BILL ANALYSIS �
------------------------------------------------------------
|SENATE RULES COMMITTEE | AB 1971|
|Office of Senate Floor Analyses | |
|1020 N Street, Suite 524 | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
------------------------------------------------------------
THIRD READING
Bill No: AB 1971
Author: Buchanan (D)
Amended: 4/30/12 in Assembly
Vote: 21
SENATE PUBLIC SAFETY COMMITTEE : 6-0, 6/12/12
AYES: Hancock, Anderson, Harman, Liu, Price, Steinberg
NO VOTE RECORDED: Calderon
ASSEMBLY FLOOR : 76-0, 5/14/12 - See last page for vote
SUBJECT : Theft: junk, metals, and secondhand materials
SOURCE : Author
DIGEST : This bill (1) 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; (2) clarifies that, for
purposes of the vandalism statute, "damages" includes
damage caused to public transit properties and facilities,
public park properties and facilities, and public utilities
and water properties and facilities; and (3) makes
specified findings and declarations.
ANALYSIS : Existing law states that every person who,
being a dealer in or collector of junk, metals or
secondhand materials, or the agent, employee, or
representative of such dealer or collector, buys or
receives any wire, cable, copper, lead, solder, mercury,
CONTINUED
AB 1971
Page
2
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 electric light company or county, city, city
and county or other political subdivision of this state
engaged in furnishing 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 criminally receiving that property, and is punishable,
by imprisonment in a county jail for not more than one
year, or by imprisonment pursuant to subdivision (h) of
Section 1170, or by a fine of not more than $250, or by
both that fine and imprisonment.
Any person buying or receiving material described above
shall obtain evidence of his or her identity from the
seller including, but not limited to, that person's full
name, signature, address, driver's license number, vehicle
license number, and the license number of the vehicle
delivering the material.
The record of the transaction shall include an appropriate
description of the material purchased and such record shall
be maintained pursuant to Section 21607 of the Business and
Professions Code. (Penal Code Section 496a)
Existing law states that every person who steals, takes, or
carries away copper materials of another, including, but
not limited to, copper wire, copper cable, copper tubing,
and copper piping, which are of a value exceeding $950 is
guilty of grand theft. Grand theft of copper shall be
punishable as a misdemeanor, by a fine not exceeding
$2,500, by imprisonment in a county jail not exceeding one
year, or by both that fine and imprisonment, or as a
felony, punishable by 16 months, two or three years in the
county jail, pursuant to subdivision (h) of Section 1170
and a fine not exceeding $10,000.
Existing law provides that every junk dealer and every
recycler, as defined, in this state is required to keep a
written record of all sales and purchases made in the
course of his or her business. (Business and Professions
Code (BPC) Section 21605.) Those records must include:
CONTINUED
AB 1971
Page
3
1.The place and date of each sale or purchase of junk made
in the conduct of his or her business as a junk dealer or
recycler.
2.The name, valid driver's license number and state of
issue or California-issued identification card number,
and vehicle license number including the state of issue
of any motor vehicle used in transporting the junk to the
junk dealer's or recycler's place of business.
3.The name and address of each person to whom junk is sold
or disposed of, and the license number of any motor
vehicle used in transporting the junk from the junk
dealer's or recycler's place of business.
4.A description of the item or items of junk purchased or
sold, including the item type and quantity, and
identification number, if visible.
5.A statement indicating either that the seller of the junk
is the owner of it, or the name of the person he or she
obtained it from, as shown on a signed transfer document.
6.Any person who makes, or causes to be made, any false or
fictitious statement regarding any information required
by this section, is guilty of a misdemeanor.
7.Every junk dealer and every recycler shall report the
above information to the chief of police, if the dealer's
or recycler's business is located in a city, or to the
sheriff, if the dealer's or recycler's business is
located in an unincorporated part of a county, upon
request of the chief of police or sheriff and on a
monthly basis, except:
8.The chief of police or sheriff may request the report
described in this section on a weekly basis if there is
an ongoing investigation of the junk dealer or recycler
concerning possible criminal activity. The chief of
police or sheriff may request weekly reports for no more
than a two-month period unless the investigation of the
junk dealer or recycler continues and the chief of police
or sheriff makes a subsequent request for weekly reports
for an additional two-month period or part thereof. (BPC
CONTINUED
AB 1971
Page
4
Section 21606)
Existing law 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. (BPC Section 21608
(a).) Violations are punishable as follows:
1.For a first offense, by a fine of not less than $500, or
by imprisonment in the county jail for not less than 30
days, or both.
2.For a second 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. 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.
3.For a third or any subsequent offense, by a fine of not
less than $2,000, 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. (BPC Section 21608 (b))
Existing law defines a "secondhand dealer" as any person or
entity taking in pawn, accepting for sale of consignment,
trading, et cetera, any tangible personal property. (BPC
Section 21625)
Existing law defines a pawnbroker as a "person engaged in
the business of receiving goods in pledge for security for
a loan." (Financial Code Section 21000)
Existing law 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 of Sections 21605 and 21606,
all of the following requirements are met:
CONTINUED
AB 1971
Page
5
1.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 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.Except as provided below, 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 or a copy of a state or federal government-issued
identification card containing a photograph and an
address of the seller.
4.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"
means an address that is different from the address
appearing on the seller's driver's license or
identification card.
5.The junk dealer or recycler obtains a clear photograph or
video of the nonferrous material being purchased.
6.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.
7.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.
8.Inspection or seizure of the thumbprint shall only be
CONTINUED
AB 1971
Page
6
performed by a peace officer acting within the scope of
his/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. (BPC Section 21608.5)
Existing law (subdivisions of BPC Section 21628) provides
that pawnbrokers and secondhand dealers shall report daily
on forms approved or provided by DOJ, all personal property
purchased, taken in trade, taken in pawn, et cetera, to
local law enforcement. The report shall include the
following information:
1.The name and current address and identification of the
intended seller or pledgor of the property (subds.
(a)-(b));
2.A complete and reasonably accurate description of
serialized or nonserialized property (subds. (c)-(d));
3.A certification by the intended seller or pledgor that he
or she is the owner of the property, or has the authority
of the owner to sell or pledge the property and that any
information provided is true and complete (subds.
(e)-(f)); and
4.A legible fingerprint taken from the intended seller or
pledgor (subd. (g)).
Existing law provides that DOJ shall, in consultation with
local law enforcement, develop clear and comprehensive
categories of property subject to reporting requirements in
BPC Section 21628. The categories shall be incorporated by
secondhand dealers and coin dealers (BPC Section 21626) for
reporting requirements. DOJ and local law enforcement, in
consultation with secondhand dealer and coin dealer
representatives, shall develop a standard statewide format
for electronic reporting. Twelve months after the format
and the categories have been developed, each secondhand
dealer and coin dealer shall make reports electronically.
Until that time, each secondhand dealer and coin dealer may
either continue to report this information using existing
CONTINUED
AB 1971
Page
7
forms and procedures or may begin electronically reporting
this information under the reporting categories and using
the new format when it has been developed. (BPC Section
21628)
Existing law requires a secondhand dealer to make acquired
property available for law enforcement inspection for
specified time periods. (BPC Section 21636)
This bill increases the maximum fine for junk and
secondhand dealers who knowingly purchase metals used in
transportation or public utility services without due
diligence from $250 to $1,000.
This bill clarifies that, for purposes of the vandalism
statute, "damages" includes damage caused to public transit
properties and facilities, public park properties and
facilities, and public utilities and water properties and
facilities.
This bill makes various findings and declarations.
Previous Legislation to Curb Metal Thef t
SB 1387 (Emmerson), which passed the Senate (37-0) on May
14, 2012, prohibits junk dealers and recyclers from
possessing any fire hydrant, fire department connection,
manhole cover or backflow device without a written
certification on the letterhead of the agency previously
owning the material, and adds fire hydrants, manhole covers
and backflow devices to the list of items which, if any
person possesses, knowing they were stolen, would receive
an additional fine of up to $3,000. The bill is in the
Assembly Business, Professions and Consumer Protection
Committee.
In 2011, the Legislature created a separate offense of
grand theft of copper material. (AB 316 (Carter), Chapter
317, Statutes of 2011)
In 2009, the Legislature passed the following measures to
address the growing problem of metal theft:
SB 447 (Maldonado), Chapter 732, Statutes of 2009,
CONTINUED
AB 1971
Page
8
assists local law enforcement officials in quickly
investigating stolen metal and apprehending thieves by
requiring scrap metal dealers and recyclers to report
what materials are being scraped at their facilities and
by whom on a daily basis. These rules already apply to
pawn shop dealers.
SB 691 (Calderon), Chapter 720, Statutes of 2009,
requires junk dealers and recyclers to take thumbprints
of 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.
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.
FISCAL EFFECT : Appropriation: No Fiscal Com.: No
Local: No
SUPPORT : (Verified 6/13/12)
AT&T
California Farm Bureau Federation
California Railroad Industry
California Transit Association
Central Valley Flood Control Association
East Valley Water District
Eastern Municipal Water District
El Dorado Irrigation District
Orchard Dale Water District
Rowland Water District
San Diego County Board of Supervisors
San Gabriel Valley Water Association
Santa Clara Valley Transportation Authority
Southern California Edison
ARGUMENTS IN SUPPORT : The Santa Clara Valley
CONTINUED
AB 1971
Page
9
Transportation Authority states, "Since 2008, a series of
bills have been enacted at the state level to combat metal
theft generally. These measures have focused on placing
reporting requirements on junk dealers and recyclers
comparable to those that exist for pawnbrokers and
secondhand dealers, and on enhancing certain fines and
other penalties for metal theft. However, the recent rise
in scrap metal values has made the theft and sale of these
materials increasingly profitable and, therefore, metal
theft continues to be a problem. AB 1971 will address an
inconsistency in the fine pertaining to certain acts
undertaken by a buyer of copper, and will ensure that
copper wiring theft resulting in damage to the property and
facilities of public transit agencies, as well as to
certain other public property and facilities, can be
prosecuted as vandalism."
ASSEMBLY FLOOR : 76-0, 5/14/12
AYES: Achadjian, Alejo, Allen, Ammiano, Beall, Bill
Berryhill, Block, Blumenfield, Bonilla, Bradford,
Brownley, Buchanan, Butler, Charles Calderon, Campos,
Carter, Cedillo, Chesbro, Conway, Cook, Davis, Dickinson,
Donnelly, Eng, Feuer, Fong, Fuentes, Furutani, Beth
Gaines, Galgiani, Garrick, Gatto, Gordon, Gorell, Grove,
Hagman, Halderman, Hall, Harkey, Hayashi, Roger
Hern�ndez, Hill, Huber, Hueso, Huffman, Jeffries, Jones,
Knight, Lara, Logue, Bonnie Lowenthal, Ma, Mansoor,
Mendoza, Miller, Mitchell, Monning, Morrell, Nestande,
Nielsen, Norby, Olsen, Pan, V. Manuel P�rez, Portantino,
Silva, Skinner, Smyth, Solorio, Swanson, Torres, Wagner,
Wieckowski, Williams, Yamada, John A. P�rez
NO VOTE RECORDED: Atkins, Fletcher, Perea, Valadao
RJG:do 6/13/12 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
**** END ****
CONTINUED
AB 1971
Page
10
CONTINUED