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Home My WebLink About52-Council Office CITY OF SAN BERNARDINO . REQUEST FOR COUNCIL ACTION From: Councilman Neil Derry Fourth Ward Subject: Resolution of the Mayor and Common Council in support of AS 844 to prohibit junk dealers or recyclers from providing payment for nonferrous material, as defined, unless, except as specified, the payment is made by check Dept. Council Office Date: August 17, 2007 MCC Date: August 20, 2007 Synopsis of Previous Council Action: Recommended Motion: That resolution be adopted. Jfd (!)~ Signature Contact Person: Councilman Neil Derry Phone: 5178 Supporting Data Attached: Ward: FUNDING REQUIREMENTS: Amount: Source: (Acct. No.) (Acct. Descriotion) Finance: Council Notes: Agenda Item No. S-~ g 'J-D -07 CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION STAFF REPORT RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO IN SUPPORT OF AB 844 TO PROHIBIT JUNK DEALERS OR RECYCLERS FROM PROVIDING PAYMENT FOR NONFERROUS MATERIAL, AS DEFINED, UNLESS, EXCEPT AS SPECIFIED, THE PAYMENT IS MADE BY CHECK. On Friday, August 17, 2007, a meeting was held at the San Bernardino Area Chamber of Commerce to discuss the issue of metal theft in San Bernardino. This crime has significantly impacted local businesses, schools, churches, local government facilities, and all sectors of the community. A single act of metal theft upon a business can cause damages requiring thousands of dollars in repair and replacement costs. Many buildings are repeatedly struck by this crime. Since the bulk of metal illegally obtained is taken to junk dealers and recyclers in exchange for cash, enforceable restrictions must be placed upon junk dealers and recyclers to deter and prohibit the acceptance of illegally obtained metals at their facilities. The problem of metal theft is a statewide problem. AB 844, introduced by Assemblymember Berryhill, would prohibit a junk dealer or recycler from providing payment for nonferrous material unless the payment is made by check. If passed and signed into law, this bill would provide all of the cities in California with another tool to combat the problem of metal theft. Councilman Neil Derry recommended that the City of San Bernardino adopt a resolution in support of AB 844. V/02 0/c 00-7 i 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 " RESOLUTION NO. RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO IN SUPPORT OF AD 844 TO PROmBIT JUNK DEALERS OR RECYCLERS FROM PROVIDING PAYMENT FOR NONFERROUS MATERIAL, AS DEFINED, UNLESS, EXCEPT AS SPECIFIED, THE PAYMENT IS MADE BY CHECK. WHEREAS, the crime of metal theft has significantly impacted all sectors of the City including local businesses, schools, churches, government buildings, hospitals, and infrastructure; and WHEREAS, the high cost of replacing stolen equipment and repairing damages caused by metal theft has placed a heavy fmancial burden on local businesses and all sectors of society throughout the state; and WHEREAS, since the bulk of the illegally obtained metal is taken to junk dealers and recyclers in exchange for cash payments, restrictions must be placed upon junk dealers and recyclers to deter and prohibit the acceptance of illegally obtained metals; and WHEREAS, AB 844 would prohibit a junk dealer or recycler from providing payment for nonferrous material, as defined, unless, except as specified, the payment is made by check, the check is provided no earlier than 3 days after the date of sale, and the dealer or recycler obtains certain information, as specified, to be retained by the dealer or recycler for a certain period of time; and NOW, THEREFORE, be it resolved that the City of San Bernardino supports AS 844, as amended, Berryhill. III III III III III 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 '17 18 19 20 2007 " RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO IN SUPPORT OF AB 844 TO 'PROHIBIT A JUNK DEALER OR RECYCLER FROM PROVIDING PAYMENT FOR NONFERROUS MATERIAL, AS DEFINED, UNLESS, EXCEPT AS SPECIFIED, THE PAYMENT IS MADE BY CHECK. I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and Common Council of the City of San Bernardino at a meeting thereof, held on the _ day of , 2007, by the following vote, to wit: Council Members: AYES NAYS ABSTAIN ABSENT ESTRADA BAXTER BRINKER DERRY KELLEY JOHNSON MC CAMMACK Rachel G. Clark, City Clerk The foregoing resolution is hereby approved this day of 21 22 23 24 25 26 27 28 Patrick J. Morris, Mayor City of San Bernardino Approved as to form: JAMES F. PENMAN City Attorney AB 844 Assembly Bill - AMENDED Page 1 of3 BILL NUMBER: AB 844 BILL TEXT AMENDED AMENDED IN SENATE JUNE 26, 2007 AMENDED IN SENATE JUNE 19, 2007 AMENDED IN ASSEMBLY JUNE 1, 2007 AMENDED IN ASSEMBLY MAY 1, 2007 AMENDED IN ASSEMBLY APRIL 9, 2007 INTRODUCED BY Assembly Members Berryhill and Maze (Principal coauthor: Assembly Member Galgiani) (Principal coauthors: Senators Cogdill and Maldonado) (Coauthors: Assembly Members Emmerson, Garcia, Ma, and Parra) (Coauthor: Senator Denham) FEBRUARY 22, 2007 An act to add Sections 21608.5 and 21610 to the Business and Professions Code, relating to junk dealers. LEGISLATIVE COUNSEL'S DIGEST AB 844, as amended, Berryhill. 