03/20/2014 01:30 PM House FINANCE

HOUSE BILL NO. 305                                                                                                            
                                                                                                                                
     "An Act repealing the requirement that a junk dealer                                                                       
     or metal scrapper obtain a license."                                                                                       
                                                                                                                                
1:36:31 PM                                                                                                                    
                                                                                                                                
Co-Chair Stoltze  discussed that  a CS for  HB 305  had been                                                                    
adopted in a previous meeting.                                                                                                  
                                                                                                                                
Representative Holmes MOVED to ADOPT Amendment 1:                                                                               
                                                                                                                                
     Page 1, lines 1 - 2:                                                                                                       
          Delete "relating to the crime of criminal                                                                             
     mischief for removing metal from property;"                                                                                
                                                                                                                                
     Page 3, line 17, through page 4, line 6:                                                                                   
          Delete all material.                                                                                                  
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 4, lines 8-11:                                                                                                        
          Delete all material.                                                                                                  
                                                                                                                                
     Renumber the following bill section accordingly.                                                                           
                                                                                                                                
Co-Chair Stoltze OBJECTED for discussion.                                                                                       
                                                                                                                                
Representative Holmes explained  the amendment. She referred                                                                    
to  prior  discussion  related   to  new  criminal  language                                                                    
included in the  legislation; the bill devised a  new way to                                                                    
charge  criminal mischief  in the  third degree  specific to                                                                    
damaging  property  and metal  theft.  She  noted that  some                                                                    
concern  had been  voiced  by the  Department  of Law  (DOL)                                                                    
related  to the  language. She  had consulted  with DOL  and                                                                    
with Sergeant  Pickerel at  the Anchorage  Police Department                                                                    
(APD). Both  entities had  assured her  that the  items were                                                                    
currently felonies  and were charged  as theft  and criminal                                                                    
mischief in  the third degree;  therefore, the  related bill                                                                    
section  was  unnecessary.  Her   office  had  checked  with                                                                    
utilities  representatives, associated  general contractors,                                                                    
and  scrap dealers;  all parties  agreed  that the  criminal                                                                    
language  was not  needed. The  amendment  would delete  the                                                                    
criminal language and changed the bill title accordingly.                                                                       
                                                                                                                                
1:38:49 PM                                                                                                                    
                                                                                                                                
Co-Chair  Stoltze  asked  about the  bill  sponsor's  desire                                                                    
related to  Amendment 1. Representative Holmes  relayed that                                                                    
she had checked with the sponsor's office.                                                                                      
                                                                                                                                
Co-Chair   Stoltze  regarded   the   sponsor's  nodding   as                                                                    
approval.                                                                                                                       
                                                                                                                                
Representative  Holmes relayed  that the  sponsor considered                                                                    
the proposed change to be a friendly amendment.                                                                                 
                                                                                                                                
Co-Chair Stoltze  clarified that  DOL and  APD had  made the                                                                    
amendment suggestion.  Representative Holmes  responded that                                                                    
the section had intended  to help prosecute crimes. Sergeant                                                                    
Pickerel worked closely on the  types of crime listed in the                                                                    
legislation. Her  office had  contacted the  Anchorage chief                                                                    
of police office and the mayor's office.                                                                                        
                                                                                                                                
Co-Chair  Stoltze WITHDREW  his  OBJECTION.  There being  NO                                                                    
further OBJECTION, Amendment 1 was ADOPTED.                                                                                     
                                                                                                                                
Co-Chair Stoltze  discussed that the fiscal  note would need                                                                    
to be adjusted, but that it would remain a zero note.                                                                           
                                                                                                                                
1:41:47 PM                                                                                                                    
                                                                                                                                
Vice-Chair Neuman pointed  to page 2, and  read from Section                                                                    
7 of the bill:                                                                                                                  
                                                                                                                                
