S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6696
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              March 15, 2019
                                ___________
 
 Introduced  by  M. of A. PEOPLES-STOKES -- read once and referred to the
   Committee on Economic Development
 
 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:
   §  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.
   § 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.
                                                            LBD04760-01-9
              

 A. 6696                             2
 
   §  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 TWENTY, 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
 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.

 A. 6696                             3
 
   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-
 TION,  OR FOR REVOKING, SUSPENDING OR NOT RENEWING A REGISTRATION ISSUED
 UNDER THIS ARTICLE.

 A. 6696                             4
 
   (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.
   § 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-
 tion card, if any, of such  person,  or  by  such  description  as  will
 reasonably  locate  the  seller,]  AND  the  type  and  quantity of such

 A. 6696                             5
 
 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 TWENTY, 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.
   § 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 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.
   § 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.
   § 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] 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.
   § 6.  This act shall take effect on  the  one  hundred  eightieth  day
 after it shall have become a law.