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 specified information, including, 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 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 these provisions regulating junk dealers and recyclers is a crime. This bill would prohibit a junk dealer or recycler from providing payment for nonferrous material, as defined, unless, except as specified, the payment is made by check, the 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 that this provision does not apply to the redemption of nonferrous materials of a certain value at a recycling center, as specified, or to coin dealers or automobile recyclers. The bill would also prohibit a city, county, city and county, or a state agency from adopting reporting, identification, or payment requirements for transactions by junk dealers or recyclers involving nonferrous material, except as specified. Because a violation of the bill's provisions would be a crime, this 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. Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 21608.5 is added to the Business and http://info.sen.ca.gov/pub/07 -08/bill/asmlab _080 1-0850/ab _844_ bill_ 20070626_ amended _sen _ v9... 8/17/2007 AB 844 Assembly Bill - AMENDED Page 2 00 Professions Code, to read: 21608.5. (a) A junk dealer or recycler in this state shall not provide payment for nonferrous material unless, in addition to meeting the written record requirements of Sections 21605 and 21606, all of the following requirements are met: (1) The payment for the material is made by check. (2) The junk dealer or recycler provides the check no earlier than three business days after the date of sale. The check may be mailed to the seller or may be collected by the seller from the junk dealer or recycler. (3) The junk dealer or recycler obtains a photograph and an address of the seller, or a copy of the valid driver'S license of the seller containing a photograph and an address of the seller, or a copy of a state or federal government-issued identification card containing a photograph and an address of the seller. The junk dealer or recycler shall preserve the photograph and the address or the copies obtained pursuant to this paragraph for a period of two years after the date of sale. (b) The requirements of paragraphs (1) and (2) of subdivision (a) shall not apply if, during any three-month period commencing on or after the effective date of this section, the junk dealer or recycler completes five or more separate transactions per month with the seller, and in order for the requirements of paragraphs (1) and (2) of subdivision (a) to continue to be inapplicable, the seller must continue to complete five or more separate transactions per month with the junk dealer or recycler. (c) The requirement of paragraph (2) of subdivision (a) shall not apply if, in addition to obtaining the identifying information required in paragraph (3) of subdivision (a), the junk dealer or recycler obtains a photograph of the nonferrous material being purchased. This photograph shall be preserved for a period of two years after the date of sale. (d) This section shall not apply if, on the date of sale, the junk dealer or recycler has on file or receives all of the following information: (I) The name, physical business address, and business telephone number of the seller's business. (2) The business license number or tax identification number of the sellerls business. (3) A copy of the valid driver's license of the person delivering the nonferrous material on behalf of the seller to the junk dealer or the recycler. (e) This section shall not apply to the redemption of nonferrous material having a value of not more than twenty dollars ($20) in a single transaction, when the primary purpose of the transaction is the redemption of beverage containers under the California Beverage Container Recycling and Litter Reduction Act, as set forth in Division 12.1 (commencing with Section 14500) of the Public Resources Code. For purposes of this subdivision, "primary purpose" means the value of the beverage containers being redeemed is greater than the value of the nonferrous material being sold. (f) This section shall not apply to coin dealers or automobile recyclers. (g) For the purposes of this section, "nonferrous material" means copper, copper alloys, stainless steel, or aluminum but does not include beverage containers, as defined in Section 14505 of the Public Resources Code. SEC. 2. Section 21610 is added to the Business and Professions Code, to read: 21610. ~ - This article shall not prohibit the enactment, amendment, or enforcement of an ordinance or resolution by a city, county, or city and county relating to junk dealers or recyclers that is consistent with this article, except that no city, county, city and county, or state http://info.sen.ca.gov/pub/07 -08/bill/asm/ab _ 0801-0850/ab _844_ bill_ 20070626 _amended _ sen _ v9... 8/17/2007 AB 844 Assembly Bill - AMENDED Page 3 of3 agency shall adopt reporting, identification, or payment requirements for transactions by junk dealers or recyclers involving nonferrous material as defined in Section 21608.5. (Ii) u-:-t..':t1..l6ti':R~iR3 ~"};?';;tjTrilili'i?R {:tl). tkilil :tlrti';i'l'il ,,112111 R9t F-~1..':~':t tr'i? ~Rf~r';i'~m~Rt Qf 21 1~q2l1 9rgiR2IRQ'il tR~t imF~Iil'ilR };<]'>!P'il::9m9Rt&i1' SR j"Rk gg2l1gr&; 2r rg'iil~.'iill~n:'1iil tRii1lt Ii1lrg :srr9:at9r tR~R 2r -~-g Iilt:r'::R3uRt tR~R tR'i?Iil'U pr2uiggg iR r9'l<'ti9R JliQi i SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution. http://info.sen.ca.gov/pub/07 -08/bill/asm/ab _ 0801-0850/ab _844_ bill_ 20070626 _amended _ sen _ v9... 8/17/2007