Senate File 2287 - Reprinted SENATE FILE 2287 BY COMMITTEE ON COMMERCE (SUCCESSOR TO SSB 3088) (As Amended and Passed by the Senate March 2, 2022 ) A BILL FOR An Act relating to used catalytic converter transactions, 1 providing penalties, and making penalties applicable. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 SF 2287 (4) 89 th/ns/mb

S.F. 2287 Section 1. Section 714.1, subsection 4, Code 2022, is 1 amended to read as follows: 2 4. Exercises control over stolen property, knowing such 3 property to have been stolen, or having reasonable cause to 4 believe that such property has been stolen, unless the person’s 5 purpose is to promptly restore it to the owner or to deliver it 6 to an appropriate public officer. The fact that the person is 7 found in possession of property which has been stolen from two 8 or more persons on separate occasions, or that the person is a 9 dealer or other person familiar with the value of such property 10 and has acquired it for a consideration which is far below its 11 reasonable value, or that the person violated section 714.27A 12 in a transaction involving the property, shall be evidence 13 from which the court or jury may infer that the person knew or 14 believed that the property had been stolen. 15 Sec. 2. Section 714.27, subsection 1, paragraph a, Code 16 2022, is amended to read as follows: 17 a. “Scrap metal” means any metal suitable for reprocessing. 18 “Scrap metal” does not include a motor vehicle , but does include 19 or a catalytic converter detached from a motor vehicle. 20 Sec. 3. Section 714.27, subsection 5, paragraph a, Code 21 2022, is amended to read as follows: 22 a. Transactions in which the total sale price is fifty 23 dollars or less , except transactions for the sale of catalytic 24 converters . 25 Sec. 4. Section 714.27, subsection 5, paragraph b, Code 26 2022, is amended by striking the paragraph. 27 Sec. 5. NEW SECTION . 714.27A Used catalytic converter 28 transactions —— reporting —— penalties. 29 1. For purposes of this section: 30 a. “Business transaction” means an exchange of consideration 31 for a catalytic converter between a scrap metal dealer, as 32 defined in section 714.27, and another scrap metal dealer, 33 an authorized vehicle recycler licensed under chapter 321H 34 operating a business at a fixed location, a motor vehicle 35 -1- SF 2287 (4) 89 th/ns/mb 1/ 5

S.F. 2287 dealer licensed under chapter 322 operating a business at a 1 fixed location, a towable recreational vehicle dealer licensed 2 under chapter 322C operating a business at a fixed location, a 3 mechanic or an automotive repair facility operating a business 4 at a fixed location, or a person operating a similar business 5 at a fixed location in another state. 6 b. “Catalytic converter” means a catalytic converter that 7 was previously installed in a motor vehicle and subsequently 8 removed. 9 2. a. A person shall not sell a catalytic converter in 10 this state unless the person provides to the purchaser, at or 11 before the time of sale, the person’s name, address, and place 12 of business, if any, and presents to the purchaser a valid 13 driver’s license or nonoperator’s identification card, military 14 identification card, passport, or other government-issued photo 15 identification. 16 b. For a business transaction in which the person selling 17 the catalytic converter operates a business at a fixed location 18 in this state, the person shall provide to the purchaser a 19 copy of the person’s valid sales tax permit issued pursuant to 20 chapter 423. For a business transaction in which the person 21 selling the catalytic converter operates a business at a fixed 22 location in another state and is authorized to conduct a 23 business transaction in this state, the person shall provide 24 to the purchaser a copy of the person’s valid sales tax permit 25 issued pursuant to chapter 423, if the person has such a 26 permit, or a copy of the person’s valid business license or 27 permit from the other state. If a person is unable to provide 28 the documentation required in this paragraph, the person shall 29 instead comply with paragraph “c” . 30 c. For transactions other than business transactions, the 31 person selling the catalytic converter shall provide to the 32 purchaser an original receipt or invoice for a replacement 33 catalytic converter purchased fewer than thirty days before the 34 person sells the replaced catalytic converter, or a junking 35 -2- SF 2287 (4) 89 th/ns/mb 2/ 5

