BILL ANALYSIS �
AB 1508
Page 1
Date of Hearing: April 10, 2012
ASSEMBLY COMMITTEE ON BUSINESS, PROFESSIONS AND CONSUMER
PROTECTION
Mary Hayashi, Chair
AB 1508 (Carter) - As Amended: February 28, 2012
SUBJECT : Junk dealers and recyclers: nonferrous materials.
SUMMARY : Deletes payment restriction exemptions on the sale of
nonferrous materials, as specified. Specifically, this bill :
1)Deletes the following exemptions to the requirement that
payment by a junk dealer or recycler be made by mailed check
or by cash or check three days after the date of sale:
a) If the junk dealer or recycler completes five or more
separate transactions per month, on five or more separate
days per month with the seller, as specified; or,
b) If the nonferrous material has a value under $20 in a
single transaction, and the primary purpose of the
transaction is the redemption of beverage containers under
the California Beverage Container Recycling and Litter
Reduction Act (Act), as specified.
2)Makes technical changes.
EXISTING LAW
1)Requires junk dealers and recyclers to keep written records of
all sales and purchases made in the course of their business,
and makes a violation of recordkeeping requirements a crime.
2)Prohibits a junk dealer or recycler from providing payment for
nonferrous materials unless the payment is made by mailed
check or cash or check is provided three days after the date
of sale, and the dealer or recycler obtains a photograph or
video of the seller and certain other identifying information,
as specified, and retains this information for a specified
period of time.
3)Exempts from the payment restrictions:
a) The redemption of nonferrous materials for a certain
AB 1508
Page 2
value in connection with the redemption of beverage
containers, as specified; and,
b) Sellers of junk or recycling materials who conduct five
or more separate transactions per month with the junk
dealer or recycler, as specified.
4)Provides for the Act administered by the Division of Recycling
in the Department of Resources Recycling and Recovery.
FISCAL EFFECT : Unknown
COMMENTS :
Purpose of this bill . According to the author, "When AB 844
�(Berryhill), Chapter 731, Statutes of 2008] first became
effective, we saw a dramatic decrease in metal thefts. However,
this bill provided a loophole in the enforcement of this law.
If the primary purpose of the transaction is for redeeming
California Redemption Value (cans, bottles and plastic),
individuals are able to redeem cash for their scrap metals if it
remains under $20.
"An example of this would be, if a person cleans up their garage
and has a small bag of aluminum cans and an extension cord he
wants to get rid of, he can scrap the materials for under the
$20 threshold and get paid in cash immediately. This loophole
has resulted in increased metal thefts.
"According to the San Bernardino County Sherriff's Department,
metal thefts have increased again to almost the same level it
was prior to the passage of AB 844 because metal thieves became
aware of this loophole. In order to obtain quick cash, thieves
use pieces stolen from buildings and infrastructure to sell to
recycling companies, while combining their materials with
aluminum cans. Therefore, it is hard to determine the seller's
primary purpose because thieves began packaging their stolen
metal into $20 increments."
Background . AB 844 (Berryhill), Chapter 731, Statutes of 2008,
required junk dealers and recyclers to comply with additional
recordkeeping requirements and new payment restrictions when
purchasing nonferrous materials. Junk dealers were now
prohibited from providing payment for nonferrous materials
unless he or she obtained a copy of the seller's driver's
AB 1508
Page 3
license, a photo or video of the material being purchased, and a
thumbprint of the seller. Additionally, payment was restricted
to a check mailed to the seller or by cash or check to be
collected by the seller three days after the date of sale. The
new payment restrictions were exempted for individuals redeeming
nonferrous materials with a value less than $20 in a single
transaction, when the primary purpose of the transaction is the
redemption of beverage containers under the Act, or if the junk
dealer and seller completed five or more transactions per month.
A recent Sacramento Bee criticized these exemptions as follows,
"A law that went into effect in 2008 �AB 844] requires scrap
dealers to check and record copper sellers' identification, to
fingerprint them and take pictures of the material they sell.
There's also supposed to be a three-day waiting period before
the seller is paid. But there is a big loophole in the law.
There is no delay in payment if the sale is less than $20. So
thieves regularly package their stolen metal into $20 chunks.
That loophole needs to be eliminated. Any sale of copper to any
recycler or scrap metal dealer should be recorded and
photographed, and the seller's ID and thumbprint recorded. And
a three-day waiting period should be enforced on all sales."
This bill deletes these exemptions, thereby subjecting
transactions of nonferrous materials to the three day hold on
payment.
Support . The sponsor of this measure, the San Bernardino County
Sheriff, writes in support, "The incidents of metal theft are on
the rise in the Inland Empire due to the rising price of
�nonferrous] material. The cost for replacement of this
increases as well. Nearly every day it is not unusual to read
in the news that a school, government buildings, or a
construction site has been burglarized and stripped of copper
and metal materials.
"AB 1508 will make the junk dealers and recyclers more
responsible when taking in materials that may possibly be stolen
by increasing their record keeping duties."
Previous legislation . AB 844 (Berryhill), Chapter 731, Statutes
of 2008, requires junk dealers and recyclers to comply with
additional recordkeeping requirements and new payment
restrictions when purchasing nonferrous materials (i.e., copper,
copper alloys, stainless steel, and aluminum, excluding beverage
AB 1508
Page 4
containers).
REGISTERED SUPPORT / OPPOSITION :
Support
San Bernardino County Sheriff (sponsor)
AT&T
California Farm Bureau Federation
Eastern Municipal Water District
Pacific Gas and Electric Company
Opposition
Institute of Scrap Recycling Industries, California Chapter
Analysis Prepared by : Rebecca May / B.,P. & C.P. / (916)
319-3301