A.R.S. tit. 44 ch. 11 — Arizona Revised Statutes Title 44 Chapter 11 — Regulations Concerning Particular Businesses

44-1601. Definitions In this article, unless the context otherwise requires: 1. "Dealer" means a person engaged in conducting, managing or carrying on the business of purchasing solely precious items or precious items in addition to other tangible personal property. Dealer does not include: (a) Investment brokerage houses. (b) Financial institutions regulated by the department of insurance and financial institutions. (c) Securities brokerage houses regulated by a recognized national stock exchange. 2. "Investment brokerage house" means a house with commissioned agents who execute buy and sell orders for their customers and who: (a) Execute orders for investment items. (b) Do not assume the risks of ownership in the normal course of providing their brokerage services. (c) Do not maintain or deal from an inventory of investment items. 3. "Investment items" means commodities that possess the characteristics of those items commonly traded in internationally recognized markets. 4. "Local law enforcement agency" means the police department of an incorporated city or town or, in areas outside of incorporated cities and towns, the county sheriff. 5. "Person" means an individual, partnership, corporation, association or any other entity of whatever kind or nature. 6. "Precious item" means: (a) Secondhand gold, silver, platinum or jewelry, flatware or holloware containing gold, silver or platinum. (b) Secondhand precious or semiprecious stones whether mounted or unmounted. (c) Secondhand pearls. Precious item does not include coins and unmounted gemstones accompanied by a certificate from an independent, internationally recognized gem grading laboratory. 7. "Purchase" means to buy, trade, exchange or receive a precious item. 8. "Secondhand" means that the precious item has previously been owned by someone other than the manufacturer or dealer whose business it is to sell such items to the public. 44-1602. Requirements of dealers of precious items; violation; classification A. Each dealer shall keep for six months from the date of purchase of a precious item and make available on request of a peace officer: 1. The name, current address, date of birth and signature of the person from whom the item was purchased. 2. A description of the person, including height, weight, race, complexion and hair color. 3. Identification card serial number as required under subsection B. 4. A list pursuant to subsection C describing the items purchased from that person. B. Before making a purchase, a dealer shall require the person from whom he is purchasing to identify himself with a valid motor vehicle operator's license, valid motor vehicle nonoperating identification license, valid armed forces identification card or other valid photo identification sufficient to verify the information required pursuant to subsection A of this section. C. Each dealer shall, at least once each week in which he makes a purchase, make out and deliver to the local law enforcement agency a true, complete and legible list of all items purchased during the period since the last report. The dealer shall use local law enforcement agency forms to meet the requirements of this subsection if such forms are issued by the local law enforcement agency. The list shall include: 1. The brand name and serial number, if any. 2. An accurate description of each item sufficient to enable the local law enforcement agency to identify the item. 3. The date and time when the item was received. 4. The amount paid for each item. 5. All information pursuant to subsection A, paragraphs 1, 2 and 3. D. Any item purchased shall be held in the same shape and form as receipted for in the dealer's custody for ten calendar days after delivering the list to the local law enforcement agency as required under subsection C. This subsection shall not apply to the redemption of pawned or pledged items. E. Payment to the seller or consignor shall be by check only, made payable to a named payee who is the actual intended seller. F. It is presumptive evidence of intent to violate this section if the items purchased are not listed or fail to agree with the description contained in the list. G. On notification by a peace officer that the items purchased are the fruits of a crime, the dealer shall not dispose of those items. H. A dealer shall not purchase any precious item from any person under eighteen years of age unless the person is accompanied by a parent or guardian who must submit identification as required under subsection B. I. Dealers of precious items may only purchase at their permanent place of business, as listed on their sales tax license. J. Each dealer shall prominently display a copy of this statute in a conspicuous place on the premises of the business. K. A person who violates this article is guilty of a class 1 misdemeanor. 44-1603. Applicability This article does not apply to: 1. Gem and mineral shows which have been regularly scheduled within this state for at least three consecutive years. 2. Transactions in precious items that constitute a partial trade for new or used merchandise of like kind. 3. Any person who purchases precious items from merchants, manufacturers or wholesale dealers. 44-1604. Local ordinances This article does not supersede any city, town or county ordinance nor does this article prohibit a city, town or county from enacting an ordinance regulating dealers of precious items. If a city, town or county has an ordinance regulating dealers of precious items, the provisions of this act and the provisions of that ordinance shall both apply except that an ordinance of a city, town or county which conflicts with or provides less stringent requirements than are provided in this article shall not be enforceable. 44-1611. Definitions In this article, unless the context otherwise requires: 1. "Advertisement" has the same meaning prescribed in section 44-1521. 2. "Carrier's lien" means a lien that is established under section 47-7307. 3. "Consumer" means an individual who uses or intends to use household goods moving services provided by a household goods mover. 4. "Household goods" means goods that are used primarily for personal, family or household purposes and that are used in connection with household goods moving services. 5. "Household goods mover" means a person that provides household goods moving services. 6. "Household goods moving services": (a) Means the loading, packing, moving, transporting, storing while in transit, delivering, unloading or otherwise taking possession or control of household goods from a consumer for the purpose of intrastate household goods moves to another location at the direction of the consumer for a fee. (b) Does not include moving household goods for disposal or destruction or moving household goods from a factory or store, unless a consumer has purchased the property to be moved from a factory or store with the intent to use that property for personal, family or household purposes. 7. "Moving destination" means the location that the consumer specifies is where the household goods shall be delivered and unloaded. 8. "Person" has the same meaning prescribed in section 44-1521. 