S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  737--A
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                              January 4, 2017
                                ___________
 
 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  licensing  of
   scrap producers in the state and certain cities
 
   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:
   § 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 METAL, the end product of which
 is  the  production  of  raw material [for remelting purposes] for steel
 mills, [foundaries] FOUNDRIES, smelters, refiners,  and  similar  users,
 BUT  SHALL  NOT  INCLUDE  A  REDEMPTION CENTER, DEALER OR DISTRIBUTOR AS
 DEFINED IN SECTION 27-1003 OF THE ENVIRONMENTAL CONSERVATION LAW  OR  AN
 ELECTRONIC  WASTE  COLLECTION,  CONSOLIDATION  OR  RECYCLING FACILITY AS
 DEFINED IN SECTION 27-2601 OF THE ENVIRONMENTAL CONSERVATION LAW.
   2. "Scrap processor" shall mean any person,  association,  partnership
 or  corporation  operating  and  maintaining  a  "scrap metal processing
 facility".
   3. "GOVERNMENT ISSUED  PHOTOGRAPHIC  IDENTIFICATION"  SHALL  MEAN  ANY
 CURRENT  AND VALID OFFICIAL FORM OF IDENTIFICATION ISSUED BY THE GOVERN-
 MENT 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.
   4. "DEPARTMENT" SHALL MEAN THE NEW YORK STATE DEPARTMENT OF STATE.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD04608-03-8

 S. 737--A                           2
 
   §  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:
   § 69-f. License.  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 AS DESIGNATED
 BY A DULY ADOPTED LOCAL LAW of [any such] THE municipality IN WHICH SUCH
 SCRAP PROCESSOR IS LOCATED; 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] AN ANNUAL LICENSE FEE NOT TO EXCEED TWO  HUNDRED
 FIFTY DOLLARS.
   2.  ON  OR  AFTER  SEPTEMBER  FIRST, TWO THOUSAND NINETEEN, NO PERSON,
 ASSOCIATION, PARTNERSHIP OR CORPORATION SHALL HOLD HIMSELF,  HERSELF  OR
 ITSELF  OUT  TO  BE  A  SCRAP  PROCESSOR IN NEW YORK STATE WITHOUT FIRST
 OBTAINING A LICENSE FROM THE DEPARTMENT AS PROVIDED IN THIS SECTION.
   3. ANY PERSON,  ASSOCIATION,  PARTNERSHIP  OR  CORPORATION  SEEKING  A
 LICENSE  AS  A  SCRAP PROCESSOR SHALL FILE WITH THE DEPARTMENT A LICENSE
 APPLICATION WHICH SHALL INCLUDE THE FOLLOWING INFORMATION:
   (A) THE BUSINESS NAME AND ADDRESS OF THE APPLICANT;
   (B) THE NAMES OF THE APPLICANT'S OFFICERS, DIRECTORS, AND HIGH MANAGE-
 RIAL AGENTS AS SUCH TERM IS DEFINED IN SECTION 20.20 OF THE PENAL LAW;
   (C) THE BUSINESS TELEPHONE NUMBER OF THE APPLICANT;
   (D) THE ADDRESS OF THE SCRAP PROCESSING FACILITY FOR WHICH  A  LICENSE
 IS SOUGHT;
   (E) A STATEMENT INDICATING WHETHER THE APPLICANT OR ANY PERSON IDENTI-
 FIED PURSUANT TO PARAGRAPH (B) OF THIS SUBDIVISION HAS:
   (I) BEEN CONVICTED OF ANY CRIME RELATING TO CONDUCT AS A SCRAP PROCES-
 SOR; AND
   (II)  AT  ANY  TIME IN THE PAST BEEN ISSUED A LICENSE PURSUANT TO THIS
 SECTION, AND IF SO, WHETHER SUCH LICENSE 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 COPY OF (I) THE APPLICANT'S EPA REFRIGERANT  RECOVERY  EQUIPMENT
 ACQUISITION  CERTIFICATION FORM CERTIFYING THAT THE PROSPECTIVE LICENSEE
 OWNS APPROVED REFRIGERANT REMOVAL EQUIPMENT, OR (II) A COPY OF  A  VALID
 CONTRACT  BETWEEN  THE  APPLICANT  AND  A  CERTIFIED REFRIGERANT REMOVAL
 CONTRACTOR;
   (H) A CERTIFICATION ATTESTING THAT THE SCRAP PROCESSOR IS  IN  COMPLI-
 ANCE WITH REQUIREMENTS OF SECTION SIXTY-NINE-G OF THIS ARTICLE;
   (I)  A SWORN STATEMENT BY THE APPLICANT THAT THE INFORMATION SET FORTH
 IN THE APPLICATION IS CURRENT AND ACCURATE; AND
   (J) A COMPLETE SET OF TWO FINGERPRINT CARDS FOR EACH OFFICER AND  HIGH
 MANAGERIAL  AGENT  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 INVESTIGATION PURSUANT TO SUBDIVISION TEN OF THIS SECTION.
 IF ADDITIONAL COPIES OF FINGERPRINTS ARE REQUIRED  THE  APPLICANT  SHALL
 FURNISH THEM UPON REQUEST.

