As Reported by the House Commerce, Labor and Technology Committee

129th General Assembly Regular Session 2011-2012

Sub. S. B. No. 193

Senator Seitz 

Cosponsors: Senators Patton, Hughes, Bacon, Balderson, Beagle, Brown, Burke, Cafaro, Eklund, Hite, Jones, Kearney, LaRose, Lehner, Manning, Niehaus, Oelslager, Sawyer, Schiavoni, Tavares, Turner, Wagoner 

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A BILL

To amend sections 4737.04, 4737.041, and 4737.99 and

1

to enact sections 4737.012 and 4737.045 of the

2

Revised Code to make changes to the law governing

3

scrap metal dealers and bulk merchandise dealers.

4

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

Section 1. That sections 4737.04, 4737.041, and 4737.99 be	5
amended and sections 4737.012 and 4737.045 of the Revised Code be	6
enacted to read as follows:	7

Sec. 4737.012.  (A) Notwithstanding division (A) of section	8
4737.01 of the Revised Code, a dealer who is in the business of	9
purchasing, reselling, exchanging, recycling, shredding, or	10
receiving bulk merchandise containers shall not purchase or	11
receive plastic bulk merchandise containers that are marked with a	12
company name or logo, or more than nine wooden bulk merchandise	13
containers, from any other person at one time, unless the dealer	14
maintains a record book or electronic file in which the dealer	15
keeps an accurate and complete record of all containers purchased	16
or received by the dealer. Every entry in the record book or	17
electronic file shall be numbered consecutively. Until the	18
registry developed by the director of public safety pursuant to	19
section 4737.045 of the Revised Code is operational, a dealer	20
shall maintain the record for each container purchased or received	21
for a minimum period of one year after the date the dealer	22
purchased or received the container. Beginning on the date the	23
registry is operational, a dealer shall maintain the record for	24
each container purchased or received only for a period of sixty	25
days after the date the dealer purchased or received the	26
container. The director shall adopt rules for the format and	27
maintenance of the records required under this division.	28

The records shall contain all of the following:

29

(1) The name and residence of the person from whom the	30
containers were purchased or received, a copy of that person's	31
personal identification card, and, if required, a photograph of	32
the person taken pursuant to division (B)(2) of this section;	33

(2) A description of the containers, including the number	34
purchased or received and, if required, a photograph of the	35
containers taken pursuant to division (B)(1) of this section;	36

(3) The date and time the dealer purchased or received the	37
containers;	38

(4) If the seller or provider of the containers arrives at	39
the dealer's place of business in a motor vehicle, the license	40
plate number of that motor vehicle along with the state that	41
issued the license plate.	42

(B) Every dealer who is in the business of reselling bulk	43
merchandise containers shall take a photograph, in accordance with	44
rules adopted by the director, of both of the following:	45

(1) Each container for which the dealer must make a record	46
under division (A) of this section;	47

(2) Each person who sells or otherwise gives the dealer the	48
containers.	49

The dealer shall take the required photographs at the time	50
the dealer purchases or receives the containers and shall keep the	51
photographs as part of the record in accordance with division (A)	52
of this section.	53

(C) A dealer who is in the business of purchasing, reselling,	54
exchanging, recycling, shredding, or receiving bulk merchandise	55
containers shall fulfill the requirements of section 4737.041 of	56
the Revised Code with respect to the containers purchased or	57
received by the dealer for which the dealer must make a record	58
under division (A) of this section. No dealer shall purchase or	59
receive any bulk merchandise container for which the dealer must	60
make a record under division (A) of this section without complying	61
with division (B), (C), or (D) of section 4737.041 of the Revised	62
Code.	63

(D) As used in this section, "bulk merchandise container"	64
means a plastic or wooden carrier or holder used by a manufacturer	65
or distributor to transport merchandise to wholesale and retail	66
outlets.	67

Sec. 4737.04. (A) As used in this section and sections	68
4737.041, 4737.042, and 4737.043, 4737.044, 4737.045, and 4737.99	69
of the Revised Code:	70

