Bill Text: IA HF713 | 2023-2024 | 90th General Assembly | Introduced
Bill Title: A bill for an act relating to transactions involving used catalytic converters, and providing fees.(Formerly HSB 234.)
Spectrum: Committee Bill
Status: (Engrossed) 2024-04-17 - Subcommittee reassigned: Dawson, Dotzler, and Zaun. S.J. 892. [HF713 Detail]
Download: Iowa-2023-HF713-Introduced.html
House
File
713
-
Introduced
HOUSE
FILE
713
BY
COMMITTEE
ON
WAYS
AND
MEANS
(SUCCESSOR
TO
HSB
234)
A
BILL
FOR
An
Act
relating
to
transactions
involving
used
catalytic
1
converters,
and
providing
fees.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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713
Section
1.
Section
714.27A,
subsection
1,
paragraph
a,
Code
1
2023,
is
amended
to
read
as
follows:
2
a.
“Business
transaction”
means
an
exchange
of
consideration
3
for
a
catalytic
converter
between
a
scrap
metal
dealer,
as
4
defined
in
section
714.27
,
and
another
scrap
metal
dealer,
5
an
authorized
vehicle
recycler
licensed
under
chapter
321H
6
operating
a
business
at
a
fixed
location,
a
motor
vehicle
7
dealer
licensed
under
chapter
322
operating
a
business
at
a
8
fixed
location,
a
towable
recreational
vehicle
dealer
licensed
9
under
chapter
322C
operating
a
business
at
a
fixed
location,
a
10
mechanic
or
an
automotive
repair
facility
operating
a
business
11
at
a
fixed
location,
or
a
person
operating
a
similar
business
12
at
a
fixed
location
in
another
state
,
or
a
person
registered
13
as
an
authorized
seller
or
authorized
purchaser
with
the
14
department
of
revenue
.
15
Sec.
2.
Section
714.27A,
subsection
2,
paragraphs
b
and
c,
16
Code
2023,
are
amended
to
read
as
follows:
17
b.
For
a
business
transaction
in
which
the
person
selling
18
the
catalytic
converter
operates
a
business
at
a
fixed
location
19
in
this
state,
the
person
shall
provide
to
the
purchaser
a
20
copy
of
the
person’s
valid
sales
tax
permit
issued
pursuant
to
21
chapter
423
,
a
copy
of
the
person’s
valid
business
license
or
22
permit,
or
a
copy
of
the
person’s
certificate
of
registration
23
as
an
authorized
seller
.
For
a
business
transaction
in
which
24
the
person
selling
the
catalytic
converter
operates
a
business
25
at
a
fixed
location
in
another
state
and
is
authorized
to
26
conduct
a
business
transaction
in
this
state,
the
person
shall
27
provide
to
the
purchaser
a
copy
of
the
person’s
valid
sales
tax
28
permit
issued
pursuant
to
chapter
423
,
if
the
person
has
such
29
a
permit,
or
a
copy
of
the
person’s
valid
business
license
or
30
permit
from
the
other
state.
If
a
person
is
unable
to
provide
31
the
documentation
required
in
this
paragraph,
the
person
shall
32
instead
comply
with
paragraph
“c”
.
33
c.
For
transactions
other
than
business
transactions,
the
34
person
selling
the
catalytic
converter
shall
provide
to
the
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purchaser
an
original
receipt
or
invoice
for
a
replacement
1
catalytic
converter
purchased
fewer
than
thirty
days
before
2
the
person
sells
the
replaced
catalytic
converter,
a
signed
3
affidavit
attesting
to
the
seller’s
valid
ownership
of
the
4
catalytic
converter,
or
a
junking
certificate
for
a
vehicle
5
that
was
issued
fewer
than
thirty
days
before
the
person
sells
6
the
catalytic
converter.
7
(1)
The
receipt,
invoice,
affidavit,
or
junking
certificate
8
presented
by
the
person
to
the
purchaser
must
be
unmarked
by
a
9
purchaser
pursuant
to
subsection
3
.
10
(2)
This
paragraph
does
not
apply
to
a
transaction
if
the
11
person
presents
proof,
unmarked
pursuant
to
subsection
3
,
to
12
the
purchaser
that
the
sale
is
approved
by
the
sheriff
of
the
13
county
in
which
the
vehicle
from
which
the
catalytic
converter
14
was
removed
is
registered.
15
Sec.
3.
Section
714.27A,
subsection
3,
paragraph
b,
Code
16
2023,
is
amended
to
read
as
follows:
17
b.
A
person
who
purchases
a
catalytic
converter
shall
mark
18
the
receipt,
invoice,
affidavit,
junking
certificate,
or
proof
19
of
sheriff
approval
presented
under
subsection
2
to
indicate
20
the
catalytic
converter
has
been
sold.
The
person
shall
take
a
21
photograph
of
the
catalytic
converter
that
clearly
identifies
22
the
item
as
a
catalytic
converter.
23
Sec.
4.
Section
714.27A,
Code
2023,
is
amended
by
adding
the
24
following
new
subsection:
25
NEW
SUBSECTION
.
4A.
a.
A
person
may
register
as
an
26
authorized
seller
or
as
an
authorized
purchaser
with
the
27
department
of
revenue.
The
fee
for
an
authorized
seller
or
28
authorized
purchaser
registration
is
one
hundred
dollars
29
and
such
authorization
is
valid
for
one
year.
A
person
who
30
conducts
a
business
transaction
on
behalf
of
another
person
31
shall
be
considered
an
authorized
seller
or
authorized
32
purchaser
if
the
other
person
on
whose
behalf
the
person
33
is
conducting
the
transaction
is
an
authorized
seller
or
34
authorized
purchaser,
respectively.
