BILL ANALYSIS Ó AB 1019 Page 1 Date of Hearing: April 22, 2015 ASSEMBLY COMMITTEE ON APPROPRIATIONS Jimmy Gomez, Chair AB 1019 (Eduardo Garcia) - As Introduced February 26, 2015 ----------------------------------------------------------------- |Policy |Public Safety |Vote:|5 - 2 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: NoReimbursable: No SUMMARY: This bill creates the Metal Theft Task Force (MTTF) Program to provide funding for local law enforcement agencies, as specified, to combat metal theft and related recycling crimes. Specifically, this bill: AB 1019 Page 2 1)Requires the Department of Justice (DOJ) to establish a Metal Theft Task Force Program designed to enhance the capacity of the department to serve as the lead law enforcement agency in the investigation and prosecution of illegal recycling operations, and metal theft and related recycling crimes, and would authorize the department 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 program. 2)Establishes the Metal Theft Task Force Fund, to be administered by the DOJ, and would continuously appropriate all moneys in that fund to the department for the purposes of the program, thereby making an appropriation. Specifies that the program would not be implemented until the DOJ determines that sufficient moneys have been deposited in the fund to implement the program. 3)Requires the DOJ to submit a comprehensive report to the Legislature, no later than December 31, 2018, on the status and progress of the program, since the year 2016, in deterring, investigating, and prosecuting illegal recycling operations, and metal theft and related recycling crimes. 4)Requires a weighmaster, who is a junk dealer or recycler, as defined, to pay a specified additional license fee of $1,000 or $1,500, to be deposited into the Metal Theft Task Force Fund and to be expended by the Department of Justice for the purpose of administering the Metal Theft Task Force Program. The additional revenue is limited to $2 million per year. FISCAL EFFECT: Significant ongoing MTTF Fund (special fund) costs to the DOJ of up to $2 million per year. The administrative costs alone will be $350,000 to $400,000, the remainder would be used to provide grants to local law enforcement agencies to reduce metal AB 1019 Page 3 theft-related crimes. The bill specifies the program is contingent upon sufficient funding from the MTTF Fund, which pursuant to this bill would be primarily funded by an additional fee of $1,000 or $1,500 on the weighmaster, but limits the aggregate revenue to no more than $2 million per year. The bill also authorizes the deposit of federal, industry and private funds into the MTTF Fund. COMMENTS: 1)According to the author, "This bill will establish The Metal Theft Taskforce within the California Department of Justice (DOJ). The Taskforce will distribute grants to regional and local law enforcement agencies for use in combating metal theft crimes. Grant will also be available for prosecution efforts. Funding for these grants would come from license fees. "The legislation also directs DOJ to award grants based on a number of criteria to determine where the most pressing needs for additional funding are." 2)Metal Theft in California: Metal theft has been well documented throughout California. In 2007, the New York Times reported: "This is the No. 1 crime affecting farmers and ranchers right now," said Bill Yoshimoto, an assistant district attorney in the agriculturally rich Tulare County in the Central Valley. "Virtually every farmer in the Central Valley has been hit," Mr. Yoshimoto said. But some have been hit far beyond the value of the metal. For the farmer to replace the pump is anywhere between $3,000 to $10,000, and then there is downtime, and loss to crops. AB 1019 Page 4 3)Prior Attempts at Establishing a Metal Theft Taskforce: a) SB 485 (Calderon), Chapter 518, Statutes of 2013, required junk dealers to provide additional information to CDFA when applying for or renewing a weighmaster's license in order to reduce the number of non-compliant dealers, and hopefully deter fraudulent transactions and decrease the sale of stolen metal property. This bill also created new license fees for a weighmaster who is a recycler or junk dealer in order to operate at specified locations. b) Also in 2013, the Legislature passed AB 909 (Gray) which was substantially similar to this bill, with the major differences being that AB 909 had the Department of Justice establish and oversee the MTTF Program and did not provide a funding source for the MTTF. The Governor vetoed AB 909 with the following rationale in his veto message: "[AB 909] creates a new enforcement effort without identifying a funding source. Today I signed SB 485, which does provide a funding source for greater enforcement within the existing infrastructure. More can certainly be done, but let's build on stable funding base." c) Additionally, in 2014, AB 2313 (Nestande), which was similar to this bill when it passed by this committee, it was later amended to be identical to this bill, but failed passage on the Senate floor. Analysis Prepared by:Pedro R. Reyes / APPR. / (916) 319-2081 AB 1019 Page 5