HOUSE FILE 2206

BY  IVERSON

A BILL FOR

An Act specifying requirements applicable to salvage dealers and recyclers, and providing penalties.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  NEW SECTION.  714I.1  Definitions.
   As used in this chapter, unless the context otherwise requires:
   1.  “Nonferrous material” means copper, copper alloys, stainless steel, or aluminum.
   2.  “Recycler” means any person engaged in the business of buying or selling salvaged materials for conversion by that person or another person or facility into raw materials or products composed primarily of recycled material. “Recycler” does not include a vehicle recycler subject to chapter 321H or a redemption center subject to chapter 455C.
   3.  “Salvage dealer” means any person engaged in the business of buying, selling, and dealing in salvaged materials.
   4.  “Salvaged material” means scrap iron, brass, lead, copper or aluminum wire or tubing, and other scrap metals.
    Sec. 2.  NEW SECTION.  714I.2  Salvage dealers —— sales and purchase records.
   1.  The county board of supervisors in each county shall adopt an ordinance requiring a salvage dealer or recycler to maintain complete, accurate, and legible records in the English language of all purchases and receipt of salvaged materials. The ordinance shall require a salvage dealer to maintain the following records:
   a.  The identity of the person from whom the salvaged material was received or purchased, including name and address; date of birth; Iowa driver’s license number, Iowa nonoperator’s identification card number, or social security number in conjunction with photo identification; and sex, age, height, and race.
   b.  The vehicle license plate number of the vehicle that delivered the salvaged material to the salvage dealer, if applicable.
   c.  The date and hour of the purchase or receipt of the salvaged material.
   d.  A reasonably accurate inventory and description of the salvaged material obtained.
   e.  The value of or amount paid for the salvaged material.
   f.  The weight or other measurable quantity of the salvaged material.
   g.  From whom and at what time and place the salvaged material was obtained by the person from whom it was purchased or received, if known.
   h.  The date and manner of disposition by the salvage dealer of the salvaged material by each article or in bulk.
   i.  The name and address of the person to whom the salvaged material was sold or otherwise disposed of.
    Sec. 3.  NEW SECTION.  714I.3  Payment —— nonferrous material.
   1.  A salvage dealer or recycler shall not provide payment for nonferrous material unless, in addition to meeting the record requirements of section 714I.2, the following requirements are met:
   a.
  (1)  The payment for the material is to be made by cash or check. The check may be mailed to the seller at the address provided on the driver’s license or nonoperator’s identification card obtained pursuant to section 714I.2, subsection 2, or the cash or check may be collected by the seller from the salvage dealer or recycler on or after the third business day after the date of sale.
   (2)  If the seller prefers to have the check for the material mailed to an alternative address, other than a post office box, the salvage dealer or recycler shall obtain a copy of a gas or electric utility bill addressed to the seller at that alternative address with a payment due date no more than two months prior to the date of sale.
   (3)  This paragraph “a” shall not apply if, during the three-month interval prior to the date of sale, the salvage dealer or recycler completes five or more separate transactions per month, on five or more separate days per month, with the seller.
   b.  At the time of sale, the salvage dealer or recycler obtains a clear photograph or video of the seller in addition to the photographic identification required in section 714I.2.
   c.  The salvage dealer or recycler obtains a clear photograph or video of the nonferrous material being purchased. 
   2.  This section shall not apply if, on the date of sale, the salvage dealer or recycler has on file or receives all of the following: 
   a.  The name, physical business address, and business telephone number of the seller’s business.
   b.  The business license number or tax identification number of the seller’s business. 
   c.  A copy of the valid driver’s license of the person delivering the nonferrous material on behalf of the seller to the salvage dealer or the recycler.
    Sec. 4.  NEW SECTION.  714I.4  Retention of records —— unauthorized disclosure.
   1.  Records required or information obtained pursuant to this chapter shall be preserved for a minimum of two years from the date of purchase or receipt and maintained at the place of business of the salvage dealer or recycler.
   2.  Any unauthorized disclosure of personal identification information collected from a seller by a salvage dealer or recycler is prohibited, and any such disclosure shall render the violator subject to the penalty provisions of section 714I.7.
    Sec. 5.  NEW SECTION.  714I.5  Inspections.
   1.  Every salvage dealer or recycler shall, during normal business hours, allow periodic inspection by a peace officer of any premises maintained and any salvage material thereon for the purpose of determining compliance with the recordkeeping and payment requirements of this chapter, and shall during those hours produce records of sales and purchases and all property purchased incident to those transactions which is in the possession of the salvage dealer or recycler.
   2.  For the purposes of this chapter, “peace officer” means any of the following: 
   a.  An officer holding a warrant authorizing the officer to search for personal property.
   b.  A person appointed by the sheriff of a county or appointed by the head of the department of a city.
   c.  An officer holding a court order directing the officer to examine the records or property.
    Sec. 6.  NEW SECTION.  714I.6  Property subject to hold.
   1.  Whenever a peace officer has probable cause to believe that property in the possession of a salvage dealer or recycler is stolen, in lieu of seizing the property, the peace officer may place a hold on the property for a period not to exceed ninety days. When a peace officer places a hold on the property, the peace officer shall provide the salvage dealer or recycler a written notice at the time the hold is placed, describing the item or items to be held plus an applicable case number. During this period, the salvage dealer or recycler shall not release or dispose of the property, except pursuant to a court order or upon receipt of a written authorization signed by a peace officer who is a member of the law enforcement agency of which the peace officer placing the hold on the property is a member. Except as specifically set forth in this section, a salvage dealer or recycler shall not be subject to civil liability for compliance with this section. 
   2.  Whenever property that is in the possession of a salvage dealer or recycler is subject to a hold and the property is required by a peace officer in a criminal investigation, the salvage dealer or recycler, upon reasonable notice, shall produce the property at reasonable times and places or may deliver the property to any peace officer upon the request of any peace officer who is a member of the law enforcement agency of which the peace officer placing the hold on the property is a member. 
   3.  Whenever property that is in the possession of a salvage dealer or recycler is subject to a hold and the property is no longer required for the purpose of criminal investigation, the law enforcement agency that placed the hold on the property shall undertake the following:
   a.  If the law enforcement agency has no knowledge of the property on hold being reported as stolen, the property shall be released upon written notice to the salvage dealer or recycler. The notice shall be provided in a timely fashion. 
   b.  If the law enforcement agency has knowledge that the property has been reported stolen, the law enforcement agency shall notify the person who reported the property as stolen of the name and address of the salvage dealer or recycler holding the property and authorize the release of the property to that person within sixty days following delivery of the notice. If the owner of property that has been reported as stolen seeks to recover property that is subject to a hold, the salvage dealer or recycler shall advise the owner of the property of the name and badge number of the peace officer who placed the hold on the property and the name of the law enforcement agency of which the officer is a member. If the property is not required to be held pursuant to a criminal prosecution the hold shall be released. 
   c.  Upon conviction of a person for the theft of property placed on hold pursuant to this section, the court shall order the person convicted to do both of the following: 
   (1)  Pay the salvage dealer or recycler reasonable costs for the storage of the property.
   (2)  Pay the owner of the stolen property for both the value of the property stolen and any reasonable collateral damage caused in the commission of the theft.
    Sec. 7.  NEW SECTION.  714I.7  Penalty.
   1.  A violation of this chapter is a simple misdemeanor.
   2.  A second or subsequent violation of this chapter is a serious misdemeanor, and may subject the violator to the possible suspension, revocation, or nonrenewal of a license or permit, if issued by the state or a political subdivision of the state, under conditions or as prescribed by the licensing authority.
    Sec. 8.  REPEAL.  Section 714.27, Code Supplement 2011, is repealed.
EXPLANATION
   This bill specifies requirements applicable to salvage dealers and recyclers, primarily relating to recordkeeping and identification of buyers and sellers of salvaged materials.
   The bill provides several definitions. The bill defines “nonferrous material” to mean copper, copper alloys, stainless steel, or aluminum. The bill defines “recycler” to mean any person engaged in the business of buying or selling salvaged materials for conversion by that person or another person or facility into raw materials or products composed primarily of recycled material, not including a vehicle recycler subject to Code chapter 321H or a redemption center subject to Code chapter 455C. The bill defines a “salvage dealer” to mean any person engaged in the business of buying, selling, and dealing in salvaged materials. The bill defines “salvaged materials” to mean scrap iron, brass, lead, copper or aluminum wire or tubing, and other scrap metals.
