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SB 1045
UNFINISHED BUSINESS
Bill No:
Author:
Amended:
Vote:
SB 1045
Emmerson (R)
8/16/12
21
SENATE JUDICIARY COMMITTEE: 5-0, 5/1/12
AYES: Evans, Harman, Blakeslee, Corbett, Leno
SENATE FLOOR: 37-0, 5/14/12
AYES: Alquist, Anderson, Berryhill, Blakeslee, Calderon, Cannella,
Corbett, Correa, De León, DeSaulnier, Dutton, Emmerson, Evans, Fuller,
Gaines, Hancock, Harman, Hernandez, Huff, Kehoe, La Malfa, Leno,
Lieu, Liu, Lowenthal, Negrete McLeod, Padilla, Pavley, Price, Rubio,
Simitian, Steinberg, Vargas, Walters, Wolk, Wright, Yee
NO VOTE RECORDED: Runner, Strickland, Wyland
ASSEMBLY FLOOR: 79-0, 6/25/12 (Consent) - See last page for vote
SUBJECT:
Metal theft: damages
SOURCE:
Eastern Municipal Water District
DIGEST: This bill provides that any junk dealer or recycler who
possesses a fire hydrant, a fire department connection, as specified, or a
backflow device or connection to that device or part of that device without a
prescribed written certification, from the agency or utility owning or
previously owning the material is liable to the agency or utility for the
wrongful possession of that material. The liability provided for by this bill
would be for the actual damages incurred by the agency or utility, including
the value and cost of replacing the material, labor costs, and the costs of
repairing any damage caused by the removal of the material. This bill
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additionally requires the court to also award exemplary damages of three
times the actual damages incurred by the agency or utility, with specified
exceptions. This bill also makes several legislative findings and
declarations.
Assembly Amendments (1) require a junk dealer or recycler to notify the
appropriate law enforcement agency by the end of the next business day
upon discovery that he/she has unknowingly taken possession of a fire
hydrant, fire department connection (including brass fittings and parts),
manhole cover or lid, or backflow device or connection (“prohibited metal
items”) as part of a load of otherwise nonprohibited materials without the
written certification required by this bill, (2) provide that written
confirmation, as defined, of notice to the appropriate law enforcement
agency shall relieve the junk dealer or recycler of liability to the public
utility or other agency for the possession of prohibited metal items owned or
previously owned by the utility or agency, and (3) establish that nothing in
this act is intended to create a basis for liability on the part of a junk dealer
or recycler to third parties for damages or injuries arising from the theft of
prohibited metal items, as specified above.
ANALYSIS: Existing law requires that every junk dealer and recycler, as
defined, keep a written record of all sales and purchases made in the course
of his/her business. Records must be kept for two years after making the
final entry of any purchase or sale of junk or scrap metals and alloys, as
defined. (Business and Professions Code (BPC) Sections 21605 and 21607.)
Existing law also requires that every junk dealer and recycler set out in the
written record required, specified information. (BPC Section 21606)
Existing law prohibits a junk dealer or recycler from providing payment for
nonferrous materials, as defined, unless specified requirements are met.
(BPC Section 21608.5)
Existing law defines junk dealer as any person engaged in the business of
buying, selling and dealing in junk, any person purchasing, gathering,
collecting, soliciting or traveling about from place to place procuring junk,
and any person operating, carrying on, conducting or maintaining a junk
yard or place where junk is gathered together and stored or kept for
shipment, sale or transfer. (BPC Section 21601)
This bill provides that any junk dealer or recycler who possesses a fire
hydrant, fire department connection, including, but not limited to, brass
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fittings and parts, manhole cover or lid or part of that cover or lid, or
backflow device or connection to that device or part of that device without a
written certification from the agency or utility owning or previously owning
the material shall be liable to the agency or utility for the wrongful
possession of that material.
This bill provides that the liability of the junk dealer or recycler in violation
of this bill is for the actual damages incurred by the agency or utility,
including the value of the material, the cost of replacing the material, labor
costs, and the costs of repairing any damage caused by the removal of the
material.
This bill also requires that the court award exemplary damages of three
times the actual damages incurred by the agency or utility, unless the court
decides that extenuating circumstances do not justify awarding these
exemplary damages.
This bill provides that a written certification shall be on the agency’s or
utility’s letterhead and shall certify both that the agency or utility has sold
the material described or is offering the material for sale, salvage, or
recycling, and that the person possessing the certification or identified in the
certification is authorized to negotiate the sale of that material.
