HLS 12RS-1737 ORIGINAL
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Regular Session, 2012
HOUSE BILL NO. 1188 (Substitute for House Bill No. 802 by Representative Anders)
BY REPRESENTATIVES ANDERS AND RICHARDSON
FEES/LICENSES/PERMITS: Provides for the Scrap Metal Recycler Law
AN ACT1
To amend and reenact R.S. 37:1861(B)(introductory paragraph) and 1864.3 and to enact2
R.S. 37:1861(B)(6) and Chapter 22 of Title 37 of the Louisiana Revised Statutes of3
1950, to be comprised of R.S. 37:1961 through 1975, relative to used or secondhand4
property; to provide for an exemption to the secondhand dealer law; to prohibit cash5
payments for the purchase of copper and other metals; to establish the Louisiana6
Scrap Metal Recyclers Law; to provide for definitions; to require an occupational7
license to operate as a scrap metal recycler; to require changes in location to be noted8
on a license; to provide for hours of operation; to require records of scrap metal9
purchased; to require the records to be kept for three years; to require the records to10
be made available for inspection by law enforcement; to require photographic11
records of scrap metal purchased and of the sellers; to prohibit the purchase of scrap12
metal not owned by the seller; to prohibit scrap metal purchases from person under13
the age of eighteen; to require a statement of ownership from the seller; to provide14
that failure to obtain the statement shall be prima facie evidence of fraud; to provide15
for exoneration from fraudulent, willful, or criminal knowledge; to require daily16
reports; to require the use of a national database; to provide for violations; to provide17
for penalties; to provide for an effective date; and to provide for related matters.18
Be it enacted by the Legislature of Louisiana:19 HLS 12RS-1737 ORIGINAL
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Section 1. R.S. 37:1861(B)(introductory paragraph) and 1864.3 are hereby amended1
and reenacted and R.S. 37:1861(B)(6) and Chapter 22 of Title 37 of the Louisiana Revised2
Statutes of 1950, comprised of R.S. 37:1961 through 1975, is hereby enacted to read as3
follows: 4
§1861. "Secondhand dealer" defined5
* * *6
B. Except as provided for in R.S. 37:1864.3 and 1869.1 R.S. 37:1869.1, the7
provisions of this Part shall not apply to:8
* * *9
(6) Purchases of scrap metal by persons operating as a scrap metal recycler10
under the provisions of R.S. 37:1961 et seq.11
* * *12
§1864.3. Payment by check or money order for copper or other metals required;13
check cashing prohibited; penalties14
A.(1) A secondhand dealer shall not enter into any cash transactions in15
payment for the purchase of junk or used or secondhand property copper. Payment16
for copper shall be made in the form of a check, electronic transfers, or money order17
issued to the seller of the junk or used or secondhand property and made payable to18
the name and address of the seller made payable to the seller of the metal and mailed19
to the address recorded on the photo identification of the seller no earlier than five20
business days after the date of the transaction.21
(2) A secondhand dealer shall not enter into any cash transactions in excess22
of three hundred dollars in payment for the purchase of metal property other than23
copper. Payments in excess of three hundred dollars for metals other than copper24
shall be made in the form of a check made payable to the name and address of the25
seller and may be tendered to the seller at the time of the transaction. The26
secondhand dealer, at his discretion, may make payment by either cash or other27
method for transactions of three hundred dollars or less for all metals other than28
copper. 29 HLS 12RS-1737 ORIGINAL
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B. All payments made by check , electronic transfers, or money order shall1
be reported separately in the daily reports required by R.S. 37:1866. 2
C.(1) No secondhand dealer shall allow a seller to engage in multiple small3
transactions for the purpose of circumventing this Section.4
(2) No secondhand dealer shall cash, offer to cash, or provide the means for5
exchanging for cash a check issued to a seller pursuant to this Section on the6
premises of the secondhand dealer's place of business, including but not limited to7
the use of an automatic teller machine.8
D. Violations of this Section shall be subject to the penalties provided for in9
R.S. 37:1869 and 1870.10
* * *11
CHAPTER 22. SCRAP METAL RECYCLERS12
§1961. Short title13
This Chapter shall be known and may be cited as the "Louisiana Scrap Metal14
Recyclers Law".15
§1962. Definitions16
As used in this Chapter, the following words shall have the meaning ascribed17
to them in this Section unless the context clearly indicates otherwise:18
(1) "Operator" means any person employed in responsible charge of19
operating all or any portion of a scrap metal recycling facility.20
(2) "Railroad track materials" means steel in the form of railroad tracks or21
in the form of rail, switch components, spikes, angle bars, tie plates, or bolts of the22
type used in constructing railroads, or any combination of such materials.23
(3) "Scrap metal" means metal materials which are purchased for resale to24
