Amended in Senate July 2, 2014

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 begin insert amend Sections 12704 and 12709 of the Business and Professions Code, and to end insert 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.

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.

This bill, until December 31, 2020, 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 begin delete crimes. end delete begin insert and would end insert begin insert authorize the department to enter into an agreement with any state agency for the purpose of administering the program. end insert The bill would establish the Metal Theft Task Force Fund, to be administered by the Department of Justice, and would continuously appropriate all moneys in that fund to the department for the purposes of the begin delete 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 or 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 or 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 or alloys, by automobile dismantlers, as defined, from the above-described fee. end delete begin insert program, thereby making an appropriation. The bill would require a weighmaster who is a junk dealer or recycler, as defined, to pay an additional license fee, to be determined by the department and to be deposited into the fund, in an amount that does not exceed the reasonable costs associated with regulating the weighmaster. The bill would prohibit the proceeds of this fee from exceeding an aggregate total of $2,000,000 per year. end insert

begin delete

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 delete

The bill would require agencies receiving funding from the program to submit an annual report, as specified, and would begin delete require end delete begin insert authorize end insert the Department of Justice to use the information in those reports to review the program and report to the Governor and the Legislature. The bill would require the Department of Justice 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 Department of Justice 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:

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Section 12704 of the end insert begin insert Business and Professions
Code end insert begin insert , as amended by Section 3 of Chapter 518 of the Statutes of
2013, is amended to read: end insert

12704.  

(a) A weighmaster shall pay to the department the
following license fee for each license year as applicable to the
operation:

(1) Seventy-five dollars ($75) if the weighmaster is operating
at a fixed location.

(2) Thirty dollars ($30) for each additional fixed location at
which the weighmaster is operating.

(3) Two hundred dollars ($200) if the weighmaster is operating
at other than a fixed location.

(4) Twenty dollars ($20) for each deputy weighmaster.

(b) In addition to the license fees set forth in subdivision (a), a
weighmaster who is a recycler or a junk dealer as defined in Section
21601 or is performing services on behalf of a recycler or junk
dealer shall also pay to the department the following license fee
for each license year as applicable to the operation:

(1) Five hundred dollars ($500) if the weighmaster is operating
at a fixed location.

(2) Five hundred dollars ($500) for each additional fixed location
at which the weighmaster is operating.

(3) Five hundred dollars ($500) if the weighmaster is operating
at other than a fixed location.

begin insert

(c) In addition to the license fees set forth in subdivisions (a)
and (b), a weighmaster who is a recycler or a junk dealer as
defined in Section 21601, or who is performing services on behalf
of a recycler or junk dealer, shall also pay to the department a
license fee, to be determined by the Department of Justice, in an
amount not to exceed the reasonable costs associated with
regulating the weighmaster. The proceeds of this fee shall not
exceed an aggregate total of two million dollars ($2,000,000) per
year.

end insert begin delete

(c)

end delete

begin insert ( end insert begin insert d) end insert  “License year” means the period of time beginning with the
first day of the month the weighmaster is required to be licensed
in this state, and ending on the date designated by the secretary
for expiration of the license, or yearly intervals after the first
renewal.

begin delete

(d)

end delete

begin insert ( end insert begin insert e) end insert  “Location” means a premise on which weighing, measuring,
or counting devices are used.

begin delete

(e)

end delete

begin insert ( end insert begin insert f) end insert  This section shall remain in effect only until January 1, 2019,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2019, deletes or extends that date.

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 12709 of the end insert begin insert Business and Professions Code end insert begin insert ,
as amended by Section 5 of Chapter 518 of the Statutes of 2013,
is amended to read: end insert

12709.  

(a) All license fees collected pursuant to this chapter
shall be deposited in the Department of Food and Agriculture Fund
to be expended by the department for the administration and
enforcement of this chapter, except as provided in begin delete subdivision end delete
begin insert subdivisions end insert (b) begin insert and (c) end insert .

