SLS 14RS-841 ORIGINAL
Page 1 of 10
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Regular Session, 2014
SENATE BILL NO. 475
BY SENATOR KOSTELKA
COMMERCIAL REGULATIONS. Provides relative to scrap metal. (gov sig)
AN ACT1
To amend and reenact R.S. 37:1962, 1966, the introductory paragraph of 1967(A) and2
1967(B), 1968, 1969, 1970(A), (B), the introductory paragraph of 1970(C)(1), and3
1970(C)(2), 1971, 1972, 1973(A), (C), and (D), 1974, and 1975(A) and to repeal4
R.S. 32:718 and R.S. 37:1970(D), relative to scrap metal; to provide for the purchase5
of auto hulk; to provide for the purchase of scrap metal by scrap metal recyclers; to6
provide for the form of payment for scrap metal; to provide for preservation of scrap7
metal by purchaser; to provide for penalties and fines; to provide relative to unfair8
trade practices; to provide for terms, conditions, and procedures; and to provide for9
related matters.10
Be it enacted by the Legislature of Louisiana:11
Section 1. R.S. 37:1962, 1966, the introductory paragraph of 1967(A) and 1967(B),12
1968, 1969, 1970(A), (B), the introductory paragraph of 1970(C)(1) and 1970(C)(2), 1971,13
1972, 1973(A), (C), and (D), 1974, and 1975(A) are hereby amended and reenacted to read14
as follows:15
§1962. Definitions16
As used in this Chapter, the following words shall have the meaning ascribed17 SB NO. 475
SLS 14RS-841 ORIGINAL
Page 2 of 10
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
to them in this Section unless the context clearly indicates otherwise:1
(1) "Operator" means any person employed in responsible charge of2
operating all or any portion of a scrap metal recycling facility.3
(2) "Railroad track materials" means steel in the form of railroad tracks or in4
the form of rail, switch components, spikes, angle bars, tie plates, or bolts of the type5
used in constructing railroads, or any combination of such materials.6
(3)(2) "Scrap metal" means metal materials which are purchased for resale7
to be recycled, including but not limited to ferrous materials, catalytic converters,8
auto hulks, copper, copper wire, copper alloy, bronze, zinc, aluminum other than in9
the form of cans, stainless steel, nickel alloys, or brass, whether in the form of bars,10
cable, ingots, rods, tubing, wire, wire scraps, clamps or connectors, railroad track11
materials, water utility materials, and used building components. The term shall not12
include precious metals, including but not limited to gold, silver, and platinum.13
(3) "Scrap metal recycler" means any person in this state engaged in the14
business of buying, selling, recycling, or otherwise acquiring or disposing of15
scrap metal.16
(4) "Scrap metal recycling facility" means any physical entity that has the17
function of recycling scrap metal.18
(5) "Used building component" means any object produced or shaped by19
human workmanship or tools that is an element of structural, architectural,20
archaeological, historical, ornamental, cultural, utilitarian, decorative, or sentimental21
significance or interest, which has been and may be used as an adjunct to or22
component or ornament of any building or structure, regardless of monetary worth,23
age, size, shape, or condition, that is immovable property, or fixtures or component24
parts of immovable property of any nature or kind whatsoever.25
(6) "Water utility materials" shall include but not be limited to water meters,26
valves, pipes, and fittings.27
* * *28
§1966. Hours of business29 SB NO. 475
SLS 14RS-841 ORIGINAL
Page 3 of 10
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
An operator A scrap metal recycler shall not enter into any transactions for1
the purchase of scrap metal before the hour of 7:00 a.m. nor after the hour of 7:002
p.m. except on Saturdays and during the month of December, during which time the3
hour of 7:00 p.m. shall be extended to 10:00 p.m.4
§1967. Record of scrap metal purchased required; exceptions; retention period;5
inspections by law enforcement; violations; penalty6
A. Every operator scrap metal recycler shall either keep a register and file7
reports or electronically maintain data and be capable of readily providing reports,8
as specified in Subsection B of this Section, in the form prescribed by the9
Department of Public Safety and Corrections which shall contain the following10
information:11
* * *12
B. Each operator scrap metal recycler shall keep either one copy of such13
completed form in a separate register or book or maintain the information in14
electronic format as provided in Subsection A of this Section which shall be kept for15
a period of three years at his place of business and shall be made available for16
inspection by any peace officer or law enforcement official at any time during the17
three-year period.18
* * *19
§1968. Photographic and other records; exceptions20
A. In addition to the information required in R.S. 37:1967, every operator21
