HF 30

1st Engrossment - 93rd Legislature (2023 - 2024) Posted on 02/13/2023 06:48pm

A bill for an act
relating to public safety; establishing requirements for the purchase of catalytic
converters; providing for penalties; amending Minnesota Statutes 2022, sections
325E.21, subdivisions 1b, 2, 4, 5, 6, by adding subdivisions; 609.5316, subdivision
3.

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

Section 1.

Minnesota Statutes 2022, section 325E.21, subdivision 1b, is amended to read:

Subd. 1b.

Purchase or acquisition record required.

(a) deleted text begin Any person who purchases or
receives a catalytic converter must comply with this section.
deleted text end

deleted text begin (b) deleted text end 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 include:

(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;

(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;

(8) in order to purchase a detached catalytic converter, new text begin the vehicle identification number
of the car it was removed from or, as an alternative, new text end any numbers, bar codes, stickers, or
other unique markings deleted text begin that result deleted text end new text begin , whether resulting new text end from the pilot project created under
subdivision 2b new text begin or some other source. The alternative number must be under a numbering
system that can be immediately linked to the vehicle identification number by law
enforcement new text end ; and

(9) the deleted text begin name of the person who removed the catalytic converter deleted text end new text begin identity, or identifier,
of the employee completing the transaction new text end .

deleted text begin (c) deleted text end new text begin (b) new text end 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.

deleted text begin (d) deleted text end new text begin (c) Except for the purchase of detached catalytic converters, new text end no 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 deleted text begin (b) deleted text end new text begin (a) new text end , clause
(7), shall be obtained and kept by the person, which must be shown upon demand to any
properly identified law enforcement officer.

deleted text begin (e) deleted text end new text begin (d) new text end The dealer must provide a copy of the receipt required under paragraph deleted text begin (b) deleted text end new text begin (a) new text end ,
clause (7), to the seller in every transaction.

deleted text begin (f) deleted text end new text begin (e) new text end 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.

deleted text begin (g) deleted text end new text begin (f) new text end 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).

Sec. 2.

Minnesota Statutes 2022, section 325E.21, subdivision 2, is amended to read:

Subd. 2.

Retention required.

Records required to be maintained by deleted text begin subdivision deleted text end new text begin
subdivisions new text end 1a deleted text begin or deleted text end new text begin , new text end 1b new text begin , 11, 12, and 14, new text end shall be retained by the scrap metal dealer for a period
of three years.

Sec. 3.

Minnesota Statutes 2022, section 325E.21, subdivision 4, is amended to read:

Subd. 4.

Registration required.

(a) Every scrap metal dealer shall register annually
with the commissioner of public safety. new text begin No person shall engage in the business of buying
or selling scrap metal without a valid registration.
new text end

(b) The scrap metal dealer shall pay to the commissioner of public safety a $50 annual
fee.

new text begin (c) The commissioner of public safety must cancel or deny the registration of a scrap
metal dealer convicted of a violation under subdivision 6, paragraph (a), or a violation of
subdivision 14.
new text end

new text begin (d) A scrap metal dealer whose registration has been canceled or denied under paragraph
(c) shall not register as a scrap metal dealer for a period of five years from the date of denial
or cancellation.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2023, and applies to crimes
committed on or after that date.
new text end

Sec. 4.

Minnesota Statutes 2022, section 325E.21, subdivision 5, is amended to read:

Subd. 5.

Training.

Each scrap metal dealer shall review the educational materials
provided by the superintendent of the Bureau of Criminal Apprehension under section
299C.25 and ensure that all employees do so as well. new text begin A scrap metal dealer engaged in the
purchase of used catalytic converters shall ensure employees handling catalytic converter
transactions are specifically trained and familiar with the additional requirements for catalytic
converters.
new text end

Sec. 5.

Minnesota Statutes 2022, section 325E.21, subdivision 6, is amended to read:

Subd. 6.

