As Reported by the Committee of Conference

127th General Assembly Regular Session 2007-2008

Am. Sub. S. B. No. 171

Senator Stivers 

Cosponsors: Senators Jacobson, Schuring, Schuler, Mumper, Amstutz, Buehrer, Harris, Schaffer, Wagoner, Padgett, Goodman, Faber 

Representatives Daniels, Hite, Domenick, Flowers, Carmichael, Boyd, Chandler, Collier, DeBose, DeGeeter, Dodd, Dyer, Evans, Fende, Garrison, Hagan, J., Hagan, R., Hottinger, Koziura, Letson, Luckie, Mallory, McGregor, J., Oelslager, Okey, Sayre, Stewart, J., Szollosi, Ujvagi, Williams, B., Williams, S., Yuko, Zehringer 

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A BILL

To amend sections 1333.99, 4737.01, 4737.04, and

1

4737.99 and to enact sections 1333.71, 4737.041,

2

4737.042, 4737.043, and 4737.044 of the Revised

3

Code to make certain changes to the laws

4

regulating secondhand dealers and scrap metal

5

dealers.

6

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1. That sections 1333.99, 4737.01, 4737.04, and	7
4737.99 be amended and sections 1333.71, 4737.041, 4737.042,	8
4737.043, and 4737.044 of the Revised Code be enacted to read as	9
follows:	10

Sec. 1333.71. No person shall sell or purchase a plastic	11
crate or tray that is used for the carrying of retail containers	12
of milk or baked goods and that has embossed upon it a company	13
logo.	14

Sec. 1333.99.  (A) Whoever violates sections 1333.01 to	15
1333.04 of the Revised Code is guilty of a minor misdemeanor.	16

(B) Whoever violates section 1333.12 or 1333.71 of the	17
Revised Code is guilty of a misdemeanor of the fourth degree.	18

(C) Whoever violates section 1333.36 of the Revised Code is	19
guilty of a misdemeanor of the third degree.	20

(D) A prosecuting attorney may file an action to restrain any	21
person found in violation of section 1333.36 of the Revised Code.	22
Upon the filing of such an action, the common pleas court may	23
receive evidence of such violation and forthwith grant a temporary	24
restraining order as may be prayed for, pending a hearing on the	25
merits of said cause.	26

(E) Whoever violates division (A)(1) of section 1333.52 or	27
section 1333.81 of the Revised Code is guilty of a misdemeanor of	28
the first degree.	29

(F) Whoever violates division (A)(2) or (B) of section	30
1333.52 of the Revised Code is guilty of a misdemeanor of the	31
second degree.	32

(G) Except as otherwise provided in this division, whoever	33
violates section 1333.92 of the Revised Code is guilty of a	34
misdemeanor of the first degree. If the value of the compensation	35
is five hundred dollars or more and less than five thousand	36
dollars, whoever violates section 1333.92 of the Revised Code is	37
guilty of a felony of the fifth degree. If the value of the	38
compensation is five thousand dollars or more and less than one	39
hundred thousand dollars, whoever violates section 1333.92 of the	40
Revised Code is guilty of a felony of the fourth degree. If the	41
value of the compensation is one hundred thousand dollars or more,	42
whoever violates section 1333.92 of the Revised Code is guilty of	43
a felony of the third degree.	44

Sec. 4737.01.  (A) "Personal identification card" means a	45
current and valid driver's license, military identification card,	46
state identification card issued under sections 4507.50 to	47
4507.52 of the Revised Code, or a state identification card	48
issued by another state on the condition that that card contains	49
information substantially similar to the information contained on	50
a state identification card issued under sections 4507.50 to	51
4507.52 of the Revised Code and also contains a photograph of the	52
person to whom the card is issued.	53