(1) "Scrap metal dealer" means the owner or operator of a	71
business that purchases or receives scrap metal for the purpose of	72
sorting, grading, and shipping metals to third parties for direct	73
or indirect melting into new products.	74

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

75

(a) Beer kegs;

76

(b) Cable, wire, electrical components, and other equipment	77
used in providing cable service or any utility service, including,	78
but not limited to, copper or aluminum coverings, housings, or	79
enclosures related thereto;	80

(c) Grave markers, sculptures, plaques, and vases made out of	81
metal, the appearance of which suggestsuggests that the articles	82
have been obtained from a cemetery;	83

(d) Guard rails for bridges, highways, and roads; highway and	84
street signs; street light poles and fixtures; manholeworker	85
access hole covers, water meter covers, and other similar types of	86
utility access covers; traffic directional and control signs and	87
light signals, metal marked with the name of a political	88
subdivision of the state, and other metal articles that are	89
purchased and installed for use upon authorization of the state or	90
any political subdivision of the state;	91

(e) Historical, commemorative, and memorial markers and	92
plaques made out of metal;	93

(f) Four-wheel metal carts, commonly referred to as "grocery	94
carts," that are generally used by individuals to collect and	95
transport consumer goods while shopping;	96

(g) Four-wheel metal carts, commonly referred to as "metal	97
bossies," that are used to transport or merchandise food products	98
that are stored in crates, shells, or trays;	99

(h) Railroad material, including journal brasses, rail	100
spikes, rails, tie plates, frogs, and communication wire;	101

(i) Metal trays, merchandise containers, or similar transport	102
containers used by a product producer, distributor, retailer, or	103
an agent of a product producer, distributor, or retailer as a	104
means for the bulk transportation, storage, or carrying of retail	105
containers of milk, baked goods, eggs, or bottled beverage	106
products;	107

(j) "Burnt wire," which is any metal that has been smelted,	108
burned, or melted.	109

(3) "Bulk merchandise container" has the same meaning as in	110
section 4737.012 of the Revised Code.	111

(4) "Bulk merchandise container dealer" means a dealer who is	112
subject to section 4737.012 of the Revised Code.	113

(5) "Common recycled matter" means bottles and other	114
containers made out of steel, tin, or aluminum and other consumer	115
goods that are metal that are recycled by individual consumers and	116
not in the bulk or quantity that could be supplied or recycled by	117
large business establishments. "Common recycled matter" does not	118
include a metal tray used by a product producer, distributor,	119
retailer, or agent of a product producer, distributor, or retailer	120
as a means for the bulk transportation, storage, or carrying of	121
retail containers of milk, baked goods, eggs, or bottled beverage	122
products.	123

(4)(6) "Consumer goods" has the same meaning as in section	124
1309.102 of the Revised Code.	125

(5)(7) "Recyclable materials" means the metal materials	126
described in division (B)(C)(5) of this section, on the condition	127
that those metal materials are not special purchase articles.	128

(6)(8) "Motor vehicle" has the same meaning as in section	129
4501.01 of the Revised Code.	130

(B)(1) No person shall engage in the business of scrap metal	131
dealing or act as a bulk merchandise container dealer without	132
first registering with the director of public safety in accordance	133
with section 4737.045 of the Revised Code.	134

(2) Notwithstanding section 2913.02 of the Revised Code, no	135
person, with purpose to deprive the owner of a special purchase	136
article or bulk merchandise container, shall knowingly obtain or	137
exert control over the special purchase article or bulk	138
merchandise container in any of the following ways:	139

(a) Without the consent of the owner or person authorized to	140
give consent;	141

(b) Beyond the scope of the express or implied consent of the	142
owner or person authorized to give consent;	143

(c) By deception;

144

(d) By threat;

145

(e) By intimidation.

