BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 1387
                                                                  Page  1

          Date of Hearing:   June 19, 2012

              ASSEMBLY COMMITTEE ON BUSINESS, PROFESSIONS AND CONSUMER 
                                     PROTECTION
                                 Mary Hayashi, Chair
                   SB 1387 (Emmerson) - As Amended:  April 19, 2012

           SENATE VOTE  :   37-0
           
          SUBJECT  :   Metal Theft.

           SUMMARY  :   Prohibits a junk dealer or recycler from possessing 
          fire hydrants, manhole covers or backflow devices unless 
          specified provisions are met and results in a criminal fine for 
          failure to comply.  Specifically,  this bill :

          1)Prohibits a junk dealer or recycler from possessing a fire 
            hydrant or fire department connection, including but not 
            limited to brass fittings and parts, a manhole cover or lid, 
            or backflow device or connection to that device unless 
            specified conditions are met.

          2)Requires written certification on letterhead of the agency or 
            utility that owns or previously owned the material described 
            in the certification, that the agency has sold the material or 
            is offering the material for sale, salvage, or, recycling; and 
            that the person identified in the certification is authorized 
            to negotiate the sale of that material. 

          3)Provides a fine up to $3000, for any person engaged in the 
            salvage, recycling, purchase, or sale of scrap metal who 
            possess any of the following items that have been obtained 
            illegally:

             a)   A fire hydrant or any part of that hydrant; 

             b)   Any fire department connection, including, but not 
               limited to bronze or brass fittings and parts; 

             c)   Manhole covers or lids or any part of those covers and 
               lids; or,

             d)   Backflow devices and connections or any part of those 
               devices.









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          4)Adds finding and declarations.

           EXISTING LAW  

          1)Defines "junk" as secondhand and used machinery and all 
            ferrous and nonferrous scrap metals and alloys including any 
            and all secondhand and used furniture, pallets, or other 
            personal property, other than livestock. 

          2)Defines a "junk dealer" as anyone engaged in the business of 
            buying, selling and dealing in junk; any person purchasing, 
            gathering, collecting or soliciting or procuring junk; or, any 
            person operating, carrying on, conducting or maintaining a 
            junk yard. 

          3)Requires every junk dealer and every recycler to keep a 
            written record of all sales and purchases made in the course 
            of his or her business. The written record shall include: 

             a)   The place and date of each sale or purchase of junk made 
               in the conduct of his or her business;

             b)   The name, valid driver's license number and state of 
               issue or California 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;

             c)   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;

             d)   A description of the item or items of junk purchased or 
               sold, including the item type and quantity, and 
               identification number, if visible; and,

             e)   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. 

          4)Requires junk dealers and recyclers to allow for periodic 
            inspection of any premise maintained and any junk to determine 
            compliance with record keeping requirements and requires junk 








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            dealers and recyclers to produce his or her records of sales 
            and purchase for inspection by any of the following.

             a)   An officer holding a warrant;

             b)   A person appointed by the sheriff of a county or 
               appointed by the head of the police department of a city; 
               and,

             c)   An officer holding a court order directing them to 
               examine the records or property.

          5)Provides that a junk dealer or recycler who fails to keep the 
            written record required is guilty of a misdemeanor.

          6)Prohibits junk dealers and recyclers from providing payments 
            for nonferrous materials unless specified conditions are met. 

          7)Provides, in the penal code, for any person who buys or 
            receives, for purposes of salvage, any part of a fire hydrant 
            or fire department connection that has been stolen or obtained 
            in any illegal manner shall, in addition to any other penalty 
            provided by law, be subject to a criminal fine of not more 
            than $3,000.

           FISCAL EFFECT  :   Unknown

           COMMENTS  :   

           Purpose of this bill  .  According to the author, "Metal theft is 
          on the rise as the price of metal continues to climb.  The theft 
          of metals has devastated both public and private property and 
          has harmed critical public infrastructure, making it difficult 
          to deliver essential utilities to customers.  Moreover, the 
          theft of certain metal devices can seriously threaten public 
          health and safety.  For instance, individuals have been severely 
          injured falling down uncovered manholes and vehicles have 
          incurred damage driving over manholes where the covers have been 
          stolen.  In addition, stolen backflow devices leave potable 
          water sources vulnerable to cross-contamination while stolen 
          fire hydrants render properties defenseless to fire."

           Background  .  Metal theft has become increasingly popular within 
          the last decade and the theft of fire hydrants, copper, manhole 
          covers, and backflow devices in particular are on the rise and 








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          represent a significant health and safety concern to the public. 
           The sponsor cities several incidents where individuals have 
          suffered injuries because of missing manhole covers, leaving 
          local entities open to the possibility of legal action.

