Amended in Senate August 4, 2014

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 amend Sections 12704 and 12709 of the Business and Professions Code, and 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.

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 begin delete December 31, end delete begin insert January 1, end insert 2020, would require the Department of Justice to establish a Metal Theft Task Force Program begin delete 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 and end delete begin insert end insert begin insert designed to enhance the capacity of the department to serve as the lead law enforcement agency in the investigation and prosecution of illegal recycling operations, and metal theft and related recycling crimes, and would authorize the department to enter into partnerships, as defined, with local law enforcement agencies, regional task forces, and district attorneys for the purpose of achieving the goals of the program. The bill end insert would authorize the department to enter into an agreement with any state agency for the purpose of administering the program. 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 program, thereby making an appropriation. begin delete 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 delete

begin delete The bill would require agencies receiving funding from the program to submit an annual report, as specified, and would authorize the Department of Justice to use the information in those reports to review the program and report to the Governor and the Legislature. end delete The bill would require the Department of Justice to submit a comprehensive report to the Legislature, no later than December 31, begin delete 2019, end delete begin insert 2018, end insert on the status and progress, since the year 2016, of the program in deterring, investigating, and prosecuting begin insert illegal recycling operations, and end insert 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.

begin insert

Existing law requires, until January 1, 2019, a weighmaster who is a junk dealer or recycler to pay an additional annual fee of $500 to the Department of Food and Agriculture for each location at which the weighmaster operates, as specified, for the administration and enforcement of specified provisions.

end insert begin insert

The bill would extend the operation of the above provisions until January 1, 2020, and would additionally require a weighmaster who is a junk dealer or recycler, as defined, to pay a specified additional license fee to be deposited into the Metal Theft Task Force Fund and to be expended by the Department of Justice for the purpose of administering the Metal Theft Task Force Program. The bill would prohibit the proceeds of this fee from exceeding an aggregate total of $2,000,000 per year.

end insert

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.  

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

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.

(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 begin delete 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. end delete begin insert the following license fee: end insert begin delete The end delete

begin insert

(A) One thousand dollars ($1,000) if the weighmaster is
operating at a fixed location.

end insert begin insert

(B) One thousand five hundred dollars ($1,500) if the
weighmaster is operating at other than a fixed location.

end insert

begin insert (1) end insert begin insert   end insert begin insert The end insert proceeds of this fee shall not exceed an aggregate total
of two million dollars ($2,000,000) per year.

(d) “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.

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

(f) This section shall remain in effect only until January 1, begin delete 2019, end delete
begin insert 2020, end insert and as of that date is repealed, unless a later enacted statute,
that is enacted before January 1, begin delete 2019, end delete begin insert 2020, end insert deletes or extends
that date.

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 12704 of the end insert begin insert Business and Professions Code end insert begin insert ,
as added by Section 4 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) “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.

(c) “Location” means a premise on which weighing, measuring,
or counting devices are used.

(d) This section shall become operative on January 1, begin delete 2019. end delete
begin insert 2020. end insert

begin delete SEC. 2. end delete
begin insert SEC. 3. end insert   

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

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 subdivisions
(b) and (c).

(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.

(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.

(d) This section shall remain in effect only until January 1, begin delete 2019, end delete
begin insert 2020, end insert and as of that date is repealed, unless a later enacted statute,
that is enacted before January 1, begin delete 2019, end delete begin insert 2020, end insert deletes or extends
that date.

begin insert

begin insert SEC. 4. end insert   

end insert

begin insert Section 12709 of the end insert begin insert Business and Professions Code end insert begin insert ,
as added by Section 6 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.