146

(3) No person shall receive, purchase, or sell a special	147
purchase article or a bulk merchandise container except as in	148
accordance with sections 4737.012 and 4737.04 to 4737.045 of the	149
Revised Code.	150

(C) Every scrap metal dealer shall maintain a record book or	151
electronic file, in which the dealer shall keep an accurate and	152
complete record of all articles purchased or received by the	153
dealer in the course of the dealer's daily business. On and after	154
the effective date of this amendmentSeptember 11, 2008, every	155
entry in the record book or electronic file shall be numbered	156
consecutively and, on or after the effective date of this	157
amendment, shall be maintained for inspection in numerical order.	158
EveryUntil the registry developed by the director pursuant to	159
section 4737.045 of the Revised Code is operational, a dealer	160
shall maintain the record for each article purchased or received	161
for a minimum period of one year after the date the dealer	162
purchased or received the article, except that the dealer shall	163
maintain the photograph required under division (I) of this	164
section only for a period of sixty days after the dealer purchased	165
or received the article. SaidBeginning on the date the registry	166
is operational, a dealer shall maintain the record for each	167
article purchased or received only for a period of sixty days	168
after the date the dealer purchased or received the article. The	169
director shall adopt rules for the format and maintenance of the	170
records required under this division.	171

The records shall contain all of the following:

172

(1) NameThe name and residence of the person from whom said	173
the articles were purchased or received and, a copy of that	174
person's personal identification card, and a photograph of the	175
person taken pursuant to division (I) of this section;	176

(2) The date and time the scrap metal dealer purchased or	177
received the articles and the weight of the articles as determined	178
by a licensed commercial scale;	179

(3) If the seller or provider of the articles arrives at the	180
dealer's place of business in a motor vehicle, the license plate	181
number of that motor vehicle along with the state that issued the	182
license plate;	183

(4) For metal articles that are not recyclable materials, a	184
full and accurate description of each article purchased or	185
received by the dealer that includes identifying letters or marks	186
written, inscribed, or otherwise included on the article and the	187
name and maker of the article if known;	188

(5) For recyclable materials that are not special purchase	189
articles, a scrap metal dealer shall use the following category	190
codes to identify the recyclable materials that the dealer	191
receives:	192

(a) "Number one copper," which includes clean copper pipe,	193
clean copper wire, or other number one copper that does not have	194
solder, paint, or coating;	195

(b) "Number two copper," which includes unclean copper pipe,	196
unclean copper wire, or other number two copper;	197

(c) "Sheet copper," which includes copper roofing, copper	198
gutters, copper downspouts, and other sheet copper;	199

(d) "Insulated copper wire";

200

(e) "Aluminum or copper radiators," which includes aluminum	201
radiators, aluminum copper radiators, and copper radiators;	202

(f) "Red brass," which includes red brass values and other	203
red brass;	204

(g) "Yellow brass," which includes yellow brass fixtures,	205
yellow brass valve and fitting, ornamental brass, and other yellow	206
brass;	207

(h) "Aluminum sheet";

208

(i) "Aluminum extrusions," which includes aluminum bleachers,	209
aluminum benches, aluminum frames, aluminum pipe, and other	210
aluminum extrusions;	211

(j) "Cast aluminum," which includes aluminum grills,	212
lawnmower decks made of aluminum, aluminum motor vehicle parts and	213
rims, and other cast aluminum;	214

(k) "Clean aluminum wire";

215

(l) "Unclean aluminum wire";

216

(m) "Aluminum exteriors," which includes aluminum siding,	217
aluminum gutters and downspouts, aluminum shutters, aluminum trim,	218
and other aluminum exterior items;	219

(n) "Contaminated aluminum";

220

(o) "Stainless steel," which includes, sinks, appliance	221
housing, dishes, pots, pans, pipe, and other items made out of	222
stainless steel;	223

(p) "Large appliances," which includes consumer and other	224
appliances;	225

(q) "Steel structural," which includes all structural steel	226
such as I-beams, trusses, channel iron, and similar steel from	227
buildings;	228