44-1612. Exemption qualifications A. To qualify for the exemption set forth in section 44-1614, a household goods mover must: 1. Provide to the consumer a written contract that meets all of the following requirements: (a) Is signed and dated, through electronic means or otherwise, by the consumer and household goods mover before the household goods mover provides any household goods moving services or takes possession of any household goods. (b) Includes: (i) The name, telephone number and physical address of the household goods mover that issues the contract and that provides the household goods moving services. (ii) The date and time of the scheduled household goods moving services. (iii) The name, address and telephone number of the consumer, the address of where the household goods that need to be moved are located and the address of the moving destination. (iv) A detailed list of household goods moving services to be provided under the contract and any other fees that the consumer may be required to pay. (v) A list of any terms and conditions for payment of the total charges, including a notice of any minimum charges. (vi) A list of acceptable methods of payment for the household goods moving services. (vii) A statement as to whether a household goods mover will reimburse consumers for any loss or damage incurred during the move and, if applicable, an explanation of how the household goods mover will reimburse consumers for loss or damage and the process consumers must follow to obtain a reimbursement. (viii) The total estimated price, including all anticipated fees and charges, based on the specific circumstances of the services to be performed. 2. Before providing any household goods moving services, the household goods mover must also provide the consumer with a clear and conspicuous disclaimer with the following language: "By signing this disclaimer, I acknowledge that the household goods mover may refuse to unload and deliver my household goods until I have paid the total estimated price set forth in this contract. I can cancel this contract at any time prior to the moving company providing services." The disclaimer must be signed by the household goods mover and the consumer. 3. The household goods mover must provide to the consumer a legible copy of the signed contract and the disclaimer before providing any household goods moving services. B. The consumer may cancel the contract at any point before the household goods mover provides any household goods moving services. The notice of cancellation does not need to be in any particular form and is effective if it indicates the intention of the consumer not to be bound by the contract. 44-1613. Unlawful moving practices A. Except as provided in section 44-1614, after taking possession of a consumer's household goods, a household goods mover may not refuse to deliver or unload a consumer's household goods or enforce, or threaten to enforce, a carrier's lien against a consumer's household goods when providing household goods moving services for an intrastate move. For the purposes of this subsection, a written estimate or contract that includes disclosure of a carrier's lien does not constitute threatening to enforce a carrier's lien. B. Any advertisement or representation by a household goods mover relating to: 1. Insurance, loss or damage must accurately disclose the extent to which the referenced insurance and the household goods mover will cover loss or damage incurred during household goods moving services. 2. Fees, charges and rates must accurately disclose all fees, charges and rates. C. An act or practice in violation of this article constitutes an unlawful practice under section 44-1522. The attorney general may investigate and take appropriate action as prescribed by chapter 10, article 7 of this title. In addition to being subject to the enforcement and penalty provisions in chapter 10, article 7 of this title, a household goods mover that violates this article is subject to any other civil or criminal action, remedy and penalty provided by law. 44-1614. Delivery and unloading of household goods; exemption A. If a household goods mover complies with section 44-1612 and the household goods mover has transported the household goods to the moving destination, all of the following apply: 1. The household goods mover may require the consumer to tender the total estimated price set forth in the contract pursuant to section 44-1612 before delivering and unloading the household goods, except that on a consumer's request a household goods mover may not refuse or charge additional fees to deliver and unload medicine or medical devices or items used to treat or assist an individual with a disability. 2. On the consumer's tender of payment of the total estimated price set forth in the contract, less any amounts previously collected from the consumer, the household goods mover must deliver and unload household goods at the moving destination. 3. A household goods mover may not refuse to deliver and unload household goods to a consumer at the moving destination based on the household goods mover's refusal or inability to accept a method of payment listed in the contract pursuant to section 44-1612. 4. If a consumer does not tender the total estimated price set forth in the contract pursuant to section 44-1612, the household goods mover may refuse to deliver and unload the household goods until the consumer tenders payment of the total estimated price. B. If a household goods mover refuses to deliver and unload household goods, the household goods mover must use reasonable care to safeguard, preserve and protect the household goods until the household goods are properly delivered and unloaded at the moving destination. C. If a household goods mover unlawfully fails to deliver and unload household goods, a peace officer may take custody of the household goods or direct the household goods mover to deliver and unload the household goods to the consumer. D. After the written contract is signed pursuant to section 44-1612, if the consumer makes any request for an additional service not reflected in the contract prescribed by section 44-1612, the household goods mover must obtain written acknowledgement from the consumer of the fee the consumer should expect to pay for the service requested before the household goods mover provides the service. The household goods mover must also provide the consumer with a copy of the written acknowledgement of the fee before providing the service. E. After delivering and unloading the household goods at the moving destination, a household goods mover may present an invoice for any remaining charges for additional services not reflected in the contract prescribed by section 44-1612, but that is acknowledged under subsection D of this section. To secure payment for any additional services provided, a household goods mover may not refuse to deliver and unload household goods at the moving destination. If the total amount collected by a household goods mover exceeds the amount prescribed by the contract as set forth in section 44-1612 and any acknowledged fees as set forth in subsection D of this section, the household goods mover shall refund the excess amount. The requirement to refund the excess amount does not apply to any gratuity that may have been collected by the household goods mover. 44-1615. Waiver prohibited; failure to comply with article A. The requirements and rights set forth in this article may not be waived. B. If a household goods mover fails to comply with any requirements prescribed in this article, the household goods mover is not eligible for the exemption set forth in section 44-1614. 