HB2465 - 491R - House Bill Summary

House of Representatives

HB 2465

scrap metal; theft; dealers

Sponsor: Representative Weiers JP

DPA	Committee on Military Affairs and Public Safety
W/D	Committee on Judiciary
X	Caucus and COW
	House Engrossed

HB 2465 makes numerous changes to scrap metal laws including prohibiting the sale or purchase of certain used catalytic converters and prohibiting scrap metal dealers from purchasing certain types of scrap metal in its original manufactured form.

History

Arizona has regulated the purchase of scrap metal since 1968, when the Legislature first required scrap metal dealers to maintain transaction records. Laws 2007, Chapter 186, enacted several additional requirements for scrap metal dealers and sellers and also extended the offense of aggravated criminal damage to address damage caused by scrap metal theft. Currently, criminal damage is a Class 4 felony if a person recklessly damages the property of another in an amount of $10,000 or more, or if the person recklessly causes impairment of the functioning of any utility. Property of another is defined as property in which any person other than the defendant has an interest, including community property and other property in which the defendant also has an interest (A.R.S. Section 13-1601).

Pursuant to A.R.S. Sections 13-4903 and 13-4904, an armed nuclear security guard is justified in using physical force and/or detaining a person at a commercial nuclear generating facility in order to terminate the commission or attempted commission of criminal damage in an amount of $10,000 or more, or if the person recklessly causes impairment of the functioning of any utility.

Scrap metal dealers are required by A.R.S. Section 44-1642 to maintain onsite a record of each receipt of scrap metal that must include the following:

The date, time and place of the transaction.
A photograph, description and weight of the scrap metal received.
The dollar amount of the transaction.
The seller’s name, description, physical address, date of birth, signature and photocopy of a photo identification card.
The seller’s transaction privilege tax number, if applicable.
The license plate number and state of the vehicle used to deliver the scrap metal.
A photograph, video record or digital record of the seller.
The right index fingerprint of the seller

Within 24 hours, the scrap metal dealer must deliver to the Department of Public Safety (DPS) a record of the receipt of the scrap metals that includes the specified information. DPS is required to design and provide a seller and transaction form that may be used by the scrap metal dealer when filing mandatory reports.

Provisions

· Broadens the definition of property of another to include the property of other persons damaged directly or indirectly as a result of damage caused by the theft of scrap metal.

· Expands the definition of utility to any enterprise that provides irrigation or water conservation.

· Specifies that a person commits criminal damage by recklessly damaging the property of a utility.

· Establishes a Class 4 felony penalty for recklessly damaging the property of a utility in an amount of $5,000 or more.

· Prescribes the value, when determining the value following a theft, of ferrous metal or nonferrous metal as the fair market value of the metal as scrap metal in the local area together with the repair or replacement value of any property from which the scrap metal was removed at the time of the theft.

· Specifies that persons convicted of theft involving ferrous or nonferrous metal with a value of $25,000 or more are not eligible for suspension of sentence, probation, pardon or release from confinement except for temporary releases, earned early releases or commuted sentences.

· The amount of any damage to the property of another caused as a result of the scrap metal theft is included in determining the value of ferrous or nonferrous metal.

· Gives rise to an inference in certain circumstances that:

· A person in possession of recently stolen scrap metal was aware of the risk that it had been stolen or in some way participated in its theft.

· A person selling scrap metal at a price substantially below its fair market value was aware of the risk that it had been stolen.

· States that the terms ferrous metal and nonferrous metal have the same meaning in theft statutes as those prescribed in current scrap metal statutes.

· Establishes a Class 1 misdemeanor penalty for purchasing or selling a used catalytic converter unless the purchase or sale is in the ordinary course of business by a commercial motor vehicle parts or repair business in connection with the sale or installation of a new catalytic converter.

· Exempts licensed automotive recyclers and scrap metal dealers from this prohibition.

· Allows armed nuclear security guards to use physical force and/or detain any person for the purpose of summoning a law enforcement officer if the person is suspected of or attempting to commit criminal damage in an amount of $5,000 or more.

· Prohibits a scrap metal dealer from knowingly purchasing the following types of scrap metal in their original form:

· Aluminum, iron or steel manhole covers.

· Brass or bronze valves or fittings used in association with fire extinguishers.

· Brass or bronze backflow preventer valves.

· Water meters.

· Aluminum trench shoring.

· Aluminum loading ramps.

· Aluminum or stainless steel beer or malt beverage kegs.

· Catalytic converters.

· Exempts scrap metal dealers who purchase or possess the prohibited scrap metal listed above that is acquired in transactions with industrial accounts, with other scrap metal dealers or after the scrap metal is authorized for release by a peace officer of that jurisdiction.

· Defines the term catalytic converter.

· Requires scrap metal receipt records for scrap metal submitted to DPS to be sent electronically.

· Requires DPS to establish by rule electronic submission standards that allow the submission of required scrap metal records in an electronic format compatible with the output format of not less than four of the record keeping software programs currently in use in the scrap metal industry and that allows the records to be merged with the DPS database of records.

· Specifies that information sent to DPS by a scrap metal dealer does not need to be sent to a local law enforcement agency.

· Requires DPS to make the scrap metal information submitted to them by scrap metal dealers available to local law enforcement agencies over the internet.

· Requires DPS to provide for training and procedures to allow law enforcement personnel to access the information provided electronically for law enforcement purposes.

· Contains a delayed effective date of September 1, 2010 for the new electronic record submission requirements.

· Makes technical and conforming changes.

Amendments

Committee on Military Affairs and Public Safety

· Prohibits scrap metal dealers from knowingly purchasing any type of metal manhole covers rather than just aluminum, iron or steel manhole covers.

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· Forty-ninth Legislature