scrap metal recycler shall be required to obtain a photograph of a person selling or22
delivering scrap metal to the facility. The quality of such photograph shall be23
sufficient to readily identify the person depicted. In lieu of the photograph of the24
person selling or delivering the scrap metal, the operator scrap metal recycler may25
obtain either a thumbprint of such person, the quality of which thumbprint shall be26
sufficient to identify the person, or a photocopy of the person's Louisiana driver's27
license, driver's license from another state, passport, military identification, or28
identification issued by a governmental agency or the United States Postal Service.29 SB NO. 475
SLS 14RS-841 ORIGINAL
Page 4 of 10
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Each photograph, thumbprint, or photocopy, as the case may be, shall be1
cross-referenced with the ledger entry required by R.S. 37:1967. The photograph,2
thumbprint, or photocopy shall be preserved for a period of at least a year.3
Photographs shall be made available to the law enforcement agency within twenty-4
four hours after the request.5
B. In addition to the information required in R.S. 37:1967, every operator6
scrap metal recycler shall be required to obtain a photograph of all scrap metal7
purchased. The quality of the photograph shall be sufficient to readily identify each8
type of scrap metal depicted. The operator scrap metal recycler shall obtain9
multiple photographs if necessary to properly record the scrap metal purchased.10
Each photograph shall be cross-referenced with the ledger entry required by R.S.11
37:1967 and shall be preserved for a period of at least one year. Photographs shall12
be made available to law enforcement within twenty-four hours after a request.13
§1969. Scrap metal; purchase when forbidden14
A. No operator scrap metal recycler shall willfully or knowingly purchase15
scrap metal unpaid for by the seller or not owned by the seller.16
B. No operator scrap metal recycler shall purchase scrap metal, other than17
aluminum in the form of cans, from a person under the age of eighteen. Lack of18
knowledge of age shall not be a defense to a violation of this Subsection.19
C. No operator scrap metal recycler shall purchase precious metals.20
§1970. Statement by seller required ; failure to exact statement evidence of21
fraudulent intent; exoneration from criminal knowledge22
A. Every operator scrap metal recycler shall obtain a signed statement an23
affidavit from the seller that the scrap metal has been paid for or is owned by the24
seller, and a failure of the operator scrap metal recycler to exact a statement obtain25
an affidavit from the seller shall be prima facie evidence of the fraudulent intent and26
guilty knowledge on the part of the operator within the meaning of this Chapter27
scrap metal recycler, sufficient to warrant a conviction.28
B. In transactions involving railroad track materials, an operator a scrap29 SB NO. 475
SLS 14RS-841 ORIGINAL
Page 5 of 10
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
metal recycler shall require the party seeking to sell or dispose of the materials to1
furnish a signed statement an affidavit from the appropriate railroad company2
consenting to the sale of the railroad track materials identified in the statement,3
which shall be retained by the operator scrap metal recycler. The statement4
affidavit shall include the name of the railroad company consenting to the sale and5
the name, employee number, and phone number of the person signing the statement6
authorizing the sale. The operator shall attempt to verify the authenticity of the7
statement authorizing the sale of the railroad track materials.8
C.(1) An operator A scrap metal recycler shall not purchase any of the9
following materials without first receiving a signed statement an affidavit from the10
company or governmental entity owning the materials and consenting to the sale of11
the materials identified in the statement:12
* * *13
(2) The statement affidavit shall include the name of the company or14
governmental entity consenting to the sale and the name, employee number, and15
phone number of the person signing the statement authorizing the sale. The operator16
shall attempt to verify the authenticity of the statement affidavit authorizing the sale17
of the materials. The statement affidavit shall be retained by the operator scrap18
metal recycler.19
* * *20
§1971. Book to be open for inspection21
The book containing the record of purchase as provided for in R.S. 37:196722
and the various articles purchased and referred to therein shall at all times be open23
to the inspection of law enforcement officers of the office of state police, or the24
superintendent of police or sheriff of the parish or anyone designated by them of the25
city, town, or parish in which the operator scrap metal recycler does business.26
