Modifies and creates new provisions relating to regulation of certain metals

Under the act, no metal recycling entity or scrap metal yard shall accept scrap metal or metal parts, except as an incident to the sale, repair, rebuilding or servicing of vehicles.

The Director of the Department of Revenue shall designate businesses that deal with scrap metal and metal parts as a "metal recycling entity" or "scrap metal yard" to which the Department issues certain business licenses.

Any person who accepts certain metals in violation of the act, shall be guilty of a class A misdemeanor punishable by a fine. This provision shall not preclude the person to be prosecuted for any other applicable criminal offense. After August 28, 2026, an application for a license may be denied, or any current license may be revoked or suspended by the Department if the applicant or licensee committed certain acts, as described in the act.

Any person licensed or required to be licensed under the act shall maintain certain records for three years on copper, brass, or bronze material, as described in the act.

Subject to the time frame described in the act, a metal recycling entity or a scrap metal yard shall send an electronic transaction report to the Department on the Department's website using a statewide electronic reporting system established by the Department, as described in the act. The report shall contain certain information required to be recorded as described in the act, except that the disclosure of the weight and purchase price of the regulated metal shall not be required.

The entity or yard may submit the transaction report by fax subject to certain requirements as described in the act.

The Department shall post on its website a summary of the reports under the act. Such reports shall only be accessible to metal recycling entities and scrap metal yards that are required to submit information to the Department under the act. Requirements for the summary are described in the act.

The Department shall make available on its website a publicly accessible list of all licensed metal recycling entities and scrap metal yards. The list shall contain certain information described in the act. Information on the list shall not be subject to public disclosure, except for law enforcement purposes.

The Department may promulgate rules for the development of a statewide electronic reporting system to track the sales of regulated metals, as described in the act.

Every purchaser or collector of, or dealer in, junk, scrap metal, or secondhand property for resale shall only make purchases or trades between 7 a.m. and 7 p.m.

The act provides that there shall be a separate record for each transaction involving any regulated metal. The act repeals the list of items to be on such record as described in current law. The record shall contain a photo of any regulated metal purchased and an affidavit stating that the seller owns and has the authority to sell the metal.

Anyone who knowingly purchases a stolen regulated metal shall be subject to certain penalties described in current law.

No metal recycling entity or scrap metal yard shall purchase any regulated metal from certain sellers, as described in the act.

A metal recycling entity or scrap metal yard shall maintain in a prominent place of the entity or yard's place of business in open view to the seller of a regulated metal certain notices, as described in the act.

A metal recycling entity or scrap metal yard making a payment in any amount, instead of $500 or more as currently provided, shall make such payment by issuing a prenumbered check as described in current law.

The act modifies certain provisions relating to cash payments and provides that no scrap metal dealer, metal recycling entity, or scrap metal yard shall pay in the form of cash. This provision shall not apply to any transaction for which the seller has an existing business relationship with a metal recycling entity or scrap metal yard and is known to the entity or yard making the purchase to be an established business.

The Department shall provide to every scrap metal dealer, metal recycling entity, or scrap metal yard an electronic list with the names and descriptions of persons known to be receivers of stolen property. No scrap metal dealer, metal recycling entity, or scrap metal yard shall purchase or receive regulated metals from any person identified on the list.

The act is identical to provisions in SCS/HB 2383 (2026). JULIA SHEVELEVA