Explanation
The purpose of amending Columbus City Code Chapter 550, entitled "Scrap Metal Dealers", is twofold. First, a revision is needed to promote better uniformity of law between the Ohio Revised Code and the Columbus City Code. Chapter 550 was the first law to comprehensively address scrap metal theft in the state of Ohio. After enactment in July of 2007, a number of other political subdivisions, including the state of Ohio, utilized this code as the bases for their own legislation to address the rampant theft of metal. As a result of the State of Ohio enacting Senate Bill 171, certain portions of Chapter 550 of the Columbus City Code must be revised so as to promote uniformity of law and to not be in conflict with the Ohio Revised Code. Second, the experience gained by the Division of Police in enforcing this legislation dictates that certain changes be made which will increase the legislation's effectiveness in combating scrap metal theft. Likewise, these amendments will not unduly overburden scrap metal dealers in the performance of their work.
Title
To amend various sections of Columbus City Codes Chapter 550, Scrap Metal Dealers, relative to the regulation of scrap metal facility licensees.
Body
WHEREAS, in July of 2007 the City of Columbus enacted Chapter 550 of the Columbus City Codes to license and regulate scrap metal dealers in order to address the problem of scrap metal theft; and
WHEREAS, in September of 2008 the State of Ohio followed suit and enacted legislation that also dealt with the regulation of scrap metal dealers; and
WHEREAS, enactment of the state law has prompted the need to make revisions to the City Code to promote uniformity and ensure no conflict with state law; and
WHEREAS, in the nearly two years since enactment of Chapter 550, experience gained by the Division of Police in enforcing this legislation dictates that certain changes be made that will increase the City Code's effectiveness in combating scrap metal theft, which changes can be accomplished without undue burden on the scrap metal dealers; now therefore
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That Sections 550.01, 550.02, 550.03, 550.07, 550.08, 550.09 and 550.10 of the Columbus City Codes, 1959, be and are hereby amended to read as follows:
550.01 Definitions.
As used in Chapter 550 of the Columbus City Codes:
"Scrap metal facility" means any facility, establishment or place of business that is maintained or operated for the primary purpose of receiving, storing, processing, buying, or selling scrap metal for remelting or recycling purposes.
"Scrap metal facility licensee" or "licensee" means any person holding a scrap metal facility license issued pursuant to this chapter and includes any person acting as the license holder's authorized agent or employee.
"Scrap metal" means any scrap article or material intended for recycling composed of iron, steel, or nonferrous metal or metal alloy, including but not limited to, copper, brass, bronze, aluminum, or stainless steel. Scrap metal does not include used beverage containers.
"Motor vehicle" shall have the same meaning as set for in Section 2101.20 of the Columbus City Codes.
"Vehicle identification number or derivative thereof" means any number or derivative of such a number that is embossed, engraved, etched, or otherwise marked on any vehicle or vehicle part by the manufacturer. "Vehicle identification number" also includes a duplicate vehicle identification number replaced upon the vehicle under the authority of the registrar of motor vehicles.
"Industrial or commercial account" means any person that satisfies one of the following criteria: 1) the business is registered with the Ohio secretary of state; 2) the business has been issued a vendor's license under Ohio Revised Code section 5739.17; 3) the business advertises its services in a newspaper of general circulation once a week for not less than six consecutive months or provides a receipt showing payment for such advertising, in a telephone book, in electronic media that is available to the public, or in some other type of media that is owned and operated by a person other than the business; and, if an individual operates the business, the individual advertising the business has a specific place of business that is not the individual's permanent home residence., operating from a fixed location, that sells scrap metal to a scrap metal facility pursuant to a written agreement or written account certification. The term may include other scrap metal facilities.
"Nonprofit account" means any nonprofit organization that is exempt from federal income taxation under subsection 501(a) of the Internal Revenue Code, 26 U.S.C.A. 501(a), and that sells scrap metal to a scrap metal facility pursuant to a written agreement or written account certification.
"Governmental account" means any political subdivision, as defined in Section 2744.01(F) of the Ohio Revised Code, that sells scrap metal to a scrap metal facility pursuant to a written agreement or written account certification.
550.02 License requirement; expiration.
No person shall operate a scrap metal facility in the city of Columbus except under authority of a valid scrap metal facility license issued by the Department of Public Safety, License Section, in the name of the person operating the facility and for the specific site of the facility. Every license shall expire at the end of one year following its date of issuance, subject to suspension of revocation pursuant to Section 550.06 of this chapter. An application for a renewal of a license must be submitted prior to the annual expiration date of the existing license, as provided in Section 501.17 of the Columbus City Codes, and operation under authority of the existing license may continue until issuance or denial of the renewal of the license, provided submission of the renewal application is timely.