44-1616. Lawful collection of monies Notwithstanding any provision of this article, a household goods mover is entitled to pursue any lawful means to collect an amount properly due from a consumer after the household goods mover has finished delivering and unloading the household goods at the moving destination. 44-1621. Definitions In this article, unless the context otherwise requires: 1. "Designee" means a local law enforcement agency designated in writing by a county sheriff to perform designated duties specified in this article on behalf of the sheriff. 2. "Identification document" means a valid driver license, a valid nonoperating identification license, a valid armed forces identification card or any other valid government issued photo identification. 3. "Loan" means advancing money on the security of pledged goods or purchasing tangible personal property on the condition that it may be redeemed or repurchased by the seller for a fixed or variable price within a fixed or variable period of time. 4. "Local law enforcement agency" means the chief of police, the police department or the town marshal, if applicable to a city or town, or the county sheriff, the sheriff's designee or the county sheriff's department, if applicable to a county. 5. "Maturity date" means the date specified on the pawn ticket by which the pledged goods must be redeemed or the pawn ticket must be renewed. 6. "Misrepresentation" means a false or misleading representation made by a person with an intent to deceive or defraud. 7. "Omission" means a failure to include or to take notice of or the leaving out of pertinent information by a person with an intent to mislead. 8. "Pawn ticket" means the actual executed document that records the pawn transaction and describes the conditions of the loan agreement between the pawnbroker and pledgor. 9. "Pawn transaction" means either the act between the pawnbroker and a person pledging tangible personal property or extending credit on the security of pledged goods or the act of purchasing tangible personal property with an express or implied agreement or understanding that it may be redeemed or repurchased by the seller for a fixed or variable price within a fixed or variable period of time, except that a good faith outright purchase of tangible personal property is not a pawn transaction. 10. "Pawnbroker" means a person who is engaged in the business of advancing money on the security of pledged goods or is engaged in the business of purchasing tangible personal property on the condition that it may be redeemed or repurchased by the seller for a fixed or variable price within a fixed or variable period of time. 11. "Pawnshop" means the location or premises at which a pawnbroker is licensed to regularly conduct the pawnbroker's business. 12. "Pledged goods" means tangible personal property which is deposited with or otherwise actually delivered into the possession of a pawnbroker in the course of the pawnbroker's business in connection with the pawn transaction. 13. "Pledgor" means the person leaving the personal property with the pawnbroker and executing the pawn ticket. 14. "Redeem" or "redemption" means the act of the pledgor or the pledgor's agent of retrieving and paying in full all charges and fees for the pledged goods left with the pawnshop. 15. "Reportable transaction" means any transaction conducted by a pawnbroker in which merchandise is received through a pawn, purchase, trade or consignment. 16. "Transaction date" means the initial date of the reportable transaction. 44-1622. Pawn tickets; requirements A. All pawn transactions must be evidenced by a pawn ticket that is issued at the time of the pawn transaction. B. A pawn ticket shall include, at a minimum, all of the following: 1. The name, address and telephone number of the pawnshop and pledgor. 2. The birth date and physical description of the pledgor, including height, weight and hair and eye color. 3. The number and type of the identification document presented by the pledgor. 4. A listing of the articles left in the possession of the pawnbroker. 5. The date of the pawn transaction. 6. The maturity date of the pawn transaction, which shall be set forth in at least twelve point type. 7. The principal amount of the pawn transaction. 8. The following statement in at least ten point type: "You are not obligated to redeem the pledged goods. The pledged goods will be forfeited to the pawnbroker after the maturity date unless the pledged goods are redeemed or you enter into a new pawn transaction for the pledged goods." 44-1623. Sale of pledged goods A. A pawnbroker shall not sell any items pledged to him as security for a pawn transaction until at least the day after the maturity date. B. All of a pledgor's right, title and interest in the pledged goods shall pass by operation of law to the pawnbroker, without recourse, on the day after the maturity date. 44-1624. Pawn transactions; reportable transactions A. The length of all pawn transactions is a minimum of ninety days, except that a longer term may be contracted for between the pawnbroker and the pledgor. B. A pawnbroker shall not enter into a pawn transaction or good faith outright purchase of tangible personal property with a person who is less than eighteen years of age. C. A pawnbroker shall not enter into a pawn transaction or good faith outright purchase of tangible personal property that has a manufacturer's serial number that has been removed, altered or obliterated. D. Before entering into a pawn transaction or good faith outright purchase of tangible personal property a pawnbroker shall require the pledgor or seller to identify himself with an identification document sufficient to verify the information required pursuant to section 44-1625. E. A pawnbroker shall retain any pledged goods at the pawnbroker's place of business or any other storage location approved by the applicable local law enforcement agency. F. The pawnbroker shall retain any property obtained by good faith outright purchase in its original form for twenty days after the original transaction date at the pawnbroker's place of business or other storage location approved by the applicable local law enforcement agency. G. The pawnbroker shall maintain at the pawnbroker's place of business records of all reportable transactions and pawn tickets and shall retain the records for at least two years after the date when the transaction occurred. The pawnbroker shall ensure that the records include accurate copies of all transaction receipts or pawn tickets. On request by a local law enforcement agent in the course of the agent's duties, the pawnbroker shall allow the agent to inspect the pawnbroker's receipts, pawn tickets or required alcohol, tobacco and firearms logs or to review any article received by the pawnbroker by pledge, purchase or trade. H. A pawnbroker shall produce the pawnbroker's register, shall exhibit all articles received by the pawnbroker in pledge or purchase or shall produce the pawnbroker's account of sales to a local law enforcement agency on the agency's request to inspect the register, articles or accounts of sales of the pawnbroker or on service of a search warrant or order issued by a judge or magistrate. 