AN ACT to amend the laws governing the purchase and sale of catalytic converters that are not attached to a motor vehicle.

The General Assembly of North Carolina enacts:

SECTION 1.  G.S. 66‑420 reads as rewritten:

§ 66‑420.  Definitions.

The following definitions apply in this Part:

(1)        Cash card system. – A system of payment that provides payment in cash or in a form other than cash and that when providing payment in the form of cash (i) captures a photograph of the seller at the time payment is received and (ii) uses an automated cash dispenser, including, but not limited to, an automated teller machine.

(1a)      Catalytic converter. – Motor vehicle exhaust system parts that are used for controlling the exhaust emissions from motor vehicles and that contain a catalyst metal, including the materials inside a catalytic converter which contains precious metals.

(1b)      Copper. – Nonferrous metals, including, but not limited to, copper wire, copper clad steel wire, copper pipe, copper bars, copper sheeting, copper tubing and pipe fittings, and insulated copper wire. The term shall not include brass alloys, bronze alloys, lead, nickel, zinc, or items not containing a significant quantity of copper.

….

SECTION 2.  G.S. 66‑421(b) reads as rewritten:

(b)      Records Required. – A secondary metals recycler shall maintain an electronic record of all purchase transactions in which the secondary metals recycler purchases regulated metals property. The record of each transaction shall contain the following information:

…

(12)      In transactions involving catalytic converters that are not attached to a vehicle, a secondary metals recycler purchasing the catalytic converters from a manufacturing, industrial, government, or other commercial vendor that generates and sells such converters shall make and retain a copy of the receipt of each purchase, including the name and address of the seller, the date, time, and place of the transaction, and the number of used, detached catalytic converters or pounds of catalyst metal purchased.

SECTION 3.  G.S. 66‑424 reads as rewritten:

§ 66‑424.  Prohibited activities and transactions.

…

(d)       It shall be unlawful for any person that is not a secondary metals recycler to purchase do any of the following:

(1)        Purchase a used catalytic converter not attached to a vehicle.

(2)        Solicit or advertise for the sale or purchase of a used catalytic converter not attached to a vehicle.

(e)        The provisions of this section do not apply to a used and detached catalytic converter that has been tested, certified, and labeled, or otherwise approved for reuse, and being bought or sold for purposes of reuse, in accordance with the federal Clean Air Act (42 U.S.C. § 7401 et seq.) and regulations under the Clean Air Act, as they may, from time to time, be amended.

SECTION 4.  G.S. 66‑427 reads as rewritten:

§ 66‑427.  Exemptions.

This Part does not apply to:to any of the following:

(1)        Purchases Except for catalytic converters that are not attached to a vehicle, purchases of regulated metals property from a manufacturing, industrial, government, or other commercial vendor that generates or and sells regulated metals property in the ordinary course of its business.

(2)        Purchases of regulated metals property that involve only beverage containers, except that G.S. 66‑423 shall apply in that case.

(3)        Used and detached catalytic converters that have been tested, certified, and labeled, or otherwise approved for reuse, and being bought or sold for purposes of reuse, in accordance with the federal Clean Air Act (42 U.S.C. § 7401 et seq.) and regulations under the Clean Air Act, as they may, from time to time, be amended.

SECTION 5.  G.S. 66‑429(a) reads as rewritten:

(a)      Punishment Generally. – Unless the conduct is covered by some other provision of law providing greater punishment, any the following penalties apply for a violation of the provisions of this Part:

(1)        Any person knowingly and willingly violating any of the provisions of this Part involving the sale or purchase of a catalytic converter shall be guilty of a Class I felony, which shall include a fine of one thousand dollars ($1,000) for each violation. Each sale or purchase punishable under this subdivision shall constitute a separate offense.

(2)        Any person knowingly and willfully violating any of the provisions of this Part not otherwise covered under subdivision (1) of this subsection shall be guilty of a Class 1 misdemeanor for a first offense. A second or subsequent violation of this Part is a Class I felony. In addition to any other punishment imposed for a violation of this Part, any person knowingly and willfully violating any of the provisions of this Part involving the purchase of a catalytic converter shall be punished by a fine of one thousand dollars ($1,000) for each violation.

SECTION 6.  G.S. 66‑430 reads as rewritten:

§ 66‑430.  Restitution.

The court may order a defendant to make restitution to the secondary metals recycler or property owner, as appropriate, for any damage or loss caused by the defendant and arising out of a violation of G.S. 14‑71, G.S. 14‑71.1, G.S. 14‑72, G.S.14‑159.4, G.S. 66‑424(a)(3), G.S. 66‑424(a)(3a), or G.S. 66‑424(a)(4) G.S. 66‑424(a)(4), or G.S. 66‑424(d)(2) committed by the defendant.

SECTION 7.  Article 45 of Chapter 66 of the General Statutes is amended by adding a new section to read:

§ 66‑432.  Forfeiture of catalytic converters sold, purchased, solicited, or advertised in violation of this Part.

Catalytic converters not attached to a vehicle that are sold or purchased in violation of this Part, or that are used in a solicitation or advertisement in violation of this Part, are contraband and subject to the seizure and forfeiture provisions of G.S. 14‑2.3.

SECTION 8.  Sections 3, 5, 6, and 7 of this act become effective December 1, 2023, and apply to offenses committed on or after that date. Section 2 of this act becomes effective December 1, 2023, and applies to purchases and transactions on or after that date. The remainder of this act becomes effective December 1, 2023.