What changed in SF 2287

8 passages reworded, 24 added and 33 removed; 6 of 71 unchanged.

Removed AddedIntroduced textText as passedAmendments

Section 1. Section 714.1, subsection 4, Code 2022, is amended to read as follows:

4. Exercises control over stolen property, knowing such property to have been stolen, or having reasonable cause to believe that such property has been stolen, unless the person’s purpose is to promptly restore it to the owner or to deliver it to an appropriate public officer. The fact that the person is found in possession of property which has been stolen from two or more persons on separate occasions, or that the person is a dealer or other person familiar with the value of such property and has acquired it for a consideration which is far below its reasonable value, or that the person is a scrap metal dealer and has violated section 714.27, subsection 2, paragraph “b”, or section 714.27, subsection 3, paragraph “c”, 714.27A in a transaction involving the property, shall be evidence from which the court or jury may infer that the person knew or believed that the property had been stolen.

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2. Section 714.27, subsection 1, paragraph a, Code 2022, is amended to read as follows: 714.27 Scrap metal transactions and reporting —— penalties.

a. “Scrap metal” means any metal suitable for reprocessing. “Scrap metal” does not include a motor vehicle, but does include or a catalytic converter detached from a motor vehicle.

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3. Section 714.27, subsection 5, paragraph a, Code 2022, is amended to read as follows:

1. For purposes of this section, and unless the context otherwise requires, the following definitions shall apply:

a. Transactions in which the total sale price is fifty dollars or less, except transactions for the sale of catalytic converters.

a. “Business transaction” means an exchange of consideration for scrap metal, including a bulk sale of scrap metal, between a scrap metal dealer and another scrap metal dealer, an authorized vehicle recycler licensed under chapter 321H operating a business at a fixed location, a motor vehicle dealer licensed under chapter 322 operating a business at a fixed location, a towable recreational vehicle dealer licensed under chapter 322C operating a business at a fixed location, or a mechanic or employee of an automotive repair facility operating a business at a fixed location.

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b. “Scrap metal” means any metal suitable for reprocessing. “Scrap metal” does not include a motor vehicle, but does include a catalytic converter detached from a motor vehicle.

4. Section 714.27, subsection 5, paragraph b, Code 2022, is amended by striking the paragraph.

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c. “Scrap metal dealer” means any person operating a business at a fixed or mobile location that is engaged in one of the following activities:

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(1) Buying, selling, procuring, collecting, gathering, soliciting, or dealing in scrap metal.

NEW SECTION. 714.27A Used catalytic converter transactions —— reporting —— penalties.

(2) Operating, managing, or maintaining a scrap metal yard.

1. For purposes of this section:

c.

a. “Business transaction” means an exchange of consideration for a catalytic converter between a scrap metal dealer, as defined in section 714.27, and another scrap metal dealer, an authorized vehicle recycler licensed under chapter 321H operating a business at a fixed location, a motor vehicle dealer licensed under chapter 322 operating a business at a fixed location, a towable recreational vehicle dealer licensed under chapter 322C operating a business at a fixed location, a mechanic or an automotive repair facility operating a business at a fixed location, or a person operating a similar business at a fixed location in another state.

d. “Scrap metal yard” means any yard, plot, space, enclosure, building, mobile facility, or other place where scrap metal is collected, gathered together, stored, or kept for shipment, sale, or transfer.

b. “Catalytic converter” means a catalytic converter that was previously installed in a motor vehicle and subsequently removed.

2.

a. A person shall not sell scrap metal to a scrap metal dealer catalytic converter in this state unless the person provides to the scrap metal dealer, purchaser, at or before the time of sale, the person’s name, address, and place of business, if any, and presents to the scrap metal dealer purchaser a valid driver’s license or nonoperator’s identification card, military identification card, passport, or other government-issued photo identification.

b. A scrap metal dealer shall not make an initial a purchase of scrap metal from a person without demanding and receiving the information required by this subsection and subsection 3, as applicable. However, after an initial transaction involving scrap metal other than a catalytic converter, a scrap metal dealer may only require the person’s name and place of business waive the requirement that the person present an address and photo identification for subsequent purchases not involving a catalytic converter, provided the scrap metal dealer retains all information received during the initial transaction.

3. For transactions involving the sale of a catalytic converter, all of the following apply in addition to the requirements of subsection 2:

a. For a business transaction, the person selling the catalytic converter shall provide to the scrap metal dealer a copy of the person’s valid sales tax permit issued pursuant to chapter 423.

b. For transactions other than business transactions, the person selling the catalytic converter shall provide an original receipt or invoice for a replacement catalytic converter purchased fewer than thirty days before the person sells the replaced catalytic converter to the scrap metal dealer, or a junking certificate for a vehicle that was issued fewer than thirty days before the person sells the catalytic converter to the scrap metal dealer.

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. 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”.

(1) The receipt, invoice, or junking certificate presented by the person to the scrap metal dealer must be unmarked by a scrap metal dealer pursuant to 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, or a junking certificate for a vehicle that was issued fewer than thirty days before the person sells the catalytic converter.

(2) This paragraph does not apply to a transaction if the person presents proof, unmarked by a scrap metal dealer pursuant to paragraph “c”, to the scrap metal dealer that the sale is approved by the sheriff of the county in which the vehicle from which the catalytic converter was removed is registered.

