BILL NUMBER: AB 1583	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 15, 2012
	AMENDED IN ASSEMBLY  APRIL 9, 2012

INTRODUCED BY   Assembly Member Roger Hernández
    (   Coauthor:   Assembly Member  
Galgiani  ) 

                        FEBRUARY 2, 2012

   An act to amend Sections 22750, 22753, and 22755 of, and to add
Section 21609.7 to, the Business and Professions Code, relating to
bulk merchandise pallets.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1583, as amended, Roger Hernández. Bulk merchandise pallets.
   (1) Existing law authorizes junk dealers and recyclers, as
defined, to sell and purchase junk, which includes secondhand and
used furniture, pallets, or other personal property, as specified.
Existing law requires junk dealers and recyclers to maintain written
records of specified information, and makes a violation of the
recordkeeping requirements a misdemeanor.
   This bill would prohibit junk dealers and recyclers from
purchasing or receiving bulk merchandise pallets, as defined, marked
with an indicia of ownership, as defined, from anyone except the
indicated owner, unless specified information is provided to the junk
dealer or recycler, and would require the junk dealer or recycler to
maintain a written record of that information. The bill would also
require that payment by the junk dealer for 5 or more bulk
merchandise pallets  to a person other than the indicated owner
 be made by check mailed to the address of the seller, as
specified, or by check or cash on or after the 3rd business day
following the transaction.
   (2) Existing law defines a merchandise pallet as a wooden or
plastic carrier or container of specified size, used by a
manufacturer or distributor to transport merchandise to retail
outlets, which has a notice permanently affixed to it identifying the
owner of the pallet and providing other specified information.
Existing law prohibits and makes it a crime for an unauthorized
person, as defined, to possess a merchandise pallet or for a person
other than its owner to obliterate the identification notice on a
pallet.
   This bill would expand these provisions to cover merchandise
pallets marked with indicia of ownership, as defined. The bill would
also prohibit and make it a crime for a person other than the owner
of the pallet to obliterate the indicia of ownership from a
merchandise pallet.
   (3) Existing law requires any person or entity purchasing plastic
bulk merchandise containers who is in the business of recycling,
shredding, or destruction of plastic bulk merchandise containers, as
defined, to obtain a proof of ownership record and other identifying
information from a person selling 5 or more containers, and to retain
the required record for a specified time. A violation of these
provisions is a misdemeanor.
   This bill would instead require a person or entity purchasing or
transporting plastic bulk merchandise containers who is in the
business of recycling, shredding, or destruction of plastic bulk
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 5 or more containers, and to
retain the required record for a specified time.  The bill
would also require that payment for 5 or more plastic bulk
merchandise containers be made by check mailed to the address of the
seller, as specified, or by check or cash on or after the 3rd
business day following the transaction. 
   Because this bill would expand the scope of a crime, the bill
would impose a state-mandated local program.
   (4) 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.  Section 21609.7 is added to the Business and
Professions Code, to read:
   21609.7.  (a) Except as provided in subdivision (b), no junk
dealer or recycler may purchase or receive bulk merchandise pallets
marked with an indicia of ownership from any person or entity other
than the indicated owner. For purposes of this section, "indicia of
ownership" means words, symbols, or registered trademarks printed,
stamped, etched, attached, or otherwise displayed on the exterior
surface of the merchandise pallet that reasonably identifies the
owner.
   (b) If the seller is not the indicated owner, a junk dealer or
recycler may purchase or receive bulk merchandise pallets only if the
seller or transferor provides a receipt from the indicated owner
verifying the seller's current ownership or a document indicating
that the seller or transferor is authorized by the indicated owner to
sell or transfer the merchandise pallets. Copies of these documents
shall be maintained by the junk dealer or recycler as part of the
written record of the transaction.
   (c) For a single transaction involving five or more bulk
merchandise pallets marked with indicia of ownership  where the
seller is not the indicated owner  , the junk dealer or recycler
shall make payment only by a check mailed to the address shown on
the driver's license or other government-issued photo identification
provided by the seller or by cash or check collected by the seller on
or after the third business day following the date of the
transaction.
   (d) For purposes of this section, "bulk merchandise pallets" means
plastic or wood containers, carriers, or holders used by a
manufacturer or distributor for bulk transport of merchandise to
wholesale or retail outlets.
  SEC. 2.  Section 22750 of the Business and Professions Code is
amended to read:
   22750.  For purposes of this chapter:
   (a) "Bakery tray" or "bakery basket" is a plastic or metal
container that holds bread or other baked goods and is used by a
distributor, retailer, or an agent of the distributor or retailer as
a means to transport, store, or carry those products, which has a
notice permanently affixed to it that does all of the following: (1)
identifies the company name of the owner of the item; (2) notifies
the public that the unauthorized possession of the item is a
violation of state law; and (3) lists an address or telephone number
for returning the item to the owner.
   (b) "Merchandise pallet" is a wooden or plastic carrier or
container, used by a manufacturer or distributor for bulk transport
of merchandise to wholesale or retail outlets marked with an indicia
of ownership. For purposes of this chapter, "indicia of ownership"
means words, symbols, or registered trademarks printed, stamped,
etched, attached, or otherwise displayed on the exterior surface of
the merchandise pallet that reasonably identify the owner.
  SEC. 3.  Section 22753 of the Business and Professions Code is
amended to read:
   22753.  The following acts are punishable as provided in
subdivision (b) of Section 489 or in Section 490 of the Penal Code as
to any bakery tray, bakery basket, or merchandise pallet described
in Section 22750:
   (a) Possession of a bakery tray, bakery basket, or merchandise
pallet by an unauthorized person.
   (b) Obliteration of the company owner's name on the bakery tray or
bakery basket, or obliteration of the indicia of ownership on a
merchandise pallet, except by the owner.
  SEC. 4.  Section 22755 of the Business and Professions Code is
amended to read:
   22755.  (a) For purposes of this section,  a plastic
  "plastic  bulk merchandise  container
  container   "  means a plastic crate or
shell used by a product producer, distributor, or retailer, or an
agent of the product producer, distributor, or retailer as a means
for the bulk transportation, storage, or carrying of retail
containers of milk, eggs, or bottled beverage products.
   (b) Any person or entity purchasing or transporting plastic bulk
merchandise containers, who is in the business of recycling,
shredding, or destruction of, or in the business of transporting for
the purpose of recycling, shredding, or destruction of, plastic bulk
merchandise containers, shall obtain a proof of ownership record or
bill of lading from a person selling or delivering five or more
plastic bulk merchandise containers that shows that the person
selling or delivering the containers has lawful possession or
ownership of the containers, and shall also verify the seller's
identity by a driver's license or other government-issued photo
identification. The proof of ownership record shall include all of
the following information:
   (1) The name, address, telephone number, and signature of the
seller or the seller's authorized representative.
   (2) The name and address of the buyer or consignee if not sold.
   (3) A description of the product including number of units.
   (4) The date of transaction. 
   (c) For a single transaction involving five or more plastic bulk
merchandise containers, the purchaser shall make payment only by a
check mailed to the address shown on the driver's license or other
government-issued photo identification provided by the seller or by
cash or check collected by the seller on or after the third business
day following the date of the transaction.  
   (d) 
    (c)  The information required to be collected by this
section shall be kept for one year from the date of purchase or
delivery, whichever is later. 
   (e) 
    (d)  Any person who violates the provisions of this
section is guilty of a misdemeanor.
  SEC. 5.  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.