New laws become effective December 1st, 2008 throughout California

Modesto, CA – November 24, 2008

Modesto Junk Company, Inc. announces the implementation of new statewide metal theft laws, which became effective December 1st, 2008. The new laws, adopted from AB 844 go into effect under California’s Business and Profession Code 21600-21609.5. Customers (Sellers) and Scrap Metal Dealers and Recyclers (Buyers) will be required to provide and record the following information for non-ferrous* materials:

1. The place and date of each sale or purchase. (B&P 21606(a)(1))
2. The name, valid driver’s license number and state of issuance or California-issued identification card number, and vehicle license number including the state of issuance of any motor vehicle used in transporting the material to us. (21606(a)(2))
3. The name and address of each person. (21606(a)(3))
4. A description of the items purchased or sold, including the type, quantity, and identification number, if visible. (21606(a)(4))
5. A statement as shown on a signed document indicating that the seller of the junk is the owner of it, or the name of the person from whom it was obtained. (21606(a)(5))
6. A photograph or video of the seller and material being purchased. (21608.5(a)(2)(4))
7. A copy of the valid driver’s license of the seller containing a photograph and an address of the seller or a copy of a state or federal government-issued identification card containing a photograph and an address of the seller. (21608.5(a)(3)(A))
8. A thumbprint of the seller. (21608.5(a)(6)(A))

AB 844 requires a three business day waiting period before the seller can receive payment for non-ferrous material. (21608.5)

The 3 business day waiting period shall not apply if the seller completes 5 or more transactions on 5 or more different days each month for 3 consecutive months starting December 1, 2008. The seller must continue to complete 5 or more transactions on 5 or more different days each month in order to continue receiving immediate payment.

The three business day waiting period, photograph, driver’s license copy, and thumb print are not required under the following circumstances:

(A) On the date of sale, we (buyer/Modesto Junk Company) have on file all of the following information:

1. The name, physical business address, and busines telephone number of your (seller’s) business.
2. Your (seller) business license number or tax identification number.
3. A copy of the valid driver’s license of the person delivering the non-ferrous material on your behalf to Modesto Junk Company.

(B) The nonferrous material has a value of not more than twenty dollars ($20) in a single transaction, and the primary purpose of the transaction is to redeem beverage containers under the California Beverage Container Recycling & Litter Reduction Act.

*”Non-ferrous material” means coper, copper alloys (brass), stainless steel or aluminum. CRV aluminum cans are not considered “non-ferrous material” and are therefore exempt with regard to AB 844.