BILL ANALYSIS                                                                                                                                                                                                    �



                                                                      



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          |SENATE RULES COMMITTEE            |                  AB 1978|
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                                 THIRD READING


          Bill No:  AB 1978
          Author:   Galgiani (D), et al.
          Amended:  7/3/12 in Senate
          Vote:     21

           
           SENATE JUDICIARY COMMITTEE  :  3-1, 6/26/12
          AYES:  Evans, Corbett, Leno
          NOES:  Harman
          NO VOTE RECORDED:  Blakeslee
           
          ASSEMBLY FLOOR  :  71-0, 4/23/12 (Consent) - See last page 
            for vote


           SUBJECT  :    Personal property:  collection boxes

           SOURCE  :     Goodwill Industries of Sacramento Valley & 
          Northern 
                        Nevada, Inc.
                      Goodwill Industries of San Joaquin Valley, Inc.


           DIGEST  :    This bill provides that a person may not place 
          or maintain a collection box on private property unless the 
          owner or operator of the collection box first obtains the 
          written consent of the property owner; provides civil 
          immunity for owners of property who act reasonably to 
          remove a collection box placed on the property without 
          consent, and for tow truck operators who act reasonably in 
          removing a collection box upon the authorization of the 
          property owner; and imposes liability on a property owner 
          or person in lawful possession of private property who 
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          causes the removal of a collection box despite valid 
          written consent, as specified.  The provisions of this bill 
          become operative on March 1, 2013.

           ANALYSIS  :    Existing law requires the front of every 
          collection box to conspicuously display both of the 
          following:  (1) the name, address, telephone number, and, 
          if available, the Internet Web site address of the owner 
          and operator of the collection box; and (2) a statement 
          that either reads "this collection box is owned and 
          operated by a for-profit organization" or "this collection 
          box is owned and operated by a nonprofit organization."  
          (Welfare and Institutions Code (WIC) Section 151(a))

          Existing law requires collection boxes owned by a nonprofit 
          organization to display a statement describing the 
          charitable cause that will benefit from the donations and 
          requires a collection box owned by a for-profit entity to 
          display a statement that the donation is not tax 
          deductible.  (WIC Section 151(b)-(c))

          Existing law authorizes a city, county, or city and county 
          to have the authority to declare a collection box in 
          violation of the above provisions to be a public nuisance 
          and abate the nuisance accordingly.  (WIC Section 152)

          Existing law provides that nothing in the above provisions 
          shall be construed to limit or infringe upon the powers of 
          a city, county, or city and county to impose additional 
          requirements upon the solicitation and sale of salvageable 
          personal property.  (WIC Section 153)

          This bill provides that a person may not place or maintain 
          a collection box on private property unless the owner or 
          operator of the collection box first obtains the written 
          consent of the property owner.  An owner may rescind 
          his/her written consent by providing written notice of the 
          rescission to the collection box owner or operator.  For 
          purposes of this section, consent shall be deemed rescinded 
          10 calendar days after the owner of private property 
          deposits a written notice of rescission in the United 
          States mail, postage prepaid, addressed to the address 
          displayed on the collection box pursuant to Section 151.


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          This bill provides the following civil immunities relating 
          to the removal of collection boxes:

           an owner of property, who acts reasonably, shall not be 
            civilly liable to a collection box owner or operator for 
            the removal of a collection box placed on the owner's 
            property without the owner's written consent;

           an owner of property who has rescinded his or her written 
            consent shall not be civilly liable to the owner or 
            operator of the collection box if the property owner has 
            acted reasonably in the removal or disposal of the 
            collection box; and

           a tow truck operator, who acts reasonably, shall not be 
            civilly liable to a collection box owner or operator for 
            the removal of a collection box from private property if 
            the operator first obtains authorization from the 
            property owner.

          This bill further provides that a property owner or person 
          in lawful possession of private property who causes the 
          removal of a collection box to a storage facility, or 
          otherwise disposes of a collection box, despite valid 
          written consent from the property owner at the time of 
          removal, shall be civilly liable to the owner or operator 
          of the collection box for four times the amount of towing 
          and storage charges, or $1,000, whichever is higher.

          This bill provides that the above civil liability will not 
          apply if removal of a collection box is necessary to comply 
          with enforcement of applicable permitting, zoning, or other 
          local ordinances. 

          This bill further provides a property owner who causes the 
          removal of a collection box shall send a written notice of 
          removal to the address that is conspicuously displayed on 
          the front of every collection box pursuant to Section 151.  
          That notice shall be mailed within five days of removal and 
          include the current location of the box.  This section 
          shall not apply fi no address appears on the front of the 
          collection box.  For purposes of this section, a property 
          owner's agent may provide written consent for the placement 
          of the collection box pursuant to paragraph (1) of 

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          subdivision (a) if that consent is consistent with the 
          authority conferred upon the agent by the property owner in 
          writing.  That agent may also rescind his or her consent 
          pursuant to paragraph (2) of subdivision (a).

