BILL NUMBER: AB 1583	AMENDED
	BILL TEXT

	AMENDED IN SENATE  AUGUST 6, 2012
	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  21606, 21608.5,  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 obtain valid
identification, as specified, from a seller before providing
payment.  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 permit a seller to use a passport from any country
or a Matricula Consular issued by Mexico, along with another form or
identification bearing an address, or an identification card issued
by the United States, as identification for purposes of these
provisions. 
   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  by  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.
   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 21606 of the  
Business and Professions Code  is amended to read: 
   21606.  (a) Every junk dealer and every recycler shall set out in
the written record required by this article all of the following:
   (1) The place and date of each sale or purchase of junk made in
the conduct of his or her business as a junk dealer or recycler.
   (2)  One of the following methods of identification: 
 The 
    (A)     The  name, valid driver's
license number and state of issue or  California-issued
  California- or United States-issued 
identification card number  , and vehicle license number
including the state of issue of any motor vehicle used in
transporting the junk to the junk dealer's or recycler's place of
business  . 
   (B) The name, identification number, and country of issue from a
passport used for identification and the address from an additional
item of identification that also bears the seller's name.  
   (C) The name and identification number from a Matricula Consular
used for identification and the address from an additional item of
identification that also bears the seller's name.  
   (3) The vehicle license number, including the state of issue, of
any motor vehicle used in transporting the junk to the junk dealer's
or recycler's place of business.  
   (3) 
    (4)  The name and address of each person to whom junk is
sold or disposed of, and the license number of any motor vehicle
used in transporting the junk from the junk dealer's or recycler's
place of business. 
   (4) 
    (5)  A description of the item or items of junk
purchased or sold, including the item type and quantity, and
identification number, if visible. 
   (5) 
    (6)  A statement indicating either that the seller of
the junk is the owner of it, or the name of the person he or she
obtained the junk from, as shown on a signed transfer document.
   (b) Any person who makes, or causes to be made, any false or
fictitious statement regarding any information required by this
section, is guilty of a misdemeanor.
   (c) Every junk dealer and every recycler shall report the
information required in subdivision (a) to the chief of police or to
the sheriff in the same manner as described in Section 21628.
   SEC. 2.    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  , a passport from any other country in addition to
another item of identification bearing an address of the seller, or a
Matricula Consular in addition to another item of identification
bearing 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 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.
   SECTION 1.   SEC. 3.   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.   SEC. 4.   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.   SEC. 5.   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.   SEC. 6.   Section 22755 of the
Business and Professions Code is amended to read:
   22755.  (a) For purposes of this section, "plastic bulk
merchandise 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) 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.
   (d) Any person who violates the provisions of this section is
guilty of a misdemeanor.
   SEC. 5.   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.