§1972. Daily report of entries27
A.(1) Every operator scrap metal recycler licensed pursuant to this Chapter28
shall produce and deliver to the chief of police of the city or town or to the sheriff29 SB NO. 475
SLS 14RS-841 ORIGINAL
Page 6 of 10
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
of the parish in which he is doing business, every day before the hour of twelve1
noon, a legible and correct copy of the entries in the book mentioned in R.S. 37:19672
during the previous day. The means for providing the transactional information3
required under this Section shall be by electronic transmission.4
(2) The appropriate law enforcement official may, for purposes of an5
investigation of a crime relating to a particular scrap metal transaction, request the6
operator scrap metal recycler to mail or fax the official the personally identifiable7
information relating to the transaction under investigation. The operator scrap8
metal recycler shall deliver the personally identifiable information relating to the9
identified transaction to the appropriate law enforcement official within twenty-four10
hours of the request.11
B. In addition to the daily report required in Subsection A of this Section,12
every operator scrap metal recycler licensed pursuant to this Chapter shall, every13
day before the hour of twelve noon, transmit the information contained in the entries14
in the book required by R.S. 37:1967(B) during the previous day to an electronic15
database accessible by law enforcement.16
C. The operator scrap metal recycler shall have the responsibility of17
tendering the information provided for in Subsections A and B of this Section18
regardless of its use or nonuse by the chief of police in the city or town in which he19
is doing business or, alternatively, to the sheriff of the parish in which he is doing20
business. The tender of this information is a courtesy mandated by state law and21
which provides a benefit to the general public. The chief of police or sheriff shall22
not be mandated to take any particular action concerning the information tendered.23
§1973. Payment by loadable payment card or check for copper or other metals24
required; check cashing prohibited25
A.(1) An operator A scrap metal recycler shall not enter into any cash26
transactions in payment for the purchase of copper. After five business days from the27
date of the transaction, payment for copper shall be made in the form of either a28
check made payable to the name and address of the seller of the scrap metal or a29 SB NO. 475
SLS 14RS-841 ORIGINAL
Page 7 of 10
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
loadable payment card and. Such payment shall be tendered to the seller in any of1
the following manners:2
(a) By mail to the address recorded on the photo identification of the seller.3
(b) In person at the place of business of the operator scrap metal recycler.4
(c) By electronic transfer.5
(2) An operator A scrap metal recycler shall not enter into any cash6
transactions in excess of three hundred dollars in payment for the purchase of metal7
property other than copper. Payments in excess of three hundred dollars for metals8
other than copper shall be made in the form of a check made payable to the name and9
address of the seller or a loadable payment card and may be tendered to the seller at10
the time of the transaction. The operator scrap metal recycler, at his discretion, may11
make payment by either cash or other method for transactions of three hundred12
dollars or less for all metals other than copper.13
* * *14
C. Pursuant to the provisions of this Section, if an operator a scrap metal15
recycler makes a payment to the seller in the form of a check or loadable payment16
card, the operator scrap metal recycler shall require verification of the seller's17
identification by a driver's license or similar means and shall require verification of18
the seller's address by a current utility bill. The operator scrap metal recycler shall19
retain a copy of such utility bill.20
D.(1) No operator scrap metal recycler shall allow a seller to engage in21
multiple transactions within a twenty-four hour period totaling more than three22
hundred dollars for the purpose of circumventing this Section.23
(2) No operator scrap metal recycler shall cash, offer to cash, or provide the24
means for exchanging for cash a check issued to a seller pursuant to this Section on25
the premises of the operator's scrap metal recycler's place of business, including but26
not limited to the use of an automatic teller machine.27
* * *28
§1974. Violations; penalty29 SB NO. 475
SLS 14RS-841 ORIGINAL
Page 8 of 10
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
A. Any licensed operator scrap metal recycler who violates, neglects, or1
refuses to comply with any provision of this Chapter, shall be fined not less than one2
