SENATE BILL 141

56th legislature - STATE OF NEW MEXICO - second session, 2024

INTRODUCED BY

George K. Muñoz

 

 

 

 

 

AN ACT

RELATING TO RECYCLED METALS; ADDING PALLADIUM, PLATINUM AND RHODIUM TO THE DEFINITION OF "REGULATED MATERIAL"; ADDING REQUIREMENTS TO PURCHASE OR OTHERWISE RECEIVE A CATALYTIC CONVERTER; REQUIRING A RECORD OF THE PURCHASE OF PALLADIUM, PLATINUM OR RHODIUM; REQUIRING THAT A SECONDHAND METAL DEALER REPORT TO THE APPLICABLE LAW ENFORCEMENT AGENCY FOR PURCHASES OF OR WHEN A SELLER FAILS TO PROVIDE A PRIOR RECEIPT OR NOTARIZED DECLARATION FOR A CATALYTIC CONVERTER, PALLADIUM, PLATINUM OR RHODIUM; CREATING A DATABASE TO TRACK DATA; REQUIRING THAT A SECONDHAND METAL DEALER PAY BY CHECK FOR A CATALYTIC CONVERTER, PALLADIUM, PLATINUM OR RHODIUM; ALLOWING THE INSPECTION OF RECORDS OF TRANSACTIONS INVOLVING CATALYTIC CONVERTERS, PALLADIUM, PLATINUM OR RHODIUM; IMPOSING CRIMINAL PENALTIES.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     SECTION 1. Section 57-30-2 NMSA 1978 (being Laws 2008, Chapter 29, Section 2, as amended) is amended to read:

     "57-30-2. DEFINITIONS.--As used in the Sale of Recycled Metals Act:

          A. "aluminum material" means a product made from aluminum, an aluminum alloy or an aluminum byproduct. "Aluminum material" includes an aluminum beer keg but does not include other types of aluminum cans used to contain a food or beverage;

          B. "bronze material" means:

                (1) a cemetery vase, receptacle or memorial made from bronze;

                (2) bronze statuary; or

                (3) material readily identifiable as bronze;

          C. "business day" means any calendar day except Sunday and the following holidays: New Year's day; President's day; Memorial day; Independence day; Labor day; Indigenous Peoples' day; Armistice day and Veterans' day; Thanksgiving day; Christmas day; Martin Luther King, Jr.'s birthday; and any other legal public holiday of the state of New Mexico or the United States;

          D. "copper or brass material" means:

                (1) insulated or noninsulated copper wire, hardware or cable of the type used by a public utility, commercial mobile radio service carrier or common carrier that consists of at least twenty-five percent copper; or

                (2) a copper or brass item of a type commonly used in construction or by a public utility, commercial mobile radio service carrier or common carrier;

          E. "department" means the regulation and licensing department;

          F. "lead material" means:

                (1) a lead-acid battery; or

                (2) material readily identifiable as being made of or containing lead;

          G. "peace officer" means any full-time salaried and commissioned or certified law enforcement officer of a police or sheriff's department that is part of or administered by the state or a political subdivision of the state;

          H. "personal identification document" means:

                (1) a driver's license;

                (2) a military identification card; or

                (3) a passport issued by the United States or by another country and recognized by the United States;

          I. "regulated material" means:

                (1) aluminum material;

                (2) bronze material;

                (3) copper or brass material;

                (4) steel material;

                (5) lead material;

                (6) a utility access cover;

                (7) a water meter cover;

                (8) a road or bridge guard rail;

                (9) a highway or street sign;

                (10) a traffic directional or control sign or signal; [or]

                (11) a catalytic converter that is not part of an entire motor vehicle; or

                (12) palladium, platinum or rhodium;

          J. "secondhand metal dealer" means a scrap metal processor in the business of operating or maintaining a scrap metal yard in a physical location in which scrap metal or cast-off regulated material is purchased for shipment, sale or transfer;

          K. "steel material" means a product made from an alloy of iron, chromium, nickel or manganese, including stainless steel beer kegs; and

          L. "superintendent" means the superintendent of regulation and licensing."

     SECTION 2. Section 57-30-2.4 NMSA 1978 (being Laws 2012, Chapter 29, Section 16 and Laws 2012, Chapter 33, Section 16, as amended) is amended to read:

     "57-30-2.4. RESTRICTED TRANSACTIONS--ADDITIONAL DOCUMENTATION REQUIRED--REQUIRED RECORD AND PAYMENT FOR CATALYTIC CONVERTERS.--

          A. A secondhand metal dealer shall not knowingly purchase or otherwise receive any of the following without written documentation indicating that the seller or offeror is the rightful owner or has permission from the rightful owner and that the material was otherwise lawfully obtained:

                (1) infrastructure grade regulated material that has been burned to remove insulation, unless the seller can produce written proof that the regulated material was lawfully burned;

                (2) regulated material where the manufacturer's make, model, serial or personal identification number or other identifying marks engraved or etched upon the material have been conspicuously removed or altered;

                (3) regulated material marked with the name, initials or otherwise identified as the property of an electrical company, a telephone company, a cable company, a water company or other utility company, a railroad or a governmental entity;

                (4) a utility access cover;

                (5) a water meter cover;

                (6) a road or bridge guard rail;

                (7) a highway or street sign;

                (8) a traffic directional or control sign or signal;

                (9) a metal beer keg that is clearly marked as being the property of the beer manufacturer; or

                (10) a catalytic converter that is not part of an entire motor vehicle.

          B. The department shall promulgate rules that more specifically describe the type of documentation required before a secondhand metal dealer may engage in a transaction described in this section.

          C. A secondhand metal dealer shall not purchase or otherwise receive any regulated material that the secondhand metal dealer knows is not lawfully possessed by the person offering to sell or provide the regulated material.

          D. A secondhand metal dealer shall not knowingly purchase or otherwise receive a catalytic converter unless [(1)] the seller or offeror [presents a] verifies the seller's or offeror's identity by presenting a valid personal identification document and [(2)] the secondhand metal dealer makes a record of the transaction, to be maintained for at least three years from the date of the transaction, that shall include:

                [(a)] (1) a photocopy or digital image of the seller's or offeror's personal identification document;

                [(b)] (2) a written statement signed by the seller or offeror certifying that the seller or offeror has the lawful right to sell and dispose of the catalytic converter;

                (3) the date, [and] time and place of the transaction;

                (4) the amount paid for the catalytic converter;

                [(c)] (5) the name, address, telephone number, occupation and signature of the seller or offeror;

                [(d)] (6) the license plate number and vehicle identification number of the vehicle used to transport the catalytic converter to the secondhand metal dealer, if applicable;

                [(e)] (7) a photocopy or digital image of the legal document or affidavit demonstrating ownership by the seller or offeror; [and

                (f) photographs] (8) a digital image of the catalytic converter;

                (9) a digital image of the seller or offeror;

                (10) a description, including serial numbers and other identifying marks, when practical, of the catalytic converter; and

                (11) a copy of a receipt provided by the seller or offeror that describes with particularity the:

                     (a) catalytic converter that is being offered for sale;

                     (b) name of the person or business that issued the receipt;

                     (c) date of purchase by the seller or offeror; and

                     (d) price, if any, of the catalytic converter when obtained by the seller or offeror; or

                (12) if a copy of a receipt is not available, a notarized declaration by the seller or offeror that describes with particularity the:

                     (a) catalytic converter that is being offered for sale;

                     (b) name of the person who sold or otherwise transferred the item to the seller or offeror;

                     (c) date of sale or transfer of the item; and

                     (d) price, if any, of the catalytic converter when obtained by the seller or offeror.

          E. The secondhand metal dealer, after purchasing or otherwise receiving a catalytic converter, shall:

                (1) attach a tag to the catalytic converter that includes the year, make, model, license plate number and vehicle identification number of the vehicle from which the catalytic converter was removed and the name of the seller or offeror;

                (2) report the purchase to the applicable law enforcement agency, the record of which shall be maintained in the department of public safety's database; and

                (3) maintain possession of the catalytic converter for a period of at least sixty days before selling or otherwise disposing of the catalytic converter.

          F. If the seller or offeror does not provide a copy of the receipt or notarized declaration as required by Subsection D of this section, the secondhand metal dealer shall not purchase or otherwise receive the catalytic converter and shall report the attempted sale to the applicable law enforcement agency.

          G. A record of transaction made pursuant to Subsection D of this section may be examined at any time during normal business hours by a peace officer or the attorney general, a prosecuting attorney, the chief law enforcement officer of the investigating law enforcement agency or the superintendent or the designees of those individuals.

          H. Payment for a catalytic converter shall be made by check payable to the seller. The check may be mailed to the address shown on the seller's personal identification document or picked up personally by the seller at the secondhand metal dealer's place of business."

