HP1329, LD 1846, item 1, An Act To Require the Licensure of Scrap Metal Recyclers and Mobile Scrap Metal Dealers

An Act To Require the Licensure of Scrap Metal Recyclers and Mobile Scrap Metal Dealers

Be it enacted by the People of the State of Maine as follows:

Sec. 1. 29-A MRSA §1101, sub-§1, as repealed and replaced by PL 1997, c. 776, §33, is repealed.

Sec. 2. 29-A MRSA §1101, sub-§1-A is enacted to read:

1-A. Definitions. As used in this subchapter, unless the context otherwise indicates, the following terms have the following meanings.

A. "Mobile scrap metal dealer" means a person engaged in the business of purchasing or acquiring scrap metal, as defined in Title 30-A, section 3771, subsection 4, for the purpose of resale or transfer.

B. "Recycler" means a person engaged in the business of purchasing or acquiring salvage vehicles for the purpose of:

(1) Reselling the vehicle or its component parts;

(2) Rebuilding or repairing the vehicle for the purpose of resale;

(3) Selling the vehicle's basic materials; or

(4) Displaying or storing the vehicle or its parts.

C. "Scrap metal recycler" means a person engaged in the business of purchasing or acquiring nonvehicle-related scrap metal, as defined in Title 30-A, section 3771, subsection 4, for the purpose of processing, storing, reselling or transferring that scrap metal.

Sec. 3. 29-A MRSA §1101, sub-§1-B is enacted to read:

1-B. Prohibition. A person may not engage in business as a recycler, a mobile scrap metal dealer or a scrap metal recycler without a recycler license, mobile scrap metal dealer license or scrap metal recycler license, respectively, issued under this subchapter.

Sec. 4. 29-A MRSA §1103, sub-§1, ¶¶B and C, as enacted by PL 1993, c. 683, Pt. A, §2 and affected by Pt. B, §5, are amended to read:

B. At which the business of a recycler or scrap metal recycler may be carried on in accordance with all applicable laws, codes, zoning and land use regulations;

C. At which the public may contact the recycler or scrap metal recycler at all reasonable times; and

Sec. 5. 29-A MRSA §1103, as enacted by PL 1993, c. 683, Pt. A, §2 and affected by Pt. B, §5, is amended by adding at the end a new paragraph to read:

The requirements of this section do not apply to a mobile scrap metal dealer.

Sec. 6. 29-A MRSA §1103-A is enacted to read:

§ 1103-A. Mobile scrap metal dealers

Notwithstanding section 1103, a mobile scrap metal dealer licensed under section 1104 must:

1. Name. Display the name of the licensee on any vehicle used for conducting business as a mobile scrap metal dealer;

2. Business records. Provide business records on demand to a law enforcement officer during normal business hours; and

3. Logbook. Maintain a logbook and make it available on demand to a law enforcement officer when transporting scrap metal.

Sec. 7. 29-A MRSA §1104, first ¶, as enacted by PL 1993, c. 683, Pt. A, §2 and affected by Pt. B, §5, is amended to read:

An application for a recycler , mobile scrap metal dealer or scrap metal recycler license must contain the following information in such form as the Secretary of State may prescribe:

Sec. 8. 29-A MRSA §1106, first ¶, as enacted by PL 1993, c. 683, Pt. A, §2 and affected by Pt. B, §5, is amended to read:

The Secretary of State shall act on an application for a recycler license issued under this subchapter or its renewal within 90 days of receipt.

Sec. 9. 29-A MRSA §1106-A, as enacted by PL 2003, c. 312, §1, is amended to read:

§ 1106-A. Municipal notification

The Secretary of State shall provide written notice of all license decisions under section 1106 to the code enforcement officer or municipal designee of the municipality in which the applicant for a recycler license or a scrap metal recycler license proposed its facilities to be located. If any proposed location is not within an organized municipality, the Secretary of State shall provide written notice to the county commissioners for that location.