be recycled, including but not limited to ferrous materials, catalytic converters, auto25
hulks, copper, copper wire, copper alloy, bronze, zinc, aluminum other than in the26
form of cans, stainless steel, nickel alloys, or brass, whether in the form of bars,27
cable, ingots, rods, tubing, wire, wire scraps, clamps or connectors, railroad track28 HLS 12RS-1737 ORIGINAL
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materials, water utility materials, and used building components. The term shall not1
include precious metals, including but not limited to gold, silver, and platinum.2
(4) "Scrap metal recycling facility" means any physical entity that has the3
function of recycling scrap metal.4
(5) "Used building component" means any object produced or shaped by5
human workmanship or tools that is an element of structural, architectural,6
archaeological, historical, ornamental, cultural, utilitarian, decorative, or sentimental7
significance or interest, which has been and may be used as an adjunct to or8
component or ornament of any building or structure, regardless of monetary worth,9
age, size, shape, or condition, that is immovable property, or fixtures or component10
parts of immovable property of any nature or kind whatsoever.11
(6) "Water utility materials" shall include but not be limited to water meters,12
valves, pipes, and fittings.13
§1963. License required; application; bond14
No person shall do business as a scrap metal recycler in this state without15
having first obtained the occupational license required by law. Any person desiring16
a license as a scrap metal recycler shall make application in writing, specifying the17
street number and house number of the building where the business is to be carried18
on. He shall also submit with his application a bond in favor of the city or parish, as19
the case may be, where the business is to be established in the sum of two thousand20
five hundred dollars with security conditioned for the due observance of all21
provisions of this Chapter. 22
§1964. Exemptions23
The provisions of this Chapter shall not apply to:24
(1) Dealers in coins and currency, dealers in antiques, nor to gun and knife25
shows or other trade and hobby shows.26
(2) Persons solely engaged in the business of buying, selling, trading in, or27
otherwise acquiring or disposing of motor vehicles and used parts of motor vehicles,28 HLS 12RS-1737 ORIGINAL
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excluding tires and rims, and shall not apply to wreckers or dismantlers of motor1
vehicles who are licensed pursuant to the provisions of R.S. 32:783 et seq.2
(3) Private residential sales commonly known as "garage sales" or "yard3
sales" as long as such sales take place at a residential address.4
(4) Any bona fide charity possessing a valid exemption under Section5
501(c)(3) of the Internal Revenue Code.6
(5) The operations of a company that has received a permit, registration, or7
other authorization from the Department of Environmental Quality for the collection,8
transportation, treatment, storage, processing, or disposal of solid waste as defined9
in R.S. 30:2153.10
(6) Persons operating as pawnbrokers pursuant to R.S. 37:1785.11
(7) The purchase of firearms for disposal from a law enforcement agency.12
(8) The purchase of materials from any manufacturing, industrial, or other13
commercial vendor that generates, as a byproduct or recyclable waste, or sells such14
materials in the ordinary course of its business.15
§1965. Change in location to be noted on license 16
If after issuance and delivery of a license under the provisions of this Chapter17
any change is made in the location of the place of business designated therein, the18
business shall not be conducted at the new location or under such license, until the19
official issuing the license notes the change on the license, and the superintendent20
of police of the city or the sheriff of the parish in which the scrap metal recycling21
facility is doing business is notified in writing of the change.22
§1966. Hours of business 23
An operator shall not enter into any transactions for the purchase of scrap24
metal before the hour of 7 o'clock a.m. nor after the hour of 7 o'clock p.m. except on25
Saturdays and during the month of December, during which time the hour of 726
o'clock p.m. shall be extended to 10 o'clock p.m. 27
§1967. Record of scrap metal purchased required; exceptions; retention period;28
inspections by law enforcement; violations; penalty29 HLS 12RS-1737 ORIGINAL
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A. Every operator shall either keep a register and file reports or1
electronically maintain data and be capable of readily providing reports, as specified2
in Subsection B of this Section, in the form prescribed by the Department of Public3
Safety and Corrections which shall contain the following information:4
(a) The name and address of the residence or place of business of the person5
required to either keep the register and file reports or electronically maintain the data6
and generate the requested reports.7
(b) The date and place of each such purchase.8
(c) The name and address of the person or persons from whom the material9
was purchased, including the distinctive number of the person's or persons' Louisiana10
