Amended in Assembly May 3, 2016

Amended in Assembly March 14, 2016

California Legislature—2015–16 Regular Session

Assembly Bill No. 2059

Introduced by Assembly Member Eduardo Garcia

February 17, 2016

An act to begin delete amend end delete begin insert amend, repeal, and add end insert Section 21608.5 of the Business and Professions Code, relating to business.

LEGISLATIVE COUNSEL’S DIGEST

AB 2059, as amended, 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 begin delete would end delete begin insert would, until January 1, 2020, end insert 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 cost of 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 recoverable cost of loss to the verifiable owner of the scrap metal to be specified damages. begin insert The bill would also require the California Research Bureau to provide a report to the Legislature on or before June 1, 2019, on the impact of these provisions on efforts to reduce and eliminate metal theft. end insert

Vote: majority. Appropriation: no. Fiscal committee:  begin delete no end delete begin insert yes end insert . 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 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 cost of 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 recoverable cost of loss to the
verifiable owner of the stolen scrap metal shall be the damages as
prescribed by Sections 3333, 3336, and 3336.5 of the Civil Code.
The reimbursement for the value of stolen scrap metal hereunder
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.

begin insert

(h) (1) On or before June 1, 2019, the California Research
Bureau shall provide a report to the Legislature on the impact of
paragraph (2) of subdivision (b) on efforts to reduce and eliminate
metal theft.

end insert begin insert

(2) The report to be submitted pursuant to paragraph (1) shall
be submitted in compliance with Section 9795 of the Government
Code.

end insert begin insert

(i) This section shall remain in effect only until January 1, 2020,
and as of that date is repealed.

end insert

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 21608.5 is added to the end insert begin insert Business and
Professions Code end insert begin insert , to read: end insert

begin insert

begin insert 21608.5. end insert   

(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
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.

(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.

(h) This section shall become operative on January 1, 2020.

end insert