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Regular Session, 2012
SENATE BILL NO. 529
BY SENATOR RISER
COMMERCIAL REGULATIONS. Establishes the Louisiana Scrap Metal Recyclers
Registration and Licensing Board and provides powers and duties. (gov sig)
AN ACT1
To enact R.S. 36:409(I), 37:1861(C), and Chapter 22 of Title 37 of the Louisiana Revised2
Statutes of 1950, to be comprised of R.S. 37:1961 through 1975, relative to used or3
secondhand property; to exempt scrap metal recyclers from the secondhand dealer4
law; to establish the Louisiana Scrap Metal Recyclers Registration and Licensing5
Board within the Department of Public Safety and Corrections; to provide for certain6
terms, conditions, and procedures; to provide for definitions; to provide for board7
membership; to provide for meetings of the board; to provide for compensation of8
the board; to establish a registration and licensing program for scrap metal recyclers;9
to provide for denial, revocation, and suspension of licenses; to require a license to10
operate as a scrap metal recycler; to provide for the application for licensure as a11
scrap metal recycler; to provide for expiration and renewals of licenses; to require12
changes in location to be noted on a license; to require records of scrap metal13
purchased; to require the records to be kept for three years; to require the records to14
be made available for inspection by law enforcement; to require photographic15
records of scrap metal purchased and of the sellers; to prohibit the purchase of scrap16
metal not owned by the seller; to prohibit scrap metal purchases from person under17 SB NO. 529
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the age of eighteen; to require a statement of ownership from the seller; to provide1
that failure to obtain the statement shall be prima facie evidence of fraud; to provide2
for exoneration from fraudulent, willful, or criminal knowledge; to require daily3
reports; to provide for violations; to provide for penalties; to provide for an effective4
date; and to provide for related matters.5
Be it enacted by the Legislature of Louisiana:6
Section 1. 36:409(I) is hereby enacted to read as follows:7
§409. Transfer of agencies to Department of Public Safety and Corrections8
* * *9
I. The Scrap Metal Recyclers Registration and Licensing Board (R.S.10
37:1961-1975) is placed within the Department of Public Safety and Corrections11
and shall exercise and perform its powers, duties, functions, and responsibilities12
in the manner provided for agencies transferred in accordance with R.S. 36:803.13
* * *14
Section 2. R.S. 37:1861(C) and Chapter 22 of Title 37 of the Louisiana Revised15
Statutes of 1950, comprised of R.S. 37:1961 through 1975, are hereby enacted to read as16
follows:17
§1861. "Secondhand dealer" defined18
* * *19
C. The provisions of this Part shall not apply to persons holding a license20
as a scrap metal recycler under the provisions of R.S. 37:1961 et seq.21
* * *22
CHAPTER 22. SCRAP METAL DEALERS23
§1961. Short title24
This Chapter shall be known and may be cited as the "Louisiana Scrap25
Metal Recyclers Registration and Licensing Law".26
§1962. Definitions27
As used in this Chapter, the following words shall the meaning ascribed28
to them in this Section unless the context clearly indicate otherwise:29 SB NO. 529
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(1) "Board" means the Scrap Metal Recyclers Registration and1
Licensing Board.2
(2) "License" means the document or documents issued by the board3
which attest to the registration and licensure of the operator.4
(3) "Licensee" means any scrap metal recycling facility holding a license5
issued by the board.6
(4) "Registration" means the process or act whereby an operator meets7
the requirements for obtaining a license.8
(5) "Operator" means any person employed in responsible charge of9
operating all or any portion of a scrap metal recycling facility.10
(6) "Scrap metal recycling facility" means any physical entity that has11
the function of recycling scrap metal, including but not limited to precious12
metals, ferrous materials, catalytic converters, auto hulks, copper, copper wire,13
copper alloy, bronze, zinc, aluminum other than in the form of cans, stainless14
steel, nickel alloys, or brass, whether in the form of bars, cable, ingots, rods,15
tubing, wire, wire scraps, clamps or connectors, railroad track materials, water16
utility materials, and used building components.17
(7) "Secretary" means the secretary of the Department of Public Safety18
and Corrections.19
§1963. Scrap Metal Recyclers Registration and Licensing Board; membership;20
meetings; compensation21
A. The governor shall appoint a Scrap Metal Recyclers Registration and22
Licensing Board to establish a program of registration and licensing for scrap23
metal recyclers.24
B. The board shall consist of the following members, all of whom shall25
be Louisiana residents, whose terms will commence when appointed by the26
governor:27
(1) Three representatives from parish government as nominated by the28
Police Jury Association of Louisiana.29 SB NO. 529
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(2) Three representatives from municipal government as nominated by1
the Louisiana Municipal Association.2
(3) Two representatives from the scrap metal recycling industry.3
(4) One ex officio member designated by the secretary to represent the4