550.03 Application for scrap metal facility licenses; fee.
(A) Application for a scrap metal facility license required by Section 550.02, including the renewal of a license, shall be made in writing and sworn to on a form provided by the License Section and pursuant to the terms of this chapter and Chapter 501 of the Columbus City Codes. Each application shall include a filing fee of five hundred ($500.00), which shall not be refundable, and identify the applicant and the address of the facility to be licensed. The filing fee shall be waived for any person that is operating a scrap metal facility at that specific site under a valid junk yard or salvage yard license issued pursuant to Section 3392.02 of the Columbus City Codes.
(B) The application for a license to operate a scrap metal facility shall include the following information:
(1) A list identifying every individual who will be directly engaged in managing or supervising the daily operations of the facility, and for each individual so identified the following information shall be provided by the applicant:
(a) The individual's name, address and social security number;
(b) a A photocopy of the current and valid driver's license, military identification, or other government-issued photo identification card issued to the individual by the federal government or any state;
(c) A set of fingerprints and a certified copy of the individual's criminal history information, including date, time and place of convictions for all violations except traffic offenses as obtained from any local or state law enforcement agency;
(2) The applicant's history of any government-issued licenses or permits related to the operation of any scrap metal facility, including any currently held by the applicant and any previously issued licenses or permits that were revoked or suspended within the past ten (10) years and the reasons therefor;
(3) If the applicant is a business entity that is required to register with the Secretary of State of Ohio, a copy of a current certificate of good standing by that office.
(C) No person shall knowingly make a false license application or procure or seek to procure a license for another.
550.07 Records of transactions; daily reports to police.
(A) All scrap metal facility licensees shall maintain a separate record book or electronic file in which the licensee shall keep an accurate, legible and complete record of all of the following specified information for each retail transaction:
(1) A complete and accurate description of any scrap metal article or material that has been purchased or received by the licensee, including which description shall be as set forth in Ohio Revised Code section 4737.04(B)(5). However, for the two categories of articles or materials listed below the description shall include, where available, the name and maker of the article or material, and together with the serial number or other manufacturer's identification number, letters or marks written or inscribed or other markings showing ownership. The two categories of articles or materials to which this requirement applies are: i) motor vehicles engines, engine heads, transmissions, and rear end and/or front axles; and ii) articles or materials that show ownership by means of any identifying numbers, names embossed, engraved, etched, or otherwise marked on the article or material;
(2) The seller's name and current address;
(3) The identification number from a current and valid driver's license, military identification, or other government-issued photo identification card issued to the seller by the federal government or any state;
(4) The license plate number and state issuing the license plate of the motor vehicle being used by the seller to transport the articles or material to the facility;
(5) An impression of the right or left thumb of the seller;
(6) The date and time that the licensee purchased or received the article or material and the name of the individual employee or operator of the facility who conducted the transaction;
(7) A declaration of whether the total amount paid by the licensee for the articles or material purchased or received was five hundred dollars ($500.00) or more.
(C) The licensee shall prepare a daily report listing all retail transactions occurring during the preceding day and containing all the information described in this section for each retail transaction. Before 12:00 noon each day, the licensee shall deliver a copy of the licensee's daily prior day's report to the chief of police or his or her designee. Delivery of the daily report shall be by means of a secured electronic transmission, a legible facsimile transmission, or the delivery of a paper copy of physical electronic medium containing the report. Licensees submitting a physical electronic medium or data from a computerized tracking system must submit the data in a format approved by the chief of police or his or her designee. The thumb impression required by division (A)(5) of this section is not required to be delivered to the chief of police via the approved computerized tracking system, but shall be retained by the licensee in accordance with division (D) of this section.
(D) The records described in this section shall be retained by the licensee for three years one year following the date of the retail transaction.
550.08 Additional requirements for motor vehicles and parts; exemption.
(A) In addition to all other requirements of this chapter, a scrap metal facility that purchases or receives in a retail transaction as scrap a motor vehicle shall also comply with all the following requirements:
(1) No motor vehicle shall be purchased or received unless at the time of the transaction the seller has provided both a valid certificate of title showing that the seller is the owner of that motor vehicle and a current and valid driver's license, military identification, or other government-issued identification card issued to the seller bearing a photograph of the seller.
(2) A scrap metal facility that purchases or receives a motor vehicle from the owner described on the certificate of title shall within ten days mark the certificate "TO BE CANCELED," keep a record of the cancellation, and forward the certificate to the clerk of the court who issued it in accordance with Section 4738.16(B) of the Ohio Revised Code. The scrap metal facility shall keep the record of the cancellation for three years after creating the record. The record shall include a copy of the canceled title.
(B) In addition to all other requirements of this chapter, a scrap metal facility that purchases or receives in a retail transaction as scrap a motor vehicle engine, engine head, transmission, or rear end and/or front axle motor vehicle part bearing a vehicle identification number or derivative thereof shall also record, as part of the record of the retail transaction, that part's vehicle identification number or derivative thereof.
