A1199

An Act concerning the purchase of scrap metal, and amending and supplementing P.L.2009, c.8.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. Section 2 of P.L.2009, c.8 (C.45:28-2) is amended to read as follows:

2. The operator of a scrap metal business shall:

a. Verify the identity of any person delivering or selling scrap metal to the scrap metal business by requesting and examining a photograph-bearing, valid State or federal driver's license or other government-issued form of identification bearing a photograph;

b. Make a clear copy of, and record, in a manner as may be prescribed by the Attorney General, the number of the driver's license or other government-issued form of identification presented by the person delivering or selling the scrap metal, before receiving or purchasing any scrap metal from that person;

c. Maintain, for at least [five years] 18 months, a record of all receipts or purchases of scrap metal [in excess of 100 pounds or $50, whichever is less], including, but not limited to:

(1) the date of receipt or purchase of the scrap metal;

(2) the name and address of the person [delivering or selling] or business that owns the scrap metal being sold;

(3) the type and number of the identification presented by the person delivering or selling the scrap metal, along with a copy of the driver's license or other government-issued form of identification;

(4) a description of the scrap metal received or purchased, including, but not limited to its type, amount, and form;

(5) the signature of the person delivering or selling the scrap metal; [and]

(6) the license plate of the motor vehicle delivering the scrap metal, pursuant to subsection f. of this section;

(7) a digital photographic record of the scrap metal received or purchased; and

(8) any other information as may be required by the Attorney General; [and]

d. Make any records maintained pursuant to subsection c. of this section available, upon request, to any law enforcement agency or official investigating the possible theft or resale of scrap metals;

e. (1) Except as provided in paragraph (2) of this subsection, make payment to the person or business that owns the scrap metal being sold only by non-transferable check made payable to that person or business, to be mailed to the address recorded pursuant to paragraph (2) of subsection c. of this section.

(2) A scrap metal business may make a cash payment to the person delivering the scrap metal only if a photograph of the person receiving the cash payment is taken and maintained pursuant to subsection c. of this section; and

f. When scrap metal is being delivered to the scrap metal business for purchase or sale, accept delivery of the scrap metal by motor vehicle only, and record the license plate number of any motor vehicle which is used to deliver that scrap metal.

(cf: P.L.2009, c.8, s.2)

2. (New section) a. No scrap metal business shall, except as provided in subsection b. of this section, purchase:

(1) Any metal marked with identification of a telephone, cable, electric, water, other public utility, or other government entity;

(2) Any utility access or water meter cover;

(3) Any street light pole or fixture;

(4) Any road or bridge guard rail;

(5) Any highway or street sign, traffic directional or control sign, or light signal;

(6) Any metal beer keg that is clearly marked as being the property of the beer manufacturer;

(7) Any historical marker, grave marker, or burial vase;

(8) Any central air conditioner evaporator coils or condensers or catalytic converters that are not attached to a vehicle; or

(9) Any metal bleachers or benches.

b. The provisions of this section shall not apply to purchases of those scrap metals identified and prohibited from purchase by subsection a. of this section, if the seller generates and manages those metals in the ordinary course of its business. These entities include manufacturing, industrial, government, contractor, individual, or other commercial vendors or scrap metal businesses that generate or purchase or process these scrap metals in the ordinary course of business.

3. (New section) a. (1) The Superintendent of State Police shall establish or arrange for a system of electronic reporting of information pertaining to the receipt or purchase of scrap metal by the operator of a scrap metal business. The superintendent may contract with one or more vendors to establish and maintain the electronic reporting system pursuant to guidelines established by the superintendent.

(2) The superintendent shall provide or arrange for training in use of the electronic reporting system for each operator of a scrap metal business.

b. For each receipt or purchase of scrap metal, the operator of a scrap metal business shall electronically submit the information maintained pursuant to subsection c. of section 2 of P.L.2009, c.8 (C.45:28-2) to the electronic reporting system established pursuant to subsection a. of this section by no later than noon of the next business day following the purchase or receipt of scrap metal.

c. (1) Except as otherwise provided in paragraph (2) of this subsection, all records maintained by the Division of State Police pursuant to this section shall be confidential and shall not be made available to any individual or institution except as otherwise provided by law.