(b) License fees collected pursuant to subdivision (b) of Section
12704 shall be deposited in a special account in the Department
of Food and Agriculture Fund to be expended by the department
for the administration and enforcement of Section 12703.1.

begin insert

(c) License fees collected pursuant to subdivision (c) of Section
12704 shall be deposited into the Metal Theft Task Force Fund
established pursuant to Section 14190.20 of the Penal Code to be
expended by the Department of Justice for the administration of
the Metal Theft Task Force Program established pursuant to
Section 14190.25 of the Penal Code.

end insert begin delete

(c)

end delete

begin insert ( end insert begin insert d) end insert  This section shall remain in effect only until January 1, 2019,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2019, deletes or extends that date.

begin delete SECTION 1. end delete
begin insert SEC. 3. end insert   

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 Department of Justice.

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

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

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

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

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

14190.20.  

(a) The Metal Theft Task Force Fund is hereby
established within the begin delete Office of the Controller. end delete begin insert department. end insert
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 begin delete Controller. end delete begin insert department. end insert

(b) The fund shall consist of moneys deposited into it from the
federal government, industry, and private sources, and from fees
collected pursuant to begin delete Section 14190.45. end delete begin insert subdivision (c) of Section
12704 of the Business and Professions Code. end insert 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. begin insert The
department may enter into agreements with other state agencies
to administer end insert begin insert grants to applicant agencies from the fund. end insert

(d) Moneys distributed from the fund pursuant to the program
established pursuant to Section 14190.25 are intended to ensure
that begin insert the department and end insert local law enforcement and district
attorneys are equipped with the necessary personnel and tools to
successfully combat metal theft and related recycling begin delete crimes, end delete
begin insert crimes with a primary focus of shutting down illegal recycling
operations, end insert which include, but are not limited to, all of the
following offenses:

begin insert

(1) Illegal recycling operations.

end insert begin delete

(1)

end delete

begin insert ( end insert begin insert 2) end insert  The theft of metals, including, but not limited to, nonferrous
metals.

begin delete

(2)

end delete

begin insert ( end insert begin insert 3) end insert  The purchase and recycling of stolen metals, including, but
not limited to, recycled metal beverage containers, by recyclers.

begin delete

(3)

end delete

begin insert ( end insert begin insert 4) end insert  The transportation of stolen metals from junk dealers and
recyclers in this state to another state.

begin delete

(4)

end delete

begin insert ( end insert begin insert 5) end insert  The transportation of stolen metals from another state to this
state.

begin delete

(5) Illegal recycling operations.

end delete

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. begin insert The department may
enter into an agreement with any state agency for the purpose of
administering the program and the evaluation and monitoring of
all grants made pursuant to this title. end insert

(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
begin insert illegal recycling operations, and end insert metal theft and related recycling
begin delete crimes. end delete begin insert crimes. The department may expend funds to serve as the
lead law enforcement agency in the investigation of metal theft
crimes. end insert

(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 begin insert illegal recycling
operations, and end insert metal theft and related recycling crimes. begin insert The
department may expend funds to serve as the lead law enforcement
agency in the investigation of metal theft crimes. end insert

(d) Moneys distributed under this program shall be expended
for the exclusive purpose of deterring, investigating, and
prosecuting begin insert illegal recycling operations and end insert 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.

begin insert

(c) The department may enter into an agreement with any state
agency for the purpose of developing administrative procedures
and specific guidelines for the selection of agencies to receive a
grant under this program.

end insert

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 begin delete shall end delete begin insert may end insert 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).

begin delete

14190.45.  

(a) Except as provided in subdivisions (b) and (c)
of this section, and Section 14190.50, 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).

14190.50.  

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 delete

begin delete 14190.55. end delete
begin insert 14190.45. 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 14190.60. end delete
begin insert 14190.50. end insert   

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

begin delete 14190.65. end delete
begin insert 14190.55. 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.