S T A T E O F N E W Y O R K
________________________________________________________________________
6971--A
I N S E N A T E
April 18, 2012
___________
Introduced by Sen. GRISANTI -- read twice and ordered printed, and when
printed to be committed to the Committee on Consumer Protection --
committee discharged, bill amended, ordered reprinted as amended and
recommitted to said committee
AN ACT to amend the general business law, in relation to prohibiting the
purchase of certain items as scrap
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 69-e of the general business law, as added by chap-
ter 431 of the laws of 1976, is amended to read as follows:
S 69-e. Definitions. 1. "Scrap metal processing facility" shall mean
an establishment engaged primarily in the purchase, processing and ship-
ment of ferrous and/or non-ferrous scrap, the end product of which is
the production of raw material [for remelting purposes] for steel mills,
[foundaries] FOUNDRIES, smelters, refiners, and similar users.
2. "Scrap processor" shall mean any person, association, partnership
or corporation operating and maintaining a "scrap metal processing
facility".
3. "PLASTIC BULK MERCHANDISE CONTAINER" SHALL MEAN A PLASTIC CRATE,
PALLET, OR SHELL USED BY A PRODUCT, PRODUCER, DISTRIBUTOR, OR RETAILER
FOR THE BULK TRANSPORT OR STORAGE OF RETAILER CONTAINERS OF BOTTLED
BEVERAGES.
4. "GOVERNMENT ISSUED IDENTIFICATION" SHALL MEAN ANY CURRENT AND VALID
OFFICIAL FORM OF IDENTIFICATION ISSUED BY THE GOVERNMENT OF THE UNITED
STATES OF AMERICA, A STATE, TERRITORY, PROTECTORATE, OR DEPENDENCY OF
THE UNITED STATES OF AMERICA, A COUNTY, MUNICIPALITY OR SUBDIVISION
THEREOF, ANY PUBLIC AGENCY OR DEPARTMENT THEREOF, OR ANY PUBLIC EMPLOY-
ER, WHICH REQUIRES AND BEARS THE SIGNATURE AND PHOTOGRAPH OF THE PERSON
TO WHOM IT IS ISSUED.
5. "DEPARTMENT" SHALL MEAN THE NEW YORK STATE DEPARTMENT OF STATE.
S 2. Section 69-f of the general business law, as added by chapter
431 of the laws of 1976, is amended to read as follows:
S 69-f. License AND REGISTRATION. 1. It shall be unlawful for any
person, association, partnership or corporation to engage in business as
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD15397-02-2
S. 6971--A 2
a scrap processor unless such scrap processor shall have complied with
the provisions of this article and obtained a license to do so from the
mayor of the city, if the place of business of such scrap processor is
in a city, or the mayor of the village if the place of business is in an
incorporated village, otherwise from the supervisor of the town in which
such place of business is located, or from the licensing authority of
any such municipality; for which license shall be paid such mayor or
supervisor or licensing authority for the use of such city, village, or
town the sum of seventy-five dollars if such place of business is the
principal place of business of such scrap processor in this state,
otherwise the sum of fifty dollars, which license shall expire on June
thirtieth of each year.
2. ON OR AFTER APRIL FIRST, TWO THOUSAND THIRTEEN, NO PERSON, FIRM OR
CORPORATION SHALL HOLD HIMSELF, HERSELF OR ITSELF OUT TO BE A SCRAP
PROCESSOR IN NEW YORK STATE WITHOUT FIRST REGISTERING WITH THE DEPART-
MENT AS PROVIDED IN THIS SECTION.