Criminal penalty.

new text begin (a) new text end A scrap metal dealer, or the agent, employee, or
representative of the dealer, who intentionally violates a provision of this section new text begin , except
for subdivision 11, 12, or 14 new text end , is guilty of a misdemeanor.

new text begin (b) A person who violates subdivision 11, 12, or 14 is guilty of a crime and may be
sentenced as follows:
new text end

new text begin (1) to imprisonment for not more than 90 days or to payment of a fine of not more than
$1,000, or both, for possession or purchase of one catalytic converter if the value of that
catalytic converter is $500 or less;
new text end

new text begin (2) to imprisonment for not more than one year or to payment of a fine of not more than
$3,000, or both, for possession or purchase of:
new text end

new text begin (i) two catalytic converters; or
new text end

new text begin (ii) one catalytic converter if the value of that catalytic converter is more than $500 but
not more than $1,000;
new text end

new text begin (3) to imprisonment for not more than five years or to payment of a fine of not more
than $10,000, or both, for possession or purchase of:
new text end

new text begin (i) three catalytic converters; or
new text end

new text begin (ii) one or more catalytic converters if the value of the catalytic converters is more than
$1,000 but not more than $5,000; and
new text end

new text begin (4) to imprisonment for not more than ten years or to payment of a fine of not more than
$20,000, or both, for possession or purchase of one or more catalytic converters if the value
of the catalytic converters exceeds $5,000.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2023, and applies to crimes
committed on or after that date.
new text end

Sec. 6.

Minnesota Statutes 2022, section 325E.21, is amended by adding a subdivision to
read:

new text begin Subd. 6a. new text end

new text begin Restitution. new text end

new text begin When the court imposes a criminal penalty pursuant to subdivision
6, and orders the offender to pay restitution to any identifiable victim, the amount of the
out-of-pocket losses considered by the court must include the costs and expenses of replacing
a catalytic converter and may include any other restitution costs allowed under section
611A.04.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2023, and applies to crimes
committed on or after that date.
new text end

Sec. 7.

Minnesota Statutes 2022, section 325E.21, is amended by adding a subdivision to
read:

new text begin Subd. 11. new text end

new text begin Prohibition on possessing catalytic converters; exception. new text end

new text begin (a) It is unlawful
for a person to possess a used catalytic converter that is not attached to a motor vehicle
except when:
new text end

new text begin (1) the converter is marked with the date the converter was removed from the vehicle
and the identification number of the vehicle from which the converter was removed or an
alternative number to the vehicle identification number; or
new text end

new text begin (2) the converter has been EPA certified for reuse as a replacement part.
new text end

new text begin (b) If an alternative number to the vehicle identification number is used, it must be under
a numbering system that can be immediately linked to the vehicle identification number by
law enforcement. The marking of the vehicle identification or alternative number may be
made in any permanent manner, including but not limited to an engraving or use of permanent
ink. The marking must clearly and legibly indicate the date removed and the vehicle
identification number or the alternative number and the method by which law enforcement
can link the converter to the vehicle identification number.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2023, and applies to crimes
committed on or after that date.
new text end

Sec. 8.

Minnesota Statutes 2022, section 325E.21, is amended by adding a subdivision to
read:

new text begin Subd. 12. new text end

new text begin Prohibition. new text end

new text begin It is unlawful for a person who is not a registered scrap metal
dealer to purchase a used catalytic converter that is not EPA certified for reuse as a
replacement part except when the catalytic converter is attached to a motor vehicle. A used
catalytic converter that is EPA certified for reuse as a replacement part may be sold to a
person or business for reuse as a replacement part for a motor vehicle when the requirements
of subdivision 11 are met.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2023, and applies to crimes
committed on or after that date.
new text end

Sec. 9.

