License and Regulate Scrap Processors

Section 1. Section 69-e of the general business law, as added by chapter 431 of the laws of 1976, is amended to read as follows:

§ 69-e. Definitions. 1. "Scrap metal processing facility" shall mean an establishment engaged primarily in the purchase, processing and shipment of ferrous and/or non-ferrous scrap metal, the end product of which is the production of raw material [for remelting purposes] for steel mills, [foundaries] foundries, smelters, refiners, and similar users, but shall not include a redemption center, dealer or distributor as defined in section 27-1003 of the environmental conservation law or an electronic waste collection, consolidation or recycling facility as defined in section 27-2601 of the environmental conservation law.

2. "Scrap processor" shall mean any person, association, partnership or corporation operating and maintaining a "scrap metal processing facility".

3. "Government issued photographic identification" shall mean any current and valid official form of identification issued by the government of the United States of America, a state, territory, protectorate, or dependency of the United States of America, a county, municipality or subdivision thereof, any public agency or department thereof, or any public employer, which requires and bears the signature and photograph of the person to whom it is issued.

4. "Department" shall mean the New York state department of state.

§ 2. Section 69-f of the general business law, as added by chapter 431 of the laws of 1976, is amended to read as follows:

EXPLANATION--Matter in italics (underscored) is new; matter in brackets

[ ] is old law to be omitted.

LBD02375-01-9

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§ 69-f. License. 1. It shall be unlawful for any person, association, partnership or corporation to engage in business as a scrap processor unless such scrap processor shall have complied with the provisions of this article and obtained a license to do so from [the mayor of the city, if the place of business of such scrap processor is in a city, or the mayor of the village if the place of business is in an incorporated village, otherwise from the supervisor of the town in which such place of business is located, or from] the licensing authority as designated by a duly adopted local law of [any such] the municipality in which such scrap processor is located; for which license shall be paid [such mayor or supervisor or licensing authority for the use of such city, village, or town the sum of seventy-five dollars if such place of business is the principal place of business of such scrap processor in this state, otherwise the sum of fifty dollars, which license shall expire on June thirtieth of each year] an annual license fee not to exceed two hundred fifty dollars.

2. On or after September first, two thousand twenty, no person, association, partnership or corporation shall hold himself, herself or itself out to be a scrap processor in New York state without first obtaining a license from the department as provided in this section.

3. Any person, association, partnership or corporation seeking a license as a scrap processor shall file with the department a license application which shall include the following information:

(a) the business name and address of the applicant;

(b) the names of the applicant's officers, directors, and high managerial agents as such term is defined in section 20.20 of the penal law;

(c) the business telephone number of the applicant;

(d) the address of the scrap processing facility for which a license is sought;

(e) a statement indicating whether the applicant or any person identified pursuant to paragraph (b) of this subdivision has:

(i) been convicted of any crime relating to conduct as a scrap processor; and

(ii) at any time in the past been issued a license pursuant to this section, and if so, whether such license was ever revoked or suspended;

(f) a certification attesting that the scrap processor is in compliance with the applicable regulations of the department of environmental conservation;

(g) a copy of (i) the applicant's EPA refrigerant recovery equipment acquisition certification form certifying that the prospective licensee owns approved refrigerant removal equipment, or (ii) a copy of a valid contract between the applicant and a certified refrigerant removal contractor;

(h) a certification attesting that the scrap processor is in compliance with requirements of section sixty-nine-g of this article;

(i) a sworn statement by the applicant that the information set forth in the application is current and accurate; and

(j) a complete set of two fingerprint cards for each officer and high managerial agent of the applicant on a standard fingerprint card approved by the division of criminal justice services. Such cards shall be retained by the department and used solely for the purpose of conducting an investigation pursuant to subdivision ten of this section. If additional copies of fingerprints are required the applicant shall furnish them upon request.

4. (a) A license issued or renewed under the provisions of this section shall entitle a person, association, partnership or corporation

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to act as a scrap processor in the state of New York for a period of two years from the effective date of the license. Any license granted under this section may be renewed by the department upon application for such renewal by the holder thereof, in such form as the department may prescribe.

(b) Upon original application for a license to operate as a scrap processor, the applicant shall pay an application fee of one thousand dollars. Upon application for a license renewal, the licensee shall pay a renewal processing fee of one thousand dollars.

(c) The secretary of state shall have the authority to assign staggered expiration dates for licenses at the time of renewal. If the assigned date results in a term that exceeds twenty-four months, the applicant shall pay an additional prorated adjustment together with the regular renewal fee.

(d) The secretary of state shall issue each scrap processor a unique license number.