   The bill provides that the county board of supervisors in each county shall adopt an ordinance requiring a salvage dealer or recycler to maintain records of all purchases and receipt of salvaged materials. The bill specifies that the records shall include the identity of the person from whom the salvaged material was received or purchased, including name and address; date of birth; Iowa driver’s license number, Iowa nonoperator’s identification card number, or social security number in conjunction with photo identification; and sex, age, height, and race; the vehicle license plate number of the vehicle that delivered the salvaged material to the salvage dealer, if applicable; the date and hour of the purchase or receipt of the salvaged material; a reasonably accurate inventory and description of the salvaged material obtained; the value of or amount paid for the salvaged material; the weight or other measurable quantity of the salvaged material; from whom and at what time and place the salvaged material was obtained by the person from whom it was purchased or received, if known; the date and manner of disposition by the salvage dealer of the salvaged material by each article or in bulk; and the name and address of the person to whom the salvaged material was sold or otherwise disposed of.
   The bill also provides that a salvage dealer or recycler shall not provide payment for nonferrous material unless, in addition to meeting the record requirements, additional requirements are met. The bill provides that payment for the material shall be made by cash or check mailed to the seller at the address provided by the seller, or the cash or check may be collected by the seller from the salvage dealer or recycler on or after the third business day after the date of sale. In the event that the seller prefers to have the check for the material mailed to an alternative address, other than a post office box, the bill requires the salvage dealer or recycler to obtain a copy of a gas or electric utility bill addressed to the seller at that alternative address with a payment due date no more than two months prior to the date of sale. The bill provides that the delayed payment provision shall not be applicable if, during the three-month interval prior to the date of sale, the salvage dealer or recycler completes five or more separate transactions per month, on five or more separate days per month, with the seller. Additionally, the bill requires that at the time of sale, the salvage dealer or recycler must obtain a clear photograph or video of the seller and of the nonferrous material being purchased. The bill provides that none of the above requirements regarding delayed payment and identification shall apply to a transaction if, on the date of sale, the salvage dealer or recycler has on file or receives the name, physical business address, and business telephone number of the seller’s business, the business license number or tax identification number of the seller’s business, and a copy of the valid driver’s license of the person delivering the nonferrous material on behalf of the seller to the salvage dealer or the recycler.
   The bill specifies that records required or information obtained pursuant to the bill’s provisions shall be preserved for a minimum of two years from the date of purchase or sale, and subjects any unauthorized disclosure of personal identification information collected from a seller by a salvage dealer or recycler to penalty provisions as subsequently described.
   The bill requires every salvage dealer or recycler, during normal business hours, to allow periodic inspection of any premises maintained and any salvage material thereon for the purpose of determining compliance with the recordkeeping requirements, and requires the production of sales and purchase records and all property purchased incident to those transactions which is in the possession of the salvage dealer or recycler for inspection by a peace officer, as defined in the bill.
   The bill provides that when a peace officer has probable cause to believe that property in the possession of a salvage dealer or recycler is stolen, in lieu of seizing the property, the peace officer may place a hold on the property for a period not to exceed 90 days. The bill specifies notice and release provisions with regard to any property subject to a hold. The bill provides that upon conviction of a person for the theft of property placed on hold, the court shall order the person convicted to pay the salvage dealer or recycler reasonable costs for the storage of the property, and pay the owner of the stolen property for both the value of the property stolen and any reasonable collateral damage caused in the commission of the theft.
   The bill provides that an initial violation of the bill’s provisions is a simple misdemeanor, and that a second or subsequent violation is a serious misdemeanor, and may subject the violator to the possible suspension, revocation, or nonrenewal of a license or permit, if issued by the state or a political subdivision of the state. A simple misdemeanor is punishable by confinement for no more than 30 days or a fine of at least $65 but not more than $625, or by both. A serious misdemeanor is punishable by confinement for no more than one year and a fine of at least $315 but not more than $1,875.
   Additionally, the bill repeals Code section 714.27, which authorized political subdivisions to adopt a model ordinance providing restrictions on sales of copper to salvage dealers. Such sales would now be encompassed within the bill’s provisions.