JUNK DEALERS
AND RECYCLERS
STATE REGULATIONS
Business and Professions Code (“B&P”)
sections 21600 through 21610
California Penal Code (“PC”) sections 496a
and 487j
B&P SECTION 21606,
Records; contents; reporting
Every junk dealer and every recycler is required to keep a written record of all sales and purchases made. That written record must include all of the following:
place and date of each sale or purchase of junk material; the form of identification used by the seller or purchaser; the license number of the vehicle used to transport the material; the name and address of the seller or purchaser;
a description of the junk; and
a statement indicating either that the seller of the junk is the owner of it, or the name of the person he or she obtained the junk from, as shown on a signed transfer document.
Persons who make false statements regarding any of this information is guilty of a misdemeanor.
RECORD RETENTION AND REPORTING
B&P 21606(c): Required to report the information to the chief of police or to the sheriff in the same manner as described in B&P 21628. Section 21628 requires daily reporting via the California Pawn and SecondhandDealer System (CAPSS)
B&P 21607: Required to retain records for at least two (2) years B&P 21606.5: Required to allow periodic inspections of premises and junk for the purpose of determining compliance with recordkeeping requirements.
B&P SECTION 21608.5,
Payment for nonferrous material
In addition to record requirements previously discussed, junk dealer must also comply with these extra requirements for the purchase of nonferrous materials.
B&P 216805.5(h) defines nonferrous materials as: “copper, copper alloys, stainless steel, or aluminum, but does not include beverage containers . . .” These regulations include
Seller must wait three (3) days after date of sale to collect cash, check or prepaid card, payment for materials;
Required to obtain a clear photograph or video of the seller and of the material being purchased; and
Required to obtain a thumbprint of the seller; and
Must maintain records for two (2) years
B&P SECTION 21608,
Violations; offenses; punishment
Violators are subject to potential imprisonment in county jail and fines in the following amounts:
$1,000 for a first violation,
$2,000 for a second violation,
$4,000 for a third or subsequent violation.
CATAL YTIC CONVERTERS
B&P section 21610 sets for additional record keeping and inspection requirements for the purchase of catalytic converters
Assembly Bill 1740 revises section 21610 to allow recyclers to purchase catalytic converters from only a “commercial enterprise,” defined to include:
a licensed automobile dismantler;
a core recycler;
a licensed motor vehicle manufacturer, dealer, or lessor-retailer; a licensed automotive repair dealer; or
any other licensed business that may reasonably generate, possess, or sell used catalytic converters.
CRIMINAL OFFENSES
PC section 496a: a junk dealer or recycler who knows or reasonably knows that the materials belong to a city is guilty of criminally receiving property and is subject to imprisonment in county jail or a $1,000 fine, or both.
PC section 487j: a person who takes copper materials in a value exceeding $950 is guilty of grand theft. Grand theft of copper is punishable by a $2,500 fine or by imprisonment in county jail, or both.
STATE PREEMPTION
Comprehensive regulations occupy an area of statewide concern B&P Section 21608.5(i) provides:
“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.” (emphasis added).
SMC CHAPTER 5.28, ARTICLE V,
JUNK DEALERS
SMC 5. 28.310: Application must be approved by the Police Department following an investigation of the applicant and the applicant’s proposed business address. SMC 5.28.370: Grounds for denying the application include if the applicant has been convicted of a crime involving the possession or theft of property, fraud, or crimes related to the operation of a junk dealer.
SMC 5.28.460: A license can be suspended or revoked in accordance if the business is found in violation of the law including the SMC provisions or the State regulations addressed above. Prior to the suspension or revocation, the license holder is entitled to a hearing in accordance with SMC section 5.28.470. SMC 5.28.480: A license may be immediately suspended if the business poses an immediate threat to public safety. Under such circumstances the license holder is still permitted a hearing ten (10) days after the notice is sent to suspend the license.
SMC SECTION 16.80.290,
RECYCLING FACILITIES
SMC section 16.80.290(B)(3)
Not within 100 feet of a residential use;
Size of the facilities;
Dust, fumes, odor, smoke, or vibration
above ambient levels shall not be
detectable on adjoining parcels; and
Specifications on walls and appropriate
storage
SMC Chapter 16.108, revocation and
modification procedures
IG: Industrial General, Administrative Use Permit
PT: Port, Permitted (by-right)
PF: Public Facilities, Administrative Use Permit
Table 2-2, Allowable Land Uses and Permit Requirements
QUESTIONS