S.F. 2287 certificate for a vehicle that was issued fewer than thirty 1 days before the person sells the catalytic converter. 2 (1) The receipt, invoice, or junking certificate presented 3 by the person to the purchaser must be unmarked by a purchaser 4 pursuant to subsection 3. 5 (2) This paragraph does not apply to a transaction if the 6 person presents proof, unmarked pursuant to subsection 3, to 7 the purchaser that the sale is approved by the sheriff of the 8 county in which the vehicle from which the catalytic converter 9 was removed is registered. 10 3. a. A person shall not purchase a catalytic converter 11 from a seller without demanding and receiving the information 12 required by subsection 2. 13 b. A person who purchases a catalytic converter shall mark 14 the receipt, invoice, junking certificate, or proof of sheriff 15 approval presented under subsection 2 to indicate the catalytic 16 converter has been sold. The person shall take a photograph 17 of the catalytic converter that clearly identifies the item as 18 a catalytic converter. 19 c. A person who purchases a catalytic converter shall have a 20 residence or fixed business address within this state. 21 4. A person who purchases a catalytic converter shall keep 22 a confidential register or log of each transaction, including a 23 copy of the information required by subsections 2, 3, and 5. 24 All records and information kept pursuant to this subsection 25 shall be retained for at least two years, and shall be provided 26 to a law enforcement agency or other officer or employee 27 designated by a county or city to enforce this section upon 28 request during normal business hours when the law enforcement 29 agency or designated officer or employee of a county or city 30 has reasonable grounds to request such information as part 31 of an investigation. A law enforcement agency or designated 32 officer or employee of a county or city shall preserve the 33 confidentiality of the information provided under this 34 subsection and shall not disclose it to a third party, except 35 -3- SF 2287 (4) 89 th/ns/mb 3/ 5

S.F. 2287 as may be necessary in enforcement of this section or the 1 prosecution of a criminal violation. 2 5. A transaction under this section shall be made by check 3 or electronic funds transfer. 4 6. A person, including a person who conducts a business 5 transaction on behalf of another person, who violates this 6 section shall be subject to a civil penalty as follows: 7 a. For an initial violation, one thousand dollars. 8 b. For a second violation within two years, five thousand 9 dollars. 10 c. For a third or subsequent violation within two years, ten 11 thousand dollars. 12 7. Proof that a person, including a person who conducted 13 a business transaction on behalf of another person, violated 14 subsection 2 or 3 shall be evidence from which the court or 15 jury may infer any of the following: 16 a. The person aided and abetted the underlying theft of the 17 catalytic converter involved in the transaction from a vehicle, 18 under section 703.1. 19 b. The person had knowledge that a public offense has been 20 committed and that a certain person committed it, for purposes 21 of proving the person acted as an accessory after the fact 22 under section 703.3. 23 Sec. 6. Section 805.8C, Code 2022, is amended by adding the 24 following new subsection: 25 NEW SUBSECTION . 10A. Used catalytic converter transaction 26 violations. For violations of section 714.27A, the scheduled 27 fine is one thousand dollars for a first violation, five 28 thousand dollars for a second violation within two years, 29 and ten thousand dollars for a third or subsequent violation 30 within two years. The scheduled fine under this subsection 31 is a civil penalty which shall be deposited into the general 32 fund of the county or city if imposed by a designated officer 33 or employee of a county or city, or deposited in the general 34 fund of the state if imposed by a state agency, and the crime 35 -4- SF 2287 (4) 89 th/ns/mb 4/ 5

S.F. 2287 services surcharge under section 911.1 shall not be added to 1 the penalty. 2 -5- SF 2287 (4) 89 th/ns/mb 5/ 5