This bill provides that a junk dealer or recycler who unknowingly takes
possession of one or more of the materials described above as part of a load
of otherwise nonprohibited materials without the written certification shall
notify the appropriate law enforcement agency by the end of the next
business day upon discovery of the prohibited materials. Written
confirmation of that notice shall relieve the junk dealer or recycler of
liability to the agency or utility for the possession of those materials.
The following definitions shall apply for purposes of this bill:
1. “Appropriate law enforcement agency” means, in the case of any
material described in subdivision (a) that is located within the territorial
limits of an incorporated city, the police chief of the city or his or her
designee, or, in the case of any material described in subdivision (a) that
is located outside the territorial limits of an incorporated city, the sheriff
of the county or his or her designee.
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2. “Written confirmation” means any confirmation received from the law
enforcement agency as electronic mail, facsimile, or other written
correspondence, including, but not limited to, a letter delivered in person
or by certified mail.
This bill provides that nothing in this bill is intended to create a basis for
liability on the part of the junk dealers and recyclers to third parties for
damages or injuries related to or arising from the theft of the materials
described in this section.
This bill makes specified legislative findings, including, among other things,
that theft of fire hydrants, manhole covers, and backflow devices has
significantly increased in recent years and represents very substantial, and
growing, health and safety issues.
FISCAL EFFECT: Appropriation: No Fiscal Com.: No Local: No
SUPPORT: (Verified 8/20/12)
Eastern Municipal Water District (source)
Association of California Water Agencies
California Association of Sanitation Agencies
California Professional Firefighters
California Special Districts Association
California State Sheriffs’ Association
California Water Association
City of Roseville
Contra Costa Water District
Desert Water Agency
East Bay Municipal Utility District
East Valley Water District
El Dorado Irrigation District
Friant Water Authority
Friant Water Authority
Irvine Ranch Water District
Lake Hemet Municipal Water District
Metropolitan Water District of Southern California
Newhall County Water District
Orchard Dale Water District
Rowland Water District
San Francisco Public Utilities Commission
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Scrap Recycling Industries
Upper San Gabriel Valley Municipal Water District
Walnut Valley Water District
ARGUMENTS IN SUPPORT: According to the author:
Under current law, metal recyclers are prohibited from accepting fire
hydrants for the purpose of recycling. Recyclers are also required to
obtain and keep a photograph, fingerprint, address, and vehicle license
plate number of the transporting vehicle that delivers the material.
Furthermore, payment for metal over a specific amount must be mailed
or paid after a given period.
To address this metal theft epidemic and strengthen current law, SB 1045
seeks to provide cities, counties, special districts, and private utility
companies with the additional tools they need to recover costs and
impose stiff civil penalties on thieves and recyclers who violate the law.
Specifically, SB 1045 would prohibit a junk dealer or recycler from
possessing manhole covers, backflow devices, and fire hydrants without
written certification on the letterhead of the public agency or utility that
owns or previously owned that material. As a result, this bill would
relieve junk dealers from the responsibility of determining whether or not
any of the three items in question are stolen since they will no longer be
eligible for recycling without an appropriate certification. SB 1045
would enable the agency or utility to recoup the cost of the stolen items
and offset repair and replacement costs, as well as be awarded exemplary
damages by the court of three times the actual damages as a deterrent to
metal theft.
ASSEMBLY FLOOR: 79-0, 06/25/12
AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Beall, Bill Berryhill,
Block, Blumenfield, Bonilla, Bradford, Brownley, Buchanan, Butler,
Charles Calderon, Campos, Carter, Cedillo, Chesbro, Conway, Cook,
Davis, Dickinson, Donnelly, Eng, Feuer, Fletcher, Fong, Fuentes,
Furutani, Beth Gaines, Galgiani, Garrick, Gatto, Gordon, Gorell, Grove,
Hagman, Halderman, Hall, Harkey, Hayashi, Roger Hernández, Hill,
Huber, Hueso, Huffman, Jeffries, Jones, Knight, Lara, Logue, Bonnie
Lowenthal, Ma, Mansoor, Mendoza, Mitchell, Monning, Morrell,
Nestande, Nielsen, Norby, Olsen, Pan, Perea, V. Manuel Pérez,
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Portantino, Silva, Skinner, Smyth, Solorio, Swanson, Torres, Valadao,
Wagner, Wieckowski, Williams, Yamada, John A. Pérez
NO VOTE RECORDED: Miller
RJG:mw 8/20/12 Senate Floor Analyses
SUPPORT/OPPOSITION:
SEE ABOVE
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