3. ANY PERSON, FIRM OR CORPORATION SEEKING A CERTIFICATE OF REGISTRA-
TION AS A SCRAP PROCESSOR SHALL FILE WITH THE DEPARTMENT AN APPLICATION
FOR REGISTRATION IN SUCH FORM AND DETAIL AS THE DEPARTMENT SHALL
PRESCRIBE, INCLUDING THE FOLLOWING:
(A) THE NAME AND RESIDENCE ADDRESS OF THE APPLICANT;
(B) THE BUSINESS NAME, IF OTHER THAN THE APPLICANT;
(C) THE PLACE, INCLUDING THE CITY, TOWN OR VILLAGE, WITH THE STREET
AND NUMBER, WHERE THE BUSINESS IS TO BE LOCATED;
(D) THE BUSINESS TELEPHONE NUMBER OF THE APPLICANT;
(E) A STATEMENT INDICATING WHETHER THE APPLICANT HAS:
(I) BEEN CONVICTED OF ANY CRIME RELATING TO WORK AS A SCRAP PROCESSOR;
AND
(II) AT ANY TIME IN THE PAST BEEN ISSUED A REGISTRATION PURSUANT TO
THIS SECTION, AND IF SO, WHETHER SUCH REGISTRATION WAS EVER REVOKED OR
SUSPENDED;
(F) A CERTIFICATION ATTESTING THAT THE SCRAP PROCESSOR IS IN COMPLI-
ANCE WITH THE APPLICABLE REGULATIONS OF THE DEPARTMENT OF ENVIRONMENTAL
CONSERVATION;
(G) A CERTIFICATION ATTESTING THAT THE SCRAP PROCESSOR IS IN COMPLI-
ANCE WITH THE RECORD KEEPING REQUIREMENTS SET FORTH IN THIS ARTICLE;
(H) A SWORN STATEMENT BY THE APPLICANT THAT THE INFORMATION SET FORTH
IN THE APPLICATION IS CURRENT AND ACCURATE; AND
(I) A COMPLETE SET OF TWO FINGERPRINT CARDS FOR EACH PRINCIPAL AND
OFFICER OF THE APPLICANT ON A STANDARD FINGERPRINT CARD APPROVED BY THE
DIVISION OF CRIMINAL JUSTICE SERVICES. SUCH CARDS SHALL BE RETAINED BY
THE DEPARTMENT AND USED SOLELY FOR THE PURPOSE OF CONDUCTING AN INVESTI-
GATION PURSUANT TO SUBDIVISION TWELVE OF THIS SECTION. IF ADDITIONAL
COPIES OF FINGERPRINTS ARE REQUIRED THE APPLICANT SHALL FURNISH THEM
UPON REQUEST.
4. IN DETERMINING WHETHER TO ISSUE OR RENEW A REGISTRATION, THE SECRE-
TARY OF STATE MAY CONSIDER THE CHARACTER, COMPETENCY AND INTEGRITY OF
THE APPLICANT.
5. THE SECRETARY OF STATE MAY REFUSE TO ISSUE A REGISTRATION TO ANY
PERSON, FIRM OR CORPORATION WHOM HE OR SHE FINDS HAS BEEN CONVICTED OF
ANY CRIME OR FAILED TO PAY ANY FINAL CIVIL JUDGMENT RELATING TO WORK AS
A SCRAP PROCESSOR, IF SUCH REFUSAL WILL, IN THE JUDGMENT OF THE SECRE-
TARY OF STATE, BEST PROMOTE THE INTERESTS OF THE PEOPLE OF THIS STATE.
6. (A) A REGISTRATION ISSUED OR RENEWED UNDER THE PROVISIONS OF THIS
SECTION SHALL ENTITLE A PERSON TO ACT AS A REGISTERED SCRAP PROCESSOR IN
THE STATE OF NEW YORK FOR A PERIOD OF TWO YEARS FROM THE EFFECTIVE DATE
S. 6971--A 3
OF THE REGISTRATION. ANY REGISTRATION GRANTED UNDER THIS SECTION MAY BE
RENEWED BY THE DEPARTMENT UPON APPLICATION FOR SUCH RENEWAL BY THE HOLD-
ER THEREOF, IN SUCH FORM AS THE DEPARTMENT MAY PRESCRIBE.
(B) UPON ORIGINAL APPLICATION FOR A LICENSE TO OPERATE AS A SCRAP
PROCESSOR, THE APPLICANT SHALL PAY AN APPLICATION FEE, IN SUCH AMOUNT AS
MAY BE DETERMINED BY THE SECRETARY, NOT TO EXCEED ONE THOUSAND DOLLARS.
UPON APPLICATION FOR A LICENSE RENEWAL, THE LICENSEE SHALL PAY A RENEWAL
PROCESSING FEE IN SUCH AMOUNT AS SHALL BE DETERMINED BY THE SECRETARY,
NOT TO EXCEED ONE THOUSAND DOLLARS.
(C) THE SECRETARY OF STATE SHALL HAVE THE AUTHORITY TO ASSIGN STAG-
GERED EXPIRATION DATES FOR REGISTRATIONS AT THE TIME OF RENEWAL. IF THE
ASSIGNED DATE RESULTS IN A TERM THAT EXCEEDS TWENTY-FOUR MONTHS, THE
APPLICANT SHALL PAY AN ADDITIONAL PRORATED ADJUSTMENT TOGETHER WITH THE
REGULAR RENEWAL FEE.
(D) THE SECRETARY OF STATE SHALL ISSUE EACH SCRAP PROCESSOR A UNIQUE
REGISTRATION NUMBER.
