GENERAL ASSEMBLY OF NORTH CAROLINA
1993 SESSION

CHAPTER 295
SENATE BILL 1006

AN ACT PROVIDING FOR THE REGULATION OF PURCHASES OF REGULATED METALS PROPERTY BY SECONDARY METALS RECYCLERS IN NORTH CAROLINA.

The General Assembly of North Carolina enacts:

Section 1.  G.S. 66-10 reads as rewritten:
"§ 66-10. Failure of dealers of scrap, salvage, or surplus to keep record of purchases of certain items misdemeanor.
(a)	Every person, firm, or corporation buying rubber or leather, rubber belts, and belting, as scrap, salvage, or surplus shall keep a register containing a true and accurate record of each purchase, including the description of the article purchased, the name from whom purchased, the amount paid for the article purchased, the date of the purchase, and any and all marks or brands upon the rubber or leather, rubber belts, and belting. This register and the rubber, leather, rubber belts, and belting purchased shall be at all times open to the inspection of the public. A failure to comply with these requirements or the making of a false entry concerning the rubber or leather, rubber belts, or belting shall constitute a misdemeanor.
(b)	Every person, firm, or corporation engaged in the business of buying or dealing in scrap, salvage, or surplus, including glass, waste paper, burlap, cloth, cordage, rubber, leather, or belting of every kind, in addition to the above requirements under subsection (a) of this section, shall make and keep a record of the name and address of the person from whom this scrap, salvage, or surplus is purchased and the license number, if any, and if there is no license, a description of the vehicle in which this scrap, salvage, or surplus is delivered. Any person, firm, or corporation which fails to comply with the requirements of this subsection shall be guilty of a misdemeanor and upon conviction shall be fined not in excess of fifty dollars ($50.00) in the discretion of the court."
Sec. 2.  G.S. 66-11 reads as rewritten:
"§ 66-11. Dealing in regulated metals property; violations of section misdemeanor.
(a)	Definitions. – As used in this section:
(1)	'Law enforcement officer' means any duly constituted law enforcement officer of the State or of any municipality or county.
(2)	'Regulated metals property' means all ferrous and nonferrous metals.
(3)	'Secondary metals recycler' means any person, firm, or corporation in the State:
a.	That, from a fixed location or otherwise, is predominately engaged in the business of gathering or obtaining ferrous or nonferrous metals that have served their original economic purpose or is in the business of performing the manufacturing process by which ferrous metals or nonferrous metals are converted into raw material products consisting of prepared grades and having an existing or potential economic value; or
b.	That has facilities for performing the manufacturing process by which ferrous metals or nonferrous metals are converted into raw material products consisting of prepared grades and having an existing or potential economic value, by methods including, but not limited to, the processing, sorting, cutting, classifying, cleaning, baling, wrapping, shredding, shearing, or changing the physical form or chemical content of the metals, but not including the exclusive use of hand tools.
(4)	'Fixed location' means any site occupied by a secondary metals recycler as the owner of the site or as a lessee of the site under a lease or other rental agreement providing for occupation of the site by the secondary metals recycler for a total duration of not less than 364 days.
(b)	Records Required. –
(1)	A secondary metals recycler shall maintain a record of all purchase transactions in which the secondary metals recycler purchases regulated metals property.
(2)	The following information shall be maintained for transactions in which a secondary metals recycler purchases regulated metals property:
a.	The name and address of the secondary metals recycler.
b.	The name, initials, or other identification of the individual entering the information.
c.	The date of the transaction.
d.	The weight of the regulated metals property purchased.
e.	The description made in accordance with the custom of the trade of the type of regulated metals property purchased.
f.	The amount of consideration given for the regulated metals property.
g.	The name and address of the vendor of the regulated metals property.
h.	The drivers license number or identification card number issued by the Division of Motor Vehicles of the person delivering the regulated metals property to the secondary metals recycler, or, if the person delivering the regulated metals property does not have a drivers license or an identification card issued by the Division of Motor Vehicles, a signed written statement that the delivery person does not have a drivers license or an identification card issued by the Division of Motor Vehicles.
(3)	A secondary metals recycler shall keep and maintain the information required under this subsection for not less than two years from the date of the purchase of the regulated metals property.
(c)	Inspection of Regulated Metals Property and Records. – During the usual and customary business hours of a secondary metals recycler, a law enforcement officer shall have the right to inspect either of the following:
(1)	Any and all purchased regulated metals property in the possession of the secondary metals recycler.
(2)	Any and all records required to be maintained under subsection (b) of this section.
(d)	Cash Transactions. – No secondary metals recycler shall purchase regulated metals property for cash consideration from other than a fixed location.
(e)	Right to Restitution. – The court may order a defendant to make restitution to the secondary metals recycler for any damage or loss caused by the defendant arising out of an offense committed by the defendant.
(f)	Violations. – Any person violating any of the provisions of this section shall be guilty of a misdemeanor and upon conviction shall be fined not more than five hundred dollars ($500.00), imprisoned for not longer than two years, or both.
(g)	Exemptions. – This section shall not apply to purchases of regulated metals property from a manufacturing, industrial, or other commercial vendor that generates or sells regulated metals property in the ordinary course of its business.
(h)	Preemption. – A county or municipality shall not enact any local law, ordinance, or regulation regulating secondary metals recyclers or regulated metals property that conflicts with this section, and this law preempts all existing laws, ordinances, or regulations."
Sec. 3.  This act becomes effective December 1, 1993, but applies only to offenses committed on or after that date.
In the General Assembly read three times and ratified this the 7th day of July, 1993.

─────────────────── 
Dennis A. Wicker
President of the Senate

─────────────────── 
Daniel Blue, Jr.
Speaker of the House of Representatives