HB2652 - 552R

Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 13-3728, Arizona Revised Statutes, is amended to read:

START_STATUTE13-3728. Unlawful purchase, solicitation, advertisement or sale of used catalytic converter; classification; definition

A. It is unlawful for a person to purchase, solicit, advertise or sell a used catalytic converter or any nonferrous parts of a catalytic converter unless the purchase, solicitation, advertisement or sale is in the ordinary course of business by a commercial motor vehicle parts or repair business in connection with the sale selling or installation of installing a new catalytic converter.

B. Subsection A of this section does not apply to:

1. An automotive recycler that is licensed pursuant to title 28, chapter 10.

2. The purchase or sale of a used catalytic converter as prescribed by section 44-1642.01 that is acquired in a transaction with an industrial account, with another scrap metal dealer or after the used catalytic converter is authorized for release by a peace officer of the jurisdiction in which the transaction occurs.

C. a person that purchases a used catalytic converter shall electronically submit to the department a record of each used catalytic converter transaction. The record shall INCLUDE the information listed in section 44-1644, subsection A.

C. D. A violation of this section is a class 1 misdemeanor.

E. For the purposes of this section, "catalytic converter" has the same meaning prescribed in section 44-1642.01. END_STATUTE

Sec. 2. Section 28-4301, Arizona Revised Statutes, is amended to read:

START_STATUTE28-4301. Definitions

In this chapter, unless the context otherwise requires:

1. "Area of responsibility" means the area surrounding an individual dealer that the factory designates as that dealer's individual primary geographic territory for the purpose of marketing, promoting, selling and leasing new motor vehicles. In the absence of the factory designated area, the area of responsibility is that geographical area surrounding a dealer that lies closer to that dealer than to other dealers of the same line-make.

2. "Branch license" means a license that is issued by the director to a licensed motor vehicle dealer and that permits allows the licensee to sell motor vehicles from an established place of business within the same county but other than the original or principal place of business for which the license was issued.

3. "Broker" means a person who for any fee, commission or other valuable consideration offers to provide, provides or represents that the person will provide a service of arranging or assisting in effecting the purchase of a motor vehicle and who is not:

(a) A new motor vehicle dealer or an employee or agent of a new motor vehicle dealer.

(b) A used motor vehicle dealer or an employee or agent of a used motor vehicle dealer.

(d) An auctioneer or engaged in the auto auction business.

(e) A wholesale motor vehicle dealer.

4. "Community" means the relevant market area. For the purposes of this paragraph, "relevant market area" means the incorporated city or town in which the franchise is located.

5. "Distributor" means a person who either:

(a) Sells or distributes new motor vehicles to new motor vehicle dealers in this state.

(b) Maintains distributor representatives in this state.

6. "Distributor branch" means a branch office maintained or availed of by a distributor for either:

(a) The sale of new motor vehicles to new motor vehicle dealers in this state.

(b) Directing or supervising its representatives in this state.

7. "Established place of business":

(a) Means a permanent enclosed building or structure that is owned either in fee or leased with sufficient space to display two or more motor vehicles of a kind and type that the dealer is licensed to sell and that is devoted principally to the use of a motor vehicle dealer in the conduct of the business of the dealer.

(b) In the case of a used motor vehicle dealer, trailer dealer or semitrailer dealer:

(i) Need not be a permanent building or structure or part of a permanent building or structure.

(ii) May be a vacant lot or part of a vacant lot.

(iii) Does not mean or include a residence, tent, temporary stand or temporary quarters or permanent quarters occupied pursuant to a temporary arrangement.

(c) In the case of an automotive recycler, means a permanent site or location at which the business of an automotive recycler is or will be conducted.

8. "Exhibitor" means a manufacturer of new motor homes that exhibits new motor homes at a special event.

9. "Factory branch" means a branch office maintained or availed of by a manufacturer for either:

(a) The sale of new motor vehicles to distributors or the sale of new motor vehicles to new motor vehicle dealers in this state.

(b) Directing or supervising its representatives in this state.

10. "Financial institution" means a bank, trust company, savings and loan association, credit union, consumer lender, international banking facility or holding company that is licensed, regulated or insured by the department of insurance and financial institutions, the federal deposit insurance corporation, the office of thrift supervision, the comptroller of the currency, the national credit union share insurance fund or the national credit union administration.

11. "Franchise" means a contract between two or more persons if all of the following conditions are included:

(a) A commercial relationship of definite duration or continuing indefinite duration is involved.

(b) The franchisee is granted the right to offer, sell and service in this state new motor vehicles manufactured or distributed by the franchisor.

(d) The operation of the franchisee's business is substantially associated with the franchisor's trademark, service mark, trade name, advertising or other commercial symbol designating the franchisor.

(e) The operation of the franchisee's business is substantially reliant on the franchisor for the continued supply of new motor vehicles, parts and accessories.

