BILL ANALYSIS Ó
SB 1387
Page 1
Date of Hearing: July 3, 2012
Counsel: Gabriel Caswell
ASSEMBLY COMMITTEE ON PUBLIC SAFETY
Tom Ammiano, Chair
SB 1387 (Emmerson) - As Amended: June 27, 2012
SUMMARY : Prohibits junk dealers and recyclers from possessing
fire hydrants, manhole covers or backflow devices without proper
certification. Specifically, this bill :
1)Provides that 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.
2)Clarifies that a junk dealer or recycler who unknowingly takes
possession of one or more of the prohibited items listed in
this bill as part of a load of otherwise nonprohibited
materials without a written certification has a duty to notify
the appropriate law enforcement agency by the end of the next
business day upon discovery of the prohibited material. The
prohibited material shall be set aside and not sold pending a
determination made by a law enforcement agency.
a) Specifies that "agency" means a public agency, city,
county, city and county, special district, or private
utility regulated by the Public Utilities Commission.
b) Specifies "written confirmation" means a confirmation in
written form by the junk dealer or recycler to a law
enforcement agency, including electronic mail, facsimile,
or a letter delivered in person or by certified mail.
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3)Recast the provisions of law, dealing with receiving stolen
fire hydrants, etc., and adds to the items covered under that
statute manhole covers or lids, or any part of those covers
and lids and backflow devices and connections to that device,
or any part of that device.
EXISTING LAW :
1)Provides that theft in any of the following cases is grand
theft (Penal Code Section 487.):
a) When the money, labor, or real or personal property
taken is of a value exceeding $950;
b) When domestic fowls, avocados, olives, citrus or
deciduous fruits, other fruits, vegetables, nuts,
artichokes, or other farm crops are taken of a value
exceeding $250;
c) When fish, shellfish, mollusks, crustaceans, kelp,
algae, or other aquacultural products are taken from a
commercial or research operation which is producing that
product, of a value exceeding $250;
d) Where the money, labor, or real or personal property is
taken by a servant, agent, or employee from his or her
principal or employer and aggregates $950 or more in any 12
consecutive month period;
e) When the property is taken from the person of another;
f) When the property taken is an automobile, horse, mare,
gelding, any bovine animal, any caprine animal, mule, jack,
jenny, sheep, lamb, hog, sow, boar, gilt, barrow, or pig;
g) Theft of a firearm.
2)Provides that grand theft is punishable as follows (Penal Code
Section 489.):
a) When the grand theft involves the theft of a firearm, by
imprisonment in the state prison for 16 months, two, or
three years.
b) In all other cases, by imprisonment in a county jail not
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exceeding one year or in the state prison for 16 months,
two, or three years.
3)Provides that every junk dealer and every recycler, as
defined, in this state is hereby required to keep a written
record of all sales and purchases made in the course of his or
her business. (California Business and Professions Code
Section 21605.) Those records must include:
a) 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.
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.
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 it from, as shown on a signed transfer
document.
f) 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.
g) Every junk dealer and every recycler shall report the
above information to the chief of police, if the dealer's
or recycler's business is located in a city, or to the
sheriff, if the dealer's or recycler's business is located
in an unincorporated part of a county, upon request of the
chief of police or sheriff and on a monthly basis, except:
h) The chief of police or sheriff may request the report
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described in this section on a weekly basis if there is an
ongoing investigation of the junk dealer or recycler
concerning possible criminal activity. The chief of police
or sheriff may request weekly reports for no more than a
two-month period unless the investigation of the junk
dealer or recycler continues and the chief of police or
sheriff makes a subsequent request for weekly reports for
an additional two-month period or part thereof.
(California Business and Professions Code Section 21606.)