Sec. 10. 29-A MRSA §1107, sub-§1, as enacted by PL 1993, c. 683, Pt. A, §2 and affected by Pt. B, §5, is amended to read:

1. Content. A recycler or scrap metal recycler license must specify:

A. The location of each established place of business and other locations occupied in conducting business;

B. The effective and expiration dates of the license; and

C. Any other information the Secretary of State considers necessary to implement this section.

Sec. 11. 29-A MRSA §1108, as amended by PL 1995, c. 65, Pt. A, §98 and affected by Pt. A, §153 and Pt. C, §15 and amended by c. 482, Pt. A, §20 and PL 1997, c. 526, §14, is further amended to read:

§ 1108. Denial, suspension or revocation of a license

1. Grounds. The Secretary of State may deny, suspend or revoke a recycler , mobile scrap metal dealer or scrap metal recycler license on the following grounds:

A. A material misstatement in an application for a license;

B. Failure to comply with a provision of this subchapter, any lawful rule adopted by the Secretary of State or any provision of Title 17 or Title 17-A or this Title as they relate to being a proper person to be in the business of the sales of vehicles or parts;

C. Failure to maintain an established place of business . This paragraph does not apply to mobile scrap metal recyclers;

D. Failure to notify the Secretary of State in writing 30 days prior to moving or ceasing operation;

E. The defrauding of a buyer, to the buyer's or another's damage, in the conduct of the licensee's business;

F. Conviction of a fraudulent act in connection with the business of selling motor vehicles or parts or being held liable by a civil judgment involving fraud, misrepresentation or conversion;

G. Violation of Title 5, sections 206 to 212; Title 17, section 3203; or Title 30-A, sections 3751 to 3760 ; or Title 30-A, sections 3772 to 3775;

H. Submission of a check, draft or money order to the Secretary of State that is dishonored or refused upon presentation;

I. Certification by the State Tax Assessor that a tax, other than property tax, considered final under Title 36, remained unpaid in an amount exceeding $1,000 for a period greater than 60 days after notice of finality and that the licensee or applicant refused to cooperate with the Bureau of Revenue Services in establishing and remaining in compliance with a reasonable plan for meeting that liability; or

J. Failure to appear at a hearing required by the Secretary of State or failure to appear in court pursuant to a lawful summons.

1-A. Appeal from action of the Secretary of State. Any person aggrieved by the act of the Secretary of State to refuse to grant or renew a license under this subchapter or to suspend or revoke a license or by any other act of the Secretary of State that the person alleges to be improper, unreasonable or unlawful under this subchapter may, within 30 days' notice of the decision, appeal to the Superior Court for a judicial review, as provided in Title 5, chapter 375, subchapter VII 7.

2. Proximity to veterans' cemetery. A license may be denied if a place of business is within one mile of a federally owned or state veterans' cemetery, unless the Secretary of State finds that:

A. The conduct of the business will not unduly interfere or degrade the purposes of the cemetery;

B. The business and location will be adequately screened for sight and noise; and

C. There is adequate distance, not less than 1,500 feet, between the cemetery and place of business.

3. Refusal to surrender license. Any recycler , scrap metal recycler or mobile scrap metal dealer who fails or refuses to surrender the license upon demand of the Secretary of State following the suspension or revocation of that license , commits a Class E crime.

4. Penalties. Any person who continues to engage in business as a salvage vehicle dealer, recycler or as a , scrap processor metal recycler or mobile scrap metal dealer after suspension or revocation of the license issued by the Secretary of State , is guilty of a Class E crime, punishable by a fine of not less than $200 and that fine may not be suspended.

Sec. 12. 29-A MRSA §1112, as enacted by PL 1993, c. 683, Pt. A, §2 and affected by Pt. B, §5, is amended to read:

§ 1112. Identification number

A recycler person licensed under this subchapter may not possess or exercise control over a vehicle or vehicle part that has had the vehicle identification number removed. It is not a defense that the recycler licensee did not know that the vehicle identification number had been removed. Violation of this section is a Class E crime.

Sec. 13. 30-A MRSA §3771, sub-§1-A is enacted to read:

1-A. Mobile scrap metal dealer. "Mobile scrap metal dealer" means a person licensed under Title 29-A, chapter 9, subchapter 6 that is engaged in the business of purchasing or acquiring scrap metal for the purpose of resale or transfer to a scrap metal recycler. "Mobile scrap metal dealer" does not include a person who stores scrap metal in a scrap metal yard or processes or keeps scrap metal for shipment.

