ENROLLED
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Regular Session, 2012
HOUSE BILL NO. 1188 (Substitute for House Bill No. 802 by Representative Anders)
BY REPRESENTATIVES ANDERS, ADAMS, ARMES, BADON, BILLIOT, BROWN,
BURRELL, DIXON, GISCLAIR, HARRIS, HARRISON, HENSGENS, KATRINA
JACKSON, LEOPOLD, JAY MORRI S, PONTI, PYLANT, REYNOLDS,
RICHARDSON, AND ST. GERMAI N AND SENATOR THOMPSON
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 1977, 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 provide for form of payments;12
to prohibit the purchase of scrap metal not owned by the seller; to prohibit scrap13
metal purchases from persons under the age of eighteen; to require a statement of14
ownership from the seller; to provide that failure to obtain the statement shall be15
prima facie evidence of fraud; to provide for exoneration from fraudulent, willful,16
or criminal knowledge; to require daily reports; to require the use of a national17
database; to provide for violations; to provide for penalties; to provide for18
preemption; to provide for a sunset date; to provide for an effective date; and to19
provide for related matters.20
Be it enacted by the Legislature of Louisiana:21
Section 1. R.S. 37:1861(B)(introductory paragraph) and 1864.3 are hereby amended22
and reenacted and R.S. 37:1861(B)(6) and Chapter 22 of Title 37 of the Louisiana Revised23 ENROLLEDHB NO. 1188
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Statutes of 1950, comprised of R.S. 37:1961 through 1977, is hereby enacted to read as1
follows: 2
§1861. "Secondhand dealer" defined3
* * *4
B. Except as provided for in R.S. 37:1864.3 and 1869.1 R.S. 37:1869.1, the5
provisions of this Part shall not apply to:6
* * *7
(6) Purchases of scrap metal by persons operating as a scrap metal recycler8
under the provisions of R.S. 37:1961 et seq.9
* * *10
§1864.3. Payment by check or money order for copper or other metals required;11
check cashing prohibited; penalties12
A.(1) A secondhand dealer shall not enter into any cash transactions in13
payment for the purchase of junk or used or secondhand property copper. Payment14
for copper shall be made in the form of a check, electronic transfers, or money order15
issued to the seller of the junk or used or secondhand property and made payable to16
the name and address of the seller made payable to the seller of the metal and mailed17
to the address recorded on the photo identification of the seller no earlier than five18
business days after the date of the transaction.19
(2) A secondhand dealer shall not enter into any cash transactions in excess20
of three hundred dollars in payment for the purchase of metal property other than21
copper. Payments in excess of three hundred dollars for metals other than copper22
shall be made in the form of a check made payable to the name and address of the23
seller and may be tendered to the seller at the time of the transaction. The24
secondhand dealer, at his discretion, may make payment by either cash or other25
method for transactions of three hundred dollars or less for all metals other than26
copper.27
B. All payments made by check , electronic transfers, or money order shall28
be reported separately in the daily reports required by R.S. 37:1866. 29 ENROLLEDHB NO. 1188
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C.(1) No secondhand dealer shall allow a seller to engage in multiple1
transactions within a twenty-four hour period totaling more than three hundred2
dollars for the purpose of circumventing this Section.3
(2) No secondhand dealer shall cash, offer to cash, or provide the means for4
exchanging for cash a check issued to a seller pursuant to this Section on the5
premises of the secondhand dealer's place of business, including but not limited to6
the use of an automatic teller machine.7
D. Violations of this Section shall be subject to the penalties provided for in8
R.S. 37:1869 and 1870.9
* * *10
CHAPTER 22. SCRAP METAL RECYCLERS11
§1961. Short title12
This Chapter shall be known and may be cited as the "Louisiana Scrap Metal13
Recyclers Law".14
§1962. Definitions15
As used in this Chapter, the following words shall have the meaning ascribed16
to them in this Section unless the context clearly indicates otherwise:17
(1) "Operator" means any person employed in responsible charge of18
operating all or any portion of a scrap metal recycling facility.19
(2) "Railroad track materials" means steel in the form of railroad tracks or20
in the form of rail, switch components, spikes, angle bars, tie plates, or bolts of the21
type used in constructing railroads, or any combination of such materials.22
(3) "Scrap metal" means metal materials which are purchased for resale to23
be recycled, including but not limited to ferrous materials, catalytic converters, auto24
hulks, copper, copper wire, copper alloy, bronze, zinc, aluminum other than in the25
form of cans, stainless steel, nickel alloys, or brass, whether in the form of bars,26
cable, ingots, rods, tubing, wire, wire scraps, clamps or connectors, railroad track27
materials, water utility materials, and used building components. The term shall not28
include precious metals, including but not limited to gold, silver, and platinum.29 ENROLLEDHB NO. 1188
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(4) "Scrap metal recycling facility" means any physical entity that has the1
function of recycling scrap metal.2
(5) "Used building component" means any object produced or shaped by3
human workmanship or tools that is an element of structural, architectural,4