Department of Public Safety and Corrections.5
C. The two representatives from the scrap metal recycling industry shall6
be licensed under the provisions of this Chapter.7
D. Each member of the board, with the exception of the ex officio8
member from the Department of Public Safety and Corrections, shall be9
appointed for a three-year term except for the initial appointments which shall10
be for terms of one, two, or three years so that not more than three11
appointments shall expire in any one year.12
E. Whenever a vacancy occurs on the board, either due to the expiration13
of a term of appointment, resignation, or other reason, the secretary shall14
appoint a successor of like qualifications. In the case of a vacancy occurring15
prior to the expiration of a full term appointment, the successor shall be16
appointed for the remainder of the term only. No members of the board shall17
be appointed for more than two consecutive terms.18
F. The board shall select from its membership a chairman and such19
officers as may be needed to conduct business.20
G. The board shall meet at least quarterly to conduct its business.21
Additional meetings may be called by the board to carry out the provisions of22
this Chapter. Five members shall constitute a quorum.23
H. The appointed board members shall serve without pay. Actual24
expenses incidental to meetings, examinations, and other activities essential to25
carry out the provisions of this Chapter shall be reimbursed to the members.26
I. The principal domicile of the board shall be that of the Department27
of Public Safety and Corrections.28
§1964. Scrap Metal Recyclers Registration and Licensing Board; powers and29 SB NO. 529
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duties; licenses; revocation and suspension1
The Scrap Metal Recyclers Registration and Licensing Board shall have2
the following powers and duties:3
(1) To establish a registration and licensing program for operators of4
scrap metal recycling facilities.5
(2) To develop policies related to registration and licensing6
requirements.7
(3) To establish standards and requirements for training operators of8
scrap metal recycling facilities.9
(4) To maintain records.10
(5) To adopt rules of procedure and policies required in performing its11
obligations, adopted in conformity with the Louisiana Administrative Procedure12
Act.13
(6) To license operators based on adopted criteria.14
(7) To revoke an operator's license, if it determines that the operator has15
practiced fraud or deception, has been significantly negligent in applying16
reasonable care, judgment, knowledge, or ability in the performance of his17
duties, or has become incompetent or unable to perform his duties in a proper18
manner.19
(8) To immediately suspend, upon submission of evidence of probable20
cause sufficient for revocation of a license, an operator's license if such action21
is deemed necessary to protect the public health or environment. Any operator22
whose license is so suspended shall be granted a hearing before the board within23
thirty days of the suspension. Any operator whose license has been revoked by24
the board may appeal in accordance with the Louisiana Administrative25
Procedure Act.26
§1965. License required; application; duration27
A. It shall be unlawful and shall constitute a misdemeanor for any28
person, firm, association, corporation, or trust to engage in business in whole29 SB NO. 529
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or in part as, or serve in the capacity of, or act as a scrap metal recycler in this1
state without first obtaining a license therefor from the board.2
B. Any person, firm, association, corporation, or trust having more than3
one place where the business is carried on or conducted shall be required to4
obtain and hold a current license for each location.5
C. Every person, firm, or corporation desiring to engage in the business6
of a scrap metal recycler shall apply in writing, on a form to be prescribed by7
the board, which form shall contain:8
(1) The name of the applicant.9
(2) The street address of applicant's principal place of business.10
(3) The type of business organization of applicant.11
(4) The applicant's financial standing.12
(5) The applicant's business integrity.13
(6) Whether the applicant has an established place of business and is14
engaged in the pursuit, avocation, or business for which a license or licenses are15
applied.16
(7) Whether the applicant is able to properly conduct the business for17
which a license or licenses are applied.18
(8) Such additional information as may be required by the board.19
D. In addition to the items required to be submitted by applicants for20
licensure pursuant to this Section, applicants shall also submit such evidence as21
the board shall prescribe, documenting that either the applicant or his general22
manager, office manager, title clerk, or other responsible representative of the23
applicant has attended a four-hour educational seminar or has registered to24
attend such seminar within sixty days after issuance of the license.25
E. All licenses issued under the provisions of this Chapter shall expire26
on the date indicated on the license and shall be nontransferable.27
F. All applications for the renewal of licenses shall be submitted on or28
before sixty days prior to the expiration date indicated on the license. If29 SB NO. 529
