H.F. 2206 Section 1. NEW SECTION . 714I.1 Definitions. 1 As used in this chapter, unless the context otherwise 2 requires: 3 1. “Nonferrous material” means copper, copper alloys, 4 stainless steel, or aluminum. 5 2. “Recycler” means any person engaged in the business of 6 buying or selling salvaged materials for conversion by that 7 person or another person or facility into raw materials or 8 products composed primarily of recycled material. “Recycler” 9 does not include a vehicle recycler subject to chapter 321H or 10 a redemption center subject to chapter 455C. 11 3. “Salvage dealer” means any person engaged in the business 12 of buying, selling, and dealing in salvaged materials. 13 4. “Salvaged material” means scrap iron, brass, lead, copper 14 or aluminum wire or tubing, and other scrap metals. 15 Sec. 2. NEW SECTION . 714I.2 Salvage dealers —— sales and 16 purchase records. 17 1. The county board of supervisors in each county shall 18 adopt an ordinance requiring a salvage dealer or recycler to 19 maintain complete, accurate, and legible records in the English 20 language of all purchases and receipt of salvaged materials. 21 The ordinance shall require a salvage dealer to maintain the 22 following records: 23 a. The identity of the person from whom the salvaged 24 material was received or purchased, including name and address; 25 date of birth; Iowa driver’s license number, Iowa nonoperator’s 26 identification card number, or social security number in 27 conjunction with photo identification; and sex, age, height, 28 and race. 29 b. The vehicle license plate number of the vehicle that 30 delivered the salvaged material to the salvage dealer, if 31 applicable. 32 c. The date and hour of the purchase or receipt of the 33 salvaged material. 34 d. A reasonably accurate inventory and description of the 35 -1- LSB 5024YH (6) 84 rn/sc 1/ 9

H.F. 2206 salvaged material obtained. 1 e. The value of or amount paid for the salvaged material. 2 f. The weight or other measurable quantity of the salvaged 3 material. 4 g. From whom and at what time and place the salvaged 5 material was obtained by the person from whom it was purchased 6 or received, if known. 7 h. The date and manner of disposition by the salvage dealer 8 of the salvaged material by each article or in bulk. 9 i. The name and address of the person to whom the salvaged 10 material was sold or otherwise disposed of. 11 Sec. 3. NEW SECTION . 714I.3 Payment —— nonferrous material. 12 1. A salvage dealer or recycler shall not provide payment 13 for nonferrous material unless, in addition to meeting 14 the record requirements of section 714I.2, the following 15 requirements are met: 16 a. (1) The payment for the material is to be made by 17 cash or check. The check may be mailed to the seller at the 18 address provided on the driver’s license or nonoperator’s 19 identification card obtained pursuant to section 714I.2, 20 subsection 2, or the cash or check may be collected by the 21 seller from the salvage dealer or recycler on or after the 22 third business day after the date of sale. 23 (2) If the seller prefers to have the check for the material 24 mailed to an alternative address, other than a post office 25 box, the salvage dealer or recycler shall obtain a copy of a 26 gas or electric utility bill addressed to the seller at that 27 alternative address with a payment due date no more than two 28 months prior to the date of sale. 29 (3) This paragraph “a” shall not apply if, during the 30 three-month interval prior to the date of sale, the salvage 31 dealer or recycler completes five or more separate transactions 32 per month, on five or more separate days per month, with the 33 seller. 34 b. At the time of sale, the salvage dealer or recycler 35 -2- LSB 5024YH (6) 84 rn/sc 2/ 9

H.F. 2206 obtains a clear photograph or video of the seller in addition 1 to the photographic identification required in section 714I.2. 2 c. The salvage dealer or recycler obtains a clear photograph 3 or video of the nonferrous material being purchased. 4 2. This section shall not apply if, on the date of sale, the 5 salvage dealer or recycler has on file or receives all of the 6 following: 7 a. The name, physical business address, and business 8 telephone number of the seller’s business. 9 b. The business license number or tax identification number 10 of the seller’s business. 11 c. A copy of the valid driver’s license of the person 12 delivering the nonferrous material on behalf of the seller to 13 the salvage dealer or the recycler. 14 Sec. 4. NEW SECTION . 714I.4 Retention of records —— 15 unauthorized disclosure. 16 1. Records required or information obtained pursuant to 17 this chapter shall be preserved for a minimum of two years from 18 the date of purchase or receipt and maintained at the place of 19 business of the salvage dealer or recycler. 20 2. Any unauthorized disclosure of personal identification 21 information collected from a seller by a salvage dealer or 22 recycler is prohibited, and any such disclosure shall render 23 the violator subject to the penalty provisions of section 24 714I.7. 25 Sec. 5. NEW SECTION . 714I.5 Inspections. 26 1. Every salvage dealer or recycler shall, during normal 27 business hours, allow periodic inspection by a peace officer of 28 any premises maintained and any salvage material thereon for 29 the purpose of determining compliance with the recordkeeping 30 and payment requirements of this chapter, and shall during 31 those hours produce records of sales and purchases and all 32 property purchased incident to those transactions which is in 33 the possession of the salvage dealer or recycler. 34 2. For the purposes of this chapter, “peace officer” means 35 -3- LSB 5024YH (6) 84 rn/sc 3/ 9

