Legislature(2013 - 2014)SENATE FINANCE 532
04/01/2014 01:30 PM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB178 | |
| HB305 | |
| HB297 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| = | SB 178 | ||
| = | HB 305 | ||
| = | HB 297 | ||
CS FOR HOUSE BILL NO. 305(FIN)
"An Act relating to the records of metal scrappers;
repealing the requirement that a junk dealer or metal
scrapper obtain a license; and providing for an
effective date."
TOM WRIGHT, STAFF, REPRESENTATIVE MIKE CHENAULT, read from
a sponsor statement:
HB 305 as originally introduced proposed to repeal a
pre-statehood requirement for junk dealers and metal
scrappers to obtain a state license. Research could
not identify any licenses which were issued under the
statute and therefore, it was felt the statute served
no public purpose and should be repealed. Although the
original intent of the legislation was to eliminate an
unneeded law from the books, the process led to the
identification of an area where Alaska state law was
deficient and needed improvement.
The junk dealer statute was discovered during
discussions by a working group of contractors,
utilities and scrap metal dealers looking for ways to
deter metal theft in Alaska. Due to the higher value
of metals such as copper, metal theft has been
increasing nationwide. However, Alaska remains as the
only state without a law specifically targeting metal
theft.
Thieves often target utilities, construction sites,
and other locations with significant volumes of
copper. In some cases, the value of the scrap metal
stolen pales in comparison to the damage done by
thieves. For utilities, theft can result in life
threatening situations, service outages for many
customers, and be very costly to repair. For
construction sites, significant costs and project
delays can result from theft.
The main goal of metal theft laws is to provide law
enforcement with additional tools to track down metal
thieves as well as provide a deterrent to the crime by
closing down avenues to sell stolen property. In many
cases, other states have adopted very comprehensive
laws, which are costly to implement as well as
burdensome to businesses. This bill takes a different
approach. Through the input of a those impacted
(utilities, contractors, law enforcement, and scrap
metal dealers), the legislation implements those tools
the working group felt would be most effective in a
manner which add as little burden as possible.
Specifically, the bill adds new recording keeping
requirements on the sale of scrap metal. Basic
information includes date, time, location, and value
of the metal as well as information about the seller
including the name, address, driver's license number,
and vehicle plate number. The legislation also
requires the seller to sign a statement that the metal
is not stolen.
2:31:43 PM
Co-Chair Meyer clarified that the committee was working
with version R of the bill.
Mr. Wright replied in the affirmative.
Senator Dunleavy understood that the bill would not prevent
someone from selling wire or metal to someone else.
Mr. Wright replied that it would not.
Senator Dunleavy thought that there could be a way around
the law.
Mr. Wright agreed. He surmised that there were ways to
circumvent nearly any law.
2:33:01 PM
Co-Chair Meyer asked how many junk dealers or scrappers
there were in the state.
Mr. Wright deferred the question to available experts in
the field.
Co-Chair Meyer wondered if a scrappers/junk dealer license
was the same as business license.
Mr. Wright replied in the affirmative.
2:33:33 PM
LOUISE BRAY, SHNITZER STEEL, TACOMA, WASHINGTON (via
teleconference), spoke in support of HB 305. She felt that
the bill was a first small step to combat metal theft and
to provide additional tools for law enforcement to track
thieves. She believed that there would always be non-
compliant dealers, but once the law was implemented those
dealers would be easier to locate.
2:36:47 PM
PHIL STEYER, CHUGACH ELECTRICAL ASSOCIATION, ANCHORAGE (via
teleconference), testified in support of HB 305. He stated
that the Chugiak Electrical Association had been the victim
of theft and property damage. He said that the cost of
repairs for the damage and lost business was expensive
inconvenient.
2:39:19 PM
JOHN MACKINNON, EXECUTIVE DIRECTOR, ALASKA ASSOCIATION OF
GENERAL CONTRACTORS, ANCHORAGE (via teleconference),
testified in support of HB 305. He stated that the Alaska
Association of General Contractors' hoped that the
legislation would make to more difficult for thieves to
sell scrap metal without adding more regulations or
requirements for dealers.
2:41:17 PM
AL BARRETTE, SELF, FAIRBANKS (via teleconference), spoke
against the reporting requirements in HB 305. He questioned
the constitutionality of the portion of the bill that would
require that records be kept available for inspection by
law enforcement during normal business hours. He opined
that he should have to collect data or file burdensome
paperwork for the sake of public safety.
2:44:27 PM
Co-Chair Meyer CLOSED public testimony.
Senator Bishop inquired whether the metal scrappers and
dealers had been involved in crafting the bill.
Mr. Wright replied yes.
Vice-Chair Fairclough queried to what extent the record
keeping proposed in the legislation would inconvenience
business owners.
2:46:46 PM
REPRESENTATIVE MIKE CHENAULT, replied that it was not the
sponsor's intent make the reporting any more burdensome
than what was considered good business practice. He
asserted that it would be best for businesses to keep
accurate records. He noted that if enforcement came into a
pawn shop and found that things were stolen, the items were
confiscated and given back to the rightful owner, resulting
in a loss for the store owner; proper record keeping offers
the proprietor the ability to recoup the costs from whoever
pawned the item. He understood that there would be more
paperwork and acknowledged the concerns; however, it was
better business practice to keep the information regarding
customers. He stressed that the legislation was an attempt
to address theft concerns in the most innocuous way
possible.
2:48:49 PM
Vice-Chair Fairclough questioned the reasoning behind
repealing the licensing requirement of junk dealers and
metal scrappers.
Mr. Wright replied that it was handed over as an arcane law
that pre-dated statehood. He cited the Legislative Research
Services Research Brief (copy on file):
Because the licensing of junk dealers and metal
scrappers involved the payment of fees, the Department
of Revenue inherited the provision through passage of
duties from territorial offices to the newly created
state offices.
Mr. Wright furthered that the law was not enforced by DOR
and that the issue was now the per view of the Department
of Commerce, Community and Economic Development (DCCED)
under their business license division.
Vice-Chair Fairclough stated if the number of metal
scrappers/dealers was unknown, and there were increasing
instances of metal scrappers buying stolen merchandise,
then it would be in the state's best interest to require
then to hold a license under DOR.
Representative Chenault replied that the state did know how
many there were and that they were all licensed under
DCCED. He said that the original intent of the legislation
was to terminate the section pertaining to DOR and not
DCCED.
2:51:43 PM
CSHB 305(FIN) was HEARD and HELD in committee for further
consideration.
2:51:54 PM
AT EASE
2:52:20 PM
RECONVENED
| Document Name | Date/Time | Subjects |
|---|---|---|
| CSSB 178 BP Backup.pdf |
SFIN 4/1/2014 1:30:00 PM |
SB 178 |