BILL ANALYSIS �
AB 2003
Page 1
Date of Hearing: April 24, 2012
ASSEMBLY COMMITTEE ON BUSINESS, PROFESSIONS AND CONSUMER
PROTECTION
Mary Hayashi, Chair
AB 2003 (Torres) - As Introduced: February 23, 2012
SUBJECT : Junk dealers and recyclers: nonferrous materials:
payment.
SUMMARY : Requires junk dealers and recyclers to provide
payment to sellers of nonferrous material by mailed check only,
as specified.
EXISTING LAW :
1)Requires junk dealers and recyclers, as defined, to keep
written records of all sales and purchases made in the course
of their business.
2)Prohibits a junk dealer or a recycler from providing payment
for nonferrous material, as defined, unless the payment is
made by cash or check, the check is mailed or the cash or
check is provided no earlier than 3 days after the date of
sale, and other specified requirements are met.
FISCAL EFFECT : Unknown. This bill is keyed non-fiscal.
COMMENTS : According to the author, "The copper crime wave
continues to be a problem not only in California, but across the
nation. According to a report from the National Insurance Crime
Bureau (NICB), thefts of copper and other metals have increased
81%, driven by rising prices for the stolen recyclables. A total
of 25,083 theft claims of copper, bronze, brass and aluminum
were submitted in the three years ending Dec. 31, 2011. 96% of
the thefts were copper. California ranks 4th in the nation
generating the most metal theft insurance claims with 1,348.
The theft of metal from homes, utilities and public areas has
negative effects on families, public safety, business and
agriculture.
"AB 2003 assists law enforcement in catching copper thieves by
requiring recyclers to issue check payments for metal
recycling."
AB 2003
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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
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, or if the junk dealer and
seller completed five or more transactions per month. This bill
removes the provision allowing junk dealers and recyclers to
provide payment by cash or check three days after the sale and
instead requires that the junk dealer or recycler mail the check
to the seller, as specified.
This bill conflicts with previous Committee amendments and
approval of AB 1508 (Carter). As originally drafted, AB 1508
removed the two existing exemptions allowing cash payment for
nonferrous material redemption: 1) if the redemption of beverage
containers is the primary purpose of the transaction and the
value of the materials is less than $20, and; 2) if the junk
dealer or recycler and the seller have five or more transactions
per month. AB 1508 was amended in Committee to instead clarify
that the exemption for redemption of nonferrous material with a
value of less than $20 is applicable when the majority of the
transaction is the redemption of beverage containers.
Support . Pacific Gas and Electric Company (PG&E) writes in
support, "PG&E has a strong interest in deterring nonferrous
material theft. While the purchase price and operational costs
to replace stolen wire is many times that of the scrap value,
the danger to the public is significant. Reliability and public
safety have been jeopardized when someone attempts to steal an
energized commodity. Lives have been place in danger because of
this type of criminal activity related to the loss of power,
including: hospitals; 9-1-1 phone systems; traffic signals; and
railroad crossing controls.
"PG&E works closely with law enforcement agencies to
aggressively combat the wire theft problem. We support this
AB 2003
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legislative change that will give law enforcement a tool to
locate and identify nonferrous material thieves. AB 2003 can
help protect the state's critical infrastructure as well as
improve customer reliability and public safety."
Related legislation . AB 1508 (Carter) of 2012, clarifies that
the exemption for redemption of nonferrous material with a value
of less than $20 is applicable when the majority of the
transaction is the redemption of beverage containers. This bill
is pending the Assembly Appropriations Committee.
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
containers).
REGISTERED SUPPORT / OPPOSITION :
Support
California Association of Sanitation Agencies
California District Attorneys Association
Eastern Municipal Water District
Pacific Gas and Electric Company
Opposition
None on file.
Analysis Prepared by : Rebecca May / B.,P. & C.P. / (916)
319-3301