Bill Text: IA HF2707 | 2023-2024 | 90th General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: A bill for an act relating to transactions involving used catalytic converters. (Formerly HSB 751.) Effective date: 07/01/2024.

Spectrum: Committee Bill

Status: (Passed) 2024-05-17 - Signed by Governor. H.J. 941. [HF2707 Detail]

Download: Iowa-2023-HF2707-Introduced.html

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House File 2707 - Introduced
HOUSE FILE 2707
BY COMMITTEE ON WAYS AND MEANS
(SUCCESSOR TO HSB 751)
A BILL FOR
An Act relating to transactions involving used catalytic
converters.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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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
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H.F. 2707
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
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H.F. 2707
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.
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