BILL ANALYSIS �
AB 2312
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Date of Hearing: April 30, 2014
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
AB 2312 (Nestande) - As Amended: April 10, 2014
Policy Committee: Business and
Professions Vote: 14 - 0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill requires a junk dealer or recycler to request metal
theft alert notifications from an Internet-based theft alert
system and to provide a statement to the California Department
of Food and Agriculture (CDFA) that they have requested to do so
when applying for a weighmasters license. Specifically, this
bill:
1)Requires a junk dealer or recycler to include a statement in
the application for a weighmasters license that he or she has
requested to receive online theft alert notifications.
2)Requires a junk dealer or recycler to request theft alert
notifications regarding the theft of commodity metals,
including, but not limited to, ferrous metal, copper, brass,
aluminum, nickel, stainless steel, and alloys, in the junk
dealer's or recycler's geographic region from the theft alert
system maintained by the Institute of Scrap Recycling
Industries, Inc., (ISRI) or its successor.
3)Encourages, but does not require, local law enforcement
agencies to report thefts of commodity metals that have
occurred within their jurisdiction to the theft alert system
maintained by ISRI, or its successor, in order to ensure that
persons using that system receive timely and thorough
information regarding metal thefts.
4)Prohibits ISRI or its successor from requiring payment for the
use of the theft alert system by law enforcement agencies or
members of the public, and prohibits ISRI or its successor
from selling subscribers information to third parties.
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5)Makes finding and declarations.
FISCAL EFFECT
1)Minor and absorbable one-time administrative costs to CDFA to
update the weighmaster application form.
2)Unknown, likely minor, costs to local law enforcement should
they voluntarily report metal thefts to the theft alert
system. The bill prohibits ISRI or its successor from charging
law enforcement or the public to use the system.
3)Negligible costs to junk dealers or recyclers to request to
receive theft alert notifications over the internet.
COMMENTS
1)Purpose . This bill is an effort to help industry
representatives better detect items of metal theft by
requiring a junk dealer or recycler to register to receive
metal theft alert notifications from the online theft alert
system, and encouraging (but not requiring) local law
enforcement to report the theft of certain metal commodities
to the theft alert system.
2)Existing Law . The Weighmaster Enforcement program, under the
California Department of Food and Agriculture, licenses as
weighmasters, individuals or firms who weigh or measure bulk
commodities and issue certificates of accuracy. Until January
1, 2019, a weighmaster applicant who is a junk dealer or
recycler must supply additional information on the
application. This bill would additionally require a statement
indicating that the applicant has requested to receive theft
alert notifications
3)Background . Metal prices have risen sharply on the world
markets over recent years. For instance, a commonly-cited
index of metal prices has risen about 42% since 2005.
Consequently, thefts of metals such as copper, bronze, brass,
and aluminum have risen sharply in recent years, for the
purposes of sales to metal recyclers. Examples of metal-theft
include the stripping of copper wires and aluminum pipes from
agricultural equipment, copper wire stripped from utility
power lines, the removal of wire and pipe from construction
sites.
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The damage caused by these thefts is often several times the
value of the metal stolen, leaving the victims with hefty
repair costs. The U.S. Department of Energy has estimated that
metal theft costs U.S. businesses around $1 billion a year.
Theft alert notifications . ScrapTheftAlert.com is a free tool
for junk dealers and recyclers, law enforcement, and other
local agencies to allow an individual to alert others in the
scrap industry of significant thefts of materials within the
United States and Canada. Nationwide, the Web site has helped
recover over one million dollars of stolen material.
ScrapTheftAlert.com is maintained by ISRI and there is no
separate cost for users because ISRI members pay for the
operation of the Web site.
4)Previous legislation .
a) SB 485 (Calderon) Chapter 518, Statutes of 2013 requires
a junk dealer or recycler to submit additional information
regarding its junk dealer business to DFA when applying for
a weighmaster's license or a renewal license, requires the
DFA to complete an investigation of the information on the
application or renewal and increases the fees that junk
dealers or recyclers pay for each fixed location, and
sunsets those provisions on January 1, 2019.
b) AB 909 (Gray) of 2013 would have required the Board of
State and Community Corrections to establish the Metal
Theft Task Force Program to provide, evaluate and monitor
grants disbursed to enhance the capacity of local law
enforcement and prosecutors to deter, investigate, and
prosecute metal theft and related metal theft crimes.
Governor Brown vetoed the bill.
Analysis Prepared by : Jennifer Swenson / APPR. / (916)
319-2081