44-1625. Report to sheriff A. A pawnbroker shall make a true, complete and accurate report each day of each article the pawnbroker receives through a reportable transaction. The report shall be delivered within two business days to the sheriff or the sheriff's designee of the county in which the pawnbroker is licensed by mail, hand delivery or electronic means as approved by the sheriff or the sheriff's designee. For the purposes of this subsection "electronic means" means a computer diskette or modem. B. The pawnbroker shall make the report of each item received through a reportable transaction on the form provided or approved by the sheriff or the sheriff's designee. C. The report form provided or approved by the sheriff or his designee shall include at least all of the following: 1. The last, first and middle name of the pledgor or seller. 2. The permanent address and telephone number, if applicable, of the pledgor or seller. 3. The physical description of the pledgor or seller including height, weight, hair and eye color, sex, race and date of birth. 4. The number and type of the identification document presented by the pledgor or seller. 5. An accurate, legible description of each item pledged or sold, including the manufacturer's name, model number, serial number, caliber, size, type of item and any owner applied number, inscription or monogram. 6. The pawnbroker's name and address and the clerk's initials or identifying number. 7. The date and time of the initial pawn or purchase transaction. 8. The type of transaction and initial pawn ticket number. 9. A fingerprint of the pledgor or seller. D. The pledgor or seller shall sign the report and attest to the following statement that shall appear on the report in ten point bold type: All information in this report is complete and accurate. I am the owner of the goods described in this report or I am authorized to enter into this pawn or sale transaction on behalf of the owner of the goods described in this report. I understand that I will be guilty of a class 1 misdemeanor if the information in this report is not complete and accurate, if I am not the owner of the goods pledged or sold or if I am not authorized to enter into the pawn or sale transaction on behalf of the owner of the goods. 44-1626. Interest; fees; payment; military members A. A pawnbroker may charge or receive interest at a rate not exceeding thirteen per cent per month for the first two months and at a rate not exceeding eleven per cent per month thereafter. A pawnbroker shall prorate interest on a daily basis and shall not impose an additional charge if the pledgor agrees to pay a loan in monthly installments, except that interest for two months may be charged or received if the pledged goods are redeemed within two months of the pawn transaction. B. In addition to interest charged pursuant to subsection A of this section, a pawnbroker may charge and collect at redemption or renewal the following fees: 1. A fee that does not exceed five dollars for handling each firearm. 2. If the pledgor loses the pledgor's claim ticket, a fee that does not exceed seven dollars fifty cents. 3. An initial setup fee of not more than five dollars. 4. A storage fee that does not exceed five dollars per month or a portion of a month for each item of pledged goods, other than a vehicle as defined in section 28-101, that exceeds one cubic foot in volume. 5. A vehicle storage fee that does not exceed five dollars per day for each item of pledged goods that is a vehicle as defined in section 28-101. 6. A fee or charge equal to the amount of any fee, tax, imposition or assessment levied or imposed by any governmental agency in connection with or as a result of any reportable transaction. The pawnbroker may collect at the time of any reportable transaction any fee, tax, imposition or assessment that relates to a reportable transaction and that is imposed by a governmental agency. C. A pawnbroker shall not demand or require payment of a pawn ticket before the maturity date. D. If a pawnbroker receives a copy of military orders that indicates that a pledgor has been deployed as a member of the Arizona national guard, the United States armed forces reserves or the regular component of the United States armed forces and the member is serving on federal active duty, the pawnbroker must waive any unpaid interest charges and hold the pledged goods until sixty days after the military member returns from deployment. 44-1627. Licensing; requirements A. A person shall not act as a pawnbroker until licensed by the sheriff of the county in which the person regularly conducts business. B. A pawnbroker shall obtain a separate license for each pawnshop owned by that pawnbroker. C. A pawnbroker license may not be sold or transferred without the approval of the sheriff or the sheriff's designee. D. A pawnbroker shall not conduct business at a location other than a licensed location except for firearms transactions that are permitted by a federally licensed firearms dealer at an organized gun show. E. Every pawnbroker shall be a bona fide resident of this state. If a partnership, each partner shall be a bona fide resident of this state. If a corporation, it shall be a domestic corporation or a foreign corporation which has qualified to do business in this state. The corporation shall hold its pawnbroker license through an agent. F. The sheriff or the sheriff's designee shall require any person, other than a bank or licensed lending institution, having any interest, directly or indirectly, in a pawnshop to submit a full set of fingerprints, together with the applicable fingerprint processing fee, to the sheriff. The sheriff shall submit the fingerprints to the department of public safety for the purpose of obtaining a state and federal criminal records check pursuant to section 41-1750 and Public Law 92-544. The department of public safety may exchange this fingerprint data with the federal bureau of investigation. The sheriff shall forward the fee to the department of public safety. G. A corporation shall own the entire equitable interest in its license through an agent if the agent is otherwise qualified to hold a pawnbroker license. The agent is subject to the penalties prescribed for any violation of law relating to pawnbrokers. On the death, resignation or discharge of an agent of a corporation holding a pawnbroker license, the corporation shall promptly assign the license to another qualified agent selected by the corporation. H. The sheriff shall not issue a license to a person who, within one year before the application, has violated any provision of a previously issued pawnbroker license or has had a license revoked. The sheriff shall not issue to or renew a license of a person who, within five years before the application, has been convicted of a felony involving trafficking in stolen property, fraudulent schemes, forgery, theft, extortion or conspiracy to defraud or a felony involving moral turpitude. The sheriff shall not issue to or renew a license of a corporation unless it has on file with the sheriff of the county in which the license is issued a list of its officers and directors and any stockholders who own ten per cent or more of the corporation. The sheriff shall not issue to or renew a license of a corporation if any of its officers or directors or any stockholder who owns ten per cent or more of the corporation has within five years been convicted of a felony involving trafficking in stolen property, fraudulent schemes, forgery, theft, extortion or conspiracy to defraud or a felony involving moral turpitude. I. The sheriff shall not issue a license to a person or corporation that has knowingly made any false statements or material misrepresentations in the license application. J. A person shall not use the word "pawn", "pawnshop" or "pawnbroker" in its business name, on any sign or in any advertisement unless the person is licensed as a pawnbroker pursuant to this article. 