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application has not been made for the renewal of licenses, the licenses shall1
expire on the expiration date indicated on the license, and it shall be a violation2
of this Chapter for any person to represent himself and act thereafter in the3
capacity and business for which he was formerly licensed.4
G. Any licensee changing the name of the business, the business address,5
the ownership of the business, or opening any additional place of business shall6
notify the board within ten days of such change or be in violation of this7
Chapter.8
H. Any licensee ceasing to maintain its business shall surrender the9
license to the board within ten days and any failure to do so shall constitute a10
misdemeanor criminal violation and also subject the licensee to civil penalties11
as defined in this Chapter.12
§1966. Denial, revocation, or suspension of license; grounds; violations13
A. Except as otherwise provided in this Section, the board may deny an14
application for a license or revoke, suspend, or cancel a license after it has been15
granted for any of the following reasons:16
(1) On satisfactory proof of unfitness of the applicant or the licensee, as17
the case may be, under the standards established by this Chapter.18
(2) For fraudulent practices or any material misstatement made by an19
applicant in any application for license under the provisions of this Chapter.20
(3) For any willful failure to comply with any provisions of this Chapter,21
any provision relating to the proper record keeping and reporting, or with any22
rule or regulation adopted and promulgated by the board under authority23
vested in it by this Chapter.24
(4) Change of condition after license is granted resulting in failure to25
maintain the qualifications for licensure.26
(5) Continued or flagrant violation of any of the rules or regulations of27
the board.28
(6) Being an operator who:29 SB NO. 529
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(a) Resorts to or uses any false or misleading advertising in connection1
with his business.2
(b) Has committed any unlawful act which resulted in the revocation of3
any similar license in another state.4
(c) Has been convicted of a crime involving moral turpitude.5
(d) Has committed a fraudulent act in selling, purchasing, or otherwise6
dealing in scrap metals, or has misrepresented the terms and conditions of a7
sale, purchase, or contract for sale or purchase of scrap metals.8
(e) Has engaged in business under a past or present license issued9
pursuant to this Chapter or in any other course of conduct in such a manner as10
to cause injury to the public or to those with whom he is dealing.11
(f) Has failed to meet or maintain the conditions and requirements12
necessary to qualify for the issuance of a license.13
(g) Does not have an established place of business.14
(h) Is not operating from the address shown on his license if this change15
has not been reported to the board.16
B. The board shall not deny an application for a license or revoke or17
suspend a license based upon consideration of an existing or anticipated18
economic or competitive effect on other licensees in the surrounding community19
or territory.20
C. Each of the aforementioned grounds for suspension, revocation,21
cancellation, or denial of issuance or renewal of license shall also constitute a22
violation of this Chapter, unless the person involved has been tried and23
acquitted of the offense constituting such grounds.24
D. The suspension, revocation, cancellation, or refusal to issue or renew25
a license or the imposition of any other penalty by the board shall be in addition26
to any penalty which might be imposed upon any licensee upon a conviction at27
law for any violation of this Chapter.28
E. In the performance of its duties under this Section the board shall29 SB NO. 529
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have the authority to obtain from the Department of Public Safety and1
Corrections and other governmental agencies information relating to the2
criminal records of applicants for licensure under this Chapter.3
§1967. Change in location to be noted on license4
If after issuance and delivery of a license under the provisions of this5
Chapter any change is made in the location of the place of business designated6
therein, the business shall not be conducted at the new location or under such7
license, until the board notes the change on the license, and the superintendent8
of police of the city or the sheriff of the parish in which the licensee is doing9
business is notified in writing of the change.10
§1968. Record of scrap metal purchased required; exceptions; retention11
period; inspections by law enforcement; violations; penalty12
A.(1) Every operator shall either keep a register and file reports or13
electronically maintain data and be capable of readily providing reports, as14
specified in Subsection B of this Section, in the form prescribed by the15
Department of Public Safety and Corrections which shall contain the following16
information:17
(a) The name and address of the residence or place of business of the18
person required to either keep the register and file reports or electronically19
maintain the data and generate the requested reports.20
(b) The date and place of each such purchase.21
(c) The name and address of the person or persons from whom the22
material was purchased, including the distinctive number of the person's or23
