Figure

Graphic file number 0 named letter~2.jpg with height 87 p and width 86 p Left aligned

UTAH STATE SENATE

UTAH STATE CAPITOL COMPLEX * WEST OFFICE BUILDING, SUITE W115

P.O. BOX 145115 * SALT LAKE CITY, UTAH 84114-5115 * (801) 538-1035

        January 26, 2007

Mr. President:

    The Business and Labor Committee reports a favorable recommendation on S.B. 44, SCRAP METAL TRANSACTIONS, by Senator J. Greiner, with the following amendments:

1.    Page 1, Line 20 :    

             20

{  
     three years   }
  not less than one year       ;

    
  requires that sellers provide a fingerprint;      


2.    Page 1, Line 26 :    

             26          .    
{   requires that dealers hold regulated metals for three days and   } allows a law


3.    Page 2, Line 29 :    

    
  provides an exemption for businesses with established accounts who maintain specified records with the dealer;      

             29          .    provides that violation of these requirements by the dealer or the seller is a class
{   B   }        (C)      


4.    Page 2, Line 49 :    

             49          
{   76-10-910.2, Utah Code Annotated 1953   }


5.    Page 3, Lines 81 through 82 :    

             81          (7) (a) "Regulated metal" means any item composed
{   in whole or in part of any ferrous

             82      or  
}
  primarily of       nonferrous metal, except as provided in Subsection (7)(c).


6.    Page 3, Lines 86 through 89 :    

             86          (ii)
{   metals and alloys that include materials and equipment commonly used in

             87      construction, agricultural operations, and electrical power generation  
}
  property owned by, and also identified by marking or other means as the property of:

(A) a telephone, cable, electric, water, or other utility; or
(B) a railroad company  
;

             88          (iii)
{   railroad equipment   }        unused and undamaged building construction materials made of metal or allow, including:

(A) copper pipe, tubing, or wiring; and
(B) aluminum wire, siding, downspouts, or gutters  
;

             89          (iv) oil well rigs;
{   and   }



7.    Page 4, Line 90 :    

             90          (v) nonferrous materials, stainless steel, and nickel
  ; and

(vi) irrigation pipe  
.


8.    Page 4, Lines 92 through 93 :    

             92          (i)
{   scrap iron   }        ferrous metal, except as provided in Subsections (7)(b)(ii) or (iv)       ;

             93          (ii) household generated
{   waste   }        recyclable materials       ;


9.    Page 4, Lines 114 through 116 :    

             114          (h)
{   inconel, monel, and hast alloy   }        nickel and nickel alloys containing greater than 50% nickel       ; and

             115          (i) #1 and #2 copper as defined by the most recent institute of Scrap Recycling
             116      Industries, Inc., Scrap Specifications Circular
  and              unused and undamaged building materials, including:

(A) greenline copper;
(B) copper pipe, tubing, or wiring; or
(C) aluminum wire, siding, downspouts, or gutters.  
.


10.    Page 5, Line 128 :    

             128      metallic description [if scrap metal]
  , in accordance with scrap metal recycling industry standards       ;


11.    Page 5, Line 136 :    

             136          (f) the type and number of the identification provided in Subsection (2)
{   (a)   }        (g)       [.];


12.    Page 5, Line 142 :    

             142      sell the scrap metal or junk[.];
{   and   }


13.    Page 5, Line 144 :    

             144      clearly legible photocopy of the seller's identification
  ; and

(j) a legible fingerprint of the seller's right thumb, or if the right thumb cannot be fingerprinted, a legible fingerprint of the seller with a written notation identifying the fingerprint and the reason why the thumb print was unavailable  
.


14.    Page 5, Line 146 :    



             146          (4) The [receipt book] log and entries shall
{   at all times   } be open to inspection by the


15.    Page 5, Line 148 :    

             148      metal processor] does business
  during regular business hours       :


16.    Page 6, Lines 159 through 160 :    

             159          (6) Log entries made under this section shall be maintained for not less than three years
             160      from date of entry.
  (7) The information required by Subsection (2) may be maintained for repeat sellers who use the same vehicle to bring regulated metal for each transaction in a relational database that allows the dealer enter an initial record of the seller's information and then relate subsequent transaction records to that initial information.

(8) This section does not apply to a single purchase of regulated metal by a dealer if:
(a) the weight of regulated metal is less than 50 pounds; or
(b) the price paid to the seller is less than $100.  


17.    Page 6, Lines 178 through 180 :    

             178      between the hours of
{   7 a.m.   }        6 a.m.       and 7 p.m.

             179          (2)
{   A   }        Except when the dealer pays a government entity by check for regulated metal, the       dealer may not purchase any of the following regulated metal without obtaining

             180      and keeping on file
{   written proof   }        reasonable documentation       that the seller is an employee, agent, or contractor of a


18.    Page 7, Line 195 :    

             195      file for not less than
{   three years   }        one year       .



19.    Page 7, Lines 198 through 199 :    

             198          (a) the business holds a valid business license;
  and      

             199          
{   (b)   }        (i)(A)       the dealer has on file a statement from the business identifying those employees


20.    Page 7, Line 201 :    

             201          
{   (c)   }        (B)       the dealer conducts regulated metal transactions only with those identified


21.    Page 7, Line 203 :    

             203      transaction
  ; or

(ii) the dealer has on file reasonable documentation from the business that any person verified as representing the business as an employee, and whom the dealer has verified is an employee, may sell regulated metal; or
(iii) the dealer makes payment for regulated metal purchased from a person by issuing a check to the business employing the seller.
 
.


22.    Page 7, Line 211 :    

             211      provisions of this part is guilty of a class
{   B   }        (C)       misdemeanor[; provided that this part shall not be



23.    Page 8, Lines 222 through 243 :    

             222          
{   Section 10. Section 76-10-910.2 is enacted to read:

             223          76-10-910.2.  
}
{   Seventy-two hour hold on regulated metal -- Management of

             224      regulated metal -- Exceptions.


             225          (1) Except as provided in Subsection (3), a dealer shall retain possession of purchased
             226      regulated metal at the dealer's place of business where the regulated metal was purchased and
             227      withhold the regulated metal from alteration, processing, resale, or salvage use for 72 hours
             228      after purchase, unless the property is released earlier by written order of the local law
             229      enforcement agency or by order of a court of competent jurisdiction.
             230          (2) (a) Except as provided in Subsection (2)(b), a dealer shall segregate all regulated
             231      metal purchased from a seller from regulated metal property purchased from other sellers and
             232      shall attach to the regulated metal, or to the container in which the regulated metal is held, a
             233      label indicating the name of the seller, the date on which the regulated metal was purchased,
             234      and the number of the receipt on which the purchase information is recorded.
             235          (b) If in any single purchase transaction there are multiple items of regulated metal of
             236      the same general type, only one representative item from each type of regulated metal must be
             237      segregated and labeled in accordance with this Subsection (2).
             238          (3) The hold, segregation, and labeling requirements of Subsections (1) and (2) do not
             239      apply to any item of regulated metal composed solely of ferrous metal material, unless the
             240      dealer has received a hold notice from the local law enforcement agency.
             241          (4) While in possession of purchased regulated metal, a dealer shall make the metal
             242      available for inspection by any law enforcement agency at the dealer's place of business during
             243      regular business hours of the dealer.  
}



        Respectfully,

        Kevin T. VanTassell
        Committee Chair

Voting: 6-1-0
3 SB0044.SC1.wpd anicholson/AMN SCA/SES 1/26/07 9:27 am


Bill Number
Action Class
Action Code

*SB0044*
*S*
*SCRAMD*

SB0044
S
SCRAMD