     SECTION 3. Section 57-30-5 NMSA 1978 (being Laws 2008, Chapter 29, Section 5, as amended) is amended to read:

     "57-30-5. RECORD OF PURCHASE--REQUIREMENTS FOR PALLADIUM, PLATINUM OR RHODIUM.--

          A. A secondhand metal dealer in this state shall keep an accurate and legible written record, to be maintained for at least three years from the date of the transaction, in a form approved by the department, of each purchase made in the course of the dealer's business of:

                (1) copper or brass material;

                (2) bronze material;

                (3) lead material;

                (4) aluminum material in excess of ten pounds; [or]

                (5) steel material in excess of one ton, except that a written record shall be kept of each purchase of a stainless steel beer keg; or

                (6) palladium, platinum or rhodium.

          B. The record shall be in English and shall include:

                (1) the place and date of the purchase;

                (2) the name and address of each person from whom the regulated material is purchased or obtained;

                (3) [the identifying number] a copy of the personal identification document of each person from whom the regulated material is purchased or obtained;

                (4) the year, make, model and license plate number of the motor vehicle used to transport the regulated material;

                (5) a description made in accordance with the custom of the trade of the type and quantity of regulated material purchased;

                (6) the statement required by Paragraph (2) of Subsection A of Section 57-30-4 NMSA 1978; and

                (7) the digital images, receipt or notarized declaration and written documentation required for certain transactions pursuant to Subsections C and D of this section and, if applicable, Section 57-30-2.4 NMSA 1978 [if applicable].

          C. A secondhand metal dealer may take a digital [photograph] image, with a date and time stamp, of:

                (1) the seller of the regulated material; and

                (2) the regulated material in the form in which it was purchased or obtained by the secondhand metal dealer.

          D. For the purchase of palladium, platinum or rhodium, a secondhand metal dealer shall also:

                (1) require that the seller verify the seller's identity by presenting a valid personal identification document;

                (2) take a digital image of:

                     (a) the seller of the palladium, platinum or rhodium;

                     (b) the seller's personal identification document; and

                     (c) each individual item of palladium, platinum or rhodium in the form in which it was purchased or obtained by the secondhand metal dealer;

                (3) make a copy of a receipt provided by the seller or, if a receipt is not available, a notarized declaration by the seller, that describes with particularity:

                     (a) the exact item that is being offered for sale;

                     (b) the name of the person who issued the receipt or, in the case of a notarized declaration, the name of the person who sold or otherwise transferred the item to the seller;

                     (c) the date of sale of the item; and

                     (d) the price of the item when obtained by the seller; and

                (4) make payment by check payable to the seller. The check may be mailed to the address shown on the seller's personal identification document or picked up personally by the seller at the secondhand metal dealer's place of business.

          E. If the seller does not provide a copy of the receipt or notarized declaration pursuant to Paragraph (3) of Subsection D of this section, the secondhand metal dealer shall not purchase the palladium, platinum or rhodium and shall report the attempted sale to the applicable law enforcement agency."

     SECTION 4. Section 57-30-6 NMSA 1978 (being Laws 2008, Chapter 29, Section 6, as amended by Laws 2012, Chapter 29, Section 5 and by Laws 2012, Chapter 33, Section 5) is amended to read:

     "57-30-6. PRESERVATION OF RECORDS.--A secondhand metal dealer shall preserve each record required by Section 57-30-5 NMSA 1978 until the [first] third anniversary of the date the record was made."

     SECTION 5. Section 57-30-7 NMSA 1978 (being Laws 2008, Chapter 29, Section 7, as amended by Laws 2012, Chapter 29, Section 6 and by Laws 2012, Chapter 33, Section 6) is amended to read:

     "57-30-7. INSPECTION OF RECORDS [BY PEACE OFFICERS]--HOLDS ON PROPERTY.--

          A. Upon request, a secondhand metal dealer shall produce to a peace officer, the attorney general, a prosecuting attorney, the chief law enforcement officer of the investigating law enforcement agency or the superintendent or the designees of those individuals during the dealer's usual business hours the requested record of purchase as required by [Section] Sections 57-30-2.4 and 57-30-5 NMSA 1978.

          B. If a peace officer determines, through an investigation or examination of the records kept by the secondhand metal dealer, that the dealer may be in possession of stolen property or property that constitutes evidence in a criminal investigation, the peace officer may place a hold on the property prohibiting the sale or removal of the property from the premises. The hold may remain in effect for up to five days or until the hold is lifted or the property is seized, whichever occurs earlier.