12. "Franchisee" means a person who both:

(a) Receives new motor vehicles from the franchisor under a franchise.

(b) Offers and sells to and services new motor vehicles for the general public.

13. "Franchisor" means a person who both:

(a) Manufactures or distributes new motor vehicles.

(b) May enter into a franchise.

14. "Importer" means a person who transports or arranges for the transportation of a foreign manufactured new motor vehicle into the United States for sale in this state.

15. "Lead" means any retail consumer who satisfies all of the following:

(a) Responds to a factory-directed program that obtains consumer contact information and that provides such the information to one or more dealers.

(b) Expresses an interest to the factory in purchasing, leasing or acquiring any vehicle or product, service or financing available from the dealers of that factory.

(c) Does not qualify for any reasonable factory sponsored employee, retiree or vendor new vehicle purchase program or any other reasonable similar factory new vehicle purchase program.

16. "Line-make" means those motor vehicles that are offered for sale, lease or distribution under a common name, trademark, service mark or brand name of the manufacturer of those same motor vehicles.

17. "Major component part" includes a catalytic converter as defined in section 44-1642.01 or a motor vehicle or vehicle part that to which the manufacturer has assigned any factory, motor, serial or other identification number or mark.

18. "Manufacturer" means any person who either:

(a) Manufactures or assembles new motor vehicles.

(b) Manufactures or installs on previously assembled truck chassis special bodies or equipment that when installed forms an integral part of the new motor vehicle and that constitutes a major manufacturing alteration, excluding the installation of a camper on a pickup truck.

19. "Motor home" means a motor vehicle that is primarily designed as temporary living quarters and that:

(a) Is built onto as an integral part of, or is permanently attached to, a motor vehicle chassis.

(b) Contains at least four of the following independent life support systems if each is permanently installed and designed to be removed only for purposes of repair or replacement:

(i) A cooking facility with an onboard fuel source.

(ii) A gas or electric refrigerator.

(iii) A toilet with exterior evacuation.

(iv) A heating or air conditioning system with an onboard power or fuel source separate from the vehicle engine.

(v) A potable water supply system that includes at least a sink, a faucet and a water tank with an exterior service supply connection.

(vi) A 110-125 volt electric power supply.

20. "Motor vehicle" means an automobile, motor bus, motorcycle, truck or truck tractor or any other self-propelled vehicle, trailer or semitrailer.

21. "Motor vehicle dealer" means a new motor vehicle dealer, a used motor vehicle dealer, a public consignment auction dealer, a broker or a wholesale motor vehicle auction dealer, excluding a person who comes into possession of a motor vehicle as an incident to the person's regular business and who sells, auctions or exchanges the motor vehicle.

22. "New house trailer dealer" means a person who buys, sells, exchanges or offers or attempts to negotiate a sale or exchange of an interest in, or who is engaged in the business of selling, new house trailers or used house trailers taken in trade on new house trailers. For the purposes of this paragraph, "house trailer" means a vehicle, other than a motor vehicle, that is built on a chassis designed for being drawn on the highways by a motor vehicle and that is designed for human habitation.

23. "New motor vehicle" means a motor vehicle, other than a used motor vehicle, that is held either for:

(a) Sale by the franchisee who first acquired the vehicle from the manufacturer or distributor of the vehicle.

(b) Sale by another franchisee of the same line-make.

24. "New motor vehicle dealer" means a person who buys, sells, exchanges or offers or attempts to negotiate a sale or exchange of an interest in, or who is engaged in the business of selling, new motor vehicles or used motor vehicles taken in trade on new motor vehicles or used vehicles purchased for resale.

25. "Off-premises display and sales" means a promotion or sale of motor vehicles for a period of time as specified by the director that both:

(a) Is sponsored by a licensed motor vehicle dealer, the licensed motor vehicle dealer's agents or the manufacturer.

(b) Takes place at a location within the same county but not at the licensee's established place of business.

26. "Off-premises exhibition" means the exhibition of a motor vehicle for a period of time as specified by the director at a location within the same county but not at the established place of business of a licensed motor vehicle dealer and at which a solicitation or sale does not occur.

27. "Provisional automotive recycler's license" means a license that both:

(a) Is issued by the department only in conjunction with an application for an automotive recycler's license.

(b) Permits the applicant or applicants to conduct the business of an automotive recycler regulated by this chapter pending completion of the criminal records check pursuant to section 28-4361.

28. "Provisional dealer's license" means a license that both:

(a) Is issued by the department only in conjunction with an application for a dealer's license.

(b) Permits the applicant or applicants to conduct the business of a motor vehicle dealer regulated by this chapter pending completion of the criminal records check pursuant to section 28-4361.

