S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4975
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 9, 2021
                                ___________
 
 Introduced by M. of A. PEOPLES-STOKES, COOK -- read once and referred to
   the Committee on Economic Development
 
 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.
   § 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:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09034-01-1
              

 A. 4975                             2
 
   § 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  TWENTY-TWO,  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.
   4. (A) A LICENSE ISSUED  OR  RENEWED  UNDER  THE  PROVISIONS  OF  THIS
 SECTION  SHALL ENTITLE A PERSON, ASSOCIATION, PARTNERSHIP OR CORPORATION

 A. 4975                             3
 
 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:
   (A)  THE LICENSE HOLDER OR APPLICANT HAS BEEN FINALLY DETERMINED IN AN
 ADMINISTRATIVE, CIVIL OR CRIMINAL PROCEEDING TO HAVE VIOLATED A SUBSTAN-

 A. 4975                             4
 
 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.
   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

 A. 4975                             5
 
 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 TWENTY-TWO, 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 TWENTY-TWO, 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
 A  DULY  AUTHORIZED  EMPLOYEE  OR AGENT OF ANY SUCH GOVERNMENTAL ENTITY,
 UTILITY COMPANY, CEMETERY OR RAILROAD.

 A. 4975                             6
 
   § 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,
 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

 A. 4975                             7
 
 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.