BILL ANALYSIS �
AB 1508
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ASSEMBLY THIRD READING
AB 1508 (Carter)
As Amended April 19, 2012
Majority vote
BUSINESS & PROFESSIONS 9-0
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|Ayes:|Hayashi, Bill Berryhill, | | |
| |Allen, Butler, Eng, | | |
| |Hagman, Hill, Ma, Smyth | | |
| | | | |
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SUMMARY : Revises the exemption on the sale of nonferrous
materials with a value under $20 from certain payment
restrictions by requiring the majority of the transaction be for
the redemption of beverage containers, as specified.
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 the 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 payment restrictions the redemption of nonferrous
materials with a value under $20 if the primary purpose of the
transaction is the redemption of beverage containers, as
specified.
4)Provides for the California Beverage Container Recycling and
Litter Reduction Act (Act) administered by the Division of
Recycling in the Department of Resources Recycling and
Recovery.
FISCAL EFFECT : Unknown. This bill is keyed non-fiscal by the
AB 1508
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Legislative Counsel.
COMMENTS : 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."
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 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.
AB 1508
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Analysis Prepared by : Rebecca May / B.,P. & C.P. / (916)
319-3301
FN: 0003408