(r) "Miscellaneous steel," which includes steel grates, steel	229
farm machinery, steel industrial machinery, steel motor vehicle	230
frames, and other items made out of steel;	231

(r)(s) "Sheet irons," which includes bicycles, motor vehicle	232
body parts made of iron, and other items made using sheet iron;	233

(s)(t) "Motor vehicle nonbody parts," which includes motor	234
vehicle batteries, radiators, and other nonbody motor vehicle	235
parts;	236

(t)(u) "Catalytic converters";

237

(u)(v) "Lead";

238

(v)(w) "Electric motors."

239

(C) All journal brasses, and other railroad metals(6) For	240
recyclable materials that are special purchase articles, the	241
relevant category provided in division (A)(2) of this section.	242

(D) Railroad material, including journal brasses, rail	243
spikes, rails, tie plates, frogs, and communication wire, other	244
than purchases and sales under sections 4973.13 to 4973.16 of the	245
Revised Code, shall be held by thea scrap metal dealer for a	246
period of thirty days after being purchased or acquired.	247

(D)(E)(1) The records required under division (B)(C) of this	248
section or under section 4737.012 of the Revised Code shall be	249
open for inspection by the representative of any law enforcement	250
agency, railroad police officers, and the director of public	251
safety or the director's designated representative during all	252
business hours. A scrap metal dealer or bulk merchandise container	253
dealer shall providedo both of the following:	254

(a) Provide a copy of those records to any law enforcement	255
agency or railroad police officer that requests the records or to	256
the director or director's representative, upon request;	257

(b) Prepare a daily electronic report, the content and format	258
of which shall be established in rules adopted by the director,	259
listing all retail transactions that occurred during the preceding	260
day and containing the information described in division (C) of	261
this section or division (A) of section 4737.012 of the Revised	262
Code, as applicable. The dealer shall electronically transfer, by	263
twelve noon eastern standard time, the report for inclusion in the	264
registry created pursuant to division (E) of section 4737.045 of	265
the Revised Code.	266

A law enforcement agency may inspect any photographic records	267
collected and maintained by a scrap metal dealer of either yard	268
operations or individual transactions. Records submitted to any	269
law enforcement agency pursuant to this section are not public	270
records for purposes of section 149.43 of the Revised Code. A	271

(2) A person who claims to own a stolen article that may be	272
identified in those records, or an agent of that person, who	273
provides proof of having filed a stolen property report with the	274
appropriate law enforcement agency, may request those records. The	275
law enforcement agency shall provide those records upon a request	276
made by such a person or that person's agent, but the law	277
enforcement agency shall redact information that reveals the name	278
of the seller of any article and the price the dealer paid for any	279
article the dealer purchased or the estimated value of any article	280
the dealer received. The law enforcement agency shall determine	281
which records to provide, based upon the time period that the	282
alleged theft is reported to have taken place. A law enforcement	283
agency may charge or collect a fee for providing records as	284
required by this section.	285

(E)(F)(1) No scrap metal dealer shall purchase or receive any	286
metal articles, and no bulk merchandise container dealer shall	287
purchase or receive any bulk merchandise containers, from a person	288
who refuses to show the dealer the person's personal	289
identification card, or who refuses to allow the dealer to take a	290
photograph of the person as required under division (I) of this	291
section or of the person or container as required under division	292
(B) of section 4737.012 of the Revised Code.	293

(2) The law enforcement agency that serves the jurisdiction	294
in which a scrap metal dealer or a bulk merchandise container	295
dealer is located shall provide to the scrap metal dealer or bulk	296
merchandise container dealer a searchable, electronic list	297
prepared in accordance with rules adopted by the director, as that	298
agency determines appropriate, of the names and descriptions of	299
persons known to be or who are suspected to be thieves or	300
receivers of stolen property. The law enforcement agency may	301
request the appropriate clerk of courts to provide the list. No	302
scrap metal dealer or bulk merchandise container dealer shall	303
purchase or receive articles from any person identified on the	304
list the dealer receives from the law enforcement agency. The law	305
enforcement agency also shall provide the list to the department	306
of public safety, in an electronic format in accordance with rules	307
adopted by the director, for inclusion in the registry created in	308
section 4737.045 of the Revised Code.	309