 S. 737--A                           3
 
   4.  (A)  A  LICENSE  ISSUED  OR  RENEWED  UNDER THE PROVISIONS OF THIS
 SECTION SHALL ENTITLE A PERSON, ASSOCIATION, PARTNERSHIP OR  CORPORATION
 TO ACT AS A SCRAP PROCESSOR IN THE STATE OF NEW YORK FOR A PERIOD OF TWO
 YEARS  FROM THE EFFECTIVE DATE OF THE LICENSE. ANY LICENSE GRANTED UNDER
 THIS  SECTION MAY BE RENEWED BY THE DEPARTMENT UPON APPLICATION FOR SUCH
 RENEWAL BY THE HOLDER 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  OF  ONE  THOUSAND
 DOLLARS.  UPON APPLICATION FOR A LICENSE RENEWAL, THE LICENSEE SHALL PAY
 A RENEWAL PROCESSING FEE OF ONE THOUSAND DOLLARS.
   (C) THE SECRETARY OF STATE SHALL HAVE THE AUTHORITY  TO  ASSIGN  STAG-
 GERED  EXPIRATION  DATES  FOR  LICENSES  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
 LICENSE NUMBER.
   5.  (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 LICENSE UPON PAYMENT OF A  FEE  OF  ONE
 HUNDRED DOLLARS.
   6. THE FEES ESTABLISHED BY THIS SECTION SHALL NOT BE REFUNDABLE.
   7.  EACH  SCRAP PROCESSOR SHALL EXHIBIT THE LICENSE PRESCRIBED BY THIS
 ARTICLE AT THE PLACE OF BUSINESS.
   8. NO PERSON, ASSOCIATION, PARTNERSHIP OR CORPORATION SHALL:
   (A) PRESENT, OR ATTEMPT TO PRESENT, THE LICENSE OF ANOTHER;
   (B) KNOWINGLY GIVE FALSE EVIDENCE OF A MATERIAL NATURE TO THE  DEPART-
 MENT FOR THE PURPOSE OF PROCURING A LICENSE; OR
   (C) FALSELY REPRESENT THEMSELVES TO BE A REGISTERED SCRAP PROCESSOR.
   9.  LICENSES  ISSUED  TO SCRAP PROCESSORS SHALL NOT BE TRANSFERABLE OR
 ASSIGNABLE.
   10. (A) THE SECRETARY OF STATE SHALL PROMULGATE SUCH RULES  AND  REGU-
 LATIONS AS ARE DEEMED NECESSARY TO EFFECTUATE THE PURPOSES OF THIS ARTI-
 CLE.
   (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
 DEPARTMENT'S INITIATIVE, TO INVESTIGATE  ANY  VIOLATION  THEREOF  OR  TO
 INVESTIGATE  THE  BUSINESS PRACTICES AND BUSINESS METHODS OF ANY PERSON,
 ASSOCIATION, PARTNERSHIP  OR  CORPORATION  APPLYING  FOR  OR  HOLDING  A
 LICENSE AS A SCRAP PROCESSOR. EACH SUCH APPLICANT OR REGISTRANT SHALL BE
 OBLIGED ON REQUEST OF THE DEPARTMENT, TO SUPPLY SUCH INFORMATION, BOOKS,
 PAPERS  OR  RECORDS  AS MAY BE REQUIRED CONCERNING BUSINESS PRACTICES OR
 BUSINESS METHODS. FAILURE TO COMPLY WITH SUCH LAWFUL REQUEST SHALL BE  A
 GROUND  FOR  DENYING  AN  APPLICATION  FOR  A  LICENSE, OR FOR REVOKING,
 SUSPENDING, OR NOT RENEWING A LICENSE ISSUED UNDER THIS ARTICLE.
   11. IN ORDER TO ASSURE THAT SCRAP PROCESSOR LICENSES ARE NOT ISSUED TO
 OR HELD BY UNQUALIFIED OR UNSUITABLE PERSONS,  THE  SECRETARY  OF  STATE
 MAY,  CONSISTENT  WITH  ARTICLES  TWENTY-THREE AND TWENTY-THREE-A OF THE
 CORRECTION LAW, DENY, SUSPEND OR REVOKE ANY SUCH LICENSE UPON A  WRITTEN
 DETERMINATION  THAT SUCH ACTION IS REQUIRED TO PROTECT THE PUBLIC HEALTH
 AND SAFETY AND THAT:

 S. 737--A                           4
 
   (A) THE LICENSE HOLDER OR APPLICANT HAS BEEN FINALLY DETERMINED IN  AN
 ADMINISTRATIVE, CIVIL OR CRIMINAL PROCEEDING TO HAVE VIOLATED A SUBSTAN-
 TIVE  PROVISION  OF THIS ARTICLE, ANY SUBSTANTIVE REGULATION PROMULGATED
 PURSUANT TO THIS ARTICLE, A MATERIAL CONDITION  OF  ANY  LICENSE  ISSUED
 THEREUNDER,  OR  OF ANY SUBSTANTIALLY SIMILAR STATUTE, REGULATION, ORDER
 OR LICENSE CONDITION OF THE FEDERAL OR OTHER STATE  GOVERNMENT  RELATING
 TO OPERATION AS A SCRAP PROCESSOR; OR
   (B)  SUCH  LICENSEE  OR APPLICANT HAS BEEN PREVIOUSLY DENIED A LICENSE
 FOR THE SAME OR SUBSTANTIALLY SIMILAR ACTIVITY BASED UPON ONE OR MORE OF
 THE PROVISIONS OF THIS SUBDIVISION; OR
   (C) SUCH LICENSE HOLDER  OR  APPLICANT  HAS  BEEN  FOUND  IN  A  CIVIL
 PROCEEDING  TO  HAVE COMMITTED AN INTENTIONALLY TORTIOUS ACT IN RELATION
 TO OPERATIONS AS A SCRAP PROCESSOR OR HAS BEEN CONVICTED IN  A  CRIMINAL
 PROCEEDING OF A CRIME INVOLVING OPERATION AS A SCRAP PROCESSOR; OR
   (D)  SUCH  LICENSEE  HAS  BEEN CONVICTED OF A FELONY UNDER THE LAWS OF
 THIS STATE INVOLVING FRAUD, BRIBERY, PERJURY,  OR  THEFT,  OR  HAS  BEEN
 CONVICTED UNDER THE LAWS OF ANY OTHER STATE OR OF THE UNITED STATES OF A
 CRIMINAL OFFENSE WHICH, IF COMMITTED AND PROSECUTED IN THIS STATE, WOULD
 CONSTITUTE A SIMILAR FELONY UNDER SUCH LAWS OF THIS STATE; OR
   (E) SUCH LICENSEE IN ANY MATTER WITHIN THE JURISDICTION OF THE DEPART-
 MENT HAS BEEN DETERMINED TO HAVE KNOWINGLY FALSIFIED A MATERIAL FACT, OR
 KNOWINGLY  SUBMITTED A FALSE STATEMENT, OR KNOWINGLY MADE USE OF A FALSE
 STATEMENT IN CONNECTION WITH ANY DOCUMENT OR  APPLICATION  SUBMITTED  TO
 THE DEPARTMENT OR SAID AGENCY; OR
   (F) SUCH LICENSEE OR APPLICANT IS EITHER:
   (I) AN INDIVIDUAL WHO HAD A SUBSTANTIAL INTEREST IN OR ACTED AS A HIGH
 MANAGERIAL  AGENT  OR DIRECTOR FOR ANY CORPORATION, PARTNERSHIP, ASSOCI-
 ATION OR ORGANIZATION WHICH COMMITTED AN ACT OR FAILED TO ACT, AND  SUCH
 ACT  OR  FAILURE  TO  ACT COULD BE THE BASIS FOR THE DENIAL OF A LICENSE
 PURSUANT TO THIS SECTION OR REGULATIONS PROMULGATED THEREUNDER  IF  SUCH
 CORPORATION,  PARTNERSHIP,  ASSOCIATION  OR  ORGANIZATION  APPLIED FOR A
 LICENSE UNDER THIS TITLE; OR
   (II) A CORPORATION, PARTNERSHIP, ASSOCIATION, OR ORGANIZATION, OR  ANY
 PRINCIPAL THEREOF, OR ANY PERSON HOLDING A SUBSTANTIAL INTEREST THEREIN,
 WHICH  COMMITTED AN ACT OR FAILED TO ACT, AND SUCH ACT OR FAILURE TO ACT
 COULD BE THE BASIS FOR THE DENIAL OF A LICENSE PURSUANT TO THIS  SECTION
 OR  REGULATIONS PROMULGATED THEREUNDER IF SUCH CORPORATION, PARTNERSHIP,
 ASSOCIATION OR ORGANIZATION APPLIED FOR A LICENSE UNDER THIS TITLE; OR
   (III) A CORPORATION, PARTNERSHIP, ASSOCIATION OR ORGANIZATION  OR  ANY
 HIGH  MANAGERIAL  AGENT  OR  DIRECTOR  THEREOF,  OR ANY PERSON HOLDING A
 SUBSTANTIAL INTEREST THEREIN, ACTING AS HIGH MANAGERIAL AGENT OR  DIREC-
 TOR  FOR OR HOLDING A SUBSTANTIAL INTEREST IN ANOTHER CORPORATION, PART-
 NERSHIP, ASSOCIATION OR ORGANIZATION WHICH COMMITTED AN ACT OR FAILED TO
 ACT, AND SUCH ACT OR FAILURE TO ACT COULD BE THE BASIS FOR THE DENIAL OF
 A LICENSE PURSUANT TO THIS SECTION OR REGULATIONS PROMULGATED THEREUNDER
 HAD SUCH OTHER CORPORATION,  PARTNERSHIP,  ASSOCIATION  OR  ORGANIZATION
 APPLIED FOR A LICENSE UNDER THIS TITLE.
   FOR  THE PURPOSES OF THIS SUBDIVISION, "HIGH MANAGERIAL AGENT" HAS THE
 SAME MEANING AS IS GIVEN THAT TERM IN SECTION 20.20 OF THE PENAL LAW.
   12. ANY ACT OR FAILURE TO ACT WHICH SERVES AS A BASIS  FOR  DENIAL  OR
 REVOCATION OF A LICENSE PURSUANT TO THIS SUBDIVISION SHALL HAVE OCCURRED
 WITHIN  FIVE YEARS FROM THE DATE ON WHICH THE APPLICATION FOR A LICENSE,
 RENEWAL OR MODIFICATION IS SUBMITTED TO THE DEPARTMENT OR FROM THE  DATE
 ON  WHICH  THE  DEPARTMENT SERVES NOTICE OF INTENT TO REVOKE OR MODIFY A
 LICENSE ISSUED BY THE DEPARTMENT IN RELATION TO AN EXISTING LICENSE.

 S. 737--A                           5
 
   13. ANY PERSON DENIED A LICENSE OR RENEWAL ON THE GROUNDS SPECIFIED IN
 THIS SECTION SHALL BE ENTITLED TO A HEARING WITHIN SIXTY  DAYS  OF  SUCH
 DENIAL  IN THE CASE OF A NEW LICENSE, OR WITHIN FIFTEEN DAYS IN THE CASE
 OF A RENEWAL OF ANY EXISTING LICENSE.
   14. 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.
   §  3.  Section 69-g of the general business law, as amended by chapter
 302 of the laws of 2007, is amended to read as follows:
   § 69-g. Records. 1. [Such] A 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, THE name of THE seller, [his] THE SELL-
 ER'S  residence OR BUSINESS address [by street, number, city, village or
 town], the driver's license number  or  information  from  a  government
 issued  photographic identification 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  iden-
 tification  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.
   2.  Such  records  shall  be  available  for  inspection by the police
 department of the state or the municipality in which  the  establishment
 is  located,  BY  THE DEPARTMENT AND BY THE LOCAL LICENSING AUTHORITY SO
 DESIGNATED PURSUANT TO SUBDIVISION ONE OF SECTION SIXTY-NINE-F  OF  THIS
 ARTICLE.
   3.  BY  NO  LATER THAN SEPTEMBER FIRST, TWO THOUSAND NINETEEN, 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 ONE HUNDRED TWENTY DAYS FROM THE  DATE  WHEN  SUCH  ELECTRONIC
 VIDEO RECORD WAS MADE.
   4.  BY  NO  LATER THAN SEPTEMBER FIRST, TWO THOUSAND NINETEEN, A SCRAP
 PROCESSOR SHALL MAINTAIN A RECORD THAT SAID SCRAP PROCESSOR  EITHER  (A)
 POSSESSES  REFRIGERANT RECOVERY EQUIPMENT CERTIFIED BY THE UNITED STATES
 ENVIRONMENTAL PROTECTION AGENCY OR (B) HAS  EXECUTED  A  VALID  CONTRACT
 WITH  A  REFRIGERANT  REMOVAL CONTRACT OR CERTIFIED BY THE UNITED STATES
 ENVIRONMENTAL PROTECTION AGENCY.
   § 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:
   §  69-H.  PROHIBITION  ON  SALE  OF CERTAIN ITEMS. NOTWITHSTANDING ANY
 PROVISION OF LAW, RULE OR REGULATION TO THE CONTRARY, IT SHALL BE UNLAW-
 FUL FOR SCRAP PROCESSORS TO SELL, OFFER FOR SALE, OR PURCHASE AS  SCRAP,
 ANY  METAL  ITEMS  BEARING  MARKINGS OF ANY GOVERNMENTAL ENTITY, UTILITY
 COMPANY, CEMETERY OR RAILROAD UNLESS SUCH ITEMS ARE OFFERED FOR SALE  BY

 S. 737--A                           6
 
 A  DULY  AUTHORIZED  EMPLOYEE  OR AGENT OF ANY SUCH GOVERNMENTAL ENTITY,
 UTILITY COMPANY, CEMETERY OR RAILROAD.
   §  69-J.  PREEMPTION  OF LOCAL LAWS. THE PROVISIONS OF SECTIONS SIXTY-
 NINE-G AND SIXTY-NINE-H OF THIS ARTICLE SHALL PREEMPT AND SUPERSEDE  ANY
 LOCAL  LAW  WHICH  WOULD  OTHERWISE REGULATE THE PURCHASE AND/OR SALE OF
 SCRAP METAL AND/OR IMPOSE RECORD KEEPING AND/OR  REPORTING  REQUIREMENTS
 IN  A  MANNER  WHICH  CONFLICTS  WITH OR IMPOSED ADDITIONAL REQUIREMENTS
 OTHER THAN THOSE SET FORTH THEREIN, AND/OR WHICH WOULD REQUIRE  A  SCRAP
 PROCESSOR TO HOLD SCRAP MATERIAL FOR A SPECIFIED PERIOD OF TIME PRIOR TO
 THE  PROCESSING OR RE-SALE OF SUCH SCRAP MATERIAL, OR WHICH WOULD OTHER-
 WISE PROHIBIT THE ACCEPTANCE OF SCRAP MATERIAL.
   § 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:
   § 69-i. Penalty. 1. [Each violation of this article by a scrap proces-
 sor  shall be a violation subject to a fine of not more than two hundred
 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.
   2.  Each violation of this article by a seller or his agent shall be a
 misdemeanor.] ANY PERSON, ASSOCIATION, PARTNERSHIP  OR  CORPORATION  WHO
 VIOLATES  THIS  ARTICLE  SHALL BE LIABLE FOR A CRIMINAL FINE OF NOT MORE
 THAN TWO THOUSAND FIVE HUNDRED DOLLARS AND/OR IMPRISONMENT FOR A TERM OF
 NOT MORE THAN FIFTEEN DAYS. A SECOND VIOLATION OF THIS ARTICLE COMMITTED
 WITHIN A TEN-YEAR PERIOD SHALL BE PUNISHABLE AS A MISDEMEANOR SUBJECT TO
 A CRIMINAL FINE OF NOT MORE THAN FIVE THOUSAND DOLLARS AND/OR  IMPRISON-
 MENT FOR A TERM OF NOT MORE THAN ONE YEAR.
   2.  ANY  PERSON,  ASSOCIATION, PARTNERSHIP OR CORPORATION WHO VIOLATES
 THIS ARTICLE SHALL BE LIABLE FOR A MAXIMUM CIVIL PENALTY OF TWO THOUSAND
 FIVE HUNDRED DOLLARS FOR A FIRST OFFENSE, FIVE THOUSAND  DOLLARS  FOR  A
 SECOND  OFFENSE  WITHIN  A  TWELVE  MONTH PERIOD AND FOR A MAXIMUM CIVIL
 PENALTY OF TEN THOUSAND DOLLARS FOR A  THIRD  AND  FOR  EACH  SUBSEQUENT
 OFFENSE WITHIN A TWELVE-MONTH PERIOD.
   3.  IN  ANY  CRIMINAL  PROCEEDING BROUGHT PURSUANT TO THIS ARTICLE, IN
 ADDITION TO A TERM OF IMPRISONMENT, WHERE A PERSON,  ASSOCIATION,  PART-
 NERSHIP  OR CORPORATION 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  UNDER  SUBDIVISION ONE OF THIS
 SECTION MAY SENTENCE THE DEFENDANT TO PAY AN AMOUNT, FIXED BY THE COURT,
 NOT EXCEEDING DOUBLE THE AMOUNT OF THE DEFENDANT'S GAIN FROM THE COMMIS-
 SION OF THE OFFENSE.
   4. (A) NOTWITHSTANDING ANY OTHER PROVISION OF LAW, RULE OR REGULATION,
 IN ADDITION TO THOSE PERSONS OTHERWISE AUTHORIZED TO ENFORCE THIS  ARTI-
 CLE  AND  ADJUDICATE  VIOLATIONS THEREOF, THE PROVISIONS OF THIS ARTICLE
 SHALL ALSO BE ENFORCEABLE IN A CITY WITH A POPULATION OF ONE MILLION  OR
 MORE  BY  AN AGENCY DESIGNATED BY A LOCAL LAW DULY ADOPTED BY SUCH CITY,
 AND NOTICES OF VIOLATION MAY BE RETURNABLE TO THE ENVIRONMENTAL  CONTROL
 BOARD  OF  SUCH  CITY,  WHICH  SHALL  HAVE THE POWER TO IMPOSE THE CIVIL
 PENALTIES HEREIN PROVIDED. NOTWITHSTANDING ANY OTHER PROVISION  OF  LAW,
 RULE  OR  REGULATION,  SERVICE  OF  A NOTICE OF VIOLATION FOR AN ALLEGED
 VIOLATION OF THIS SUBDIVISION COMMITTED IN SUCH CITY MAY  BE  MADE  UPON
 ANY PERSON, ASSOCIATION, PARTNERSHIP OR CORPORATION BY FIRST CLASS MAIL,
 POSTAGE  PREPAID, AND ANY SUCH NOTICE SERVED BY MAIL SHALL BE RETURNABLE
 ONLY TO SUCH ENVIRONMENTAL CONTROL BOARD. SUCH SERVICE  BY  FIRST  CLASS
 MAIL  SHALL  BE DEEMED COMPLETE UPON MAILING OF THE NOTICE OF VIOLATION,

 S. 737--A                           7

 UNLESS THE NOTICE OF VIOLATION IS RETURNED TO THE SENDER BY  THE  UNITED
 STATES  POSTAL SERVICE FOR ANY REASON OTHER THAN REFUSAL OF DELIVERY. IN
 ADDITION, ANY NOTICE OF VIOLATION FOR A VIOLATION  OF  THIS  SUBDIVISION
 MAY  BE SERVED BY A MEANS PRESCRIBED IN ARTICLE THREE OF THE CIVIL PRAC-
 TICE LAW AND RULES OR ARTICLE THREE OF THE BUSINESS CORPORATION LAW.
   (B) NOTWITHSTANDING ANY OTHER PROVISION OF LAW,  RULE  OR  REGULATION,
 SUCH  CIVIL  PENALTIES IMPOSED BY SUCH ENVIRONMENTAL CONTROL BOARD SHALL
 BE PAID INTO THE GENERAL FUND OF SUCH CITY.
   (C) ANY FINAL ORDER ISSUED PURSUANT TO THIS SUBDIVISION BY AN ENVIRON-
 MENTAL CONTROL BOARD OF A CITY WITH A POPULATION OF ONE MILLION OR  MORE
 SHALL  CONSTITUTE  A  JUDGMENT THAT MAY BE ENTERED IN ANY PLACE PROVIDED
 FOR THE ENTRY OF CIVIL JUDGMENTS WITHIN THE STATE, AND MAY  BE  ENFORCED
 WITHOUT COURT PROCEEDINGS IN THE SAME MANNER AS THE ENFORCEMENT OF MONEY
 JUDGMENTS  ENTERED  IN  CIVIL  ACTIONS;  PROVIDED, HOWEVER, THAT NO SUCH
 JUDGMENT SHALL BE ENTERED THAT EXCEEDS THE SUM OF  TWENTY-FIVE  THOUSAND
 DOLLARS  FOR  EACH  PERSON,  ASSOCIATION,  PARTNERSHIP  OR  CORPORATION.
 NOTWITHSTANDING THE PRECEDING SENTENCE, BEFORE A JUDGMENT BASED  UPON  A
 DEFAULT  MAY  BE  SO ENTERED, SUCH ENVIRONMENTAL CONTROL BOARD MUST HAVE
 NOTIFIED THE PERSON, ASSOCIATION, PARTNERSHIP OR  CORPORATION  BY  FIRST
 CLASS  MAIL IN SUCH FORM AS SUCH ENVIRONMENTAL CONTROL BOARD MAY DIRECT:
 (1) OF THE DEFAULT DECISION AND ORDER AND THE PENALTY IMPOSED; (2)  THAT
 A  JUDGMENT WILL BE ENTERED IN ANY PLACE PROVIDED FOR THE ENTRY OF CIVIL
 JUDGMENTS IN THE STATE; AND (3) THAT  ENTRY  OF  SUCH  JUDGMENT  MAY  BE
 AVOIDED  BY REQUESTING A STAY OF DEFAULT FOR GOOD CAUSE SHOWN AND EITHER
 REQUESTING A HEARING OR ENTERING A PLEA PURSUANT TO THE  RULES  OF  SUCH
 ENVIRONMENTAL  CONTROL  BOARD  WITHIN THIRTY DAYS OF THE MAILING OF SUCH
 NOTICE. NO JUDGMENT BASED UPON A DEFAULT MAY BE SO ENTERED BY THE  ENVI-
 RONMENTAL  CONTROL BOARD WITHIN LESS THAN SIXTY DAYS FROM THE COMPLETION
 OF SERVICE BY MAIL OF THE NOTICE OF VIOLATION AS PROVIDED  IN  PARAGRAPH
 (A)  OF  THIS SUBDIVISION. ANY REQUIREMENT OF ANY PROVISION OF LAW OTHER
 THAN THIS SUBDIVISION THAT RELATES TO  THE  MANNER  OF  SERVICE  OF  THE
 NOTICE  OF VIOLATION THAT PRECEDES ANY FINAL ORDER OF SUCH ENVIRONMENTAL
 CONTROL BOARD SHALL NOT APPLY TO A FINAL ORDER ISSUED PURSUANT  TO  THIS
 SUBDIVISION.  A JUDGMENT ENTERED PURSUANT TO THIS PARAGRAPH SHALL REMAIN
 IN FULL FORCE AND EFFECT FOR EIGHT YEARS.
   § 6.   This act shall take effect  on  the  first  of  September  next
 succeeding  the  date  on  which  it  shall have become a law, provided,
 however, that the department of state  may  take  all  steps  necessary,
 including  but not limited to the promulgation of rules and regulations,
 to ensure the prompt implementation of this act on its effective date.