persons' Louisiana driver's license, driver's license from another state, passport,24
military identification, or identification issued by a governmental agency or the25
United States Postal Service. If the person cannot produce any of the above26
forms of identification at the time of purchase, the purchaser shall not complete27
the transaction.28
(d) The motor vehicle license number of the vehicle or conveyance on29 SB NO. 529
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which such material was delivered.1
(e) A full description of all such material purchased, including the2
weight of the material and whether it consists of bars, kegs, cable, ingots, rods,3
tubing wire, wire scraps, clamps, connectors, or other appurtenances or some4
combination thereof.5
(f) A full description of railroad track materials purchased, including6
the weight and whether it consists of rail, switch components, spikes, angle bars,7
tie plates, or bolts of the type used to construct railroads or other appurtenances8
or some combination thereof.9
(2) This Section shall not apply to purchases of materials from any10
manufacturing, industrial, or other commercial vendor that generates, as a by-11
product or recyclable waste, or sells such materials in the ordinary course of its12
business.13
B. Each operator shall keep either one copy of such completed form in14
a separate register or book or maintain the information in electronic format as15
provided in Subsection A of this Section which shall be kept for a period of16
three years at his place of business and shall be made available for inspection17
by any peace officer or law enforcement official at any time during the three-18
year period.19
C. Failure to maintain the information or the register or to produce a20
report requested by any peace officer or law enforcement official as required21
by this Section shall be prima facie evidence that the person receiving such22
material described in this Section and not registered or reported, received it23
knowing it to be stolen, in violation of R.S. 14:69.24
D. Whoever violates this Section shall be fined not less than one25
thousand dollars or imprisoned for not less than thirty days nor more than six26
months, or both.27
§1969. Photographic and other records; exceptions28
A.(1) In addition to the information required in R.S. 37:1968, every29 SB NO. 529
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operator shall be required to obtain a photograph of a person selling or1
delivering scrap metal to the facility. The quality of such photograph shall be2
sufficient to readily identify the person depicted. In lieu of the photograph of3
the person selling or delivering the scrap metal, the operator may obtain either4
a thumbprint of such person, the quality of which thumbprint shall be sufficient5
to identify the person, or a photocopy of the person's Louisiana driver's license,6
driver's license from another state, passport, military identification, or7
identification issued by a governmental agency or the United States Postal8
Service. Each photograph, thumbprint, or photocopy, as the case may be, shall9
be cross-referenced with the ledger entry required by R.S. 37:1968. The10
photograph, thumbprint, or photocopy shall be preserved for a period of at11
least a year. Photographs shall be made available to the law enforcement12
agency within twenty-four hours after the request.13
§1970. Scrap metal; purchase when forbidden14
A. No operator shall willfully or knowingly purchase scrap metal unpaid15
for by the seller or not owned by the seller.16
B. No operator shall purchase scrap metal, other than aluminum in the17
form of cans, from a person under the age of eighteen. Lack of knowledge of18
age shall not be a defense to a violation of this Section.19
C. Whoever violates this Section shall be fined not less than twenty-five20
dollars nor more than one hundred dollars, or imprisoned for not less than21
fifteen days nor more than three months, or both.22
§1971. Statement by seller required; failure to exact statement evidence of23
fraudulent intent; exoneration from criminal knowledge24
A.(1) Every operator shall obtain a signed statement from the seller that25
the scrap metal has been paid for or is owned by the seller, and a failure of the26
operator to exact a statement from the seller shall be prima facie evidence of the27
fraudulent intent and guilty knowledge on the part of the dealer within the28
meaning of this Chapter, sufficient to warrant a conviction.29 SB NO. 529
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(2) In transactions involving railroad track materials, an operator shall1
require the party seeking to sell or dispose of the materials to furnish a signed2
statement from the appropriate railroad company consenting to the sale of the3
railroad track materials identified in the statement, which shall be retained by4
the operator. The statement shall include the name of the railroad company5
consenting to the sale and the name, employee number, and phone number of6
the person signing the statement authorizing the sale. The operator shall7
attempt to verify the authenticity of the statement authorizing the sale of the8
railroad track materials.9
B. An operator who obtains the required statement from the seller shall10
be exonerated from any fraudulent, willful, or criminal knowledge within the11
meaning of this Chapter.12
§1972. Book to be open for inspection13
