BILL ANALYSIS Ó AB 2312 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 2312 (Nestande and Olsen) As Amended August 5, 2014 Majority vote ----------------------------------------------------------------- |ASSEMBLY: |73-0 |(May 8, 2014) |SENATE: |33-1 |(August 11, | | | | | | |2014) | ----------------------------------------------------------------- Original Committee Reference: B., P. & C.P. SUMMARY : Requires a junk dealer or recycler to request to receive metal theft alert notifications from an Internet-based theft alert system and requires a junk dealer or recycler to provide a statement that they have requested to receive theft alert notifications when seeking a weighmasters license. Specifically, this bill : 1)Requires a junk dealer or recycler to include a statement in the application for a weighmasters license that he or she has requested to receive online theft alert notifications, as specified. 2)Requires a junk dealer or recycler to request to receive theft alert notifications regarding the theft of commodity metals, including, but not limited to, ferrous metal, copper, brass, aluminum, nickel, stainless steel, and alloys, in the junk dealer's or recycler's geographic region from the theft alert system maintained by the Institute of Scrap Recycling Industries, Inc., (ISRI) or its successor. 3)Encourages but does not require local law enforcement agencies to report thefts of commodity metals, including but not limited to, ferrous metal, copper, brass, aluminum, nickel, stainless steel, and alloys, that have occurred within their jurisdiction to the theft alert system maintained by ISRI, or its successor, in order to ensure that persons using that system receive timely and thorough information regarding metal thefts. 4)Exempts a junk dealer or recycler from the requirement to request to receive theft alert notifications if ISRI or its successor requires payment for use of the theft alert system. AB 2312 Page 2 5)Prohibits ISRI or its successor from selling subscriber information to third parties. 6)Makes finding and declarations that: a) ISRI developed ScrapTheftAlert.com which is a Web-based theft alert system that allows law enforcement to alert recyclers of reported stolen material and allows recyclers to alert area law enforcement when they have received materials they believe might have been stolen; b) This alert system broadcasts theft alerts to every registered user within a 100-mile radius of where the theft occurred and can expand depending on the circumstances; and, c) ISRI has worked closely with law enforcement and has integrated their suggestions into the system's latest update to make its use more user-friendly for law enforcement, including no cost to law enforcement or non-ISRI members and specifies that members of ISRI pay for the entire database through their membership dues. The Senate amendments exempt a junk dealer or recycler from the requirement to request to receive theft alert notifications if ISRI or its successor requires payment for use of the theft alert system. This bill is substantially similar to the version passed by the Assembly. FISCAL EFFECT : According to the Senate Appropriations Committee, pursuant to Senate Rule 28.8, negligible state costs. COMMENTS : 1)Purpose of this bill. In an effort to help industry representatives better identify stolen metal, this bill would require a junk dealer or recycler to register to receive metal theft alert notifications from the online theft alert system, ScrapTheftAlert.com, which is maintained by ISRI. This bill also requires a junk dealer or recycler seeking a weighmasters license to verify during the application process that they have requested to receive the theft alert notifications. In addition, this bill encourages (but does not require) local law enforcement representatives to report the theft of certain AB 2312 Page 3 metal commodities to the theft alert system in order to ensure individuals receive timely theft alert notifications. This bill is sponsored by the author. 2)Author's statement. According to the author, "Metal theft is a growing problem in California and the costs of repairing damage done by thieves is a huge burden on government agencies, non-profits, businesses and property owners alike. Thieves are becoming more sophisticated and often operate inter-cities networks were metals are stolen from one location only to be sold as scrap to recycling centers many miles away. Enhancing regional cooperation against metal theft is key to any efforts to stem the growth of this type of crime. "Since many scrap metal recycling centers are often not informed about recently stolen items, they unwittingly help provide a market for the thieves to sell stolen property. Providing this market for stolen goods provides easy cash to thieves and a strong incentive for future thefts. "This bill will require recycling centers to subscribe to ISRI's metal theft alert system (at no cost to the recycling center) so they will receive theft alerts occurring within 100 miles of their location. This will allow them to be cognizant of stolen items that could be brought [to] their recycling center and will provide a strong deterrent to thieves operating in regional networks because every recycling center will be aware of recently stolen items." 3)The ongoing problem of metal theft. According to the author, metal theft continues to be a serious problem in California. In addition to the loss of property, repairing the damage from metal theft can also be costly. For example, the Woodland Daily Democrat reported on November 9, 2013, that someone stole $10 worth of copper from a construction site, but repairing the damage from the theft would cost $1,000. In a separate story reported by Fresno's KFSN television news on November 8, 2013, a registered California historic landmark memorial was stolen from the Pinedale Remembrance Plaza. The brass from the stolen memorial was worth approximately $50 at a recycling facility, but it will cost an estimated $5000 to replace. The Desert Sun reported on February 14, 2014, that less than two months into 2014, the Coachella Valley Water District is on its way to losing more equipment to metal AB 2312 Page 4 thieves this year than it did in 2013. 4)The growing nonferrous metal recycling industry. According to ISRI, nonferrous (not iron-based) metals are among the few materials that do not degrade or lose their chemical or physical properties in the recycling process. Because of this, these metals have the capacity to be recycled a nearly infinite number of times. Nonferrous materials include copper, copper alloys, stainless steel, or aluminum (but not beverage containers, as defined in the California Public Resources Code). In the United States, the value of the nonferrous scrap industry approached $50 billion in 2012. In terms of volume, nonferrous scrap materials make up a small percentage of the total quantity of material recycled in the United States, but by value they account for more than half of the total earnings of the scrap recycling industry. In 2012, the United States exported nearly $14 billion worth of nonferrous scrap to more than 90 countries. 5)Theft alert notifications. ScrapTheftAlert.com is a free tool for junk dealers and recyclers, law enforcement, and other local agencies to allow an individual to alert others in the scrap industry of significant thefts of materials within the United States and Canada. ScrapTheftAlert.com currently has 513 active users in California and 240 active alerts. Nationwide, the Web site has over 16,000 total users and has helped recover over one million dollars of stolen material. ScrapTheftAlert.com is maintained by ISRI and there is no separate cost for users because ISRI members pay for the operation of the Web site. This bill requires junk dealers and recyclers to request to receive theft alert email notifications, and junk dealers and recyclers seeking a weighmasters license must provide a statement in their application that they have registered to receive email alerts from the theft alert system as a condition for licensure. This bill also provides that ISRI or its successor will not charge a fee for the use of the theft system and is not permitted to sell subscribers' information to third parties. AB 2312 Page 5 Analysis Prepared by : Elissa Silva / B., P. & C.P. / (916) 319-3301 FN: 0004514