4)Provides that any junk dealer or recycler who fails to keep
the required written records, or who refuses, upon demand, as
specified, to exhibit the required written record, or who
destroys that record within two years after making the final
entry of any purchase or sale of junk therein is guilty of a
misdemeanor. ÝCalifornia Business and Professions Code
Section 21608 (a).] Violations are punishable as follows:
a) For a first offense, by a fine of not less than $500, or
by imprisonment in the county jail for not less than 30
days, or both.
b) For a second offense, by a fine of not less than $1000,
or by imprisonment in the county jail for not less than 30
days, or both. In addition to any other sentence imposed
pursuant to this paragraph, the court may order the
defendant to stop engaging in business as a junk dealer or
recycler for a period not to exceed 30 days.
c) For a third or any subsequent offense, by a fine of not
less than $2000, or by imprisonment in the county jail for
not less than six months, or both. In addition to any
other sentence imposed pursuant to this paragraph, the
court shall order the defendant to stop engaging in
business as a junk dealer or recycler for a period of 30
days. ÝCalifornia Business and Professions Code Section
21608 (b).]
5)Defines "secondhand dealer" as any person or entity taking in
pawn, accepting for sale of consignment, trading, et cetera,
any tangible personal property. (California Business and
Professions Code Section 21625.)
6)Defines "pawnbroker" as a person engaged in the business of
receiving goods in pledge for security for a loan.
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(California Financial Code Section 21000.)
7)Provides that, except as specified, 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:
a) The payment for the material is made by cash or check.
The check may be mailed to the seller at a verified
address, as specified below, or the cash or check may be
collected by the seller from the junk dealer or recycler on
the third business day after the date of sale.
b) At the time of sale, the junk dealer or recycler obtains
a clear photograph or video of the seller.
c) Except as provided below, 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.
d) 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, as specified, 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.
e) The junk dealer or recycler obtains a clear photograph
or video of the nonferrous material being purchased.
f) The junk dealer or recycler shall preserve the
information obtained pursuant to this paragraph for a
period of two years after the date of sale.
g) 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
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preserve the thumbprint in either hardcopy or electronic
format for a period of two years after the date of sale.
h) 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. (California Business and Professions
Code Section 21608.5.)
8)Provides that pawnbrokers and secondhand dealers shall report
daily on forms approved or provided by the Department of
Justice, all personal property purchased, taken in trade,
taken in pawn, et cetera, to local law enforcement. The
report shall include the following information: (California
Business and Professions Code Section 21628)
a) The name and current address and identification of the
intended seller or pledgor of the property;
b) A complete and reasonably accurate description of
serialized or nonserialized property;
c) A certification by the intended seller or pledgor that
he or she is the owner of the property, or has the
authority of the owner to sell or pledge the property and
that any information provided is true and complete; and
d) A legible fingerprint taken from the intended seller or
pledgor.
9)Provides that the Department of Justice (DOJ) shall, in
consultation with local law enforcement, develop clear and
comprehensive categories of property subject to reporting
requirements in Business and Professions Code Section 21628.
The categories shall be incorporated by secondhand dealers and
coin dealers (California Business and Professions Code Section
21626) for reporting requirements. DOJ and local law
enforcement, in consultation with secondhand dealer and coin
dealer representatives, shall develop a standard statewide
format for electronic reporting. Twelve months after the
format and the categories have been developed, each secondhand
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dealer and coin dealer shall make reports electronically.
Until that time, each secondhand dealer and coin dealer may
either continue to report this information using existing
forms and procedures or may begin electronically reporting
this information under the reporting categories and using the
new format when it has been developed. (California Business
and Professions Code Section 21628.)
10)Requires a secondhand dealer to make acquired property
available for law enforcement inspection for specified time
periods. (California Business and Professions Code Section
21636.)
FISCAL EFFECT : Unknown
COMMENTS :
1)Author's Statement : According to the author, "To address the
metal theft epidemic and strengthen current law, SB 1387 seeks
to provide cities, counties, special districts, and private
utility companies with the additional tools they need to
prosecute thieves and recyclers who violate the law.
Specifically, SB 1387 would prohibit a junk dealer or recycler
from possessing manhole covers, backflow devices, and fire
hydrants without written certification on the letterhead of
the agency or utility that owns or previously owned that
material. As a result, this bill would relieve junk dealers or
recyclers from the responsibility of determining whether or
not any of the three items in question are stolen since they
will no longer be eligible for recycling without an
appropriate certification. Failure to comply with this
provision would result in a criminal fine of up to $3,000.
It's important to note that current law already imposes a
criminal fine of up to $3,000 for unlawful possession of a
fire hydrant. SB 1387 would amend the law to add manhole
covers and backflow devices."
