HF 4461

1st Engrossment - 93rd Legislature (2023 - 2024) Posted on 04/15/2024 10:20pm

A bill for an act
relating to commerce; requiring a license to sell copper metal; amending Minnesota
Statutes 2022, section 325E.21, by adding a subdivision; Minnesota Statutes 2023
Supplement, section 325E.21, subdivision 1b.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2023 Supplement, section 325E.21, subdivision 1b, is
amended to read:

Subd. 1b.

Purchase or acquisition record required.

(a) Every scrap metal dealer,
including an agent, employee, or representative of the dealer, shall create a permanent record
written in English, using an electronic record program at the time of each purchase or
acquisition of scrap metal or a motor vehicle. The record must include:

(1) a complete and accurate account or description, including the weight if customarily
purchased by weight, of the scrap metal or motor vehicle purchased or acquired;

(2) the date, time, and place of the receipt of the scrap metal or motor vehicle purchased
or acquired and a unique transaction identifier;

(3) a photocopy or electronic scan of the seller's proof of identification including the
identification number;

(4) the amount paid and the number of the check or electronic transfer used to purchase
or acquire the scrap metal or motor vehicle;

(5) the license plate number and description of the vehicle used by the person when
delivering the scrap metal or motor vehicle, including the vehicle make and model, and any
identifying marks on the vehicle, such as a business name, decals, or markings, if applicable;

(6) a statement signed by the seller, under penalty of perjury as provided in section
609.48, attesting that the scrap metal or motor vehicle is not stolen and is free of any liens
or encumbrances and the seller has the right to sell it;

(7) a copy of the receipt, which must include at least the following information: the name
and address of the dealer, the date and time the scrap metal or motor vehicle was received
by the dealer, an accurate description of the scrap metal or motor vehicle, and the amount
paid for the scrap metal or motor vehicle;

(8) in order to purchase or acquire a detached catalytic converter, the vehicle identification
number of the car it was removed from or, as an alternative, any numbers, bar codes, stickers,
or other unique markings, whether resulting from the pilot project created under subdivision
2b or some other source. The alternative number must be under a numbering system that
can be immediately linked to the vehicle identification number by law enforcement; deleted text begin and
deleted text end

(9) the identity or identifier of the employee completing the transaction deleted text begin . deleted text end new text begin ; and
new text end

new text begin (10) if the seller is attempting to sell copper metal, a photocopy or electronic scan of the
seller's current license to sell scrap metal copper issued by the commissioner under
subdivision 2c.
new text end

(b) The record, as well as the scrap metal or motor vehicle purchased or acquired, shall
at all reasonable times be open to the inspection of any properly identified law enforcement
officer.

(c) Except for the purchase or acquisition of detached catalytic converters or motor
vehicles, no record is required for property purchased or acquired from merchants,
manufacturers, salvage pools, insurance companies, rental car companies, financial
institutions, charities, dealers licensed under section 168.27, or wholesale dealers, having
an established place of business, or of any goods purchased or acquired at open sale from
any bankrupt stock, but a receipt as required under paragraph (a), clause (7), shall be obtained
and kept by the person, which must be shown upon demand to any properly identified law
enforcement officer.

(d) The dealer must provide a copy of the receipt required under paragraph (a), clause
(7), to the seller in every transaction.

(e) The commissioner of public safety and law enforcement agencies in the jurisdiction
where a dealer is located may conduct inspections and audits as necessary to ensure
compliance, refer violations to the city or county attorney for criminal prosecution, and
notify the registrar of motor vehicles.

(f) Except as otherwise provided in this section, a scrap metal dealer or the dealer's agent,
employee, or representative may not disclose personal information concerning a customer
without the customer's consent unless the disclosure is required by law or made in response
to a request from a law enforcement agency. A scrap metal dealer must implement reasonable
safeguards to protect the security of the personal information and prevent unauthorized
access to or disclosure of the information. For purposes of this paragraph, "personal
information" is any individually identifiable information gathered in connection with a
record under paragraph (a).

Sec. 2.

Minnesota Statutes 2022, section 325E.21, is amended by adding a subdivision to
read:

new text begin Subd. 2c. new text end

new text begin License required for scrap metal copper sale. new text end

new text begin (a) Beginning January 1,
2025, a person is prohibited from engaging in the sale of scrap metal copper unless the
person has a valid license issued by the commissioner under this subdivision.
new text end

new text begin (b) A seller of scrap metal copper may apply to the commissioner on a form prescribed
by the commissioner. The application form must include, at a minimum:
new text end

new text begin (1) the name, permanent address, telephone number, and date of birth of the applicant;
and
new text end

new text begin (2) an acknowledgment that the applicant obtained the copper by lawful means in the
regular course of the applicant's business, trade, or authorized construction work.
new text end

new text begin (c) Each application must be accompanied by a nonrefundable fee of $250.
new text end

new text begin (d) Within 30 days of the date an application is received, the commissioner may require
additional information or submissions from an applicant and may obtain any document or
information that is reasonably necessary to verify the information contained in the application.
Within 90 days after the date a completed application is received, the commissioner must
review the application and issue a license if the applicant is deemed qualified under this
section. The commissioner may issue a license subject to restrictions or limitations. If the
commissioner determines the applicant is not qualified, the commissioner must notify the
applicant and must specify the reason for the denial.
new text end

new text begin (e) A person licensed to perform work pursuant to chapter 326B or issued a Section 608
Technician Certification is deemed to hold a license to sell scrap metal copper.
new text end

new text begin (f) A license issued under this subdivision is valid for one year. To renew a license, an
applicant must submit a completed renewal application on a form prescribed by the
commissioner and a renewal fee of $250. The commissioner may request that a renewal
applicant submit additional information to clarify any new information presented in the
renewal application. A renewal application submitted after the renewal deadline must be
accompanied by a nonrefundable late fee of $500.
new text end

new text begin (g) The commissioner may deny a license renewal under this subdivision if:
new text end

new text begin (1) the commissioner determines that the applicant is in violation of or noncompliant
with federal or state law; or
new text end

new text begin (2) the applicant fails to timely submit a renewal application and the information required
under this subdivision.
new text end

new text begin (h) In lieu of denying a renewal application under paragraph (g), the commissioner may
permit the applicant to submit to the commissioner a corrective action plan to cure or correct
deficiencies.
new text end

new text begin (i) The commissioner may suspend, revoke, or place on probation a license issued under
this subdivision if:
new text end

new text begin (1) the applicant engages in fraudulent activity that violates state or federal law;
new text end

new text begin (2) the commissioner receives consumer complaints that justify an action under this
subdivision to protect the safety and interests of consumers;
new text end

new text begin (3) the applicant fails to pay an application license or renewal fee; or
new text end

new text begin (4) the applicant fails to comply with a requirement set forth in this subdivision.
new text end

new text begin (j) The commissioner must enforce this subdivision under chapter 45.
new text end