Chapter 0225 - 552R - S Ver of HB2652

Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 13-3728, Arizona Revised Statutes, is amended to read:

START_STATUTE13-3728. Unlawful purchase, solicitation, advertisement or sale of used catalytic converter; classification; definition

A. It is unlawful for a person to purchase, solicit, advertise, possess or sell 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 or any nonferrous parts of a catalytic converter.

B. Subsection A of this section does not apply to:

1. The possession or sale of a used catalytic converter or any nonferrous parts of a catalytic converter by an automotive recycler that is licensed pursuant to title 28, chapter 10 if the possession or sale is in the automotive recycler's ordinary course of business.

2. The purchase or sale of a used catalytic converter or any nonferrous parts of a catalytic converter as prescribed by section 44-1642.01 that is are acquired in a transaction with an industrial account, with another scrap metal dealer or after the used catalytic converter is or the nonferrous parts of a catalytic converter are authorized for release by a peace officer of the jurisdiction in which the transaction occurs, except that a solicitation or advertisement for a used catalytic converter or any nonferrous parts of a catalytic converter may be made only for industrial accounts.

3. The possession or sale of a used catalytic converter or any nonferrous parts of a catalytic converter by A commercial motor vehicle parts or repair business that sells or installs a new catalytic converter if the possession or sale is in the business's ordinary course of business. A commercial motor vehicle parts or repair business may purchase a used catalytic converter being sold as a vehicle repair part in compliance with united states environmental protection agency policy. The used catalytic converter in compliance with united states environmental protection agency policy shall be marked with the date the catalytic converter was removed from the vehicle, the vehicle identification number of the vehicle from which the catalytic converter was removed or an alternative number to the vehicle identification number. If an alternative number is used, the alternative number must be under a numbering system that can be immediately linked to the vehicle identification number by law enforcement.

C. a person that purchases a used catalytic converter or any nonferrous parts of a catalytic converter shall electronically submit to the department of public safety a record of each transaction relating to a used catalytic converter or any nonferrous parts of a catalytic converter in accordance with section 44-1644.

C. D. A violation of this section is a class 1 misdemeanor.

E. For the purposes of this section, "catalytic converter" has the same meaning prescribed in section 44-1642.01. END_STATUTE

Sec. 2. Section 44-1641, Arizona Revised Statutes, is amended to read:

START_STATUTE44-1641. 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.

3. "Ferrous metals":

(a) Means those metals that will attract a magnet.

(b) Includes a scrap vehicle.

4. "Industrial account" means either:

(a) 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 and that is reasonably expected to generate the type of scrap metals it sells.

(b) A governmental entity that sells scrap metal to a scrap metal dealer.

5. "Scrap metal dealers" means each person or business entity, including all employees of the person or business entity, except automotive recyclers that are 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 that is commonly known as scrap metal.

6. "Scrap metals" includes insulated and uninsulated metallic cables and scrap vehicles.

7. "Scrap vehicle" means a vehicle that has been reported to the national vehicle title information system and that has been flattened, crushed, baled or logged so that the vehicle is less than fifty percent of its original volume, is no longer the vehicle that is described by the certificate of title and is sold for purposes of scrap metal only. END_STATUTE

Sec. 3. Section 44-1641.05, Arizona Revised Statutes, is amended to read:

START_STATUTE44-1641.05. 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 scrap metal dealer 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 scrap metal dealer 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. Except as otherwise provided in this section, law enforcement shall reinspect the scrap metal dealer's place of business no not earlier than fifteen seven days after the scrap metal dealer receives the notice of violation. After reinspection, if law enforcement determines that the scrap metal dealer is in violation of this section, law enforcement may conduct a subsequent reinspection without a minimum waiting period.

C. 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, $500. except that the person is not subject to a civil penalty if the person corrects the violation within fifteen 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 $2,000 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.

3. For a third or subsequent violation, a civil penalty that is $2,000 more than the previous civil penalty imposed on the person for violating this SECTION.

3. 4. Any costs associated with the enforcement of this article as determined by a city or county.

D. Failure to comply with this section may result in the immediate suspension of all scrap metal transactions unless one of the following applies to the business:

1. The business has been previously registered as a scrap metal recycler.

2. The business has a local business license. END_STATUTE

Sec. 4. Section 44-1642, Arizona Revised Statutes, is amended to read:

START_STATUTE44-1642. Records of purchase; transaction limitations; age requirement for scrap metal seller; used catalytic converter retainment period; 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 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'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, 3 and 4 of this subsection, only applies only 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 $300 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, including industrial accounts, except that for these transactions a scrap metal dealer may give a seller on site a check made payable to an industrial account.

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 of age.

H. If a scrap metal dealer purchases a used catalytic converter or any nonferrous parts of a catalytic converter, the scrap metal dealer shall retain the used catalytic converter or the nonferrous parts of the catalytic converter in their original form for at least seven days after the original purchase date at the scrap metal dealer's place of business.

H. I. This section does not apply to transactions involving materials consisting of a metal product in its original manufactured form that is composed of no not more than twenty per cent percent by weight of nonferrous metal. END_STATUTE

Sec. 5. Section 44-1642.01, Arizona Revised Statutes, is amended to read:

START_STATUTE44-1642.01. Prohibited scrap metal transactions; exceptions; violation; classification

A. A scrap metal dealer shall not knowingly purchase the following types of scrap metal:

1. Metal manhole covers that are used to cover street or alley service personnel access entrances to municipal sewers and storm drains.

2. Brass or bronze valves or fittings that are commonly used on structures for access to water for the purpose of extinguishing fires.

3. Brass or bronze commercial potable water backflow preventer valves that are valves commonly used to prevent backflow of potable water into municipal domestic water service systems from commercial structures.

4. Water meters that are used for measurement of measuring the use and consumption of domestic water.

5. Aluminum trench shoring that is commonly used for shoring below ground trenches and excavations for the construction of constructing buildings and structures.

6. Aluminum loading ramps that are manufactured and used for loading motor vehicles for hauling the motor vehicles.

7. Aluminum or stainless steel beer or malt beverage kegs that are commonly used by brewers or producers for the sale selling and transportation of transporting beer or malt beverages.

8. Catalytic converters or any nonferrous parts of a catalytic converter. For the purposes of this paragraph, "catalytic converters" means motor vehicle exhaust system parts that are used for controlling the exhaust emissions from motor vehicles and that contain a catalyst metal.

9. Metal municipal storm grates that are used to allow for water drainage from municipal streets or alleys.

B. This section does not apply to or prohibit the purchase or possession of the types of items that are listed in subsection A of this section and that are 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 if the scrap metal dealer keeps records pursuant to section 44-1642 and electronically reports the transactions pursuant to section 44-1644.

C. A person who violates this section is guilty of a class 1 misdemeanor.END_STATUTE

Sec. 6. Section 44-1644, Arizona Revised Statutes, is amended to read:

START_STATUTE44-1644. Report; exemption; violation; classification

A. Within twenty-four hours of receipt of after receiving 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 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:

(a) The weight and amount of the transaction or other consideration given.

(b) Unique identifying numbers and markings on Catalytic converters as defined in section 44-1642.01, subsection A, paragraph 8 or any nonferrous parts of a catalytic converter.

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. A scrap metal dealer shall electronically submit to the department a record of the receipt of each purchase of a used catalytic converter as defined in section 44-1642.01, subsection A, paragraph 8 or any nonferrous parts of a catalytic converter from an industrial account or another scrap metal dealer. The report shall include:

1. The name, address AND transaction PRIVILEGE tax number of the seller.

2. The date, time and place of the transaction.

3. The number of catalytic converters purchased.

4. aNY Unique identifying numbers and markings on catalytic converters or any nonferrous parts of a catalytic converter.

B. C. The department 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's database. A scrap metal dealer that submits information to the department pursuant to this section shall is not be required to submit the same information to a local law enforcement agency.

C. D. The department 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. E. For copper, aluminum wire with a diameter of at least three-eighths of an inch and transactions with a value over one hundred dollars $100, 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. F. Subsection D E 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 metals and of scrap metal authorized for release by a peace officer of that jurisdiction.

F. G. A person who fails to file a report prescribed by this section is guilty of a class 1 misdemeanor. END_STATUTE

Sec. 7. Section 44-1646, Arizona Revised Statutes, is amended to read:

START_STATUTE44-1646. Burned metallic wire; aluminum wire; copper wire; transaction restrictions; applicability

A. A scrap metal dealer shall not purchase or otherwise receive metallic wire that was burned in whole or in part to remove insulation unless the scrap metal dealer receives from the scrap metal seller written evidence identifying the person who delivers the wire to the scrap metal dealer that includes evidence that the wire was lawfully burned.

B. A scrap metal dealer shall not accept aluminum wire with a diameter of at least three-eighths of an 3/8 inch or more or any copper wire that has had the insulation removed and shall not remove the insulation from the wire until after the seven day seven-day period prescribed by section 44-1644, subsection D E.

C. This section does not apply to transactions with all industrial accounts or to transactions between scrap metal dealers. END_STATUTE

Sec. 8. Emergency

This act is an emergency measure that is necessary to preserve the public peace, health or safety and is operative immediately as provided by law.