44-1628. Revocation and suspension A. After notice and an opportunity for a hearing in accordance with title 41, chapter 6, article 6, the sheriff may suspend any license for a period of not more than thirty days for acts that demonstrate a pattern of misrepresentation or wilful omissions or a violation of or noncompliance with any provision of this article other than a violation or noncompliance resulting from a bona fide error that occurred provided that the pawnshop maintains procedures reasonably adapted to avoid the occurrence of bona fide errors. The sheriff or the sheriff's designee shall provide procedures for the redemption of pledged goods and the renewal of pawn transactions on maturity during a period when a license is suspended. For the purposes of this subsection, "bona fide error" includes clerical, calculation, computer malfunction, programming and printing errors and other similar errors. B. The sheriff may revoke or refuse to renew a license if more than two suspensions of the license have occurred within the preceding twelve calendar months or if the licensee has been convicted of a felony involving trafficking in stolen property, fraudulent schemes, forgery, theft, extortion or conspiracy to defraud or a felony involving moral turpitude. C. Decisions of the sheriff or the sheriff's designee are subject to judicial review pursuant to title 12, chapter 7, article 6. 44-1629. Fees; penalty A. A person applying for a new pawnbroker license shall pay an application fee of one thousand dollars to the sheriff of the county in which the pawnbroker is to be licensed. B. Each licensed pawnbroker shall pay a renewal fee of five hundred dollars annually to the sheriff of the county in which the pawnbroker is licensed. The annual renewal fee is due not later than January 31. C. A licensee who fails to renew his license within thirty days after the payment of the license fee is due is subject to a penalty of ten per cent of the license fee which is payable with the license fee. 44-1630. False representation A person who gives false information or provides false representation as to the person's true identity or as to the person's ownership interest in property in order to receive monies or other valuable consideration from a pawnbroker, second hand dealer, scrap metal dealer or dealer in precious metals and who receives monies or other valuable consideration from a pawnbroker, second hand dealer, scrap metal dealer or dealer in precious metals is guilty of false representation. 44-1631. Violations; classification A. A person who knowingly violates section 44-1622 is guilty of a class 1 misdemeanor. B. A person who violates section 44-1623, 44-1624 or 44-1625, section 44-1626, subsection B, C or D or section 44-1630 is guilty of a class 1 misdemeanor. C. A person who knowingly charges and collects interest at a rate that is greater than permitted under section 44-1626, subsection A is guilty of a class 6 felony. D. A person who violates section 44-1627 is guilty of a class 6 felony. 44-1632. Pawnshop hours; city or town ordinance A city or town may adopt an ordinance prohibiting the operation of pawnshops from 12:00 a.m. to 6:00 a.m. 44-1641. Definitions In this article, unless the context otherwise requires: 1. "Business records" means records of any purchase, trade, barter or other transaction that involves the receipt of scrap metals and that is made in the ordinary course of business at or near the time of the purchase, trade, barter or transaction, including receipts, books or similar records as prescribed by section 44-1642, but does not include correspondence, tax returns or financial statements. 2. "Department" means the department of public safety. 3. "Ferrous metals": (a) Means those metals that will attract a magnet. (b) Includes a scrap vehicle. 4. "Industrial account" means either: (a) A person or business entity that files or is required to file monthly returns for that person's or entity's transaction privilege tax licenses and that is reasonably expected to generate the type of scrap metals it sells. (b) A governmental entity that sells scrap metal to a scrap metal dealer. 5. "Scrap metal dealers" means each person or business entity, including all employees of the person or business entity, except automotive recyclers that are licensed pursuant to title 28, chapter 10 and whose primary business is the dismantling, selling or disposing of parts or accessories of motor vehicles, engaged in the business of purchasing, trading, bartering or otherwise receiving secondhand or castoff material of any kind that is commonly known as scrap metal. 6. "Scrap metals" includes insulated and uninsulated metallic cables and scrap vehicles. 7. "Scrap vehicle" means a vehicle that has been reported to the national vehicle title information system and that has been flattened, crushed, baled or logged so that the vehicle is less than fifty percent of its original volume, is no longer the vehicle that is described by the certificate of title and is sold for purposes of scrap metal only. 44-1641.02. Law enforcement; theft notification website All law enforcement in this state shall be registered on a free theft notification website that allows law enforcement to send detailed descriptions of stolen items to recycling operations and other law enforcement within at least a one hundred mile radius of a theft. The website must allow scrap metal dealers to alert law enforcement when the dealers are offered suspicious materials. 44-1641.03. Registration; application; information disclosed on website A. A person must register pursuant to this article to conduct business as a scrap metal dealer in this state. B. A person shall submit information for registration to the department in a form prescribed by the department. The information shall include all of the following: 1. The name and address of the scrap metal dealer. 2. The name of each person who owns at least ten percent of a scrap metal dealer business. 3. Full personal identification information on each owner of a scrap metal dealer business including a copy of each owner's driver license. 4. The location of each principal office and branch office at which the scrap metal dealer will conduct business in this state. 5. The name and address of any wholly owned subsidiary of the scrap metal dealer. C. A registered scrap metal dealer does not need to separately register either of the following: 1. Any of its branch offices. 2. A wholly owned subsidiary of the registrant. D. The department must post the information that is submitted pursuant to subsection B, paragraphs 1 and 4 of this section on the department's website. 44-1641.04. Registration; fees A. A scrap metal dealer must provide the information prescribed by section 44-1641.03 to the department every two years. B. The department shall charge and collect fees as determined by the director. It is the intent of the legislature that fees charged and collected by the department shall be to cover the costs of registering the scrap metal dealers pursuant to section 44-1641.03 and this section. 