HomeMy WebLinkAboutMINUTES - 07082008 - C.59 i
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TO: BOARD OF SUPERVISORS lv..• r `};°:,. Contra.
JOHN CULLEN o : `` :�;�
FROM: Costa_:;,�._, - �4
County Administrator
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DATE: July 8, 2008 CO- County
SUBJECT: SUPPORT POSITION on AB 844 (Berryhill): Scrap Metal Theft
SPECIFIC REQUfiST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUS'I IPICA710N
RECOMMENDATION
SUPPORT Assembly Bill 844 (Berryhill), a bill that requires junk dealers and recyclers to comply with
additional recordkeeping and identification procedures and new payment restrictions when
purchasing nonferrous materials, as defined, as recommended by Supervisor John Gioia.
.FISCAL IMPACT:
No fiscal impact on Contra Costa County.
BACKGROUND:
Contra Costa County 2008 State Legislative Platform contains the following policy:
#103. SUPPORT legislation that seeks to curb metal theft by making it easier for law enforcement
agencies to track stolen metals sold to scrap dealers through such means as requiring identification
from customers selling commonly stolen metals, banning cash transactions over a certain amount,
and requiring scrap dealers to hold materials they buy for a certain period of time before melting them
down or reselling them.
In recent years, scrap metal theft has increasingly become a public safety issue for a number of
California counties and cities. Stolen items include copper tubing, brass grave markers and platinum-
laced catalytic converters. A large portion of these thefts are linked to individuals who.steal the metal
to fund illegal activities, such as buying drugs.
CONTINUED ON ATTACH x YES SIGNA'I'UIZ9ECOMMI
RECOMMFiNDATION OP COUNTY ADMINISTRATOR NDA'II )N Or BOARD CO. FEE
APPROW, OTHER
SIGNA'I-URf:(S):
ACTION OP BOARD ON APPROVED AS RECOMMENDED Ol' :R
VOTF OF SUPI::RVISORS I I1ERI"BY CERTIFY TI IAT TI[IS IS A TRUE AND CORRI-:CI•COPY
OF AN ACTION TAKEN AND ENTERED ON MINUTES 01: '1'111:
BOARD OF SUPERVISORS ON THE DATE SHOWN.
UNANIMOUS(ABSENT i/ )
AYES: NOES:
ABSI�NT: ABSTAIN: _
Contact:
I.. DeLancy 5-1097
Cc: ATTESTED
1,. DeLaney,C'AO's Office JOII JI.I.E ,C:'I.ERK OP'I'l-Ifi 1.30AIZD OFSIJIIEIZVISOIZS
Supervisor,lohn Goia's officc
BY: A DEPUTY
AB 844 (Scrap metal theft)—p. 2
July 8, 2008
AB 844 is sponsored by the California Farm Bureau (CFB) and the California State Sheriffs'
Association (CSSA). The CFB indicates that over $6 million worth of metal was reported stolen in the
eight Central Valley counties in 2006. According to the Author, the Agricultural Crime Technology and
Operations Network Project reports a 100% increase in metal theft incidents in 2005, and a 400%
increase in thefts in 2006. Irrigation pumps are commonly targeted by thieves for their copper wire
and because. of copper's high value. (A recent article in the Fresno Bee, dated May 6, 2007, noted
that copper prices have increased 400% and aluminum prices have more than doubled in the last five
years.)
. .A March 14, 2007, article in the Los Angeles Times, "Building Sites Leave Copper Thieves Well-
Connected," points out how thieves' appetite for methamphetamines has fueled the growing problem
of copper and other metals being stolen from telephone and power lines, construction sites, power
generators, air conditioning units on top of schools, and irrigation pipes, among other sources. CFB
asserts that this problem is a statewide problem and needs a statewide fix and that this measure will
"achieve a long lasting solution to the problem by making it more difficult for criminals to sell stolen
metal."
According to the Author, law enforcement agencies around the state have concluded that the
common denominator among metal thieves is that they are drug users looking for quick, easy money.
