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House
File
2371
-
Introduced
HOUSE
FILE
2371
BY
GOSA
A
BILL
FOR
An
Act
relating
to
scrap
metal
transactions
including
1
establishing
an
application
and
permit
system
to
sell
scrap
2
metal,
and
making
penalties
applicable.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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Section
1.
Section
714.27,
Code
2026,
is
amended
to
read
as
1
follows:
2
714.27
Scrap
metal
transactions
and
reporting
——
penalties.
3
1.
For
purposes
of
this
section
,
and
unless
the
context
4
otherwise
requires,
the
following
definitions
shall
apply:
5
a.
“Scrap
metal”
means
any
metal
suitable
for
reprocessing.
6
“Scrap
metal”
does
not
include
a
motor
vehicle
or
a
catalytic
7
converter
detached
from
a
motor
vehicle.
8
b.
“Scrap
metal
dealer”
means
any
person
operating
a
9
business
at
a
fixed
or
mobile
location
that
is
engaged
in
one
10
of
the
following
activities:
11
(1)
Buying,
selling,
procuring,
collecting,
gathering,
12
soliciting,
or
dealing
in
scrap
metal.
13
(2)
Operating,
managing,
or
maintaining
a
scrap
metal
yard.
14
c.
“Scrap
metal
yard”
means
any
yard,
plot,
space,
15
enclosure,
building,
mobile
facility,
or
other
place
where
16
scrap
metal
is
collected,
gathered
together,
stored,
or
kept
17
for
shipment,
sale,
or
transfer.
18
2.
a.
A
person
who
is
a
resident
of
Iowa
shall
not
sell
19
scrap
metal
to
a
scrap
metal
dealer
in
this
state
unless
20
the
person
provides
to
the
scrap
metal
dealer,
at
or
before
21
the
time
of
sale,
the
person’s
name,
address,
and
place
of
22
business,
if
any,
and
presents
to
the
scrap
metal
dealer
23
a
valid
driver’s
license
or
nonoperator’s
identification
24
card,
military
identification
card,
passport,
or
other
25
government-issued
photo
identification
the
person
has
obtained
26
a
permit
to
sell
scrap
metal
from
the
sheriff
of
the
county
27
in
which
the
person
resides.
A
person
who
is
not
a
resident
28
of
Iowa
shall
not
sell
scrap
metal
to
a
scrap
metal
dealer
in
29
this
state
unless
the
person
has
obtained
a
permit
to
sell
30
scrap
metal
from
a
sheriff
located
anywhere
in
the
state.
31
The
sheriff
shall
issue
a
permit
to
the
person
if
all
of
the
32
following
apply:
33
(1)
The
person
has
not
been
convicted
of
a
violation
of
this
34
section
more
than
two
times
.
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(2)
The
person
declares
on
an
application
provided
by
the
1
sheriff
that
the
person
is
informed
of
and
will
comply
with
2
this
section.
3
(3)
The
person
pays
a
permit
fee
of
not
more
than
five
4
dollars.
5
b.
A
scrap
metal
dealer
shall
not
make
an
initial
purchase
6
of
scrap
metal
from
a
person
without
demanding
and
receiving
7
the
information
required
by
this
subsection
.
However,
after
an
8
initial
transaction,
a
scrap
metal
dealer
may
only
require
the
9
person’s
name
and
place
of
business
for
subsequent
purchases,
10
provided
the
scrap
metal
dealer
retains
all
information
11
received
during
the
initial
transaction
The
state
patrol
of
the
12
department
of
public
safety
shall
develop
the
application
and
13
permit
in
consultation
with
county
sheriffs
and
sheet
metal
14
dealers.
All
sheriffs
shall
use
the
application
and
permit
15
developed
by
the
state
patrol
.
16
c.
A
sheriff
shall
keep
a
record
of
all
permits
issued
17
containing,
at
a
minimum,
the
date
of
issuance,
the
name
and
18
address
of
the
person
or
entity,
a
photocopy
of
the
person’s
19
identification
or
of
the
entity’s
employee’s
identification,
20
and
a
photograph
of
the
person
or
of
the
entity’s
employee.
21
d.
A
permit
is
valid
statewide
and
expires
on
the
person’s
22
birth
date
on
the
second
calendar
year
after
the
calendar
23
year
in
which
the
permit
is
issued,
or,
if
the
permittee
is
24
an
entity,
the
permit
expires
on
the
date
of
issuance
on
the
25
second
calendar
year
after
the
calendar
year
in
which
the
26
permit
was
issued.
27
e.
A
sheriff
may
investigate
a
person’s
or
entity’s
28
background
prior
to
issuing
a
permit
for
purposes
of
29
determining
if
the
person
or
entity
qualifies
to
be
issued
a
30
permit.
Notwithstanding
paragraph
“a”
,
a
permit
may
be
denied,
31
suspended,
or
revoked
at
any
time
if
a
sheriff
discovers
that
32
information
on
an
application
is
inaccurate,
the
person
or
33
entity
fails
to
comply
with
this
section,
or
the
person
or
34
entity
is
convicted
of
a
violation
of
this
section
or
section
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716.11.
1
3.
a.
A
person
shall
not
sell
scrap
metal
to
a
scrap
metal
2
dealer
in
this
state
unless
the
person
provides
to
the
scrap
3
metal
dealer,
at
or
before
the
time
of
sale,
the
person’s
name,
4
address,
and
place
of
business,
if
any,
a
valid
permit
to
sell
5
scrap
metal,
and
presents
to
the
scrap
metal
dealer
a
valid
6
driver’s
license
or
nonoperator’s
identification
card,
military
7
identification
card,
passport,
or
other
government-issued
photo
8
identification.
9
b.
A
scrap
metal
dealer
shall
not
make
an
initial
purchase
10
of
scrap
metal
from
a
person
without
receiving
the
information
11
required
by
this
subsection.
However,
after
an
initial
12
transaction,
a
scrap
metal
dealer
may
only
require
the
person’s
13
name
and
place
of
business
for
subsequent
purchases.
14
3.
4.
A
scrap
metal
dealer
shall
keep
a
confidential
15
register
or
log
of
each
transaction,
including
a
record
of
16
the
information
required
by
subsection
2
3
.
All
records
17
and
information
kept
pursuant
to
this
subsection
shall
be
18
retained
for
at
least
two
years,
and
shall
be
provided
to
a
19
law
enforcement
agency
or
other
officer
or
employee
designated
20
by
a
county
or
city
to
enforce
this
section
upon
request
21
during
normal
business
hours
when
the
law
enforcement
agency
22
or
designated
officer
or
employee
of
a
county
or
city
has
23
reasonable
grounds
to
request
such
information
as
part
of
24
an
investigation.
A
law
enforcement
agency
or
designated
25
officer
or
employee
of
a
county
or
city
shall
preserve
the
26
confidentiality
of
the
information
provided
under
this
27
subsection
and
shall
not
disclose
it
to
a
third
party,
except
28
as
may
be
necessary
in
enforcement
of
this
section
or
the
29
prosecution
of
a
criminal
violation.
30
4.
5.
All
scrap
metal
transactions,
other
than
those
31
transactions
exempt
pursuant
to
subsection
5
6
,
in
which
the
32
total
sale
price
exceeds
fifty
dollars
shall
require
payment
by
33
check
or
electronic
funds
transfer.
34
5.
6.
The
following
scrap
metal
transactions
are
exempt
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from
the
requirements
of
this
section
:
1
a.
Transactions
in
which
the
total
sale
price
is
fifty
2
dollars
or
less.
3
b.
Transactions
in
which
a
scrap
metal
dealer
is
selling
4
scrap
metal.
5
c.
Transactions
in
which
the
person
selling
the
scrap
6
metal
is
known
to
the
scrap
metal
dealer
purchasing
the
scrap
7
metal
to
be
the
officer,
employee,
or
agent
of
an
established
8
commercial
or
industrial
business,
operating
from
a
fixed
9
location,
that
may
reasonably
be
expected
to
produce
scrap
10
metal
during
the
operation
of
the
business.
11
6.
7.
a.
The
provisions
of
this
section
shall
take
12
precedence
over
and
supersede
any
local
ordinance
adopted
by
a
13
political
subdivision
that
regulates
scrap
metal
transactions.
14
b.
