BILL ANALYSIS �
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|SENATE RULES COMMITTEE | SB 1045|
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UNFINISHED BUSINESS
Bill No: SB 1045
Author: Emmerson (R)
Amended: 8/16/12
Vote: 21
SENATE JUDICIARY COMMITTEE : 5-0, 5/1/12
AYES: Evans, Harman, Blakeslee, Corbett, Leno
SENATE FLOOR : 37-0, 5/14/12
AYES: Alquist, Anderson, Berryhill, Blakeslee, Calderon,
Cannella, Corbett, Correa, De Le�n, DeSaulnier, Dutton,
Emmerson, Evans, Fuller, Gaines, Hancock, Harman,
Hernandez, Huff, Kehoe, La Malfa, Leno, Lieu, Liu,
Lowenthal, Negrete McLeod, Padilla, Pavley, Price, Rubio,
Simitian, Steinberg, Vargas, Walters, Wolk, Wright, Yee
NO VOTE RECORDED: Runner, Strickland, Wyland
ASSEMBLY FLOOR : 79-0, 6/25/12 (Consent) - See last page
for vote
SUBJECT : Metal theft: damages
SOURCE : Eastern Municipal Water District
DIGEST : This bill provides that any junk dealer or
recycler who possesses a fire hydrant, a fire department
connection, as specified, or a backflow device or
connection to that device or part of that device without a
prescribed written certification, from the agency or
utility owning or previously owning the material is liable
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to the agency or utility for the wrongful possession of
that material. The liability provided for by this bill
would be for the actual damages incurred by the agency or
utility, including the value and cost of replacing the
material, labor costs, and the costs of repairing any
damage caused by the removal of the material. This bill
additionally requires the court to also award exemplary
damages of three times the actual damages incurred by the
agency or utility, with specified exceptions. This bill
also makes several legislative findings and declarations.
Assembly Amendments (1) require a junk dealer or recycler
to notify the appropriate law enforcement agency by the end
of the next business day upon discovery that he/she has
unknowingly taken possession of a fire hydrant, fire
department connection (including brass fittings and parts),
manhole cover or lid, or backflow device or connection
("prohibited metal items") as part of a load of otherwise
nonprohibited materials without the written certification
required by this bill, (2) provide that written
confirmation, as defined, of notice to the appropriate law
enforcement agency shall relieve the junk dealer or
recycler of liability to the public utility or other agency
for the possession of prohibited metal items owned or
previously owned by the utility or agency, and (3)
establish that nothing in this act is intended to create a
basis for liability on the part of a junk dealer or
recycler to third parties for damages or injuries arising
from the theft of prohibited metal items, as specified
above.
ANALYSIS : Existing law requires that every junk dealer
and recycler, as defined, keep a written record of all
sales and purchases made in the course of his/her business.
Records must be kept for two years after making the final
entry of any purchase or sale of junk or scrap metals and
alloys, as defined. (Business and Professions Code (BPC)
Sections 21605 and 21607.) Existing law also requires that
every junk dealer and recycler set out in the written
record required, specified information. (BPC Section
21606)
Existing law prohibits a junk dealer or recycler from
providing payment for nonferrous materials, as defined,
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unless specified requirements are met. (BPC Section
21608.5)
Existing law defines junk dealer as any person engaged in
the business of buying, selling and dealing in junk, any
person purchasing, gathering, collecting, soliciting or
traveling about from place to place procuring junk, and any
person operating, carrying on, conducting or maintaining a
junk yard or place where junk is gathered together and
stored or kept for shipment, sale or transfer. (BPC
Section 21601)
This bill provides that any junk dealer or recycler who
possesses a fire hydrant, fire department connection,
including, but not limited to, brass fittings and parts,
manhole cover or lid or part of that cover or lid, or
backflow device or connection to that device or part of
that device without a written certification from the agency
or utility owning or previously owning the material shall
be liable to the agency or utility for the wrongful
possession of that material.
This bill provides that the liability of the junk dealer or
recycler in violation of this bill is for the actual
damages incurred by the agency or utility, including the
value of the material, the cost of replacing the material,
labor costs, and the costs of repairing any damage caused
by the removal of the material.
This bill also requires that the court award exemplary
damages of three times the actual damages incurred by the
agency or utility, unless the court decides that
extenuating circumstances do not justify awarding these
exemplary damages.