(B) A person other than a scrap metal dealer, as defined in	54
section 4737.04 of the Revised Code, purchasing, selling,	55
exchanging, or receiving secondhand articles of any kind other	56
than special purchase articles as defined in section 4737.04 of	57
the Revised Code, scrap iron, oldand scrap metal, canvas, rope,	58
branded bottles, junk or lead pipe, except plow irons, old	59
stoves, and furniture, shall post in a conspicuous place in or	60
upon histhe person's shop, store, wagon, boat, or other place of	61
business, a sign having histhe person's name and occupation	62
legibly inscribed thereon, and shall keep a separate record book,	63
open to inspection by any law enforcement officer,or electronic	64
file in which shall be written, in the English language, at the	65
time of the purchase or exchange of such articles, a description	66
thereof, the name, description, and residence of the person from	67
whom purchased and received, and the day and hourtime when such	68
purchase or exchange was made, and shall make and keep a copy of	69
the person's personal identification card. Every entry shall be	70
numbered consecutively, commencing with number one.	71

(B) Any person, prior to purchasing any secondhand article of	72
furniture or secondhand electrical or gas appliance or equipment	73
for the purpose of resale to the general public, shall demand to	74
examine the seller's driver's or commercial driver's license or	75
identification card issued under sections 4507.50 to 4507.52 of	76
the Revised Code and one additional type of card typically used	77
for identification purposes.	78

The purchaser shall keep a written record of the number of	79
the license or identification card and the type and number of the	80
other identification card accepted together with the date of	81
purchase, the name and address of the seller, and a description of	82
the article purchased. The purchaser shall retain the written	83
record book or electronic file and copies of personal	84
identification cards for at least one year after the purchase or	85
exchange date and shall make the record or file and copies	86
available for inspection by any law enforcement officer at all	87
reasonable times. For the purposes of this division, the purchaser	88
may utilize the written record he is required to keep where	89
applicable under division (A) of this section and add to it the	90
information required by this division.	91

Sec. 4737.04. (A) As used in this section and sections	92
4737.041, 4737.042, and 4737.043 of the Revised Code:	93

(1) "Scrap metal dealer" means the owner or operator of a	94
business that purchases or receives scrap metal.	95

(2) "Special purchase article" means all of the following:

96

(a) Beer kegs;

97

(b) Cable, wire, electrical components, and other equipment	98
used in providing cable service or any utility service, including,	99
but not limited to, copper or aluminum coverings, housings, or	100
enclosures related thereto;	101

(c) Grave markers, sculptures, plaques, and vases made out of	102
metal, the appearance of which suggest that the articles have	103
been obtained from a cemetery;	104

(d) Guard rails for bridges, highways, and roads; highway and	105
street signs; street light poles and fixtures; manhole covers,	106
water meter covers, and other similar types of utility access	107
covers; traffic directional and control signs and light signals,	108
metal marked with the name of a political subdivision of the	109
state, and other metal articles that are purchased and installed	110
for use upon authorization of the state or any political	111
subdivision of the state;	112

(e) Historical, commemorative, and memorial markers and	113
plaques made out of metal;	114

(f) Four-wheel metal carts, commonly referred to as "grocery	115
carts," that are generally used by individuals to collect and	116
transport consumer goods while shopping;	117

(g) Four-wheel metal carts, commonly referred to as "metal	118
bossies," that are used to transport or merchandise food products	119
that are stored in crates, shells, or trays.	120

(3) "Common recycled matter" means bottles and other	121
containers made out of steel, tin, or aluminum and other consumer	122
goods that are metal that are recycled by individual consumers	123
and not in the bulk or quantity that could be supplied or	124
recycled by large business establishments. "Common recycled	125
matter" does not include a metal tray used by a product	126
producer, distributor, retailer, or agent of a product producer,	127
distributor, or retailer as a means for the bulk transportation,	128
storage, or carrying of retail containers of milk, baked goods,	129
eggs, or bottled beverage products.	130

(4) "Consumer goods" has the same meaning as in section	131
1309.102 of the Revised Code.	132

(5) "Recyclable materials" means the metal materials	133
described in division (B)(5) of this section, on the condition	134
that those metal materials are not special purchase articles.	135

(6) "Motor vehicle" has the same meaning as in section	136
4501.01 of the Revised Code.	137