Sec. 14. 30-A MRSA §3771, sub-§5, as amended by PL 2011, c. 545, §1, is repealed.

Sec. 15. 30-A MRSA §3771, sub-§§5-B and 5-C are enacted to read:

5-B. Scrap metal recycler. "Scrap metal recycler" means a person that is licensed under Title 29-A, chapter 9, subchapter 6 that operates out of a scrap metal yard and is:

A. Engaged in the business of buying, processing and selling nonvehicle-related scrap metal; and

B. Operating or maintaining a scrap metal yard or a place where scrap metal is stored or kept for sale or transfer.

5-C. Scrap metal yard. "Scrap metal yard" means a yard, space, enclosure or building where scrap metal is stored, kept for shipment, sale or transfer or processed and where the business of storing and processing scrap metal may be lawfully conducted.

"Scrap metal yard" does not include an automobile graveyard as defined in section 3752, subsection 1 or automobile recycling business as defined in section 3752, subsection 1-A.

Sec. 16. 30-A MRSA §3771, sub-§6, as enacted by PL 2007, c. 549, §1, is amended to read:

6. Seller. "Seller" means any person that receives in a transaction monetary consideration from a scrap metal processor recycler or a mobile scrap metal dealer in exchange for nonferrous metal, iron or steel, including stainless steel. "Seller" does not include a person that, as part of a commercial enterprise or business, sells pursuant to a written contract or bill of sale scrap metal generated in a manufacturing or production process to a scrap metal processor recycler or mobile scrap metal dealer.

Sec. 17. 30-A MRSA §3772, as amended by PL 2013, c. 141, §1, is further amended to read:

§ 3772. Records of purchases maintained by scrap metal recyclers and mobile scrap metal dealers

1. Maintenance of records requirement. Except as provided in subsection 2, a scrap metal processor recycler or mobile scrap metal dealer doing business in the State shall maintain an accurate and legible record of each scrap metal purchase transaction.

1-A. Form and method of payment. A scrap metal processor recycler or mobile scrap metal dealer shall provide payment to a seller only in the form of a credit card, as defined in Title 9-A, section 1-301, subsection 16, a debit card, as defined in Title 10, section 1271, subsection 3, or a check. If payment is made by check, the scrap metal processor recycler or mobile scrap metal dealer shall maintain a record of the payee, check number and name of the financial institution upon which the check is drawn.

2. Exception. A scrap metal processor recycler or mobile scrap metal dealer doing business in the State is not required to maintain individual records for a series of scrap metal purchase transactions made pursuant to a written contract or bill of sale.

3. Information required. The record of each scrap metal purchase transaction required under subsection 1 must contain the following information:

A. The name, address and gender of the seller. The scrap metal processor recycler or mobile scrap metal dealer shall require the seller to provide proof of identification with a driver's license, military identification card, passport or other form of government-issued photo identification. The scrap metal processor recycler or mobile scrap metal dealer shall photocopy the form of photo identification presented and record the distinct identifying number of that photo identification. If the proof of identification contains a photograph that is faded, out of date or otherwise indiscernible, the scrap metal processor recycler or mobile scrap metal dealer shall photograph the seller. A scrap metal processor recycler or mobile scrap metal dealer shall keep these proof of identification records in a secure, nonpublic location and, unless otherwise permitted by law, may not publish, reproduce, distribute or disclose these records for any other purpose than that described in section 3773, subsection 2. Information required under this paragraph may be maintained for repeat sellers in a relational database that allows the scrap metal processor recycler or mobile scrap metal dealer to record the information one time and relate future purchase records to that information;

B. The date of the scrap metal purchase transaction;

C. A general description of the predominant types of scrap metal purchased, which must be made in accordance with the custom of the trade;

D. A general description of the configuration of the scrap metal and whether the material is insulated;

E. The weight, quantity or volume, recorded in accordance with the custom of the trade, of the scrap metal purchased;

F. The consideration paid;

G. A signed statement that the seller is the owner or is otherwise authorized to sell the scrap metal on a form provided by the buyer that conspicuously bears the warning that making a false statement is a Class D crime under Title 17-A, section 453; and

H. The make, model and number and state of issue of the license plate of the vehicle being used to deliver the scrap metal.