44-1641.05. Items required to be maintained at place of business; city or county ability to recover costs; violation; civil penalty A. A registered scrap metal dealer must keep the following at each place of business: 1. Proof of registration that is issued by the department. 2. A statement indicating that the scrap metal dealer has registered on a free theft notification website that allows law enforcement to send detailed descriptions of stolen items to recycling operations and other law enforcement within at least a one hundred mile radius of a theft. The website must allow scrap metal dealers to alert law enforcement when the dealers are offered suspicious materials. 3. An affidavit signed by the scrap metal dealer that states that the person is in compliance with this article. 4. A questionnaire that the scrap metal dealer must prepare every two years to show compliance with this article. B. The scrap metal dealer must maintain and make available the items prescribed by subsection A of this section for inspection by law enforcement. If after inspection law enforcement determines that the scrap metal dealer is in violation of this section, law enforcement must submit a notice of violation to the scrap metal dealer. Except as otherwise provided in this section, law enforcement shall reinspect the scrap metal dealer's place of business not earlier than seven days after the scrap metal dealer receives the notice of violation. After reinspection, if law enforcement determines that the scrap metal dealer is in violation of this section, law enforcement may conduct a subsequent reinspection without a minimum waiting period. C. If a person violates this section, the person is subject to the following: 1. For a first violation, a civil penalty of $500. 2. For a second violation, a civil penalty of $2,000 and a licensing jurisdiction shall suspend or revoke the person's business license or, if a business license is not required to operate a business, the jurisdiction shall order the suspension or permanent cessation of the person's business operations. 3. For a third or subsequent violation, a civil penalty that is $2,000 more than the previous civil penalty imposed on the person for violating this section. 4. Any costs associated with the enforcement of this article as determined by a city or county. D. Failure to comply with this section may result in the immediate suspension of all scrap metal transactions unless one of the following applies to the business: 1. The business has been previously registered as a scrap metal recycler. 2. The business has a local business license. 44-1642. Records of purchase; transaction limitations; age requirement for scrap metal seller; used catalytic converter retainment period; exception A. Every scrap metal dealer shall keep on the business premises a book or other similar record legibly printed or written in ink, in the English language of each transaction involving the receipt of scrap metal. The record of each receipt of scrap metal shall include the following information: 1. The date, time and place of the transaction. 2. A photograph and an identifying description and weight of the specific scrap metal received. 3. The dollar amount of the transaction. 4. Except as otherwise provided in this paragraph, the seller's name, physical description including gender, height, weight, race and eye and hair color, physical address, date of birth and signature and a photocopy of a current driver license, nonoperating identification license issued pursuant to section 28-3165 or photo identification card issued by a tribal government or the United States military. The scrap metal dealer must validate the recorded information by using the seller's current driver license, nonoperating identification license issued pursuant to section 28-3165 or photo identification card issued by a tribal government or the United States military. This paragraph does not apply to a seller who is exclusively selling aluminum beverage containers. 5. The seller's transaction privilege tax number, if applicable. 6. The number and state of issuance of the license on the vehicle used to deliver the scrap metal. 7. A photograph, video record or digital record of the seller involved in the transaction. 8. A right index fingerprint of the seller. B. The record and entries shall be retained in a book or similar record at the business premises for one year after making the final entry of any transaction and shall be retained either at the business premises or any other reasonably available location for an additional year. A scrap metal dealer's business premises, business records relating to scrap metal transactions, including a book or similar record prescribed by this section, and business inventory shall be open during regular business hours for reasonable inspection by a peace officer. Before an inspection shall take place, a peace officer shall first identify himself and the purpose for the inspection to the scrap metal dealer, dealer's manager or other responsible person and comply with all reasonable and customary safety requirements of that scrap metal dealer for the business premises inspected. The scrap metal dealer may require the peace officer to sign an inspection log that includes the officer's name and serial or badge number and the time, the date and the purpose for the inspection. C. A scrap metal dealer shall not provide payment for any scrap metal on site at the time of the scrap metal transaction. Payment shall be made by mailing a check or money order to a physical address provided by the seller through a current driver license or other identification prescribed in subsection A, paragraph 4 of this section. The check or money order shall be made payable to the business name for an industrial account. This subsection: 1. Except as provided in paragraphs 2, 3 and 4 of this subsection, applies only to industrial accounts, copper and aluminum wire with a diameter of at least three-eighths of an inch. 2. Except as provided in paragraph 3 or 4 of this subsection, applies to all scrap metal transactions of $300 or more. 3. Does not apply to industrial accounts if the industrial accounts annually preregister employees who are authorized sellers on behalf of the industrial accounts. 4. Applies to all transactions involving air conditioner cooling coils, including industrial accounts, except that for these transactions a scrap metal dealer may give a seller on site a check made payable to an industrial account. D. A scrap metal dealer shall provide a receipt to the seller on site at the time of the scrap metal transaction, for every transaction, and shall include the following information: 1. The date, time and place of the transaction. 2. An identifying description and weight of the specific scrap metal received. 3. The dollar amount of the transaction. E. A scrap metal seller may not conduct a series of transactions for one vehicle load of scrap metal to avoid the requirements of this section. F. A scrap metal seller shall not participate in more than one cash transaction per day for scrap metal. G. A scrap metal seller shall be at least sixteen years of age. H. If a scrap metal dealer purchases a used catalytic converter or any nonferrous parts of a catalytic converter, the scrap metal dealer shall retain the used catalytic converter or the nonferrous parts of the catalytic converter in their original form for at least seven days after the original purchase date at the scrap metal dealer's place of business. I. This section does not apply to transactions involving materials consisting of a metal product in its original manufactured form that is composed of not more than twenty percent by weight of nonferrous metal. 