This bill provides that a written certification shall be on
the agency's or utility's letterhead and shall certify both
that the agency or utility has sold the material described
or is offering the material for sale, salvage, or
recycling, and that the person possessing the certification
or identified in the certification is authorized to
negotiate the sale of that material.
This bill provides that a junk dealer or recycler who
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unknowingly takes possession of one or more of the
materials described above as part of a load of otherwise
nonprohibited materials without the written certification
shall notify the appropriate law enforcement agency by the
end of the next business day upon discovery of the
prohibited materials. Written confirmation of that notice
shall relieve the junk dealer or recycler of liability to
the agency or utility for the possession of those
materials.
The following definitions shall apply for purposes of this
bill:
1. "Appropriate law enforcement agency" means, in the case
of any material described in subdivision (a) that is
located within the territorial limits of an incorporated
city, the police chief of the city or his or her
designee, or, in the case of any material described in
subdivision (a) that is located outside the territorial
limits of an incorporated city, the sheriff of the
county or his or her designee.
2. "Written confirmation" means any confirmation received
from the law enforcement agency as electronic mail,
facsimile, or other written correspondence, including,
but not limited to, a letter delivered in person or by
certified mail.
This bill provides that nothing in this bill is intended to
create a basis for liability on the part of the junk
dealers and recyclers to third parties for damages or
injuries related to or arising from the theft of the
materials described in this section.
This bill makes specified legislative findings, including,
among other things, that theft of fire hydrants, manhole
covers, and backflow devices has significantly increased in
recent years and represents very substantial, and growing,
health and safety issues.
FISCAL EFFECT : Appropriation: No Fiscal Com.: No
Local: No
SUPPORT : (Verified 8/20/12)
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Eastern Municipal Water District (source)
Association of California Water Agencies
California Association of Sanitation Agencies
California Professional Firefighters
California Special Districts Association
California State Sheriffs' Association
California Water Association
City of Roseville
Contra Costa Water District
Desert Water Agency
East Bay Municipal Utility District
East Valley Water District
El Dorado Irrigation District
Friant Water Authority
Friant Water Authority
Irvine Ranch Water District
Lake Hemet Municipal Water District
Metropolitan Water District of Southern California
Newhall County Water District
Orchard Dale Water District
Rowland Water District
San Francisco Public Utilities Commission
Scrap Recycling Industries
Upper San Gabriel Valley Municipal Water District
Walnut Valley Water District
ARGUMENTS IN SUPPORT : According to the author:
Under current law, metal recyclers are prohibited from
accepting fire hydrants for the purpose of recycling.
Recyclers are also required to obtain and keep a
photograph, fingerprint, address, and vehicle license
plate number of the transporting vehicle that delivers
the material. Furthermore, payment for metal over a
specific amount must be mailed or paid after a given
period.
To address this metal theft epidemic and strengthen
current law, SB 1045 seeks to provide cities, counties,
special districts, and private utility companies with the
additional tools they need to recover costs and impose
stiff civil penalties on thieves and recyclers who
violate the law. Specifically, SB 1045 would prohibit a
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junk dealer or recycler from possessing manhole covers,
backflow devices, and fire hydrants without written
certification on the letterhead of the public agency or
utility that owns or previously owned that material. As
a result, this bill would relieve junk dealers from the
responsibility of determining whether or not any of the
three items in question are stolen since they will no
longer be eligible for recycling without an appropriate
certification. SB 1045 would enable the agency or
utility to recoup the cost of the stolen items and offset
repair and replacement costs, as well as be awarded
exemplary damages by the court of three times the actual
damages as a deterrent to metal theft.
ASSEMBLY FLOOR : 79-0, 06/25/12
AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Beall, Bill
Berryhill, Block, Blumenfield, Bonilla, Bradford,
Brownley, Buchanan, Butler, Charles Calderon, Campos,
Carter, Cedillo, Chesbro, Conway, Cook, Davis, Dickinson,
Donnelly, Eng, Feuer, Fletcher, 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, Mitchell, Monning, Morrell, Nestande, Nielsen,
Norby, Olsen, Pan, Perea, V. Manuel P�rez, Portantino,
Silva, Skinner, Smyth, Solorio, Swanson, Torres, Valadao,
Wagner, Wieckowski, Williams, Yamada, John A. P�rez
NO VOTE RECORDED: Miller
RJG:mw 8/20/12 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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