BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 2313|
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THIRD READING
Bill No: AB 2313
Author: Nestande (R) and Olsen (R), et al.
Amended: 8/4/14 in Senate
Vote: 21
SENATE PUBLIC SAFETY COMMITTEE : 7-0, 6/24/14
AYES: Hancock, Anderson, De León, Knight, Liu, Mitchell,
Steinberg
SENATE APPROPRIATIONS COMMITTEE : 5-0, 8/14/14
AYES: De León, Hill, Lara, Padilla, Steinberg
NO VOTE RECORDED: Walters, Gaines
ASSEMBLY FLOOR : 66-3, 5/27/14 - See last page for vote
SUBJECT : Metal theft and related recycling crimes
SOURCE : California Farm Bureau
DIGEST : This bill creates the Metal Theft Task Force (MTTF)
Program, administered by the Department of Justice (DOJ) to
provide grants to local law enforcement agencies to investigate
and prosecute metal theft and related recycling crimes.
ANALYSIS :
Existing law:
1.Provides that any person who feloniously steals, takes, or
carries away the personal property of another, or who
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fraudulently appropriates property that has been entrusted to
him/her, is guilty of theft.
2.Provides that a person who, being a dealer in or collector of
junk, metals, or secondhand materials, buys or receives any
wire, cable, copper, lead, solder, mercury, iron, or brass
that he/she knows or reasonably should know is ordinarily used
by, or ordinarily belongs to, a railroad or other
transportation, telephone, telegraph, gas, water, or electric
light company or county, city, or city and county without
using due diligence to ascertain that the person selling or
delivering the same has a legal right to do so, is guilty of
criminally receiving that property.
3.Establishes the DOJ, which is headed by the Attorney General
and tasked with, among other things, representing California
in criminal cases.
4.Requires, until January 1, 2019, a weighmaster who is a junk
dealer or recycler to pay an additional annual fee of $500 to
the Department of Food and Agriculture (DFA) for each location
at which the weighmaster operates, as specified, for the
administration and enforcement of specified provisions.
This bill:
1.Until January 1, 2020, requires the DOJ to establish a MTTF
Program designed to enhance the capacity of the DOJ to serve
as the lead law enforcement agency in the investigation and
prosecution of illegal recycling operations, and metal theft
and related recycling crimes.
2.Authorizes the DOJ to enter into partnerships, as defined,
with local law enforcement agencies, regional task forces, and
district attorneys for the purpose of achieving the goals of
the MTTF Program.
3.Authorizes the DOJ to enter into an agreement with any state
agency for the purpose of administering the MTTF Program.
4.Establishes the MTTF Fund, to be administered by the DOJ, and
continuously appropriate all monies in that fund to the DOJ
for the purposes of the MTTF Program.
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5.Requires the DOJ to submit a comprehensive report to the
Legislature, no later than December 31, 2018, on the status
and progress, since the year 2016, of the MTTF Program in
deterring, investigating, and prosecuting illegal recycling
operations, and metal theft and related recycling crimes.
6.Specifies that the MTTF Program will not be implemented until
the DOJ determines that sufficient monies have been deposited
in the MTTF Fund to implement the MTTF Program.
7.Requires a weighmaster who is a junk dealer or recycler to pay
an additional license fee, determined by the DOJ. Proceeds
from this fee cannot exceed $2 million annually.
Background
Metal prices have risen sharply on the world markets over recent
years. For instance, a commonly-cited index of metal prices has
risen about 42% since 2005. Consequently, thefts of metals such
as copper, bronze, brass, and aluminum have risen sharply in
recent years, for the purposes of sales to metal recyclers.
Examples of metal-theft include the stripping of copper wires
and aluminum pipes from agricultural pumps and equipment, copper
wire stripped from utility power lines, the removal of wire and
pipe from construction sites.
The damage caused by these thefts is often several times the
value of the metal stolen (including, for instance, the cost of
potential crop damage caused by lack of irrigation while the
pump was not usable), leaving the victims with hefty costs. The
U.S. Department of Energy has estimated that metal theft costs
U.S. businesses around $1 billion a year.
