Metal theft: damages.

Existing law governs the business of buying, selling, and dealing in secondhand and used machinery and all ferrous and nonferrous scrap metals and alloys, also known as "junk." Existing law further requires junk dealers and recyclers to keep and maintain a written record of all sales and purchases made in the course of their business, including the name and address of each person to whom junk is sold or disposed of. This bill would prohibit any junk dealer or recycler from possessing a fire hydrant, fire department connection, manhole cover or lid or any part of that cover or lid, or backflow device or connection to that device without a written certification on the letterhead of the agency or utility that owns or previously owned the material certifying that the entity has sold or is offering the material for sale and that the person possessing and identified in the certificate is authorized to negotiate the sale of the material. The bill would make junk dealers and recyclers civilly liable for actual damages and also for exemplary damages of 3 times the agency's or utility's actual damages, including the value of the material, repair and replacement costs, and labor costs, unless the court determines that extenuating circumstances do not justify awarding exemplary damages. This bill would require a junk dealer or recycler who unknowingly takes possession of one or more of these prohibited materials as part of a load of otherwise nonprohibited materials without the above-described written certification to notify the appropriate law enforcement agency, as defined, by the next business day upon discovery of the prohibited materials. Under the bill, written confirmation of the notice from the law enforcement agency would relieve the junk dealer or recycler of liability to the public agency. The bill would further state the Legislature's intent not to create liability on the part of junk dealers or recyclers to 3rd parties injured or damaged by the theft of the prohibited materials.