Junk dealers and recyclers: nonferrous materials.

Existing law requires junk dealers and recyclers, as defined, to maintain written records of all sales and purchases made in the course of their business, and makes a violation of the recordkeeping requirements a misdemeanor. Existing law prohibits 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 mailed or the cash or check is provided no earlier than 3 days after the date of sale, and the dealer or recycler obtains a photograph or video of the seller and certain other identifying information, as specified, which is to be retained by the dealer or recycler, as part of the written record of purchases, for a specified period of time. Existing law exempts from the payment by cash or check requirement those sellers of junk or recycling materials who conduct 5 or more separate transactions per month with the junk dealer or recycler, as specified. This bill would, until January 1, 2020, exempt from the payment by cash or check requirement those sellers of junk or recycling materials who carry a surety bond of at least $100,000, covering the business entity at large, including all locations, which exclusively covers the cost of loss to the verifiable owner of stolen scrap metal purchased by the junk dealer or recycler and the cost to local law enforcement of investigating the theft. The bill would define the recoverable cost of loss to the verifiable owner of the scrap metal to be specified damages. The bill would also require the California Research Bureau to provide a report to the Legislature on or before June 1, 2019, on the impact of these provisions on efforts to reduce and eliminate metal theft.