AN ACT to require secondary purchasers of motor vehicles FOR SCRAP METAL OR SALVAGE PARTS TO MAINTAIN RECORDS, AND TO AMEND THE JUNKED MOTOR VEHICLE LAW APPLICABLE TO THE CITY OF MONROE.

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)	Records for Scrap or Parts. – A secondary metals recycler, as defined in G.S. 66‑11(a)(3), and a salvage yard, as defined in G.S. 20‑137.7(6), 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 or salvage yard may purchase a motor vehicle without a certificate of title, if the motor vehicle is 10 model years old or older and the secondary metals recycler or salvage yard comply with the following requirements:
(1)	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 Division of Motor Vehicles of the seller of the motor vehicle, or seller's agent, to the secondary metals recycler or salvage yard, 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 in this sub‑subdivision, the secondary metals recycler or salvage yard shall not complete the transaction.
(2)	Maintain the information required under subdivision (1) of this subsection for not less than two years from the date of the purchase of the motor vehicle.
(b)	Inspection of Motor Vehicles and Records. – At any time it appears a secondary metals recycler, salvage yard, or any other person involved in secondary metals operations is open for business, a law enforcement officer shall have the right to inspect the following:
(1)	Any and all motor vehicles in the possession of the secondary metals recycler, the salvage yard, or any other person involved in secondary metals operations.
(2)	Any records required to be maintained under subsection (a) of this section.
(c)	Violations. – Any person who knowingly and willfully violates any of the provisions of this section, or any person who falsifies the statement required under subsection (a)(1)g. 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. The court may order a defendant seller under this subsection to make restitution to the secondary metals recycler or salvage yard for any damage or loss caused by the defendant seller arising out of an offense committed by the defendant seller.
(d)	Confiscation of Vehicle or Tools Used in Illegal Sale. – Any motor vehicle used to transport another motor vehicle illegally sold under this section may be seized by law enforcement and is subject to forfeiture by the court, 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 subsection by order of the court, the law enforcement agency having custody of the property shall 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.
(e)	Exemptions. – As used in this section, 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 with regards to the regulation of the sale of motor vehicles to secondary metals recyclers or salvage yards."
SECTION 2.  G.S. 20‑61 reads as rewritten:
"§ 20‑61.  Owner dismantling or wrecking vehicle to return evidence of registration.
Except as permitted under G.S. 20‑62.1, any owner dismantling or wrecking any vehicle shall forward to the Division the certificate of title, registration card and other proof of ownership, and the registration plates last issued for such vehicle, unless such plates are to be transferred to another vehicle of the same owner. In that event, the plates shall be retained and preserved by the owner for transfer to such other vehicle. No person, firm or corporation shall dismantle or wreck any motor vehicle without first complying with the requirements of this section. The Commissioner upon receipt of certificate of title and notice from the owner thereof that a vehicle has been junked or dismantled may cancel and destroy such record of certificate of title."
SECTION 3.	G.S. 160A‑303.2(a) reads as rewritten:
"(a)	A municipality may by ordinance regulate, restrain or prohibit the abandonment of junked motor vehicles on public grounds and on private property within the municipality's ordinance‑making jurisdiction upon a finding that such regulation, restraint or prohibition is necessary and desirable to promote or enhance community, neighborhood or area appearance, and may enforce any such ordinance by removing or disposing of junked motor vehicles subject to the ordinance according to the procedures prescribed in this section. The authority granted by this section shall be supplemental to any other authority conferred upon municipalities. Nothing in this section shall be construed to authorize a municipality to require the removal or disposal of a motor vehicle kept or stored at a bona fide "automobile graveyard" or "junkyard" as defined in G.S. 136‑143.
For purposes of this section, the term "junked motor vehicle" means a vehicle that does not display a current license plate and that:
(1)	Is partially dismantled or wrecked; or
(2)	Cannot be self‑propelled or moved in the manner in which it originally was intended to move; or
(3)	(applicable to most localities) Is more than five years old and appears to be worth less than one hundred dollars ($100.00); [or]
(4)	Is more than five years old and appears to be worth less than five hundred dollars ($500.00). This subdivision applies only to the Cities of Belmont, Bessemer City, Cherryville, Gastonia, Monroe and Mount Holly, and the Towns of Ahoskie, Cramerton, Dallas, Farmville, LaGrange, Mint Hill, Louisburg and Stanley."
SECTION 4.	Section 3 of this act is effective when this act becomes law.  The remainder of this act becomes effective December 1, 2007 and applies to offenses committed and motor vehicles purchased on or after that date.
In the General Assembly read three times and ratified this the 1st day of August, 2007.

	s/	 Beverly E. Perdue
	 President of the Senate

	s/	 Joe Hackney
	 Speaker of the House of Representatives

	s/	 Michael F. Easley
	 Governor

Approved 1:00 p.m. this 30th day of August, 2007