Text: HSB659            Text: HSB661


House Study Bill 660

HOUSE FILE BY (PROPOSED COMMITTEE ON JUDICIARY BILL BY CHAIRPERSON SWAIM) Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to scrap metal transactions, prohibiting certain 2 sales, imposing criminal penalties, and providing an effective 3 date. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 6023HC 82 6 tw/nh/5 PAG LIN 1 1 Section 1. NEW SECTION. 80.43 SCRAP METAL TRANSACTIONS 1 2 AND REPORTING == PENALTIES. 1 3 1. DEFINITIONS. For purposes of this section, and unless 1 4 the context otherwise requires, the following definitions 1 5 shall apply: 1 6 a. "Scrap metal" means any of the following items where 1 7 the item is the subject of a transaction in which the purchase 1 8 price is based primarily on the value of the metal contained 1 9 in the item: 1 10 (1) Wire, cable, bars, ingots, wire scraps, pieces, 1 11 pellets, clamps, aircraft parts, pipes, or connectors made 1 12 from aluminum. For purposes of this subparagraph, "aluminum" 1 13 does not include food or beverage containers. 1 14 (2) Catalytic converters containing platinum, palladium, 1 15 or rhodium. 1 16 (3) Copper, titanium, tungsten, or nickel in any form. 1 17 (4) Metal beer kegs. 1 18 b. "Scrap metal dealer" means any person operating a 1 19 business at a fixed location that is engaged in one of the 1 20 following activities: 1 21 (1) Buying, selling, procuring, collecting, gathering, 1 22 soliciting, or dealing in scrap metal. 1 23 (2) Operating, managing, or maintaining a scrap metal 1 24 yard. 1 25 c. "Scrap metal yard" means any yard, plot, space, 1 26 enclosure, building, or other place where scrap metal is 1 27 collected, gathered together, stored, or kept for shipment, 1 28 sale, or transfer. 1 29 2. INFORMATION AND IDENTIFICATION REQUIRED. 1 30 a. A person shall not sell scrap metal to a scrap metal 1 31 dealer in this state unless the person provides to the scrap 1 32 metal dealer, at or before the time of sale, the person's 1 33 name, address, and place of business, if any, and presents to 1 34 the scrap metal dealer a valid driver's license or 1 35 nonoperator's identification card. 2 1 b. A scrap metal dealer shall not purchase scrap metal 2 2 without demanding and receiving the information required by 2 3 this subsection. 2 4 3. REGISTER OF TRANSACTIONS. A scrap metal dealer shall 2 5 keep a register or log of each transaction, including a record 2 6 of the information required by subsection 2, a description of 2 7 the item purchased, the price paid for the item, and a copy of 2 8 the driver's license or nonoperator's identification card 2 9 required pursuant to subsection 2. All records and 2 10 information kept pursuant to this subsection shall be retained 2 11 for at least two years, and a copy or computer printout of the 2 12 information shall be furnished to a law enforcement agency 2 13 upon request. 2 14 4. PAYMENT AND REPORTS. 2 15 a. A scrap metal dealer shall not provide payment to a 2 16 person selling scrap metal at the time of the transaction if 2 17 the transaction is for copper or aluminum wire with a diameter 2 18 of at least three=eighths of an inch or the value of the 2 19 transaction is more than three hundred dollars. Payment shall 2 20 instead be made by check or money order mailed to the person's 2 21 permanent home or business address as provided to the scrap 2 22 metal dealer pursuant to subsection 2. 2 23 b. A scrap metal dealer mailing payment for a transaction 2 24 pursuant to this subsection shall do both of the following: 2 25 (1) File a report with the department of public safety 2 26 noticing the receipt of the scrap metal. The report shall 2 27 include the details from the register or log of the 2 28 transaction required by subsection 3. 2 29 (2) Keep the scrap metal received in the physical custody 2 30 and control of the scrap metal dealer for at least seven days 2 31 after filing the report. 2 32 5. EXEMPTIONS. The following scrap metal transactions are 2 33 exempt from the requirements of this section: 2 34 a. Transactions in which the total sale price is fifty 2 35 dollars or less, except transactions for the sale of catalytic 3 1 converters. 3 2 b. Transactions for the sale of catalytic converters in 3 3 which the total sale price is thirty dollars or less. 3 4 c. Transactions in which a scrap metal dealer is selling 3 5 scrap metal. 3 6 d. Transactions in which the person selling the scrap 3 7 metal is known to the scrap metal dealer purchasing the scrap 3 8 metal to be the officer, employee, or agent of an established 3 9 business, operating from a fixed location, that may reasonably 3 10 be expected to produce scrap metal during the operation of the 3 11 business. 3 12 6. CRIMINAL PENALTIES. A person who violates this section 3 13 is guilty of a simple misdemeanor. However, a person who 3 14 violates this section three or more times within a two=year 3 15 period is guilty of a serious misdemeanor. 3 16 Sec. 2. EFFECTIVE DATE. This Act, being deemed of 3 17 immediate importance, takes effect upon enactment. 3 18 EXPLANATION 3 19 This bill relates to scrap metal sales. 3 20 The bill prohibits persons from selling scrap metal to a 3 21 scrap metal dealer without providing identification and 3 22 certain information such as a permanent address. 3 23 The bill prevents scrap metal dealers from making on the 3 24 spot payment to persons selling scrap metal if the transaction 3 25 is for more than $300 or if it is for copper or aluminum wire 3 26 three=eighths of an inch or more in size. 3 27 The bill exempts certain transactions of small dollar 3 28 amounts and transactions in which the person selling the scrap 3 29 metal is a scrap metal dealer or in which the person selling 3 30 is known to the scrap metal dealer as an established business 3 31 that generates scrap metal. 3 32 The bill requires scrap metal dealers to keep records of 3 33 transactions for at least two years and to provide that 3 34 information to law enforcement agencies upon request. 3 35 The bill imposes criminal penalties for violations. A 4 1 person who violates the Code chapter is guilty of a simple 4 2 misdemeanor, and a person who does so three or more times in a 4 3 two=year period is guilty of a serious misdemeanor. 4 4 A simple misdemeanor is punishable by confinement for no 4 5 more than 30 days or a fine of at least $65 but not more than 4 6 $625 or by both. 4 7 A serious misdemeanor is punishable by confinement for no 4 8 more than one year and a fine of at least $315 but not more 4 9 than $1,875. 4 10 LSB 6023HC 82 4 11 tw/nh/5
Text: HSB659            Text: HSB661