Senate Commerce Committee Statement to Senate, No. 249 — State of New Jersey (March 14, 2022)

Summary

A Senate Commerce Committee statement to the Senate on Senate Bill No. 249, State of New Jersey, dated March 14, 2022, reporting the bill favorably with committee amendments. As amended, the bill adds a used catalytic converter not attached to a motor vehicle to the definition of "scrap metal" and requires scrap metal businesses to keep, for at least five years, records of purchases over 100 pounds or $50, whichever is less. For a converter bought from a seller that is not a registered business dealing in motor vehicle parts, the business must also keep the Vehicle Identification Number and a copy of the title, registration, repair receipt, or bill of sale. Offering such a converter for sale would be limited to a scrap metal business unless the seller is such a registered business.

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SENATE COMMERCE COMMITTEE

STATEMENT TO

SENATE, No.
249

with
committee amendments

STATE
OF NEW JERSEY

DATED: MARCH
14, 2022

The
Senate Commerce Committee reports favorably and with committee amendments
Senate Bill No. 249.

As
amended, the bill modifies existing law on the regulation of scrap metal
businesses to incorporate certain provisions concerning catalytic converters.

The
bill amends the definition of “scrap metal” to include a used catalytic
converter, in whole or in part, if the used catalytic converter is not attached
to a motor vehicle.

The
bill requires the owner of a scrap metal business to maintain, for at least
five years, a record of all receipts or purchases of scrap metal in excess of
100 pounds or $50, whichever is less, including, among other items , the date of receipt or purchase
of the scrap metal and the name and address of the person delivering or selling
the scrap metal. The bill also expands the information the scrap metal
business is to retain if a used catalytic converter not attached to a motor
vehicle is purchased by the business from a seller that is not a registered
business that, in the regular course of business, collects, stores, or sells a
used catalytic converter or any other motor vehicle part. That information
includes:

(1) the Vehicle Identification Number of the motor
vehicle from which the catalytic converter was taken; and

(2) a copy of the certificate of title or
registration, a receipt from a transaction of repair, or a bill of sale for the
motor vehicle from which the catalytic converter was taken.

The bill also provides that the owner of a scrap metal
business is required to purchase or attempt to purchase only from a person delivering
or selling scrap metal who provides the information required.

Lastly, the bill provides that offering or attempting
to offer for sale a used catalytic converter, in whole or in part, that is not
attached to a motor vehicle is to be limited to a scrap metal business, unless
the seller of the used catalytic converter is a registered business that, in
the regular course of business, collects, stores, or sells a catalytic
converter or any other motor vehicle part.

This bill was pre-filed for introduction in the
2022-2023 session pending technical review. As reported, the bill includes the
changes required by technical review, which has been performed.

COMMITTEE
AMENDMENTS :

The committee amended the bill to remove the existing
provisions of the bill and replace them with provisions that:

(1) amend the definition of “scrap metal” to include a used catalytic converter,
in whole or in part, if the used catalytic converter is not attached to a motor
vehicle;

(2) expand
the information the owner of a scrap metal business is to retain if a used
catalytic converter not attached to a motor vehicle is purchased from certain
sellers by the scrap metal business;

(3) provide that the owner of a scrap metal business
is required to purchase or attempt to purchase only from a person delivering or
selling scrap metal who provides the information required pursuant to the bill;
and

(4) provide that offering or attempting to offer for
sale a used catalytic converter, in whole or in part, that is not attached to a
motor vehicle is to be limited to a scrap metal business, unless the seller of
the used catalytic converter is a registered business that, in the regular
course of business, collects, stores, or sells a catalytic converter or any
other motor vehicle part.

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