A bill

 

TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY AMENDING SECTION 16-17-680, RELATING TO SECONDARY METALS RECYCLERS PERMITS TO PURCHASE NONFERROUS METALS, AND PENALTIES FOR VIOLATIONS, SO AS TO REVISE THE STATUTE TO INCLUDE A REQUIREMENT FOR AFFIRMATIVE DETERMINATIONS OF WHETHER A SECONDARY METALS RECYCLER HAS A PREVIOUS CONVICTION, TO PROVIDE FURTHER POSSIBLE VIOLATIONS WHEN A SECONDARY METALS RECYCLER HAS CERTAIN KNOWLEDGE OF STOLEN NONFERROUS METALS, AND TO PROVIDE PENALTIES FOR THE ADDED OFFENSES.

 

Be it enacted by the General Assembly of the State of South Carolina:

 

SECTION 1.A.  Section 16-17-680(B) of the S.C. Code is amended to read:

 

    (B)(1) A secondary metals recycler shall obtain a permit to purchase nonferrous metals. A secondary metals recycler's employee is not required to obtain a separate permit to purchase nonferrous metals provided that the employee is acting within the scope and duties of their employment with the secondary metals recycler. A secondary metals recycler's employee who intends to purchase nonferrous metals on behalf of the secondary metals recycler at a location other than a fixed site shall have a copy of the secondary metals recycler's permit readily available for inspection.

       (2) If a secondary metals recycler intends to purchase nonferrous metals at a fixed site or fixed sites, the secondary metals recycler shall obtain a permit from the sheriff of the county in which each of the secondary metals recycler's fixed sites are located. The sheriff may issue the permit to the secondary metals recycler, if the secondary metals recycler:

           (a) has a fixed site or fixed sites located in the sheriff's county;

           (b) has not been convicted of a violation of Section 16-11-523 or this section;  and

           (c) declares on an application provided by the sheriff that the secondary metals recycler is informed of and will comply with the provisions of this section.

       (3) If a secondary metals recycler intends to purchase nonferrous metals at a location other than a fixed site, the secondary metals recycler shall obtain a permit from the sheriff of each county in which the secondary metals recycler intends to purchase nonferrous metals. The sheriff may issue the permit to the secondary metals recycler if the secondary metals recycler:

           (a) can sufficiently demonstrate to the sheriff the secondary metals recycler's ability to comply with the provisions of this section;

           (b) has not been convicted of a violation of Section 16-11-523 or this section;  and

           (c) declares on an application provided by the sheriff that the secondary metals recycler is informed of and will comply with the provisions of this section.

       (4) The South Carolina Law Enforcement Division shall develop the application and permit in consultation with the state's sheriffs and representatives from the secondary metals recyclers' industry.

       (5) A sheriff may must investigate a secondary metals recycler's background prior to issuing a permit for purposes of determining if the secondary metals recycler qualifies to be issued a permit. The sheriff must affirmatively determine whether the secondary metals recycler has been convicted of a violation of Section 16-11-523 or this section, and if such a conviction exists, the sheriff must deny the permit pursuant to item (9).

       (6) A sheriff may charge and retain a two hundred dollar fee for each permit.

       (7) A sheriff shall keep a record of all permits issued containing, at a minimum, the date of issuance, and the name and address of the secondary metals recycler.

       (8) A permit is valid for twenty-four months.

       (9) A permit may be denied, suspended, or revoked at any time if a sheriff discovers that the information on an application is inaccurate, a secondary metals recycler does not comply with the requirements of this section, or a secondary metals recycler is convicted of a violation of Section 16-11-523 or this section.

       (10) A sheriff shall issue permits during regular business hours.

 

B. Section 16-17-680(D) of the S.C. Code is amended to read:

 

    (D)(1) It is unlawful to purchase nonferrous metals in any amount for the purpose of recycling the nonferrous metals from a seller unless the purchaser is a secondary metals recycler who has a valid permit to purchase nonferrous metals issued pursuant to subsection (B) and the seller has a valid permit to transport and sell nonferrous metals issued pursuant to subsection (C). A secondary metals recycler may hold a seller's nonferrous metals while the seller obtains a permit to transport and sell nonferrous metals pursuant to subsection (C).

       (2) A secondary metals recycler shall maintain a record containing, at a minimum, the date of purchase, the name and address of the seller, a photocopy of the seller's identification, a photocopy of the seller's permit to transport and sell nonferrous metals, if applicable, the license plate number of the seller's motor vehicle, if available, the seller's photograph, the weight and size or other description of the nonferrous metals purchased, the amount paid for the nonferrous metals, and a signed statement from the seller stating that the seller is the rightful owner or is entitled to sell the nonferrous metals being sold. If the secondary metals recycler has the seller's photograph on file, the secondary metals recycler may reference the photograph on file without making a photograph for each transaction; however, the secondary metals recycler shall update the seller's photograph on an annual basis. A secondary metals recycler may use a video of the seller in lieu of a photograph provided the secondary metals recycler maintains the video for at least one hundred twenty days. A secondary metals recycler may maintain a record in an electronic database provided that the information is legible and can be accessed by law enforcement upon request.

