• Ferrous Beat

State Legislative Roundup

At the beginning of May there were 24 states still in regular legislative sessions, but by the time of publishing at least five more are set to finish for the year. As states approach their deadlines, bills can move and change quickly, with substitute amendments and other methods allowing legislators to attempt to completely change a bill just before passage.

Bills and regulations targeting vehicles and scrap metal can directly change how your business operates. In worst-case scenarios, legislation could even make it impossible for recyclers to stay in business.

Vehicle/Metals Theft Law Crossover

Legislation targeting changes to vehicle detitling and dismantling requirements have been extremely active this year, with an increasing crossover between metals theft and vehicle provisions. The recently passed Oklahoma HB 2950 includes changes to the metal theft law provisions for scrap metal dealers purchasing a vehicle, while Wisconsin SB 246 clarifies that scrap metal processors must follow the same rules as motor vehicle salvage dealers when purchasing a motor vehicle for scrap or salvage.

In Arizona, HB 2510 would create an enforcement fund and task force to go after unlicensed dealers, including automotive recyclers, while HB 2307 creates a new provision allowing scrap metal dealers and automotive recyclers to purchase a vehicle without a title if it is at least 10 years old, subject to numerous recordkeeping and reporting requirements. It also adds a new definition for a "scrap vehicle" (vehicles that have already been reported to NMVTIS and flattened, crushed, baled, or logged) to the state's metals theft law as part of the definition for ferrous metal. Both bills recently passed the legislature and are awaiting approval by the governor.

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