H.F. 2206 any of the following: 1 a. An officer holding a warrant authorizing the officer to 2 search for personal property. 3 b. A person appointed by the sheriff of a county or 4 appointed by the head of the department of a city. 5 c. An officer holding a court order directing the officer to 6 examine the records or property. 7 Sec. 6. NEW SECTION . 714I.6 Property subject to hold. 8 1. Whenever a peace officer has probable cause to believe 9 that property in the possession of a salvage dealer or 10 recycler is stolen, in lieu of seizing the property, the peace 11 officer may place a hold on the property for a period not 12 to exceed ninety days. When a peace officer places a hold 13 on the property, the peace officer shall provide the salvage 14 dealer or recycler a written notice at the time the hold 15 is placed, describing the item or items to be held plus an 16 applicable case number. During this period, the salvage dealer 17 or recycler shall not release or dispose of the property, 18 except pursuant to a court order or upon receipt of a written 19 authorization signed by a peace officer who is a member of the 20 law enforcement agency of which the peace officer placing the 21 hold on the property is a member. Except as specifically set 22 forth in this section, a salvage dealer or recycler shall not 23 be subject to civil liability for compliance with this section. 24 2. Whenever property that is in the possession of a salvage 25 dealer or recycler is subject to a hold and the property is 26 required by a peace officer in a criminal investigation, the 27 salvage dealer or recycler, upon reasonable notice, shall 28 produce the property at reasonable times and places or may 29 deliver the property to any peace officer upon the request of 30 any peace officer who is a member of the law enforcement agency 31 of which the peace officer placing the hold on the property is 32 a member. 33 3. Whenever property that is in the possession of a salvage 34 dealer or recycler is subject to a hold and the property is no 35 -4- LSB 5024YH (6) 84 rn/sc 4/ 9

H.F. 2206 longer required for the purpose of criminal investigation, the 1 law enforcement agency that placed the hold on the property 2 shall undertake the following: 3 a. If the law enforcement agency has no knowledge of the 4 property on hold being reported as stolen, the property shall 5 be released upon written notice to the salvage dealer or 6 recycler. The notice shall be provided in a timely fashion. 7 b. If the law enforcement agency has knowledge that the 8 property has been reported stolen, the law enforcement agency 9 shall notify the person who reported the property as stolen of 10 the name and address of the salvage dealer or recycler holding 11 the property and authorize the release of the property to that 12 person within sixty days following delivery of the notice. If 13 the owner of property that has been reported as stolen seeks to 14 recover property that is subject to a hold, the salvage dealer 15 or recycler shall advise the owner of the property of the name 16 and badge number of the peace officer who placed the hold on 17 the property and the name of the law enforcement agency of 18 which the officer is a member. If the property is not required 19 to be held pursuant to a criminal prosecution the hold shall 20 be released. 21 c. Upon conviction of a person for the theft of property 22 placed on hold pursuant to this section, the court shall order 23 the person convicted to do both of the following: 24 (1) Pay the salvage dealer or recycler reasonable costs for 25 the storage of the property. 26 (2) Pay the owner of the stolen property for both the value 27 of the property stolen and any reasonable collateral damage 28 caused in the commission of the theft. 29 Sec. 7. NEW SECTION . 714I.7 Penalty. 30 1. A violation of this chapter is a simple misdemeanor. 31 2. A second or subsequent violation of this chapter is 32 a serious misdemeanor, and may subject the violator to the 33 possible suspension, revocation, or nonrenewal of a license or 34 permit, if issued by the state or a political subdivision of 35 -5- LSB 5024YH (6) 84 rn/sc 5/ 9

H.F. 2206 the state, under conditions or as prescribed by the licensing 1 authority. 2 Sec. 8. REPEAL. Section 714.27, Code Supplement 2011, is 3 repealed. 4 EXPLANATION 5 This bill specifies requirements applicable to salvage 6 dealers and recyclers, primarily relating to recordkeeping and 7 identification of buyers and sellers of salvaged materials. 8 The bill provides several definitions. The bill defines 9 “nonferrous material” to mean copper, copper alloys, stainless 10 steel, or aluminum. The bill defines “recycler” to mean any 11 person engaged in the business of buying or selling salvaged 12 materials for conversion by that person or another person or 13 facility into raw materials or products composed primarily of 14 recycled material, not including a vehicle recycler subject 15 to Code chapter 321H or a redemption center subject to Code 16 chapter 455C. The bill defines a “salvage dealer” to mean any 17 person engaged in the business of buying, selling, and dealing 18 in salvaged materials. The bill defines “salvaged materials” 19 to mean scrap iron, brass, lead, copper or aluminum wire or 20 tubing, and other scrap metals. 21 The bill provides that the county board of supervisors in 22 each county shall adopt an ordinance requiring a salvage dealer 23 or recycler to maintain records of all purchases and receipt 24 of salvaged materials. The bill specifies that the records 25 shall include the identity of the person from whom the salvaged 26 material was received or purchased, including name and address; 27 date of birth; Iowa driver’s license number, Iowa nonoperator’s 28 identification card number, or social security number in 29 conjunction with photo identification; and sex, age, height, 30 and race; the vehicle license plate number of the vehicle 31 that delivered the salvaged material to the salvage dealer, 32 if applicable; the date and hour of the purchase or receipt 33 of the salvaged material; a reasonably accurate inventory and 34 description of the salvaged material obtained; the value of 35 -6- LSB 5024YH (6) 84 rn/sc 6/ 9