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b.
The
fees
collected
under
this
subsection
shall
be
1
deposited
in
the
general
fund
of
the
state.
2
c.
The
department
of
revenue
shall
adopt
rules
pursuant
3
to
chapter
17A
to
implement
and
administer
this
subsection
4
including
but
not
limited
to
rules
requiring
a
person
applying
5
for
registration
as
an
authorized
seller
or
authorized
6
purchaser
to
provide
the
person’s
residential
address
or
7
business
address
at
a
fixed
location
and
rules
providing
for
8
issuance
of
a
certificate
of
registration
as
an
authorized
9
seller
or
authorized
purchaser.
10
Sec.
5.
Section
714.27A,
subsection
6,
unnumbered
paragraph
11
1,
Code
2023,
is
amended
to
read
as
follows:
12
A
person,
including
a
person
who
conducts
a
business
13
transaction
on
behalf
of
another
person,
who
intentionally
14
violates
this
section
shall
be
subject
to
a
civil
penalty
as
15
follows:
16
Sec.
6.
Section
714.27A,
subsection
7,
unnumbered
paragraph
17
1,
Code
2023,
is
amended
to
read
as
follows:
18
Proof
that
a
person,
including
a
person
who
conducted
a
19
business
transaction
on
behalf
of
another
person,
intentionally
20
violated
subsection
2
or
3
shall
be
evidence
from
which
the
21
court
or
jury
may
infer
any
of
the
following:
22
EXPLANATION
23
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
24
the
explanation’s
substance
by
the
members
of
the
general
assembly.
25
Under
current
law,
for
a
business
transaction,
as
defined
in
26
Code
section
714.27A,
in
which
the
seller
of
a
used
catalytic
27
converter
operates
a
business
at
a
fixed
location
in
this
28
state,
the
seller
must
provide
to
the
purchaser
a
copy
of
the
29
seller’s
valid
sales
tax
permit
issued
pursuant
to
Code
chapter
30
423.
This
bill
authorizes
such
a
seller
to
alternatively
31
provide
a
copy
of
the
seller’s
valid
business
license
or
32
permit
or
a
copy
of
the
person’s
certificate
of
registration
33
as
an
authorized
seller.
The
seller
of
a
catalytic
converter
34
operating
a
business
at
a
fixed
location
in
another
state
is
35
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authorized
to
provide
a
copy
of
the
person’s
valid
business
1
license
or
permit
from
the
other
state
under
current
law.
2
The
bill
adds
persons
registered
as
an
authorized
seller
or
3
authorized
purchaser
to
the
list
of
persons
eligible
to
conduct
4
a
business
transaction
involving
a
used
catalytic
converter.
5
A
person
may
become
an
authorized
seller
or
purchaser
by
6
registering
as
such
with
the
department
of
revenue
(DOR).
The
7
registration
fee
is
$100
and
the
authorization
is
valid
for
8
one
year.
The
fee
must
be
deposited
in
the
general
fund
of
9
the
state.
A
person
who
conducts
a
business
transaction
on
10
behalf
of
another
person
is
considered
an
authorized
seller
or
11
purchaser
if
the
other
person
on
whose
behalf
the
person
is
12
conducting
a
transaction
is
an
authorized
seller
or
purchaser.
13
DOR
is
required
to
adopt
administrative
rules
including
but
not
14
limited
to
rules
requiring
a
person
applying
for
registration
15
as
an
authorized
seller
or
purchaser
to
provide
the
person’s
16
residential
address
or
business
address
at
a
fixed
location
and
17
rules
providing
for
issuance
of
a
certificate
of
registration
18
as
an
authorized
seller
or
purchaser.
19
For
transactions
other
than
business
transactions
under
20
current
law,
the
person
selling
the
used
catalytic
converter
21
is
required
to
provide
to
the
purchaser
an
original
receipt
or
22
invoice
for
a
replacement
catalytic
converter
purchased
fewer
23
than
30
days
before
the
person
sells
the
replaced
catalytic
24
converter,
or
a
junking
certificate
for
a
vehicle
that
was
25
issued
fewer
than
30
days
before
the
person
sells
the
catalytic
26
converter.
The
bill
authorizes
a
seller
to
provide
a
signed
27
affidavit
attesting
to
the
seller’s
valid
ownership
of
the
28
catalytic
converter
instead
of
the
original
receipt,
invoice,
29
or
junking
certificate.
The
bill
requires
a
purchaser
to
mark
30
an
affidavit
in
the
same
manner
the
purchaser
must
mark
other
31
acceptable
forms
of
proof
of
ownership
under
Code
section
32
714.27A.
33
Under
current
law,
a
person,
including
a
person
who
34
conducts
a
business
transaction
on
behalf
of
another
person,
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who
violates
Code
section
714.27A
is
subject
to
a
civil
1
penalty
ranging
from
$1,000
to
$10,000
based
on
the
number
2
of
violations
that
occur
within
a
two-year
period.
Proof
3
that
a
person,
including
a
person
who
conducted
a
business
4
transaction
on
behalf
of
another
person,
violated
Code
section
5
714.27A(2)
or
714.27A(3)
is
evidence
from
which
the
court
or
6
jury
may
infer
culpability
relating
to
the
theft
of
a
catalytic
7
converter.
The
bill
requires
that
a
person
must
intentionally
8
violate
Code
section
714.27A
to
be
subject
to
the
corresponding
9
civil
or
criminal
penalty,
as
applicable.
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