thousand dollars, nor more than ten thousand dollars or be imprisoned for not less3
than thirty days nor more than sixty days, or both.4
B. For the second offense, his occupational license shall be suspended for a5
thirty-day period. For a third offense, his occupational license shall be revoked and6
he shall not thereafter be permitted to engage in the business of scrap metal recycling7
in the state of Louisiana.8
C. Any operator scrap metal recycler convicted of selling stolen goods shall9
have his occupational license revoked.10
D. The occupational license tax collector is hereby vested with the authority,11
upon motion in a court of competent jurisdiction, to rule the noncomplying operator12
scrap metal recycler to show cause in not less than two nor more than ten days,13
exclusive of holidays, as to why the noncomplying operator's scrap metal recycler's14
retail occupational license should not be suspended or revoked as prescribed under15
this Chapter. This rule may be tried out of term and in chambers and shall be tried16
with preference and priority. If the rule is made absolute, the order rendered therein17
shall be considered a judgment in favor of the municipality or parish.18
E. In addition to the penalties provided in this Section, it shall be an19
unfair trade practice for a licensed scrap metal recycler to fail to comply with20
the provisions of this Section and such failure shall subject a licensed scrap21
metal recycler to the penalties and actions found in the Unfair Trade Practices22
and Consumer Protection Law, R.S. 51:1401 et seq.23
§1975. Failure to comply; penalty24
A. Anyone acting as an unlicensed operator scrap metal recycler without25
complying with the provisions of this Chapter shall be fined not less than one26
thousand dollars or be imprisoned not less than thirty days nor more than sixty days,27
or both.28
* * *29 SB NO. 475
SLS 14RS-841 ORIGINAL
Page 9 of 10
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Section 2. R.S. 32:718 and R.S. 37:1970(D) are hereby repealed.1
Section 3. This Act shall become effective upon signature by the governor or, if not2
signed by the governor, upon expiration of the time for bills to become law without signature3
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If4
vetoed by the governor and subsequently approved by the legislature, this Act shall become5
effective on the day following such approval.6
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Michelle Ducharme.
DIGEST
Kostelka (SB 475)
Present law provides for the sale of auto hulk as scrap to a scrap metal processor or a
licensed automotive dismantler and parts recycler.
Proposed law repeals present law.
Present law regulates the purchase of scrap metal.
Present law defines the term "operator" as any person employed in responsible charge of
operating all or any portion of a scrap metal recycling facility.
Proposed law removes from present law the definition for the term "operator" and defines
the term "scrap metal recycler" as any person in this state engaged in the business of buying,
selling, recycling, or otherwise acquiring or disposing of scrap metal.
Present law provides for certain duties of an operator.
Proposed law transfers the duties of an operator to a scrap metal recycler.
Present law prohibits a person from doing business as a scrap metal recycler in this state
without having first obtained the occupational license required by law.
Present law requires a signed statement to be obtained from the seller that states that the
scrap metal has been paid for or is owned by the seller.
Proposed law changes present law to require an affidavit, rather than a signed statement, be
obtained from the seller of the scrap metal.
Present 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 removes from present law the immunity provision.
Present law provides that any licensed operator who violates, neglects, or refuses to comply
with certain provisions of law shall be penalized as follows:
(1) A fine of not less than $1,000, nor more than $10,000 or imprisonment for not less
than 30 days nor more than 60 days, or both.
(2)For the second offense, his occupational license shall be suspended for a 30 day SB NO. 475
SLS 14RS-841 ORIGINAL
Page 10 of 10
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
period.
(3)For a third offense, his occupational 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 retains present law and provides that a licenced scrap metal recycler who
violates certain provisions of law shall be subject to penalties and actions of the Unfair Trade
Practices and Consumer Protection Law.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Amends R.S. 37:1962, 1966, 1967(A)(intro para) and (B), 1968, 1969, 1970(A), (B),
(C)(1)(intro para) and (C)(2), 1971, 1972, 1973(A), (C), and (D), 1974, and 1975(A); repeals
R.S. 32:718 and R.S. 37:1970(D))