archaeological, historical, ornamental, cultural, utilitarian, decorative, or sentimental5
significance or interest, which has been and may be used as an adjunct to or6
component or ornament of any building or structure, regardless of monetary worth,7
age, size, shape, or condition, that is immovable property, or fixtures or component8
parts of immovable property of any nature or kind whatsoever.9
(6) "Water utility materials" shall include but not be limited to water meters,10
valves, pipes, and fittings.11
§1963. License required; application; bond12
No person shall do business as a scrap metal recycler in this state without13
having first obtained the occupational license required by law. Any person desiring14
a license as a scrap metal recycler shall make application in writing, specifying the15
street number and house number of the building where the business is to be carried16
on. He shall also submit with his application a bond in favor of the city or parish, as17
the case may be, where the business is to be established in the sum of two thousand18
five hundred dollars with security conditioned for the due observance of all19
provisions of this Chapter. 20
§1964. Exemptions21
The provisions of this Chapter shall not apply to:22
(1) Dealers in coins and currency, dealers in antiques, nor to gun and knife23
shows or other trade and hobby shows.24
(2) Persons solely engaged in the business of buying, selling, trading in, or25
otherwise acquiring or disposing of motor vehicles and used parts of motor vehicles,26
excluding tires and rims, nor wreckers or dismantlers of motor vehicles who are27
licensed pursuant to the provisions of R.S. 32:783 et seq.28
(3) Private residential sales commonly known as "garage sales" or "yard29
sales" as long as such sales take place at a residential address.30 ENROLLEDHB NO. 1188
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(4) Any bona fide charity possessing a valid exemption under Section1
501(c)(3) of the Internal Revenue Code.2
(5) The operations of a company that has received a permit, registration, or3
other authorization from the Department of Environmental Quality for the collection,4
transportation, treatment, storage, processing of materials to be recycled or reused5
or disposal of solid waste as defined in R.S. 30:2153.6
(6) Persons operating as pawnbrokers pursuant to R.S. 37:1785.7
(7) The purchase of firearms for disposal from a law enforcement agency.8
(8) The purchase of materials from any manufacturing, industrial, or other9
commercial vendor that generates the materials as a byproduct or recyclable waste10
or sells such materials in the ordinary course of its business.11
§1965. Change in location to be noted on license 12
If after issuance and delivery of a license under the provisions of this Chapter13
any change is made in the location of the place of business designated therein, the14
business shall not be conducted at the new location or under such license, until the15
official issuing the license notes the change on the license, and the superintendent16
of police of the city or the sheriff of the parish in which the scrap metal recycling17
facility is doing business is notified in writing of the change.18
§1966. Hours of business 19
An operator shall not enter into any transactions for the purchase of scrap20
metal before the hour of 7:00 a.m. nor after the hour of 7:00 p.m. except on21
Saturdays and during the month of December, during which time the hour of 7:0022
p.m. shall be extended to 10:00 p.m. 23
§1967. Record of scrap metal purchased required; exceptions; retention period;24
inspections by law enforcement; violations; penalty25
A. Every operator shall either keep a register and file reports or26
electronically maintain data and be capable of readily providing reports, as specified27
in Subsection B of this Section, in the form prescribed by the Department of Public28
Safety and Corrections which shall contain the following information:29 ENROLLEDHB NO. 1188
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(1) The name and address of the residence or place of business of the person1
required to either keep the register and file reports or electronically maintain the data2
and generate the requested reports.3
(2) The date and place of each such purchase.4
(3) The name and address of the person or persons from whom the material5
was purchased, including the distinctive number of each person's Louisiana driver's6
license, driver's license from another state, passport, military identification, or7
identification issued by a governmental agency or the United States Postal Service.8
If the person cannot produce any of the above forms of identification at the time of9
purchase, the purchaser shall not complete the transaction.10
(4) The motor vehicle license number of the vehicle or conveyance on which11
such material was delivered.12
(5) A full description of all such material purchased, including the weight of13
the material and whether it consists of bars, kegs, cable, ingots, rods, tubing wire,14
wire scraps, clamps, connectors, or other appurtenances or some combination15
thereof.16
(6) A full description of railroad track materials purchased, including the17
weight and whether it consists of rail, switch components, spikes, angle bars, tie18
plates, or bolts of the type used to construct railroads or other appurtenances or some19
combination thereof.20
B. Each operator shall keep either one copy of such completed form in a21
separate register or book or maintain the information in electronic format as provided22
in Subsection A of this Section which shall be kept for a period of three years at his23