       (3) All nonferrous metals that are purchased by and are in the possession of a secondary metals recycler and all records required to be kept by this section must be maintained and kept open for inspection by law enforcement officials or local and state governmental agencies during regular business hours. The records must be maintained for one year from the date of purchase.

       (4) A secondary metals recycler shall not enter into a cash transaction in payment for the purchase of copper, catalytic converters, or beer kegs, which totals twenty-five dollars or more. Payment for the purchase of copper, catalytic converters, or beer kegs, which totals twenty-five dollars or more must be made by check alone issued and made payable to the seller. A secondary metals recycler shall neither cash a check issued pursuant to this item nor use an automated teller machine (ATM) or other cash card system in lieu of a check. A secondary metals recycler shall not enter into more than one cash transaction per day per seller in payment for the purchase of copper, catalytic converters, or beer kegs.

       (5) A secondary metals recycler shall prominently display a twenty-inch by thirty-inch sign in the secondary metals recycler's fixed site that states:  "NO NONFERROUS METALS, INCLUDING COPPER, MAY BE PURCHASED BY A SECONDARY METALS RECYCLER FROM A SELLER UNLESS THE SELLER IS A HOLDER OF A RETAIL LICENSE, AN AUTHORIZED WHOLESALER, A CONTRACTOR LICENSED PURSUANT TO ARTICLE 1, CHAPTER 11, TITLE 40, CODE OF LAWS OF SOUTH CAROLINA, 1976, A GAS, ELECTRIC, COMMUNICATIONS, WATER, PLUMBING, ELECTRICAL, OR CLIMATE CONDITIONING SERVICE PROVIDER, OR THE SELLER PRESENTS THE SELLER'S VALID PERMIT TO TRANSPORT AND SELL NONFERROUS METALS ISSUED PURSUANT TO SECTION 16-17-680, CODE OF LAWS OF SOUTH CAROLINA, 1976."

       (6) A purchaser who violates a provision of this subsection:

           (a) for a first offense, is guilty of a misdemeanor, and, upon conviction, must be fined not less than two hundred dollars nor more than three hundred dollars or imprisoned not more than thirty days;

           (b) for a second offense, is guilty of a misdemeanor, and, upon conviction, must be fined not less than four hundred dollars nor more than five hundred dollars or imprisoned not more than one year, or both; and

           (c) for a third offense or subsequent offense, is guilty of a misdemeanor, and, upon conviction, must be fined not more than one thousand dollars or imprisoned not more than three years, or both. For an offense to be considered a third or subsequent offense, only those offenses that occurred within a period of ten years, including and immediately preceding the date of the last offense, shall constitute a prior offense within the meaning of this subsection.

           (d) If the purchaser obtained a permit to purchase nonferrous metals pursuant to subsection (B), the permit must be revoked. The purchaser must give written notice to the sheriff in each county where the purchaser holds or has held a permit under this section within ten days of the conviction becoming final. The notice must include a copy of the conviction order and the purchaser's name, permit number, and date of conviction. Failure to provide such notice is a separate violation of this section, and a person who commits a violation is guilty of a misdemeanor and, upon conviction, must be fined not more than one thousand dollars or imprisoned not more than three years, or both. However, if the person intentionally fails to provide such notice with the intent to avoid detection of the revocation or conviction in order to continue operating as a secondary metals recycler or to obtain or retain a permit under this section, the person is guilty of a felony and, upon conviction, must be fined in the discretion of the court or imprisoned not more than five years, or both.

       (7) It is unlawful for a secondary metals recycler to knowingly and intentionally obstruct, interfere with, or impede an inspection authorized under this section including, but not limited to:

           (a) failing to maintain records required by item (2);

           (b) concealing, destroying, altering, or refusing to produce records or nonferrous metals upon lawful request by law enforcement or a governmental agency during regular business hours;

           (c) knowingly falsifying, forging, or providing false information in any record, photograph, video, statement, or other documentation required under this section.

    A person who violates the provisions of this item is guilty of a felony and, upon conviction, the person must be fined in the discretion of the court or imprisoned not more than five years, or both.

