BILL ANALYSIS Ó AB 236 Page 1 Date of Hearing: May 6, 2015 ASSEMBLY COMMITTEE ON APPROPRIATIONS Jimmy Gomez, Chair AB 236 (Lackey) - As Amended April 15, 2015 ----------------------------------------------------------------- |Policy |Business and Professions |Vote:|14 - 0 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- 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: AB 236 Page 2 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 AB 236 Page 3 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 AB 236 Page 4 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