place of business and shall be made available for inspection by any peace officer or24
law enforcement official at any time during the three-year period.25
C. Failure to maintain the information or the register or to produce a report26
requested by any peace officer or law enforcement official as required by this27
Section shall be prima facie evidence that the person receiving such material28
described in this Section that is not registered or reported, received it knowing it to29
be stolen, in violation of R.S. 14:69.30 ENROLLEDHB NO. 1188
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§1968. Photographic and other records; exceptions1
A. In addition to the information required in R.S. 37:1967, every operator2
shall be required to obtain a photograph of a person selling or delivering scrap metal3
to the facility. The quality of such photograph shall be sufficient to readily identify4
the person depicted. In lieu of the photograph of the person selling or delivering the5
scrap metal, the operator may obtain either a thumbprint of such person, the quality6
of which thumbprint shall be sufficient to identify the person, or a photocopy of the7
person's Louisiana driver's license, driver's license from another state, passport,8
military identification, or identification issued by a governmental agency or the9
United States Postal Service. Each photograph, thumbprint, or photocopy, as the10
case may be, shall be cross-referenced with the ledger entry required by R.S.11
37:1967. The photograph, thumbprint, or photocopy shall be preserved for a period12
of at least a year. Photographs shall be made available to the law enforcement13
agency within twenty-four hours after the request.14
B. In addition to the information required in R.S. 37:1967, every operator15
shall be required to obtain a photograph of all scrap metal purchased. The quality16
of the photograph shall be sufficient to readily identify each type of scrap metal17
depicted. The operator shall obtain multiple photographs if necessary to properly18
record the scrap metal purchased. Each photograph shall be cross-referenced with19
the ledger entry required by R.S. 37:1967 and shall be preserved for a period of at20
least one year. Photographs shall be made available to law enforcement within21
twenty-four hours after a request.22
§1969. Scrap metal; purchase when forbidden23
A. No operator shall willfully or knowingly purchase scrap metal unpaid for24
by the seller or not owned by the seller.25
B. No operator shall purchase scrap metal, other than aluminum in the form26
of cans, from a person under the age of eighteen. Lack of knowledge of age shall not27
be a defense to a violation of this Subsection.28
C. No operator shall purchase precious metals.29 ENROLLEDHB NO. 1188
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§1970. Statement by seller required; failure to exact statement evidence of1
fraudulent intent; exoneration from criminal knowledge2
A. Every operator shall obtain a signed statement from the seller that the3
scrap metal has been paid for or is owned by the seller, and a failure of the operator4
to exact a statement from the seller shall be prima facie evidence of the fraudulent5
intent and guilty knowledge on the part of the operator within the meaning of this6
Chapter, sufficient to warrant a conviction.7
B. In transactions involving railroad track materials, an operator shall require8
the party seeking to sell or dispose of the materials to furnish a signed statement9
from the appropriate railroad company consenting to the sale of the railroad track10
materials identified in the statement, which shall be retained by the operator. The11
statement shall include the name of the railroad company consenting to the sale and12
the name, employee number, and phone number of the person signing the statement13
authorizing the sale. The operator shall attempt to verify the authenticity of the14
statement authorizing the sale of the railroad track materials.15
C.(1) An operator shall not purchase any of the following materials without16
first receiving a signed statement from the company or governmental entity owning17
the materials and consenting to the sale of the materials identified in the statement:18
(a) Infrastructure grade regulated material that has been burned to remove19
insulation, unless the seller can produce written proof that the regulated material was20
lawfully burned.21
(b) Burnt wire.22
(c) Regulated material where the manufacturer's make, model, serial or23
personal identification number, or other identifying marks engraved or etched upon24
the material have been conspicuously removed or altered.25
(d) Regulated material marked with the name, initials, or otherwise identified26
as the property of an electrical company, a telephone company, a cable company, a27
water company or other utility company, or a governmental entity.28
(e) A utility access cover.29
(f) A water meter cover.30 ENROLLEDHB NO. 1188
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(g) A road or bridge guard rail.1
(h) A highway or street sign.2
(i) A traffic directional or control sign or signal.3
(j) A metal beer keg that is clearly marked as being the property of the beer4
manufacturer.5
(k) A catalytic converter that is not part of an entire motor vehicle.6
(2) The statement shall include the name of the company or governmental7
entity consenting to the sale and the name, employee number, and phone number of8
the person signing the statement authorizing the sale. The operator shall attempt to9