2)Metal Theft in California : Metal theft has been well
documented throughout California. In 2007, the New York Times
reported:
" 'This is the No. 1 crime affecting farmers and ranchers right
now,' said Bill Yoshimoto, an assistant district attorney in
the agriculturally rich Tulare County in the Central Valley.
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"'Virtually every farmer in the Central Valley has been hit,'
Mr. Yoshimoto said. 'But some have been hit far beyond the
value of the metal. For the farmer to replace the pump is
anywhere between $3,000 to $10,000, and then there is
downtime, and loss to crops.'
"Some sheriff's departments in agricultural counties have rural
crime units that investigate metal crimes almost exclusively
these days, setting up sting operations in recycling shops and
tagging copper bait with electronic tracking devices.
"Metal theft from California farmers rose 400 percent in 2006
over the previous year, according to the Agricultural Crime
Technology Information and Operations Network, a regional law
enforcement group headed by Mr. Yoshimoto. The numbers this
year are equally high. Through the end of June, there were
nearly 1000 incidents of scrap metal theft on farms, causing
more than $2 billion in losses, the group's figures show.
ÝUnusual Culprits Cripple Farms in California, New York Times
(July 1, 2007).]
3)Metal Theft as an Increasing Problem Nationwide : Metal theft
has been increasing nationwide. According to a March 27, 2008
U.S. News and World Report article, some areas have seen an
increase in metal theft of 400% since 2003 statistics.
Drastic increases in market costs of metals (such as copper,
aluminum, and bronze) are the main reason for the increase in
theft. For instance, in 2003, the cost of copper on the open
market was $0.75 per unit; in 2008, the cost of copper rose to
$3.60 per unit.
One reason cited for the increase in metal theft is the lack of
a requirement in most states to require scrap metal dealers to
document where they receive their metal. Even where those
laws exist, police have not enforced them. One method states
are using is requiring scrap metal dealers to take the name
and thumb print of sellers in order that stolen goods can be
more easily traced, thereby reducing the number costly police
investigations. California requires scrap dealers maintain a
written record and driver's license number of persons selling
metal to dealers.
Metal theft has not been confined to farms and rural areas. The
Monterey County Herald reports:
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"Demand for copper, brass, platinum, stainless steel and other
valuable metals has turned the underside of cars, abandoned
buildings, farms, freeways and industrial yards into gold
mines for thieves. 'It's an easy way to make a quick buck,'
said sheriff's detective Matt Davis. 'Everybody is stealing.'
" 'On Monday, deputies found three men stripping almost 900 feet
of copper cable, which appeared to have been stolen from an
industrial yard. They could have sold the copper for about
$6500, Davis said.
"'It's happening all over the state,' he said. Robert Gomez,
manager of a Salinas auto shop, said recently he welded a
catalytic converter back onto a truck after thieves tried to
remove it. Other shops report making similar repairs for
customers. Gomez said 'catalytic converters are hot items for
thieves because they have valuable metals and are easy to get
to.'
" 'They can just slide right under (a car) and get to it,' he
said. 'The value is the stuff inside.'
"'A stolen converter can be sold for about $100 for the metal it
contains. But the owner of the vehicle may have to spend up
to $500 to replace it,' Gomez said.
"In Southern California, thieves have made off with guardrails
and road signs on freeways, according to the state Department
of Transportation.
"In Contra Costa County, suspected metal thieves are believed to
have caused a toxic spill after they took brass fittings from
tanks at a chemical plant in Richmond.
"Last week at a ballpark in Ventura, thieves stripped wires from
an electrical vault, damaging lights used for Little League
games.
"Jeff Smith, a spokesman for Pacific Gas & Electric Co., said
'theft of electrical wire is costly and thieves risk
electrocution, even when the power has been shut off.'
"'During the first six months of 2007, PG&E lost more than
$800,000 worth of copper cable to thievery at service yards,
power plants and utility connections in Northern California,'
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Smith said.
"'Like anything else, when the market value goes up, it becomes
a target,' Smith said. 'It's become increasingly more serious
every year.' ÝMetal Marauders on Loose, Monterey County
Herald (May 10, 2008).]
