Bulk merchandise pallets.

Existing law authorizes junk dealers and recyclers, as defined, to sell and purchase junk, which includes secondhand and used furniture, pallets, or other personal property, as specified. Existing law prohibits junk dealers and recyclers from purchasing or receiving bulk merchandise pallets marked with an indicia of ownership from anyone except the indicated owner, unless specified information is provided to the junk dealer or recycler, and requires the junk dealer or recycler to maintain a written record of that information. Existing law makes a violation of these recordkeeping requirements a misdemeanor. This bill would revise the above provisions on bulk merchandise pallets to apply only to the purchase of bulk merchandise pallets marked with an indicia of ownership and would delete the provisions on receiving the bulk merchandise pallets, as described above. The bill would provide that those provisions do not prohibit a junk dealer or recycler from acquiring good faith possession of merchandise pallets based on the representations of the seller that the indicated owner cannot be located or has failed to retrieve the merchandise pallets on a timely basis. The bill would require a junk dealer or recycler who acquires good faith possession of merchandise pallets, if the indicated owner can be located, to give notice of good faith possession to the owner of those pallets. If, within 35 calendar days after the junk dealer or recycler notifies the indicated owner of having acquired good faith possession, the indicated owner demands a return of the pallets, the bill would permit a junk dealer or recycler to require payment of reasonable storage fees. The bill would provide that after 35 calendar days from when the junk dealer or recycler provides notice of good faith possession to the indicated owner, the owner is deemed to have relinquished possession of the merchandise pallets, and would permit the junk dealer or recycler to either sell the pallets or charge reasonable storage fees if the indicated owner demands a return and the pallets are still in the possession of the junk dealer or recycler. This bill would require the seller to retain a copy of the notice of good faith possession for at least 2 years, and would require the notice to contain specified information, including the name and contact information of the junk dealer or recycler that acquired good faith possession of the merchandise pallets. The bill would require the notice of good faith possession to be sent by mail or email to the indicated owner at their physical or email address, if known. By expanding the scope of a crime regarding the recordkeeping requirements of junk dealers and recyclers, the 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.