Prior legislation . SB 485 (Calderon, Chapter 518, Statutes of
2013) requires a junk dealer or recycler to submit specified
information to DFA when applying for a weighmaster's license,
requires DFA to investigate the application and revoke the
license if information submitted in the application or renewal
is materially inaccurate, and increases the fees junk dealers or
recyclers pay for each fixed location.
FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes
Local: No
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According to the Senate Appropriations Committee:
This bill requires a weighmaster who is a junk dealer or
recycler to pay an additional license fee, determined by the
DOJ. Proceeds from this fee cannot exceed $2 million
annually.
DOJ indicates that its costs to implement this bill will be
$2.1 million in 2015-16, and $1.6 million in both 2016-17 and
2017-18. These estimates are based on a task force start date
of July 1, 2015, anticipating that, per this bill's
provisions, there should be sufficient funds available.
DFA will incur costs of $133,000 in 2014-15 and $201,000
ongoing thereafter.
Potential future cost-savings statewide to the courts, state
prison/county jail systems, and law enforcement, as well as to
businesses in the form of reduced economic loss, to the extent
the operation of the MTTF Program results in savings realized
through crime prevention, crime suppression, and prosecutions
resulting from the MTTF program.
SUPPORT : (Verified 8/15/14)
California Farm Bureau (source)
Allied Riverside County Chiefs of Police and Sheriff
Blythe Police Department, Chief of Police Steve Smith
California District Attorneys Association
California Municipal Utilities Association
California Park and Recreation Society
California Police Chiefs Association
California State Sheriffs' Association
Cities of Beaumont and San Jacinto
Coachella Valley Association of Governments
Coachella Valley Economic Partnership
Coachella Valley Water District
Contra Costa District Attorney's Office
Desert Fresh, Inc.
Desert Sands Unified School District
Desert Valley Builders Association
Eastern Municipal Water District
General Patton Memorial Museum
Hemet/San Jacinto Valley Chamber of Commerce
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Indio Chamber of Commerce
Indio Police Department
Metropolitan Water District of Southern California
Riverside County
San Bernardino County Sheriff's Office
San Francisco District Attorney's Office
OPPOSITION : (Verified 8/15/14)
Aaron Metals Company
AB&I Foundry
Action Sales & Metal Company
Advanced Towing and Recycling, Inc.
Alhambra Foundry
All New Stamping
Ambrit Industries, Inc.
American Casting Company
American Handforge
Appliance Distribution, Inc.
Association of California Recycling Industries
Atlas Pacific Corporation
Atwater Iron & Metal Inc.
Benda Tool/A&B Die Casting
Buccaneer Demolition
C & H Machine, Inc.
C & M Metals
C. Hammond Construction Company
California Casting, Inc.
California Die Casting
California Electronic Asset Recovery
California Labor Federation
California Manufacturers & Technology Association
California Metals Coalition
California Metal-X
California Taxpayers Association
Californians Against Waste
CASS Inc. CASTCO Corporation
CLA-VAL Company
Cleveland Wrecking Company
Consolidated Precision Products Corporation
CPP-City of Industry
Custom Gear & Machine
D.C. Metals & Recycling
Dayton Rogers Manufacturing Company
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DBW Metals Recycling
Decco Castings, Inc.
Delano Recycling Center, LLC.
Dimensional Graphics
Diversified Tool & Die
DSV, Inc.
East County Economic Development Council
Eckert Machining, Inc.
Edelbrock Foundry
Ekco Metals
Fenico Precision Castings, Inc.
FMC Metals
Gamberg Metals
Gasser/Olds Foundry
General Foundry Service Corporation
Gist Silbersmiths
Globe Iron Foundry, Inc.
Hammond Construction
Helfrich Tool & Die Corporation
Heraeus Precious Metals North America LLC.
Hyatt Die Cast
Ideal Metal & Salvage Co.
Induction Technology Corporation
Inland metal Technologies
Institute of Scrap Recycling Industries - West Coast Chapter
International Union of Operating Engineers, Local 39
Interplex Nascal, Inc.
J & W Auto Wreckers
Jack Engle & Co.
Joseff-Hollywood
Ken Walt Die Casting Corporation
Kilroy's
Kramer Metals
Lodi Iron Works, Inc.
MIM Metals Inc.
Modern Pattern and Foundry Co.
Montague Company
Montclair Bronze, Inc.
Nagy Precision Manufacturing, Inc.