4)Argument in Support : According to the Eastern Municipal Water
District, "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."
5)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.
6)Prior Legislation :
a) AB 316 (Carter), Chapter 317, Statutes of 2011, added
copper theft to the list of offenses for which there is a
lower monetary requirement to charge an offender with grand
theft.
b) AB 2372 (Ammiano), Chapter 693, Statutes of 2010,
increased the threshold amount that constitutes grand theft
from $400 to $950.
c) AB 844 (Berryhill), Chapter 731, Statutes of 2009,
requires recyclers to hold payment for three days, check a
photo ID and take a thumbprint of anyone selling scrap
metals. AB 844 also requires any person convicted of metal
theft to pay restitution for the materials stolen and for
any collateral damage caused during the theft.
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d) AB 1778 (Ma), Chapter 733, Statutes of 2009, requires
recyclers to obtain identifying information of individuals
who bring in more than $50 worth of CRV recyclables and
newspapers. AB 1778 also requires that payments of $50 or
more be made by check.
e) AB 1859 (Adams), Chapter 659, Statutes of 2009, creates
a fine of not more than $3,000 for any person who knowingly
receives any part of a fire hydrant, including bronze or
brass fittings and parts.
f) SB 447 (Maldonado), Chapter 732, Statutes of 2009,
assists local law enforcement officials in quickly
investigating stolen metal and apprehending thieves by
requiring scrap metal dealers and recyclers to report what
materials are being scraped at their facilities and by whom
on a daily basis. These rules already apply to pawn shop
dealers.
g) SB 691 (Calderon), Chapter 720, Statutes of 2009,
requires junk dealers and recyclers to take thumbprints of
individuals selling copper, copper alloys, aluminum and
stainless steel. Sellers must also show a government
identification (ID) and proof of their current address.
Recyclers who violate the law face suspension or revocation
of their business license and increased fines and jail
time.
h) AB 2668 (DeVore), of the 2007-08 Legislative Session,
would have included theft or vandalism of fire equipment
within the definition of grand theft. AB 2668 failed
passage in this Committee.
i) AB 2724 (Benoit), of the 2007-08 Legislative Session,
required any person convicted of grand theft involving the
theft of wire, cable, copper, lead, solder, mercury, iron
or brass of a kind ordinarily used by, or that 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
this state engaged in furnishing public utility service, or
farm, ranch or industrial facility or other commercial or
residential building, to pay a fine of $100 for a first
offense and $200 for any subsequent offense. AB 2724 failed
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passage in the Senate Committee on Public Safety.
j) AB 2827 (Runner), Chapter 105, Statutes of 2008, added
defrauding a public housing authority to the definition of
grand theft.
aa) AB 2705 (Goldberg), of the 2003-04 Legislative Session,
would have increased the threshold for grand theft from
$400 to $1,000 and the threshold amount for specified
thefts from $100 to $250. AB 2705 was vetoed.
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 District Attorneys Association
California Municipal Utilities Association
California Professional Firefighters
California Special Districts Association
California State Association of Counties
California State Sheriffs' Association
Cathedral City
City of Canyon Lake
City of Hemet
City of Roseville
City of San Jacinto
City of Thousand Oaks
Contra Costa Water District
Cucamonga Valley Water District
Desert Water Agency
East Bay Municipal Utility District
East Valley Water District
El Dorado Irrigation District
Elsinore Valley Municipal Water District
Friant Water Authority
Inland Empire Utilities Agency
Irvine Ranch Water District
Lake Hemet Municipal Water District
League of California Cities
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Mesa Consolidated Water District
Metropolitan Water District of Southern California
Municipal Water District of Orange County
Newhall County Water District
Orchard Dale Water District
Rancho California Water District
Rowland Water District
San Bernardino County Sheriff's Department
San Bernardino Valley Municipal Water District
San Diego County Board of Supervisors
San Diego County Water Authority
San Francisco Public Utilities Commission
Southwest California Legislative Council
Three Valleys Municipal Water District
Walnut Valley Water District
Western Municipal Water District
Western Riverside Council of Governments
Opposition
None
Analysis Prepared by : Gabriel Caswell / PUB. S. / (916)
319-3744