Minnesota Statutes 2022, section 325E.21, is amended by adding a subdivision to
read:

new text begin Subd. 13. new text end

new text begin Audits. new text end

new text begin The commissioner of public safety may conduct periodic audits of
scrap metal dealers to ensure compliance with the catalytic converter theft prevention
requirements of this section.
new text end

Sec. 10.

Minnesota Statutes 2022, section 325E.21, is amended by adding a subdivision
to read:

new text begin Subd. 14. new text end

new text begin Purchase of catalytic converters. new text end

new text begin (a) It is unlawful for a scrap metal dealer
to purchase a used catalytic converter not attached to a motor vehicle unless the converter
is marked as required under subdivision 11 and the seller provides a copy of the vehicle's
title or registration in order to demonstrate the seller's ownership interest in the property.
A bona fide business engaged in vehicle dismantling, vehicle demolishing, scrap metal
recycling, or automotive repair services may remove a converter as part of auto repair work
or auto recycling without a copy of the vehicle's title or registration, if the business provides:
new text end

new text begin (1) the identity of the seller's business and a written or electronic signature of the seller;
new text end

new text begin (2) an itemized list of each detached catalytic converter being sold that includes the
donor vehicle identification number or a unique alternative number that can be readily linked
to the vehicle identification number by law enforcement; and
new text end

new text begin (3) the date of the removal of each catalytic converter.
new text end

new text begin The registered scrap metal dealer purchasing the catalytic converters must keep the
transaction record, along with the identity and signature of the employee completing the
transaction.
new text end

new text begin (b) Notwithstanding paragraph (a), a scrap metal dealer may purchase a catalytic converter
from a person possessing an old vehicle that is no longer registered and titled without a
copy of the registration or title, if the person has an affidavit from the local law enforcement
agency that the agency has verified the person's ownership prior to the removal of the
converter from the vehicle.
new text end

new text begin (c) A scrap metal dealer who purchases a used catalytic converter not attached to a motor
vehicle must record the information received under this subdivision and subdivision 11,
including the vehicle identification number or alternative number and the method by which
law enforcement can link the converter to the vehicle identification number, and make the
information available upon request to law enforcement and effective beginning August 1,
2024, enter the information into an electronic database available to a law enforcement agency
as approved by the commissioner of commerce.
new text end

new text begin (d) A scrap metal dealer is prohibited from processing, selling, or removing a catalytic
converter from the dealer's premises for at least seven days after the catalytic converter
acquisition by the scrap metal dealer.
new text end

new text begin (e) A payment for a catalytic converter must not be made until at least five days after
sale to the scrap metal dealer. Payment must be sent by check to the seller's address or a
bank account in the seller's name.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2023, and applies to crimes
committed on or after that date.
new text end

Sec. 11.

Minnesota Statutes 2022, section 609.5316, subdivision 3, is amended to read:

Subd. 3.

Weapons, telephone cloning paraphernalia, automated sales suppression
devices, new text begin catalytic converters, new text end and bullet-resistant vests.

Weapons used are contraband
and must be summarily forfeited to the appropriate agency upon conviction of the weapon's
owner or possessor for a controlled substance crime; for any offense of this chapter or
chapter 624, or for a violation of an order for protection under section 518B.01, subdivision
14. Bullet-resistant vests, as defined in section 609.486, worn or possessed during the
commission or attempted commission of a crime are contraband and must be summarily
forfeited to the appropriate agency upon conviction of the owner or possessor for a controlled
substance crime or for any offense of this chapter. Telephone cloning paraphernalia used
in a violation of section 609.894, and automated sales suppression devices, phantom-ware,
and other devices containing an automated sales suppression or phantom-ware device or
software used in violation of section 289A.63, subdivision 12, are contraband and must be
summarily forfeited to the appropriate agency upon a conviction. new text begin A catalytic converter
possessed in violation of section 325E.21 is contraband and must be summarily forfeited
to the appropriate agency upon a conviction.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2023, and applies to crimes
committed on or after that date.
new text end