BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 2312
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          CONCURRENCE IN SENATE AMENDMENTS
          AB 2312 (Nestande and Olsen)
          As Amended  August 5, 2014
          Majority vote
           
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          |ASSEMBLY:  |73-0 |(May 8, 2014)   |SENATE: |33-1 |(August 11,    |
          |           |     |                |        |     |2014)          |
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           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.  
             








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          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  








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            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  








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            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.  
           









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


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