driver's license, driver's license from another state, passport, military identification,11
or identification issued by a governmental agency or the United States Postal12
Service. If the person cannot produce any of the above forms of identification at the13
time of purchase, the purchaser shall not complete the transaction.14
(d) The motor vehicle license number of the vehicle or conveyance on which15
such material was delivered.16
(e) A full description of all such material purchased, including the weight of17
the material and whether it consists of bars, kegs, cable, ingots, rods, tubing wire,18
wire scraps, clamps, connectors, or other appurtenances or some combination19
thereof.20
(f) A full description of railroad track materials purchased, including the21
weight and whether it consists of rail, switch components, spikes, angle bars, tie22
plates, or bolts of the type used to construct railroads or other appurtenances or some23
combination thereof.24
B. Each operator shall keep either one copy of such completed form in a25
separate register or book or maintain the information in electronic format as provided26
in Subsection A of this Section which shall be kept for a period of three years at his27
place of business and shall be made available for inspection by any peace officer or28
law enforcement official at any time during the three-year period.29 HLS 12RS-1737 ORIGINAL
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C. Failure to maintain the information or the register or to produce a report1
requested by any peace officer or law enforcement official as required by this2
Section shall be prima facie evidence that the person receiving such material3
described in this Section and not registered or reported, received it knowing it to be4
stolen, in violation of R.S. 14:69.5
§1968. Photographic and other records; exceptions6
In addition to the information required in R.S. 37:1967, every operator shall7
be required to obtain a photograph of a person selling or delivering scrap metal to the8
facility. The quality of such photograph shall be sufficient to readily identify the9
person depicted. In lieu of the photograph of the person selling or delivering the10
scrap metal, the operator may obtain either a thumbprint of such person, the quality11
of which thumbprint shall be sufficient to identify the person, or a photocopy of the12
person's Louisiana driver's license, driver's license from another state, passport,13
military identification, or identification issued by a governmental agency or the14
United States Postal Service. Each photograph, thumbprint, or photocopy, as the15
case may be, shall be cross-referenced with the ledger entry required by R.S.16
37:1967. The photograph, thumbprint, or photocopy shall be preserved for a period17
of at least a year. Photographs shall be made available to the law enforcement18
agency within twenty-four hours after the request.19
§1969. Scrap metal; purchase when forbidden20
A. No operator shall willfully or knowingly purchase scrap metal unpaid for21
by the seller or not owned by the seller.22
B. No operator shall purchase scrap metal, other than aluminum in the form23
of cans, from a person under the age of eighteen. Lack of knowledge of age shall not24
be a defense to a violation of this Subsection.25
C. No operator shall purchase precious metals.26
§1970. Statement by seller required; failure to exact statement evidence of27
fraudulent intent; exoneration from criminal knowledge28 HLS 12RS-1737 ORIGINAL
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A. Every operator shall obtain a signed statement from the seller that the1
scrap metal has been paid for or is owned by the seller, and a failure of the operator2
to exact a statement from the seller shall be prima facie evidence of the fraudulent3
intent and guilty knowledge on the part of the operator within the meaning of this4
Chapter, sufficient to warrant a conviction.5
B. In transactions involving railroad track materials, an operator shall require6
the party seeking to sell or dispose of the materials to furnish a signed statement7
from the appropriate railroad company consenting to the sale of the railroad track8
materials identified in the statement, which shall be retained by the operator. The9
statement shall include the name of the railroad company consenting to the sale and10
the name, employee number, and phone number of the person signing the statement11
authorizing the sale. The operator shall attempt to verify the authenticity of the12
statement authorizing the sale of the railroad track materials.13
C.(1) An operator shall not purchase any of the following materials without14
first receiving a signed statement from the appropriate company or governmental15
entity consenting to the sale of the materials identified in the statement:16
(a) Infrastructure grade regulated material that has been burned to remove17
insulation, unless the seller can produce written proof that the regulated material was18
lawfully burned.19
(b) Burnt wire.20
(c) Regulated material where the manufacturer's make, model, serial or21
personal identification number, or other identifying marks engraved or etched upon22
the material have been conspicuously removed or altered.23
(d) Regulated material marked with the name, initials, or otherwise identified24
as the property of an electrical company, a telephone company, a cable company, a25
water company or other utility company, or a governmental entity.26
(e) A utility access cover.27
(f) A water meter cover.28
(g) A road or bridge guard rail.29 HLS 12RS-1737 ORIGINAL
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(h) A highway or street sign.1
(i) A traffic directional or control sign or signal.2
(j) A metal beer keg that is clearly marked as being the property of the beer3
manufacturer.4
(k) A catalytic converter that is not part of an entire motor vehicle.5
(2) The statement shall include the name of the company or governmental6
entity consenting to the sale and the name, employee number, and phone number of7
the person signing the statement authorizing the sale. The operator shall attempt to8
verify the authenticity of the statement authorizing the sale of the materials. The9
statement shall be retained by the operator.10
C. An operator who obtains the required statement from the seller shall be11
exonerated from any fraudulent, willful, or criminal knowledge within the meaning12
of this Chapter.13
§1971. Book to be open for inspection14
The book containing the record of purchase as provided for in R.S. 37:196715
and the various articles purchased and referred to therein shall at all times be open16
to the inspection of law enforcement officers of the office of state police, or the17
superintendent of police or sheriff of the parish or anyone designated by them of the18
city, town, or parish in which the operator does business.19
§1972. Daily report of entries20
A.(1) Every operator licensed pursuant to this Chapter shall make out and21
deliver to the chief of police of the city or town or to the sheriff of the parish in22
which he is doing business, every day before the hour of twelve noon, a legible and23
correct copy of the entries in the book mentioned in R.S. 37:1967 during the previous24
day. The means for providing the transactional information required under this25
Section shall be by electronic transmission.26
(2) The appropriate law enforcement official may, for purposes of an27
investigation of a crime relating to a particular scrap metal transaction, request the28
operator to mail or fax such official the personally identifiable information relating29 HLS 12RS-1737 ORIGINAL
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to such transaction under investigation. The operator shall deliver the personally1
identifiable information relating to the identified transaction to the appropriate law2
enforcement official within twenty-four hours of the request.3
B. In addition to the daily report required in Subsection A of this Section,4
every operator licensed pursuant to this Chapter shall, every day before the hour of5
twelve noon, transmit the information contained in the entries in the book mentioned6
in R.S. 37:1967 during the previous day to an electronic database accessible by law7
enforcement.8
C. The operator shall have the responsibility of tendering the information9
provided for in Subsections A and B of this Section regardless of its use or nonuse10
by the chief of police in the city or town in which he is doing business or,11
alternatively, to the sheriff of the parish in which he is doing business. The tender12
of this information is a courtesy mandated by state law and which provides a benefit13
to the general public. The chief of police or sheriff shall not be mandated to take any14
particular action concerning the information tendered.15
§1973. Payment by check for copper or other metals required; check cashing16
prohibited17
A.(1) An operator shall not enter into any cash transactions in payment for18
the purchase of copper. Payment for copper shall be made in the form of a check19
made payable to the seller of the metal and mailed to the address recorded on the20
photo identification of the seller no earlier than five business days after the date of21
the transaction.22
(2) An operator shall not enter into any cash transactions in excess of three23
hundred dollars in payment for the purchase of metal property other than copper.24
Payments in excess of three hundred dollars for metals other than copper shall be25
made in the form of a check made payable to the name and address of the seller and26
may be tendered to the seller at the time of the transaction. The operator, at his27
discretion, may make payment by either cash or other method for transactions of28
three hundred dollars or less for all metals other than copper. 29 HLS 12RS-1737 ORIGINAL
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B. All payments made by check shall be reported separately in the daily1
reports required by R.S. 37:1967.2
C.(1) No operator shall allow a seller to engage in multiple small3
transactions for the purpose of circumventing this Section.4
(2) No operator shall cash, offer to cash, or provide the means for5
exchanging for cash a check issued to a seller pursuant to this Section on the6
premises of the operator's place of business, including but not limited to the use of7
an automatic teller machine.8
D. Violations of this Section shall be subject to the penalties provided for in9
R.S. 37:1974 and 1975.10
§1974. Violations; penalty11
A. Any licensed operator who violates, neglects, or refuses to comply with12
any provision of this Chapter, shall be fined not less than one thousand dollars, nor13
more than ten thousand dollars or be imprisoned for not less than thirty days nor14
more than sixty days, or both.15
B. For the second offense, his occupational license shall be suspended for16
a thirty-day period. For a third offense, his occupational license shall be revoked and17
he shall not thereafter be permitted to engage in the business of scrap metal recycling18
in the state of Louisiana.19
C. Any operator convicted of selling stolen goods shall have his occupational20
license revoked.21
D. The occupational license tax collector is hereby vested with the authority,22
upon motion in a court of competent jurisdiction, to rule the noncomplying operator23
to show cause in not less than two nor more than ten days, exclusive of holidays, as24
to why the noncomplying operator's retail occupational license should not be25
suspended or revoked as prescribed under this Chapter. This rule may be tried out26
of term and in chambers and shall be tried with preference and priority. If the rule27
is made absolute, the order rendered therein shall be considered a judgment in favor28
of the municipality or parish.29 HLS 12RS-1737 ORIGINAL
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§1975. Failure to comply; penalty1
A. Anyone acting as an unlicensed operator without complying with the2
provisions of this Chapter shall be fined not less than one thousand dollars or be3
imprisoned not less than thirty days nor more than sixty days, or both.4
B. For a second offense, the offender shall be fined not less than five5
thousand dollars or be imprisoned with or without hard labor for not more than two6
years, or both.7
C. For a third or subsequent offense, the offender shall be fined not less than8
ten thousand dollars or be imprisoned with or without hard labor for not more than9
five years, or both.10
Section 2. This Act shall become effective upon signature by the governor or, if not11
signed by the governor, upon expiration of the time for bills to become law without signature12
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If13
vetoed by the governor and subsequently approved by the legislature, this Act shall become14
effective on the day following such approval.15
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Anders HB No. 1188
Abstract: Establishes the "Louisiana Scrap Metal Recyclers Law".
Present law provides for the regulation of secondhand dealers.
Proposed law retains present law but adds an exemption for scrap metal recyclers licensed
under proposed law.
Present law prohibits a secondhand dealer from entering into any cash transactions in
payment for the purchase of junk or used or secondhand property. Payment shall be made
in the form of check, electronic transfers, or money order issued to the seller of the junk or
used or secondhand property and made payable to the name and address of the seller. All
payments made by check, electronic transfers, or money order shall be reported separately
in the daily reports required by present law.
Proposed law prohibits a secondhand dealer from entering into any cash transactions in
payment for the purchase of copper. Proposed law requires payment for copper to be made
in the form of a check issued to the seller of the metal and mailed to the address recorded on
the photo identification of the seller no earlier than 5 business days after the date of the
transaction. HLS 12RS-1737 ORIGINAL
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are additions.
Proposed law prohibits a secondhand dealer from entering into any cash transactions in
excess of $300 for the purchase of metal property other than copper. Payments in excess of
$300 for metals other than copper are to be made in the form of a check issued to the seller
of the metal and may be tendered to the seller at the time of the transaction. The secondhand
dealer, at his discretion, may make payment by either cash or other method for transactions
of $300 or less for all metals other than copper.
Proposed law requires all payments made by check to be reported separately in the daily
reports required by proposed law.
Proposed law prohibits a secondhand dealer from allowing a seller to engage in multiple
small transactions for the purpose of circumventing proposed law.
Proposed law prohibits a secondhand dealer from cashing, offering to cash, or providing the
means for exchanging for cash a check issued to a seller on the premises of the secondhand
dealer's place of business, including but not limited to the use of an automatic teller machine.
Proposed law provides that violations shall be subject to the penalties provided for in
proposed law.
Proposed law enacts and may be cited as the "Louisiana Scrap Metal Recyclers Law".
Proposed law defines "operator" as any person employed in responsible charge of operating
all or any portion of a scrap metal recycling facility.
Proposed law defines "railroad track materials" as steel in the form of railroad tracks or in
the form of rail, switch components, spikes, angle bars, tie plates, or bolts of the type used
in constructing railroads, or any combination of such materials.
Proposed law defines "scrap metal" as metal materials which are purchased for resale to be
recycled, including but not limited to ferrous materials, catalytic converters, auto hulks,
copper, copper wire, copper alloy, bronze, zinc, aluminum other than in the form of cans,
stainless steel, nickel alloys, or brass, whether in the form of bars, cable, ingots, rods, tubing,
wire, wire scraps, clamps or connectors, railroad track materials, water utility materials, and
used building components. The term shall not include precious metals, including but not
limited to gold, silver, and platinum.
Proposed law defines "scrap metal recycling facility" as any physical entity that has the
function of recycling scrap metal.
Proposed law defines "used building component" as any object produced or shaped by
human workmanship or tools that is an element of structural, architectural, archaeological,
historical, ornamental, cultural, utilitarian, decorative, or sentimental significance or interest,
which has been and may be used as an adjunct to or component or ornament of any building
or structure, regardless of monetary worth, age, size, shape, or condition, that is immovable
property, or fixture or component parts of immovable property of any nature or kind
whatsoever.
Proposed law defines "water utility materials" to include, but not be limited to water meters,
valves, pipes, and fittings.
Proposed law provides that no person shall do business as a scrap metal recycler in this state
without having first obtained the occupational license required by law. Proposed law further
provides that any person desiring a license as a scrap metal recycler shall make application
in writing, specifying the street number and house number of the building where the business
is to be carried on. HLS 12RS-1737 ORIGINAL
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Proposed law requires an applicant to also submit with his application a bond in favor of the
city or parish, as the case may be, where the business is to be established in the sum of
$2,500 with security conditioned for the due observance of all provisions of proposed law.
Proposed law provides that the provisions of proposed law shall not apply to:
(1)Dealers in coins and currency, dealers in antiques, nor to gun and knife shows or
other trade and hobby shows.
(2)Persons solely engaged in the business of buying, selling, trading in, or otherwise
acquiring or disposing of motor vehicles and used parts of motor vehicles, excluding
tires and rims, and shall not apply to wreckers or dismantlers of motor vehicles who
are licensed pursuant to present law.
(3)Private residential sales commonly known as "garage sales" or "yard sales" as long
as such sales take place at a residential address.
(4)Any bona fide charity possessing a valid exemption under Section 501(c)(3) of the
Internal Revenue Code.
(5)The operations of a company that has received a permit, registration, or other
authorization from the Dept. of Environmental Quality for the collection,
transportation, treatment, storage, processing, or disposal of solid waste as defined
in R.S. 30:2153.
(6)Persons operating as licensed pawnbrokers.
(7)The purchase of firearms for disposal from a law enforcement agency.
(8)The purchase of materials from any manufacturing, industrial, or other commercial
vendor that generates, as a byproduct or recyclable waste, or sells such materials in
the ordinary course of its business.
Proposed law provides that if any change is made in the location of the place of business
designated on a license, the business shall not be conducted at the new location or under
such license, until the official issuing the license notes the change on the license, and the
superintendent of police of the city or the sheriff of the parish in which the operator is doing
business is notified in writing of the change.
Proposed law prohibits an operator from entering into any transactions for the purchase of
scrap metal before the hour of 7 o'clock a.m. nor after the hour of 7 o'clock p.m. except on
Saturdays and during the month of December, during which time the hour of 7 o'clock p.m.
shall be extended to 10 o'clock p.m.
Proposed law requires every operator to either keep a register and file reports or
electronically maintain data and be capable of readily providing reports, in the form
prescribed by the Dept. of Public Safety and Corrections, which shall contain the following
information:
(1)The name and address of the residence or place of business of the person required
to either keep the register and file reports or electronically maintain the data and
generate the requested reports.
(2)The date and place of each such purchase.
(3)The name and address of the person or persons from whom the material was
purchased, including the distinctive number of the person's or persons' La. driver's
license, driver's license from another state, passport, military identification, or HLS 12RS-1737 ORIGINAL
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are additions.
identification issued by a governmental agency or the U. S. Postal Service. If the
person cannot produce any of the above forms of identification at the time of
purchase, the purchaser shall not complete the transaction.
(4)The motor vehicle license number of the vehicle or conveya nce on which such
material was delivered.
(5)A full description of all such material purchased, including the weight of the material
and whether it consists of bars, kegs, cable, ingots, rods, tubing wire, wire scraps,
clamps, connectors, or other appurtenances or some combination thereof.
