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:
AB 236
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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
AB 236
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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