HF 2399 (LSB 6035HV (2) 84)

HOUSE FILE 2399

BY  COMMITTEE ON PUBLIC SAFETY

(SUCCESSOR TO HSB 603)

A BILL FOR

An Act relating to scrap metal transactions, prohibiting certain sales, and providing penalties.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 714.27, Code Supplement 2011, is amended by striking the section and inserting in lieu thereof the following:
   714.27  Scrap metal transactions and reporting —— penalties.
   1.  For purposes of this section, and unless the context otherwise requires, the following definitions shall apply:
   a.  “Scrap metal” means any metal suitable for reprocessing. “Scrap metal” does not include a motor vehicle, but does include a catalytic converter detached from a motor vehicle.
   b.  “Scrap metal dealer” means any person operating a business at a fixed or mobile location that is engaged in one of the following activities:
   (1)  Buying, selling, procuring, collecting, gathering, soliciting, or dealing in scrap metal.
   (2)  Operating, managing, or maintaining a scrap metal yard.
   c.  “Scrap metal yard” means any yard, plot, space, enclosure, building, mobile facility, or other place where scrap metal is collected, gathered together, stored, or kept for shipment, sale, or transfer.
   2.
  a.  A person shall not sell scrap metal to a scrap metal dealer in this state unless the person provides to the scrap metal dealer, at or before the time of sale, the person’s name, address, and place of business, if any, and presents to the scrap metal dealer a valid driver’s license or nonoperator’s identification card, military identification card, passport, or other government-issued photo identification.
   b.  A scrap metal dealer shall not make an initial purchase of scrap metal from a person without demanding and receiving the information required by this subsection. However, after an initial transaction, a scrap metal dealer may only require the person’s name and place of business for subsequent purchases, provided the scrap metal dealer retains all information received during the initial transaction.
   3.  A scrap metal dealer shall keep a confidential register or log of each transaction, including a record of the information required by subsection 2. All records and information kept pursuant to this subsection shall be retained for at least two years, and shall be provided to a law enforcement agency upon request during normal business hours when the law enforcement agency has reasonable grounds to request such information as part of a criminal investigation. A law enforcement agency shall preserve the confidentiality of the information provided under this subsection and shall not disclose it to a third party, except as may be necessary in the prosecution of a criminal violation.
   4.  The following scrap metal transactions are exempt from the requirements of this section:
   a.  Transactions in which the total sale price is fifty dollars or less, except transactions for the sale of catalytic converters.
   b.  Transactions for the sale of catalytic converters in which the total sale price is seventy-five dollars or less.
   c.  Transactions in which a scrap metal dealer is selling scrap metal.
   d.  Transactions in which the person selling the scrap metal is known to the scrap metal dealer purchasing the scrap metal to be the officer, employee, or agent of an established commercial or industrial business, operating from a fixed location, that may reasonably be expected to produce scrap metal during the operation of the business.
   5.  A person who violates this section is guilty of a simple misdemeanor punishable as a scheduled violation pursuant to section 805.8C, subsection 9. However, a person who violates this section three or more times within a two-year period is guilty of a serious misdemeanor.
    Sec. 2.  Section 805.8C, Code 2011, is amended by adding the following new subsection:
   NEW SUBSECTION.  9.  For first offense violations of section 714.27, the scheduled fine is two hundred fifty dollars.
EXPLANATION
   This bill relates to scrap metal sales.
   The bill prohibits persons from selling scrap metal to a scrap metal dealer without providing identification and certain information such as a permanent address during an initial sale. Less information is required for subsequent transactions. The bill specifically provides that scrap metal does not include a motor vehicle, but does include a catalytic converter detached from a motor vehicle.
   The bill exempts certain transactions of small dollar amounts and transactions in which the person selling the scrap metal is a scrap metal dealer or in which the person selling is known to the scrap metal dealer as an established business that generates scrap metal.
   The bill requires scrap metal dealers to maintain a confidential log of each transaction and keep records of transactions for at least two years and to provide that information to law enforcement agencies upon request and upon reasonable grounds.
   The bill imposes criminal penalties for violations. A person who violates the Code chapter is guilty of a simple misdemeanor. A simple misdemeanor is punishable by confinement for no more than 30 days or, ordinarily, a fine of at least $65 but not more than $625 or by both. However, the bill specifies a first offense scheduled violation fine of $250. In the event a person violates the Code chapter three or more times within a two-year period, that person is guilty of a serious misdemeanor. 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.