          C. The inspecting peace officer shall inform the secondhand metal dealer of the person's status as a peace officer."

     SECTION 6. A new section of the Sale of Recycled Metals Act is enacted to read:

     "[NEW MATERIAL] LAW ENFORCEMENT DATABASE--PREVENTION PROGRAM.--

          A. The department of public safety shall establish a database for collecting and maintaining information reported pursuant to the Sale of Recycled Metals Act.

          B. The department of public safety shall initiate a program to encourage residents to take measures to prevent and deter the theft of catalytic converters, including having auto service centers paint catalytic converters with high temperature orange paint appropriate for automobiles and engrave the vehicle identification number on the catalytic converter."

     SECTION 7. A new section of the Sale of Recycled Metals Act is enacted to read:

     "[NEW MATERIAL] CRIMINAL PENALTIES.--

          A. Any person who violates or falsifies a statement required by Section 57-30-2.4 NMSA 1978 that involves a catalytic converter is guilty of a fourth degree felony and shall be sentenced in accordance with the provisions of Section 31-18-15 NMSA 1978.

          B. Any person who violates or falsifies a statement required by Section 57-30-2.4 NMSA 1978 that does not involve a catalytic converter is guilty of a misdemeanor and shall be sentenced in accordance with the provisions of Section 31-19-1 NMSA 1978.

          C. Any person who violates or falsifies a statement required by Section 57-30-5 NMSA 1978 that involves the purchase of palladium, platinum or rhodium is guilty of a fourth degree felony and shall be sentenced in accordance with the provisions of Section 31-18-15 NMSA 1978.

          D. Any person who violates or falsifies a statement required by Section 57-30-5 NMSA 1978 that does not involve the purchase of palladium, platinum or rhodium is guilty of a misdemeanor and shall be sentenced in accordance with the provisions of Section 31-19-1 NMSA 1978."

     SECTION 8. Section 30-15-8 NMSA 1978 (being Laws 2022, Chapter 56, Section 50) is amended to read:

     "30-15-8. CRIMINAL DAMAGE TO PROPERTY BY THEFT OR ATTEMPTED THEFT OF REGULATED MATERIAL--PENALTY.--

          A. Criminal damage to property by theft or attempted theft of regulated material consists of the unlawful taking or attempted taking of any regulated material from another that results in any damage to real or personal property. Whoever commits criminal damage to property by theft or attempted theft of regulated material resulting in property damage or property loss, based on the fair market value of that damage or loss, in an amount of:

                (1) less than one thousand dollars ($1,000) is guilty of a petty misdemeanor;

                (2) one thousand dollars ($1,000) or more but less than two thousand five hundred dollars ($2,500) is guilty of a misdemeanor; or

                (3) two thousand five hundred dollars ($2,500) or more is guilty of a fourth degree felony.

          B. Whoever commits criminal damage to property by theft or attempted theft of a catalytic converter is guilty of a fourth degree felony.

          [B.] C. For the purposes of this section:

                (1) "aluminum material" means wire or coil products made from aluminum, an aluminum alloy or an aluminum byproduct;

                (2) "copper or brass material" means:

                     (a) insulated or noninsulated copper wire, hardware or cable of the type used by a public utility, commercial mobile radio service carrier or common carrier that consists of at least twenty-five percent copper; or

                     (b) a copper or brass item of a type commonly used in construction or by a public utility, commercial mobile radio service carrier or common carrier;

                (3) "regulated material" means:

                     (a) aluminum material;

                     (b) copper or brass material;

                     (c) steel material;

                     (d) a utility access cover;

                     (e) a water meter cover;

                     (f) a road or bridge guard rail;

                     (g) a highway or street sign;

                     (h) a traffic directional or control sign or signal; or

                     (i) a catalytic converter that is not part of an entire motor vehicle; and

                (4) "steel material" means infrastructure-grade or construction products made from an alloy of iron, chromium, nickel or manganese.

          [C.] D. Nothing in this section shall be construed to preclude a claim made pursuant to any other section of law."

     SECTION 9. APPLICABILITY.--The provisions of Sections 2 through 4 of this act apply to transactions made on or after January 1, 2025.

     SECTION 10. EFFECTIVE DATE.--The effective date of the provisions of this act is January 1, 2025.

- 18 -