BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1019


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          Date of Hearing:   April 22, 2015


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                                 Jimmy Gomez, Chair


          AB  
          1019 (Eduardo Garcia) - As Introduced February 26, 2015


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          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:   








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          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  








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          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.








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          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














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