The book containing the record of purchase as provided for in R.S.14
37:1968 and the various articles purchased and referred to therein shall at all15
times be open to the inspection of law enforcement officers of the office of state16
police, or the superintendent of police or sheriff of the parish or anyone17
designated by them of the city, town, or parish in which the operator does18
business.19
§1973. Daily report of entries20
A.(1) Every operator licensed under the provisions of this Chapter shall21
make out and deliver to the chief of police of the city or town or to the sheriff22
of the parish in which he is doing business, every day before the hour of twelve23
noon, a legible and correct copy of the entries in the book mentioned in R.S.24
37:1968 during the previous day. The means for providing the transactional25
information required under this 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, request28
the operator to mail or fax such official the personally identifiable information29 SB NO. 529
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relating to such transaction under investigation. The operator shall deliver the1
personally identifiable information relating to the identified transaction to the2
appropriate law enforcement official within twenty-four hours of the request.3
B. The operator shall have the responsibility of tendering the4
information provided for in Subsection A of this Section regardless of its use or5
nonuse by the chief of police in the city or town in which he is doing business or,6
alternatively, to the sheriff of the parish in which he is doing business. The7
tender of this information is a courtesy mandated by state law and which8
provides a benefit to the general public. The chief of police or sheriff shall not9
be mandated to take any particular action concerning the information tendered.10
§1974. Violations; penalty11
A. Any licensed operator who violates, neglects, or refuses to comply12
with any provision of this Chapter, shall be fined not less than two hundred fifty13
dollars, nor more than five hundred dollars or be imprisoned for not less than14
thirty days nor more than sixty days, or both.15
B. For the second offense, his license shall be suspended for a thirty-day16
period. For a third offense, his license shall be revoked and he shall not17
thereafter be permitted to engage in the business of scrap metal recycling in the18
state of Louisiana.19
C. Any operator convicted of selling stolen goods shall have his license20
revoked.21
§1975. Failure to comply; penalty22
A. Anyone acting as an unlicensed operator without complying with the23
provisions of this Chapter shall be fined not less than two hundred fifty dollars24
or be imprisoned not less than thirty days nor more than sixty days, or both.25
B. For a second offense, the offender shall be fined not more than two26
thousand dollars or be imprisoned with or without hard labor for not more than27
two years, or both.28
C. For a third or subsequent offense, the offender shall be fined not29 SB NO. 529
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more than ten thousand dollars or be imprisoned with or without hard labor for1
not more than five years, or both.2
Section 3. This Act shall become effective upon signature by the governor or, if not3
signed by the governor, upon expiration of the time for bills to become law without signature4
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If5
vetoed by the governor and subsequently approved by the legislature, this Act shall become6
effective on the day following such approval.7
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Michelle Ducharme.
DIGEST
Proposed law establishes the Scrap Metal Recyclers Registration and Licensing Board within
the Department of Public Safety and Corrections.
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.
Proposed law may be cited as the "Louisiana Scrap Metal Recyclers Registration and
Licensing Law".
Proposed law defines "board" as the Scrap Metal Recyclers Registration and Licensing
Board.
Proposed law defines "license" as the document or documents issued by the board which
attest to the registration and licensure of the operator.
Proposed law defines "licensee" as any scrap metal recycling facility holding a license issued
by the board.
Proposed law defines "registration" means the process or act whereby an operator meets the
requirements for obtaining a license.
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 "scrap metal recycling facility" as any physical entity that has the
function of recycling scrap metal, including but not limited to precious metals, 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.
Proposed law defines "secretary" as the secretary of the Dept. of Public Safety and
Corrections (DPS&C).
Proposed law requires the governor to appoint a Scrap Metal Recyclers Registration and
Licensing Board to establish a program of registration and licensing for scrap metal SB NO. 529
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recyclers.
Proposed law provides that the board shall consist of the following members, all of whom
shall be La. residents, whose terms will commence when appointed by the secretary:
1. Three representatives from parish government as nominated by the Police Jury
Association of La.
2. Three representatives from municipal government as nominated by the La.
Municipal Association.
