AB 363

This bill regulates sales of plastic bulk merchandise containers to scrap plastic

dealers in the same manner as scrap metal sales to scrap metal dealers are regulated

under current law. The bill defines "plastic bulk merchandise container" as a plastic

crate, pallet, or shell used by a product producer, distributor, or retailer for the bulk

transport or storage of retail containers of bottled beverages.

Current law allows a "scrap metal dealer," which current law defines as a

person engaged in the business of buying or selling certain types of scrap metal, to

purchase such scrap metal only if the seller is over the age of 18 and the scrap metal

dealer does all of the following: 1) obtains photographic identification from the seller

or deliverer; and 2) records the seller's or deliverer's identifying information, the

license plate number of the seller's or deliverer's vehicle, and certain descriptive

information about the scrap metal. Also, depending on the type of scrap metal, the

scrap metal dealer must establish that seller has the right to sell the scrap metal by

doing one of the following: 1) obtaining the seller's signed declaration that the seller

is the owner of the items being sold; 2) obtaining documentation establishing that the

seller lawfully possesses the scrap metal; or 3) documenting that the dealer has made

a diligent inquiry into the seller's right to sell the scrap metal and submitting a report

describing the scrap metal to a local law enforcement department. Current law

requires a scrap metal dealer to maintain records necessary to comply with the

foregoing requirements for at least two years. Current law creates an exception from

all of the foregoing requirements for a scrap metal dealer's purchases made from

commercial accounts with which the dealer maintains an ongoing and documented

business relationship. For the exception to apply, the scrap metal dealer must

comply with certain record-keeping requirements. In addition, the scrap metal

dealer must maintain records required for the exception for at least two years after

the dealer's most recent transaction with a commercial account.

This bill imposes the foregoing requirements on the sale of a plastic bulk

merchandise container to a "scrap plastic dealer," which the bill defines as a person

engaged in the business of buying and selling plastic to be processed for reuse in a

mill or other manufacturing facility. With respect to establishing a seller's right to

sell such a container, the bill requires a scrap plastic dealer to either: 1) obtain

documentation establishing that the seller lawfully possesses the container; or 2)

document that the dealer has made a diligent inquiry into the seller's right to sell the

container and submit a report describing the container to a local law enforcement

department. In addition, the exception for commercial accounts applies to a scrap

plastic dealer.

Under current law, a scrap metal dealer must make certain documentation

about scrap metal purchases available to law enforcement officers. Current law also

allows a law enforcement officer of a city, village, town, or county in which a scrap

metal dealer conducts business to request all scrap metal dealers in the city, village,