29. "Public consignment auction dealer" means a person who at the public consignment auction dealer's established place of business or at an authorized off-premises location pursuant to the requirements of section 28-4401 is in the business of both of the following:

(a) Conducting live auctions with a licensed auctioneer verbally calling for and accepting bids.

(b) Providing live auction services to the public on a consignment contract basis.

30. "Retail consumer" means any person purchasing, leasing or acquiring or possibly purchasing, leasing or acquiring a vehicle or product, service or financing not for resale.

31. "Service" means any service that is sold, leased or provided to retail consumers and that directly relates to the ownership owning or leasing of a new or used motor vehicle, including extended service contracts or motor vehicle warranty and nonwarranty repairs or maintenance, including both parts and labor.

32. "Special event" means an exhibition of new motor homes by a motor vehicle dealer licensed to sell new motor homes or an exhibitor for a period of time specified by the director at a location in this state other than the licensee's or exhibitor's established place of business.

33. "Used motor vehicle" means a motor vehicle that has been sold, bargained, exchanged or given away or the title to the motor vehicle has been transferred from the person who first acquired the vehicle from the manufacturer, or importer, dealer or agent of the manufacturer or importer, and that has been placed in bona fide consumer use. For the purposes of this paragraph, "bona fide consumer use" means actual operation by an owner who acquired a new motor vehicle both:

(a) For use in the owner's business or for pleasure or otherwise.

(b) For which a certificate of title has been issued or that has been registered as provided by law.

34. "Used motor vehicle dealer" means a person, other than a new motor vehicle dealer, who buys, sells, auctions, exchanges or offers or attempts to negotiate a sale or exchange of an interest in, or who is engaged in the business of selling, seven or more used motor vehicles in a continuous twelve month twelve-month period. Used motor vehicle dealer does not include a wholesale motor vehicle auction dealer or a public consignment auction dealer.

35. "Wholesale motor vehicle auction dealer" means a person who both:

(a) Is in the business of providing auction services solely in wholesale transactions to motor vehicle dealers licensed by this state or any other jurisdiction.

(b) Does not buy, sell or own the motor vehicles the auction dealer auctions in the ordinary course of business.

36. "Wholesale motor vehicle dealer" means a person who sells used motor vehicles only to licensed motor vehicle dealers. END_STATUTE

Sec. 3. Section 28-4403, Arizona Revised Statutes, is amended to read:

START_STATUTE28-4403. Record requirements; motor vehicle information; inspection; liability; electronic submission of documents and records

A. A licensee shall keep and maintain at the licensee's established place of business, or place of business if the licensee is a broker or a wholesale motor vehicle dealer, a permanent record in the form prescribed by the director containing:

1. A particular description of each motor vehicle of a type subject to registration under the laws of this state that is bought, sold, brokered or exchanged by the licensee or received or accepted by the licensee for sale, brokering or exchange.

2. A particular description of each used motor vehicle body or chassis that is sold or otherwise disposed of.

3. A particular description of each motor vehicle that is bought or otherwise acquired and wrecked by the licensee.

4. The name and address of the person from whom a motor vehicle, motor vehicle body or motor vehicle chassis was purchased or otherwise acquired and the date it was purchased or acquired.

5. The name and address of the person to whom the motor vehicle, motor vehicle body or motor vehicle chassis was sold or otherwise disposed of, the date it was sold or disposed of and a sufficient description of the vehicle, body or chassis by name or identifying number or otherwise to identify it.

B. A licensed automotive recycler that has a vehicle in the automotive recycler's inventory shall:

1. At the same time have possession of a duly and regularly assigned salvage certificate of title, nonrepairable vehicle certificate of title or dismantle certificate of title to the vehicle.

2. Not offer for sale or sell a vehicle unless a salvage certificate of title, nonrepairable vehicle certificate of title or dismantle certificate of title to the vehicle has been obtained.

C. Each motor vehicle dealer shall give the customer a written contract and shall maintain a copy of the contract for three years at the dealer's established place of business.

D. Each record required by this section and all inventories relating to the records of a licensee shall be available at all times for physical inspection by agents of the department or members of the highway patrol division. The agents or members may enter on premises where the records or inventories are located during normal business hours for purposes of the inspection. The licensee or any designated employee or agent may accompany any person making the inspection while the person is on the licensee's premises.

E. The licensee is only liable to a person making an inspection under this section for an injury arising out of the condition of the premises that occurs while the person is on the licensee's premises if the licensee knowingly allows the person to encounter a hidden peril or wantonly or wilfully causes the person harm.

F. A wholesale motor vehicle dealer shall submit electronically to the department any documents that are requested by the department during the wholesale motor vehicle dealer's reported business hours and that are prescribed in this section. The wholesale motor vehicle dealer shall submit the requested documents within forty-eight hours after the request is transmitted.