Notwithstanding
paragraph
“a”
of
this
subsection
,
a
city
15
ordinance
regarding
scrap
metal
or
other
scrap
material
in
16
effect
prior
to
January
1,
2012,
in
a
city
with
a
population
17
exceeding
one
hundred
fifty
thousand
as
shown
by
the
2010
18
federal
decennial
census
may
continue
to
be
enforced
by
the
19
city
which
adopted
it.
20
7.
8.
A
person
who
violates
subsection
2
3
,
paragraph
“a”
,
21
or
a
person
who
conducts
a
scrap
metal
transaction
by
or
on
22
behalf
of
a
scrap
metal
dealer
who
violates
this
section
shall
23
be
subject
to
a
civil
penalty
as
follows:
24
a.
An
initial
violation
shall
subject
the
person
to
a
civil
25
penalty
in
the
amount
of
one
hundred
dollars.
26
b.
A
second
violation
within
two
years
shall
subject
27
the
person
to
a
civil
penalty
in
the
amount
of
five
hundred
28
dollars.
29
c.
A
third
or
subsequent
violation
within
two
years
shall
30
subject
the
person
to
a
civil
penalty
in
the
amount
of
one
31
thousand
dollars.
32
EXPLANATION
33
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
34
the
explanation’s
substance
by
the
members
of
the
general
assembly.
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This
bill
relates
to
scrap
metal
transactions
including
1
establishing
an
application
and
permit
system
to
sell
scrap
2
metal.
3
The
bill
provides
that
a
person
who
is
a
resident
of
Iowa
4
shall
not
sell
scrap
metal
to
a
scrap
metal
dealer
in
this
5
state
unless
the
person
has
obtained
a
permit
to
sell
scrap
6
metal
from
the
sheriff
of
the
county
in
which
the
person
7
resides.
A
person
who
is
not
a
resident
of
Iowa
shall
not
sell
8
scrap
metal
to
a
scrap
metal
dealer
in
this
state
unless
the
9
person
has
obtained
a
permit
to
sell
scrap
metal
from
a
sheriff
10
located
anywhere
in
the
state.
The
sheriff
shall
issue
a
11
permit
to
the
person
if
all
of
the
following
apply:
the
person
12
has
not
been
convicted
of
a
violation
of
the
bill
more
than
two
13
times;
the
person
declares
on
an
application
provided
by
the
14
sheriff
that
the
person
is
informed
of
and
will
comply
with
the
15
provisions
of
the
bill;
and
the
person
pays
a
permit
fee
of
not
16
more
than
$5.
17
The
bill
directs
the
state
patrol
of
the
department
of
public
18
safety
to
develop
the
application
and
permit
in
consultation
19
with
county
sheriffs
and
sheet
metal
dealers,
and
requires
all
20
sheriffs
to
use
the
application
and
permit
developed
by
the
21
state
patrol.
A
sheriff
is
required
to
keep
a
record
of
all
22
permits
issued
containing,
at
a
minimum,
the
date
of
issuance,
23
the
name
and
address
of
the
person
or
entity,
a
photocopy
24
of
the
person’s
identification
or
of
the
entity’s
employee’s
25
identification,
and
a
photograph
of
the
person
or
of
the
26
entity’s
employee.
27
The
bill
provides
that
a
permit
is
valid
statewide
and
28
expires
on
the
person’s
birth
date
on
the
second
calendar
year
29
after
the
calendar
year
in
which
the
permit
is
issued,
or,
if
30
the
permittee
is
an
entity,
the
permit
expires
on
the
date
of
31
issuance
on
the
second
calendar
year
after
the
calendar
year
32
in
which
the
permit
was
issued.
A
sheriff
may
investigate
a
33
person’s
or
entity’s
background
prior
to
issuing
a
permit
for
34
purposes
of
determining
if
the
person
or
entity
qualifies
to
be
35
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issued
a
permit.
A
permit
may
be
denied,
suspended,
or
revoked
1
at
any
time
if
a
sheriff
discovers
that
information
on
an
2
application
is
inaccurate,
the
person
or
entity
fails
to
comply
3
with
the
requirements
of
the
bill,
or
the
person
or
entity
is
4
convicted
of
a
violation
of
the
bill
or
Code
section
716.11.
5
The
bill
makes
conforming
changes
related
to
renumbering.
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