 |
ARIZONA STATE SENATE
Fifty-Fifth Legislature, Second Regular Session
used catalytic
converters; sales; acquisitions
(NOW: sales; acquisitions; used catalytic converters)
Purpose
An emergency measure that outlines exemptions for the purchase, solicitation, advertisement and possession of used catalytic converters and any nonferrous parts of a catalytic converter and modifies applicable violations for scrap metal dealers (dealers).
Background
A person who purchases or sells a used catalytic converter is subject to a class 1 misdemeanor, unless the purchase or sale is in the ordinary course of business by a commercial motor vehicle parts or repair business in connection with the sale or installation of a new catalytic converter. This does not apply to a licensed automotive recycler or to the purchase or sale of a used catalytic converter acquired in a transaction with an industrial account, with another dealer or after the used catalytic converter is authorized for release by a peace officer of the jurisdiction in which the transaction occurs. (A.R.S. § 13-3728).
A catalytic converter is a motor vehicle exhaust system part that is used for controlling the exhaust emissions from motor vehicles and that contain a catalyst metal. A ferrous metal is a metal that will attract a magnet. A dealer may not knowingly purchase various types of scrap metal including metal manhole covers, brass or bronze valves or fittings, catalytic converters or metal municipal storm grates (A.R.S. §§ 44-1641 and 44-1642.01).
A registered dealer must keep the following at the dealer's place of business: 1) proof of registration issued by the Department of Public Safety (DPS); 2) a statement indicating that the person 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 100 mile radius of a theft; 3) an affidavit signed by the person that states that the person is in compliance with the prescribed regulations; and 4) a questionnaire that the dealer must prepare every two years to show statutory compliance. A dealer in violation of the outlined requirements is subject to a civil penalty of $500 for a first violation and a civil penalty of $1,000 for a second or subsequent violation (A.R.S. §§ 44-1641.02 and 44-1641.05).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
Catalytic Converter
1. Deems it unlawful for a person to solicit, advertise or possess a used catalytic converter or any nonferrous parts of a catalytic converter.
2. Exempts, from the prohibition on a person purchasing, soliciting, advertising, possessing or selling a used catalytic converter or any nonferrous parts of a catalytic converter, the:
a) possession or sale of a used catalytic converter or any nonferrous parts of a catalytic converter by a licensed automotive recycler if the possession or sale is in the automotive recycler's ordinary course of business;
b) purchase or sale of any nonferrous parts of a catalytic converter acquired in a transaction with an industrial account or another dealer or that are authorized for release by a peace officer of the jurisdiction in which the transaction occurs, except that a solicitation or advertisement for a used catalytic converter or any nonferrous parts of a catalytic converter may be made only for industrial accounts; and
c) possession or sale of a used catalytic converter or any nonferrous parts of a catalytic converter by a commercial motor vehicle parts or repair business that sells or installs a new catalytic converter if the possession or sale is in the business's ordinary course of business.
3. Allows a commercial motor vehicle parts or repair business to purchase a used catalytic converter being sold as a vehicle repair part in compliance with U.S. Environmental Protection Agency (U.S. EPA) policy.
4. Requires the used catalytic converter sold in compliance with U.S. EPA policy to be marked with:
a) the date the catalytic converter was removed from the vehicle;
b) the vehicle identification number (VIN) of the vehicle from which the catalytic converter was removed; or
c) an alternative number to the VIN that is under a numbering system that can be immediately linked to the VIN by law enforcement.
5. Requires a person that purchases a used catalytic converter or any nonferrous parts of a catalytic converter to electronically submit to DPS a record of each transaction relating to a used catalytic converter or any nonferrous parts of a catalytic converter and requires record to include outlined information relating to scrap metals.
6. Requires, if a dealer purchases a used catalytic converter or any nonferrous parts of a catalytic converter, the dealer to retain the used catalytic converter or the nonferrous parts of the catalytic converter in its original form for at least seven days after the original purchase date at the dealer's place of business.
7. Prohibits a dealer from knowingly purchasing any nonferrous parts of a catalytic converter.
8. Exempts a dealer from the prohibition of knowingly purchasing outlined types of scrap metal acquired in transactions with industrial accounts, other dealers or after the scrap metal is authorized for release by a peace officer of the jurisdiction, if the dealer:
a) keeps statutorily required records of purchase; and
b) electronically reports the transaction receipts for scrap metals as statutorily required.
9. Requires a record of the receipt of scrap metals to include the unique identifying numbers and markings on catalytic converters or any nonferrous parts of a catalytic converter.
10. Requires a dealer to electronically submit to DPS a record of receipt of each purchase of a catalytic converter or any nonferrous parts of a catalytic converter from an industrial account or another dealer.
11. Requires the record of receipt of each purchase of a catalytic converter or any nonferrous parts of a catalytic converter from an industrial account or another dealer to include:
a) the name, address and transaction privilege tax number of the seller;
b) the date, time and place of the transaction;
c) the number of catalytic converters purchased; and
d) any unique identifying numbers and markings on a catalytic converter or any nonferrous parts of a catalytic converter.
Violations of Prescribed Regulations (Violation)
12. Requires law enforcement to reinspect a dealer's place of business at least 7 days, rather than 15 days, after the dealer receives a notice of violation.
13. Allows law enforcement to conduct a subsequent reinspection without the minimum waiting period if, after reinspection, law enforcement determines the dealer is in violation.
14. Removes the exemption from the civil penalty for a first violation if the dealer corrects the violation within 15 days after receiving the notice of violation.
15. Increases, for a second violation, the civil penalty from $1,000 to $2,000.
16. Subjects, for a third or subsequent violation, a dealer to a civil penalty of $2,000 more than the previous civil penalty imposed on the dealer for a violation.
Miscellaneous
17. Adds the criteria, for a person or business entity to meet the definition of industrial account, that the person or business be reasonably expected to generate the type of scrap metal the person of business sells.
18. Makes technical and conforming changes.
19. Becomes effective on signature of the Governor, if the emergency clause is enacted.
Amendments Adopted by Committee of the Whole
1. Adds an emergency clause.
2. Requires a record of receipt of scrap metals to include unique identifying numbers and markings, rather than the factory markings or owner applied numbers on catalytic converters.
3. Requires a dealer to electronically submit to DPS a record of receipt of each purchase of a catalytic converter or any nonferrous parts of a catalytic converter from an industrial account or another dealer.
4. Details reporting requirements for the record of receipt.
5. Makes technical and conforming changes.
House Action Senate Action
TRANS 2/17/22 W/D TAT 3/14/22 DP 9-0-0
APPROP 2/21/22 DPA/SE 12-1-0-0
3rd Read 2/24/22 49-10-1
Prepared by Senate Research
April 27, 2022
RA/sr