BILL ANALYSIS Ó
AB 1583
Page 1
Date of Hearing: May 2, 2012
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
AB 1583 (Hernandez) - As Amended: April 9, 2012
Policy Committee: Business and
Professions Vote: 9 - 0
Urgency: No State Mandated Local Program:
Yes Reimbursable: No
SUMMARY
This bill prohibits any junk dealer or recycler from purchasing
or receiving bulk merchandise pallets marked with an indicia of
ownership from any person or entity other than the indicated
owner. Specifically, this bill:
1)Prohibits junk dealers or recyclers from purchasing or
receiving bulk merchandise pallets marked with an indicia of
ownership from any person or entity other than the indicated
owner.
2)Broadens the definition of "bulk merchandise pallets" to
include any wooden or plastic carrier used by a manufacturer
or distributor for bulk transport of merchandise.
3)Authorizes a junk dealer or recycler to purchase or receive
bulk merchandise pallets if the seller is not the indicated
owner, only if the seller or transferor provides a receipt
verifying his or her current ownership or a document
indicating that he or she is authorized by the owner to sell
or transfer the merchandise pallets.
4)Requires a junk dealer or recycler to make payment for a
single transaction involving five or more bulk merchandise
pallets marked with indicia of ownership by mailed check or by
cash or check collected by the seller after three business
days.
5)Requires a person or entity purchasing or transporting plastic
bulk merchandise containers who is in the business of
recycling, shredding, or destruction of plastic bulk
AB 1583
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merchandise containers, or is in the business of transporting
plastic bulk merchandise containers for those purposes, to
obtain a proof of ownership record or bill of lading and other
identifying information from the person selling or delivering
five or more containers, and to retain this information.
FISCAL EFFECT
Negligible, non-reimbursable costs for prosecution and/or
incarceration, offset by fine revenue, for misdemeanor
violations of provisions associated with obliterating the
indicia of ownership on a merchandise pallet.
COMMENTS
1)Purpose . This bill prohibits junk dealers and recyclers from
purchasing or receiving bulk merchandise pallets marked with
an indicia of ownership from anyone except the indicated
owner, unless the seller or transporter provides proof of
ownership. The author contends AB 1583 will ensure businesses
stop losing their property because the legislation applies to
all merchandise pallets, not only to plastic ones used for
milk, eggs, and beverages.
According to the sponsor, MillerCoors, thefts in the San
Gabriel Valley alone cost local businesses nearly $10 million
annually, MillerCoors typically pays approximately $30 per
pallet and estimates its nationwide losses from pallet theft
to be in the tens of millions of dollars per year.
2)Opposition . The California Chapters of the Institute of Scrap
Recycling Industries (ISRI) writes in opposition, "Frankly,
the problem is not the sufficiency of the current law; it is
the lack of judicial enforcement of the current law. Simply
stated, few local police agencies have the desire to redirect
their scarce resources to enforce the merchandise container
laws. This is not an issue of substantive law. This is an
issue where dairy, bakery, and soft drink industries need to
make sure the supermarkets in which their products are sold
keep the merchandise containers in a secure location."
3)Related Legislation . SB 520 (Governmental Organization
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Committee), Chapter 349, Statutes of 2007, prohibits junk
dealers or recyclers from purchasing or receiving aluminum
beer kegs with marks indicating ownership, unless the kegs are
being provided directly by the owner.
Analysis Prepared by : Julie Salley-Gray / APPR. / (916)
319-2081