BILL ANALYSIS Ó ------------------------------------------------------------ |SENATE RULES COMMITTEE | SB 1387| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ UNFINISHED BUSINESS Bill No: SB 1387 Author: Emmerson (R), et al. Amended: 8/20/12 Vote: 21 SENATE BUS., PROF. & ECON. DEV. COMMITTEE : 7-0, 4/9/12 AYES: Price, Emmerson, Correa, Hernandez, Negrete McLeod, Strickland, Wyland NO VOTE RECORDED: Corbett, Vargas SENATE PUBLIC SAFETY COMMITTEE : 7-0, 4/24/12 AYES: Hancock, Anderson, Calderon, Harman, Liu, Price, Steinberg SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8 SENATE FLOOR : 37-0, 5/14/12 AYES: Alquist, Anderson, Berryhill, Blakeslee, Calderon, Cannella, Corbett, Correa, De León, DeSaulnier, Dutton, Emmerson, Evans, Fuller, Gaines, Hancock, Harman, Hernandez, Huff, Kehoe, La Malfa, Leno, Lieu, Liu, Lowenthal, Negrete McLeod, Padilla, Pavley, Price, Rubio, Simitian, Steinberg, Vargas, Walters, Wolk, Wright, Yee NO VOTE RECORDED: Runner, Strickland, Wyland ASSEMBLY FLOOR : Not available SUBJECT : Metal theft SOURCE : Eastern Municipal Water District CONTINUED SB 1387 Page 2 DIGEST : This bill prohibits junk dealers and recyclers from possessing fire hydrants, manhole covers or backflow devices without proper certification, as specified; and provides that possession of stolen fire hydrants, manhole covers or backflow devices by persons engaged in the salvage, recycling, purchase or sale of scrap metal, shall be punishable by an additional fine up to $3000. Assembly Amendments (1) prohibit a junk dealer or recycler from possessing a reasonably recognizable, disassembled or inoperative fire hydrant, or fire department connection; (2) require a junk dealer or recycler who unknowingly takes possession of prohibited material as part of a load of otherwise nonprohibited materials without written certification to notify the appropriate law enforcement agency by the end of the next business day upon discovery of the prohibited material; and (3) define "written confirmation" and "appropriate law enforcement agency." ANALYSIS : Existing law, the Business and Professions Code: 1. Regulates junk dealers and recyclers and defines "junk" as secondhand and used machinery and all ferrous (containing iron) and nonferrous (excludes iron) scrap metals (as defined) and alloys, including any and all secondhand and used furniture, pallets, or other personal property, excluding livestock. 2. Requires junk dealers and recyclers to allow for periodic inspection of their premises or junk, to determine compliance with recordkeeping requirements, and requires junk dealers and recyclers to produce their records of sales and purchases and any property purchased, for inspection by any of the following: A. An officer holding a search warrant. B. A person appointed by the county sheriff or head of the police department. C. An officer with a court order to inspect the SB 1387 Page 3 records or property. 3. Prohibits junk dealers and recyclers from providing payment for nonferrous material, as defined, unless payment is made by cash or check, and the payment is mailed or provided on the third business day after the date of sale. 4. Requires junk dealers and recyclers to obtain a thumbprint from a seller, and to maintain the thumbprint record for two years after the date of sale. 5. Provides that inspections or seizures of thumbprints shall only be performed by a peace officer under a criminal search warrant, where probable cause for the warrant was based on a theft related to the sale for which the thumbprint was collected. 6. Requires junk dealers and recyclers produce their records for inspection on demand, however the thumbprint of the seller may only be obtained by a peace officer with a search warrant. Existing law, the Penal Code: 1. Provides that a swap meet vendor, as defined, or a person who deals in, or collects, merchandise or personal property, or their agent, employee, or representative, who buys or receives any property of a value greater than $950, that has been stolen or obtained in any manner under circumstances that should cause the buyer to inquire about the legal right to sell the property, and the buyer does not make a reasonable inquiry, shall be punished by imprisonment in a county jail for not more than one year, or imprisonment of up to three years. 2. Any person who buys or receives, for purposes of salvage, any part of a fire hydrant or fire department connection, including, but not limited to, bronze or brass fittings and parts, that has been stolen or obtained in any manner constituting theft or extortion, knowing the property to be so stolen or obtained, shall, in addition to any other penalty provided by law, be SB 1387 Page 4 subject to a criminal fine of not more than $3,000. This bill: 1. Prohibits a junk dealer or recycler from possessing any reasonably recognizable, disassembled or inoperative fire hydrant or fire department connection, including but not limited to reasonably recognizable brass fittings and parts, manhole cover or lid or parts, backflow device or connection to that device or parts that were owned or previously owned by an agency 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. Requires, upon the discovery of a prohibited material, a junk dealer or recycler who unknowingly takes possession of one or more designated items as part of a load of otherwise non-prohibited materials without a written certification has a duty to notify the appropriate law enforcement agency by the end of the next business day. 4. Defines "appropriate law enforcement agency" to mean: A. The police chief of the city, or his or her designee, if the specified item or items are located within the territorial limits of an incorporated city; or, B. The sheriff of the county or his or her designee if the specified item or items are located within the county but outside the territorial limits of an incorporated city. 1. Provides that the written confirmation shall relieve the junk dealer or recycler from any civil or criminal penalty for possession of the prohibited material and SB 1387 Page 5 requires the prohibited material to be set aside and not sold pending a determination by law enforcement. 