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Capital IconMinnesota Legislature

HF 44

as introduced - 91st Legislature, 2020 5th Special Session (2020 - 2020) Posted on 10/13/2020 10:46am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to public safety; establishing requirements for the purchase of catalytic
converters; amending Minnesota Statutes 2018, section 325E.21, subdivisions 1b,
2, by adding a subdivision.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2018, section 325E.21, subdivision 1b, is amended to read:


Subd. 1b.

Purchase or acquisition record required.

(a) Every scrap metal dealer,
including an agent, employee, or representative of the dealer, shall create a permanent record
written in English, using an electronic record program at the time of each purchase or
acquisition of scrap metal. The record must includenew text begin the information identified in subdivision
1e where applicable, and must also include
new text end:

(1) a complete and accurate account or description, including the weight if customarily
purchased by weight, of the scrap metal purchased or acquired;

(2) the date, time, and place of the receipt of the scrap metal purchased or acquired and
a unique transaction identifier;

(3) a photocopy or electronic scan of the seller's proof of identification including the
identification number;

(4) the amount paid and the number of the check or electronic transfer used to purchase
the scrap metal;

(5) the license plate number and description of the vehicle used by the person when
delivering the scrap metal, including the vehicle make and model, and any identifying marks
on the vehicle, such as a business name, decals, or markings, if applicable;

(6) a statement signed by the seller, under penalty of perjury as provided in section
609.48, attesting that the scrap metal is not stolen and is free of any liens or encumbrances
and the seller has the right to sell it; and

(7) a copy of the receipt, which must include at least the following information: the name
and address of the dealer, the date and time the scrap metal was received by the dealer, an
accurate description of the scrap metal, and the amount paid for the scrap metal.

(b) The record, as well as the scrap metal purchased or received, shall at all reasonable
times be open to the inspection of any properly identified law enforcement officer.

(c) new text beginExcept as provided in subdivision 1e, new text endno record is required for property purchased
from merchants, manufacturers, salvage pools, insurance companies, rental car companies,
financial institutions, charities, dealers licensed under section 168.27, or wholesale dealers,
having an established place of business, or of any goods purchased at open sale from any
bankrupt stock, but a receipt as required under paragraph (a), clause (7), shall be obtained
and kept by the person, which must be shown upon demand to any properly identified law
enforcement officer.

(d) The dealer must provide a copy of the receipt required under paragraph (a), clause
(7), to the seller in every transaction.

(e) Law enforcement agencies in the jurisdiction where a dealer is located may conduct
regular and routine inspections to ensure compliance, refer violations to the city or county
attorney for criminal prosecution, and notify the registrar of motor vehicles.

(f) Except as otherwise provided in this section, a scrap metal dealer or the dealer's agent,
employee, or representative may not disclose personal information concerning a customer
without the customer's consent unless the disclosure is required by law or made in response
to a request from a law enforcement agency. A scrap metal dealer must implement reasonable
safeguards to protect the security of the personal information and prevent unauthorized
access to or disclosure of the information. For purposes of this paragraph, "personal
information" is any individually identifiable information gathered in connection with a
record under paragraph (a).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2021, and applies to purchases
that take place on or after that date.
new text end

Sec. 2.

Minnesota Statutes 2018, section 325E.21, is amended by adding a subdivision to
read:


new text begin Subd. 1e. new text end

new text begin Purchase or acquisition of catalytic converter. new text end

new text begin (a) Before each purchase or
acquisition of a catalytic converter, every scrap metal dealer, including an agent, employee,
or representative of the dealer, shall:
new text end

new text begin (1) verify, with the applicable documentation described in paragraphs (b) and (c), that
the person transferring or selling the catalytic converter acquired it legally and has the right
to transfer or sell it; and
new text end

new text begin (2) retain a record of the applicable verification.
new text end

new text begin (b) Any merchants, manufacturers, salvage pools, insurance companies, rental car
companies, financial institutions, charities, dealers licensed under section 168.27, or
wholesale dealers, having an established place of business seeking to transfer or sell a
catalytic converter, must provide a record showing:
new text end

new text begin (1) the repair order number, where applicable;
new text end

new text begin (2) the date of repair or the date on which the catalytic converter was removed from a
vehicle;
new text end

new text begin (3) the vehicle identification number of the vehicle from which the catalytic converter
was removed; and
new text end

new text begin (4) a description of the part including the part number or other identifying number of
the catalytic converter that was removed.
new text end

new text begin (c) Any other person seeking to transfer or sell a catalytic converter must provide a
receipt from a person or company that repairs, overhauls, dismantles, or does any mechanical
work to motor vehicles. At a minimum, the receipt must include:
new text end

new text begin (1) the name of the person or company that removed the catalytic converter;
new text end

new text begin (2) the name of the person for whom the work was completed;
new text end

new text begin (3) the make and model of the vehicle from which the catalytic converter was removed;
new text end

new text begin (4) the vehicle identification number of the vehicle from which the catalytic converter
was removed; and
new text end

new text begin (5) the part number or other identifying number of the catalytic converter that was
removed.
new text end

new text begin (d) A scrap metal dealer, or the agent, employee, or representative of the dealer, who
violates a provision of this subdivision is guilty of a misdemeanor.
new text end

new text begin (e) In a prosecution under this subdivision, it is a defense for the defendant to prove by
a preponderance of the evidence that the defendant reasonably and in good faith relied upon
the representations of proof described in this subdivision to establish that the person
transferring or selling the catalytic converter acquired it legally and had the right to transfer
or sell it.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2021, and applies to purchases
that take place on or after that date.
new text end

Sec. 3.

Minnesota Statutes 2018, section 325E.21, subdivision 2, is amended to read:


Subd. 2.

Retention required.

Records required to be maintained by subdivision deleted text begin1a ordeleted text end
1bnew text begin or 1enew text end shall be retained by the scrap metal dealer for a period of three years.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2021, and applies to purchases
that take place on or after that date.
new text end