By requiring all purchases by junk dealers and recyclers of the specified metals to be paid by check
with a 3-day holding period will not only create a paper trail of the transaction but will also make metal
theft less appealing to those looking to obtain quick cash. Also the photo requirement and requiring
the address and copy of the seller's identification will act as a deterrent and will assist law
enforcement in their investigations.
Both AB 844 (Berryhill) and SB 691 (Calderon) have been amended as identical comprehensive bills
that will address the scrap metal theft problem statewide. In addition to what exists in current law, SB
691 and AB 844 call for:
• Thumbprints of those selling copper, copper alloys, aluminum and stainless steel;
• Government ID requirement;
• Suspension or revocation of business licenses for recyclers who break the law;
• Increased fines for recyclers who break the law;
• Three-day hold on checks and cash;
• Proof of current address
Additionally, these bills make an allowance for ordinances to be passed at the local level in rare
circumstances that require a regionally-specific solution. More than a dozen counties across the
state have passed their own metal theft ordinances, placing restrictions on the recycling centers that
process and pay cash for metal. Recyclers have fought many of these local ordinances, saying they
put undue restrictions on small business owners.
AB 844 is awaiting a hearing date in Senate Environmental Quality. SB 691 is pending in Assembly
Appropriations.
Support (May 29, 2008 version of the bill):
California Farm Bureau Federation (Sponsor), California State Sheriffs'Association (Sponsor), Association of California
Insurance Companies, Azusa Utility Board/City Council, Agricultural Council of California, California Agricultural
Commissioners and Sealers Association, California Association of Pest Control Advisers, California Association of.
Winegrape Growers, California Building Industry Association, California Cable Telecommunications Association,
California Central Valley Flood Control Association, California Chapter of the American Fence Contractors Association,
California Citrus Mutual, California Fence Contractors Association, California Professional Firefighters Association,
California State Firefighters Association, City of Beaumont, City of Bellflower, City of Concord, City of Costa Mesa, City of
Fairfield, City of Fullerton, City of Lakewood, City of Napa, City of Novato, City of Pittsburg, City of Vista, City of Walnut
Creek, Desert Water Agency, East Valley Water District, Eastern Municipal Water District, Perris EI Dorado Irrigation
District, Engineering Contractors Association, Flasher/Barricade Association, Fresno County Farm Bureau, Golden State
Builders Exchange, Greater Riverside Chambers of Commerce, Imperial Irrigation District, Inland Action, Kern County
Water Agency, League of California Cities, Liberty Mutual Group, Marin Builders Exchange, Modesto Irrigation District,
Pacific Gas and Electric Company (PG&E), Peace Officers Research Association of California, Pittsburg Police
Department, Riverside County District Attorney, Rod Pacheco, Riverside County Farm Bureau, Inc, Riverside County
Sheriff, Stanley Sniff, Jr., San Bernardino County Board of Supervisors, San Diego County Board of Supervisors, Sempra
Energy, Southern California Edison, Valley Ag Water Coalition
Opposition (May 29, 2008 version of the bill):
Californians Against Waste, California Chapter of the Institute of Scrap Recycling Industries (ISRI), Several individuals
AMENDED IN SENATE JUNE 25, 2008
AMENDED IN SENATE JUNE 1992008
AMENDED IN SENATE MAY 29, 2008
AMENDED IN SENATE APRIL 30, 2008
AMENDED IN SENATE JUNE 26, 2007
AMENDED IN SENATE JUNE 19, 2007
AMENDED INASSEMBLY JUNE 1, 2007
AMENDED IN ASSEMBLY MAY 1, 2007
AMENDED IN ASSEMBLY APRIL 9, 2007
CALIFORNIA LEGISLATURE-200]-OH REGULAR SESSION .
ASSEMBLY BILL No. 844
Introduced by Assembly Members Berryhill and Maze
(Principal coauthors: Assembly Members Galgiani and Garrick)
(Principal coauthors: Senators Calderon, Cogdill, and Maldonado)
(Coauthors: Assembly Members Adams, Aghazarian, Anderson,
Arambula,Benoit,Blakeslee, Cook,DeVore, Emmerson,Fuller,
Gaines,Garcia,Horton,Houston,Huff,Jeffries,Keene,La M.alfa,
Ma, Mullin, Nakanishi, Niello, Parra, Plescia, Sharon Runner,
Salas, Silva,.Smyth, Spitzer, Strickland, Tran, Villines, and
Walters)
(Coauthors: Senators Floret.Del7ham, Florey, and Yee)
February 22, 2007
An act to amend Sections 21606,21.606.5,21608,and 21609 of,and
to add Section 21608.5 to, the Business and Professions Code,relating
90
s�
AB 844 —2 to junk dealers, and declaring the urgency thereof, to take effect
immediately.