7. (A) NOTICE IN WRITING IN THE MANNER AND FORM PRESCRIBED BY THE
DEPARTMENT SHALL BE GIVEN TO THE DEPARTMENT AT ITS OFFICES IN ALBANY
WITHIN TEN DAYS OF CHANGES OF NAME OR ADDRESS BY A REGISTERED SCRAP
PROCESSOR.
(B) IN THE CASE OF LOSS, DESTRUCTION OR DAMAGE, THE DEPARTMENT MAY,
UPON SUBMISSION OF A REQUEST IN SUCH FORM AND MANNER AS THE DEPARTMENT
MAY PRESCRIBE, ISSUE A DUPLICATE REGISTRATION UPON PAYMENT OF A FEE OF
ONE HUNDRED DOLLARS.
8. THE FEES ESTABLISHED BY THIS SECTION SHALL NOT BE REFUNDABLE.
9. EACH SCRAP PROCESSOR SHALL EXHIBIT HIS OR HER REGISTRATION CERTIF-
ICATE PRESCRIBED BY THIS ARTICLE AT HIS OR HER PLACE OF BUSINESS.
10. NO PERSON, FIRM OR CORPORATION SHALL:
(A) PRESENT, OR ATTEMPT TO PRESENT, AS HIS, HER OR ITS OWN, THE REGIS-
TRATION OF ANOTHER;
(B) KNOWINGLY GIVE FALSE EVIDENCE OF A MATERIAL NATURE TO THE DEPART-
MENT FOR THE PURPOSE OF PROCURING A REGISTRATION; OR
(C) FALSELY REPRESENT THEMSELVES TO BE A REGISTERED SCRAP PROCESSOR.
11. REGISTRATIONS ISSUED TO SCRAP PROCESSORS SHALL NOT BE TRANSFERABLE
OR ASSIGNABLE.
12. (A) THE SECRETARY OF STATE SHALL PROMULGATE SUCH RULES AND REGU-
LATIONS AS ARE DEEMED NECESSARY TO EFFECTUATE THE PURPOSES OF THIS ARTI-
CLE, AND SHALL PROVIDE WRITTEN NOTIFICATION OF THE PROVISIONS OF THIS
ARTICLE TO ALL SCRAP PROCESSORS REGISTERED PURSUANT TO THIS ARTICLE.
(B) THE SECRETARY OF STATE SHALL HAVE THE POWER TO ENFORCE THE
PROVISIONS OF THIS ARTICLE AND UPON COMPLAINT OF ANY PERSON, OR UPON THE
SECRETARY'S INITIATIVE, TO INVESTIGATE ANY VIOLATION THEREOF OR TO
INVESTIGATE THE BUSINESS, BUSINESS PRACTICES AND BUSINESS METHODS OF ANY
PERSON, FIRM, LIMITED LIABILITY COMPANY, PARTNERSHIP OR CORPORATION
APPLYING FOR OR HOLDING A REGISTRATION AS A SCRAP PROCESSOR, IF IN THE
OPINION OF THE SECRETARY OF STATE SUCH INVESTIGATION IS WARRANTED. EACH
SUCH APPLICANT OR REGISTRANT SHALL BE OBLIGED, ON REQUEST OF THE SECRE-
TARY OF STATE, TO SUPPLY SUCH INFORMATION, BOOKS, PAPERS OR RECORDS AS
MAY BE REQUIRED CONCERNING HIS, HER OR ITS BUSINESS PRACTICES OR BUSI-
NESS METHODS. FAILURE TO COMPLY WITH A LAWFUL REQUEST OF THE SECRETARY
SHALL BE A GROUND FOR DENYING AN APPLICATION FOR A REGISTRATION, OR FOR
REVOKING, SUSPENDING, OR NOT RENEWING A REGISTRATION ISSUED UNDER THIS
ARTICLE.
(C) THE DEPARTMENT SHALL HAVE THE POWER TO REVOKE OR SUSPEND ANY
REGISTRATION, OR DENY AN APPLICATION FOR A REGISTRATION OR RENEWAL THER-
EOF UPON PROOF:
S. 6971--A 4
(I) THAT THE APPLICANT OR REGISTRANT HAS VIOLATED ANY OF THE
PROVISIONS OF THIS ARTICLE OR THE RULES AND REGULATIONS PROMULGATED
PURSUANT TO THIS ARTICLE; OR
(II) THAT THE APPLICANT OR REGISTRANT HAS MADE A MATERIAL MISSTATEMENT
IN THE APPLICATION FOR OR RENEWAL OF HIS, HER OR ITS REGISTRATION.
