Amended in Assembly March 28, 2014

California Legislature—2013–14 Regular Session

Assembly Bill No. 2313

Introduced by Assembly Members Nestande and Olsen

(Coauthor: Assembly Member Gray)

February 21, 2014

An act to begin delete amend Section 17500 of the Business and Professions Code, relating to business. end delete begin insert add Title 11.8 (commencing with Section 14190.15) to Part 4 of the Penal Code, relating to metal theft, and making an appropriation therefor. end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 2313, as amended, Nestande. begin delete False advertising. end delete begin insert Metal theft and related recycling crimes. end insert

begin insert

Existing law provides that any person who feloniously steals, takes, or carries away the personal property of another, or who fraudulently appropriates property that has been entrusted to him or her, is guilty of theft. Existing law also provides that a person who, being a dealer in or collector of junk, metals, or secondhand materials, buys or receives any wire, cable, copper, lead, solder, mercury, iron, or brass that 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, or city and county 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.

end insert begin insert

Existing law establishes the Department of Justice, which is headed by the Attorney General and tasked with, among other things, representing California in criminal cases.

end insert begin insert

This bill would require the Department of Justice to establish a Metal Theft Task Force Program to provide grants to applicant agencies for the purpose of providing local law enforcement and district attorneys with the tools necessary to successfully interdict the commission of metal theft and related metal recycling crimes. The bill would establish the Metal Theft Task Force Fund, to be administered by the department, and would continuously appropriate all moneys in that fund to the department for the purposes of the program. The bill would impose a fee, to be deposited into the fund, of up to 1% of the purchase price for each junk sale on the seller of junk for the purpose of regulating that seller, thereby making an appropriation.

end insert begin insert

The bill would require agencies receiving funding from the program to submit an annual report, as specified, and would require the department to use the information in those reports to review the program and report to the Governor and the Legislature. The bill would specify that the program would not be implemented until the Department of Finance determines that sufficient moneys have been deposited in the fund to implement the program.

end insert begin insert

This bill would also state findings and declarations of the Legislature relative to metal theft and the intent of the Legislature to provide local law enforcement with the tools to interdict metal theft and related metal recycling crimes.

end insert begin delete

Existing law makes it a crime for a person, corporation or association, or any employee of a corporation or association, to engage in advertising practices conducted by specified means of dissemination or publication, where a statement is made or disseminated that is untrue or misleading, and which by the exercise of reasonable care should be known to be untrue or misleading.

end delete begin delete

This bill would make technical, nonsubstantive changes to these provisions.

end delete

Vote: majority. Appropriation:  begin delete no end delete begin insert yes end insert . Fiscal committee:  begin delete no end delete begin insert yes end insert . State-mandated local program: no.

The people of the State of California do enact as follows:

begin insert

begin insert SECTION 1. end insert   

end insert begin insert

(a) The Legislature finds and declares both of
the following:

end insert begin insert

(1) The theft of metal is a serious problem in California. Losses
due to metal theft are not limited to the value of the metal taken,
but frequently include the cost of repairing or replacing the
infrastructure, component, or item from which the metal was
removed, which greatly exceeds the value of the metal itself.

end insert begin insert

(2) The United States Department of Energy estimates that metal
theft costs United States businesses approximately one billion
dollars ($1,000,000,000) annually.

end insert begin insert

(b) It is the intent of the Legislature in enacting this act to
provide local law enforcement and district attorneys with the tools
necessary to successfully interdict the commission of metal theft
and related metal recycling crimes.

end insert

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Title 11.8 (commencing with Section 14190.15) is
added to Part 4 of the end insert begin insert Penal Code end insert begin insert , to read: end insert

begin insert

 

Title  begin insert 11.8. end insert   THEFT AND RECYCLING OF METALS

 

begin insert 14190.15. end insert   

For the purposes of this title, the following terms
have the following meanings:

(a) “Agency” means a regional task force, a local law
enforcement agency, or a district attorney.