LEGISLATIVE COUNSEL'S DIGEST
AB 844,as amended,BerryhiIL Junk dealers and recyclers:nonferrous
material.
Existing law requires junk dealers and recyclers, as defined, to keep
written records of all sales and purchases made in the course of their
business. Existing law requires these records to include, among other
things,the place and date of each sale or purchase of junk,a description
of the item of junk, and the personal and vehicle information of the
person selling, purchasing, or transporting the junk. Existing law
exempts certain purchases of scrap metals by a junk dealer or recycler
from these provisions. A violation of the provisions regulating junk
dealers and recyclers is a crime.
This bill would require a junk dealer or recycler to report the
information included in those written records to the chief of police or
sheriff, as specified, upon request and on a monthly basis. The bill
would authorize the chief of police or sheriff to request weekly reports
for no more than a 2-month period, except as specified, if there is an
ongoing investigation of the junk dealer or recycler concerning possible
criminal activity.
This bill would prohibit a junk dealer or recycler from providing
payment for nonferrous material,as defined,unless the payment is made
by cash or check, the check is Inailed or the cash or check is provided
no earlier than 3 days after the date of sale, and the dealer or recycler
obtains certain identifying information, as specified, to be retained by
the dealer or recycler for a certain period of time.The bill would specify
an exception to the payment by cash or check requirement and provide
that these requirements do not apply to the redemption of nonferrous
materials of a certain value at a recycling center,as specified,or to coin
dealers or automobile dismantlers. The bill would also prohibit a city,
county, or city and county from adopting an ordinance related to junk
dealer or recycler transactions involving nonferrous material, except
under specified circumstances.
Under existing law, aknowing and willful violation of the
recordkeeping requirements applicable to junk dealers and recyclers is
punishable by specified fines, by imprisonment in the countyjail for a
specified period of time,or by both that fine and'imprisonment.Existing
90
�J
—3-- AB 844
law requires that, for a 3rd or subsequent violation, the court order the
defendant to stop engaging in business as a junk dealer or recycler for
a period of 30 days.
This bill would increase the minimum fines for those violations, as
specified, and would also require the court, for a 3rd or subsequent
violation, to order the defendant to stop engaging in business as a junk
dealer or recycler for a period of not less than one year. .
Under existing law,when a peace officer has probable cause to believe
that property in the possession of a junk dealer or recycler is stolen,the
peace officer may place a hold on that property. Existing law requires
a court, upon conviction of a person for the theft of that property, to
order the defendant to pay the reasonable costs for the storage of the
property.
This bill would also require the court to order the defendant to pay
the victim for the value of the property stolen and any reasonable
collateral damage caused in the commission of the theft.
Because a violation of this bill's provisions would be a crime,the bill
would impose a state-mandated local program.
The California Constitution requires the state to reimburse local .
agencies and school. districts for certain costs mandated by the state.
Statutory provisions establish procedures for making that reimbursement.. .
This bill would provide that no reimbursement is required by this act
for a specified reason.
This bill x-ould declare that it is to take effect invnediately as an
ui getx,y statute.
Vote: titajer�-t 3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
The people of the State of California do enact as follotivs:
1 SECTION 1. Section 21606 of the Business and Professions
2 Code is amended to read:
3 21.606. (a) Every junk dealer and every recycler shall set out
4 in the written record required by this article all of the following:
5 (1) The place and date of each sale or purchase of junk made
6 in the conduct of his or her business as a junk dealer or recycler.
7 (2) The name, valid driver's license number and state of issue
8 or California-issued identification card number,and vehicle license
9 number including the state of issue of any motor vehicle used in
90.