(6)A full description of railroad track materials purchased, including the weight and
whether it consists of rail, switch components, spikes, angle bars, tie plates, or bolts
of the type used to construct railroads or other appurtenances or some combination
thereof.
Proposed law requires each operator to keep either one copy of such completed form in a
separate register or book or maintain the information in electronic format, which shall be
kept for a period of three years at his place of business and shall be made available for
inspection by any peace officer or law enforcement official at any time during the three-year
period.
Proposed law provides that failure to maintain the information or the register or to produce
a report requested by any peace officer or law enforcement official shall be prima facie
evidence that the person receiving the scrap metal not registered or reported, received it
knowing it to be stolen.
Proposed law requires every operator to obtain a photograph of a person selling or delivering
scrap metal to the facility. Proposed law further requires the quality of the photograph to be
sufficient to readily identify the person depicted.
Proposed law provides that, in lieu of the photograph of the person selling or delivering the
scrap metal, the operator may obtain either a thumbprint of such person, the quality of which
thumbprint shall be sufficient to identify the person, or a photocopy of the person's La.
driver's license, driver's license from another state, passport, military identification, or
identification issued by a governmental agency or the U. S. Postal Service.
Proposed law requires each photograph, thumbprint, or photocopy to be cross-referenced
with the ledger entry required by proposed law. Proposed law further requires the
photograph, thumbprint, or photocopy to be preserved for a period of at least a year.
Proposed law requires photographs to be made available to a law enforcement agency within
24 hours after the request.
Proposed law prohibits an operator from willfully or knowingly purchasing scrap metal
unpaid for by the seller or not owned by the seller.
Proposed law prohibits an operator from purchasing scrap metal, other than aluminum in the
form of cans, from a person under the age of eighteen.
Proposed law provides that a lack of knowledge of age shall not be a defense to a violation
of proposed law.
Proposed law prohibits an operator from purchasing precious metals.
Proposed law requires every operator to obtain a signed statement from the seller that the
scrap metal has been paid for or is owned by the seller, and a failure of the operator to exact HLS 12RS-1737 ORIGINAL
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are additions.
a statement from the seller shall be prima facie evidence of the fraudulent intent and guilty
knowledge on the part of the operator, sufficient to warrant a conviction.
Proposed law requires, in transactions involving railroad track materials, an operator to
require the party seeking to sell or dispose of the materials to furnish a signed statement
from the appropriate railroad company consenting to the sale of the railroad track materials
identified in the statement, which shall be retained by the operator.
Proposed law requires the statement to include the name of the railroad company consenting
to the sale and the name, employee number, and phone number of the person signing the
statement authorizing the sale.
Proposed law requires the operator to attempt to verify the authenticity of the statement
authorizing the sale of the railroad track materials.
Proposed law prohibits an operator from purchasing any of the following materials without
a signed statement from the appropriate company or governmental entity consenting to the
sale of the materials identified in the statement:
(1)Infrastructure grade regulated material that has been burned to remove insulation,
unless the seller can produce written proof that the regulated material was lawfully
burned.
(2)Burnt wire.
(3)Regulated material where the manufacturer's make, model, serial or personal
identification number, or other identifying marks engraved or etched upon the
material have been conspicuously removed or altered.
(4)Regulated material marked with the name, initials, or otherwise identified as the
property of an electrical company, a telephone company, a cable company, a water
company or other utility company, or a governmental entity.
(5)A utility access cover.
(6)A water meter cover.
(7)A road or bridge guard rail.
(8)A highway or street sign.
(9)A traffic directional or control sign or signal.
(10)A metal beer keg that is clearly marked as being the property of the beer
manufacturer.
(11)A catalytic converter that is not part of an entire motor vehicle.
Proposed law requires the statement to include the name of the company or governmental
entity consenting to the sale and the name, employee number, and phone number of the
person signing the statement authorizing the sale.
Proposed law requires the operator to attempt to verify the authenticity of the statement
authorizing the sale of the materials. Proposed law further requires the operator to retain the
statement.
Proposed law provides that an operator who obtains the required statement from the seller
shall be exonerated from any fraudulent, willful, or criminal knowledge. HLS 12RS-1737 ORIGINAL
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are additions.
Proposed law requires the book containing the record of purchase and the various articles
purchased and referred to therein to be open at all times to the inspection of law enforcement
officers of the office of state police, or the superintendent of police or sheriff of the parish
or anyone designated by them of the city, town, or parish in which the operator does
business.