13. THE DEPARTMENT SHALL, BEFORE DENYING AN APPLICATION FOR A REGIS-
TRATION NOTIFY IN WRITING THE APPLICANT FOR, OR THE HOLDER OF SUCH
REGISTRATION OF ANY CHARGE MADE AND SHALL AFFORD SUCH APPLICANT OR
REGISTRANT AN OPPORTUNITY TO BE HEARD IN PERSON OR BY COUNSEL IN REFER-
ENCE THERETO. SUCH WRITTEN NOTICE MAY BE SERVED BY DELIVERY OF SAME
PERSONALLY TO THE APPLICANT OR REGISTRANT, OR BY MAILING SAME BY REGIS-
TERED MAIL TO THE LAST KNOWN BUSINESS ADDRESS OF SUCH APPLICANT OR
REGISTRANT.
14. THE HEARING ON SUCH CHARGES SHALL BE AT SUCH TIME AND PLACE AS THE
DEPARTMENT SHALL PRESCRIBE AND SHALL BE CONDUCTED BY SUCH OFFICER OR
PERSON IN THE DEPARTMENT AS THE SECRETARY OF STATE MAY DESIGNATE, WHO
SHALL HAVE THE POWER TO SUBPOENA AND BRING BEFORE THE OFFICER OR PERSON
SO DESIGNATED ANY PERSON IN THIS STATE, AND ADMINISTER AN OATH TO AND
TAKE TESTIMONY OF ANY PERSON OR CAUSE HIS OR HER DEPOSITION TO BE TAKEN.
A SUBPOENA ISSUED UNDER THIS SECTION SHALL BE GOVERNED BY THE CIVIL
PRACTICE LAW AND RULES.
15. IN THE EVENT THAT THE DEPARTMENT SHALL DENY THE APPLICATION FOR,
OR REVOKE OR SUSPEND ANY SUCH REGISTRATION, ITS DETERMINATION SHALL BE
IN WRITING AND OFFICIALLY SIGNED. THE ORIGINAL OF SUCH DETERMINATIONS,
WHEN SO SIGNED, SHALL BE FILED IN THE OFFICE OF THE DEPARTMENT AND
COPIES THEREOF SHALL BE MAILED TO THE APPLICANT OR REGISTRANT AND TO THE
COMPLAINANT WITHIN TWO DAYS AFTER SUCH FILING.
16. THE ACTION OF THE DEPARTMENT IN GRANTING OR REFUSING TO GRANT OR
TO RENEW A REGISTRATION UNDER THIS ARTICLE OR IN REVOKING OR SUSPENDING
OR REFUSING TO REVOKE OR SUSPEND SUCH A REGISTRATION SHALL BE SUBJECT TO
REVIEW BY A PROCEEDING INSTITUTED UNDER ARTICLE SEVENTY-EIGHT OF THE
CIVIL PRACTICE LAW AND RULES.
17. THE DEPARTMENT SHALL MAINTAIN AND PUBLISH A REGISTRY OF ALL REGIS-
TERED SCRAP PROCESSORS, WHICH SHALL LIST AND IDENTIFY ON A COUNTY BY
COUNTY BASIS, ALL REGISTERED SCRAP PROCESSORS DOING BUSINESS IN THIS
STATE. THE DEPARTMENT SHALL MAKE THE REGISTRY AVAILABLE ON ITS WEBSITE.
COPIES OF THE ROSTER SHALL BE MADE AVAILABLE UPON REQUEST AND PAYMENT OF
A FEE TO BE DETERMINED BY THE SECRETARY OF STATE AND APPROVED BY THE
DIRECTOR OF THE DIVISION OF THE BUDGET.
S 3. Subdivision 1 of section 69-g of the general business law, as
amended by chapter 302 of the laws of 2007, is amended and a new subdi-
vision 3 is added to read as follows:
1. Such scrap processor shall record [(i) each purchase of any pig or
pigs of metal, bronze or brass castings or parts thereof, sprues or
gates or parts thereof, utility wire or brass car journals, or of metal
beer kegs, and (ii)] each purchase of [iron, steel] FERROUS and/or
nonferrous scrap for a price of fifty dollars or more, and preserve such
record for a period of three years; which record shall show the date of
purchase, name of seller, [his] THE SELLER'S residence OR BUSINESS
address [by street, number, city, village or town, the driver's license
number or information from a government issued photographic identifica-
tion card, if any, of such person, or by such description as will
reasonably locate the seller,] AND the type and quantity of such
purchase[; and the]. THE scrap processor shall cause such record to be
signed by the seller or his OR HER agent. It shall be unlawful for any
seller to refuse to furnish such information or to furnish incorrect or
S. 6971--A 5
incomplete information. Such scrap processor shall also make and retain
a copy of the government issued photographic identification card used to
verify the identity of [the] ANY NATURAL person from whom the scrap
metal was purchased and shall retain this copy in a separate book,
register or electronic archive for [two] THREE years from the date of
purchase.
