants for a
Matricula Consular card must provide proof of identity, proof
of Mexican nationality, and their local mailing address. The
Matricula Consular is widely accepted at banking institutions
and businesses throughout the country. However, because the
card is issued by a foreign government through its consulate
offices, proof of its authenticity may be difficult to verify.
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6)Defining a junk dealer . According to the author, there have
been several occasions in which it has been suggested to a
junk dealer or recycler must obtain a secondhand dealer
license and hold purchased property for 30 days before
selling. In order to provide greater clarity for law
enforcement and other regulating entities, this bill also
clarifies that a junk dealer and a secondhand dealer are not
the same and are not subject to the same reporting, holding
and licensing requirements. A secondhand dealer includes a
person, business or corporation whose main purpose is to buy,
sell, trade, take in pawn, accept for sale on consignment, or
accept for auction, secondhand tangible personal property.
Current law specifically exempts certain individuals from the
definition of a secondhand dealer, including coin dealers,
certain auctioneers and certain appliance repair persons.
City and county licensing agencies have been delegated the
responsibility to implement the State Secondhand Dealer and
State Pawnbroker licensing process through local programs.
A junk dealer, however, is recognized as any person engaging in
the business of buying, selling and dealing in junk; any
person purchasing, gathering, collecting, soliciting, or
procuring junk; or, 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.
While both parties deal in a form of secondhand goods, they are
subject to different licensing schemes, reporting and
documentation requirements. This bill amends the definition
of a "secondhand dealer" to exclude a "junk dealer," and
further states that this change is declaratory of existing law
to make it more clear that a junk dealer is not a secondhand
dealer and not subject to the same report and hold
requirements of secondhand dealers.
Analysis Prepared by : Elissa Silva / B.,P. & C.P. / (916)
319-3301
FN: 0001664
SB 757
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