BILL ANALYSIS �
AB 1971
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Date of Hearing: May 8, 2012
Counsel: Sandy Uribe
ASSEMBLY COMMITTEE ON PUBLIC SAFETY
Tom Ammiano, Chair
AB 1971 (Buchanan) - As Amended: April 30, 2012
SUMMARY : Increases the maximum fine from $250 to $1,000 for
junk and second-hand dealers who knowingly purchase or receive
metals used in transportation or public utility services without
due diligence. Specifically, this bill :
1)States that the theft of nonferrous materials, such as copper,
copper alloys, stainless steel, and aluminum, but excluding
beverage containers, is a serious problem in many parts of
California.
2)States that the theft of these metals is having a significant
negative effect on many public agencies throughout California,
including public transit providers.
3)States that the cost of repairing or replacing the
infrastructure, component, or item from which the metal has
been removed can greatly exceed the value of the metal itself.
4)States that this criminal activity is costing public transit
systems millions of dollars annually, and can greatly affect
the efficiency of transit providers by causing service
disruptions and delays.
5)States that this criminal activity also poses a significant
threat to public safety since it may result in the loss of
power to elements of the transit system; damage the integrity
of the system itself; and pose a risk of death or bodily to
employees, transit riders, and thieves through possible
electrocution.
6)Increases the maximum fine for junk and second-hand dealers
who knowingly purchase metals used in transportation or public
utility services without due diligence from $250 to $1,000.
7)Clarifies that, for purposes of the vandalism statute,
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"damages" includes damage caused to public transit properties
and facilities, public park properties and facilities, and
public utilities and water properties and facilities.
EXISTING LAW :
1)Provides that every person who steals, takes, or carries away
copper materials, including, but not limited to, copper wire,
copper cable, copper tubing, and copper piping, where the
value exceeds $950 is guilty of grand theft. (Penal Code
Section 487j.)
2)Punishes the grand theft of copper by a fine not exceeding
$2,500, by imprisonment in the county jail up to one year, or
by both that fine and imprisonment; or by imprisonment under
realignment and a fine not exceeding $10,000. (Penal Code
Section 487j.)
3)Provides that every junk or second hand dealer, or his or her
agents and employees, who buys or receives any wire, cable,
copper, lead, solder, mercury, iron or brass which he or she
knows or reasonably should know is ordinarily used by or
ordinarily belongs to a railroad or other transportation,
telephone, telegraph, gas, water, or electrical light company
or political subdivision engaged in furnishing a public
utility service without using due diligence to ascertain that
the person selling or delivering the same has a legal right to
do so, is guilty of receiving stolen property, and is
punishable by imprisonment in the county jail for up to one
year, or by imprisonment under realignment, or by a fine not
exceeding $250, or by both that fine and imprisonment. �Penal
Code Section 496a(a).]
4)Requires junk or second hand dealers who buy or receive metals
used in transportation or public utility services to obtain
evidence from the seller of his or her identity, including,
but not limited to, the person's full name, signature,
address, driver's license number, vehicle license number, and
the license number of the vehicle delivering the material.
�Penal Code Section 496a(b).]
5)Provides that every junk dealer and every recycler, as
defined, in this state is hereby required to keep a written
record of all sales and purchases made in the course of his or
her business. (Business and Professions Code Section 21605.)
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6)Provides that any junk dealer or recycler who fails to keep
the required written records, or who refuses, upon demand, as
specified, to exhibit the required written record, or who
destroys that record within two years after making the final
entry of any purchase or sale of junk therein is guilty of a
misdemeanor. �Business and Professions Code Section
21608(a).] Violations are punishable as follows:
a) For a first offense, by a fine of not less than $1,000,
or by imprisonment in the county jail for not less than 30
days, or both.
b) For a second offense, by a fine of not less than $2,000,
or by imprisonment in the county jail for not less than 30
days, or both. In addition to any other sentence imposed
pursuant to this paragraph, the court may order the
defendant to stop engaging in business as a junk dealer or
recycler for a period not to exceed 30 days.
c) For a third or any subsequent offense, by a fine of not
less than $4,000, or by imprisonment in the county jail for
not less than six months, or both. In addition to any
other sentence imposed pursuant to this paragraph, the
court shall order the defendant to stop engaging in
business as a junk dealer or recycler for a period of 30
days. �Business and Professions Code Section 21608(b).]
7)Provides that, except as specified, a junk dealer or recycler
in this state shall not provide payment for nonferrous
material unless, in addition to meeting the written record
requirements, all of the following requirements are met:
a) The payment for the material is made by cash or check.