(C) This chapter shall not apply to any operations licensed by the state of Ohio as a motor vehicle salvage dealer under Ohio Revised Code Chapter 4738. Non auto salvage derived scrap operations shall be subject to regulation as a scrap metal facility.
550.09 Retention of articles; permission of police for disposition; recovery of stolen goods by true owner.
(A) Except as otherwise provided in this section, a scrap metal facility licensee shall retain any and all scrap metal articles or material composed of copper, brass, aluminum or stainless steel that have been purchased or received by the licensee in a retail transaction, in the condition the article or material was received, until the expiration of at least seven (7) days after the date of purchase or receipt. This required seven (7) days retention period does not apply to: aluminum cans; motor vehicles; scrap metal articles or material other than copper, brass, aluminum or stainless steel; or, any other scrap metal articles or material for which the licensee has received written permission for disposition from the chief of police or his or her designee.
(B) For any article or material received for which a retention period is required under this section, the licensee shall attach a tag to the article or material in some visible and convenient place that identifies the date and transaction number applicable to that article or material, which tag shall remain attached until disposition of the article or material.(C) If the chief of police or his or her designee has probable cause to believe that an article or material is stolen property, he shall notify the licensee in writing. Upon receipt of such a notice, the licensee shall retain the article or material until the expiration of thirty (30) days after receipt of the notice, unless the chief or his or her designee notifies the licensee in writing that retention of the article or material is no longer required. Upon expiration of the thirty (30) day period, absent renewal thereof by the chief or his or her designee, or the failure of the true owner to pick up the allegedly stolen property, the scrap article or material may be immediately recycled.
(D) (B) If the chief of police or his or her designee receives a report that property has been stolen and determines the identify of the true owner of the allegedly stolen property that is in the possession of a licensee, and informs the licensee of the true owner's identity, the licensee shall hold the allegedly stolen property for at least thirty (30) days from the date of notification by the chief of police or his or her designee to enable the true owner to pick up that property from the licensee. If a licensee fails or refuses to return the allegedly stolen property that has been held as required by this division, the true owner may recover the property from the licensee in an action at law. Upon expiration of the thirty (30) day period, absent renewal thereof by the chief or his or her designee, or the failure of the true owner to pick up the allegedly stolen property, the scrap article or material may be immediately recycled.
(E) A scrap metal facility licensee shall be exempt from the retention requirements contained in division (A) of this section provided:
(1) The licensee utilizes the automated electronic reporting system approved by the department of public safety for all retail transactions involving scrap metal for which a retention period would otherwise be required under this section; and
(2) All required data fields in the transaction report, as determined by the director or his designee, are completed and transmitted by the licensee to the approved reporting system.
550.10 Purchase of certain articles restricted.
(A) No scrap metal facility licensee shall purchase or receive any restricted article in a retail transaction unless at the time of the transaction the seller has received reasonable, reliable, written documentation verifying that the seller is the owner of the article, or is an employee, agent, or other person authorized to sell the article on behalf of the owner.
(B) For purposes of this section, "restricted article" means all of the following:items described as a "special purchase article" in Ohio Revised Code section 4737.04.
beer kegs; shopping carts; cable or wire and their electronic components owned by a public utility, electric or communication company; grave makers, sculptures, plaques, and vases, the appearance of which suggest that the articles have been obtained from a cemetery; guard rails for bridges, highways, and roads; highway and street signs; street light poles and fixtures; manhole covers, water meter covers, and other similar types of utility access covers; traffic directional and control signs and light signals; metal marked with the name of a political subdivision of the state, and other articles that are purchased and installed for use upon authorization of the state or any political subdivision of the state; historical markers.
(C) No scrap metal facility licensee shall purchase or receive any consumer appliance in a retail transaction unless:
(1) at the time of the transaction the seller has received reasonable, reliable, written documentation verifying that the seller is the owner of the consumer appliance, or is an employee, agent, or other person authorized to sell the consumer appliance on behalf of the owner; or
(2) no more than two (2) consumer appliances are purchased are received per seller per day.
(D) For purposes of this section, "consumer appliance" means all of the following:
air conditioners; hot water heaters; furnaces; refrigerators; freezers; stoves; clothes washers or dryers.
(E) (C) No scrap metal facility licensee shall purchase or receive any catalytic converter in a retail transaction unless:
(1) at the time of the transaction the seller has received reasonable, reliable, written documentation verifying that the seller is the owner of the catalytic converter, or is an employee, agent, or other person authorized to sell the catalytic converter on behalf of the owner; or
(2) no more than one (1) catalytic converter is purchased or received per seller per day.
Section 2. That existing Sections 550.01, 550.02, 550.03, 550.07, 550.08, 550.09 and 550.10 of the Columbus City Codes, 1959, are hereby repealed and replaced as provided in Section 1.
Section 3. That this ordinance shall take effect and be in force from and after the earliest date allowed by law.