Section 1 of this bill prohibits a person from purchasing a used catalytic converter from any person other than: (1) a licensed automobile wrecker; (2) a licensed scrap metal processor; (3) a licensed motor vehicle manufacturer, distribution dealer or rebuilder; (4) any other business that may reasonably generate, possess or sell used catalytic converters; or (5) a person who possesses certain documentation that proves the person is the lawful owner of the used catalytic converter. Section 1 provides that a violation of this prohibition is punishable by a fine of $1,000 for the first offense, $2,000 for the second offense or $4,000 for any subsequent offense. Existing law includes a catalytic converter in the definition of the term “scrap metal.” (NRS 647.017) Section 6 of this bill prohibits a licensed scrap metal processor from purchasing a used catalytic converter from any person other than certain licensed businesses or a person possessing certain documentation that proves the person is the lawful owner of the used catalytic converter. Existing law requires scrap metal processors to maintain certain records of purchases of scrap metal. (NRS 647.092-647.098) Section 7 of this bill requires a scrap metal processor to maintain certain additional information if the scrap metal processor purchases a used catalytic converter from certain licensed businesses or a person who has documentation that proves the person is the legal owner of the used catalytic converter. Section 7 also requires a scrap metal processor to: (1) maintain certain records of all used catalytic converters the scrap metal processor sells to another scrap metal processor; (2) maintain certain records related to used catalytic converters for a period of not less than 2 years; and (3) make certain records related to used catalytic converters available to law enforcement upon demand. Existing law authorizes a local law enforcement agency to establish an electronic reporting system, or to utilize an existing electronic reporting system, to receive information relating to the purchase of scrap metal by a scrap metal processor that transacts business within the jurisdiction of the local law enforcement agency. If a law enforcement agency establishes or uses such a system, existing law requires each scrap metal processor that transacts business within the jurisdiction of the local law enforcement agency to submit electronically to the local enforcement agency certain information relating to each purchase of scrap metal from certain persons. (NRS 647.0945) Section 8 of this bill requires each such scrap metal processor to submit electronically to the local enforcement agency certain additional information if the scrap metal purchased is a used catalytic converter. Existing law requires a scrap metal purchaser, for every purchase of scrap metal with a value of $150 or more, to pay the seller only by check or electronic transfer of money. (NRS 647.098) Section 9 of this bill prohibits a scrap metal processor from providing payment for a used catalytic converter to a seller unless: (1) the payment is made by check and mailed to certain addresses; (2) the seller is a person described in section 6; and (3) the scrap metal processor obtains certain information, including, without limitation, a statement written by the seller indicating from whom the seller obtained the used catalytic converter. Section 9 provides for an exception to these requirements for a scrap metal processor who holds a certain written agreement with a seller before purchasing a used catalytic converter. Under existing law, a person who violates certain provisions governing scrap metal, including sections 7 and 9, is guilty of a misdemeanor. (NRS 647.143) Section 10 of this bill provides instead that a person who violates any provision of section 6, 7 or 9 is guilty of a misdemeanor punishable by a fine of $1,000 for the first offense, $2,000 for the second offense or $4,000 for any subsequent offense. Section 10 authorizes a court to also issue an injunction prohibiting the person from engaging in the business of a scrap metal processor. Sections 3 and 4 of this bill define the terms “permanently marked” and “used catalytic converter,” respectively, for the purposes of provisions governing scrap metal processors. Section 5 of this bill makes a conforming change to indicate the proper placement of sections 3 and 4 in the Nevada Revised Statutes.

Statutes affected:
As Introduced: 647.010, 647.092, 647.094, 647.0945, 647.098, 647.143
BDR: 647.010, 647.092, 647.094, 647.0945, 647.098, 647.143