Sec. 18. 30-A MRSA §3775, first ¶, as enacted by PL 2007, c. 549, §1, is amended to read:

A seller may not sell and a scrap metal processor recycler or a mobile scrap metal dealer may not purchase the following scrap metal unless the seller provides to the scrap metal processor recycler or mobile scrap metal dealer, in addition to the requirements of section 3772, subsection 3, a signed statement at the time of sale that the property subject to this transaction is not stolen property to the best of the seller's knowledge, and that the seller is the owner or is otherwise authorized to sell the scrap metal:

Sec. 19. 30-A MRSA §3775, last ¶, as enacted by PL 2007, c. 549, §1, is amended to read:

This section does not apply to transactions in which a scrap metal processor recycler purchases, transfers or otherwise conveys scrap metal to another scrap metal processor recycler.

Sec. 20. 30-A MRSA §3775-A, as enacted by PL 2011, c. 545, §8, is amended to read:

§ 3775-A. Holding period; inspection

1. Seven-day hold. If a law enforcement officer has a reasonable suspicion that scrap metal being held by a scrap metal processor recycler or mobile scrap metal dealer is stolen or related to criminal activity, the officer may issue a written order to the scrap metal processor recycler or mobile scrap metal dealer, specifying the scrap metal that must be retained and the length of time, which may not exceed 7 days, that the scrap metal processor recycler or mobile scrap metal dealer must retain the identified scrap metal.

2. Additional 7-day hold. Prior to the expiration of the time period of the hold pursuant to subsection 1, a law enforcement officer may impose an additional hold period, which may not exceed 7 days. The law enforcement officer imposing the additional hold shall provide the scrap metal processor recycler or mobile scrap metal dealer with a written description of the scrap metal to be retained and the length of time the scrap metal processor recycler or mobile scrap metal dealer must retain the identified scrap metal.

Sec. 21. 30-A MRSA §3776, as enacted by PL 2007, c. 549, §1, is amended to read:

§ 3776. Sales by minors

1. Prohibition. A scrap metal processor recycler or mobile scrap metal dealer may not purchase scrap metal from a minor unless:

A. The minor is accompanied by the minor's parent or guardian; and

B. The parent or guardian provides a written statement to the scrap metal processor recycler or mobile scrap metal dealer that the transaction is taking place with the parent's or guardian's full knowledge and consent.

2. Retention of statement. A scrap metal processor recycler or mobile scrap metal dealer shall preserve and keep on file and make available for inspection to any law enforcement office of the State or of any municipality or county the written statement required by subsection 1, paragraph B for not less than 3 years.

Sec. 22. 30-A MRSA §3778, sub-§2, ¶C, as enacted by PL 2011, c. 545, §10, is amended to read:

C. A person who violates this subchapter after having previously been adjudicated of violating this subchapter more than once commits a civil violation for which a fine of $4,500 must be adjudged and is prohibited from acting as a scrap metal processor recycler or mobile scrap metal dealer for 6 months.

Sec. 23. 30-A MRSA §3779 is enacted to read:

§ 3779. Rules

The Secretary of State shall adopt rules establishing standards for scrap metal recyclers and mobile scrap metal dealers under this subchapter. Rules adopted pursuant to this section are routine technical rules as defined in Title 5, chapter 375, subchapter 2-A.

Sec. 24. Maine Revised Statutes headnote amended; revision clause. In the Maine Revised Statutes, Title 30-A, chapter 183, subchapter 1-A, in the subchapter headnote, the words "scrap metal processors" are amended to read "scrap metal recyclers and mobile scrap metal dealers" and the Revisor of Statutes shall implement this revision when updating, publishing or republishing the statutes.

summary

This bill requires scrap metal recyclers and mobile scrap metal dealers, as defined in the bill, to be licensed. The bill repeals the provision of law defining "scrap metal processor," but requires scrap metal recyclers and mobile scrap metal dealers to meet the same record-keeping requirements and restrictions as scrap metal processors.

This bill requires the Secretary of State to adopt routine technical rules establishing standards for scrap metal recyclers and mobile scrap metal dealers.

This bill also corrects cross-references and makes other technical changes.

HP1329 LD 1846	Session - 126th Maine Legislature		LR 2829 Item 1
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