5. (a) Notice in writing in the manner and form prescribed by the department shall be given to the department at its offices in Albany within ten days of changes of name or address by a registered scrap processor.

(b) In the case of loss, destruction or damage, the department may, upon submission of a request in such form and manner as the department may prescribe, issue a duplicate license upon payment of a fee of one hundred dollars.

6. The fees established by this section shall not be refundable.

7. Each scrap processor shall exhibit the license prescribed by this article at the place of business.

8. No person, association, partnership or corporation shall:

(a) present, or attempt to present, the license of another;

(b) knowingly give false evidence of a material nature to the department for the purpose of procuring a license; or

(c) falsely represent themselves to be a registered scrap processor.

9. Licenses issued to scrap processors shall not be transferable or assignable.

10. (a) The secretary of state shall promulgate such rules and regulations as are deemed necessary to effectuate the purposes of this article.

(b) The secretary of state shall have the power to enforce the provisions of this article and upon complaint of any person, or upon the department's initiative, to investigate any violation thereof or to investigate the business practices and business methods of any person, association, partnership or corporation applying for or holding a license as a scrap processor. Each such applicant or registrant shall be obliged on request of the department, to supply such information, books, papers or records as may be required concerning business practices or business methods. Failure to comply with such lawful request shall be a ground for denying an application for a license, or for revoking, suspending, or not renewing a license issued under this article.

11. In order to assure that scrap processor licenses are not issued to or held by unqualified or unsuitable persons, the secretary of state may, consistent with articles twenty-three and twenty-three-A of the correction law, deny, suspend or revoke any such license upon a written determination that such action is required to protect the public health and safety and that:

(a) the license holder or applicant has been finally determined in an administrative, civil or criminal proceeding to have violated a substan-

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tive provision of this article, any substantive regulation promulgated pursuant to this article, a material condition of any license issued thereunder, or of any substantially similar statute, regulation, order or license condition of the federal or other state government relating to operation as a scrap processor; or

(b) such licensee or applicant has been previously denied a license for the same or substantially similar activity based upon one or more of the provisions of this subdivision; or

(c) such license holder or applicant has been found in a civil proceeding to have committed an intentionally tortious act in relation to operations as a scrap processor or has been convicted in a criminal proceeding of a crime involving operation as a scrap processor; or

(d) such licensee has been convicted of a felony under the laws of this state involving fraud, bribery, perjury, or theft, or has been convicted under the laws of any other state or of the United States of a criminal offense which, if committed and prosecuted in this state, would constitute a similar felony under such laws of this state; or

(e) such licensee in any matter within the jurisdiction of the department has been determined to have knowingly falsified a material fact, or knowingly submitted a false statement, or knowingly made use of a false statement in connection with any document or application submitted to the department or said agency; or

(f) such licensee or applicant is either:

(i) an individual who had a substantial interest in or acted as a high managerial agent or director for any corporation, partnership, association or organization which committed an act or failed to act, and such act or failure to act could be the basis for the denial of a license pursuant to this section or regulations promulgated thereunder if such corporation, partnership, association or organization applied for a license under this title; or

(ii) a corporation, partnership, association, or organization, or any principal thereof, or any person holding a substantial interest therein, which committed an act or failed to act, and such act or failure to act could be the basis for the denial of a license pursuant to this section or regulations promulgated thereunder if such corporation, partnership, association or organization applied for a license under this title; or

(iii) a corporation, partnership, association or organization or any high managerial agent or director thereof, or any person holding a substantial interest therein, acting as high managerial agent or director for or holding a substantial interest in another corporation, partnership, association or organization which committed an act or failed to act, and such act or failure to act could be the basis for the denial of a license pursuant to this section or regulations promulgated thereunder had such other corporation, partnership, association or organization applied for a license under this title.

For the purposes of this subdivision, "high managerial agent" has the same meaning as is given that term in section 20.20 of the penal law.

12. Any act or failure to act which serves as a basis for denial or revocation of a license pursuant to this subdivision shall have occurred within five years from the date on which the application for a license, renewal or modification is submitted to the department or from the date on which the department serves notice of intent to revoke or modify a license issued by the department in relation to an existing license.

13. Any person denied a license or renewal on the grounds specified in this section shall be entitled to a hearing within sixty days of such

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denial in the case of a new license, or within fifteen days in the case of a renewal of any existing license.

14. The department shall maintain and publish a registry of all registered scrap processors, which shall list and identify on a county by county basis, all registered scrap processors doing business in this state. The department shall make the registry available on its website.

§ 3. Section 69-g of the general business law, as amended by chapter 302 of the laws of 2007, is amended to read as follows: