Prohibits the sale or purchase of certain items as scrap; street signs, funeral markers, government entity, utility, cemetery or railroad items; preempts local laws.
BILL NUMBER:S1667 REVISED 6/18/13
TITLE OF BILL: An act to amend the general business law, in relation to prohibiting the purchase of certain items as scrap
PURPOSE: The legislation will combat the ongoing problem of scrap theft by (1) establishing a state-wide permit for scrap metal processors to be administered by the Secretary of State; (2) strengthening record-keeping requirements of scrap processors and (3) increasing penalties for violations.
SUMMARY OF SPECIFIC PROVISIONS; Section 1 creates certain definitions for this act.
Section 2. Establishes a state-wide licensing system for scrap processing facilities to be administered by the Secretary of State and provides grounds and procedures for license denial and revocation to ensure that scrap processing facilities are operated in compliance with applicable environmental and transactional requirements.
Specifies the record keeping requirements applicable to scrap processing facilities, including installation of an electronic video recording system at all scales and at all points of sale locations.
Section 3. Prohibits the sale or purchase of certain items as scrap, such as items bearing the markings of a municipality or a utility company, unless offered by a duly authorized agent.
Section 4. Establishes penalties for violations of this article. Criminal penalties are treated as a violation for a first offense and as a misdemeanor for subsequent offenses. Civil penalties range from $2,500 for a first offense, $5,000 for a second offense and $10,000 for a third and subsequent offense. Provides that civil violations may be adjudicated administratively by the NYC Environmental Control Board. A narrow and limited preemption of local laws is provided with the intent to establish uniform transactional standards and requirements consistently applied throughout the State.
Section 5. Provides an effective date on the one hundred eightieth day.
JUSTIFICATION: Scrap theft is a very real and ever growing crime. Certain items clearly marked as property of a municipality or a utility company should not be sold or purchased as scrap as such items are only attainable through illegal means unless in the possession of an authorized agent. This legislation increases penalties on scrap processing facilities which improperly purchase
such materials and/or which neglect to obtain and maintain records designed to both deter scrap thieves and to assist law enforcement in the prosecution of scrap thieves. Establishment of a state-wide licensing system will create a tool to ensure that unfit individuals with the likelihood of abetting scrap theft will not be permitted to own and operate scrap processing facilities. The very limited preemption will establish uniform transactional standards throughout the State in order to maintain a level playing field in recognition of the significant economic and environmental contribution of the scrap processing industry.
LEGISLATIVE HISTORY: S. 6971A Passed Senate in 2012
FISCAL IMPLICATIONS. To be determined.
EFFECTIVE DATE: This bill shall take effect on the 180th day.
STATE OF NEW YORK ________________________________________________________________________ 1667 2013-2014 Regular Sessions IN SENATE (PREFILED) January 9, 2013 ___________Introduced by Sens. GRISANTI, MAZIARZ -- read twice and ordered printed, and when printed to be committed to the Committee on Consumer Protection AN ACT to amend the general business law, in relation to prohibiting the purchase of certain items as scrap THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 69-e of the general business law, as added by chap- ter 431 of the laws of 1976, is amended to read as follows: S 69-e. Definitions. 1. "Scrap metal processing facility" shall mean an establishment engaged primarily in the purchase, processing and ship- ment of ferrous and/or non-ferrous scrap, the end product of which is the production of raw material for remelting purposes for steel mills,
[foundaries]FOUNDRIES, smelters, refiners, and similar users. 2. "Scrap processor" shall mean any person, association, partnership or corporation operating and maintaining a "scrap metal processing facility". 3. "GOVERNMENT ISSUED IDENTIFICATION" MEANS ANY CURRENT AND VALID OFFICIAL FORM OF IDENTIFICATION ISSUED BY THE GOVERNMENT OF THE UNITED STATES OF AMERICA, A STATE, TERRITORY, PROTECTORATE, OR DEPENDENCY OF THE UNITED STATES OF AMERICA, A COUNTY, MUNICIPALITY OR SUBDIVISION THEREOF, ANY PUBLIC AGENCY OR DEPARTMENT THEREOF, OR ANY PUBLIC EMPLOY- ER, WHICH REQUIRES AND BEARS THE SIGNATURE AND PHOTOGRAPH OF THE PERSON TO WHOM IT IS ISSUED. S 2. Subdivision 1 of section 69-g of the general business law, as amended by chapter 302 of the laws of 2007, is amended to read as follows: 1. Such scrap processor shall record [(i) each purchase of any pig or pigs of metal, bronze or brass castings or parts thereof, sprues or gates or parts thereof, utility wire or brass car journals, or of metal beer kegs, and (ii)]each purchase of [iron, steel]FERROUS and/or nonferrous scrap [for a price of fifty dollars or more,]and preserve such record for a period of three years; which record shall show theEXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD04206-02-3 S. 1667 2
date of purchase, name of seller,
[his]THE SELLER'S residence OR BUSI- NESS address [by street, number, city, village or town, the driver's license number or information from a government issued photographic identification card, if any, of such person, or by such description as will reasonably locate the seller,]AND the type and quantity of such purchase [; and the]. THE scrap processor shall cause such record to be signed by the seller or his agent. It shall be unlawful for any seller to refuse to furnish such information or to furnish incorrect or incom- plete information. Such scrap processor shall also make and retain a copy of the government issued photographic identification card used to verify the identity of [the]ANY NATURAL person from whom the scrap metal was purchased and shall retain this copy in a separate book, register or electronic archive for [two]THREE years from the date of purchase. S 3. Section 69-h of the general business law is renumbered section 69-i and two new sections 69-h and 69-j are added to read as follows: S 69-H. PROHIBITION ON PURCHASE OF CERTAIN ITEMS. NOTWITHSTANDING ANY PROVISION OF LAW, RULE OR REGULATION TO THE CONTRARY, IT SHALL BE UNLAW- FUL FOR SCRAP PROCESSING FACILITIES TO PURCHASE STREET SIGNS, FUNERAL MARKERS, OR ANY METAL ITEMS BEARING MARKINGS OF ANY GOVERNMENTAL ENTITY, UTILITY COMPANY, CEMETERY OR RAILROAD UNLESS SUCH ITEMS ARE OFFERED FOR SALE BY A DULY AUTHORIZED EMPLOYEE OR AGENT OF ANY GOVERNMENTAL ENTITY, UTILITY COMPANY, CEMETERY OR RAILROAD. S 69-J. PREEMPTION OF LOCAL LAWS. THE PROVISIONS OF THIS ARTICLE SHALL APPLY TO ALL MUNICIPALITIES, INCLUDING CITIES WITH A POPULATION OF ONE MILLION OR MORE, AND SHALL SUPERSEDE ANY LOCAL LAW, RULE, REGULATION, OR ORDINANCE REGARDING THE LICENSING OR REGULATION OF SCRAP PROCESSORS AND SCRAP METAL PROCESSING FACILITIES; PROVIDED, HOWEVER, THAT LOCAL LAW NUMBER FIFTY OF THE CITY OF NEW YORK FOR THE YEAR TWO THOUSAND SEVEN SHALL NOT BE DEEMED TO BE PREEMPTED BY THE PROVISIONS OF THIS ARTICLE. S 4. Section 69-i of the general business law, as added by chapter 431 of the laws of 1976 and as renumbered by section three of this act, is amended to read as follows: S 69-i. Penalty. 1. [Each]A FIRST violation of this article [by a scrap processor]shall be PUNISHABLE AS a violation subject to a fine of not more than two [hundred]THOUSAND dollars [, unless such violation shall be wilful, in which event it shall be a misdemeanor except, howev- er, the scrap processor shall not be liable for any violation of this article by a seller, his agent, or a purported seller or agent.]AND/OR IMPRISONMENT FOR A TERM OF NOT MORE THAN FIFTEEN DAYS. A SECOND OR SUBSEQUENT VIOLATION OF THIS ARTICLE SHALL BE PUNISHABLE AS A MISDEMEA- NOR SUBJECT TO A FINE OF NOT MORE THAN FIVE THOUSAND DOLLARS AND/OR IMPRISONMENT FOR A TERM OF NOT MORE THAN ONE YEAR. A CONVICTION FOR A THIRD VIOLATION OF THIS ARTICLE COMMITTED WITHIN A TEN YEAR PERIOD SHALL BE PUNISHABLE AS A CLASS E FELONY. 2. [Each violation of this article by a seller or his agent shall be a misdemeanor.]IN ADDITION TO A TERM OF IMPRISONMENT, WHERE A PERSON HAS GAINED MONEY OR PROPERTY THROUGH A VIOLATION OF THIS ARTICLE THE COURT, UPON CONVICTION THEREOF, IN LIEU OF IMPOSING THE FINE AUTHORIZED FOR THE OFFENSE UNDER SUBDIVISION ONE OF THIS SECTION MAY SENTENCE THE DEFENDANT TO PAY AN AMOUNT, FIXED BY THE COURT, NOT EXCEEDING DOUBLE THE AMOUNT OF THE DEFENDANT'S GAIN FROM THE COMMISSION OF THE OFFENSE. S 5. This act shall take effect on the one hundred eightieth day after it shall have become a law.