BILL ANALYSIS �
AB 2313
Page 1
ASSEMBLY THIRD READING
AB 2313 (Nestande and Olsen)
As Amended April 21, 2014
Majority vote
PUBLIC SAFETY 6-0 APPROPRIATIONS 15-0
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|Ayes:|Ammiano, Hagman, |Ayes:|Gatto, Bigelow, |
| |Jones-Sawyer, Quirk, | |Bocanegra, Bradford, Ian |
| |Stone, Waldron | |Calderon, Campos, Eggman, |
| | | |Gomez, Holden, Linder, |
| | | |Pan, Quirk, |
| | | |Ridley-Thomas, Wagner, |
| | | |Weber |
|-----+--------------------------+-----+--------------------------|
| | | | |
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SUMMARY : Creates the Metal Theft Task Force (MTTF) Program to
provide funding for local law enforcement agencies, as
specified, to combat metal theft and related recycling crimes.
Specifically, this bill :
1)Establishes the MTTF Fund within the State Treasury for the
purposes set forth in this bill.
2)Provides that the fund is to consist of moneys deposited into
it from the federal government, industry, and private sources,
and from fees collected pursuant to this bill.
3)Requires the fund to be administered by the Office of
Emergency Services (OES).
4)Provides that moneys distributed from the fund pursuant to
this bill 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:
a) The theft of metals, including, but not limited to,
nonferrous metals;
b) The purchase and recycling of stolen metals, including,
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but not limited to, recycled metal beverage containers, by
recyclers;
c) The transportation of stolen metals from this state to
another state;
d) The transportation of stolen metals from another state
to this state; and,
e) Unlicensed recycling operations.
5)Requires OES to establish the MTTF Program, to administer the
overall program, and to evaluate and monitor all grants made
pursuant to this bill.
6)Requires that moneys appropriated to OES for the program,
after deduction of OES' actual and necessary administrative
costs, to 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.
7)Allows agencies that receive moneys pursuant to the program to
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.
8)Requires OES to develop administrative procedures that
include, at a minimum, the following requirements for the
selection of agencies to receive a grant under this program:
a) That each agency seeking a grant submit a written
application to the department setting forth in detail the
proposed use of the grant funds;
b) That, if an applicant agency is a regional task force,
the task force is identified by a name that is appropriate
to the area that it serves and, in order to qualify for a
grant, it is comprised of local law enforcement and
prosecutors from at least two counties;
c) That 65% of each grant issued be dedicated to the
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investigation and prosecution of unlicensed junk dealers;
and,
d) That priority is given to applicant agencies in areas
with high rates of reported metal thefts.
9)Requires OES to develop specific guidelines for the selection
of agencies to receive a grant under the MTTF program. The
guidelines should include, at a minimum, the following: The
number of metal theft or related recycling crime cases filed
in the immediately preceding year; the number of metal theft
or related recycling crime cases investigated in the
immediately preceding year; the number of victims involved in
the cases filed; the total aggregate monetary loss suffered by
the victims, including damage caused by the theft; local
moneys available to assist the agencies; and the number of
licensed recycling facilities in the area.
10)Requires each agency awarded a grant under the MTTF program
during the previous funding cycle to, upon reapplication for
funds to OES in each successive year to submit a detailed
accounting of moneys received and expended in the immediately
preceding year, as specified.
11)Requires agencies receiving MTTF program funding to submit an
annual report to OES, as specified, and requires OES to
regularly review the effectiveness of the MTTF program in
deterring, investigating, and prosecuting metal theft and
related recycling crimes and submit a report to the
Legislature and Governor that is based on reports submitted to
OES by agencies. Requires OES, no later than December 31,
2019, to submit a comprehensive report to the Legislature on
the status and progress of the program, as specified.
12)Assesses a fee determined by OES not exceeding 1% of the
purchase price for each junk sale that involves the sale of
any scrap metals or alloys on the seller of junk for the
purpose of regulating that seller. Requires the fee to be
collected by junk dealers and recyclers, as those entities are
defined, at the time each sale is conducted, and submit it to
the Treasurer for deposit into the MTTF fund. Provides that
junk sales or transactions involving the sale of any scrap
metals or allows between junk dealers and recyclers are not
subject to the fee.
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13)Provides that the MTTF Program is not be implemented until
OES determines that sufficient moneys have been deposited in
the MTTF Fund to implement the provisions of this bill; that
OES is required to implement the provisions of this bill 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 bill;
and that OES may adopt regulations as needed to administer
provisions of this bill.
14)Provides that the provisions of this bill are to remain in
effect only until December 31, 2020 unless a later-enacted
statute deletes or extends that date.
15)Defines specified terms.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, unknown significant ongoing special fund costs,
likely in the millions of dollars, to administer and award
statewide law enforcement grants. The administrative costs
alone would be in the hundreds of thousands of dollars.
The bill specifies the program is contingent upon sufficient
funding from the MTTF Fund, which pursuant to this bill would be
primarily funded by an assessment of up to 1% of the purchase
price for each junk sale that involves the sale of any scrap
metals or alloys on the seller. The bill also authorizes the
deposit of federal, industry and private funds into the MTTF
Fund.
The author cites an extrapolation from the Ports of Long Beach
and L.A. that suggests a 1% assessment could result in as much
as $70 million.
COMMENTS : According to the author, "Metal theft continues to
grow in California despite numerous recent laws passed to combat
it. Clearly law enforcement needs more resources to deal with
the problem. AB 2313 would create the Metal Theft Task Force
within the DOJ which would distribute grants to the areas most
affected by metal theft for prosecution and investigation
efforts. These funds would be generated by a 1% fee on payments
received by sellers of scrap metal when brought to recycling
centers. This small fee could generate an estimated $35
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[million] to $70 [million] a year for law enforcement to
investigate metal thefts and prosecute recycling centers that
are knowingly accepting stolen metals. The unfortunate reality
of metal theft is the costs of repairing the damage done by
thieves is often exponentially higher than the value of the
scrap metal. Business, non-profits, schools and governments
agencies have all been victims. This would be hugely beneficial
for cleaning up the scrap recycling industry and would reward
recycling centers who follow the law by eliminating their
competitors who are not following the rules."
Please see the policy committee analysis for a full discussion
of this bill.
Analysis Prepared by : Shaun Naidu / PUB. S. / (916) 319-3744
FN: 0003646