BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     AB 236


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          Date of Hearing:  May 6, 2015


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                                 Jimmy Gomez, Chair


          AB  
          236 (Lackey) - As Amended April 15, 2015


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          Urgency:  No  State Mandated Local Program:  NoReimbursable:  No


          SUMMARY:  


          This bill adds pawnbrokers and secondhand dealers to the list of  
          persons who are not weighmasters. Specifically, this bill:   










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          1)Specifies that a pawnbroker or secondhand dealer, who is  
            weighing property that is acquired and reports the acquisition  
            of the property as specified, is not a weighmaster. 



          2)Clarifies that the weighmaster requirements for junk dealers  
            and recyclers do not apply to pawnbrokers and secondhand  
            dealers.

          FISCAL EFFECT:


          Minor and absorbable costs to the Department of Food and  
          Agriculture (CDFA).


          COMMENTS:


          1)Purpose.  According to the author, "[this bill] simply  
            clarifies that the fee created by SB 485 (Calderon), Chapter  
            518 Statutes of 2013, does not apply to pawnbrokers.  SB 485  
            was passed in 2013 as a measure to help increase compliance  
            with metal theft laws.  Scrap metal recyclers agreed to assess  
            a new $500 fee on their weighmaster permit in order to improve  
            enforcement.  In 2014 several pawnbrokers in the Los Angeles  
            area were told that they must become weigh masters and pay the  
            fee despite SB 485's intent being clear that it only applied  
            to scrap metal dealers. [This bill] explicitly exempts  
            pawnbrokers from being considered a weighmaster."


          2)Background.  California's weights and measures laws and  
            regulations are enforced by the Division of Measurement  
            Standards (DMS) under the CDFA.  Weights and measures  
            officials are authorized to inspect all weighmasters,  
            including those of junk dealers and recyclers, to ensure  
            compliance with weighmaster recordkeeping and reporting  








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            requirements.   In addition, they have the authority to issue  
            citations for misdemeanor and infraction violations. 


            According to the CDFA, most pawnbrokers and secondhand dealers  
            are not required to obtain a weighmaster certificate when they  
            only engage in the respective businesses for which they are  
            licensed. However, if they conduct additional business  
            services which explicitly require a weighmaster's license,  
            they are required to have one. The current annual license fee  
            is $75 for a weighmaster operating at a fixed location plus  
            $30 for each additional fixed location, or $200 for a  
            weighmaster operating at other than a fixed location.  


            SB 485 (Calderon) Chapter 518, Statutes of 2013, was designed  
            to increase compliance with metal theft laws. As part of that  
            effort, scrap metal recyclers agreed to assess a new $500 fee  
            on their weighmaster permit (in addition to the existing fees)  
            in order to improve enforcement. The author and sponsor  
            explain that some pawnbrokers and secondhand dealers are being  
            required to pay the additional $500 fee which was established  
            for junk dealers. This bill seeks to address this issue.


          3)Prior Legislation.  
             a)   ACR 101 (Jones-Sawyer), Chapter 154, Statutes of 2014,  
               requested the DOJ convene stakeholder meetings in 2014 with  
               representatives from law enforcement, prosecutors, the  
               secondhand dealer and pawnbroker industry, and interested  
               members of the public to identify changes in current law  
               which would allow secondhand dealers and pawnbrokers to  
               conduct Internet-based business.  
          
             b)   SB 485 (Calderon), Chapter 518, Statutes of 2013,  
               required a junk dealer or recycler to submit additional  
               information regarding its junk dealer business to the CDFA  
               when applying for a weighmaster's license or a renewal  
               license, and required the CDFA to complete an investigation  








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               of the information on the application or renewal 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.  

          Analysis Prepared by:Jennifer Swenson / APPR. / (916)  
          319-2081