The check may be mailed to the seller at a verified
address, as specified below, or the cash or check may be
collected by the seller from the junk dealer or recycler on
the third business day on or after the date of sale.
b) At the time of sale, the junk dealer or recycler obtains
a clear photograph or video of the seller.
c) Except as provided, the junk dealer or recycler obtains
a copy of the valid driver's license of the seller
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containing a photograph and an address of the seller or a
copy of a state or federal government-issued identification
card containing a photograph and an address of the seller.
d) 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, as specified, 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" is defined as an
address that is different from the address appearing on the
seller's driver's license or identification card.
e) The junk dealer or recycler obtains a clear photograph
or video of the nonferrous material being purchased.
f) The junk dealer or recycler shall preserve the
information obtained pursuant to this paragraph for a
period of two years after the date of sale.
g) The junk dealer or recycler obtains a thumbprint of the
seller, as prescribed by the Department of Justice (DOJ).
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.
(Business and Professions Code Section 21608.5.)
FISCAL EFFECT : Unknown
COMMENTS :
1)Author's Statement : According to the author, "AB 1971
clarifies that the theft of copper and other nonferrous
materials from public transit is an act of vandalism. It also
increases the maximum fine for a vendor who knowingly buys
copper without verifying that it has been legally obtained to
be equivalent to similar fines at $1000.
"The demand for copper is increasing globally and now draws more
than $4 a pound. This high price coupled with California's
copper rich infrastructure creates a prime target for theft.
Thieves frequently strip the copper wire from signal lights,
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streetlamps, heating and air conditioning units, utility
department transformers and public transit track. Copper
theft has cost the City of Fremont over $460,000 in repairs;
BART has been saddled with $38 million in damages and delays;
and the City of Sacramento Transportation Department has had
to fund over $160,000 in copper-related repairs.
"Public transit related copper theft damage isn't just an
expensive irritation; it is a threat to public safety and
riders' lives. Stolen cable can create dangerous conditions
such transit malfunction and electrocution from stray
electrical current.
"AB 1971 is a critical step in addressing the issue of copper
theft and ensuring the safety of the public."
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.'
"Some sheriff's departments in agricultural counties have rural
crime units that investigate metal crimes almost exclusively
these days, setting up sting operations in recycling shops and
tagging copper bait with electronic tracking devices.
"Metal theft from California farmers rose 400 percent in 2006
over the previous year, according to the Agricultural Crime
Technology Information and Operations Network, a regional law
enforcement group headed by Mr. Yoshimoto. The numbers this
year are equally high. Through the end of June, there were
nearly 1000 incidents of scrap metal theft on farms, causing
more than $2 billion in losses, the group's figures show.
�Unusual Culprits Cripple Farms in California, New York Times
(July 1, 2007).]
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Metal theft has not been confined to farms and rural areas. The
Monterey County Herald reports:
"Demand for copper, brass, platinum, stainless steel and other
valuable metals has turned the underside of cars, abandoned
buildings, farms, freeways and industrial yards into gold
mines for thieves. 'It's an easy way to make a quick buck,'
said sheriff's detective Matt Davis. 'Everybody is stealing.'
" 'On Monday, deputies found three men stripping almost 900 feet
of copper cable, which appeared to have been stolen from an
industrial yard. They could have sold the copper for about
$6500, Davis said.
" 'It's happening all over the state,' he said. Robert Gomez,
manager of a Salinas auto shop, said recently he welded a
catalytic converter back onto a truck after thieves tried to
remove it. Other shops report making similar repairs for
customers. Gomez said catalytic converters are hot items for
thieves because they have valuable metals and are easy to get
to.
" 'They can just slide right under (a car) and get to it,' he
said. 'The value is the stuff inside.'
" 'A stolen converter can be sold for about $100 for the metal
it contains. But the owner of the vehicle may have to spend
up to $500 to replace it,' Gomez said.
"In Southern California, thieves have made off with guardrails
and road signs on freeways, according to the state Department
of Transportation.
"In Contra Costa County, suspected metal thieves are believed to
have caused a toxic spill after they took brass fittings from
tanks at a chemical plant in Richmond.
"Last week at a ballpark in Ventura, thieves stripped wires from
an electrical vault, damaging lights used for Little League
games.
"Jeff Smith, a spokesman for Pacific Gas & Electric Co., said
theft of electrical wire is costly and thieves risk
electrocution, even when the power has been shut off.
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" 'During the first six months of 2007, PG&E lost more than
$800,000 worth of copper cable to thievery at service yards,
power plants and utility connections in Northern California,'
Smith said.
