Minnesota Legislature
SF 443
3rd Engrossment - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am
Current Version - 3rd Engrossment
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A bill for an act
relating to public safety; regulating scrap metal dealers by requiring that they
pay for scrap metal only by checks or electronic transfers, collect specified
information about transactions, and participate in the criminal alert network;
enhancing penalties for theft that creates a risk to the public; expanding the
receiving stolen property crime for precious metal dealers to include scrap
metal dealers, and adjusting the maximum penalty and monetary threshold for
certain of these offenses; requiring educational materials for scrap metal dealers;
providing criminal penalties; amending Minnesota Statutes 2006, sections 13.82,
subdivision 27; 325E.21; 609.526; proposing coding for new law in Minnesota
Statutes, chapter 299C.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2006, section 13.82, subdivision 27, is amended to read:
Subd. 27.
Pawnshop new text begin and scrap metal dealer new text end data.
Data that would reveal the
identity of persons who are customers of a licensed pawnbroker or secondhand goods
dealer new text begin or a scrap metal dealer new text end are private data on individuals. Data describing the property
in a regulated transaction with a licensed pawnbroker or secondhand goods dealer new text begin or
a scrap metal dealer new text end are public.
Sec. 2.
new text begin
[299C.25] SCRAP METAL DEALERS; EDUCATIONAL MATERIALS.
new text end
new text begin
(a) The superintendent shall develop educational materials relating to the laws
governing scrap metal dealers, including, but not limited to, applicable laws addressing
receiving stolen property and the provisions of section 325E.21. In addition, the materials
must address the proper use of the criminal alert network under section 299A.61, and must
include a glossary of the terms used by law enforcement agencies to describe items of
scrap metal that are different from the terms used in the scrap metal industry to describe
those same items.
new text end
new text begin
(b) In developing the materials under paragraph (a), the superintendent shall seek
the advice of scrap metal trade associations, Minnesota scrap metal dealers, and law
enforcement agencies.
new text end
new text begin
(c) The superintendent shall distribute the materials developed in paragraph (a) to all
scrap metal dealers registered with the criminal alert network.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2007.
new text end
Sec. 3.
Minnesota Statutes 2006, section 325E.21, is amended to read:
325E.21 DEALERS IN deleted text begin WIRE AND CABLEdeleted text end new text begin SCRAP METALnew text end ; RECORDS
deleted text begin ANDdeleted text end new text begin ,new text end REPORTSnew text begin , AND REGISTRATIONnew text end .
new text begin Subdivision 1. new text end
new text begin Definitions. new text end
new text begin
(a) For purposes of this section, the terms defined in
this subdivision have the meanings given.
new text end
new text begin
(b) "Law enforcement agency" or "agency" means a duly authorized municipal,
county, state, or federal law enforcement agency.
new text end
new text begin
(c) "Person" means an individual, partnership, limited partnership, limited liability
company, corporation, or other entity.
new text end
new text begin
(d) "Scrap metal" means:
new text end
new text begin
(1) wire and cable commonly and customarily used by communication and electric
utilities; and
new text end
new text begin
(2) copper, aluminum, or any other metal purchased primarily for its reuse or
recycling value as raw metal, including metal that is combined with other materials
at the time of purchase.
new text end
new text begin
(e) "Scrap metal dealer" or "dealer" means a person engaged in the business of
buying or selling scrap metal, or both, but does not include a person engaged exclusively
in the business of buying or selling new or used motor vehicles or motor vehicle parts,
paper or wood products, rags or furniture, or secondhand machinery.
new text end
deleted text begin Subdivision 1. deleted text end new text begin Subd. 1a. new text end
Purchase or acquisition record required.