H.F. 2206 or amount paid for the salvaged material; the weight or other 1 measurable quantity of the salvaged material; from whom and at 2 what time and place the salvaged material was obtained by the 3 person from whom it was purchased or received, if known; the 4 date and manner of disposition by the salvage dealer of the 5 salvaged material by each article or in bulk; and the name and 6 address of the person to whom the salvaged material was sold or 7 otherwise disposed of. 8 The bill also provides that a salvage dealer or recycler 9 shall not provide payment for nonferrous material unless, 10 in addition to meeting the record requirements, additional 11 requirements are met. The bill provides that payment for the 12 material shall be made by cash or check mailed to the seller at 13 the address provided by the seller, or the cash or check may 14 be collected by the seller from the salvage dealer or recycler 15 on or after the third business day after the date of sale. In 16 the event that the seller prefers to have the check for the 17 material mailed to an alternative address, other than a post 18 office box, the bill requires the salvage dealer or recycler 19 to obtain a copy of a gas or electric utility bill addressed 20 to the seller at that alternative address with a payment due 21 date no more than two months prior to the date of sale. The 22 bill provides that the delayed payment provision shall not 23 be applicable if, during the three-month interval prior to 24 the date of sale, the salvage dealer or recycler completes 25 five or more separate transactions per month, on five or more 26 separate days per month, with the seller. Additionally, the 27 bill requires that at the time of sale, the salvage dealer 28 or recycler must obtain a clear photograph or video of the 29 seller and of the nonferrous material being purchased. The 30 bill provides that none of the above requirements regarding 31 delayed payment and identification shall apply to a transaction 32 if, on the date of sale, the salvage dealer or recycler has 33 on file or receives the name, physical business address, 34 and business telephone number of the seller’s business, the 35 -7- LSB 5024YH (6) 84 rn/sc 7/ 9

H.F. 2206 business license number or tax identification number of the 1 seller’s business, and a copy of the valid driver’s license of 2 the person delivering the nonferrous material on behalf of the 3 seller to the salvage dealer or the recycler. 4 The bill specifies that records required or information 5 obtained pursuant to the bill’s provisions shall be preserved 6 for a minimum of two years from the date of purchase or 7 sale, and subjects any unauthorized disclosure of personal 8 identification information collected from a seller by a salvage 9 dealer or recycler to penalty provisions as subsequently 10 described. 11 The bill requires every salvage dealer or recycler, during 12 normal business hours, to allow periodic inspection of any 13 premises maintained and any salvage material thereon for the 14 purpose of determining compliance with the recordkeeping 15 requirements, and requires the production of sales and 16 purchase records and all property purchased incident to those 17 transactions which is in the possession of the salvage dealer 18 or recycler for inspection by a peace officer, as defined in 19 the bill. 20 The bill provides that when a peace officer has probable 21 cause to believe that property in the possession of a salvage 22 dealer or recycler is stolen, in lieu of seizing the property, 23 the peace officer may place a hold on the property for a period 24 not to exceed 90 days. The bill specifies notice and release 25 provisions with regard to any property subject to a hold. The 26 bill provides that upon conviction of a person for the theft 27 of property placed on hold, the court shall order the person 28 convicted to pay the salvage dealer or recycler reasonable 29 costs for the storage of the property, and pay the owner of the 30 stolen property for both the value of the property stolen and 31 any reasonable collateral damage caused in the commission of 32 the theft. 33 The bill provides that an initial violation of the bill’s 34 provisions is a simple misdemeanor, and that a second or 35 -8- LSB 5024YH (6) 84 rn/sc 8/ 9

H.F. 2206 subsequent violation is a serious misdemeanor, and may subject 1 the violator to the possible suspension, revocation, or 2 nonrenewal of a license or permit, if issued by the state or a 3 political subdivision of the state. A simple misdemeanor is 4 punishable by confinement for no more than 30 days or a fine 5 of at least $65 but not more than $625, or by both. A serious 6 misdemeanor is punishable by confinement for no more than one 7 year and a fine of at least $315 but not more than $1,875. 8 Additionally, the bill repeals Code section 714.27, 9 which authorized political subdivisions to adopt a model 10 ordinance providing restrictions on sales of copper to salvage 11 dealers. Such sales would now be encompassed within the bill’s 12 provisions. 13 -9- LSB 5024YH (6) 84 rn/sc 9/ 9