(b) This section shall become operative on January 1, begin delete 2019. end delete
begin insert 2020. end insert

begin delete SEC. 3. end delete
begin insert SEC. 5. 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 department. end delete begin insert State Treasury. 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 begin delete with the department. end delete begin insert in the State Treasury, or
in a state depository bank approved by the Treasurer. end insert

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

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

(1) Illegal recycling begin delete operations. end delete begin insert operations, in which a junk
dealer or recycler does not possess any of the following: end insert

begin insert

(A) A current business license.

end insert begin insert

(B) A stormwater permit, application for a stormwater permit,
or a statement indicating that the applicant has either filed an
application for a stormwater permit or is not required to obtain
a stormwater permit.

end insert begin insert

(C) A weighmaster’s license issued pursuant to Chapter 7
(commencing with Section 12700) of Division 5 of the Business
and Professions Code.

end insert

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

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

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

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

begin insert

(e) (1) After deduction of the department’s actual and necessary
administrative costs, moneys in the fund shall be expended for the
exclusive purpose of enhancing the capacity of the department to
serve as the lead law enforcement agency in deterring,
investigating, and prosecuting illegal recycling operations, and
metal theft and related recycling crimes.

end insert begin insert

(2) Moneys in the fund may be expended for the purpose of
enabling the department to enter into partnerships with local law
enforcement agencies, regional task forces, or district attorneys.

end insert

14190.25.  

(a)  begin insert (1) end insert begin insert   end insert The department shall establish begin insert and
administer end insert the Metal Theft Task Force Program. begin delete Administration
of the overall program and the evaluation and monitoring of all
grants made pursuant to this title shall be performed by the
department. The end delete

begin insert (2) end insert begin insert   end insert begin insert The end insert department may enter into an agreement with any state
agency for the purpose of administering the begin delete program and the
evaluation and monitoring of all grants made pursuant to this title. end delete
begin insert program. end insert

begin delete

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

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

end delete begin insert

(b) (1) The program shall be designed to enhance the capacity
of the department to serve as the lead law enforcement agency in
the investigation and prosecution of illegal recycling operations
and metal theft and related recycling crimes.

end insert begin insert

(2) The department shall consult at least twice per calendar
year with pertinent recycling trade associations, including, but
not limited to, the Institute of Scrap Recycling Industries,
California Chapter and the California Metal Coalition, to
determine the best allocation of resources, for purposes of the
program, from an industry perspective, in preventing metal theft,
with an emphasis on eliminating illegal recycling operations from
the state.

end insert begin insert

(c) The department may enter into partnerships with local law
enforcement agencies, regional task forces, or district attorneys.
For purposes of this title, “partnership” means a collaborative
effort involving financial contributions by the department to
achieve the goals of the program established by this title.

end insert

begin delete

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.

(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.

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 may 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

end delete

begin insert

begin insert 14190.30. end insert   

end insert

begin insert No end insert later than December 31, begin delete 2019, end delete begin insert 2018, end insert 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 begin insert illegal
recycling operations, and end insert metal theft and related recycling crimes.
The report shall begin delete be based on each annual report submitted to the
department pursuant to subdivision (b). end delete begin insert include, but be not limited
to, all of the following information: end insert

begin insert

(a) The number of metal theft and related recycling crime cases
filed.

end insert begin insert

(b) The number of metal theft and related recycling crimes cases
investigated.

end insert begin insert

(c) The number of victims involved in the cases reported.

end insert begin insert

(d) The number of convictions obtained.

end insert begin insert

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

end insert begin insert

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

end insert begin insert

(g) An accounting of moneys received and expended in each
program year, commencing with 2016, which shall include all of
the following:

end insert begin insert

(1) The amount of moneys received and expended by the
department.

end insert begin insert

(2) The use to which those moneys were put, including payment
of salaries and benefits, operating expenses, equipment purchases,
and allowable expenditures.

end insert begin insert

(3) Any other relevant information requested.

end insert

begin delete 14190.45. end delete
begin insert 14190.35. 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 14190.50. end delete
begin insert 14190.40. end insert   

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

begin delete 14190.55. end delete
begin insert 14190.45. end insert   

This title shall remain in effect only until begin delete December
31, end delete begin insert January 1, end insert 2020, and as of that date is repealed, unless a later
enacted statute, that is enacted before begin delete December 31, end delete begin insert Jan end insert begin insert uary 1, end insert
2020, deletes or extends that date.