(B) Every scrap metal dealer in scrap iron, metal, and waste	138
materials shall maintain a record book of recordsor electronic	139
file, in which hethe dealer shall keep an accurate and complete	140
record of all articles purchased or received by himthe dealer in	141
the course of histhe dealer's daily business. On and after the	142
effective date of this amendment, every entry in the record book	143
or electronic file shall be numbered consecutively. Every dealer	144
shall maintain the record for each article purchased or received	145
for a minimum period of one year after the date the dealer	146
purchased or received the article. Said records shall contain all	147
of the name, description,following:	148

(1) Name and residence of the person from whom said articles	149
were purchased or received and thea copy of that person's	150
personal identification card;	151

(2) The date and hour when such purchases or exchange were	152
madetime the scrap metal dealer purchased or received the	153
articles;	154

(3) If the seller or provider of the articles arrives at the	155
dealer's place of business in a motor vehicle, the license plate	156
number of that motor vehicle along with the state that issued the	157
license plate;	158

(4) For metal articles that are not recyclable materials, a	159
full and accurate description of each article purchased or	160
received by the dealer that includes identifying letters or	161
marks written, inscribed, or otherwise included on the article	162
and the name and maker of the article if known;	163

(5) For recyclable materials that are not special purchase	164
articles, a scrap metal dealer shall use the following category	165
codes to identify the recyclable materials that the dealer	166
receives:	167

(a) "Number one copper," which includes clean copper pipe,	168
clean copper wire, or other number one copper that does not have	169
solder, paint, or coating;	170

(b) "Number two copper," which includes unclean copper pipe,	171
unclean copper wire, or other number two copper;	172

(c) "Sheet copper," which includes copper roofing, copper	173
gutters, copper downspouts, and other sheet copper;	174

(d) "Insulated copper wire";

175

(e) "Aluminum or copper radiators," which includes aluminum	176
radiators, aluminum copper radiators, and copper radiators;	177

(f) "Red brass," which includes red brass values and other	178
red brass;	179

(g) "Yellow brass," which includes yellow brass fixtures,	180
yellow brass valve and fitting, ornamental brass, and other	181
yellow brass;	182

(h) "Aluminum sheet";

183

(i) "Aluminum extrusions," which includes aluminum	184
bleachers, aluminum benches, aluminum frames, aluminum pipe, and	185
other aluminum extrusions;	186

(j) "Cast aluminum," which includes aluminum grills,	187
lawnmower decks made of aluminum, aluminum motor vehicle parts and	188
rims, and other cast aluminum;	189

(k) "Clean aluminum wire";

190

(l) "Unclean aluminum wire";

191

(m) "Aluminum exteriors," which includes aluminum siding,	192
aluminum gutters and downspouts, aluminum shutters, aluminum	193
trim, and other aluminum exterior items;	194

(n) "Contaminated aluminum";

195

(o) "Stainless steel," which includes, sinks, appliance	196
housing, dishes, pots, pans, pipe, and other items made out of	197
stainless steel;	198

(p) "Large appliances," which includes consumer and other	199
appliances;	200

(q) "Miscellaneous steel," which includes steel grates,	201
steel farm machinery, steel industrial machinery, steel motor	202
vehicle frames, and other items made out of steel;	203

(r) "Sheet irons," which includes bicycles, motor vehicle	204
body parts made of iron, and other items made using sheet iron;	205

(s) "Motor vehicle nonbody parts," which includes motor	206
vehicle batteries, radiators, and other nonbody motor vehicle	207
parts;	208

(t) "Catalytic converters";

209

(u) "Lead";

210

(v) "Electric motors."

