Bill Text: AZ HB2395 | 2012 | Fiftieth Legislature 2nd Regular | Engrossed
Bill Title: Scrap metal dealers; prohibited transactions [Track Bill]
Status: 2012-03-14 - Referred to Senate JUD Committee [HB2395 Detail]
State of Arizona
House of Representatives
Second Regular Session
HOUSE BILL 2395
amending sections 44-1642 and 44‑1642.01, Arizona Revised Statutes; relating to scrap metal dealers.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 44-1642, Arizona Revised Statutes, is amended to read:
44-1642. Records of purchase; transaction limitations; age requirement for scrap metal seller; exception
A. Every scrap metal dealer shall keep on the business premises a book or other similar record legibly printed or written in ink, in the English language of each transaction exceeding twenty‑five dollars involving the receipt of scrap metal. The record of each receipt of scrap metal shall include the following information:
1. The date, time and place of the transaction.
2. A photograph and an identifying description and weight of the specific scrap metal received.
3. The dollar amount of the transaction.
4. The seller's name, physical description including gender, height, weight, race and eye and hair color, physical address, date of birth, signature and a photocopy of a current driver license, nonoperating identification license issued pursuant to section 28‑3165 or photo identification card issued by a tribal government or the United States military. The scrap metal dealer must validate the recorded information by using the seller's current driver license, nonoperating identification license issued pursuant to section 28‑3165 or photo identification card issued by a tribal government or the United States military.
5. The seller's transaction privilege tax number, if applicable.
6. The number and state of issuance of the license on the vehicle used to deliver the scrap metal.
7. A photograph, video record or digital record of the seller involved in the transaction.
8. A right index fingerprint of the seller.
B. The record and entries shall be retained in a book or similar record at the business premises for one year after making the final entry of any transaction and shall be retained either at the business premises or any other reasonably available location for an additional year. A scrap metal dealer shall not purchase materials for which a record is required to be kept by this section in a series of purchases under twenty-five dollars to avoid the requirements of this section. A scrap metal dealer's business premises, business records relating to scrap metal transactions, including a book or similar record prescribed by this section, and business inventory shall be open during regular business hours for reasonable inspection by a peace officer. Before an inspection shall take place a peace officer shall first identify himself and the purpose for the inspection to the scrap metal dealer, dealer's manager or other responsible person and comply with all reasonable and customary safety requirements of that scrap metal dealer for the business premises inspected. The scrap metal dealer may require the peace officer to sign an inspection log that includes the officer's name and serial or badge number and the time, the date and the purpose for the inspection.
C. A scrap metal dealer shall not provide payment for any scrap metal on site at the time of the scrap metal transaction. Payment shall be made by mailing a check or money order to a physical address provided by the seller through a current driver license or other identification prescribed in subsection A, paragraph 4 of this section. The check or money order shall be made payable to the business name for an industrial account. This subsection:
1. Except as provided in paragraphs 2 and 3 of this subsection, only applies to industrial accounts, copper and aluminum wire with a diameter of at least three-eighths of an inch.
2. Except as provided in paragraph 3 of this subsection, applies to all scrap metal transactions of three hundred dollars or more.
3. Does not apply to industrial accounts if the industrial accounts annually preregister employees who are authorized sellers on behalf of the industrial accounts.
D. A scrap metal dealer shall provide a receipt to the seller on site at the time of the scrap metal transaction, for every transaction, and shall include the following information:
1. The date, time and place of the transaction.
2. An identifying description and weight of the specific scrap metal received.
3. The dollar amount of the transaction.
E. A scrap metal seller may not conduct a series of transactions for one vehicle load of scrap metal to avoid the requirements of this section.
F. A scrap metal seller shall not participate in more than one cash transaction per day for scrap metal.
G. A scrap metal seller shall be at least sixteen years old.
H. This section does not apply to transactions involving used aluminum beverage containers or materials consisting of a metal product in its original manufactured form that is comprised of no more than twenty per cent by weight nonferrous metal.
Sec. 2. Section 44-1642.01, Arizona Revised Statutes, is amended to read:
44-1642.01. Prohibited scrap metal transactions; exceptions
A. A scrap metal dealer shall not knowingly purchase the following types of scrap metal in its original manufactured form:
1. Metal manhole covers that are used to cover street or alley service personnel access entrances to municipal sewers and storm drains.
2. Brass or bronze valves or fittings that are commonly used on structures for access to water for the purpose of extinguishing fires.
3. Brass or bronze commercial potable water backflow preventer valves that are valves commonly used to prevent backflow of potable water into municipal domestic water service systems from commercial structures.
4. Water meters that are used for measurement of the use and consumption of domestic water.
5. Aluminum trench shoring that is commonly used for shoring below ground trenches and excavations for the construction of buildings and structures.
6. Aluminum loading ramps that are manufactured and used for loading motor vehicles for hauling the motor vehicles.
7. Aluminum or stainless steel beer or malt beverage kegs that are commonly used by brewers or producers for the sale and transportation of beer or malt beverages.
8. Catalytic converters. For the purposes of this paragraph, "catalytic converters" means motor vehicle exhaust system parts that are used for controlling the exhaust emissions from motor vehicles and that contain a catalyst metal.
B. This section does not apply to or prohibit the purchase or possession of the types of items listed in subsection A and that are acquired in transactions with industrial accounts, with other scrap metal dealers or after the scrap metal is authorized for release by a peace officer of that jurisdiction.
C. A scrap metal dealer shall not knowingly purchase commercial air conditioner cooling coils or compressors, unless the air conditioner cooling coils or compressors are purchased from an industrial account or as part of a complete air conditioner or cooling unit.
Sec. 3. Joint legislative study committee on metal theft
A. The joint legislative study committee on metal theft is established consisting of the following members:
1. Three members of the senate appointed by the president of the senate, no more than two of whom are from the same political party.
2. Three members of the house of representatives appointed by the speaker of the house of representatives, no more than two of whom are from the same political party.
3. One member who is appointed by the speaker of the house of representatives and represents law enforcement from a city or town.
4. The attorney general or the attorney general's designee.
5. One member representing a national association of industrial and office properties appointed by the speaker of the house of representatives.
6. One member representing a national association of small businesses appointed by the president of the senate.
7. One member representing a public service corporation regulated by the Arizona corporation commission or a public power entity in this state appointed by the speaker of the house of representatives.
8. One member representing an institute of scrap recycling industries of national recognition appointed by the president of the senate.
9. Two members representing a business that recycles scrap metal, one appointed by the president of the senate and one by the speaker of the house of representatives.
B. The study committee shall research and report on the following:
1. The effectiveness of current state and local rules governing scrap metal recycling in Arizona.
2. The impact of metal theft on Arizona businesses.
3. The regulations of the scrap metal industry in other states, the related attributable impact of those provisions on the incidence of metal theft in those states and the commercial impact of the burden placed on the scrap metal dealers in those states.
C. The legislature shall provide staff to the committee.
D. On or before December 31, 2012, the study committee shall submit a report regarding its findings and recommendations to the governor, the president of the senate and the speaker of the house of representatives and provide a copy of its report to the secretary of state and the director of the Arizona state library, archives and public records.
E. This section is repealed from and after September 30, 2013.