(3) No scrap metal dealer or bulk merchandise container	310
dealer shall purchase or receive any special purchase articles or	311
bulk merchandise containers from any person who is under eighteen	312
years of age.	313

(4) No scrap metal dealer shall purchase or receive any	314
special purchase article without complying with division (B)(C) or	315
(I) of this section and division (B), (C), or (D) of section	316
4737.041 of the Revised Code.	317

(5) No scrap metal dealer shall purchase or receive more than	318
one catalytic converter per day from the same person except from a	319
motor vehicle dealer as defined in section 4517.01 of the Revised	320
Code.	321

(6) No scrap metal dealer shall purchase or receive a beer	322
keg that is marked with a company name or logo except from a	323
manufacturer of beer as described in section 4303.02 of the	324
Revised Code or an agent authorized by the manufacturer to dispose	325
of damaged kegs.	326

(7) No scrap metal dealer shall treat a transaction as exempt	327
from section 4737.04 or 4737.041 of the Revised Code unless the	328
seller provides evidence of satisfying division (D)(3) of section	329
4737.043 of the Revised Code.	330

(F)(G) Every scrap metal dealer and bulk merchandise	331
container dealer shall post a notice in a conspicuous place on the	332
dealer's premises notifying persons who may wish to transact	333
business with the dealer of the penalties applicable to any person	334
who does any of the following:	335

(1) Provides a false personal identification card to the	336
dealer;	337

(2) With purpose to defraud, provides any other false	338
information to the dealer in connection with the dealer's duty to	339
maintain the records required under division (B)(C) of this	340
section or under section 4737.012 of the Revised Code;	341

(3) Violates section 2913.02 of the Revised Code or division	342
(B)(2) of this section.	343

(G)(H)(1) Except as otherwise provided in the second	344
paragraph of division (E)(F)(2) of this section, a clerk of courts	345
or an employee of a clerk of courts; a chief of police, marshal,	346
or other chief law enforcement officer,; a sheriff, constable, or	347
chief of police of a township police department or police district	348
police force, and; a deputy, officer, or employee of the law	349
enforcement agency served by the marshal or the municipal or	350
township chief, the office of the sheriff, or the constable; and	351
an employee of the department of public safety is immune from	352
liability in a civil action, including an action for defamation,	353
libel, or slander, to recover damages for injury, death, or loss	354
to persons or property or reputation allegedly caused by an act or	355
omission in connection with compiling and providing the list	356
required by division (E)(F)(2) of this section.	357

(2) The immunity described in division (G)(H)(1) of this	358
section does not apply to a person described in that division if,	359
in relation to the act or omission in question, any of the	360
following applies:	361

(a) The act or omission was manifestly outside the scope of	362
the person's employment or official responsibilities.	363

(b) The act or omission was with malicious purpose, in bad	364
faith, or in a wanton or reckless manner.	365

(c) Liability for the act or omission is expressly imposed by	366
a section of the Revised Code.	367

(I) Every scrap metal dealer shall take a photograph, in	368
accordance with rules adopted by the director, of each person who	369
sells or otherwise gives the dealer an article for which the	370
dealer must make record under division (C) of this section.	371

The dealer shall take the required photograph at the time the	372
dealer purchases or receives the article and shall keep the	373
photograph as part of the record in accordance with division (C)	374
of this section.	375

Sec. 4737.041. A scrap metal dealer or bulk merchandise	376
container dealer shall do all of the following with respect to	377
each special purchase article the scrap metal dealer purchases or	378
receives or with respect to each bulk merchandise container a bulk	379
merchandise container dealer purchases or receives that is subject	380
to division (A) of section 4737.012 of the Revised Code:	381