North Bay Steel Mill
Op-Syn Consulting
P. Kay Metal
Pacific Alloy Casting Co., Inc.
Pacific Corrugated Pipe Company
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Pacific Steel Casting Company
Perry Tool & Research, Inc.
Precision Metal Tooling, Inc.
R & G Metal Trading, LLC.
R.M. Machining, Inc.
Rangers Die Casting Company
Research Tool & Die Works
Risco Inc.
River City Waste Recyclers
SA Recycling
San Diego East County Chamber of Commerce
San Diego East County Economic Development Council
Schnitzer Steel Industries
Sea Shield Marine Products
Seaport Industrial Association
Sierra international Machinery, LLC
Sierra Recycling and Demolition Inc.
Simba Rercycling
SIMS Metal Management
SKS Die Casting & Machining, Inc.
Standard Metals Recycling
Strategic Materials Corporation
Techni-Cast Corporation
Technikon
ThermoFusion
Thorock Metals, Inc.
TIOCCO, Inc.
Tor Metals
Tri County Scrap Metals, LLC
Trimco Brass
Trio Metal Stamping
True-Tech Corporation
TST Inc., United Alloys and Metals
United States Pipe & Foundry Company, LLC
Vista Metals Corporation
Waterjet West Inc.
West Coast Protective League
West Contra Costa County Council of Industries
WestFab Manufacturing Inc.
ARGUMENTS IN SUPPORT : The author states:
There are numerous state laws that have been passed in recent
years which deal with metal theft. However, a lack of proper
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enforcement has hampered the ability of these laws to be
effective in combating metal theft crimes. In order to solve
this problem, law enforcement needs a dedicated funding source
for the prosecution and investigation of metal theft crimes.
AB 2313 seeks to address this issue by providing a stable
funding source for law enforcement so they can properly
enforce existing laws and better regulate California's
recycling industry. AB 2313 places a high priority on
shutting down illegal recycling centers which are the main
conduits for selling stolen metals and have diverted
legitimate business away from lawfully abiding recycling
centers. Metal theft crimes will not be dramatically reduced
until law enforcement is given the resources to effectively
shut down illegal recyclers.
ARGUMENTS IN OPPOSITION : The West Coast Chapter of the
Institute of Scrap Recycling Industries (ISRI) states:
. . . The enforcement authority proposed to be established
under AB 2313 is completely inappropriate and, frankly,
confusing at best. Matters regarding recycling policy and
enforcement are more appropriately placed within the
California Department of Resource and Recovery (CalRecycle), a
department within the California Environmental Protection
Agency. . . .
. . . ISRI opposes AB 2313 because it imposes a "tax" on
those customers of the recycling industry whose scrap trade
has nothing to do whatsoever with the problem being addressed
by the bill. In the 1997 Sinclair Paint Case, the California
Supreme Court established that a "fee" must be related to the
special burden it purports to address and alleviate. Otherwise
the fee is nothing more than a tax established for the purpose
of generating overall revenue for the state.
ASSEMBLY FLOOR : 66-3, 5/27/14
AYES: Achadjian, Alejo, Allen, Ammiano, Bigelow, Bloom,
Bocanegra, Bonilla, Bradford, Brown, Buchanan, Ian Calderon,
Campos, Chau, Chávez, Chesbro, Conway, Cooley, Dababneh,
Dahle, Daly, Dickinson, Eggman, Fong, Beth Gaines, Garcia,
Gatto, Gomez, Gonzalez, Gorell, Gray, Hagman, Hall, Harkey,
Roger Hernández, Holden, Jones-Sawyer, Levine, Linder, Logue,
Lowenthal, Maienschein, Medina, Melendez, Mullin, Muratsuchi,
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Nazarian, Nestande, Olsen, Pan, Perea, John A. Pérez, V.
Manuel Pérez, Rendon, Ridley-Thomas, Rodriguez, Salas, Stone,
Ting, Wagner, Weber, Wieckowski, Wilk, Williams, Yamada,
Atkins
NOES: Donnelly, Fox, Grove
NO VOTE RECORDED: Bonta, Frazier, Gordon, Jones, Mansoor,
Patterson, Quirk, Quirk-Silva, Skinner, Waldron, Vacancy
JG:k 8/16/14 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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