44-1642.01. Prohibited scrap metal transactions; exceptions; violation; classification A. A scrap metal dealer shall not knowingly purchase the following types of scrap metal: 1. Metal manhole covers that are used to cover street or alley service personnel access entrances to municipal sewers and storm drains. 2. Brass or bronze valves or fittings that are commonly used on structures for access to water for the purpose of extinguishing fires. 3. Brass or bronze commercial potable water backflow preventer valves that are valves commonly used to prevent backflow of potable water into municipal domestic water service systems from commercial structures. 4. Water meters that are used for measuring the use and consumption of domestic water. 5. Aluminum trench shoring that is commonly used for shoring below ground trenches and excavations for constructing buildings and structures. 6. Aluminum loading ramps that are manufactured and used for loading motor vehicles for hauling the motor vehicles. 7. Aluminum or stainless steel beer or malt beverage kegs that are commonly used by brewers or producers for selling and transporting beer or malt beverages. 8. Catalytic converters or any nonferrous parts of a catalytic converter. For the purposes of this paragraph, "catalytic converters" means motor vehicle exhaust system parts that are used for controlling the exhaust emissions from motor vehicles and that contain a catalyst metal. 9. Metal municipal storm grates that are used to allow for water drainage from municipal streets or alleys. B. This section does not apply to or prohibit the purchase or possession of the types of items that are listed in subsection A of this section and that are acquired in transactions with industrial accounts, with other scrap metal dealers or after the scrap metal is authorized for release by a peace officer of that jurisdiction if the scrap metal dealer keeps records pursuant to section 44-1642 and electronically reports the transactions pursuant to section 44-1644. C. A person who violates this section is guilty of a class 1 misdemeanor. 44-1642.02. Scrap vehicle purchase; applicable law Notwithstanding any other law, only title 28 governs the purchase by a scrap metal dealer of a vehicle as defined in section 28-101 solely for the purpose of processing the vehicle into a scrap vehicle or into prepared grades of scrap metal. 44-1643. Violation; classification A scrap metal dealer who fails in any respect to keep a book or similar record prescribed by section 44-1642 or to set out in a book or similar record any matter this article requires or who refuses, upon demand of any peace officer of this state, to exhibit a book or similar record, business record, receipt or transaction record, or who knowingly destroys a book or similar record within two years after making the final entry of any transaction or who otherwise fails to comply with this article, is guilty of a class 1 misdemeanor. 44-1644. Report; exemption; violation; classification A. Within twenty-four hours after receiving scrap metals, except from an industrial account or a scrap metal dealer, for which a record is required to be kept by section 44-1642, a scrap metal dealer shall electronically submit to the department a record of the receipt of the scrap metals. The record shall include the following information: 1. The date, time and place of the receipt of the scrap metal. 2. An identifying description of the specific scrap metal received, including: (a) The weight and amount of the transaction or other consideration given. (b) Unique identifying numbers and markings on catalytic converters as defined in section 44-1642.01, subsection A, paragraph 8 or any nonferrous parts of a catalytic converter. 3. A description of the person delivering the metal to the scrap metal dealer including the person's gender, height, weight, race and hair and eye color, address and date of birth and a photocopy of a current driver license, nonoperating identification license issued pursuant to section 28-3165 or photo identification card issued by a tribal government or the United States military. 4. The number and state of issuance of the license on the vehicle used to deliver the scrap metal. B. A scrap metal dealer shall electronically submit to the department a record of the receipt of each purchase of a used catalytic converter as defined in section 44-1642.01, subsection A, paragraph 8 or any nonferrous parts of a catalytic converter from an industrial account or another scrap metal dealer. The report shall include: 1. The name, address and transaction privilege tax number of the seller. 2. The date, time and place of the transaction. 3. The number of catalytic converters purchased. 4. Any unique identifying numbers and markings on catalytic converters or any nonferrous parts of a catalytic converter. C. The department shall establish by rule electronic submission standards. The submission standards shall allow the submission of the information in an electronic format that is compatible with the output format of not less than four of the record keeping software programs currently in use in the scrap metal industry in this state in a manner that will allow the information to be electronically merged with the department's database. A scrap metal dealer that submits information to the department pursuant to this section is not required to submit the same information to a local law enforcement agency. D. The department shall make the information submitted pursuant to this section available to local law enforcement agencies over the internet and shall provide for training and procedures to allow law enforcement personnel to access the information provided electronically for law enforcement purposes. E. For copper, aluminum wire with a diameter of at least three-eighths of an inch and transactions with a value over $100, a scrap metal dealer shall hold in its custody in the same size, shape and condition in which the scrap metal was received on its business premises any scrap metal received in a reportable transaction for seven days after filing the report prescribed by subsection A of this section. F. Subsection E of this section does not apply to transactions with industrial accounts, other scrap metal dealers or purchases by scrap metal dealers of used aluminum beverage containers or ferrous metals and of scrap metal authorized for release by a peace officer of that jurisdiction. G. A person who fails to file a report prescribed by this section is guilty of a class 1 misdemeanor. 44-1645. Applicability; state preemption This article applies throughout this state and counties, cities and towns may not enact or enforce ordinances, rules or regulations that conflict with this article. Counties, cities and towns may enact ordinances, rules or regulations that regulate scrap metal dealers and that are not in conflict with this article. 