ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fifth Legislature

Second Regular Session

House: APPROP DPA/SE 12-1-0-0

HB 2652: used catalytic converters; sales; acquisitions

NOW: sales; acquisitions; used catalytic converters

Sponsor: Representative Espinoza, LD 19

House Engrossed

Overview

Modifies requirements for the sale and purchase of catalytic converters by scrap metal dealers.

History

A catalytic converter is a motor vehicle exhaust system part that is used to control exhaust emissions and contains a catalyst metal (A.R.S. § 41-1642.01). It is a class 1 misdemeanor for a person to purchase or sell a used catalytic converter unless that person meets certain specified criteria, such as being:

1)   An automotive recycler;

2)   A commercial vehicle parts or repair business; or

3)   An industrial account (A.R.S. § 13-3728).

An industrial account is either a business entity that is required to file monthly returns for its Transaction Privilege Tax license or a governmental entity that sells scrap metal to scrap metal dealers (A.R.S. § 44-1641).

Scrap metal dealers must register with the Department of Public Safety (DPS) and are subject to inspection by law enforcement (A.R.S. §§ 44-1641.03, 44-1641.05).

Provisions

1.   ☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal NoteExtends the prohibition on purchasing and selling a used catalytic converter to also include any nonferrous parts of a catalytic converter. (Sec. 1)

2.   Prohibits a person from soliciting, advertising or possessing a used catalytic converter or any nonferrous parts of a catalytic converter. (Sec. 1)

3.   Modifies exceptions for automotive recyclers and scrap metal dealers. (Sec. 1)

4.   Stipulates the conditions that a commercial motor vehicle parts or repair businesses must follow to purchase a used catalytic converter. (Sec. 1)

5.   Requires a person who purchases a used catalytic converter to submit an electronic record to DPS. (Sec. 1)

6.   Redefines industrial account to require a non-government entity to be reasonably expected to generate the type of scrap metals it sells. (Sec. 2)

7.   Allows law enforcement to inspect a scrap metal dealer's place of business seven days after notice of a violation, rather than fifteen days. (Sec. 3)

8.   Allows law enforcement to conduct a reinspection without a minimum waiting period if it is determined that the scrap metal dealer did not keep certain items at the place of business. (Sec. 3)

9.   Increases the civil penalties for a second violation by a scrap metal dealer to $2,000, and for third and subsequent violations to at least $2,000 more than the previous violation. (Sec. 3)

10.  Requires a scrap metal dealer to retain a used catalytic converter or the nonferrous parts of a catalytic converter in its original form at the place of business for at least seven days after the purchase date. (Sec. 4)

11.  Directs a scrap metal dealer to include in its records the factory markings or owner applied numbers on catalytic converters. (Sec. 6)

12.  Defines catalytic converter. (Sec. 1)

13.  Makes technical and conforming changes. (Sec. 1, 2, 3, 4, 5, 6)

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17.                    HB 2652

18.  Initials AF  Page 0 House Engrossed

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