(A) Comply with the requirements of this section in addition	382
to complying with the applicable requirements of section 4737.012	383
or 4737.04 of the Revised Code;	384

(B) Take a photograph of each special purchase article or	385
bulk merchandise container;	386

(C) Obtain from the seller or provider of the special	387
purchase article or bulk merchandise container proof that the	388
seller or provider owns the special purchase article or bulk	389
merchandise container;	390

(D) If payment is rendered for the special purchase articles	391
or bulk merchandise containers, issue a check for the purchase of	392
the special purchase articles or bulk merchandise containers;	393

(E) Withhold payment for the purchase of the special purchase	394
articles or bulk merchandise containers for a period of two days	395
after the day the special purchase articles or bulk merchandise	396
containers are purchased;	397

(F) If an asserted owner of stolen special purchase articles	398
or bulk merchandise containers or that owner's agent provides	399
proof of having filed a stolen property report with the	400
appropriate law enforcement agency, make records describing	401
special purchase articles or bulk merchandise containers the scrap	402
metal dealer purchased or received after the alleged date of theft	403
available for inspection to the asserted owner or owner's agent	404
for a period of six months after the alleged date of theft of the	405
articles, except that the scrap metal dealer shall withhold the	406
name of the person from whom the special purchase articles or bulk	407
merchandise containers were purchased or received and the amount	408
paid for the special purchase articles or bulk merchandise	409
containers.	410

Sec. 4737.045.  (A) To register as a scrap metal dealer or a	411
bulk merchandise container dealer with the director of public	412
safety as required by division (B) of section 4737.04 of the	413
Revised Code, a person shall do all of the following:	414

(1) Provide the name and street address of the dealer's place	415
of business;	416

(2) Provide the name of the primary owner of the business,	417
and of the manager of the business, if the manager is not the	418
primary owner;	419

(3) Provide the electronic mail address of the business;

420

(4) Provide confirmation that the dealer has the capabilities	421
to electronically connect with the department of public safety for	422
the purpose of sending and receiving information;	423

(5) Provide any other information required by the director in	424
rules the director adopts pursuant to sections 4737.01 to 4737.045	425
of the Revised Code;	426

(6) Pay an initial registration fee of two hundred dollars.

427

(B) A person engaging in the business of a scrap metal dealer	428
or a bulk merchandise container dealer in this state on or before	429
the effective date of this section shall register with the	430
director not later than January 1, 2013. With respect to a person	431
who commences engaging in the business of a scrap metal dealer or	432
a bulk merchandise container dealer after the effective date of	433
this section, the person shall register with the director pursuant	434
to this section prior to commencing business as a scrap metal	435
dealer or a bulk merchandise container dealer.	436

(C) A registration issued to a scrap metal dealer or a bulk	437
merchandise container dealer pursuant to this section is valid for	438
a period of one year. A dealer shall renew the registration in	439
accordance with the rules adopted by the director and pay a	440
renewal fee of one hundred fifty dollars to cover the costs of	441
operating and maintaining the registry created pursuant to	442
division (E) of this section.	443

(D) A scrap metal dealer or a bulk merchandise container	444
dealer registered under this section shall prominently display a	445
copy of the annual registration certificate received from the	446
director pursuant to division (E)(2) of this section.	447

(E) The director shall do all of the following:

448

(1) Develop and implement, by January 1, 2014, and maintain	449
as a registry a secure database for use by law enforcement	450
agencies that is capable of all of the following:	451

(a) Receiving and securely storing all of the information	452
required by division (A) of this section and the daily transaction	453
data that scrap metal dealers and bulk merchandise dealers are	454
required to send pursuant to division (E)(1) of section 4737.04 of	455
the Revised Code;	456

(b) Providing secure search capabilities to law enforcement	457
agencies for enforcement purposes;	458

(c) Creating a link and retransmission capability for receipt	459
of routine scrap theft alerts published by the institute of scrap	460
recycling industries for transmission to dealers and law	461
enforcement agencies in the state;	462