verify the authenticity of the statement authorizing the sale of the materials. The10
statement shall be retained by the operator.11
D. An operator who obtains the required statement from the seller shall be12
exonerated from any fraudulent, willful, or criminal knowledge within the meaning13
of this Chapter.14
§1971. Book to be open for inspection15
The book containing the record of purchase as provided for in R.S. 37:196716
and the various articles purchased and referred to therein shall at all times be open17
to the inspection of law enforcement officers of the office of state police, or the18
superintendent of police or sheriff of the parish or anyone designated by them of the19
city, town, or parish in which the operator does business.20
§1972. Daily report of entries21
A.(1) Every operator licensed pursuant to this Chapter shall produce and22
deliver to the chief of police of the city or town or to the sheriff of the parish in23
which he is doing business, every day before the hour of twelve noon, a legible and24
correct copy of the entries in the book mentioned in R.S. 37:1967 during the previous25
day. The means for providing the transactional information required under this26
Section shall be by electronic transmission.27
(2) The appropriate law enforcement official may, for purposes of an28
investigation of a crime relating to a particular scrap metal transaction, request the29
operator to mail or fax the official the personally identifiable information relating to30 ENROLLEDHB NO. 1188
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the 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 required6
by R.S. 37:1967(B) during the previous day to an electronic database accessible by7
law 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 ENROLLEDHB NO. 1188
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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. Except for copper purchases, in lieu of a check, an operator may make3
payment to the seller in the form of a loadable payment card. The operator shall4
require verification of the seller's identification by a driver's license or similar means,5
and shall require verification of the seller's address by a current utility bill. The6
operator shall retain a copy of such utility bill.7
D.(1) No operator shall allow a seller to engage in multiple transactions8
within a twenty-four hour period totaling more than three hundred dollars for the9
purpose of circumventing this Section.10
(2) No operator shall cash, offer to cash, or provide the means for11
exchanging for cash a check issued to a seller pursuant to this Section on the12
premises of the operator's place of business, including but not limited to the use of13
an automatic teller machine.14
E. Violations of this Section shall be subject to the penalties provided for in15
R.S. 37:1974 and 1975.16
§1974. Violations; penalty17
A. Any licensed operator who violates, neglects, or refuses to comply with18
any provision of this Chapter, shall be fined not less than one thousand dollars, nor19
more than ten thousand dollars or be imprisoned for not less than thirty days nor20
more than sixty days, or both.21
B. For the second offense, his occupational license shall be suspended for22
a thirty-day period. For a third offense, his occupational license shall be revoked and23
he shall not thereafter be permitted to engage in the business of scrap metal recycling24
in the state of Louisiana.25
C. Any operator convicted of selling stolen goods shall have his occupational26
license revoked.27
D. The occupational license tax collector is hereby vested with the authority,28
upon motion in a court of competent jurisdiction, to rule the noncomplying operator29
to show cause in not less than two nor more than ten days, exclusive of holidays, as30 ENROLLEDHB NO. 1188
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to why the noncomplying operator's retail occupational license should not be1
suspended or revoked as prescribed under this Chapter. This rule may be tried out2
of term and in chambers and shall be tried with preference and priority. If the rule3
is made absolute, the order rendered therein shall be considered a judgment in favor4
of the municipality or parish.5
§1975. Failure to comply; penalty6
A. Anyone acting as an unlicensed operator without complying with the7
provisions of this Chapter shall be fined not less than one thousand dollars or be8
imprisoned not less than thirty days nor more than sixty days, or both.9
B. For a second offense, the offender shall be fined not less than five10
thousand dollars or be imprisoned with or without hard labor for not more than two11
years, or both.12
C. For a third or subsequent offense, the offender shall be fined not less than13
ten thousand dollars or be imprisoned with or without hard labor for not more than14
five years, or both.15
§1976. Preemption16
No governing authority of a political subdivision shall enact an ordinance in17
conflict with the provisions of this Chapter.18
§1977. Expiration19
The provisions of this Chapter shall expire on July 31, 2016.20 ENROLLEDHB NO. 1188
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Section 2. This Act shall become effective upon signature by the governor or, if not1
signed by the governor, upon expiration of the time for bills to become law without signature2
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If3
vetoed by the governor and subsequently approved by the legislature, this Act shall become4
effective on the day following such approval.5
SPEAKER OF THE HOUSE OF REPRESENTATI VES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: