BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                    AB 85|
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                                 THIRD READING


          Bill No:  AB 85
          Author:   Tom Berryhill (R)
          Amended:  6/26/09 in Senate
          Vote:     21

           
           SEN. BUSINESS, PROF. & ECON. DEV. COMMITTEE  :  10-0, 6/22/09
          AYES:  Negrete McLeod, Wyland, Aanestad, Corbett, Correa,  
            Florez, Oropeza, Romero, Walters, Yee

           ASSEMBLY FLOOR  :  77-0, 5/18/09 - See last page for vote


           SUBJECT  :    Junk dealers and recyclers

           SOURCE  :     California Farm Bureau


           DIGEST  :    This bill corrects technical errors in the  
          existing laws related to junk dealers and recyclers.

           ANALYSIS  :    

           Existing Law

           1.Regulates junk dealers and recyclers and defines junk as  
            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.  (Business and Professions Code  
            Section 21600.)

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          2.Requires junk dealers and recyclers to allow for periodic  
            inspection of their premises or junk, to determine  
            compliance with recordkeeping requirements, and requires  
            junk dealers and recyclers to produce their records of  
            sales and purchasers and any property purchased, for  
            inspection by any of the following:

             A.    An officer holding a search warrant.

             B.    A person appointed by the county sheriff or head  
                of the police department.

             C.    An officer with a court order to inspect the  
                records or property.  (Business and Professions Code  
                Section 21606.5.)

          3.Prohibits junk dealers and recyclers from providing  
            payment for nonferrous material, as defined, unless  
            payment is made by cash or check, and the payment is  
            mailed or provided on the third business day after the  
            date of sale.  (Business and Professions Code Section  
            21608.5(a)(1).)

          4.Provides that inspections or seizures of thumbprints  
            shall only be performed by a peace officer under a  
            criminal search warrant, where probable cause for the  
            warrant was based on a theft related to the sale for  
            which the thumbprint was collected.  (Business and  
            Professions Code Section 21608.5(a)(6)(B).)

          5.Provides an exception to the requirement that junk  
            dealers and recyclers produce their records for  
            inspection on demand, indicating a cross-reference to  
            Section 21608.5(a)(3)(A), which refers to the junk dealer  
            or recycler's obligation to obtain a copy of the seller's  
            valid driver's license.  (Business and Professions Code  
            Section 21605.5.)

          This bill:

          1.Clarifies that an individual who sells nonferrous  
            material to a junk dealer or recycler may collect payment  
            for those materials either on or after the third business  
            day after the date of sale.







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          2.Clarifies that inspection of the seller's thumbprint,  
            which junk dealers and recyclers are required to collect  
            upon making a purchase, may only be performed by a peace  
            officer in response to a criminal search warrant, where  
            probable cause for the warrant is based on a theft  
            involving the transaction for which the thumbprint was  
            given.

          3.Repeals duplicative provisions of law and makes technical  
            corrections.
           
          Prior Legislation

           SB 691 (Calderon), Chapter 730, Statutes of 2008, and SB  
          844 (Berryhill), Chapter 731, Statutes of 2008, are  
          identical provisions which require junk dealers and  
          recyclers to comply with additional recordkeeping and  
          identification procedures and new payment restrictions when  
          purchasing nonferrous materials, as defined.  These bills  
          were enacted in response to the massive increase of metal  
          theft in California in recent years.  This bill essentially  
          mirrors those provisions, and likewise requires:

          1.Additional identification for sellers and a disclosure of  
            where materials came from.

          2.Risk of fines or convictions for recyclers caught  
            violating this law.

          3.Check-only transactions with a three-day wait for  
            non-business sellers.

          SB 447 (Maldonado), Chapter 732, Statutes of 2008, requires  
          a junk dealer or recycler to report information about each  
          sale or purchase of junk to the chief of police of the city  
          or the sheriff of the county in which the junk dealer or  
          recycler purchased the junk, in the same manner as required  
          by a secondhand dealer or coin dealer, as specified.

          AB 1778 (Ma), Chapter 733, Statutes of 2008, prohibits a  
          junk dealer or recycler from providing payment for  
          newspaper valued at $50 or more or California redemption  
          value (CRV) containers valued at $100 or more unless  







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          certain requirements are met including payment by check or  
          electronic transfer, and copies of the seller's  
          identification, which must be retained for two years.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  No    
          Local:  No

           SUPPORT  :   (Verified  6/26/09)

          California Farm Bureau (source)


           ASSEMBLY FLOOR  : 
          AYES:  Adams, Ammiano, Anderson, Arambula, Beall, Bill  
            Berryhill, Tom Berryhill, Blakeslee, Block, Blumenfield,  
            Brownley, Buchanan, Caballero, Charles Calderon, Carter,  
            Chesbro, Conway, Cook, Coto, Davis, De La Torre, De Leon,  
            DeVore, Duvall, Emmerson, Evans, Feuer, Fletcher, Fong,  
            Fuentes, Fuller, Furutani, Gaines, Galgiani, Garrick,  
            Gilmore, Hagman, Hall, Harkey, Hayashi, Hernandez, Hill,  
            Huber, Huffman, Jeffries, Jones, Knight, Krekorian, Lieu,  
            Logue, Bonnie Lowenthal, Ma, Mendoza, Miller, Monning,  
            Nava, Nestande, Niello, Nielsen, John A. Perez, V. Manuel  
            Perez, Portantino, Ruskin, Salas, Silva, Skinner, Smyth,  
            Solorio, Audra Strickland, Swanson, Torlakson, Torres,  
            Torrico, Tran, Villines, Yamada, Bass
          NO VOTE RECORDED:  Eng, Price, Saldana


          JJA:cm  6/26/09   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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