Bill Text: CA SB1387 | 2011-2012 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Metal theft.

Spectrum: Slight Partisan Bill (Republican 2-1)

Status: (Passed) 2012-09-27 - Chaptered by Secretary of State. Chapter 656, Statutes of 2012. [SB1387 Detail]

Download: California-2011-SB1387-Amended.html

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BILL NUMBER: SB 1387	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 11, 2012
	AMENDED IN SENATE  MARCH 27, 2012

INTRODUCED BY   Senator Emmerson
    (   Coauthor:   Assembly Member  
Bill Berryhill   ) 

                        FEBRUARY 24, 2012

   An act to amend Sections 21604 and 21608.5 of, and to add Section
21609.1 to, the Business and Professions Code, and to amend Sections
496a and 496e of the Penal Code, relating to metal theft.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1387, as amended, Emmerson. Metal theft.
   (1) Existing law governs the business of buying, selling, and
dealing in secondhand and used machinery and all ferrous and
nonferrous scrap metals and alloys, also known as "junk." Existing
law requires junk dealers and recyclers to keep a written record of
all sales and purchases made in the course of their business,
including the name and address of each person to whom junk is sold or
disposed of, and to preserve the written record for at least 2 years
after making the final entry of any purchase or sale of junk.
Existing law provides that the failure to keep a written record as
required is punishable as a misdemeanor.
   Existing law prohibits a junk dealer or recycler in this state
from providing payment for nonferrous metals unless, in addition to
the requirement to create and maintain a written record, specified
requirements are met, including that the payment for the material be
made by cash or check and that, at the time of sale, the junk dealer
or recycler obtains a clear photograph or video of the seller.
Existing law requires the junk dealer or recycler to preserve this
information for 2 years after the date of sale.
   This bill would prohibit any junk dealer or recycler from
possessing a fire hydrant, fire department connection, including, but
not limited to, bronze or brass fittings or parts, a manhole cover
or lid, or any part of that cover or lid, or a backflow device and
connections to that device without a written certification on the
letterhead of the agency or utility that owns or previously owned the
material and that the entity has sold or is offering the material
for sale, and that the person possessing the certificate and
identified in the certificate is authorized to negotiate the sale of
the material. The bill would make junk dealers and recyclers civilly
liable and would also provide that if a junk dealer or recycler lacks
the certification described above, the lack of that certification
would give rise to the presumption that the property was stolen for
purposes of the provisions proscribing receiving stolen property.
   (2) Existing law makes it a crime to receive stolen property.
Existing law specifically provides that a person who is a dealer in
or collector of junk, metals, or secondhand materials, or the agent,
employee, or representative of the dealer or collector, and who buys
or receives any wire, cable, copper, lead, solder, mercury, iron, or
brass that he or she knows or reasonably should know is ordinarily
used by or ordinarily belongs to a railroad or other transportation,
telephone, telegraph, gas, water, or electric light company, or
county, city, city and county, or other political subdivision of the
state engaged in furnishing public utility service, without using due
diligence to ascertain that the person selling or delivering the
property has the legal right to do so, is guilty of criminally
receiving that property. Existing law provides that this crime is a
misdemeanor. Existing law also provides that any person who buys or
receives, for purposes of salvage, any part of a fire hydrant or fire
department connection, as specified, is subject to a criminal fine
of not more than $3,000.
    This bill would also prohibit any person, including a junk dealer
or recycler, engaged in the salvage, recycling, or purchase or sale
of scrap metal from possessing those items. The bill would expand the
prohibition described above proscribing the purchase or receipt of
items that a dealer or collector knows or reasonably should know is
ordinarily used by or ordinarily belongs to a transportation or
utility company, or a political subdivision of the state engaged in
furnishing public utility service, to also apply to recyclers, and to
apply to the fire hydrants and other items described above. The bill
would also expand the provision providing that any person who buys
or receives, for purposes of salvage, any part of a fire hydrant or
fire department connection is subject to a criminal fine of not more
than $3,000 by making that fine applicable to any person who is
engaged in the salvage, recycling, purchase, or sale of scrap metal
and who, knowing that the item has been stolen or obtained in any
manner constituting theft or extortion, possesses a fire hydrant, or
any part thereof, a fire department connection, including brass
fittings and parts, a manhole cover or lid, or any part of that cover
or lid, or a backflow device and connections to that device, or any
part of that device.
   By creating new crimes, the bill would impose a state-mandated
local program.
   The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  The Legislature hereby finds and declares all of the
following:
   (a) Theft of fire hydrants, manhole covers, and backflow devices
has significantly increased in recent years and represents a
significant health and safety issue.