AB 844 —4—
1 transporting the junk to the junk dealer's or rccycicr's place of
2 business.
3 (3) The name and address of each person to whom junk is sold
4 or disposed of, and the license number of any motor vehicle used
5 in transporting the junk from the junk dealer's or rccycler's place
6 of business.
7 (4) A description of the item or items of junk purchased or sold,
8 including the item type and quantity, and identification number,
9 if visible.
10 (5) A statement indicating either that the seller of the junk is
11 the owner of it, or the naive of the person he or she obtained it
12 from, as shown on a signed transfer document.
13 (b) A.person who makes, or causes to be made, a false or
14 fictitious statement regarding any information required by this
15 section is guilty of a misdemeanor.
16 (c) (1) Every junk dealer and everyrecycler shall report the
17 information required under subdivision (a) to the chief of police,
18. if the dealer's or recycler's business is located in a city, or to the
19 sheriff, if the dealer's or recycler's business is located in an
20 unincorporated part of a county,upon request of the chief of police
21 or sheriff and on a monthly basis, except as provided in paragraph
22 (2).
23 (2) The chief of police. or sheriff may request the report
24 described in this section on a weekly basis if there is an ongoing
25 investigation of the junk dealer or recycicr concerning possible
26 criminal activity.The chief of police or sheriff may request weekly
27 reports for no more than a two-month period unless the
28 investigation of the junk dealer or recycicr continues and the chief
29 of police or sheriff snakes a subsequent request for weekly reports
30 for an additional two-month period or part thereof.
31 SEC.2. Section 21606.5 oftlic Business and Professions Code
32 is amended to read:
33 21606.5. Every junk dealer or recycicr shall, during, normal
34 business hours, allow periodic inspection of any premises
35 . maintained and any junk thereon for the purpose of determining
36 compliance with the recordkeeping requirements of this article,
37 and shall during those hours produce his or her records of sales
38 and purchases, except as provided in paragraph(3)of subdivision
39 (a)of Section 21608.5,and all property purchased incident to those
90
-5— AB 844
1 transactions which is in the possession of the junk dealer or.recycler
2 for inspection by any of the following persons:
3 (a) An officer holding a warrant authorizing him or her to search .
4 for personal property.
5 (b) A person appointed by the sheriff of a county or appointed
6 by the head of the police department of a city.
7 (c) An officer holding a court order directing him or her to
8 examine the records or property.
9 SEC. 3. Section 21608 of the Business and Professions Code
10 is amended to read:
11 21608. (a) A junk dealer or recycler who fails in any respect
12 to keep the written record required by this article, or to set out in
13 that written record any matter required by this article to be set out
14 therein, is guilty of a misdemeanor.
15 Everyjunk dealer or recycler who refuses,upon demand pursuant
16 to Section 21606.5, to exhibit the written record required by this
17 article, or who destroys that record within two years after making
18 the final entry of a purchase or sale of junk therein, is guilty of a
19 misdemeanor.
20 (b) Any knowing and will.ful. violation of subdivision (a) shall
21 be punishable as follows:
22 (l) Fora first offense, by a fine of not less than one thousand
23 dollars($1,000),or by imprisonment in the county jail for not less
24 than 30 days, or by both that fine and imprisonment.
25 (2) For a second offense,by a fine of not less than two thousand
26 dollars($2,000),or by imprisonment in the county jail for not less
27 than 30 days, or by both that fine and imprisonment. In addition
28 to any other sentence imposed pursuant to this paragraph,the court
29 may order the defendant to stop engaging in business as a junk
30 dealer or recycler for a period not to exceed 30 days.
31 (3) For a third or any subsequent offense, by a fine of not less
32 than four thousand dollars ($4,000), or by imprisonment in the
33 county jail for not less than six months, or by both that fine and
34 imprisonment-In addition to any other sentence imposed pursuant
35 to this paragraph, the court shall order the defendant to stop
36 engaging in business as a junk dealer or recycler for not less than
37 one year.
