House File 2387 - Introduced HOUSE FILE 2387 BY COMMITTEE ON COMMERCE (SUCCESSOR TO HSB 686) A BILL FOR An Act relating to sales of catalytic converters to scrap metal 1 dealers, and making penalties applicable. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 6156HV (1) 89 th/ns

H.F. 2387 Section 1. Section 714.27, subsection 2, Code 2022, is 1 amended to read as follows: 2 2. a. A person shall not sell scrap metal to a scrap metal 3 dealer in this state unless the person provides to the scrap 4 metal dealer, at or before the time of sale, the person’s name, 5 address, and place of business, if any, and presents to the 6 scrap metal dealer a valid driver’s license or nonoperator’s 7 identification card, military identification card, passport, 8 or other government-issued photo identification. If the 9 scrap metal is a catalytic converter, the person shall sign a 10 statement swearing or affirming that the catalytic converter is 11 owned by the person and that the catalytic converter was not 12 taken from a vehicle without the vehicle owner’s consent, and 13 shall submit the statement to the scrap metal dealer. 14 b. (1) A scrap metal dealer shall not make an initial a 15 purchase of scrap metal from a person without demanding and 16 receiving the information required by this subsection . 17 (2) However, after an initial transaction, a scrap metal 18 dealer may only require the person’s name and place of 19 business for subsequent purchases, provided the scrap metal 20 dealer retains all information received during the initial 21 transaction. This subparagraph does not apply to transactions 22 involving a catalytic converter. 23 Sec. 2. Section 714.27, subsection 5, paragraph b, Code 24 2022, is amended by striking the paragraph. 25 EXPLANATION 26 The inclusion of this explanation does not constitute agreement with 27 the explanation’s substance by the members of the general assembly. 28 Under current law, a person is prohibited from selling scrap 29 metal, which includes a catalytic converter detached from 30 a motor vehicle, to a scrap metal dealer unless the person 31 provides to the scrap metal dealer, at or before the time 32 of sale, the person’s name, address, and place of business, 33 if any, and presents to the scrap metal dealer a valid 34 government-issued photo identification. A scrap metal dealer 35 -1- LSB 6156HV (1) 89 th/ns 1/ 2

H.F. 2387 is required to keep a confidential register or log of each 1 transaction, including a record of the required information 2 provided by the seller. All records and information must be 3 retained for at least two years, and must be provided to a law 4 enforcement agency or other officer or employee designated by 5 a county or city upon request during normal business hours as 6 part of an investigation. A scrap metal dealer is prohibited 7 from making an initial purchase of scrap metal from a person 8 without demanding and receiving the required transaction 9 information. However, after an initial transaction, a scrap 10 metal dealer may only require the person’s name and place of 11 business for subsequent purchases, provided the scrap metal 12 dealer retains all information received during the initial 13 transaction. A person who violates these provisions is subject 14 to a civil penalty of between $100 and $1,000. 15 This bill requires a person selling a catalytic converter 16 to sign a statement swearing or affirming that the catalytic 17 converter is owned by the person and that the catalytic 18 converter was not taken from a vehicle without the vehicle 19 owner’s consent. The seller must submit the statement to the 20 scrap metal dealer. 21 The bill requires a scrap metal dealer to demand and receive 22 the required information for every transaction involving a 23 catalytic converter. 24 Under current law, transactions for the sale of catalytic 25 converters in which the total sale price is $75 or less 26 are exempt from the scrap metal transaction information and 27 recordkeeping requirements. The bill strikes this exemption, 28 thereby applying the bill and the provisions of Code section 29 714.27 to any sale of a catalytic converter. 30 -2- LSB 6156HV (1) 89 th/ns 2/ 2