" 'Like anything else, when the market value goes up, it becomes
a target,' Smith said. 'It's become increasingly more serious
every year.' " �Metal Marauders on Loose, Monterey County
Herald (May 10, 2008).]
More recently, the Sacramento Bee reported that an undercover
police operation resulted in the arrest of six Sacramento
recycling plant employees. Detectives posed as copper sellers
to check on whether local recycling plants were complying with
California law when purchasing metal. Detectives alleged that
they uncovered numerous violations at two recycling plants,
including paying cash immediately for the products and
accepting identification that did not depict the seller.
�Sacramento Police Copper Sting Results in 6 Arrests,
Sacramento Bee (April 5, 2012).]
3)Fines Associated with Copper Theft : The fine for the crime of
copper theft was increased in 2011. �AB 316 (Carter), Chapter
317, Statutes of 2011.] However, it appears that the fine for
purchasing or receiving stolen copper has not been increased
since the statute was enacted in 1919. Given the time that
has passed and given that the current demand on the world
market has made it more alluring for thieves to steal copper,
it appears an increase in the fine for purchasing or receiving
stolen copper is appropriate.
4)Existing Penalty Assessments : There are penalty assessments
and fees assessed on the base fine for any criminal offense.
Assuming an offender was fined the maximum of $1,000 allowed
under this bill, the following penalty assessments would be
imposed pursuant to the Penal Code and the Government Code:
Base Fine: $ 1,000
Penal Code 1464 assessment: $ 1,000($10 for
every $10)
Penal Code 1465.7 assessment: 200(20%
surcharge)
Penal Code 1465.8 assessment: 40($40
fee per criminal offense)
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Government Code 70372 assessment: 500($5 for
every $10)
Government Code 70373 assessment: 30($30
per felony or misdo.)
Government Code 76000 assessment: 700($7 for
every $10)
Government Code 76000.5 assessment: 200($2 for
every $10)
Government Code 76104.6 assessment: 100($1 for
every $10)
Government Code 76104.7 assessment 300($3 for
every $10)
Total Fine with Assessments: $ 4,070
5)Arguments in Support : According to Southern California Edison
(SCE), "Substations, transmission and distribution facilities,
and utility truck and construction sites are primary targets
for utility copper wire theft. Theft of copper can translate
into much more than loss and inconvenience for utilities -
copper thieves pose a risk to grid reliability and put
themselves at risk of physical injury or death. SCE believes
that increased fines for theft of this material will help
deter such crimes."
6)Related Legislation :
a) AB 1508 (Carter) deletes payment restriction exemptions
on the sale of nonferrous materials. AB 1508 is pending a
vote on the Assembly Floor.
b) AB 2003 (Torres) requires junk dealers and recyclers to
provide payment to sellers of nonferrous material by mailed
check only, as specified. AB 2003 is pending a vote on
the Assembly Floor.
c) AB 316 (Carter), Chapter 317, Statutes of 2011, creates
a separate code section for grand theft of copper, and adds
a fine of up to $2,500 on to the existing penalties for
theft of copper materials worth over $950.
7)Prior Legislation :
a) SB 691 (Calderon), Chapter 720, Statutes of 2009,
requires junk dealers and recyclers to take thumbprints of
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individuals selling copper, copper alloys, aluminum and
stainless steel. Sellers must also show a government
identification (ID) and proof of their current address.
Recyclers who violate the law face suspension or revocation
of their business license and increased fines and jail
time.
b) AB 844 (Berryhill), Chapter 731, Statutes of 2009,
requires recyclers to hold payment for three days, check a
photo ID and take a thumbprint of anyone selling scrap
metals. AB 844 also requires any person convicted of metal
theft to pay restitution for the materials stolen and for
any collateral damage caused during the theft.
c) AB 2724 (Benoit), of the 2007-08 Legislative Session,
would have required any person convicted of grand theft
involving the theft of wire, cable, copper, lead, solder,
mercury, iron or brass of a kind ordinarily used by, or
that ordinarily belongs to a railroad or other
transportation, telephone, telegraph, gas, water, or
electric light company or county, city, city and county, or
other political subdivision of this state engaged in
furnishing public utility service, or farm, ranch or
industrial facility or other commercial or residential
building, to pay a fine of $100 for a first offense and
$200 for any subsequent offense. AB 2724 failed passage in
the Senate Committee on Public Safety.
REGISTERED SUPPORT / OPPOSITION :
Support
California Central Valley Flood Control Association
California Farm Bureau Association
California Transit Association
Southern California Edison
Opposition
None
Analysis Prepared by : Sandy Uribe / PUB. S. / (916) 319-3744
AB 1971
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