Proposed law requires every operator to make out and deliver by electronic transmission to
the chief of police of the city or town or to the sheriff of the parish in which he is doing
business, every day before the hour of twelve noon, a legible and correct copy of the entries
in the book during the previous day.
Proposed law authorizes the appropriate law enforcement official, for purposes of an
investigation of a crime relating to a particular scrap metal transaction, to request the
operator to mail or fax such official the personally identifiable information relating to such
transaction under investigation. Proposed law further requires the operator to deliver the
personally identifiable information relating to the identified transaction to the appropriate
law enforcement official within 24 hours of the request.
Proposed law requires every operator, in addition to the daily report required by proposed
law, to transmit, every day before the hour of twelve noon, the information contained in the
entries in the book mentioned proposed law during the previous day to an electronic database
accessible by law enforcement.
Proposed law provides that the operator shall have the responsibility of tendering the
information regardless of its use or nonuse by the chief of police in the city or town in which
he is doing business or, alternatively, to the sheriff of the parish in which he is doing
business. Proposed law further provides that the tender of this information is a courtesy
mandated by state law and which provides a benefit to the general public and the chief of
police or sheriff shall not be mandated to take any particular action concerning the
information tendered.
Proposed law prohibits a scrap metal recycler from entering into any cash transactions for
copper. Proposed law requires payment for copper to be made in the form of a check issued
to the seller of the metal and mailed to the address recorded on the photo identification of
the seller no earlier than 5 business days after the date of the transaction.
Proposed law prohibits a scrap metal recycler from entering into any cash transactions in
excess of $300 for the purchase of metal property other than copper. Payments in excess of
$300 for metals other than copper are to be made in the form of a check issued to the seller
of the metal and may be tendered to the seller at the time of the transaction. The scrap metal
recycler, at his discretion, may make payment by either cash or other method for transactions
of $300 or less for all metals other than copper.
Proposed law requires all payments made by check to be reported separately in the daily
reports required by proposed law.
Proposed law prohibits a scrap metal recycler from allowing a seller to engage in multiple
small transactions for the purpose of circumventing proposed law.
Proposed law prohibits a scrap metal recycler from cashing, offering to cash, or providing
the means for exchanging for cash a check issued to a seller on the premises of the scrap
metal recycler's place of business, including but not limited to the use of an automatic teller
machine.
Proposed law provides that violations shall be subject to the penalties provided for in
proposed law. HLS 12RS-1737 ORIGINAL
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are additions.
Proposed law provides that any licensed operator who violates, neglects, or refuses to
comply with any provision of proposed law, shall be fined not less than $1000, nor more
than $10,000 or be imprisoned for not less than 30 days nor more than 60 days, or both.
Proposed law provides that, for the second offense, the operator's license shall be suspended
for a 30-day period.
Proposed law provides that, for a third offense, the operator's license shall be revoked and
he shall not thereafter be permitted to engage in the business of scrap metal recycling in the
state of La.
Proposed law authorizes the occupational license tax collector to rule, upon motion in a court
of competent jurisdiction, the noncomplying operator to show cause in not less than two nor
more than ten days, exclusive of holidays, as to why the noncomplying operator's retail
occupational license should not be suspended or revoked.
Proposed law provides that this rule may be tried out of term and in chambers and shall be
tried with preference and priority. If the rule is made absolute, the order rendered therein
shall be considered a judgment in favor of the municipality or parish.
Proposed law provides that any operator convicted of selling stolen goods shall have his
license revoked.
Proposed law provides that anyone acting as an unlicensed operator without complying with
the provisions of proposed law shall be fined not less than $1000 or be imprisoned not less
than 30 days nor more than 60 days, or both.
Proposed law provides that, for a second offense, the unlicensed operator shall be fined not
less than $5,000 or be imprisoned with or without hard labor for not more than two years,
or both.
Proposed law provides that, for a third or subsequent offense, the unlicensed operator shall
be fined not less than $10,000 or be imprisoned with or without hard labor for not more than
five years, or both.
Effective upon signature of the governor or upon lapse of time for gubernatorial action.
(Amends R.S. 37:1861(B)(intro. para.) and 1864.3; Adds R.S. 37:1861(B)(6) and 1961-
1975)