(b) “Department” means the Department of Justice.

(c) “Fund” means the Metal Theft Task Force Fund.

(d) “Program” means the Metal Theft Task Force Program.

begin insert 14190.20. end insert   

(a) The Metal Theft Task Force Fund is hereby
established within the State Treasury. Notwithstanding Section
13340 of the Government Code, the fund is hereby continuously
appropriated to the department for the purposes set forth in this
title. Transfers to the Metal Theft Task Force Fund shall be
deposited in the State Treasury, or in a state depository bank
approved by the Treasurer.

(b) The fund shall consist of moneys deposited into it from the
federal government, industry, and private sources, and from fees
collected pursuant to Section 14190.45. General Fund moneys
shall not be deposited into the fund nor used to start up, implement,
or support the continuing administration of the provisions of this
title.

(c) The fund shall be administered by the department.

(d) Moneys distributed from the fund pursuant to the program
established pursuant to Section 14190.25 are intended to ensure
that local law enforcement and district attorneys are equipped
with the necessary personnel and tools to successfully combat
metal theft and related recycling crimes, which include, but are
not limited to, all of the following offenses:

(1) The theft of metals, including, but not limited to, nonferrous
metals.

(2) The purchase and recycling of stolen metals, including, but
not limited to, recycled metal beverage containers, by recyclers.

(3) The transportation of stolen metals from this state to another
state.

(4) The transportation of stolen metals from another state to
this state.

begin insert 14190.25. end insert   

(a) The department shall establish the Metal Theft
Task Force Program. Administration of the overall program and
the evaluation and monitoring of all grants made pursuant to this
title shall be performed by the department.

(b) Moneys appropriated to the department for the program
shall be expended for programs that enhance the capacity of local
law enforcement and prosecutors to deter, investigate, and
prosecute metal theft and related recycling crimes.

(c) After deduction of the department’s actual and necessary
administrative costs, the moneys in the fund shall be expended for
programs to enhance the capacity of local law enforcement and
prosecutors to deter, investigate, and prosecute metal theft and
related recycling crimes.

(d) Moneys distributed under this program shall be expended
for the exclusive purpose of deterring, investigating, and
prosecuting metal theft and related recycling crimes. Agencies
that receive moneys pursuant to the program may consult with
experts from the United States military, the California Military
Department, law enforcement entities, and various other state and
private organizations, including pertinent trade associations, as
necessary to maximize the effectiveness of this program.

begin insert 14190.30. end insert   

(a) The department shall develop administrative
procedures for the selection of agencies to receive a grant under
this program, which shall include, at a minimum, the following
requirements:

(1) That each agency seeking a grant submit a written
application to the department setting forth in detail the proposed
use of the grant funds.

(2) That, if an applicant agency is a regional task force, the task
force shall be identified by a name that is appropriate to the area
that it serves and, in order to qualify for a grant, shall be
comprised of local law enforcement and prosecutors from at least
two counties.

(3) That priority be given to agencies that are regional task
forces outside of the 13 counties funded under the rural crime
prevention programs authorized pursuant to Sections 14170 and
14180.

(b) The department shall develop specific guidelines for the
selection of agencies to receive a grant under this program. The
guidelines shall include, at a minimum, all of the following
selection criteria, which shall be considered by the department in
awarding grants:

(1) The number of metal theft or related recycling crime cases
filed in the immediately preceding year.

(2) The number of metal theft or related recycling crime cases
investigated in the immediately preceding year.

(3) The number of victims involved in the cases filed.

(4) The total aggregate monetary loss suffered by the victims,
including damage caused by the theft.

(5) Local moneys available to assist the agencies.

(6) The number of licensed recycling facilities in the area.

begin insert 14190.35. end insert   

(a) Each agency that has been awarded a grant
under the program during the previous funding cycle shall, upon
reapplication for funds to the department in each successive year
and in addition to any other information required by this title,
submit a detailed accounting of moneys received and expended in
the immediately preceding year.

