House File 2227 - Introduced HOUSE FILE 2227 BY McCONKEY , ANDERSON , GASKILL , KEARNS , STAED , and KAUFMANN A BILL FOR An Act relating to the requirements for scrap metal 1 transactions and reporting, and making civil penalties 2 applicable. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5521YH (7) 86 gh/nh

H.F. 2227 Section 1. Section 714.27, subsection 2, paragraph b, Code 1 2016, is amended to read as follows: 2 b. A scrap metal dealer shall not make an initial purchase 3 of scrap metal from a person without demanding and receiving 4 the information required by this subsection . However, after an 5 initial transaction, a scrap metal dealer may only require the 6 person’s name and place of business for subsequent purchases 7 of one hundred dollars or more , provided the scrap metal 8 dealer retains all information received during the initial 9 transaction. 10 Sec. 2. Section 714.27, subsection 3, Code 2016, is amended 11 to read as follows: 12 3. a. The department of public safety shall establish a 13 form for scrap metal dealers to record the information required 14 under subsection 2 for each scrap metal transaction. The form 15 shall require the scrap metal dealer to describe the form of 16 government-issued photo identification presented by the seller 17 to the scrap metal dealer at the time of the purchase. The 18 department of public safety shall consult with the Iowa state 19 sheriffs’ and deputies’ association and the Iowa police chiefs 20 association in establishing the form. 21 b. A scrap metal dealer shall keep a confidential register 22 or log of each transaction, including a record copy of the 23 information required by subsection 2 form described in 24 paragraph “a” . All records and information kept pursuant 25 to this subsection shall be retained for at least two years, 26 and shall be provided to a law enforcement agency or other 27 officer or employee designated by a county or city to enforce 28 this section upon request during normal business hours when 29 the law enforcement agency or designated officer or employee 30 of a county or city has reasonable grounds to request such 31 information as part of an investigation. A law enforcement 32 agency or designated officer or employee of a county or city 33 shall preserve the confidentiality of the information provided 34 under this subsection and shall not disclose it to a third 35 -1- LSB 5521YH (7) 86 gh/nh 1/ 3

H.F. 2227 party, except as may be necessary in enforcement of this 1 section or the prosecution of a criminal violation. 2 Sec. 3. Section 714.27, subsection 4, Code 2016, is amended 3 to read as follows: 4 4. All scrap metal transactions, other than those 5 transactions exempt pursuant to subsection 5 regardless of the 6 total sale price of the transaction , in which the total sale 7 price exceeds fifty dollars transaction involves nonferrous 8 scrap metal shall require payment by check or electronic 9 funds transfer. For purposes of this subsection, “nonferrous 10 scrap metal” means scrap metal that is not ferrous, including 11 alloys, and that does not contain iron. “Nonferrous scrap 12 metal” includes but is not limited to scrap metal consisting of 13 aluminum, copper, lead, nickel, tin, or brass. 14 Sec. 4. Section 714.27, subsection 5, unnumbered paragraph 15 1, Code 2016, is amended to read as follows: 16 The following scrap metal transactions are exempt from the 17 requirements of this section subsections 2 and 3 : 18 EXPLANATION 19 The inclusion of this explanation does not constitute agreement with 20 the explanation’s substance by the members of the general assembly. 21 This bill makes changes to the requirements for scrap metal 22 transactions and reporting. 23 Under current Code section 714.27, a person selling 24 scrap metal must present valid government-issued photo 25 identification. However, after an initial transaction, a 26 scrap metal dealer may only require a seller to provide their 27 name and place of business for subsequent purchases if the 28 dealer retains all information received during the initial 29 transaction. Scrap metal dealers must keep a log of each 30 scrap metal transaction, which must include the seller’s 31 identification information. All scrap metal transactions in 32 which the total sale price exceeds $50, subject to listed 33 exceptions, requires payment by check or electronic funds 34 transfer. 35 -2- LSB 5521YH (7) 86 gh/nh 2/ 3

H.F. 2227 The bill limits the exception allowing a scrap metal dealer 1 to only require a seller’s name and place of business for 2 subsequent purchases to only those subsequent purchases of $100 3 or more and if the dealer retains all information received 4 during the initial transaction. 5 The bill requires the department of public safety (DPS) to 6 establish a form for scrap metal dealers to use for recording 7 the information required for each scrap metal transaction, 8 which must require scrap metal dealers to describe the form of 9 identification presented by sellers. DPS must consult with the 10 Iowa state sheriffs’ and deputies’ association and the Iowa 11 police chiefs association in establishing the form. 12 The bill changes the requirement for scrap metal 13 transactions that require payment by check or electronic funds 14 transfer from transactions of $50 or more to transactions 15 involving nonferrous scrap metal as defined in the bill, 16 regardless of the total sale price of the transaction. 17 A person selling scrap metal or a scrap metal dealer who 18 violates the transaction and reporting requirements of the 19 bill is subject to a civil penalty in the amount of $100 for 20 an initial violation, $500 for a second violation within two 21 years, and $1,000 for a third or subsequent violation within 22 two years. 23 -3- LSB 5521YH (7) 86 gh/nh 3/ 3