       (8)(a) A secondary metals recycler who receives nonferrous metals that he knows, or a reasonable secondary metal recycler should know, are stolen is guilty of a felony and, upon conviction, the person must be fined in the discretion of the court or imprisoned not more than five years, or both. If the purchaser completes the purchase with reasonable suspicion that the nonferrous metals are likely stolen, the status remains unresolved, and the recycler fails to comply with subitem(b), the penalties in item (6)(a) through (c) apply.

           (b) If a secondary metals recycler has reasonable suspicion during a transaction, the secondary metals recycler shall not complete the purchase unless the suspicion is reasonably resolved through additional verification including, but not limited to, contacting the seller's claimed source or obtaining further documentation. If reasonable suspicion persists, the secondary metals recycler must:

               (i) place the nonferrous metals on a self-imposed hold for at least fifteen calendar days, during which the secondary metals recycler shall notify local law enforcement and the issuing sheriff in writing of the held items, including a description, seller details from item (2), and basis for suspicion; and

               (ii) maintain the held items and related records available for inspection as provided in item (3).

           (c) This item does not create a general duty to report crimes or investigate suspicions beyond the verification, self-imposed hold, and notification procedures required by this section during a transaction.

           (d) For the purposes of this item, "reasonable suspicion" means the secondary metals recycler has actual knowledge of facts, circumstances, or indicators that would lead a reasonable secondary metals recycler to suspect the nonferrous metals are likely stolen. A secondary metals recycler is deemed to have actual knowledge if the secondary metals recycler deliberately refrains from learning or confirming such facts, circumstances, or indicators when the secondary metals recycler has reason to believe they exist or when a reasonable secondary metals recycler would make inquiry. Facts, circumstances, or indicators that nonferrous metals are likely stolen include, but are not limited to:

               (i) visible signs of theft, such as fresh cut marks, utility or infrastructure engravings, or serial numbers that appear altered or removed when such signs are reasonably obvious upon routine inspection;

               (ii) inconsistencies between the seller's identification, permit, vehicle details, or signed ownership statement and the nonferrous metals including, but not limited to, the metals appear to be from a commercial or utility source but the seller lacks documentation as an exempted entity under subsection (J) or provides implausible explanations;

               (iii) the secondary metals recycler has received specific, credible notice from law enforcement or from the claimed owner or victim of the nonferrous metals, or an authorized representative, that the specific nonferrous metals being offered match or are consistent with recently reported stolen items, including details such as descriptions, quantities, markings, serial numbers, or other identifying features.

       (9)(a) It is unlawful for a secondary metals recycler to knowingly, or with reckless disregard as to whether the transactions are structured to evade, enter into or participate in multiple cash transactions in payment for copper, catalytic converters, or beer kegs on the same day or over a short period with the intent to evade the cash transaction limits or the one-transaction-per-day restriction in item (4). This includes, but is not limited to:

               (i) splitting a single load or sale into multiple smaller transactions each totaling less than twenty-five dollars;

               (ii) conducting separate transactions under different names, vehicles, or associated parties where there is evidence of coordination or common control; or

               (iii) any pattern of transactions designed to circumvent the requirement that payments totaling twenty-five dollars or more must be made by check payable to the seller.

           (b) A person who violates the provisions of this item is guilty of a felony and, upon conviction, must be fined in the discretion of the court or imprisoned not more than five years, or both, if the purchaser has reasonable suspicion that some or all of the nonferrous metals involved in any one or more of the transactions that constitute the violation are likely stolen. If reasonable suspicion does not exist with respect to the nonferrous metals involved in the violation, the penalties in item (6)(a) through (c) apply.

 

SECTION 2.  The repeal or amendment by this act of any law, whether temporary or permanent or civil or criminal, does not affect pending actions, rights, duties, or liabilities founded thereon, or alter, discharge, release or extinguish any penalty, forfeiture, or liability incurred under the repealed or amended law, unless the repealed or amended provision shall so expressly provide. After the effective date of this act, all laws repealed or amended by this act must be taken and treated as remaining in full force and effect for the purpose of sustaining any pending or vested right, civil action, special proceeding, criminal prosecution, or appeal existing as of the effective date of this act, and for the enforcement of rights, duties, penalties, forfeitures, and liabilities as they stood under the repealed or amended laws.

 

SECTION 3.  If any section, subsection, paragraph, subparagraph, sentence, clause, phrase, or word of this act is for any reason held to be unconstitutional or invalid, such holding shall not affect the constitutionality or validity of the remaining portions of this act, the General Assembly hereby declaring that it would have passed this act, and each and every section, subsection, paragraph, subparagraph, sentence, clause, phrase, and word thereof, irrespective of the fact that any one or more other sections, subsections, paragraphs, subparagraphs, sentences, clauses, phrases, or words hereof may be declared to be unconstitutional, invalid, or otherwise ineffective.

 

SECTION 4.  This act takes effect upon approval by the Governor.

 

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