House
Study
Bill
686
-
Introduced
HOUSE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
COMMERCE
BILL
BY
CHAIRPERSON
LUNDGREN)
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
6156YC
(2)
89
th/ns
H.F.
_____
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
6156YC
(2)
89
th/ns
1/
2
H.F.
_____
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
6156YC
(2)
89
th/ns
2/
2