3. Two representatives from the scrap metal recycling industry.
4. One ex officio member designated by the secretary to represent DPS&C.
Proposed law requires the two representatives from the scrap metal recycling industry to be
scrap metal recyclers licensed under proposed law.
Proposed law requires that each member of the board, with the exception of the ex officio
member from DPS&C, to be appointed for a three-year term except for the initial
appointments, which shall be for terms of one, two, or three years so that not more than three
appointments shall expire in any one year.
Proposed law requires the secretary, whenever a vacancy occurs on the board, either due to
the expiration of a term of appointment, resignation, or other reason, to appoint a successor
of like qualifications. Proposed law further provides that, in the case of a vacancy occurring
prior to the expiration of a full term appointment, the successor shall be appointed for the
remainder of the term only.
Proposed law prohibits members of the board from being appointed for more than two
consecutive terms.
Proposed law requires the board to select from its membership a chairman and such officers
as may be needed to conduct business.
Proposed law provides that five members shall constitute a quorum.
Proposed law requires the board to meet at least quarterly to conduct its business. Proposed
law further authorizes additional meetings to be called by the board to carry out the
provisions of proposed law.
Proposed law provides that the appointed board members shall serve without pay; however,
actual expenses incidental to meetings, examinations, and other activities essential to carry
out the provisions of proposed law shall be reimbursed to the members.
Proposed law provides that the principal domicile of the board shall be that of the Dept. of
Public Safety and Corrections.
Proposed law provides that the Scrap Metal Recyclers Registration and Licensing Board
shall have the following powers and duties:
1. To establish a registration and licensing program for operators of scrap metal
recycling facilities.
2. To develop policies related to registration and licensing requirements.
3. To establish standards and requirements for training operators of scrap metal
recycling facilities. SB NO. 529
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4. To maintain records.
5. To adopt rules of procedure and policies required in performing its obligations,
adopted in conformity with the La. Administrative Procedure Act.
6. To license operators based on adopted criteria.
7. To revoke an operator's license, if it determines that the operator has practiced fraud
or deception, has been significantly negligent in applying reasonable care, judgment,
knowledge, or ability in the performance of his duties, or has become incompetent
or unable to perform his duties in a proper manner.
8. To immediately suspend, upon submission of evidence of probable cause sufficient
for revocation of a license, an operator's license if such action is deemed necessary
to protect the public health or environment. Any operator whose license is so
suspended shall be granted a hearing before the board within thirty days of the
suspension. Any operator whose license has been revoked by the board may appeal
in accordance with the La. Administrative Procedure Act.
Proposed law provides that it shall be unlawful and shall constitute a misdemeanor for any
person, firm, association, corporation, or trust to engage in business in whole or in part as,
or serve in the capacity of, or act as a scrap metal recycler in this state without first obtaining
a license from the board.
Proposed law requires any person, firm, association, corporation, or trust having more than
one place where the business is carried on or conducted to obtain and hold a current license
for each location.
Proposed law requires every person, firm, or corporation desiring to engage in the business
of a scrap metal recycler to apply in writing, on a form to be prescribed by the board, which
form shall contain:
1. The name of the applicant.
2. The street address of applicant's principal place of business.
3. The type of business organization of applicant.
4. The applicant's financial standing.
5. The applicant's business integrity.
6. Whether the applicant has an established place of business and is engaged in the
pursuit, avocation, or business for which a license or licenses are applied.
7. Whether the applicant is able to properly conduct the business for which a license or
licenses are applied.
8. Such additional information as may be required by the board.
Proposed law further requires applicants to also submit such evidence as the board shall
prescribe, documenting that either the applicant or his general manager, office manager, title
clerk, or other responsible representative of the applicant has attended a four-hour
educational seminar or has registered to attend such seminar within 60 days after issuance
of the license.
Proposed law provides that all licenses issued under the provisions of proposed law expire
on the date indicated on the license and are nontransferable. SB NO. 529
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Page 17 of 21
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Proposed law requires all applications for the renewal of licenses to be submitted on or
before 60 days prior to the expiration date indicated on the license.
Proposed law provides that, if application has not been made for the renewal of licenses, the
licenses shall expire on the expiration date indicated on the license, and it shall be a violation
of proposed law for any person to represent himself and act thereafter in the capacity and
business for which he was formerly licensed.
Proposed law requires any licensee changing the name of the business, the business address,
the ownership of the business, or opening any additional place of business to notify the board
within ten days of such change or be in violation of proposed law.