          This bill provides that a property owner's agent shall be 
          considered a property owner for purposes of subdivisions 
          (b), (c), and (d) provided that the requirements of the 
          subdivisions are otherwise met.

          The provisions of the bill become operative on March 1, 
          2013.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  No   
          Local:  No

           SUPPORT  :   (Verified  8/8/12)

          Goodwill Industries of Sacramento Valley & Northern Nevada, 
            Inc. (co-source) 
          Goodwill Industries of San Joaquin Valley, Inc. (co-source)
          Browman Development Company, Inc.
          California Business Properties Association
          California Council of Goodwill Industries
          California Retailers Association
          California Waste Recovery Systems
          Goodwill Industries of Santa Cruz, Monterey & San Luis 
          Obispo Counties
          Goodwill Industries of Southern California
          Goodwill Industries of the Greater East Bay
          Goodwill Industries of the Redwood Empire
          Target

           OPPOSITION  :    (Verified  8/8/12)

          Arco (San Marcos)
          Berry Bros. Towing & Transport, Inc.
          California Police Chiefs Association
          Campus California
          Canyon Medical Alliance (Corona)
          Carmel Valley Market (Del Mar)
          Carniceria Del Sol (Corona)
          Corner House Caf� (San Diego)
          Country Store (Chino Hills)

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          D.A.R.E.
          El Cerrito Liquors (Corona)
          Fontana Brake Shop (Fontana)
          J.B. New Feed Store (Fontana)
          Joint Venture (Fontana)
          Kiki's Flowers (Upland)
          LK Mini Storage (Fontana)
          L&L Market (Upland)
          Northern California Recycling Association 
          Mohsen Oil, Inc. (Oceanside)
          Pacific Carwash (Upland)
          Planet Aid
          Samis lx Market & Liquor (Fontana)
          Sizzling Skillets
          The Gaia Movement
          USAgain, LLC

           ARGUMENTS IN SUPPORT  :    According to the author, "Current 
          law . . . does not require the owner or operator of an 
          unattended donation box to obtain the consent of the 
          property owner to employ their collection box.  In 
          addition, local governments who decide to adopt ordinances 
          governing unattended donation boxes are restricted by 
          resources necessary to enforce such an ordinance.  In 
          recent years, we have witnessed a flood of unattended 
          collection boxes being placed on commercial properties 
          without any knowledge or permission of property owners.  
          Not only are these unattended collection boxes a nuisance 
          and violation of property rights, but they siphon millions 
          of dollars in donations away from our legitimate local 
          charities and into the hands of for-profit companies that 
          share a tiny fraction of the amounts they make with 
          charitable causes."

          Goodwill Industries of Sacramento Valley & Northern Nevada, 
          in support, similarly notes:  "Several local governments 
          have approved and deployed ordinances in an effort to 
          create accountability, transparency and prevent unsupported 
          placement of donation boxes on private and public property. 
           However with local governments strapped for budget 
          funding, enforcement of these ordinances become�s] near 
          impossible."

          To address those issues, the author asserts that "AB 1978 

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          creates an enforcement mechanism that protects the public's 
          intent to donate goods for charitable purposes, the rights 
          of property owners, and the rights of collection boxes."

           ARGUMENTS IN OPPOSITION  :    USAgain, LLC expresses concern 
          that this bill "does not attach liability to unscrupulous 
          tow truck operators who remove bins without proper written 
          consent . . . and notice to collection box operators.  
          There have been incidents in New York and Georgia where tow 
          truck operators have removed USAgain boxes without consent 
          and scrapped the metal for a profit, causing a loss to 
          USAgain.  We strongly urge that the bill be amended to . . 
          . hold truck operators accountable or in the alternative 
          that it make reference to Vehicle Code Section 22658, which 
          governs the removal of property by private tow truck 
          operators."   
           
          Campus California and Planet Aid similarly contend that 
          this bill would cause violations of the charitable trust, 
          is vague and broad, and would reduce charitable giving.  
          Eva Nielsen, President of the Gaia Movement, further 
          asserts that the sponsor "does not use collection boxes in 
          its operations, but a chain of collection sites and retail 
          outlets," that this bill will create a chaotic situation. 
          ?"


           ASSEMBLY FLOOR  :  71-0, 4/23/12
          AYES:  Achadjian, Alejo, Allen, Ammiano, Atkins, Beall, 
            Bill Berryhill, Block, Blumenfield, Bonilla, Bradford, 
            Buchanan, Butler, Campos, Carter, Chesbro, Conway, Cook, 
            Dickinson, Donnelly, Eng, Feuer, Fong, Fuentes, 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, Nielsen, 
            Olsen, Pan, Perea, V. Manuel P�rez, Portantino, Silva, 
            Skinner, Solorio, Swanson, Torres, Valadao, Wagner, 
            Wieckowski, Williams, Yamada, John A. P�rez
          NO VOTE RECORDED:  Brownley, Charles Calderon, Cedillo, 
            Davis, Fletcher, Furutani, Nestande, Norby, Smyth



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          RJG:m  8/8/12   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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