38 SEC. 4. Section 21608.5 is added. to the Business and
39 Professions Code, to read:
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AB 844 —6-
1
6-1 21608.5. (a) A junk dcalcr or recycler in this state shall not
2 provide payment for nonferrous material unless, in addition to
3 meeting the written record requirements of Sections 21605 and
4 21606, all of the following requirements are met:
5 (1) The payment for the material is made by cash or check.The
6 check may be mailed to the seller at the address provided pursuant
7 to paragraph(2)or the cash or check may collected by the seller
8 from the junk dealer or recycler on the third business day after the
9 date of sale.
10 (2) (A) Except as provided in subparagraph(B);the junk dealer
11 or recycler obtains a copy of the valid driver's license of the seller
12 containing a photograph and an address of the seller or a copy of
13 a state or federal government-issued identification card containing
14 a photograph and an address of the seller.
15 (B) If the seller prefers to have the check for the.material mailed
16 to an alternative address, other than a post office box, the junk
17 dealer or recycler shall obtain a photograph or video.of the seller,
18 or a copy of a driver's license or identification card described in
19 ' subparagraph(A),and a gas or electric utility bill addressed to the..
20 . seller at that alternative address with a payment due date no more .
21 than two months prior to.the date of sale. For purposes of this
22 paragraph,"alternative address"means an address that is different
23 from the address appearing on the seller's driver's license or
24 identification card.
25. ., (C) The junk dealer or recycler obtains a photograph or video
26 . of the nonferrous material being purchased.
27 (D) The junk dealer or recycler shall preserve the information
28 obtained pursuant to this paragraph for a period of two years after
29 the date of sale. -
30 (3) The junk dealer or recycler obtains a thumbprint of the seller,
31 as prescribed by the Department of Justice. The junk dealer or
32_ rccycler shall keep.this thumbprint with the information obtained
33 under paragraph.(2) and shall preserve the thumbprint in either
34 hard copy or electronic format for a period of two years after the
35 date of sale.The junk dealer or recycler shall make the thumbprint
36 available to a person listed in Section 21606.5 only if that person
37 has probable cause to believe that property in the possession of
38 the junk. dealer or rccycler has been stolen. The seller shall .
39 acknowledge this disclosure requirement in writing.
90
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1 (b) Paragraph (1) of subdivision (a) shall not apply if, during
2 any three-month.period commencing on or after the effective date
3 of this section, the junk dealer or recycler completes five or more
.4 separate transactions per'month,on five or more separate days per
5 month,with the seller and,in order for paragraph(1)of subdivision
6 (a) to continue to be inapplicable, the seller must continue to
7 complete five or in.'ore separate transactions per month with the .
8 junk dealer or recycler.
9 (c) This section shall not apply if, on the date of sale, the junk
10 dealer or recycler has on file or receives all of the following
11 information:
12 (1) The name,physical business address,and business telephone
13 number of the seller's business.
14 (2) The business license number or tax identification number
15 of the seller's business.
16 (3) A copy of the valid driver's license of the person delivering
17 the nonferrous material on behalf of the seller to the junk dealer
18 or the recycler.
19 . (d) This section shall not apply to the redemption of nonferrous
20 material having a value of not more than twenty dollars ($20) in
21 a single transaction, when the primary purpose of the transaction
22 is the redemption of beverage containers under the California
23 Beverage Container Recycling and Litter Reduction Act, as set
24 forth in Division 12.1 (commencing with Section 14500) of the
25 Public Resources Code.
26 (c) This section shall not apply to coin�dealcrs or to automobile
27 . dismantlers, as defined in Section 220 of the Vehicle Code.
28 (f) For the purposes of this section,"nonferrous material"means
29 copper, copper alloys, stainless steel, or aluminum, but docs not
30 include beverage containers, as defined in Section 14505 of the
31 Public Resources Code, that are subject to a redemption payment
32 pursuant to Section 14560.of the Public Resources Code.
33 (g) This section is intended to occupy the entire field of law
-34 related to junk dealer or recycler transactions involving nonferrous
35 material, as definedin this s .tiot . However, a city or county
36 ordinance, or a city and county ordinance, relating to the subject
37 matter of this section is not in conflict with this section if the -
38 ordinance is passed by a two-thirds vote and it can be demonstrated
39 by clear and convincing evidence that the ordinance is both
40 necessary and addresses a unique problem within and specific to
90
AB 844
1 the jurisdiction of the ordinance that cannot effectively be
2 addressed under this section.