44-1646. Burned metallic wire; aluminum wire; copper wire; transaction restrictions; applicability A. A scrap metal dealer shall not purchase or receive metallic wire that was burned in whole or in part to remove insulation unless the scrap metal dealer receives from the scrap metal seller written evidence identifying the person who delivers the wire to the scrap metal dealer that includes evidence that the wire was lawfully burned. B. A scrap metal dealer shall not accept aluminum wire with a diameter of 3/8 inch or more or any copper wire that has the insulation removed and shall not remove the insulation from the wire until after the seven-day period prescribed by section 44-1644, subsection E. C. This section does not apply to transactions with all industrial accounts or to transactions between scrap metal dealers. 44-1647. Department of public safety; transaction form The department of public safety shall design and make available a seller and transaction form that may be used by a scrap metal dealer who must report pursuant to section 44-1644. 44-1648. Preemption; power of local authorities; city, town or county licensing system A. The state legislature determines that the registration of scrap metal dealers is a matter of statewide concern. The power to register scrap metal dealers is preempted by this state. B. Sections 9-500.38 and 11-269.16 do not affect a city's, town's or county's power to enforce laws relating to business licensing of scrap metal dealers. This article does not affect a city's, town's or county's power to enforce laws relating to business licensing. Sections 9-500.38 and 11-269.16 and this article do not apply to a city's, town's or county's system for licensing a scrap metal dealer if the licensing system includes background checks or identification and fingerprinting of the owners of the scrap metal dealer. C. A scrap metal dealer's license that is current and in good standing with a city's, town's or county's licensing system before September 13, 2013 is in compliance with that licensing system and the city, town or county may not require the scrap metal dealer to reapply for licensure in order to be in compliance with the city's, town's or county's licensing system unless there is an event or circumstance that requires an amendment or filing pursuant to the city's, town's or county's licensing system's requirements. 44-1651. Definitions In this article, unless the context otherwise requires: 1. "Bucket shop" means any place wherein dealing in futures is carried on as defined in this section. 2. "Futures," "dealing in futures," and "future contracts" mean: (a) A sale or purchase or contract to sell or offer to sell or purchase any copper, gold, silver, lead, cotton, grain or meat or any stocks or bonds of any corporation, to be delivered in the future when it is not the bona fide intention of the party being prosecuted, at the time the transaction was made, that the subject matter of the transaction should be delivered and paid for as specified in such transaction. (b) Any sale, purchase, offer or contract where it was the intention of the party being prosecuted at the time of making the transaction, that it should, or at the option of either party might be, settled by paying or receiving a margin, or profit on such contract. (c) Any purchase, sale or offer of sale or purchase, or contract for future delivery of anything set forth in this section, on, by or through any exchange or board of trade, the rules, by-laws, customs or regulations of which permit such transaction to be settled or closed by delivery or tender of any grade of the thing specified in such transaction, other than the grade upon which the price is based in such transaction, at any price other than the actual price for spot delivery of such other grade at the time and place of delivery or tender. 44-1652. Operating bucket shop prohibited; classification A person who carries on or conducts a bucket shop is guilty of a class 2 misdemeanor. 44-1653. Owner or manager of property permitting bucket shop; classification An owner or person managing or controlling property who knowingly rents or leases such property to be used as a bucket shop, or knowingly permits the property to be so used, is guilty of a class 2 misdemeanor. 44-1654. Telegraph or telephone company permitting use of instrument in bucket shop; classification A telegraph or telephone company or any agent thereof which knowingly permits a telegraph or telephone wire or instrument to remain in a bucket shop or knowingly permits the wires, instruments or equipment of the telegraph or telephone company to be used by a person operating a bucket shop, whether or not such equipment or instruments are leased by the person illegally using them, is guilty of a petty offense. Each day shall constitute a separate offense. 44-1655. Making or offering to make future contract; classification; defense A. A person who makes or offers to make for himself a future contract is guilty of a class 3 misdemeanor. B. It may be shown in defense of a prosecution under this section that the transaction out of which the prosecution arose was a "hedging" contract between parties in this state and parties without the state, and if such contract was made wholly or in part by a message sent by telegraph or telephone, that such message was delivered to the person sending it by the defendant himself, and not through or by any broker or agent, and that the person rendering the service was a common carrier, exclusively engaged as a common carrier with no connection with or interest in such transaction other than the transmission of the message and receiving the charges therefor which are not in excess of the usual rate for commission messages between the points of transmission and receipt of such message. 44-1656. Acting or offering to act as agent or broker to make future contract; classification A person who acts or offers to act as the agent or broker of any person in making or offering to make a future contract is guilty of a class 2 misdemeanor. 44-1657. Facts constituting prima facie proof of future contract If in a prosecution it is a material issue whether or not the rules, regulations, by-laws or customs of an exchange or board of trade on, by or through which a contract or offer for future delivery was made, permitted such contract or transaction to be settled or closed by delivery or tender of any grade of the subject matter specified in the contract or transaction, other than the grade upon which the price was based in the transaction, or at any price other than the actual price for spot delivery of such other grade or grades, at the time and place of the delivery or tender, proof that the delivery or tender was made or offered or pretended to be made by, through or upon any exchange or board of trade constitutes a prima facie case for the state. 44-1658. Burden of proof in prosecution for making future contract In a prosecution under this article the burden shall be on the defendant to prove that the subject matter contracted for or offered to be contracted for was in fact delivered in accordance with the terms of the contract or that it was the bona fide intention of the defendant at the time of making the contract, that the subject matter contracted for should be so delivered, if it is a material issue, and the court shall so instruct the jury. 44-1659. Injunctive remedy against bucket shop The habitual, actual, threatened or contemplated use of any premises, place or building, telegraph or telephone wires or instruments in violation of the pr