Bill Text: AZ HB2262 | 2013 | Fifty-first Legislature 1st Regular | Engrossed
Bill Title: Scrap metal dealers; registration
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2013-04-29 - Governor Signed [HB2262 Detail]
Download: Arizona-2013-HB2262-Engrossed.html
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House Engrossed |
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State of Arizona House of Representatives Fifty-first Legislature First Regular Session 2013
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HOUSE BILL 2262 |
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AN ACT
amending section 44-1641, Arizona Revised Statutes; amending title 44, chapter 11, article 3.1, Arizona Revised Statutes, by adding sections 44‑1641.01, 44-1641.02, 44-1641.03, 44-1641.04 and 44-1641.05; amending sections 44-1642 and 44-1644, Arizona Revised Statutes; amending title 44, chapter 11, article 3.1, Arizona Revised Statutes, by adding sections 44‑1648 and 44‑1649; providing for the delayed repeal of section 44‑1649, Arizona Revised Statutes, as added by this act; 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 44-1641, Arizona Revised Statutes, is amended to read:
44-1641. Definitions
In this article, unless the context otherwise requires:
1. "Business records" means records of any purchase, trade, barter or other transaction that involves the receipt of scrap metals and that is made in the ordinary course of business at or near the time of the purchase, trade, barter or transaction including receipts, books or similar records as prescribed by section 44-1642, but does not include correspondence, tax returns or financial statements.
2. "Department" means the department of public safety.
2. 3. "Ferrous metals" means those metals which that will attract a magnet.
3. 4. "Industrial account" means a person or business entity that files or is required to file monthly returns for that person's or entity's transaction privilege tax licenses or a governmental entity that sells scrap metal to a scrap metal dealer.
4. "Nonferrous metals" means those metals which will not normally attract a magnet including copper, brass and aluminum.
5. "Scrap metal dealers" means each person or business entity including all employees of the person or business entity, except automotive recyclers as defined and licensed pursuant to title 28, chapter 10, and whose primary business is the dismantling, selling or disposing of parts or accessories of motor vehicles engaged in the business of purchasing, trading, bartering or otherwise receiving secondhand or castoff material of any kind, except used beverage containers, which is commonly known as scrap metal.
6. "Scrap metals" includes insulated and uninsulated metallic cables.
Sec. 2. Title 44, chapter 11, article 3.1, Arizona Revised Statutes, is amended by adding sections 44-1641.01, 44-1641.02, 44-1641.03, 44-1641.04 and 44-1641.05, to read:
44-1641.01. Scrap metal dealer report
The department shall submit a report every two years to the president of the senate and the speaker of the house of representatives about scrap metal dealers. The report shall identify the scrap metal dealers registered in this state.
44-1641.02. Law enforcement; theft notification website
All law enforcement in this state shall be registered on a free theft notification website that allows law enforcement to send detailed descriptions of stolen items to recycling operations and other law enforcement within at least a one hundred mile radius of a theft. The website must allow scrap metal dealers to alert law enforcement when the dealers are offered suspicious materials.
44-1641.03. Registration; application
A. A person must register pursuant to this article to conduct business as a scrap metal dealer in this state.
B. A person shall submit information for registration to the department in a form prescribed by the department. The information shall include all of the following:
1. The name and address of the scrap metal dealer.
2. The name of each person who owns at least ten per cent of a scrap metal dealer business.
3. Full personal identification information on each owner of a scrap metal dealer business including a copy of each owner's driver license.
4. The location of each principal office and branch office at which the scrap metal dealer will conduct business in this state.
5. The name and address of any wholly‑owned subsidiary of the scrap metal dealer.
C. A registered scrap metal dealer does not need to separately register either of the following:
1. Any of its branch offices.
2. A wholly‑owned subsidiary of the registrant.
44-1641.04. Registration; fees
A. A scrap metal dealer must provide the information prescribed by section 44-1641.03 to the department every two years.
B. The department shall charge and collect fees as determined by the director. It is the intent of the legislature that fees charged and collected by the department shall be to cover the costs of registering the scrap metal dealers pursuant to section 44‑1641.03 and this section.
44-1641.05. Items required to be maintained at place of business; city or county ability to recover costs; violation; civil penalty
A. A registered scrap metal dealer must keep the following at each place of business:
1. Proof of registration that is issued by the department.
2. A statement indicating that the applicant has registered on a free theft notification website that allows law enforcement to send detailed descriptions of stolen items to recycling operations and other law enforcement within at least a one hundred mile radius of a theft. The website must allow scrap metal dealers to alert law enforcement when the dealers are offered suspicious materials.
3. An affidavit signed by the applicant that states that the person is in compliance with this article.
4. A questionnaire that the scrap metal dealer must prepare every two years to show compliance with this article.
B. The scrap metal dealer must maintain and make available the items prescribed by subsection A of this section for inspection by law enforcement. If after inspection law enforcement determines that the scrap metal dealer is in violation of this section, law enforcement must submit a notice of violation to the scrap metal dealer. Law enforcement shall reinspect the scrap metal dealer's place of business no earlier than thirty days after the scrap metal dealer receives the notice of violation.
C. A city or county may establish a mechanism to recover costs associated with the enforcement of this article.
D. If a person violates this section, the person is subject to the following:
1. For a first violation, a civil penalty of five hundred dollars, except that the person is not subject to a civil penalty if the person corrects the violation within thirty days after receiving the notice pursuant to subsection B of this section.
2. For a second or subsequent violation, a civil penalty of one thousand dollars and a licensing jurisdiction shall suspend or revoke the person's business license or, if a business license is not required to operate a business, the jurisdiction shall order the suspension or permanent cessation of the person's business operations.
Sec. 3. 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. Except as otherwise provided in this paragraph, the seller's name, physical description including gender, height, weight, race and eye and hair color, physical address, date of birth, and 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. This paragraph does not apply to a seller who is exclusively selling aluminum beverage containers.
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 and 4 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 or 4 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.
4. Applies to all transactions involving air conditioner cooling coils.
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 of age.
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. 4. Section 44-1644, Arizona Revised Statutes, is amended to read:
44-1644. Report; exemption; violation; classification
A. Within twenty-four hours of receipt of scrap metals, except from an industrial account or a scrap metal dealer, for which a record is required to be kept by section 44‑1642, a scrap metal dealer shall electronically submit to the department of public safety a record of the receipt of the scrap metals. The record shall include the following information:
1. The date, time and place of the receipt of the scrap metal.
2. An identifying description of the specific scrap metal received including the weight and amount of the transaction or other consideration given.
3. A description of the person delivering the metal to the scrap metal dealer including the person's gender, height, weight, race and hair and eye color, address and date of birth 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.
4. The number and state of issuance of the license on the vehicle used to deliver the scrap metal.
B. The department of public safety shall establish by rule electronic submission standards. The submission standards shall allow the submission of the information in an electronic format that is compatible with the output format of not less than four of the record keeping software programs currently in use in the scrap metal industry in this state in a manner that will allow the information to be electronically merged with the department of public safety's department's database. A scrap metal dealer that submits information to the department of public safety pursuant to this section shall not be required to submit the same information to a local law enforcement agency.
C. The department of public safety shall make the information submitted pursuant to this section available to local law enforcement agencies over the internet and shall provide for training and procedures to allow law enforcement personnel to access the information provided electronically for law enforcement purposes.
D. For copper, aluminum wire with a diameter of at least three‑eighths of an inch and transactions with a value over one hundred dollars, a scrap metal dealer shall hold in its custody in the same size, shape and condition in which the scrap metal was received on its business premises any scrap metal received in a reportable transaction for seven days after filing the report prescribed by subsection A of this section.
E. Subsection D of this section does not apply to transactions with industrial accounts, other scrap metal dealers or purchases by scrap metal dealers of used aluminum beverage containers or ferrous scrap metals and of scrap metal authorized for release by a peace officer of that jurisdiction.
F. A person who fails to file a report prescribed by this section is guilty of a class 1 misdemeanor.
Sec. 5. Title 44, chapter 11, article 3.1, Arizona Revised Statutes, is amended by adding sections 44-1648 and 44‑1649, to read:
44-1648. Preemption; power of local authorities
A. The state legislature determines that the registration of scrap metal dealers is a matter of statewide concern. The power to register scrap metal dealers is preempted by this state.
B. This article does not affect a city, town or county's power to enforce laws relating to business licensing.
44-1649. Joint legislative committee on metal theft
The president of the senate and the speaker of the house of representatives for the fifty‑sixth legislature, first regular session may appoint a joint legislative committee on metal theft that is composed of legislators to review the effectiveness of sections 13‑1820 and 28‑3511 and this article in deterring crime and the costs of compliance to industries affected by this article. The committee may report on its findings to the president of the senate and the speaker of the house of representatives by December 1, 2023.
Sec. 6. Delayed repeal
Section 44‑1649, Arizona Revised Statutes, as added by this act, is repealed from and after December 31, 2023.
