Today's Law As Amended


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AB-1095 Junk dealers and recyclers: nonferrous materials.(2013-2014)



As Amends the Law Today


SECTION 1.

 Section 21608.5 of the Business and Professions Code is amended 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) (A)  The payment for the material is made by cash, general use prepaid card, or check. The check  check, which  may be mailed to the seller at the address provided pursuant to paragraph (3), or the cash or check may be  (3) or  collected by the seller from the junk dealer or recycler on or after the third business  30th  day after the date of sale. If the buyer offers, and the seller agrees, to have the payment made by general use prepaid card, the card may be provided to the seller at the time of sale, but funds shall not be available to the seller until the third business day after the date of sale. sale, during which period the junk dealer or recycler may not discard, disassemble, recycle, sell, dispose of, or otherwise remove the items purchased from the junk dealer’s or recycler’s property. 
(B) If payment is made by general use prepaid card, a junk dealer or recycler shall pay any one-time initial issuance fee.
(C) A general use prepaid card used pursuant to this section shall allow for reasonably convenient access to a surcharge-free cash access network location, and the junk dealer or recycler shall inform the seller as to the location of a designated surcharge-free cash access location upon issuance of the card.
(D) Nothing in this section shall prevent or regulate the fees or surcharges charged by a bank or credit union that is not a party to the contract that requires payment to be made by a general use prepaid card.
(2) At the time of sale, the junk dealer or recycler obtains a clear photograph or video of the seller.
(3) (A) Except as provided in subparagraph (B), the junk dealer or recycler obtains a copy of the valid driver’s license of the seller containing a photograph and an address of the seller, a copy of a state or federal government-issued identification card containing a photograph and an address of the seller, a passport from any other country in addition to another item of identification bearing an address of the seller, or a Matricula Consular in addition to another item of identification bearing an address of the seller.
(B) If the seller prefers to have the check or general use prepaid card with payment  for the material mailed to an alternative address, other than a post office box, the junk dealer or recycler shall obtain a copy of a driver’s license or identification card described in subparagraph (A), and a gas or electric utility bill addressed to the seller at that alternative address with a payment due date no more than two months prior to the date of sale. For purposes of this paragraph, “alternative address” means an address that is different from the address appearing on the seller’s driver’s license or identification card.
(4) The junk dealer or recycler obtains a clear photograph or video of the nonferrous material being purchased.
(5) The junk dealer or recycler shall preserve the information obtained pursuant to this subdivision for a period of two years after the date of sale.
(6) (A) The junk dealer or recycler obtains a thumbprint of the seller, as prescribed by the Department of Justice. The junk dealer or recycler shall keep this thumbprint with the information obtained under this subdivision and shall preserve the thumbprint in either hardcopy or electronic format for a period of two years after the date of sale.
(B) Inspection or seizure of the thumbprint shall only be performed by a peace officer acting within the scope of the peace officer’s his or her  authority in response to a criminal search warrant signed by a magistrate and served on the junk dealer or recycler by the peace officer. Probable cause for the issuance of that warrant shall must  be based upon a theft specifically involving the transaction for which the thumbprint was given.
(b) Paragraph (1) 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, on five or more separate days per month, with the seller and, in order for paragraph (1) of subdivision (a) to continue to be inapplicable, the seller shall continue to complete five or more separate transactions per month with the junk dealer or recycler.
(c) (b)  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:
(1) 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 seller’s 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.
(d) (c)  (1) This section shall not apply to the purchase of nonferrous material having a value of not more than twenty dollars ($20) in a single transaction, when the majority of the transaction is for 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.
(2) Materials made of copper or copper alloys shall not be purchased under this subdivision.
(e) (d)  This section shall not apply to coin dealers or to automobile dismantlers, as defined in Section 220 of the Vehicle Code.
(e) Paragraph (1) of subdivision (a) shall not apply, and payment for the nonferrous materials may be made by cash, or check mailed to the seller at the address provided pursuant to paragraph (3) of subdivision (a), or by cash or check collected by the seller from the junk dealer or recycler on or after the third business day after the date of sale, if one of the following conditions are met:
(f) (1)  For purposes of this section, “designated surcharge-free cash access network location” means a location designated, in a contract between a  If the materials are marked with an indicia of ownership, the  junk dealer or recycler and a card issuer, as a location where a general use prepaid card holder can withdraw cash without paying a surcharge. obtains a proof of ownership record, including, but not limited to, a receipt from the indicated owner, or a bill of lading, from the person selling or delivering the materials that shows that person has lawful possession or ownership of the materials. Copies of these documents shall be maintained by the junk dealer or recycler as part of the written record of the transaction. 
(2) If the materials are not marked with an indicia of ownership, the junk dealer or recycler obtains a proof of purchase record identifying the materials brought in for sale or recycling, including, but not limited to, a retail store receipt identifying the materials by part number if that part number is indicated on the materials. Copies of these documents shall be maintained by the junk dealer or recycler as part of the written record of the transaction.
(g) (3)  For purposes of this section, “general use prepaid card” has the same meaning as “prepaid account” in Section 1005.2 of Title 12 of the Code of Federal Regulations as it read on April 1, 2019, except that a general use prepaid card does not include a card for which any of the following fees are charged by the card issuer to the card user: If the materials are recycled after being removed from the home of the seller, the junk dealer or recycler obtains the following documentation, and maintains that documentation as part of the written record of the transaction: 
(A) A letter from a licensed contractor indicating the address of the seller and stating that the materials were removed from the home of the seller during the course of construction. A licensed contractor who willfully or knowingly makes a false or fictitious statement under this subparagraph is guilty of a misdemeanor punishable pursuant to subdivision (b) of Section 21608.
(1) (B)  A fee or surcharge to make a purchase with the card. copy of the contractor’s license. 
(2) A fee or surcharge to make a balance inquiry.
(3) A fee or surcharge to withdraw funds at a designated surcharge-free cash access network location.
(4) (C)  A fee or surcharge to lodge a dispute regarding the balance of funds on the card. utility bill addressed to the seller with a payment due date no more than two months prior to the date of sale, indicating the seller’s name and address as it appears on the letter pursuant to subparagraph (A) and the seller’s name as it appears on the identification documentation provided pursuant to paragraph (3) of subdivision (a). 
(5) (f)  A fee or surcharge for account inactivity. For the purposes of this section, the following terms have the following meanings: 
(1) “Indicia of ownership” means words, symbols, or registered trademarks printed, stamped, etched, attached, or otherwise displayed on the exterior surface of the materials that reasonably identify the owner.
(h)  For the  (2)   purposes of this section, “nonferrous  “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, that are subject to a redemption payment pursuant to Section 14560 of the Public Resources Code.
(i) (g)  This section is intended to occupy the entire field of law related to junk dealer or recycler transactions involving nonferrous material. However, a city or county ordinance, or a city and county ordinance, relating to the subject matter of this section is not in conflict with this section if the ordinance is passed by a two-thirds vote and it can be demonstrated by clear and convincing evidence that the ordinance is both necessary and addresses a unique problem within and specific to the jurisdiction of the ordinance that cannot effectively be addressed under this section.
SEC. 2.
  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.