S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 4503--A

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                             March 25, 2015
                               ___________

Introduced  by  Sen.  ORTT  --  read twice and ordered printed, and when
  printed to be committed to the Committee  on  Consumer  Protection  --
  recommitted to the Committee on Consumer Protection in accordance with
  Senate  Rule  6, sec. 8 -- 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 EMPLOYER, WHICH
REQUIRES AND BEARS THE SIGNATURE AND PHOTOGRAPH OF THE PERSON TO WHOM IT
IS ISSUED.
  5.  "DEPARTMENT" SHALL MEAN THE DEPARTMENT OF STATE.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02765-09-6
              

S. 4503--A                          2

  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
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  AND AFTER APRIL FIRST, TWO THOUSAND SEVENTEEN, NO PERSON, FIRM
OR CORPORATION SHALL HOLD HIMSELF, HERSELF OR ITSELF OUT TO BE  A  SCRAP
PROCESSOR  IN THE STATE WITHOUT FIRST REGISTERING WITH THE DEPARTMENT 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

S. 4503--A                          3

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 FOR A PERIOD OF TWO YEARS  FROM  THE  EFFECTIVE  DATE  OF  THE
REGISTRATION. ANY REGISTRATION GRANTED UNDER THIS SECTION MAY BE RENEWED
BY THE DEPARTMENT UPON APPLICATION FOR SUCH RENEWAL BY THE HOLDER THERE-
OF, IN SUCH FORM AS THE DEPARTMENT MAY PRESCRIBE.
  (B) UPON ORIGINAL APPLICATION FOR A REGISTRATION TO OPERATE AS A SCRAP
PROCESSOR, THE APPLICANT SHALL PAY AN APPLICATION FEE, IN SUCH AMOUNT AS
MAY  BE DETERMINED BY THE SECRETARY OF STATE, NOT TO EXCEED ONE THOUSAND
DOLLARS. UPON APPLICATION FOR A  REGISTRATION  RENEWAL,  THE  REGISTRANT
SHALL PAY A RENEWAL PROCESSING FEE IN SUCH AMOUNT AS SHALL BE DETERMINED
BY THE SECRETARY OF STATE, 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
OF STATE SHALL BE A GROUND FOR DENYING AN APPLICATION  FOR  A  REGISTRA-

S. 4503--A                          4

TION,  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:
  (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
EMPLOYEE OF THE DEPARTMENT AS THE SECRETARY OF STATE MAY DESIGNATE,  WHO
SHALL HAVE THE POWER TO SUBPOENA AND BRING BEFORE THE OFFICER OR EMPLOY-
EE 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 IN A PROCEEDING INSTITUTED PURSUANT TO 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 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-

S. 4503--A                          5

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
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 SEVENTEEN, 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.