new text begin (a) new text end Every
deleted text begin person, firm or corporationdeleted text end new text begin scrap metal dealernew text end , including an agent, employeenew text begin ,new text end or
representative deleted text begin thereofdeleted text end new text begin of the dealernew text end , deleted text begin engaging in the business of buying and selling wire
and cable commonly and customarily used by communication and electric utilitiesdeleted text end shall
keep anew text begin writtennew text end recorddeleted text begin , in the English language, legibly written in ink or typewriting,deleted text end at the
time of each purchase or acquisitiondeleted text begin ,deleted text end new text begin of scrap metal. The record must include:
new text end
new text begin (1)new text end an accurate account or description, including the weight if customarily purchased
by weight, of deleted text begin such wire and cable commonly and customarily used by communication and
electric utilitiesdeleted text end new text begin the scrap metalnew text end purchased or acquireddeleted text begin ,deleted text end new text begin ;
new text end
new text begin (2)new text end the date, timenew text begin ,new text end and place of the receipt of the deleted text begin same,deleted text end new text begin scrap metal purchased or
acquired;
new text end
new text begin (3)new text end the name and address of the person selling or delivering the deleted text begin same anddeleted text end new text begin scrap metal;
new text end
new text begin
(4) the number of the check or electronic transfer used to purchase the scrap metal;
new text end
new text begin (5)new text end the number of the new text begin seller's or deliverer's new text end driver's license deleted text begin of such persondeleted text end new text begin , Minnesota
identification card number, or other identification document number of an identification
document issued for identification purposes by any state, federal, or foreign government if
the document includes the person's photograph, full name, birth date, and signature; and
new text end
new text begin (6) the license plate number and description of the vehicle used by the person when
delivering the scrap metal, and any identifying marks on the vehicle, such as a business
name, decals, or markings, if applicablenew text end .
deleted text begin Suchdeleted text end new text begin (b) Thenew text end record, as well as deleted text begin such wire and cable commonly and customarily used
by communication and electric utilitiesdeleted text end new text begin the scrap metalnew text end purchased or received, shall at all
reasonable times be open to the inspection of any deleted text begin sheriff or deputy sheriff of the county,
or of any police officer in any incorporated city or statutory city, in which such business
may be carried ondeleted text end new text begin law enforcement agencynew text end .
deleted text begin Such person shall not bedeleted text end new text begin (c) No record is new text end required deleted text begin to furnish or keep such record
of anydeleted text end new text begin for new text end property purchased from merchants, manufacturers or wholesale dealers,
having an established place of business, or of any goods purchased at open sale from any
bankrupt stock, but a bill of sale or other evidence of open or legitimate purchase of
deleted text begin suchdeleted text end new text begin thenew text end property shall be obtained and kept by deleted text begin suchdeleted text end new text begin thenew text end personnew text begin ,new text end which must be shown
upon demand to deleted text begin the sheriff or deputy sheriff of the county, or to any police officer in
any incorporated city or statutory city, in which such business may be carried on. The
provisions of this subdivision and of subdivision 2 shall not apply to or include any
person, firm or corporation engaged exclusively in the business of buying or selling motor
vehicles, new or used, paper or wood products, rags or furniture, secondhand machinerydeleted text end new text begin
any law enforcement agencynew text end .
new text begin
(d) 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 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).
new text end
Subd. 2.
deleted text begin Sheriff's copy of record required. deleted text end
deleted text begin
It shall be the duty of every such
person, firm or corporation defined in subdivision 1 hereof, to make out and to deliver or
mail to the office of the sheriff of the county in which business is conducted, not later than
the second business day of each week, a legible and correct copy of the record required
in subdivision 1 of the entries during the preceding week. In the event such person, firm
or corporation has not made any purchases or acquisitions required to be recorded under
subdivision 1 hereof during the preceding week no report need be submitted to the sheriff
under this subdivision.
deleted text end
deleted text begin Subd. 3. deleted text end
Retention required.
Records required to be maintained by subdivision
deleted text begin 1 hereofdeleted text end new text begin 1anew text end shall be retained by the deleted text begin person making themdeleted text end new text begin scrap metal dealer new text end for a period
of three years.
new text begin Subd. 3. new text end
new text begin Payment by check or electronic transfer required. new text end
new text begin
A scrap metal dealer
or the dealer's agent, employee, or representative shall pay for all scrap metal purchases
only by check or electronic transfer.
new text end
new text begin Subd. 4. new text end
new text begin Registration required. new text end
new text begin
(a) Every scrap metal dealer shall register with
and participate in the criminal alert network described in section 299A.61. The dealer
shall ensure that the dealer's system for receiving incoming notices from the network is
in proper working order and ready to receive incoming notices. The dealer shall check
the system for incoming notices twice each day the business is open, once upon opening
and then again before closing. The dealer shall inform all employees involved in the
purchasing or receiving of scrap metal of alerts received relating to scrap metal of the type
that might be conceivably sold to the dealer. In addition, the dealer shall post copies of the
alerts in a conspicuous location.
