BILL ANALYSIS Ó
AB 1583
Page 1
Date of Hearing: April 17, 2012
ASSEMBLY COMMITTEE ON BUSINESS, PROFESSIONS AND CONSUMER
PROTECTION
Mary Hayashi, Chair
AB 1583 (Roger Hernandez) - As Amended: April 9, 2012
SUBJECT : Bulk merchandise pallets.
SUMMARY : Prohibit junk dealers and recyclers from purchasing
or receiving bulk merchandise pallets, as defined, marked with
an indicia of ownership, as defined, from anyone except the
indicated owner, unless specified information is provided.
Specifically, this bill :
1)Prohibits junk dealers or recyclers from purchasing or
receiving bulk merchandise pallets marked with an indicia of
ownership from any person or entity other than the indicated
owner.
2)Authorizes a junk dealer or recycler to purchase or receive
bulk merchandise pallets if the seller is not the indicated
owner, only if the seller or transferor provides a receipt
verifying his or her current ownership or a document
indicating that he or she is authorized by the owner to sell
or transfer the merchandise pallets, as specified, and
requires the junk dealer or recycler to maintain copies of
these documents shall as part of the written record of the
transaction.
3)Requires a junk dealer or recycler to make payment for a
single transaction involving five or more bulk merchandise
pallets marked with indicia of ownership by mailed check or by
cash or check collected by the seller after three business
days, as specified.
4)Makes the obliteration of the indicia of ownership on a
merchandise pallet punishable under provisions of law guarding
against grand and petty theft, as specified.
5)Requires a person or entity purchasing or transporting plastic
bulk merchandise containers who is in the business of
recycling, shredding, or destruction of plastic bulk
merchandise containers, or is in the business of transporting
plastic bulk merchandise containers for those purposes, to
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obtain a proof of ownership record or bill of lading and other
identifying information from the person selling or delivering
5 or more containers, and to retain this information, as
specified.
6)Defines the following terms:
a) "Indicia of ownership" to mean words, symbols, or
registered trademarks printed, stamped, etched, attached,
or otherwise displayed on the exterior surface of the
merchandise pallet that reasonably identifies the owner;
b) "Bulk merchandise pallets" to mean plastic or wood
containers, carriers, or holders used by a manufacturer or
distributor for bulk transport of merchandise to wholesale
or retail outlets.
7)Makes technical and conforming changes.
EXISTING LAW :
1)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.
2)Requires junk dealers and recyclers to maintain written
records of specified information, and makes a violation of the
recordkeeping requirements a misdemeanor.
3)Defines a merchandise pallet as a wooden or plastic carrier or
container of specified size, used by a manufacturer or
distributor to transport merchandise to retail outlets, which
has a notice permanently affixed to it identifying the owner
of the pallet and providing other specified information.
4)Prohibits and makes it a crime for an unauthorized person, as
defined, to possess a merchandise pallet or for a person other
than its owner to obliterate the identification notice on a
pallet.
5)Requires any person or entity purchasing plastic bulk
merchandise containers who is in the business of recycling,
shredding, or destruction of plastic bulk merchandise
containers, as defined, to obtain a proof of ownership record
and other identifying information from a person selling 5 or
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more containers, and to retain the required record for a
specified time. A violation of these provisions is a
misdemeanor.
FISCAL EFFECT : Unknown
COMMENTS :
Purpose of this bill . According to the author, "Theft of
merchandise pallets is becoming a serious problem for food and
beverage manufacturers and distributors. Higher scrap values
paid recyclers of the resins typically used in pallets is a
major factor in these thefts.
"AB 1583 will ensure businesses in California stop losing their
property, it applies to all merchandise pallets, not only to
plastic ones used for milk, eggs, and beverages; making sure
people do not make a profit out of stolen wood and plastic
pallets."
Background . This bill prohibits junk dealers and recyclers from
purchasing or receiving bulk merchandise pallets, as defined,
marked with an indicia of ownership, as defined, from anyone
except the indicated owner, unless the seller or transporter
provides proof of ownership.
Support . The sponsor of this bill, MillerCoors writes in
support, "Pallet theft has become a serious and growing problem
for manufacturers and distributors of food and beverage
products. As the scrap value of the plastic resins used in bulk
merchandise pallets has soared on higher demand for recycled
products, thefts of pallets have increased exponentially in a
manner not dissimilar from the wave of thefts of copper wire and
other metals. According to Shelly Jones, a lead detective for
the office of the Los Angeles County Sheriff, pallet thefts in
the San Gabriel Valley alone cost local business nearly $10
million annually, MillerCoors typically pays approximately $30
per pallet and estimates its nationwide losses from pallet theft
to be in the tens of millions of dollars per year. While the
vast majority of junk dealers and recyclers are law-abiding, the
evidence from several recent law enforcement actions suggests
that some junk dealers and recyclers are still not doing enough
to assure that sellers of scrap materials verify their identity
and show proof of ownership or lawful possession.
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"?we believe Ýthis bill] will give law enforcement significant
additional tools to combat pallet thefts and help deter pallet
theft by cutting off the ability of thieves to easily turn
stolen pallets into immediate cash. In this regard, we note
that legislation passed in 2007 ÝSB 520 (Governmental
Organization Committee), Chapter 349, Statutes of 2007] to
impose similar requirement son junk dealers and recyclers
purchasing aluminum alloy and stainless steel beer kegs has been
effective in reducing the incidence of these thefts.
Opposition . The California Chapters of the Institute of Scrap
Recycling Industries (ISRI) writes in opposition, "ISRI is
sympathetic to the concerns of the dairy, bakery, and soft drink
industries on this subject. Prior to California passing the
current law relating to the purchasing of plastic merchandise
containers, ISRI created a 'Do No Buy List' for its members
which contained plastic bulk merchandise containers as a
forbidden item. We understand that these industries realize
significant financial loss each year on these items. However,
ISRI members have been working with them to lessen their loss.
Furthermore, we must point out that supermarkets and other
locations where the bread trays, milk crates, and soda trays are
left outside and unsecure are feeding right into the hands of
thieves. ISRI believes that if the diary, bakery, and soft
drink industries are seriously concerned about the thefts of the
merchandise containers, those industries would have a
contractual agreement with the stores in which they sell their
products to make sure the merchandise containers are kept in a
secure location.
"Frankly, the problem is not the sufficiency of the current law;
it is the lack of judicial enforcement of the current law.
Simply stated, few local police agencies have the desire to
redirect their scarce resources to enforce the merchandise
container laws. This is not an issue of substantive law. This
is an issue where dairy, bakery, and soft drink industries need
to make sure the supermarkets in which their products are sold
keep the merchandise containers in a secure location."
Previous legislation . SB 520 (Governmental Organization
Committee), Chapter 349, Statutes of 2007, prohibits junk
dealers or recyclers from purchasing or receiving aluminum beer
kegs with marks indicating ownership, unless the kegs are being
provided directly by the owner.
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REGISTERED SUPPORT / OPPOSITION :
Support
MillerCoors (sponsor)
California Grocers Association
California Nevada Soft Drink Association
California Police Chiefs Association
Downey Distribution/Manufacturing Center of the Coca-Cola
Bottling Company of Southern California
Coca-Cola Refreshments
Intelligent Global Pooling Systems
Los Angeles County District Attorney's Office
Opposition
California Chapters of the Institute of Scrap Recycling
Industries
Analysis Prepared by : Rebecca May / B.,P. & C.P. / (916)
319-3301