Senate File 2450 - Introduced SENATE FILE 2450 BY COMMITTEE ON COMMERCE (SUCCESSOR TO SSB 3104) A BILL FOR An Act relating to scrap metal transactions including 1 establishing an application and permit system to sell scrap 2 metal and telecommunications copper, and making penalties 3 applicable. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 5815SV (1) 91 as/ko

S.F. 2450 Section 1. Section 714.27, Code 2026, is amended to read as 1 follows: 2 714.27 Scrap metal transactions and reporting —— penalties. 3 1. For purposes of this section , and unless the context 4 otherwise requires, the following definitions shall apply: 5 a. “Scrap metal” means any metal suitable for reprocessing. 6 “Scrap metal” does not include telecommunications copper, a 7 motor vehicle , or a catalytic converter detached from a motor 8 vehicle. 9 b. “Scrap metal dealer” means any person operating a 10 business at a fixed or mobile location that is engaged in one 11 of the following activities: 12 (1) Buying, selling, procuring, collecting, gathering, 13 soliciting, or dealing in scrap metal. 14 (2) Operating, managing, or maintaining a scrap metal yard. 15 c. “Scrap metal yard” means any yard, plot, space, 16 enclosure, building, mobile facility, or other place where 17 scrap metal is collected, gathered together, stored, or kept 18 for shipment, sale, or transfer. 19 d. “Telecommunications copper” means copper or copper 20 alloy wire, cable, tubing, or related materials that bear 21 evidence of being or are reasonably likely to be components 22 of telecommunications or broadband network equipment, 23 including materials with telecommunications company markings, 24 industry-standard insulation colors for telecommunications 25 wiring, attached telecommunications connectors or terminations, 26 or evidence of recent removal from telecommunications 27 infrastructure. 28 2. a. A person shall not sell scrap metal to a scrap metal 29 dealer in this state unless the person provides to the scrap 30 metal dealer, at or before the time of sale, the person’s name, 31 address, and place of business, if any, and presents to the 32 scrap metal dealer a valid driver’s license or nonoperator’s 33 identification card, military identification card, passport, or 34 other government-issued photo identification. 35 -1- LSB 5815SV (1) 91 as/ko 1/ 6

S.F. 2450 b. A scrap metal dealer shall not make an initial purchase 1 of scrap metal from a person without demanding and receiving 2 the information required by this subsection . However, after an 3 initial transaction, a scrap metal dealer may only require the 4 person’s name and place of business for subsequent purchases, 5 provided the scrap metal dealer retains all information 6 received during the initial transaction. 7 3. a. A person who is a resident of Iowa shall not 8 sell telecommunications copper to a scrap metal dealer in 9 this state unless the person has obtained a permit to sell 10 telecommunications copper from the sheriff of the county in 11 which the person resides. A person who is not a resident of 12 Iowa shall not sell telecommunications copper to a scrap metal 13 dealer in this state unless the person has obtained a permit to 14 sell telecommunications copper from a sheriff located anywhere 15 in the state. The sheriff shall issue a permit to the person 16 if all of the following apply: 17 (1) The person has not been convicted of a violation of this 18 section more than two times. 19 (2) The person declares on an application provided by the 20 sheriff that the person is informed of and will comply with 21 this section. 22 (3) The person pays a permit fee of not more than five 23 dollars. 24 b. The state patrol of the department of public safety shall 25 develop an application and permit in consultation with county 26 sheriffs and scrap metal dealers. All sheriffs shall use the 27 application and permit developed by the state patrol. 28 c. A permit is valid statewide and expires on the person’s 29 birth date on the second calendar year after the calendar 30 year in which the permit is issued, or, if the permittee is 31 an entity, the permit expires on the date of issuance on the 32 second calendar year after the calendar year in which the 33 permit was issued. 34 d. A sheriff may investigate a person’s or entity’s 35 -2- LSB 5815SV (1) 91 as/ko 2/ 6

S.F. 2450 background prior to issuing a permit for purposes of 1 determining if the person or entity qualifies to be issued a 2 permit. Notwithstanding paragraph “a” , a permit may be denied, 3 suspended, or revoked at any time if a sheriff discovers that 4 information on an application is inaccurate, the person or 5 entity fails to comply with this section, or the person or 6 entity is convicted of a violation of this section or section 7 716.11. 8 e. A sheriff shall keep a record of all permits issued 9 containing, at a minimum, the date of issuance, the name and 10 address of the person or entity, a photocopy of the person’s 11 identification or of the entity’s employee’s identification, 12 and a photograph of the person or of the entity’s employee. 13 3. 4. A scrap metal dealer shall keep a confidential 14 register or log of each transaction, including a record 15 of the information required by subsection 2 . All records 16 and information kept pursuant to this subsection shall be 17 retained for at least two years, and shall be provided to a 18 law enforcement agency or other officer or employee designated 19 by a county or city to enforce this section upon request 20 during normal business hours when the law enforcement agency 21 or designated officer or employee of a county or city has 22 reasonable grounds to request such information as part of 23 an investigation. A law enforcement agency or designated 24 officer or employee of a county or city shall preserve the 25 confidentiality of the information provided under this 26 subsection and shall not disclose it to a third party, except 27 as may be necessary in enforcement of this section or the 28 prosecution of a criminal violation. 29 4. 5. All scrap metal transactions, other than those 30 transactions exempt pursuant to subsection 5 , in which the 31 total sale price exceeds fifty dollars shall require payment by 32 check or electronic funds transfer. 33 5. 6. The following scrap metal transactions are exempt 34 from the requirements of this section : 35 -3- LSB 5815SV (1) 91 as/ko 3/ 6