211

(C) All journal brasses, and other railroad metals, other	212
than purchases and sales under sections 4973.13 to 4973.16,	213
inclusive, of the Revised Code, shall be held by the dealer for a	214
period of thirty days after being purchased or acquired.	215

Such(D) The records required under division (B) of this	216
section shall be open for inspection by the representative of any	217
law enforcement agency atand the director of public safety or the	218
director's designated representative during all business hours. A	219
scrap metal dealer shall provide a copy of those records to any	220
law enforcement agency that requests the records or to the	221
director or director's representative, upon request. Records	222
submitted to any law enforcement agency pursuant to this section	223
are not public records for purposes of section 149.43 of the	224
Revised Code. A person who claims to own a stolen article that	225
may be identified in those records, or an agent of that person,	226
who provides proof of having filed a stolen property report with	227
the appropriate law enforcement agency, may request those	228
records. The law enforcement agency shall provide those records	229
upon a request made by such a person or that person's agent, but	230
the law enforcement agency shall redact information that reveals	231
the name of the seller of any article and the price the dealer	232
paid for any article the dealer purchased or the estimated value	233
of any article the dealer received. The law enforcement agency	234
shall determine which records to provide, based upon the time	235
period that the alleged theft is reported to have taken place. A	236
law enforcement agency may charge or collect a fee for providing	237
records as required by this section.	238

(E)(1) No scrap metal dealer shall purchase or receive any	239
metal articles from a person who refuses to show the dealer the	240
person's personal identification card.	241

(2) The law enforcement agency that serves the jurisdiction	242
in which a scrap metal dealer is located shall provide a list, as	243
that agency determines appropriate, of the names and descriptions	244
of persons known to be or who are suspected to be thieves or	245
receivers of stolen property. No scrap metal dealer shall purchase	246
or receive articles from any person identified on the list the	247
dealer receives from the law enforcement agency.	248

(3) No scrap metal dealer shall purchase or receive any	249
special purchase articles from any person who is under eighteen	250
years of age.	251

(4) No scrap metal dealer shall purchase or receive any	252
special purchase article without complying with division (B) of	253
this section and division (B), (C), or (D) of section 4737.041 of	254
the Revised Code.	255

(5) No scrap metal dealer shall purchase or receive more than	256
one catalytic converter per day from the same person except from	257
a motor vehicle dealer as defined in section 4517.01 of the	258
Revised Code.	259

(6) No scrap metal dealer shall treat a transaction as exempt	260
from section 4737.04 or 4737.041 of the Revised Code unless the	261
seller provides evidence of satisfying division (D)(3) of section	262
4737.043 of the Revised Code.	263

(F) Every scrap metal dealer shall post a notice in a	264
conspicuous place on the dealer's premises notifying persons who	265
may wish to transact business with the dealer of the penalties	266
applicable to any person who does any of the following:	267

(1) Provides a false personal identification card to the	268
dealer;	269

(2) With purpose to defraud, provides any other false	270
information to the dealer in connection with the dealer's duty to	271
maintain the records required under division (B) of this section;	272

(3) Violates section 2913.02 of the Revised Code.

273

(G)(1) Except as otherwise provided in the second paragraph	274
of division (E) of this section, a chief of police, marshal, or	275
other chief law enforcement officer, a sheriff, constable, or	276
chief of police of a township police department or police district	277
police force, and a deputy, officer, or employee of the law	278
enforcement agency served by the marshal or the municipal or	279
township chief, the office of the sheriff, or the constable is	280
immune from liability in a civil action, including an action for	281
defamation, libel, or slander, to recover damages for injury,	282
death, or loss to persons or property or reputation allegedly	283
caused by an act or omission in connection with compiling and	284
providing the list required by division (E) of this section.	285

(2) The immunity described in division (G)(1) of this section	286
does not apply to a person described in that division if, in	287
relation to the act or omission in question, any of the following	288
applies:	289

(a) The act or omission was manifestly outside the scope of	290
the person's employment or official responsibilities.	291

(b) The act or omission was with malicious purpose, in bad	292
faith, or in a wanton or reckless manner.	293

(c) Liability for the act or omission is expressly imposed by	294
a section of the Revised Code.	295

Sec. 4737.041. A scrap metal dealer shall do all of the	296
following with respect to each special purchase article the scrap	297
metal dealer purchases or receives:	298

(A) Comply with the requirements of this section in addition	299
to complying with the requirements of section 4737.04 of the	300
Revised Code;	301

