Amended in Senate April 15, 2013

Senate BillNo. 757


Introduced by Senator Berryhill

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(Coauthor: Senator Calderon)

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February 22, 2013


An act to amendbegin delete Section 21603end deletebegin insert Sections 21608.6 and 21626.5end insert of the Business and Professions Code, relating to business.

LEGISLATIVE COUNSEL’S DIGEST

SB 757, as amended, Berryhill. Junk dealers and recyclers.

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Existing law authorizes junk dealers and recyclers, as defined, to sell and purchase junk, which includes secondhand and used furniture, pallets, or other personal property, as specified. Existing law requires junk dealers and recyclers to obtain valid identification, as specified, from a seller before providing payment for newspaper, as defined, or for California Redemption Value (CRV) containers. Existing law requires junk dealers and recyclers to maintain written records of specified information and makes a violation of the recordkeeping requirements a misdemeanor.

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This bill would permit a seller to use a passport from any country or a Matricula Consular issued by Mexico, along with another form of identification bearing an address, or an identification card issued by the United States, as identification for purposes of these provisions.

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Existing law regulates secondhand dealers and coin dealers, as defined, and makes a violation of those provisions a misdemeanor.

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This bill would specify that the provisions governing secondhand dealers and coin dealers do not apply to junk dealers, as defined, and would declare that provision declaratory of existing law.

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Existing law regulates secondhand dealers and coin dealers, as defined, and makes a violation of those provisions a misdemeanor. Existing law regulates junk dealers and recyclers, as defined, and makes a violation of those provisions a misdemeanor.

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This bill would provide that the provisions governing junk dealers and recyclers do not apply to secondhand dealers or coin dealers, as defined.

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Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1begin insert

begin insertSECTION 1.end insert  

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begin insertSection 21608.6 of the end insertbegin insertBusiness and Professions
2Code
end insert
begin insert is amended to read:end insert

3

21608.6.  

(a) A junk dealer or recycler, as defined in
4subdivisionbegin delete (f)end deletebegin insert (g)end insert, in this state shall not provide payment for
5newspaper, as defined in Section 538c of the Penal Code, or for
6California Redemption Value (CRV) containers unless, in addition
7to meeting the written record requirements of Sections 21605 and
821606, all of the following requirements are met:

9(1) The payment for the newspaper or for the CRV containers
10is made by check or by other electronic transfer from the junk
11dealer or recycler to the seller. A recycler, if authorized by
12regulations adopted pursuant to Division 12.1 (commencing with
13Section 14500) of the Public Resources Code, may provide
14payment for CRV containers through a voucher that is immediately
15redeemable for cash.

16(2) The junk dealer or recycler obtains and records a valid,
17documented address for the seller by obtaining a copy of the valid
18driver’s license of the seller containing a photograph and an address
19of the seller, or a copy of a state or federal government-issued
20identification card containing a photograph and an address of the
21seller,begin insert a passport from any other country in addition to another
22item of identification bearing an address of the seller, or a
23Matricula Consular in addition to another item of identification
24bearing an address of the seller,end insert
or other valid identification
25containing the seller’s address, such as utility bills in the seller’s
26name. The junk dealer or recycler shall preserve the photograph
27and the address or the copies obtained pursuant to this paragraph
28for a period of two years after the date of sale.

P3    1(b) The requirements of paragraph (1) of subdivision (a) shall
2not apply if, during any three-month period commencing on or
3after the effective date of this section, the junk dealer or recycler
4completes five or more separate transactions per month with the
5seller, and in order for the requirements of paragraph (1) of
6subdivision (a) to continue to be inapplicable, the seller must
7continue to complete five or more separate transactions per month
8with the junk dealer or recycler.

9(c) This section shall not apply if, on the date of sale, the junk
10dealer or recycler has on file or receives all of the following
11information:

12(1) The name, physical business address, and business telephone
13number of the seller’s business.

14(2) The business license number or tax identification number
15of the seller’s business.

16(3) A copy of the valid driver’s license or a copy of a state or
17federal government-issued identification card containing a
18photograph and an address of the person delivering newspaper or
19CRV containers on behalf of the seller to the junk dealer or the
20recycler.

21(d) Any unauthorized disclosure of personal identification
22information collected from a seller by a junk dealer or recycler is
23prohibited, and any violation of this prohibition is subject to a civil
24fine not to exceed five thousand dollars ($5,000).

25(e) This section shall not apply to the payment for newspaper
26having a value of fifty dollars ($50) or less in a single transaction
27or CRV containers having a value of one hundred dollars ($100)
28or less in a single transaction.

29(f) This section shall only apply in jurisdictions that offer
30curbside pickup of materials that include newspaper and CRV
31containers.

32(g) Notwithstanding Section 21605, for purposes of this section,
33“recycler” means any processor, recycling center, or noncertified
34recycler, as those terms are defined in Chapter 2 (commencing
35with Section 14502) of Division 12.1 of the Public Resources
36Code.

37begin insert

begin insertSEC. 2.end insert  

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begin insertSection 21626.5 of the end insertbegin insertBusiness and Professions Codeend insert
38begin insert is amended to read:end insert

39

21626.5.  

“Secondhand dealer,” as used in this article, does not
40includebegin delete eitherend deletebegin insert anyend insert of the following:

P4    1(a) Any person who performs the services of an auctioneer for
2a fee or salary.

3(b) Any person whose business is limited to the reconditioning
4and selling of major household appliances, provided all the
5following conditions are met:

6(1) The person does not trade, take in pawn, accept for drop-off,
7accept as a trade-in, accept for sale on consignment, accept for
8auction, auction, or buy, except in bulk, the appliances.

9(2) The person does not perform repair services for owners of
10appliances unless the appliance was purchased from the person.

11(3) The person has never been convicted of the crime of
12attempting to receive or receiving stolen property or any other
13theft-related crime.

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14(c) A junk dealer, as defined in Section 21601.

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15begin insert

begin insertSEC. 3.end insert  

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begin insert

The amendment of Section 21626.5 of the Business
16and Professions Code made by this act does not constitute a change
17in, but is declaratory of, existing law.

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18

SECTION 1.  

Section 21603 of the Business and Professions
19Code
is amended to read:

20

21603.  

This article shall not apply to any of the following:

21(a) Secondhand furniture merchants.

22(b) Pawnbrokers.

23(c) Secondhand car dealers or merchants in connection with
24automobile and motor vehicle sales agencies but not carried on
25and conducted in conjunction with a junk yard.

26(d) Persons engaged in the business of selling new automobile
27tires or batteries or other equipment taking in part payment used
28articles of the same kind and thereafter selling or disposing of the
29same.

30(e) Secondhand oil well supply and equipment dealers not
31conducting or carrying on their business in connection with a junk
32yard.

33(f) Secondhand clothing merchants and ragpickers.

34(g) Secondhand dealers or coin dealers, as defined in Section
3521626.

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