   (b) Local jurisdictions and public agencies have gone to great
lengths to preserve and protect residents and their property from the
damages that can result from such theft.
   (c) Additional laws and regulations need to be enacted that would
provide local governments with the tools to further protect both
local government property and the health and safety of the residents
they serve.
   (d) Therefore, it is the intent of the Legislature to strictly
prohibit fire hydrants, manhole covers, and backflow devices from
being accepted, in whole or in part, by a recycler or junk dealer for
the purpose of salvage, unless presented with written certification
by a representative of the agency or utility owning or previously
owning the material.
   (e) By strictly prohibiting these items from being recycled, the
burden is taken off of the recyclers as they will no longer be
saddled with the responsibility of having to decipher whether the
items were stolen or obtained illegally.
   (f) Furthermore, the Legislature thinks it is important to enable
an agency to recoup, repair, and replace costs, attorney's fees, and
lawsuit costs and will establish penalties for theft of such items.
  SEC. 2.  Section 21604 of the Business and Professions Code is
amended to read:
   21604.  Except as otherwise provided in this article, this article
does not apply to:
   (a) Any person who buys or sells junk acquired in the conduct of
any business other than that of a junk dealer or recycler.
   (b) Except as provided in Section 21609.1, those purchases of
scrap metal by a junk dealer or recycler when the payment for the
scrap metal is by check issued to the company represented as being
the owner of the scrap.
   (c) Scrap metal purchased or received from another junk dealer or
recycler who has recorded, reported, and held the material as
required. The purchase or receipt shall also be exempt from further
holding or reporting provided that the selling party gives the buyer
written assurance of this fact. The seller shall be held responsible
for any failure to report or hold.
  SEC. 3.  Section 21608.5 of the Business and Professions Code is
amended to read:
   21608.5.  (a) A junk dealer or recycler in this state shall not
provide payment for nonferrous material unless, in addition to
meeting the written record requirements of Sections 21605 and 21606,
all of the following requirements are met:
   (1) The payment for the material is made by cash or check. The
check may be mailed to the seller at the address provided pursuant to
paragraph (3) or the cash or check may be collected by the seller
from the junk dealer or recycler on or after the third business day
after the date of sale.
   (2) At the time of sale, the junk dealer or recycler obtains a
clear photograph or video of the seller.
   (3) (A) Except as provided in subparagraph (B), the junk dealer or
recycler obtains a copy of the valid driver's license of the seller
containing a photograph and an address of the seller or a copy of a
state or federal government-issued identification card containing a
photograph and an address of the seller.
   (B) If the seller prefers to have the check for the material
mailed to an alternative address, other than a post office box, the
junk dealer or recycler shall obtain a copy of a driver's license or
identification card described in subparagraph (A), and a gas or
electric utility bill addressed to the seller at that alternative
address with a payment due date no more than two months prior to the
date of sale. For purposes of this paragraph, "alternative address"
means an address that is different from the address appearing on the
seller's driver's license or identification card.
   (4) The junk dealer or recycler obtains a clear photograph or
video of the nonferrous material being purchased.
   (5) The junk dealer or recycler shall preserve the information
obtained pursuant to this subdivision for a period of two years after
the date of sale.
   (6) (A) The junk dealer or recycler obtains a thumbprint of the
seller, as prescribed by the Department of Justice. The junk dealer
or recycler shall keep this thumbprint with the information obtained
under this subdivision and shall preserve the thumbprint in either
hardcopy or electronic format for a period of two years after the
date of sale.
   (B) Inspection or seizure of the thumbprint shall only be
performed by a peace officer acting within the scope of his or her
authority in response to a criminal search warrant signed by a
magistrate and served on the junk dealer or recycler by the peace
officer. Probable cause for the issuance of that warrant must be
based upon a theft specifically involving the transaction for which
the thumbprint was given.
   (b) Paragraph (1) of subdivision (a) shall not apply if, during
any three-month period commencing on or after the effective date of
this section, the junk dealer or recycler completes five or more
separate transactions per month, on five or more separate days per
month, with the seller and, in order for paragraph (1) of subdivision
(a) to continue to be inapplicable, the seller must continue to
complete five or more separate transactions per month with the junk
dealer or recycler.
   (c) This section shall not apply if, on the date of sale, the junk
dealer or recycler has on file or receives all of the following
information:
   (1) The name, physical business address, and business telephone
number of the seller's business.
   (2) The business license number or tax identification number of
the seller's business.
   (3) A copy of the valid driver's license of the person delivering
the nonferrous material on behalf of the seller to the junk dealer or
the recycler.
   (d) This section shall not apply to the redemption of nonferrous