     (7) a  description, including  weight and  quantity, of                                                                    
     the  scrap metal  purchased by  the  dealer; the  scrap                                                                    
     metal  dealer shall  determine the  weight  by using  a                                                                    
     scale that complies with the  state standards of weight                                                                    
     and measure established under AS 47.75;                                                                                    
                                                                                                                                
Vice-Chair  Neuman assumed  that the  section would  require                                                                    
Department  of  Transportation   and  Public  Facilities  to                                                                    
verify that all scales are accurate.                                                                                            
                                                                                                                                
Co-Chair Stoltze assumed weights  and measures was currently                                                                    
located within DOT.                                                                                                             
                                                                                                                                
Vice-Chair Neuman expressed intent  to work with the sponsor                                                                    
to clarify several issues in  the bill. He addressed page 3,                                                                    
Section  8  pertaining  to  definitions.  He  spoke  to  the                                                                    
inclusion  of  catalytic  converter materials  and  surmised                                                                    
that cars  could fall under  the description of  junk metal.                                                                    
He  discussed that  hauling old  cars  as a  service to  the                                                                    
community  would   require  them  to  be   weighed  and  for                                                                    
transaction records to  be kept for five  years. He recalled                                                                    
visiting  a scrap  metal dealer  in Dutch  Harbor the  prior                                                                    
year; the family run business  required significant work and                                                                    
brought in  small financial return.  He thought  the records                                                                    
requirements were  burdensome for some small  businesses. He                                                                    
understood  and  agreed with  the  bill's  intent to  thwart                                                                    
theft. However,  he had other  issues with the bill  that he                                                                    
intended to continue to discuss with the sponsor.                                                                               
                                                                                                                                
Co-Chair Stoltze understood Vice-Chair Neuman's point.                                                                          
                                                                                                                                
1:44:38 PM                                                                                                                    
                                                                                                                                
Representative Edgmon  discussed that  the City  of Unalaska                                                                    
had  an ordinance  to clean  up scrap  and junk  material; a                                                                    
year-round barge  service allowed the community  to ship the                                                                    
materials out in bulk. He  noted that the business mentioned                                                                    
by Vice-Chair Neuman had done  significant work. He wondered                                                                    
if the  bill's transaction  requirements mentioned  by Vice-                                                                    
Chair  Neuman would  only apply  to commercial  transactions                                                                    
and not to junked car or non-commercial transactions.                                                                           
                                                                                                                                
Co-Chair  Stoltze noted  that the  bill referred  to dealers                                                                    
and people selling the scrap metal.                                                                                             
                                                                                                                                
Representative Holmes  was sensitive  to concerns  raised by                                                                    
Vice-Chair  Neuman;  however,  the   bill  did  not  require                                                                    
records  unless sales  totaled $100  or  more. She  believed                                                                    
that the  scrapping of  items for  a small  or zero  sum was                                                                    
exempt from the legislation.                                                                                                    
                                                                                                                                
Representative Thompson  spoke to the  legislature's ability                                                                    
to locate a problem and  overdo the solution. He opined that                                                                    
the  five-year  record  keeping   was  cumbersome  to  small                                                                    
businesses.  He  wondered  how large  the  problem  was;  he                                                                    
pointed to backup material in  members' packets showing many                                                                    
cases  where criminals  had been  caught.  He supported  the                                                                    
bill, but he wished it  had remained a one-line repealer. He                                                                    
believed it went too far.                                                                                                       
                                                                                                                                
1:47:17 PM                                                                                                                    
                                                                                                                                
Representative Costello  MOVED to  REPORT CSHB  305(FIN) out                                                                    
of  committee   with  individual  recommendations   and  the                                                                    
accompanying fiscal notes.                                                                                                      
                                                                                                                                
There being NO OBJECTION, CSHB  305(FIN) was REPORTED out of                                                                    
committee  with "no  recommendation" and  with one  new zero                                                                    
fiscal note from the Department  of Revenue and one new zero                                                                    
fiscal note from the Department of Corrections.                                                                                 
                                                                                                                                
Co-Chair Stoltze the schedule for the following day.