Proposed law requires any licensee ceasing to maintain its business to surrender the license
to the board within ten days and any failure to do so shall constitute a misdemeanor criminal
violation and also subject the licensee to civil penalties.
Proposed law authorizes the board to deny an application for a license or revoke, suspend,
or cancel a license after it has been granted for any of the following reasons:
1. On satisfactory proof of unfitness of the applicant or the licensee, as the case may
be, under the standards established by proposed law.
2. For fraudulent practices or any material misstatement made by an applicant in any
application for license under the provisions of proposed law.
3. For any willful failure to comply with any provisions of proposed law, any provision
relating to the proper record keeping and reporting, or with any rule or regulation
adopted and promulgated by the board under authority vested in it by proposed law.
4. Change of condition after license is granted resulting in failure to maintain the
qualifications for licensure.
5. Continued or flagrant violation of any of the rules or regulations of the board.
6. Being an operator who:
(a)Resorts to or uses any false or misleading advertising in connection with his
business.
(b)Has committed any unlawful act which resulted in the revocation of any
similar license in another state.
(c)Has been convicted of a crime involving moral turpitude.
(d)Has committed a fraudulent act in selling, purchasing, or otherwise dealing
in scrap metals, or has misrepresented the terms and conditions of a sale,
purchase, or contract for sale or purchase of scrap metals.
(e)Has engaged in business under a past or present license issued pursuant to
this Chapter or in any other course of conduct in such a manner as to cause
injury to the public or to those with whom he is dealing.
(f)Has failed to meet or maintain the conditions and requirements necessary to
qualify for the issuance of a license.
(g)Does not have an established place of business.
(h)Is not operating from the address shown on his license if this change has not
been reported to the board. SB NO. 529
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Page 18 of 21
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Proposed law prohibits the board from denying an application for a license or revoking or
suspending a license based upon consideration of an existing or anticipated economic or
competitive effect on other licensees in the surrounding community or territory.
Proposed law provides that each of the authorized grounds for suspension, revocation,
cancellation, or denial of issuance or renewal of license shall also constitute a violation of
proposed law, unless the person involved has been tried and acquitted of the offense
constituting such grounds.
Proposed law provides that the suspension, revocation, cancellation, or refusal to issue or
renew a license or the imposition of any other penalty by the board shall be in addition to
any penalty which might be imposed upon any licensee upon a conviction at law for any
violation of proposed law.
Proposed law authorizes the board to obtain from the Dept. of Public Safety and Corrections
and other governmental agencies information relating to the criminal records of applicants
for licensure under proposed law.
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 board 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 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
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 conveyance 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 provides that proposed law shall not apply to purchases of materials from any
manufacturing, industrial, or other commercial vendor that generates, as a by-product or
recyclable waste, or sells such materials in the ordinary course of its business. SB NO. 529
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Page 19 of 21
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
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, in violation of R.S. 14:69.
Proposed law provides that whoever violates proposed law shall be fined not less than
$1,000 or imprisoned for not less than 30 days nor more than six months, or both.
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 18.
Proposed law provides that a lack of knowledge of age shall not be a defense to a violation
of proposed law.
Proposed law provides that whoever violates proposed law shall be fined not less than $25
nor more than $100, or imprisoned for not less than 15 days nor more than three months, or
both.
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 dealer to exact
a statement from the seller shall be prima facie evidence of the fraudulent intent and guilty
knowledge on the part of the dealer, 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. SB NO. 529
SLS 12RS-629 ORIGINAL
Page 20 of 21
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Proposed law requires the operator to attempt to verify the authenticity of the statement
authorizing the sale of the railroad track materials.
Proposed law provides that an operator who obtains the required statement from the seller
shall be exonerated from any fraudulent, willful, or criminal knowledge.
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 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 provides that any licensed operator who violates, neglects, or refuses to
comply with any provision of proposed law, shall be fined not less than $250, nor more than
$500 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 Louisiana.
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 $250 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
more than $2,000 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 more than $10,000 or be imprisoned with or without hard labor for not more
than five years, or both. SB NO. 529
SLS 12RS-629 ORIGINAL
Page 21 of 21
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Effective upon signature of the governor or upon lapse of time for gubernatorial action.
(Adds R.S. 36:409(I) and R.S. 37:1861(C) and 1961-1975)