new text end
new text begin
(b) The scrap metal dealer shall pay to the commissioner of public safety a $50
annual fee to participate in the criminal alert network and for the educational materials
described in section 299C.25.
new text end
new text begin
(c) The commissioner shall notify the scrap metal dealer if a message sent to the
dealer is returned as undeliverable or is otherwise not accepted for delivery by the dealer's
system. The dealer shall take action necessary to ensure that future messages are received.
new text end
new text begin Subd. 5. new text end
new text begin Training. new text end
new text begin
Each scrap metal dealer shall review the educational materials
provided by the superintendent of the Bureau of Criminal Apprehension under section
299C.25 and ensure that all employees do so as well.
new text end
new text begin Subd. 6. new text end
new text begin Criminal penalty. new text end
new text begin
A scrap metal dealer, or the agent, employee, or
representative of the dealer, who intentionally violates a provision of this section, is guilty
of a misdemeanor.
new text end
new text begin Subd. 7. new text end
new text begin Exemption. new text end
new text begin
A scrap metal dealer may purchase aluminum cans without
complying with this section.
new text end
new text begin Subd. 8. new text end
new text begin Property held by law enforcement. new text end
new text begin
(a) Whenever a law enforcement
official from any agency has probable cause to believe that property in the possession of
a scrap metal dealer is stolen or is evidence of a crime and notifies the dealer not to sell
the item, the item may not be sold or removed from the premises. This investigative hold
remains in effect for 90 days from the date of initial notification, or until it is canceled or a
seizure order is issued, whichever comes first.
new text end
new text begin
(b) If an item is identified as stolen or evidence in a criminal case, the law
enforcement official may:
new text end
new text begin
(1) physically seize and remove it from the dealer, pursuant to a written order from
the law enforcement official; or
new text end
new text begin
(2) place the item on hold or extend the hold as provided in this section and leave
it in the shop.
new text end
new text begin
(c) When an item is seized, the person doing so shall provide identification upon
request of the dealer, and shall provide the dealer the name and telephone number of the
seizing agency and investigator, and the case number related to the seizure.
new text end
new text begin
(d) A dealer may request seized property be returned in accordance with section
626.04.
new text end
new text begin
(e) When an order to hold or seize is no longer necessary, the law enforcement
official shall so notify the dealer.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective August 1, 2007, and applies to crimes
committed on or after that date.
new text end
Sec. 4.
Minnesota Statutes 2006, section 609.526, is amended to read:
609.526 PRECIOUS METAL new text begin AND SCRAP METAL new text end DEALERS; RECEIVING
STOLEN PROPERTY.
new text begin Subdivision 1. new text end
new text begin Definitions. new text end
new text begin
As used in this section, the following terms have the
meanings given:
new text end
new text begin
(1) "precious metal dealer" has the meaning given in section 325F.731, subdivision
2; and
new text end
new text begin
(2) "scrap metal dealer" has the meaning given in section 325E.21, subdivision 1.
new text end
new text begin Subd. 2. new text end
new text begin Crime described. new text end
Any precious metal dealer deleted text begin as defined in section
325F.731, subdivision 2,deleted text end new text begin or scrap metal dealernew text end or any person employed by a deleted text begin precious metaldeleted text end
dealer deleted text begin as defined in section 325F.731, subdivision 2deleted text end , who receives, possesses, transfers,
buys, or conceals any stolen property or property obtained by robbery, knowing or having
reason to know the property was stolen or obtained by robbery, may be sentenced as
follows:
(1) if the value of the property received, bought, or concealed is $1,000 or more,
to imprisonment for not more than ten years or to payment of a fine of not more than
$50,000, or both;
(2) if the value of the property received, bought, or concealed is less than $1,000 but
more than deleted text begin $300deleted text end new text begin $500new text end , to imprisonment for not more than deleted text begin fivedeleted text end new text begin three new text end years or to payment of
a fine of not more than deleted text begin $40,000deleted text end new text begin $25,000new text end , or both;
(3) if the value of the property received, bought, or concealed is deleted text begin $300deleted text end new text begin $500 new text end or less,
to imprisonment for not more than 90 days or to payment of a fine of not more than
$1,000, or both.
Any person convicted of violating this section a second or subsequent time within a
period of one year may be sentenced as provided in clause (1).
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective August 1, 2007, and applies to crimes
committed on or after that date.
new text end