A BILL TO BE ENTITLED
AN ACT to require secondary purchasers of motor vehicles for scrap metal or salvage parts to maintain records.
The General Assembly of North Carolina enacts:
SECTION 1.  Chapter 20 of the General Statutes is amended by adding a new section to read:
§ 20‑62.1. Purchase of vehicles for purposes of scrap or parts only.
(a)	A secondary metals recycler, as defined in G.S. 66‑11(3), salvage yard, as defined in G.S. 20‑137.7(6), or any other person, firm, or corporation, purchasing motor vehicles solely for the purposes of dismantling or wrecking such motor vehicles for the recovery of scrap metal or for the sale of parts only, must comply with the provision of G.S. 20‑61 provided however, that a secondary metals recycler, salvage yard, or any other person, firm, or corporation may purchase any such motor vehicle without a certificate of title, if such vehicle is 10 model years old or older and meets the following requirements:
(1)	Records required. – A secondary metals recycler, salvage yard, any other person, firm, or corporation shall maintain a record of all purchase transactions of motor vehicles. The following information shall be maintained for transactions of motor vehicles:
a.	The name and address of the secondary metals recycler or salvage yard.
b.	The name, initials, or other identification of the individual entering the information.
c.	The date of the transaction.
d.	A description of the motor vehicle, including the make and model to the extent practicable.
e.	The vehicle identification number (VIN) of the vehicle.
f.	The amount of consideration given for the motor vehicle.
g.	A written statement signed by the seller or the seller's agent certifying that the seller or the seller's agent has the lawful right to sell and dispose of the motor vehicle.
h.	The name and address of the person from whom the motor vehicle is being purchased.
i.	A photocopy or electronic scan of a valid drivers license or identification card issued by the North Carolina Division of Motor Vehicles of the person delivering the regulated metals property to the secondary metals recycler, or in lieu thereof, any other identification card containing a photograph of the seller as issued by any State or federal agency of the United States: Provided, that if the buyer has a copy of the seller's photo identification on file, the buyer may reference the identification that is on file, without making a separate photocopy for each transaction. If seller has no identification as described above, the secondary metals recycler, salvage yard, and any other person, firm, or corporation shall not complete the transaction.
A secondary metals recycler, salvage yard, or any other person, firm, or corporation shall maintain the information required under this subdivision for not less than two years from the date of the purchase of the motor vehicle.
(2)	Inspection of motor vehicles and records. – At anytime it appears a secondary metals recycler, salvage yard, or any other person, firm, or corporation, involved in scrap metal operations, is open for business, a law enforcement officer shall have the right to inspect the following:
a.	Any and all motor vehicles in the possession of the secondary metals recycler, the salvage yard, or any other person, firm, or corporation involved in the scrap metal operations.
b.	Any records required to be maintained under subdivision (1) of this section.
(b)	Right to Restitution. – The court may order a defendant to make restitution to the secondary metals recycler, salvage yard, or any other person, firm, or corporation for any damage or loss caused by the defendant arising out of an offense committed by the defendant.
(c)	Violations. – Any person who knowingly and willfully violates any of the provisions of this section shall be guilty of a Class 1 misdemeanor for a first offense. A second or subsequent violation of this section is a Class I felony.
(d )	Confiscation of Vehicle or Tools Used in Illegal Sale. – Any vehicle or tools used in the commission of an illegal sale under this section may be seized by law enforcement, provided however, that no vehicle used by any person in the transaction of a sale of regulated metals is subject to forfeiture unless it appears that the owner or other person in charge of the motor vehicle is a consenting party or privy to the commission of a crime and a forfeiture of the vehicle encumbered by a bona fide security interest is subject to the interest of the secured party who had no knowledge of or consented to the act.
Whenever property is forfeited under this section, the law enforcement agency having custody of it may:
(1)	Retain the property for official use.
(2)	Sell any forfeited property which is not required to be destroyed by law and which is not harmful to the public, provided that the proceeds are remitted to the Civil Fines and Forfeitures Fund established pursuant to G.S. 115C‑457.1.
(3)	Transfer any vehicle or tools which are forfeited under the provisions of this section to the North Carolina Department of Justice when, in the discretion of the presiding judge and upon application of the North Carolina Department of Justice, said vehicle may be of official use to the North Carolina Department of Justice.
(4)	Upon determination by the director or head of any law enforcement agency that a vehicle or tools transferred to the agency, pursuant to the provisions of this section, is of no further use to the agency for use in official investigations, any vehicle or tools may be sold as surplus property in the same manner as other vehicles owned by the law enforcement agency and the proceeds from such sale shall be remitted to the Civil Fines and Forfeitures Fund established pursuant to G.S. 115C‑457.1.
(e)	Exemptions. – For purposes of this part, the term "motor vehicle" shall not include motor vehicles which have been mechanically flattened, crushed, baled, or logged and sold for purposes of scrap metal only.
(f)	Preemption. – No local government shall enact any local law or ordinance regulating secondary metals recyclers, salvage yards, or any other person, firm, or corporation involved in secondary metals operations.
SECTION 2.  This act becomes effective December 1, 2007, and applies to offenses committed on or after that date.