Bill Text: IA SSB3088 | 2021-2022 | 89th General Assembly | Introduced
Bill Title: A bill for an act relating to scrap metal transactions, including by regulating the sale of catalytic converters to scrap metal dealers and providing for recordkeeping requirements, providing penalties, and making penalties applicable.(See SF 2287.)
Spectrum: Committee Bill
Status: (Introduced - Dead) 2022-02-14 - Committee report approving bill, renumbered as SF 2287. [SSB3088 Detail]
Download: Iowa-2021-SSB3088-Introduced.html
Senate
Study
Bill
3088
-
Introduced
SENATE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
COMMERCE
BILL
BY
CHAIRPERSON
SCHULTZ)
A
BILL
FOR
An
Act
relating
to
scrap
metal
transactions,
including
by
1
regulating
the
sale
of
catalytic
converters
to
scrap
metal
2
dealers
and
providing
for
recordkeeping
requirements,
3
providing
penalties,
and
making
penalties
applicable.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
5
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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
is
a
scrap
metal
dealer
12
and
has
violated
section
714.27,
subsection
2,
paragraph
“b”
,
13
in
a
transaction
involving
the
property,
shall
be
evidence
14
from
which
the
court
or
jury
may
infer
that
the
person
knew
or
15
believed
that
the
property
had
been
stolen.
16
Sec.
2.
Section
714.27,
subsections
2,
4,
5,
6,
and
7,
Code
17
2022,
are
amended
to
read
as
follows:
18
2.
a.
A
person
shall
not
sell
scrap
metal
to
a
scrap
metal
19
dealer
in
this
state
unless
the
person
provides
to
the
scrap
20
metal
dealer,
at
or
before
the
time
of
sale,
the
person’s
name,
21
address,
and
place
of
business,
if
any,
and
presents
to
the
22
scrap
metal
dealer
a
all
of
the
following:
23
(1)
The
person’s
valid
driver’s
license
or
nonoperator’s
24
identification
card,
military
identification
card,
passport,
or
25
other
government-issued
photo
identification.
26
(2)
For
transactions
involving
the
sale
of
a
catalytic
27
converter,
an
original
receipt
or
invoice
for
a
replacement
28
catalytic
converter
purchased
fewer
than
thirty
days
before
29
the
person
sells
the
replaced
catalytic
converter
to
the
scrap
30
metal
dealer,
or
a
junking
certificate
for
a
vehicle
that
was
31
issued
fewer
than
thirty
days
before
the
person
sells
the
32
catalytic
converter
to
the
scrap
metal
dealer.
The
receipt,
33
invoice,
or
junking
certificate
presented
by
the
person
to
the
34
scrap
metal
dealer
must
be
unmarked
by
a
scrap
metal
dealer
35
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pursuant
to
paragraph
“b”
.
This
subparagraph
does
not
apply
to
1
a
transaction
if
the
person
presents
proof
to
the
scrap
metal
2
dealer
that
the
sale
is
approved
by
the
sheriff
of
the
county
3
in
which
the
vehicle
from
which
the
catalytic
converter
was
4
removed
is
registered.
5
b.
(1)
A
scrap
metal
dealer
shall
not
make
an
initial
6
purchase
of
scrap
metal
from
a
person
without
demanding
7
and
receiving
the
information
required
by
this
subsection
.
8
However,
after
an
initial
transaction,
a
scrap
metal
dealer
9
may
only
require
the
person’s
name
and
place
of
business
waive
10
the
requirement
that
the
person
present
an
address
and
photo
11
identification
for
subsequent
purchases,
provided
the
scrap
12
metal
dealer
retains
all
information
received
during
the
13
initial
transaction.
14
(2)
On
the
purchase
of
a
catalytic
converter,
a
scrap
metal
15
dealer
shall
mark
the
receipt,
invoice,
or
junking
certificate
16
presented
under
paragraph
“a”
to
indicate
the
catalytic
17
converter
has
been
sold.
18
(3)
A
scrap
metal
dealer
shall
reasonably
verify
that
a
19
catalytic
converter
being
offered
for
sale
is
appropriate
20
for
the
type
of
vehicle
for
which
the
replacement
catalytic
21
converter
was
purchased
as
shown
on
the
receipt
or
invoice,
or
22
is
appropriate
for
the
type
of
vehicle
for
which
the
junking
23
certificate
was
issued,
as
applicable.
24
4.
All
scrap
metal
transactions,
other
than
those
25
transactions
exempt
pursuant
to
subsection
5
,
in
which
the
26
total
sale
price
exceeds
fifty
dollars
shall
require
payment
by
27
check
or
electronic
funds
transfer.
28
5.
The
following
scrap
metal
transactions
Transactions
in
29
which
the
total
sale
price
is
fifty
dollars
or
less,
except
30
transactions
for
the
sale
of
a
catalytic
converter,
are
exempt
31
from
the
requirements
of
this
section
:
.
32
a.
Transactions
in
which
the
total
sale
price
is
fifty
33
dollars
or
less,
except
transactions
for
the
sale
of
catalytic
34
converters.
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b.
Transactions
for
the
sale
of
catalytic
converters
in
1
which
the
total
sale
price
is
seventy-five
dollars
or
less.
2
c.
Transactions
in
which
a
scrap
metal
dealer
is
selling
3
scrap
metal.
4
d.
Transactions
in
which
the
person
selling
the
scrap
5
metal
is
known
to
the
scrap
metal
dealer
purchasing
the
scrap
6
metal
to
be
the
officer,
employee,
or
agent
of
an
established
7
commercial
or
industrial
business,
operating
from
a
fixed
8
location,
that
may
reasonably
be
expected
to
produce
scrap
9
metal
during
the
operation
of
the
business.
10
6.
a.
The
provisions
of
this
section
shall
take
precedence
11
over
and
supersede
any
local
ordinance
adopted
by
a
political
12
subdivision
that
regulates
scrap
metal
transactions
,
except
13
for
local
ordinances
that
provide
additional
or
more
stringent
14
requirements
for
transactions
involving
scrap
metal
.
15
b.
Notwithstanding
paragraph
“a”
of
this
subsection
,
a
city
16
ordinance
regarding
scrap
metal
or
other
scrap
material
in
17
effect
prior
to
January
1,
2012,
in
a
city
with
a
population
18
exceeding
one
hundred
fifty
thousand
as
shown
by
the
2010
19
federal
decennial
census
may
continue
to
be
enforced
by
the
20
city
which
adopted
it.
21
7.
A
person
who
violates
subsection
2
,
paragraph
“a”
,
or
a
22
person
who
conducts
a
scrap
metal
transaction
by
or
on
behalf
23
of
a
scrap
metal
dealer
who
violates
this
section
shall
be
24
subject
to
a
civil
penalty
as
follows:
25
a.
An
initial
violation
shall
subject
the
person
to
a
civil
26
penalty
in
the
amount
of
one
hundred
thousand
dollars.
27
b.
A
second
violation
within
two
years
shall
subject
28
the
person
to
a
civil
penalty
in
the
amount
of
five
hundred
29
thousand
dollars.
30
c.
A
third
or
subsequent
violation
within
two
years
shall
31
subject
the
person
to
a
civil
penalty
in
the
amount
of
one
ten
32
thousand
dollars.
33
Sec.
3.
Section
714.27,
Code
2022,
is
amended
by
adding
the
34
following
new
subsection:
35
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NEW
SUBSECTION
.
8.
Proof
that
a
scrap
metal
dealer,
or
a
1
person
acting
on
behalf
of
a
scrap
metal
dealer,
conducted
a
2
scrap
metal
transaction
in
violation
of
subsection
2,
paragraph
3
“b”
,
shall
be
evidence
from
which
the
court
or
jury
may
infer
4
any
of
the
following:
5
a.
The
person
aided
and
abetted
the
underlying
theft
of
the
6
catalytic
converter
involved
in
the
transaction
from
a
vehicle,
7
under
section
703.1.
8
b.
The
person
had
knowledge
that
a
public
offense
has
been
9
committed
and
that
a
certain
person
committed
it,
for
purposes
10
of
proving
the
scrap
metal
dealer
or
person
acting
on
behalf
of
11
a
scrap
metal
dealer
acted
as
an
accessory
after
the
fact
under
12
section
703.3.
13
Sec.
4.
Section
805.8C,
subsection
10,
Code
2022,
is
amended
14
to
read
as
follows:
15
10.
Scrap
metal
transaction
violations.
For
violations
of
16
section
714.27
,
the
scheduled
fine
is
one
hundred
thousand
17
dollars
for
a
first
violation,
five
hundred
thousand
dollars
18
for
a
second
violation
within
two
years,
and
one
ten
thousand
19
dollars
for
a
third
or
subsequent
violation
within
two
years.
20
The
scheduled
fine
under
this
subsection
is
a
civil
penalty
21
which
shall
be
deposited
into
the
general
fund
of
the
county
22
or
city
if
imposed
by
a
designated
officer
or
employee
of
a
23
county
or
city,
or
deposited
in
the
general
fund
of
the
state
24
if
imposed
by
a
state
agency,
and
the
crime
services
surcharge
25
under
section
911.1
shall
not
be
added
to
the
penalty.
26
EXPLANATION
27
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
28
the
explanation’s
substance
by
the
members
of
the
general
assembly.
29
Current
law
requires
all
scrap
metal
transactions
for
the
30
sale
of
catalytic
converters
totaling
more
than
$75
to
meet
31
certain
requirements.
A
person
who
sells
the
parts
must
32
provide
identifying
information
to
the
scrap
metal
dealer
and
33
the
dealer
must
keep
a
confidential
record
of
each
transaction.
34
In
addition,
payments
for
the
parts
must
be
made
by
check
35
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or
electronic
funds
transfer.
A
person
who
violates
these
1
provisions
is
subject
to
a
civil
penalty
of
between
$100
and
2
$1,000.
3
This
bill
requires
a
person
who
sells
a
catalytic
converter
4
to
a
scrap
metal
dealer
to
provide
to
the
dealer
an
original
5
receipt
or
invoice
for
a
replacement
catalytic
converter
6
purchased
fewer
than
30
days
before
the
person
sells
the
7
replaced
catalytic
converter,
or
a
junking
certificate
for
8
a
vehicle
issued
fewer
than
30
days
before
the
person
sells
9
the
catalytic
converter.
The
receipt,
invoice,
or
junking
10
certificate
must
be
unmarked
by
a
scrap
metal
dealer.
The
11
requirement
does
not
apply
if
the
person
presents
proof
to
the
12
dealer
that
the
sale
is
approved
by
the
sheriff
of
the
county
13
in
which
the
vehicle
from
which
the
catalytic
converter
was
14
removed
is
registered.
15
A
scrap
metal
dealer
is
required
to
keep
a
confidential
16
register
or
log
of
each
transaction,
including
a
record
of
the
17
information
required
by
the
bill.
Under
the
bill,
a
scrap
18
metal
dealer
must
mark
the
original
receipt,
invoice,
or
19
junking
certificate,
as
applicable,
to
indicate
the
catalytic
20
converter
has
been
sold.
A
scrap
metal
dealer
must
also
21
reasonably
verify
that
a
catalytic
converter
being
offered
22
for
sale
is
appropriate
for
the
type
of
vehicle
for
which
the
23
replacement
converter
was
purchased
as
shown
on
the
receipt
or
24
invoice,
or
is
appropriate
for
the
type
of
vehicle
for
which
25
the
junking
certificate
was
issued,
as
applicable.
26
The
bill
strikes
all
exemptions
for
the
recordkeeping
27
requirements
except
for
sales
of
$50
or
less
that
do
not
28
involve
a
catalytic
converter.
29
Any
local
ordinance
adopted
by
a
political
subdivision
that
30
regulates
scrap
metal
transactions
is
superseded
by
the
bill,
31
except
for
local
ordinances
that
provide
additional
or
more
32
stringent
recordkeeping
requirements
for
transactions
involving
33
scrap
metal.
34
The
bill
increases
the
civil
penalty
for
persons
who
violate
35
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Code
section
714.27
for
an
initial
violation
from
$100
to
1
$1,000,
for
a
second
violation
within
two
years
from
$500
to
2
$5,000,
and
for
a
third
or
subsequent
violation
within
two
3
years
from
$1,000
to
$10,000.
4
For
purposes
of
theft
as
defined
in
Code
section
714.1(4),
5
the
bill
adds
that
a
scrap
metal
dealer’s
violation
of
6
recordkeeping
requirements
shall
be
evidence
from
which
the
7
court
or
jury
may
infer
that
the
person
knew
or
believed
that
8
the
property
had
been
stolen.
The
penalty
for
theft
ranges
9
from
a
simple
misdemeanor
to
a
class
“C”
felony
depending
on
10
the
value
of
the
property.
A
simple
misdemeanor
is
punishable
11
by
confinement
for
no
more
than
30
days
and
a
fine
of
at
12
least
$105
but
not
more
than
$855,
and
a
class
“C”
felony
is
13
punishable
by
confinement
for
no
more
than
10
years
and
a
fine
14
of
at
least
$1,370
but
not
more
than
$13,660.
15
Under
the
bill,
proof
that
a
scrap
metal
dealer,
or
a
16
person
acting
on
behalf
of
a
scrap
metal
dealer,
conducted
17
a
scrap
metal
transaction
in
violation
of
the
recordkeeping
18
requirements
shall
be
evidence
from
which
the
court
or
jury
may
19
infer
that
the
person
aided
and
abetted
the
underlying
theft
20
of
the
catalytic
converter
involved
in
the
transaction
from
21
a
vehicle,
under
Code
section
703.1,
or
that
the
person
had
22
knowledge
that
a
public
offense
has
been
committed
and
that
a
23
certain
person
committed
it,
for
purposes
of
proving
the
scrap
24
metal
dealer
or
person
acting
on
behalf
of
a
scrap
metal
dealer
25
acted
as
an
accessory
after
the
fact
under
Code
section
703.3.
26
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