          According to a report published in 2010 by the Office of 
          Electricity Delivery and Energy Reliability, reports of copper 
          theft have been most prevalent in California and Florida, but 
          have also been significant in Ohio, Alabama, Pennsylvania, 
          Michigan, New York, Texas, and Tennessee. Several factors appear 
          to contribute to rates of copper theft.  At the time of the 
          report, California was the State with the highest total of 
          copper thefts reported. 

          According to a January 8, 2012 Sacramento Bee article, over a 
          New Year's weekend in 2011, 50 manhole covers were stolen from 
          the streets of Sacramento with a replacement cost estimated at 
          $165 per cover.  And more recently, according to 
          scraptheftalert.com, Contra Costa Water District recently had 
          five backflow devices stolen, for a loss valued at approximately 
          $4500.
          In 2011, Eastern Municipal Water District, Western Municipal 
          Water District, and Elsinore Valley Municipal Water District 
          began offering a $500 reward to anyone who provides information 
          that leads to the arrest and conviction of individuals for 
          vandalism or theft of fire hydrants and other metal facilities. 

           Support  .  The sponsor of this bill, Eastern Municipal Water 
          District writes in support, "this bill is a critical measure 
          necessary to respond to the epidemic of metal theft occurring 
          throughout the state.  This bill would establish criminal fines 
          and penalties for unlawful possession of fire hydrants, manhole 
          covers and backflow devices.  Individuals have been severely 
          injured falling down manholes where the cover was stolen.  
          Automobiles and bicycles have been damaged driving over open 
          manholes.  Stolen backflow devices leave potable water sources 
          vulnerable to cross-contamination and furthermore, stolen fire 
          hydrants render properties defenseless to fire."  

          The Association of California Water Agencies writes in support, 
          "Metal theft has quickly become a severe drain on many water 
          districts budgets.  Many criminals may steal material that only 
          garners a small amount of money but the damage that the theft 
          creates costs our public agencies thousands of dollars to 
          repair." 








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          Related Legislation  .  AB 1508 (Carter) of 2012, revises the 
          exemption on the sale of nonferrous materials with a value under 
          $20 from certain payment restrictions by requiring the majority 
          of the transaction be for the redemption of beverage containers 
          and prohibiting the redemption of materials made of copper or 
          copper alloys, as specified.  This measure is currently awaiting 
          a hearing in the Senate Business, Professions, and Economic 
          Development Committee. 

           Previous Legislation  .  AB 316 (Carter) Chapter 317, Statutes of 
          2011, created a separate section for grand theft of copper 
          materials and added a fine of up to $2,500 on to the existing 
          penalties.

          AB 1859 (Adams) Chapter 659, Statutes of 2008, established that 
          any person who buys or receives, for purposes of salvage, any 
          part of a fire hydrant or fire department connection that has 
          been stolen, knowing the property to be so stolen, to be subject 
          to a criminal fine of not more than $3000.

          AB 844 (Berryhill) Chapter 731, Statutes of 2008, required junk 
          dealers and recyclers to comply with recordkeeping requirements 
          and new payment restrictions when purchasing nonferrous 
          materials.

          SB 691 (Calderon) Chapter 730, Statutes of 2008, required 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).  

           REGISTERED SUPPORT / OPPOSITION :

           Support 
           
          Eastern Municipal Water District (sponsor)
          Association of California Water Agencies
          AT&T
          California Association of Sanitation Agencies
          California Chamber of Commerce
          California Municipal Utilities Association
          California Professional Firefighters
          California Special Districts Association
          California State Association of Counties








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          California State Sheriffs' Association
          City of Hemet
          City of Roseville
          Contra Costa Water District
          Cucamonga Valley Water District
          Desert Water Agency
          East Bay Municipal Utility District
          East Valley Water District
          El Dorado Irrigation District
          Friant Water Authority
          Inland Empire Utilities Agency
          Irvine Ranch Water District
          Mesa Consolidated Water District
          Metropolitan Water District of Southern California
          Metropolitan Water District of Southern California
          Municipal Water District of Orange County
          Newhall County Water District
          Orchard Dale Water District
          Rowland Water District
          San Bernardino Valley Municipal Water District
          San Diego County Board of Supervisors
          San Diego County Water Authority
          Southwest California Legislative Council

           Opposition 
           
          None on File.

           Analysis Prepared by  :    Elissa Silva / B.,P. & C.P. / (916) 
          319-3301