material having a value of not more than twenty dollars ($20) in a
single transaction, when the primary purpose of the transaction is
the redemption of beverage containers under the California Beverage
Container Recycling and Litter Reduction Act, as set forth in
Division 12.1 (commencing with Section 14500) of the Public Resources
Code.
   (e) This section shall not apply to coin dealers or to automobile
dismantlers, as defined in Section 220 of the Vehicle Code.
   (f) For the purposes of this section, "nonferrous material" means
copper, copper alloys, stainless steel, or aluminum, but does not
include beverage containers, as defined in Section 14505 of the
Public Resources Code, that are subject to a redemption payment
pursuant to Section 14560 of the Public Resources Code.
   (g) This section is intended to occupy the entire field of law
related to  seller identity and reporting requirements in
connection with  junk dealer or recycler transactions
involving nonferrous material. However, a city or county ordinance,
or a city and county ordinance, relating to the subject matter of
this section is not in conflict with this section if the ordinance is
passed by a two-thirds vote and it can be demonstrated by clear and
convincing evidence that the ordinance is both necessary and
addresses a unique problem within and specific to the jurisdiction of
the ordinance that cannot effectively be addressed under this
section.
   (h) This section shall become operative on December 1, 2008.
  SEC. 4.  Section 21609.1 is added to the Business and Professions
Code, to read:
   21609.1.  No junk dealer or recycler shall possess any fire
hydrant, or fire department connection, including, but not limited
to, brass fittings and parts, or manhole cover or lid or part of that
cover or lid, or backflow device or connection to that device or
part of that device in the absence of a written certification on the
letterhead of the agency or utility owning or previously owning the
material described in the certification that the agency has either
sold the material described or is offering the material for sale,
salvage, or recycling, and that the person possessing the
certification and identified in the certification is authorized to
negotiate the sale of that material. The lack of a certification
shall give rise to a presumption, in the case of property that was
stolen, that the junk dealer or recycler knew or should have known
that the property was stolen for purposes of prosecution pursuant to
Sections 496, 496a, and 496e of the Penal Code. A junk dealer or
recycler violating this section shall also be liable to the owner of
the prohibited material for the value of the material and for
damages, including the cost of replacement and repair of damage
incurred by the agency when the materials were removed, court costs,
and reasonable attorney's fees in a civil suit by the owner.
  SEC. 5.  Section 496a of the Penal Code is amended to read:
   496a.  (a) Every person who, being a dealer in or collector or
recycler of junk, metals, or secondhand materials, or the agent,
employee, or representative of that dealer or collector or recycler,
buys or receives any wire, cable, copper, lead, solder, mercury, iron
or brass, fire hydrants and connections to those hydrants,
including, but not limited to, bronze or brass fittings and parts, or
manhole covers or lids, or backflow devices and connections to that
device, which he or she knows or reasonably should know is ordinarily
used by or ordinarily belongs to a railroad or other transportation,
telephone, telegraph, gas, water, or electric light company or fire
department, or county, city, city and county, or other political
subdivision of this state engaged in furnishing public utility
service, including water and sanitation services, or fire protection
without using due diligence to ascertain that the person selling or
delivering the same has a legal right to do so, is guilty of
criminally receiving that property, and is punishable, by
imprisonment in a county jail for not more than one year, or by
imprisonment pursuant to subdivision (h) of Section 1170, or by a
fine of not more than two hundred fifty dollars ($250), or by both
that fine and imprisonment.
   (b) (1) Any person buying or receiving material pursuant to
subdivision (a) shall, in addition to complying with the requirements
of Sections 21607 and 21608.5 of the Business and Professions Code,
obtain evidence of the seller's identity, including, but not limited
to, that seller's full name, signature, address, driver's license
number, vehicle license number, and the license number of the vehicle
delivering the material.
   (2) The record of the transaction shall include an appropriate
description of the material purchased and such record shall be
maintained pursuant to Section 21607 of the Business and Professions
Code.
  SEC. 6.  Section 496e of the Penal Code is amended to read:
   496e.  (a) Any person who is engaged in the salvage, recycling,
purchase, or sale of scrap metal and who possesses any of the
following items that have been stolen or obtained in any manner
constituting theft or extortion, knowing the property to be so stolen
or obtained, is guilty of a crime:
    (1) A fire hydrant or any part of that hydrant.
   (2) Any fire department connection, including, but not limited to,
bronze or brass fittings and parts.
   (3) Manhole covers or lids, or any part of those covers and lids.
   (4) Backflow devices and connections to that device, or any part
of that device.
   (b) A person who violates subdivision (a) shall, in addition to
any other penalty provided by law, be subject to a criminal fine of
not more than three thousand dollars ($3,000).
  SEC. 7.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.