(1) The receipt, invoice, or junking certificate presented by the person to the purchaser must be unmarked by a purchaser pursuant to subsection 3.

c. The scrap metal dealer shall mark the receipt, invoice, junking certificate, or proof of sheriff approval presented under paragraph “b” to indicate the catalytic converter has been sold. The scrap metal dealer shall take a photograph of the catalytic converter that clearly identifies the item as a catalytic converter.

(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.

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4. A scrap metal dealer shall keep a confidential register or log of each transaction, including a record copy of the information required by subsection subsections 2 and 3. All records and information kept pursuant to this subsection shall be retained for at least two years, and shall be provided to a law enforcement agency or other officer or employee designated by a county or city to enforce this section upon request during normal business hours when the law enforcement agency or designated officer or employee of a county or city has reasonable grounds to request such information as part of an investigation. A law enforcement agency or designated officer or employee of a county or city shall preserve the confidentiality of the information provided under this subsection and shall not disclose it to a third party, except as may be necessary in enforcement of this section or the prosecution of a criminal violation.

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5. All scrap metal transactions, other than those transactions exempt pursuant to subsection 5 6, in which the total sale price exceeds fifty dollars shall require payment by check or electronic funds transfer.

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6. The following scrap metal transactions Transactions in which the total sale price is fifty dollars or less, except transactions for the sale of a catalytic converter, are exempt from the requirements of this section:.

a. Transactions in which the total sale price is fifty dollars or less, except transactions for the sale of catalytic converters.

b. Transactions for the sale of catalytic converters in which the total sale price is seventy-five dollars or less.

c. Transactions in which a scrap metal dealer is selling scrap metal.

d. Transactions in which the person selling the scrap metal is known to the scrap metal dealer purchasing the scrap metal to be the officer, employee, or agent of an established commercial or industrial business, operating from a fixed location, that may reasonably be expected to produce scrap metal during the operation of the business.

6.

a. A person shall not purchase a catalytic converter from a seller without demanding and receiving the information required by subsection 2.

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b. A person who purchases a catalytic converter shall mark the receipt, invoice, 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.

a. The provisions of this section shall take precedence over and supersede any local ordinance adopted by a political subdivision that regulates scrap metal transactions.

c. A person who purchases a catalytic converter shall have a residence or fixed business address within this state.

b. Notwithstanding paragraph “a” of this subsection, a city ordinance regarding scrap metal or other scrap material in effect prior to January 1, 2012, in a city with a population exceeding one hundred fifty thousand as shown by the 2010 federal decennial census may continue to be enforced by the city which adopted it.

4. A person who purchases a catalytic converter shall keep a confidential register or log of each transaction, including a copy of the information required by subsections 2, 3, and 5. All records and information kept pursuant to this subsection shall be retained for at least two years, and shall be provided to a law enforcement agency or other officer or employee designated by a county or city to enforce this section upon request during normal business hours when the law enforcement agency or designated officer or employee of a county or city has reasonable grounds to request such information as part of an investigation. A law enforcement agency or designated officer or employee of a county or city shall preserve the confidentiality of the information provided under this subsection and shall not disclose it to a third party, except as may be necessary in enforcement of this section or the prosecution of a criminal violation.

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5. A transaction under this section shall make use of a traceable payment method including but not limited to payment made by check, voucher, issuance of a prepaid bank, credit, or debit card, or electronic funds transfer.

8. 6. A person who violates subsection 2, paragraph “a”, or, person, including a person who conducts a scrap metal business transaction by or on behalf of a scrap metal dealer, another person, who violates this section shall be subject to a civil penalty as follows:

a. An initial violation shall subject the person to a civil penalty in the amount of one hundred thousand dollars.

a. For an initial violation, one thousand dollars.

b. A second violation within two years shall subject the person to a civil penalty in the amount of five hundred thousand dollars.

b. For a second violation within two years, five thousand dollars.

c. A For a third or subsequent violation within two years shall subject the person to a civil penalty in the amount of one years, ten thousand dollars.

9. 7. Proof that a scrap metal dealer, or person, including a person acting on behalf of a scrap metal dealer, who conducted a scrap metal business transaction in violation on behalf of another person, violated subsection 2, paragraph “b”, 2 or subsection 3, paragraph “c”, 3 shall be evidence from which the court or jury may infer any of the following:

a. The person aided and abetted the underlying theft of the catalytic converter involved in the transaction from a vehicle, under section 703.1.

b. The person had knowledge that a public offense has been committed and that a certain person committed it, for purposes of proving the scrap metal dealer or person acting on behalf of a scrap metal dealer acted as an accessory after the fact under section 703.3.

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3. Section 805.8C, subsection 10, Code 2022, is amended to read as follows:

6. Section 805.8C, Code 2022, is amended by adding the following new subsection:

10. Scrap metal NEW SUBSECTION. 10A. Used catalytic converter transaction violations. For violations of section 714.27, 714.27A, the scheduled fine is one hundred thousand dollars for a first violation, five hundred thousand dollars for a second violation within two years, and one ten thousand dollars for a third or subsequent violation within two years. The scheduled fine under this subsection is a civil penalty which shall be deposited into the general fund of the county or city if imposed by a designated officer or employee of a county or city, or deposited in the general fund of the state if imposed by a state agency, and the crime services surcharge under section 911.1 shall not be added to the penalty.