(2) The information provided pursuant to this section may be shared with any federal or State law enforcement agency as deemed appropriate by the superintendent, or with any State regulatory agency with jurisdiction over persons engaged in a business in which reportable transactions are conducted.

(3) Any vendor with which the superintendent arranges for the establishment and maintenance of the electronic reporting system shall keep all records confidential. Any vendor that knowingly fails to keep any record confidential shall be subject to a civil penalty of $500 for the first offense and up to $1,000 for the second and each subsequent offense, to be collected in a civil action by a summary proceeding under the "Penalty Enforcement Law of 1999," P.L.1999, c.274 (C.2A:58-10 et seq.).

d. The superintendent may charge operators of scrap metal businesses a reasonable fee for the use of the electronic reporting system, and training in use of the electronic reporting system, which amount shall not exceed the lesser of $300 or the total cost incurred for the electronic reporting system and training apportioned among all operators of scrap metal businesses.

e. (1) In addition to any other penalty provided by law, an operator of a scrap metal business who fails to electronically submit information pertaining to a receipt or purchase of scrap metal as required pursuant to this section shall be liable to a penalty of $10,000 for each violation, recoverable by the superintendent pursuant to the provisions of the “Penalty Enforcement Law of 1999,” P.L.1999, c.274 (C.2A:58-10 et seq.). An action for the recovery of a civil penalty for violation of this act shall be within the jurisdiction of and may be brought before the Superior Court or municipal court in the municipality where the offense is committed, or where the defendant resides or may be apprehended.

(2) The superintendent may waive the penalty provided for in paragraph (1) of this subsection, for a period not to exceed 10 business days, if an operator of a scrap metal business demonstrates good cause for failure to submit records, such as the failure of its electronic reporting system.

f. The superintendent may promulgate rules and regulations necessary to effectuate the provisions of this section.

4. This act shall take effect on the 180th day next following enactment, but the Superintendent of State Police may take such anticipatory action as may be necessary to implement the provisions of this act. The provisions of section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill) shall take effect 9 months following the effective date of this act.

STATEMENT

This bill requires scrap metal businesses to maintain, for at least 18 months, a record of all receipts or purchases of scrap metal, instead of for five years and only for those purchases in excess of 100 pounds or $50, as currently provided by law. The bill requires that scrap metal businesses maintain, for at least 18 months, a digital photographic record of scrap metal received or purchased.

The bill requires, with certain specified exemptions, that scrap metal businesses make payment to the person or business that owns the scrap metal being sold only by non-transferrable check made payable to that person or business, to be mailed to the address of the person or business that owns the scrap metal being sold. The bill specifies that scrap metal businesses may make cash payments to the person delivering the scrap metal only if a photograph of the person receiving the cash payment is taken and maintained.

The bill also prohibits the purchase of certain scrap metal items, such as metals marked with government or utility identification, by scrap metal businesses, unless the seller generates and manages those metals in the ordinary course of its business.

The bill requires operators of scrap metal businesses to electronically submit records maintained pursuant to law or regulation on the purchase or receipt of scrap metal using an electronic reporting system.

The bill requires the Superintendent of State Police to establish or arrange for a system for the electronic reporting of information pertaining to the receipt or purchase of scrap metal by the operator of a scrap metal business. The bill provides that the superintendent may contract with one or more vendors to establish and maintain the electronic reporting system pursuant to guidelines established by the superintendent. The bill provides for the provision of training in use of the electronic reporting system for each operator of a scrap metal business.

Under the bill, all records submitted by operators of scrap metal businesses which are maintained by the Division of State Police are confidential except as otherwise provided by law. The records may be shared with federal or State law enforcement agencies as deemed appropriate by the superintendent, or with any State regulatory agency with jurisdiction over persons engaged in a business in which reportable transactions are conducted.

The bill provides that the superintendent may charge operators of scrap metal businesses a reasonable fee for the use of the electronic reporting system and training in use of the system, which amount shall not exceed the lesser of $300 or the total cost incurred for the electronic reporting system and training apportioned among all operators of scrap metal businesses. Operators of scrap metal businesses who fail to electronically submit information pertaining to a receipt or purchase of scrap metal may be liable to a penalty of $10,000 for each violation.