BILL NUMBER: AB 2059 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Member Eduardo Garcia
FEBRUARY 17, 2016
An act to amend Section 21608.5 of the Business and Professions
Code, relating to business.
LEGISLATIVE COUNSEL'S DIGEST
AB 2059, as introduced, Eduardo Garcia. Junk dealers and
recyclers: nonferrous materials.
Existing law requires junk dealers and recyclers, as defined, to
maintain written records of all sales and purchases made in the
course of their business, and makes a violation of the recordkeeping
requirements a misdemeanor. Existing law prohibits a junk dealer or
recycler from providing payment for nonferrous material, as defined,
unless the payment is made by cash or check, the check is mailed or
the cash or check is provided no earlier than 3 days after the date
of sale, and the dealer or recycler obtains a photograph or video of
the seller and certain other identifying information, as specified,
which is to be retained by the dealer or recycler, as part of the
written record of purchases, for a specified period of time. Existing
law exempts from the payment by cash or check requirement those
sellers of junk or recycling materials who conduct 5 or more separate
transactions per month with the junk dealer or recycler, as
specified.
This bill would exempt from the payment by cash or check
requirement those sellers of junk or recycling materials who carry a
surety bond of at least $100,000, covering the business entity at
large, including all locations, which exclusively covers the costs of
any loss to the verifiable owner of stolen scrap metal purchased by
the junk dealer or recycler and the cost to local law enforcement of
investigating the theft. The bill would define the reimbursable value
of the scrap metal to be its replacement value.
Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 21608.5 of the Business and Professions Code is
amended to read:
21608.5. (a) A junk dealer or recycler in this state shall not
provide payment for nonferrous material unless, in addition to
meeting the written record requirements of Sections 21605 and 21606,
all of the following requirements are met:
(1) The payment for the material is made by cash or check. The
check may be mailed to the seller at the address provided pursuant to
paragraph (3) or the cash or check may be collected by the seller
from the junk dealer or recycler on or after the third business day
after the date of sale.
(2) At the time of sale, the junk dealer or recycler obtains a
clear photograph or video of the seller.
(3) (A) Except as provided in subparagraph (B), the junk dealer or
recycler obtains a copy of the valid driver's license of the seller
containing a photograph and an address of the seller, a copy of a
state or federal government-issued identification card containing a
photograph and an address of the seller, a passport from any other
country in addition to another item of identification bearing an
address of the seller, or a Matricula Consular in addition to another
item of identification bearing an address of the seller.
(B) If the seller prefers to have the check for the material
mailed to an alternative address, other than a post office box, the
junk dealer or recycler shall obtain a copy of a driver's license or
identification card described in subparagraph (A), and a gas or
electric utility bill addressed to the seller at that alternative
address with a payment due date no more than two months prior to the
date of sale. For purposes of this paragraph, "alternative address"
means an address that is different from the address appearing on the
seller's driver's license or identification card.
(4) The junk dealer or recycler obtains a clear photograph or
video of the nonferrous material being purchased.
(5) The junk dealer or recycler shall preserve the information
obtained pursuant to this subdivision for a period of two years after
the date of sale.
(6) (A) The junk dealer or recycler obtains a thumbprint of the
seller, as prescribed by the Department of Justice. The junk dealer
or recycler shall keep this thumbprint with the information obtained
under this subdivision and shall preserve the thumbprint in either
hardcopy or electronic format for a period of two years after the
date of sale.
(B) Inspection or seizure of the thumbprint shall only be
performed by a peace officer acting within the scope of his or her
authority in response to a criminal search warrant signed by a
magistrate and served on the junk dealer or recycler by the peace
officer. Probable cause for the issuance of that warrant must be
based upon a theft specifically involving the transaction for which
the thumbprint was given.
(b) Paragraph (1) of subdivision (a) shall not apply if,
during if any of the following conditions are met:
(1) During any three-month period
commencing on or after the effective date of this section, the junk
dealer or recycler completes five or more separate transactions per
month, on five or more separate days per month, with the seller and,
in order for paragraph (1) of subdivision (a) to continue to be
inapplicable, the seller must continue to complete five or more
separate transactions per month with the junk dealer or recycler.
(2) The junk dealer or recycler carries a surety bond in the
minimum amount of one hundred thousand dollars ($100,000), covering
the business entity at large, including all locations, which shall be
maintained exclusively to cover the costs of any loss to the
verifiable owner of stolen scrap metal proved to be purchased by the
junk dealer or recycler, as well as to cover the cost to local law
enforcement relating to its investigation of the alleged theft of the
specific material in question. The reimbursable value of the scrap
metal shall be the replacement value of the stolen property. The
reimbursement for the value of stolen scrap metal pursuant to this
paragraph shall in no way be treated under law as an admission of
culpability by the junk dealer or recycler to any criminal activity
involved in the alleged theft of the scrap metal.
(c) This section shall not apply if, on the date of sale, the junk
dealer or recycler has on file or receives all of the following
information:
(1) The name, physical business address, and business telephone
number of the seller's business.
(2) The business license number or tax identification number of
the seller's business.
(3) A copy of the valid driver's license of the person delivering
the nonferrous material on behalf of the seller to the junk dealer or
the recycler.
(d) (1) This section shall not apply to the purchase of nonferrous
material having a value of not more than twenty dollars ($20) in a
single transaction, when the majority of the transaction is for the
redemption of beverage containers under the California Beverage
Container Recycling and Litter Reduction Act, as set forth in
Division 12.1 (commencing with Section 14500) of the Public Resources
Code.
(2) Materials made of copper or copper alloys shall not be
purchased under this subdivision.
(e) This section shall not apply to coin dealers or to automobile
dismantlers, as defined in Section 220 of the Vehicle Code.
(f) For the purposes of this section, "nonferrous material" means
copper, copper alloys, stainless steel, or aluminum, but does not
include beverage containers, as defined in Section 14505 of the
Public Resources Code, that are subject to a redemption payment
pursuant to Section 14560 of the Public Resources Code.
(g) This section is intended to occupy the entire field of law
related to junk dealer or recycler transactions involving nonferrous
material. However, a city or county ordinance, or a city and county
ordinance, relating to the subject matter of this section is not in
conflict with this section if the ordinance is passed by a two-thirds
vote and it can be demonstrated by clear and convincing evidence
that the ordinance is both necessary and addresses a unique problem
within and specific to the jurisdiction of the ordinance that cannot
effectively be addressed under this section.