G. Within twenty-four hours after the transaction, a licensed automotive recycler shall submit to the department a record of each transaction involving the acquisition or purchase of a catalytic converter as defined in section 44-1642.01 that is not affixed to a vehicle. END_STATUTE

Sec. 4. Section 28-4404, Arizona Revised Statutes, is amended to read:

START_STATUTE28-4404. Record requirements; vehicles and parts; electronic submission; violation; classification

A. Each licensee shall keep and maintain at the licensee's place of business, or at each of the licensee's places of business if the licensee has more than one, a permanent record in a form prescribed by the director as follows:

1. Recording and describing each of the following:

(a) Each vehicle that is wrecked, dismantled, disassembled or substantially altered by the licensee.

(b) Each major component part that is acquired by the licensee, together with a bill of sale signed by a seller whose identity has been verified, and the name and address of the person, firm or corporation from which the licensee purchased the vehicle or part.

(i) If previously titled in this or any other state, the certificate of title number.

(ii) The name of the state where last registered.

(iii) The number of the last license plate issued.

(iv) The make and model of the vehicle.

(v) The identification number and serial number of the vehicle.

(vi) The date purchased.

(vii) The disposition of the chassis.

(viii) The name and address of the person from whom a motor vehicle, motor vehicle body or motor vehicle chassis was purchased or otherwise acquired and the date of the purchase.

(ix) The name and address of the person to whom the motor vehicle, motor vehicle body or motor vehicle chassis was sold or otherwise disposed of, the date of the sale and a description of the vehicle, body or chassis by make and model or identification number.

(d) Each catalytic converter as defined in SECTION 44-1642.01 that is not permanently affixed to a vehicle and that is acquired by the licensee.

2. Including a bill of sale signed by the seller for any motor vehicle parts other than major component parts acquired by the licensee, identifying the seller by name, address and date of sale.

B. The licensee shall maintain the record at the licensee's established place of business or principal place of business if the licensee is a broker or a wholesale motor vehicle dealer for a period of three years from the date of acquiring each item recorded.

C. Authorized representatives of the department of transportation or any law enforcement agency may inspect the record kept by the licensee at any time during regular business hours.

D. An automotive recycler shall maintain a similar record of all disabled vehicles that have been towed or transported to the automotive recycler's place of business or to other places designated by the owner of the vehicle or the owner's representative. This record shall specify the make, model and description of the vehicle, name of the owner, number of the license plate, condition of the vehicle and place to which it was towed or transported.

E. Each licensee shall allow any person described in subsection C of this section, during business hours and after reasonable demand, to physically compare the records required to be maintained with the vehicles or major component parts that are located at the licensee's place of business.

F. A licensed automotive recycler shall submit electronically to the department information regarding each transaction that involves the acquisition or purchase of a catalytic converter as defined in SECTION 44-1642.01 that is not permanently affixed to a vehicle, including the information listed in section 44-1644.

F. G. Beginning January 1, 2014, A wholesale motor vehicle dealer shall submit electronically to the department any documents that are requested by the department during the wholesale motor vehicle dealer's reported business hours and that are prescribed in this section. The wholesale motor vehicle dealer shall submit the requested documents within forty-eight hours after the request is transmitted.

G. H. After reasonable demand by a person under subsection C or E of this section, a person who fails to display the records required to be maintained is guilty of a class 1 misdemeanor. END_STATUTE

Sec. 5. Section 44-1641, Arizona Revised Statutes, is amended to read:

START_STATUTE44-1641. 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 or 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. END_STATUTE

Sec. 6. Section 44-1641.05, Arizona Revised Statutes, is amended to read:

START_STATUTE44-1641.05. 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 applicant 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 applicant 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 no not earlier than fifteen 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 five hundred dollars, $500. except that the person is not subject to a civil penalty if the person corrects the violation within fifteen days after receiving the notice pursuant to subsection B of this section.

2. For a second or subsequent violation, a civil penalty of one thousand dollars $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.

3. 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. END_STATUTE

Sec. 7. Section 44-1642, Arizona Revised Statutes, is amended to read:

START_STATUTE44-1642. 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, only 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 three hundred dollars $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, the scrap metal dealer shall retain the used catalytic converter in its original form for at least seven days after the original purchase date at the scrap metal dealer's place of business.

H. I. This section does not apply to transactions involving materials consisting of a metal product in its original manufactured form that is composed of no not more than twenty per cent percent by weight of nonferrous metal. END_STATUTE

Sec. 8. Section 44-1642.01, Arizona Revised Statutes, is amended to read:

START_STATUTE44-1642.01. 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 measurement of measuring the use and consumption of domestic water.

5. Aluminum trench shoring that is commonly used for shoring below ground trenches and excavations for the construction of 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 the sale selling and transportation of transporting beer or malt beverages.

8. Catalytic converters. 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. END_STATUTE