(d) Making the electronic lists prepared pursuant to division	463
(F)(2) of section 4737.04 of the Revised Code available through an	464
electronic searchable format for individual law enforcement	465
agencies and for dealers in the state;	466

(e) Providing, without charge, interlink programming enabling	467
the transfer of information to dealers.	468

(2) Issue, reissue, or deny registration to dealers;

469

(3) Adopt rules to enforce sections 4737.01 to 4737.045 of	470
the Revised Code, rules establishing procedures to renew a	471
registration issued under this section, rules for the format and	472
maintenance for the records required under division (A) of section	473
4737.012 of the Revised Code or division (C) of section 4737.04 of	474
the Revised Code, and rules regarding the delivery of the report	475
required by division (E)(1) of section 4737.04 of the Revised Code	476
to the registry, which shall be used exclusively by law	477
enforcement agencies.	478

(F) A scrap metal dealer or bulk merchandise container dealer	479
may search, modify, or update only the dealer's own business data	480
contained within the registry established in division (E) of this	481
section.	482

(G) All fees received by the director pursuant to this	483
section and division (F) of section 4737.99 of the Revised Code	484
shall be used to develop and maintain the registry required under	485
this section. The fees shall be deposited into the security,	486
investigations, and policing fund created in section 4501.11 of	487
the Revised Code.	488

Sec. 4737.99.  (A) Except as specified in divisions (B) and,	489
(C), (D), (E), and (F) of this section, whoever violates sections	490
4737.01 to 4737.11 of the Revised Code, shall be fined not less	491
than twenty-five nor more than one thousand dollars and the costs	492
of prosecution.	493

(B) Whoever violates division (F)(2) of section 4737.10 of	494
the Revised Code is guilty of a misdemeanor of the fourth degree.	495

(C) Whoever fails to comply with or violates section 4737.01,	496
4737.012, or 4737.041 or, division (B), (C), (D), (E), or (F),	497
(G), or (I) of section 4737.04, or division (D) of section	498
4737.045 of the Revised Code is guilty of a misdemeanor of the	499
thirdfirst degree. If the offender one time previously has	500
violated or failed to comply with section 4737.01, 4737.012, or	501
4737.041 or, division (B), (C), (D), (E), or (F), (G), or (I) of	502
section 4737.04, or division (D) of section 4737.045 of the	503
Revised Code, the violation or failure is a misdemeanorfelony of	504
the secondfifth degree. If the offender two or more times	505
previously has violated or failed to comply with section 4737.01,	506
4737.012, or 4737.041 or, division (B), (C), (D), (E), or (F),	507
(G), or (I) of section 4737.04, or division (D) of section	508
4737.045 of the Revised Code, the violation or failure is a	509
misdemeanorfelony of the firstfourth degree. For any second or	510
subsequent violation of or failure to comply with section 4737.01,	511
4737.012, or 4737.041, or division (C), (D), (E), (F), (G), or (I)	512
of section 4737.04, or division (D) of section 4737.045 of the	513
Revised Code, a court may suspend the registration issued to the	514
scrap metal dealer or bulk merchandise container dealer under	515
section 4737.045 of the Revised Code for a period of ninety days,	516
during which time period the person shall not engage in the	517
business of a scrap metal dealer or a bulk merchandise container	518
dealer, as applicable.	519

(D) Whoever violates division (B)(1) of section 4737.04 of	520
the Revised Code is guilty of a felony of the fifth degree. The	521
court also shall enjoin the person from engaging in the business	522
of a scrap metal dealer or a bulk merchandise dealer.	523

(E) Notwithstanding section 2913.02 of the Revised Code,	524
whoever violates division (B)(2) or (3) of section 4737.04 of the	525
Revised Code is guilty of a felony of the fifth degree for the	526
first offense and a felony of the third degree for any subsequent	527
offense.	528

(F) Any motor vehicle used in the theft or illegal	529
transportation of metal shall be impounded for at least thirty	530
days and not more than sixty days. If the same motor vehicle is	531
used in connection with a second or subsequent theft or illegal	532
transportation of metal, the motor vehicle shall be impounded for	533
at least sixty days and not more than one hundred eighty days. Any	534
motor vehicle used in the theft or illegal transportation of a	535
special purchase article or bulk merchandise container shall be	536
impounded for at least ninety days and not more than three hundred	537
sixty days. A motor vehicle impounded pursuant to this division	538
shall be stored at a municipal corporation impound lot, if	539
available, or at a lot owned by a private entity or another	540
governmental unit that the municipal corporation utilizes for the	541
purpose of impounding a motor vehicle. An impounded motor vehicle	542
may be recovered from the impound lot at the end of the impound	543
term upon payment of fees, fifty per cent of which shall be	544
remitted to the department of public safety to offset the costs of	545
operating the registry established pursuant to section 4737.045 of	546
the Revised Code.	547

Section 2. That existing sections 4737.04, 4737.041, and	548
4737.99 of the Revised Code are hereby repealed.	549

Section 3.  Division (B)(1) of section 4737.04 of the Revised	550
Code, as amended by this act, shall take effect on January 1,	551
2013.	552

Section 4.  In order to cover the costs of the creation and	553
initial implementation of the database described in division (E)	554
of section 4737.045 of the Revised Code, as enacted by this act,	555
the Director of Public Safety may accept funds from public donors	556
for that purpose. The Director shall deposit any funds received	557
pursuant to this section into the Security, Investigations, and	558
Policing Fund created in section 4501.11 of the Revised Code.	559

Section 5. During the first year of the 134th General	560
Assembly, the President of the Senate or Speaker of the House of	561
Representatives shall initiate creation of a joint select	562
committee of the Senate and House of Representatives for the	563
purpose of considering the effectiveness of this act in deterring	564
crime and the costs of complying with this act to industries	565
affected by this act. The President of the Senate and Speaker of	566
the House of Representatives shall create the joint select	567
committee in accordance with the Joint Rules of the Senate and	568
House of Representatives for the 134th General Assembly for	569
creation of a joint select committee.	570

The joint select committee shall hold public hearings at	571
which time representatives of the Ohio Municipal League, the Ohio	572
Prosecuting Attorneys Association, and the Ohio Sheriff's	573
Association; representatives of the scrap metal recycling	574
industry; and other interested parties may present testimony on	575
the affect of this act on metals theft rates, theft deterrence,	576
criminal enforcement and prosecution, and economic and	577
administrative burdens on industry. The joint select committee	578
shall provide advance notice of its hearings to, and shall solicit	579
comments in advance of those hearings from, the Ohio Municipal	580
League, Ohio Prosecuting Attorneys Association, Ohio Sheriff's	581
Association, representatives of the scrap metal recycling	582
industry, and other interested parties that the joint select	583
committee determines should receive notice.	584

The joint select committee shall issue a report summarizing	585
the effectiveness and impacts of this act and submit the report to	586
the President of the Senate and Speaker of the House of	587
Representatives. The Legislative Service Commission shall assist	588
the joint select committee in preparing and finalizing the report	589
required by this section.	590

Section 6.  There is hereby created the Scrap Metal and Bulk	591
Merchandise Container Registry Advisory Council. The Director of	592
Public Safety shall appoint the members of the Council, who shall	593
represent the scrap metal recycling industry, businesses that	594
provide software to the scrap metal recycling industry, law	595
enforcement, and other interests as the Director determines	596
necessary. The Council shall provide guidance and assistance to	597
the Director in the development and implementation of the registry	598
required under section 4737.045 of the Revised Code, as enacted by	599
this act. The Department of Public Safety shall provide assistance	600
to the Council as the Director determines necessary. Members shall	601
serve without compensation or reimbursement. The Council shall be	602
abolished January 1, 2014.	603