SSB 3206 (LSB 6399XC (1) 90)

SENATE FILE _____ 

BY  (PROPOSED COMMITTEE ON WAYS AND MEANS BILL BY CHAIRPERSON DAWSON)

A BILL FOR

An Act relating to transactions involving used catalytic converters.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 714.27A, subsection 2, paragraphs b and c, Code 2024, are amended to read as follows:
   b.  For a business transaction in which the person selling the catalytic converter operates a business at a fixed location in this state, the person shall provide to the purchaser a copy of the person’s valid sales tax permit issued pursuant to chapter 423 or a copy of the person’s valid business license or permit. For a business transaction in which the person selling the catalytic converter operates a business at a fixed location in another state and is authorized to conduct a business transaction in this state, the person shall provide to the purchaser a copy of the person’s valid sales tax permit issued pursuant to chapter 423, if the person has such a permit, or a copy of the person’s valid business license or permit from the other state. If a person is unable to provide the documentation required in this paragraph, the person shall instead comply with paragraph “c”.
   c.  For transactions other than business transactions, the person selling the catalytic converter shall provide to the purchaser an original receipt or invoice for a replacement catalytic converter purchased fewer than thirty days before the person sells the replaced catalytic converter, a signed affidavit attesting to the seller’s valid ownership of the catalytic converter, or a junking certificate for a vehicle that was issued fewer than thirty days before the person sells the catalytic converter.
   (1)  The receipt, invoice, affidavit, or junking certificate presented by the person to the purchaser must be unmarked by a purchaser pursuant to subsection 3.
   (2)  This paragraph does not apply to a transaction if the person presents proof, unmarked pursuant to subsection 3, to the purchaser that the sale is approved by the sheriff of the county in which the vehicle from which the catalytic converter was removed is registered.
    Sec. 2.  Section 714.27A, subsection 3, paragraph b, Code 2024, is amended to read as follows:
   b.  A person who purchases a catalytic converter shall mark the receipt, invoice, affidavit, junking certificate, or proof of sheriff approval presented under subsection 2 to indicate the catalytic converter has been sold. The person shall take a photograph of the catalytic converter that clearly identifies the item as a catalytic converter.
    Sec. 3.  Section 714.27A, subsection 6, unnumbered paragraph 1, Code 2024, is amended to read as follows:
   A person, including a person who conducts a business transaction on behalf of another person, who intentionally violates this section shall be subject to a civil penalty as follows:
    Sec. 4.  Section 714.27A, subsection 7, unnumbered paragraph 1, Code 2024, is amended to read as follows:
   Proof that a person, including a person who conducted a business transaction on behalf of another person, intentionally violated subsection 2 or 3 shall be evidence from which the court or jury may infer any of the following:
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   Under current law, for a business transaction, as defined in Code section 714.27A, in which the seller of a used catalytic converter operates a business at a fixed location in this state, the seller must provide to the purchaser a copy of the seller’s valid sales tax permit issued pursuant to Code chapter 423. This bill authorizes such a seller to alternatively provide a copy of the seller’s valid business license or permit. The seller of a catalytic converter operating a business at a fixed location in another state is authorized to provide a copy of the person’s valid business license or permit from the other state under current law.
   For transactions other than business transactions under current law, the person selling the used catalytic converter is required to provide to the purchaser an original receipt or invoice for a replacement catalytic converter purchased fewer than 30 days before the person sells the replaced catalytic converter, or a junking certificate for a vehicle that was issued fewer than 30 days before the person sells the catalytic converter. The bill authorizes a seller to provide a signed affidavit attesting to the seller’s valid ownership of the catalytic converter instead of the original receipt, invoice, or junking certificate. The bill requires a purchaser to mark an affidavit in the same manner the purchaser must mark other acceptable forms of proof of ownership under Code section 714.27A.
   Under current law, a person, including a person who conducts a business transaction on behalf of another person, who violates Code section 714.27A is subject to a civil penalty ranging from $1,000 to $10,000 based on the number of violations that occur within a two-year period. Proof that a person, including a person who conducted a business transaction on behalf of another person, violated Code section 714.27A(2) or 714.27A(3) is evidence from which the court or jury may infer culpability relating to the theft of a catalytic converter. The bill requires that a person must intentionally violate Code section 714.27A to be subject to the corresponding civil or criminal penalty, as applicable.