2. Defines "agency" to mean a public agency, city, county, city and county, special district or private utility regulated by the Public Utilities Commission. 3. Defines "written confirmation" to mean 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. 4. Provides a fine up to $3,000, for any person engaged in the salvage, recycling, purchase, or sale of scrap metal who possess any of the following items that were owned or previously owned by any public agency, city, county, city and county, special district or private utility that have been stolen or obtained in an illegal manner: 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. 5. Adds finding and declarations. 6. Makes technical and clarifying changes. 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 represent a significant health and safety concern to the public. According to an April 2, 2012 Sacramento Bee article, "The cost of addressing the crime wave has likely surpassed $1 million over the past year. Officials with the city's Department of Transportation think they'll have to spend another $2 million over the next year repairing streetlights damaged by thieves." Over a New Year's weekend in 2011, 50 manhole covers were stolen from the streets of Sacramento. Cities, counties, and special districts are taking different approaches to address metal SB 1387 Page 6 theft. Los Angeles residents are being asked to "adopt" their neighborhood manhole covers in an attempt to "police" their streets. Eastern and Municipal Water Districts have issued $500 rewards for citizens who turn in thieves. Anaheim Public Utilities has issued a customer alert on their website asking residents to take precautions to protect their backflow devices. The City has further indicated that residents may wish to increase patrol and install video surveillance devices if they wish to further protect their devices. The rise in recycled metal prices has increased the demand for such items. Scrap metal from fire hydrants are estimated to recycle at $300 per ton; price fluctuates rapidly according to demand. Metal theft has been well documented in California. The Los Angeles Times reported an individual stealing 45 fire hydrants within the Inland Empire. Investigators of the incident reported, "The theft of metal to sell as scrap, such as copper wiring, bronze fixtures and iron from construction site, is common, especially during a prolonged economic slump." Metal Theft Costs . The increasing theft of backflow devices, manhole covers and fire hydrants or any parts of hydrants impact city budgets greatly, especially during tough economic times. Replacement hydrants can range between $1,000- $1,500, while accessories can cost up to $25 per hydrant. Backflow devices have been priced anywhere from $330 to $22,000 depending on the diameter, while cast iron manhole covers have a price tag of $231.71; not accounting for labor. Cities and counties have to repair and replace these items immediately due to public safety concerns. The sponsor of this bill, cities several incidents where individuals have suffered injuries because of missing manhole covers, leaving local entities open to the possibility of legal action. Enforcement Concerns . Dramatic increases in metal theft have sparked numerous legislative actions over the past decade. However, enforcement of such provisions has proven not to be as effective due to fiscal constraints in local law enforcement. Resident Deputy Sheriff Jim Currie of the Solano County Sheriff's Office reported that incidents of metal theft seem to be picking up in Rio Vista. "We've got SB 1387 Page 7 some things in place to help step up our surveillance, but like other agencies, we've cut back on people and patrol time. Our Sheriff is addressing that right now, but it has been rough with the budget situation the way it is," Currie said. The 2011 report from the National Insurance Crime Bureau identified 25,083 insurance claims compared with only 13,861 identified from the 2006-2008 report; an 81 percent increase. California was ranked third out of the top five states with 1,348 insurance claims. FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes Local: Yes SUPPORT : (Verified 5/9/12) Eastern Municipal Water District (source) Association of California Water Agencies 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 Sheriffs' Association City of Canyon Lake City of Cathedral City City of San Jacinto City of Thousand Oaks Contra Costa Water District Cucamonga Valley Water District East Bay Municipal Utility District El Dorado Irrigation District Elsinore Valley Municipal Water District Lake Hemet Municipal Water District League of California Cities Mesa Consolidated Water District Municipal Water District of Orange County Rancho California Water District San Bernardino County Sheriff's Office San Bernardino Valley Municipal Water District San Diego County Water Authority The Metropolitan Water District of Southern California Three Valleys Municipal Water District Walnut Valley Water District SB 1387 Page 8 Western Municipal Water District Western Riverside Council of Governments ARGUMENTS IN SUPPORT : According to the author's office, 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. While several laws have been enacted to curb metal theft, it is still prevalent throughout California. According to the Eastern Municipal Water District the sponsor, this bill seeks to address this epidemic and strengthen current law by eliminating the attractiveness of manhole covers, backflow devices, and fire hydrants to metal thieves as there would no longer be a buyer for these stolen items. JJA:d 8/29/12 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END ****