(b) The accounting shall include all of the following information:

(1) The amount of moneys received and expended.

(2) The use to which those moneys were put, including payment
of salaries and expenses, purchase of equipment and supplies, and
other expenditures by type.

(3) The number of filed complaints, investigations, arrests, and
convictions for metal theft and related recycling crimes that
resulted from expenditure of the funds.

begin insert 14190.40. end insert   

(a) The department shall regularly review the
effectiveness of the program in deterring, investigating, and
prosecuting metal theft and related recycling crimes and shall,
notwithstanding Section 10231.5 of the Government Code, submit
a report to the Legislature and Governor that is based on reports
submitted to the department pursuant to subdivision (b).

(b) Agencies receiving funding from the program shall submit
an annual report to the department that details all of the following:

(1) The number of metal theft and recycling crime cases filed
in the immediately preceding year.

(2) The number of metal theft and recycling crime cases
investigated in the immediately preceding year.

(3) The number of victims involved in the cases filed.

(4) The number of convictions obtained in the immediately
preceding year.

(5) The total aggregate monetary loss suffered by the victims,
including damage caused by the theft.

(6) An accounting of moneys received and expended in the
immediately preceding year, which shall include all of the
following:

(A) The amount of moneys received and expended.

(B) The uses to which those moneys were put, including payment
of salaries and expenses, purchase of supplies, and other
expenditures.

(C) Any other relevant information requested.

begin insert 14190.45. end insert   

A fee of up to 1 percent of purchase price for each
junk sale, as defined in Section 21600 of the Business and
Professions Code, shall be assessed on the seller of junk for the
purpose of regulating that seller. The fee assessed pursuant to this
section shall be collected by junk dealers, as defined in Section
21601 of the Business and Professions Code, and recyclers, as
defined in Section 21605 of the Business and Professions Code,
at the time each sale is conducted, and shall be submitted to the
Controller for deposit into the fund.

begin insert 14190.50. end insert   

(a) The program established pursuant to this title
shall not be implemented until the Department of Finance
determines that sufficient moneys have been deposited in the Metal
Theft Task Force Fund to implement the provisions of this title.

(b) The department shall only be required to implement the
provisions of this title upon the availability of moneys in the fund
in an amount sufficient to cover all costs relating to the startup,
implementation, and continuing administration of the provisions
of this title.

begin insert 14190.55. end insert   

The department may adopt regulations as needed
to administer this title.

end insert

begin delete

SECTION 1.  

Section 17500 of the Business and Professions
Code is amended to read:

17500.  

It is unlawful for a person, firm, corporation or
association, or an employee thereof with intent directly or indirectly
to dispose of real or personal property or to perform services,
professional or otherwise, or anything of any nature whatsoever
or to induce the public to enter into an obligation relating thereto,
to make or disseminate or cause to be made or disseminated before
the public in this state, or to make or disseminate or cause to be
made or disseminated from this state before the public in any state,
in a newspaper or other publication, or an advertising device, or
by public outcry or proclamation, or in any other manner or means,
including over the Internet, a statement, concerning that real or
personal property or those services, professional or otherwise, or
concerning any circumstance or matter of fact connected with the
proposed performance or disposition thereof, that is untrue or
misleading, and that is known, or should be known, by the exercise
of reasonable care, to be untrue or misleading, or for any person,
firm, or corporation to so make or disseminate or cause to be so
made or disseminated any such statement as part of a plan or
scheme with the intent not to sell that personal property or those
services, professional or otherwise, so advertised at the price stated
therein, or as so advertised. Any violation of the provisions of this
section is a misdemeanor punishable by imprisonment in the county
jail not exceeding six months, or by a fine not exceeding two
thousand five hundred dollars ($2,500), or by both that
imprisonment and fine.

end delete