Amended in Senate June 16, 2014

Amended in Senate June 10, 2014

Amended in Assembly April 21, 2014

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 add and repeal Title 11.8 (commencing with Section 14190.15) of Part 4 of the Penal Code, relating to metal theft, and making an appropriation therefor.

LEGISLATIVE COUNSEL’S DIGEST

AB 2313, as amended, Nestande. Metal theft and related recycling crimes.

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.

begin delete

Existing law requires the Office of Emergency Services to administer a comprehensive statewide domestic violence program to establish a targeted or directed program for the development and establishment of domestic violence service in currently unserved and underserved areas, and establishes a grant program administered by the Office of Emergency Services for the distribution of financial and technical assistance to domestic violence shelter service providers for this purpose.

end delete 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

This bill, until December 31, 2020, would require the begin delete Office of Emergency Services end delete begin insert Department of Justice end insert 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 begin delete Office of Emergency Services, end delete begin insert Department of Justice, end insert 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, not to exceed 1% of the purchase price for each junk sale, which involves the sale of scrap metals begin delete and end delete begin insert or end insert alloys, on the seller of junk for the purpose of regulating that seller, thereby making an appropriation. The bill would exempt a junk sale or transaction, which involves the sale of scrap metals begin delete and end delete begin insert or end insert alloys, between junk dealers and recyclers, as defined, from the above-described fee. The bill would exempt a junk sale or transaction, which involves the sale of scrap metals begin delete and end delete begin insert or end insert alloys, by automobile dismantlers, as defined, from the above-described fee. begin delete The bill would also specify that the provisions regarding the above-described fee would not apply to any secondhand dealers, coin dealers, and licensed pawnbrokers, as defined. end delete

begin insert

This bill would exempt from the provisions of the act any junk sale or transaction, which involves the sale of scrap metals or alloys, involving a licensed pawnbroker, or a secondhand dealer or coin dealer doing business under a California secondhand dealer’s license.

end insert

The bill would require agencies receiving funding from the program to submit an annual report, as specified, and would require the begin delete Office of Emergency Services end delete begin insert Department of Justice end insert to use the information in those reports to review the program and report to the Governor and the Legislature. The bill would require the begin delete Office of Emergency Services end delete begin insert Department of Justice end insert to submit a comprehensive report to the Legislature, no later than December 31, 2019, on the status and progress, since the year 2016, of the program in deterring, investigating, and prosecuting metal theft and related recycling crimes. The bill would specify that the program would not be implemented until the begin delete Office of Emergency Services end delete begin insert Department of Justice end insert determines that sufficient moneys have been deposited in the fund to implement the program.

Vote: majority. Appropriation: yes. Fiscal committee: yes. State-mandated local program: no.

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

SECTION 1.  

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

 

Title 11.8.  THEFT AND RECYCLING OF METALS

 

14190.15.  

For the purposes of this title, the following
definitions shall apply:

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

(b) “Department” means the begin delete Office of Emergency Services end delete
begin insert Department of Justice end insert .

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

begin insert

(d) “Junk” has the same meaning as set forth in Section 21600
of the Business and Professions Code.

end insert begin insert

(e) “Junk dealer” has the same meaning as set forth in Section
21601 of the Business and Professions Code.

end insert begin delete

(d)

end delete

begin insert (f) end insert  “Program” means the Metal Theft Task Force Program.

begin insert

(g) “Recycler” has the same meaning as set fourth in Section
21605 of the Business and Professions Code.

end insert

14190.20.  

(a) The Metal Theft Task Force Fund is hereby
established within the Office of the Controller. 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 with the Controller.

(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 junk dealers and
recyclers in this state to another state.

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

(5) Illegal recycling operations.

14190.25.  

(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.

14190.30.  

(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 applicant agencies in areas with
high rates of reported metal thefts.

(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.

(7) The estimated number of illegal recycling operations in the
area.

14190.35.  

(a) Each agency 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 crime reports, investigations, arrests,
and convictions for metal theft and related recycling crimes that
resulted from expenditure of the funds.

14190.40.  

(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 reported.

(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) The number of illegal recycling operations or illegal junk
dealers, or both, shut down.

(7) 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 benefits, operating expenses, equipment
purchases, and allowable expenditures.

(C) Any other relevant information requested.

(c) By no later than December 31, 2019, the department shall,
notwithstanding Section 10231.5 of the Government Code, submit
a comprehensive report to the Legislature on the status and
progress, since the year 2016, of the program in deterring,
investigating, and prosecuting metal theft and related recycling
crimes. The report shall be based on each annual report submitted
to the department pursuant to subdivision (b).

14190.45.  

(a) Except as provided in subdivisions begin delete (b), (c), and
(d), end delete begin insert (b) and (c) of this section, and Section 14190.50, end insert a fee,
determined by the department, not to exceed 1 percent of the
purchase price for each junk sale, which involves the sale of any
scrap metals or alloys, 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 and recyclers at the
time each sale is conducted, and shall be submitted to the Controller
for deposit into the fund.

(b) Each junk sale or transaction, which involves the sale of any
scrap metals or alloys, between junk dealers and recyclers shall
not be subject to the fee described in subdivision (a).

(c) Each junk sale or transaction, which involves the sale of any
scrap metals or alloys, by an automobile dismantler, as defined in
Section 220 of the Vehicle Code, shall not be subject to the fee
described in subdivision (a).

begin delete

(d) This section does not apply to any of the following:

end delete begin delete

(1) Secondhand dealers or coin dealers, or both, as defined in
Section 21626 of the Business and Professions Code.

end delete begin delete

(2) Pawnbrokers licensed pursuant to Chapter 3 of Division 8
of the Finance Code.

end delete begin delete

(e) For purposes of this section, the following definitions shall
apply:

end delete begin delete

(1) “Junk” has the same meaning as set forth in Section 21600
of the Business and Professions Code.

end delete begin delete

(2) “Junk dealer” has the same meaning as set forth in Section
21601 of the Business and Professions Code.

end delete begin delete

(3) “Recycler” has the same meaning as set forth in Section
21605 of the Business and Professions Code.

end delete

begin insert

begin insert 14190.50. end insert   

This title shall not apply to any of the following:

(a) A junk sale or transaction, which involves the sale of any
scrap metal or alloys, reported by a secondhand dealer or coin
dealer pursuant to Section 21628 of the Business and Professions
Code.

(b) A junk sale or transaction, which involves the sale of any
scrap metal or alloys, involving either:

(1) A pawnbroker licensed pursuant to Chapter 3 (commencing
with Section 21300) of Division 8 of the Financial Code.

(2) A secondhand dealer or coin dealer doing business under
a secondhand dealer’s license issued pursuant to Section 21641
of the Business and Professions Code.

end insert

begin delete 14190.50. end delete
begin insert 14190.55. end insert   

(a) The program established pursuant to this title
shall not be implemented until the department 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 delete 14190.55. end delete
begin insert 14190.60. end insert   

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

begin delete 14190.60. end delete
begin insert 14190.65. end insert   

This title shall remain in effect only until December
31, 2020, and as of that date is repealed, unless a later enacted
statute, that is enacted before December 31, 2020, deletes or
extends that date.