3 SEC. 5. Section 21609 of the Business and Professions Code
4 is amended to read:
5 21609. (a) Whenever a peace officer has probable cause to
6 believe that property in the possession of a junk dealer or recycler
7 is stolen,in lieu of seizing the property,the peace officer as defined
8 in subdivision (b) of Section 21606.5, at his or her option, may
9 place a hold on the property for a period not to exceed 90 days.
10 When a peace officer places a hold on the property, the peace
11. officer shall give the junk dealer or recycler a written notice at the
12 time the hold is placed,describing the item or items to be held plus
13 the case number. During that period the junk dealer or recycler
14 shall not release or dispose of the property, except pursuant to a
15 court order or upon receipt of a written authorization signed by a
16 peace officer who is a member of the law enforcement agency of
17 which the peace officer placing the hold on the property is a
18 member. Except as specifically set forth in this section, a junk
19 dealer or recycler shall not be subject to civil liability for
20 compliance with this section.
21 (b) Whenever property that is in the possession of a junk dealer
22 or recycler is subject to a hold and the property is required by a
23 peace officer in a criminal investigation,the junk dealer or recycler,
24 upon reasonable notice, shall produce the property at reasonable
25 times and places or may deliver the property to any peace officer
26 upon the request of any peace officer who is a member of the law
27 enforcement agency of which the peace officer placing the hold
28 on the property is a member.
29 (c) Whenever property that is in the possession of a junk dealer
30 or recycler is subject to a hold and the property is no longer
31 required for the purpose of criminal. investigation, the law
32 enforcement agency that placed the hold on the property shall
33 undertake the following:
34 (1) With respect to the property being held, if the law
35 enforcement agency has no knowledge of the property on hold
36 being reported as stolen,the property shall be released upon.written
37 notice to the junk dealer or recycler. The notice shall be provided
38 in a timely fashion.
39 (2) If the law enforcement agency has knowledge that the
40 property has been.reported stolen, the law enforcement agency
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-9— AB 844
1 shall notify the person who reported the stolen property of the
2 name and address of the junk dealer or recycler holding the
3 property and authorize the release of the property to that person.
4 The law enforcement agency.that placed the property on hold
5 shall release the hold after 60 days has elapsed following the
6 delivery of the notice to the person who reported the property
7- stolen.
8 (3) If a victim seeks to recover property that is subject to a hold,
. 9 the junk dealer or recycler shall advise the victim of the name and
10 badge number of the peace officer who placed the hold on the
11 . property and the name of the law enforcement agency of which
1.2 the officer is a member. If the property is not-required to be held
13 pursuant to a criminal prosecution the hold shall be released.
14 (d) Upon conviction of a person for the theft of property placed
15 on hold pursuant to this section.,the court shall order the defendant
16 to do both of the following:
17 (1).Pay the junk dealer or recycler reasonable costs. for the
18 storage of the property.
19 (2) Pay the victim for both the value of the property stolen and
20 any reaso_ nable collateral damage caused in the commission of the
21 theft.
22 SEC. 6. No reimbursement is required by this act pursuant to
23 Section 6 of Article XIIIB of the California Constitution because
24 the only costs that may be incurred by a local agency or school
25 district will be incurred because this act creates a new crime or
26 infraction,eliminates a crime.or infraction,or changes the penalty
27 for a crime or infraction,.within the meaning of Section 17556 of
28 the Government Code,or changes the definition of a crime within
29 the meaning of Section 6 of Article X111 B of the California
30 Constitution.
31 SE,C. 7. This act is an urgency statzrte necessaty for the
32 itnmediate preservation(�fthe public peace, health, or sgje, v lvithin
33 the meaning of Article IV of the Constitution and.shall go into
34 immediate effect. TI1e facts COnS'tltutlilg rile 17L'Cc'.S.sit1'are:
35 In of-der to addt'e3s stateivlde concerns related to public.safett;,
36 and to decrease the rising theft of nonferrous materials, it is
37 necessan?that this act take effect hnmediateh�
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