BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2298
                                                                  Page  1

          Date of Hearing:   April 24, 2012

              ASSEMBLY COMMITTEE ON BUSINESS, PROFESSIONS AND CONSUMER 
                                     PROTECTION
                                 Mary Hayashi, Chair
                      AB 2298 (Ma) - As Amended:  March 29, 2012
           
          SUBJECT  :   Junk dealers and recyclers.

           SUMMARY  :  Authorizes an appointee by the head of a county 
          agriculture commission to inspect written records of sales and 
          purchases by junk dealers or recyclers.

           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)Requires a junk dealer or recycler to allow for periodic 
            inspection by persons authorized by the county sheriff or the 
            head of a city police department, of any premises maintained 
            for purposes of determining compliance with the recordkeeping 
            requirements, and, upon inspection, requires the junk dealer 
            or recycler to produce sales and purchase records.

           FISCAL EFFECT  :   Unknown.  This bill is keyed non-fiscal.

           COMMENTS  :   

           Purpose of this bill  .  According to the author, "California 
          farmers are seeing sharp increases in the rate of metal theft.  
          Thieves strip copper wires and pipes from farm equipment.  The 
          cost of replacing copper wire on an irrigation pump ranges from 
          $1,500 to $4,000.  When the irrigation pump is damaged in the 
          theft the repair costs can reach tens of thousands of dollars.  
          Yet this cost only covers repair of the pump, not the cost of 
          potential crop damage caused by lack of irrigation while the 
          pump was unusable.

          "In 2008, the California Farm Bureau Federation and the 
          California State Sheriffs' Association co-sponsored legislation 
          to address the high rates of metal theft in California.  The 
          2008 legislation (AB 844) significantly improved the record 
          keeping requirements for junk dealers and recyclers and changed 








                                                                  AB 2298
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          the way most payments were made for scrap metal.  However, the 
          new law has not been enough to stop the dramatic increase in 
          metal theft.

          "The primary purpose of the agricultural commission is to 
          protect the agricultural industry, environment, and the public 
          health, safety and welfare in California.  Agriculture 
          commissions are also tasked as keepers of weights and measures, 
          inspecting items such as junk dealers and recyclers scales, 
          gasoline dispensers, propane/butane meters, farm milk tanks, 
          livestock scales, concrete batch plant scales, truck scales, 
          etc..  As more and more metal is stolen in public places, 
          particularly acute in rural and agricultural areas, it has 
          become important to allow a person appointed by the head of an 
          agricultural commission to inspect junk dealers and recyclers to 
          ensure they are complying with existing law."

           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.  This information was to be kept on 
          file by the junk dealer or recycler and made available for 
          review by local law enforcement upon request, as specified.

          This bill authorizes county agriculture commissions to inspect 
          written records of sales and purchases by junk dealers or 
          recyclers.

           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).  

          SB 691 (Calderon), Chapter 730, 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).









                                                                  AB 2298
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           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          California Farm Bureau Federation (sponsor)

           Opposition 
           
          None on file.
           
          Analysis Prepared by  :    Rebecca May / B.,P. & C.P. / (916) 
          319-3301