(B) Take a photograph of each special purchase article;

302

(C) Obtain from the seller or provider of the special	303
purchase article proof that the seller or provider owns the	304
special purchase article;	305

(D) If payment is rendered for the special purchase	306
articles, issue a check for the purchase of the special purchase	307
articles;	308

(E) Withhold payment for the purchase of the special	309
purchase articles for a period of two days after the day the	310
special purchase articles are purchased;	311

(F) If an asserted owner of stolen special purchase articles	312
or that owner's agent provides proof of having filed a stolen	313
property report with the appropriate law enforcement agency, make	314
records describing special purchase articles the scrap metal	315
dealer purchased or received after the alleged date of theft	316
available for inspection to the asserted owner or owner's agent	317
for a period of six months after the alleged date of theft of the	318
articles, except that the scrap metal dealer shall withhold the	319
name of the person from whom the special purchase articles were	320
purchased or received and the amount paid for the special	321
purchase articles.	322

Sec. 4737.042.  A scrap metal dealer and a person who	323
purchases, sells, exchanges, or receives secondhand articles may	324
use an electronic device that decodes and records information	325
contained in the metallic strip on a personal identification card	326
to record a person's name, address, and photograph in lieu of	327
making a copy of a person's personal identification card to comply	328
with the requirements of sections 4737.01, 4737.04, and 4737.041	329
of the Revised Code, on the condition that the dealer or person	330
retains that recorded information and makes it available in	331
accordance with the requirements to make copies available under	332
those sections.	333

Sec. 4737.043.  Sections 4737.04 and 4737.041 of the Revised	334
Code do not apply with respect to any of the following:	335

(A) The donation of articles to nonprofit organizations or to	336
any other person, on the condition that the person donating the	337
articles receives no payment or any other valuable consideration	338
in exchange for or due to donating the articles;	339

(B) The sale or donation of common recycled matter;

340

(C) Sales transacted between a scrap metal dealer and an	341
organization that is exempt from federal taxation under section	342
501(c)(3) of the "Internal Revenue Code of 1986," 100 Stat. 285,	343
26 U.S.C. 501(c)(3), as amended, and that collects, for its own	344
fundraising purposes, scrap ferrous and nonferrous metals for	345
recycling rather than disposal;	346

(D) Sales transacted between a scrap metal dealer and a	347
government unit or another business, including a demolition	348
company, public utility company, or another scrap metal dealer,	349
on the condition that the government unit or business satisfies	350
the following criteria:	351

(1) In the course of providing the government unit's or	352
business's services to others or maintaining the government	353
unit's or business's property, whether onsite or offsite, the	354
government unit or business generates scrap ferrous and	355
nonferrous metals for recycling rather than disposal.	356

(2) If the sales transaction involves a government unit,	357
reference to the government unit as a bona fide unit of	358
government can be readily found by the public.	359

(3) If the sales transaction involves a business, the	360
business satisfies one of the following criteria:	361

(a) The business is registered with the secretary of state.

362

(b) The business has been issued a license under section	363
5739.17 of the Revised Code.	364

(c) The business advertises its services in a newspaper of	365
general circulation once a week for not less than six consecutive	366
months or provides a receipt showing payment for such advertising,	367
a telephone book, electronic media that is available to the	368
public, or some other type of media that is owned and operated by	369
a person other than the business and, if an individual operates	370
the business, the individual advertising the business has a	371
specific place of business that is not the individual's permanent	372
home residence.	373

(4) The government unit provides proof of compliance with	374
division (D)(2) of this section or the business provides proof of	375
compliance with division (D)(3) of this section to the scrap	376
metal dealer with whom the government unit or business transacts	377
business.	378

(E) Sales transacted between a scrap metal dealer and a	379
person whose primary business is to create products that result	380
in bulk quantities of ferrous and nonferrous metal used for	381
recycling rather than disposal.	382

(F) Sales of catalytic converters transacted between a scrap	383
metal dealer and a motor vehicle dealer as defined in section	384
4517.01 of the Revised Code.	385

Sec. 4737.044. No municipal corporation or other political	386
subdivision shall enforce any regulation that is in conflict with	387
sections 4737.01 to 4737.043 of the Revised Code. Consistent with	388
the power of municipal corporations to exercise their rights under	389
Article XVIII, Section 3 of the Ohio Constitution and recognizing	390
the need for uniform commercial practices across this state, by	391
analogy to Am. Financial Servs. Assn et al. v. Cleveland, 112 Ohio	392
St. 3d 170, 2006-Ohio-6043, citing Canton v. State, 95 Ohio St. 3d	393
149, 2002-Ohio-2005, syllabus, no municipal corporation or other	394
political subdivision shall enact or enforce a regulation or	395
ordinance applicable to a scrap metal dealer requiring a scrap	396
metal dealer to individually identify and retain any scrap metal	397
purchased or received, a practice otherwise known as "tag and	398
hold."	399

Sec. 4737.99.  (A) Except as specified in divisiondivisions	400
(B) and (C) of this section, whoever violates sections 4737.01 to	401
4737.11 of the Revised Code, shall be fined not less than	402
twenty-five nor more than one thousand dollars and the costs of	403
prosecution.	404

(B) Whoever violates division (F)(2) of section 4737.10 of	405
the Revised Code is guilty of a misdemeanor of the fourth degree.	406

(C) Whoever fails to comply with or violates section 4737.01	407
or 4737.041 or division (B), (C), (E), or (F) of section 4737.04	408
of the Revised Code is guilty of a misdemeanor of the third	409
degree. If the offender one time previously has violated or failed	410
to comply with section 4737.01 or 4737.041 or division (B), (C),	411
(D), (E), or (F) of section 4737.04 of the Revised Code, the	412
violation or failure is a misdemeanor of the second degree. If the	413
offender two or more times previously has violated or failed to	414
comply with section 4737.01 or 4737.041 or division (B), (C), (D),	415
(E), or (F) of section 4737.04 of the Revised Code, the violation	416
or failure is a misdemeanor of the first degree.	417

Section 2. That existing sections 1333.99, 4737.01, 4737.04,	418
and 4737.99 of the Revised Code are hereby repealed.	419

Section 3. During the first year of the 129th General	420
Assembly, the President of the Senate or Speaker of the House of	421
Representatives shall initiate creation of a joint select	422
committee of the Senate and House of Representatives for the	423
purpose of considering the effectiveness of this act in deterring	424
crime and the costs of complying with this act to industries	425
affected by this act. The President of the Senate and Speaker of	426
the House of Representatives shall create the joint select	427
committee in accordance with the Joint Rules of the Senate and	428
House of Representatives for the 129th General Assembly for	429
creation of a joint select committee.	430

The joint select committee shall hold public hearings at	431
which time representatives of the Ohio Municipal League, the Ohio	432
Prosecuting Attorneys Association, and the Ohio Sheriff's	433
Association; representatives of the scrap metal recycling	434
industry; and other interested parties may present testimony on	435
the affect of this act on metals theft rates, theft deterrence,	436
criminal enforcement and prosecution, and economic and	437
administrative burdens on industry. The joint select committee	438
shall provide advance notice of its hearings to, and shall solicit	439
comments in advance of those hearings from, the Ohio Municipal	440
League, Ohio Prosecuting Attorneys Association, Ohio Sheriff's	441
Association, representatives of the scrap metal recycling	442
industry, and other interested parties that the joint select	443
committee determines should receive notice.	444

The joint select committee shall issue a report summarizing	445
the effectiveness and impacts of this act and submit the report to	446
the President of the Senate and Speaker of the House of	447
Representatives. The Legislative Service Commission shall assist	448
the joint select committee in preparing and finalizing the report	449
required by this section.	450

Section 4. The provisions of law contained in this act, and	451
their applications, are severable. If any provision of law	452
contained in this act, or if any application of any provision of	453
law contained in this act, is held invalid, the invalidity does	454
not affect other provisions of law contained in this act and their	455
applications that can be given effect without the invalid	456
provision or application.	457