S.F. 2450 a. Transactions in which the total sale price is fifty 1 dollars or less. 2 b. Transactions in which a scrap metal dealer is selling 3 scrap metal. 4 c. Transactions in which the person selling the scrap 5 metal is known to the scrap metal dealer purchasing the scrap 6 metal to be the officer, employee, or agent of an established 7 commercial or industrial business, operating from a fixed 8 location, that may reasonably be expected to produce scrap 9 metal during the operation of the business. 10 6. 7. a. The provisions of this section shall take 11 precedence over and supersede any local ordinance adopted by a 12 political subdivision that regulates scrap metal transactions. 13 b. Notwithstanding paragraph “a” of this subsection , a city 14 ordinance regarding scrap metal or other scrap material in 15 effect prior to January 1, 2012, in a city with a population 16 exceeding one hundred fifty thousand as shown by the 2010 17 federal decennial census may continue to be enforced by the 18 city which adopted it. 19 7. 8. A person who violates subsection 2 3 , paragraph “a” , 20 or a person who conducts a scrap metal transaction by or on 21 behalf of a scrap metal dealer who violates this section shall 22 be subject to a civil penalty as follows: 23 a. An initial violation shall subject the person to a civil 24 penalty in the amount of one hundred dollars. 25 b. A second violation within two years shall subject 26 the person to a civil penalty in the amount of five hundred 27 dollars. 28 c. A third or subsequent violation within two years shall 29 subject the person to a civil penalty in the amount of one 30 thousand dollars. 31 EXPLANATION 32 The inclusion of this explanation does not constitute agreement with 33 the explanation’s substance by the members of the general assembly. 34 This bill relates to scrap metal transactions including 35 -4- LSB 5815SV (1) 91 as/ko 4/ 6

S.F. 2450 establishing an application and permit system to sell scrap 1 metal and telecommunications copper. 2 The bill provides that a person who is a resident of Iowa 3 shall not sell telecommunications copper to a scrap metal 4 dealer in this state unless the person has obtained a permit to 5 sell telecommunications copper from the sheriff of the county 6 in which the person resides. A person who is not a resident of 7 Iowa shall not sell telecommunications copper to a scrap metal 8 dealer in this state unless the person has obtained a permit to 9 sell telecommunications copper from a sheriff located anywhere 10 in the state. The sheriff shall issue a permit to the person if 11 all of the following apply: the person has not been convicted 12 of a violation of the bill more than two times; the person 13 declares on an application provided by the sheriff that the 14 person is informed of and will comply with the bill; and the 15 person pays a permit fee of not more than $5. 16 The state patrol of the department of public safety is 17 directed to develop an application and permit in consultation 18 with county sheriffs and scrap metal dealers. All sheriffs 19 shall use the application and permit developed by the state 20 patrol. A permit is valid statewide and expires on the 21 person’s birth date on the second calendar year after the 22 calendar year in which the permit is issued, or, if the 23 permittee is an entity, the permit expires on the date of 24 issuance on the second calendar year after the calendar year 25 in which the permit was issued. 26 The bill provides that a sheriff may investigate a person’s 27 or entity’s background prior to issuing a permit for purposes 28 of determining if the person or entity qualifies to be issued a 29 permit. A permit may be denied, suspended, or revoked at any 30 time if a sheriff discovers that information on an application 31 is inaccurate, the person or entity fails to comply with the 32 bill, or the person or entity is convicted of a violation of 33 the bill or Code section 716.11. 34 The bill requires that a sheriff is required to keep a record 35 -5- LSB 5815SV (1) 91 as/ko 5/ 6

S.F. 2450 of all scrap metal permits issued containing, at a minimum, the 1 date of issuance, the name and address of the person or entity, 2 a photocopy of the person’s identification or of the entity’s 3 employee’s identification, and a photograph of the person or of 4 the entity’s employee. 5 The bill makes conforming changes related to renumbering. 6 -6- LSB 5815SV (1) 91 as/ko 6/ 6