3. BY NO LATER THAN APRIL FIFTEENTH, TWO THOUSAND THIRTEEN, A SCRAP
PROCESSOR SHALL INSTALL AND MAINTAIN IN WORKING ORDER AN ELECTRONIC
VIDEO RECORDING SYSTEM AT ALL SCALES AND AT ALL POINTS OF SALE LOCATED
ON THE PREMISES OF THE SCRAP PROCESSING FACILITY. ELECTRONIC VIDEO
RECORDS SHALL BE MAINTAINED IN AN ELECTRONIC ARCHIVE FOR A PERIOD OF NO
LESS THAN SIXTY DAYS FROM THE DATE WHEN SUCH ELECTRONIC VIDEO RECORD WAS
MADE.
S 4. Section 69-h of the general business law is renumbered section
69-i and two new sections 69-h and 69-j are added to read as follows:
S 69-H. PROHIBITION ON SALE OF CERTAIN ITEMS. NOTWITHSTANDING ANY
PROVISION OF LAW, RULE OR REGULATION TO THE CONTRARY, IT SHALL BE UNLAW-
FUL TO SELL, OFFER FOR SALE, OR PURCHASE AS SCRAP, ANY METAL ITEMS BEAR-
ING MARKINGS OF ANY GOVERNMENTAL ENTITY, UTILITY COMPANY, CEMETERY OR
RAILROAD UNLESS SUCH ITEMS ARE OFFERED FOR SALE BY A DULY AUTHORIZED
EMPLOYEE OR AGENT OF ANY SUCH GOVERNMENTAL ENTITY, UTILITY COMPANY,
CEMETERY OR RAILROAD.
S 69-J. PREEMPTION OF LOCAL LAWS. THE PROVISIONS OF THIS ARTICLE SHALL
APPLY TO ALL MUNICIPALITIES, INCLUDING CITIES WITH A POPULATION OF ONE
MILLION OR MORE, AND SHALL SUPERSEDE ANY LOCAL LAW, RULE, REGULATION, OR
ORDINANCE WHICH SEEKS TO REGULATE THE PURCHASE OF SCRAP MATERIAL BY A
SCRAP PROCESSOR; EXCEPT THAT LOCAL LAW NUMBER FIFTY OF THE CITY OF NEW
YORK FOR THE YEAR TWO THOUSAND SEVEN SHALL NOT BE DEEMED TO BE PREEMPTED
BY THE PROVISIONS OF THIS ARTICLE.
S 5. Section 69-i of the general business law, as added by chapter 431
of the laws of 1976 and as renumbered by section four of this act, is
amended to read as follows:
S 69-i. Penalty. 1. [Each] A FIRST violation of this article [by a
scrap processor] shall be a violation subject to a fine of not more than
two [hundred] THOUSAND dollars[, unless such violation shall be wilful,
in which event it shall be a misdemeanor except, however, the scrap
processor shall not be liable for any violation of this article by a
seller, his agent, or a purported seller or agent.] AND/OR IMPRISONMENT
FOR A TERM OF NOT MORE THAN FIFTEEN DAYS. A SECOND OR SUBSEQUENT
VIOLATION OF THIS ARTICLE SHALL BE A MISDEMEANOR SUBJECT TO A FINE OF
NOT MORE THAN FIVE THOUSAND DOLLARS AND/OR IMPRISONMENT FOR A TERM OF
NOT MORE THAN ONE YEAR.
2. [Each violation of this article by a seller or his agent shall be a
misdemeanor.] ALTERNATIVE FINE. IN ADDITION TO A TERM OF IMPRISONMENT,
WHERE A PERSON HAS GAINED MONEY OR PROPERTY THROUGH A VIOLATION OF THIS
ARTICLE THE COURT, UPON CONVICTION THEREOF, IN LIEU OF IMPOSING THE FINE
AUTHORIZED FOR THE OFFENSE MAY SENTENCE THE DEFENDANT TO PAY AN AMOUNT
NOT EXCEEDING DOUBLE THE AMOUNT OF THE DEFENDANT'S GAIN FROM THE COMMIS-
SION OF THE OFFENSE.
S 6. This act shall take effect on the one hundred eightieth day
after it shall have become a law.
