HLS 22RS-3422 REENGROSSED
2022 Regular Session
HOUSE BILL NO. 1073 (Substitute for House Bill No. 801 by Representative GOUDEAU)
BY REPRESENTATIVES GOUDEAU, BACALA, BOURRIAQUE, BUTLER,
COUSSAN, DESHOTEL, DEVILLIER, ECHOLS, EDMONDS, FIRMENT,
FISHER, GAROFALO, GREEN, HARRIS, HORTON, HUVAL, MIKE JOHNSON,
LACOMBE, MCKNIGHT, MCMAHEN, NEWELL, ORGERON, PIERRE,
ROMERO, STAGNI, STEFANSKI, WHITE, AND ZERINGUE
SECONDHAND DEAL ERS: Provides relative to scrap metal recyclers
1 AN ACT
2To enact Part II-B of Chapter 21 of Title 37 of the Louisiana Revised Statutes of 1950, to
3 be comprised of R.S. 37:1891 through 1896, relative to scrap metal recyclers; to
4 provide for the sale and purchase of catalytic converters; to provide definitions; to
5 provide for fees; to provide for licensing requirements; to provide for record
6 keeping; to provide for exceptions; to provide for fines and penalties; and to provide
7 for related matters.
8Be it enacted by the Legislature of Louisiana:
9 Section 1. Part II-B of Chapter 21 of Title 37 of the Louisiana Revised Statutes of
101950, comprised of R.S. 37:1891 through 1896, is hereby enacted to read as follows:
11 PART II-B. CATALYTIC CONVERTER PURCHASERS
12 §1891. Short title
13 This Part shall be known and may be cited as the "Louisiana Catalytic
14 Converter Sales Law".
15 §1892. Definitions
16 For purposes of this Part, the following words have the following meanings:
17 (1) "Catalytic converter" means an exhaust emission control device that
18 reduces toxic gas and pollutants from internal combustion engines.
19 (2) "Catalytic converter purchaser" is a person licensed by the commission
20 to buy detached catalytic converters pursuant to the provisions of this Part.
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1 (3) "Commission" means the Louisiana Used Motor Vehicle Commission.
2 (4) "Person" includes any corporation, limited liability company, partnership,
3 or two or more persons having a joint or common interest.
4 §1893. License required; application
5 A. No person shall do business as a catalytic converter purchaser in this state
6 without having first obtained a business license from the commission. Any person
7 desiring a license as a catalytic converter purchaser shall make an application in
8 writing, specifying the address of the building where the business is to be carried on.
9 A license issued pursuant to this Chapter shall be good for two years.
10 B.(1) It shall be unlawful for any person, firm, association, corporation,
11 limited liability company, or trust to engage in the business of purchasing used
12 catalytic converters in this state without first obtaining a license as required by this
13 Section.
14 (2) Any person, firm, association, corporation, limited liability company, or
15 trust that engages in the business of purchasing used catalytic converters pursuant
16 to this Section shall obtain and hold a current license to engage in the business of
17 purchasing used catalytic converters.
18 C.(1) The commission shall create a form to be used as an application for
19 licensure as a purchaser of used catalytic converters and shall provide the form to an
20 applicant.
21 (2) The commission shall require all of the following information in the
22 application:
23 (a) The name of the applicant.
24 (b) The street address of applicant's principal place of business and each
25 additional place of business.
26 (c) The type of business organization of applicant.
27 (d) Whether the applicant has an established place of business and is
28 engaged in the pursuit, avocation, or business for which each license is applied.
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1 (e) Whether the applicant is able to properly conduct the business for which
2 each license is applied.
3 (f) Any other pertinent information consistent with the safeguarding of the
4 public interest and the public welfare.
5 (g) Any other information the commission deems necessary to enable it to
6 fully determine the qualifications and eligibility of the applicants to receive a license.
7 (3) The applicant shall sign the application prior to submission to the
8 commission.
9 (4)(a) Upon submission of an application, an applicant shall pay all
10 applicable fees in accordance with this Section. If an application is denied and the
11 license is not issued, the commission shall return all licensing fees to the applicant.
12 (b) Any licensee that submits a renewal application after the expiration date
13 of an existing license shall be subject to a late penalty of one hundred dollars in
14 addition to any penalty, fine, or cost assessed for operating without a license which
15 shall be paid to the commission.
16 (c) Any licensee having a previous license shall be presumed to be a renewal
17 applicant.
18 (d) Any licensee changing its name, address, or ownership shall notify the
19 commission within ten days of the change or be in violation of this Section.
20 (e) Any licensee ceasing to maintain its business shall surrender its license
21 to the commission within ten days and any failure to do so shall constitute a
22 violation.
23 D. The commission shall specify the location of the place of business on each
24 license issued. If the business location is changed, the commission shall be notified
25 immediately of the change and the commission may endorse the change of location
26 on the license without charge. The license shall be posted in a conspicuous place in
27 each place of business.
28 E. The commission shall promulgate rules to implement the provisions of this
29 Section.
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1 §1894. Exceptions
2 The provisions of this Part shall not apply to either of the following:
3 (1) A person engaged solely in the business of buying, selling, trading in, or
4 otherwise acquiring new motor vehicles.
5 (2) A person possessing not more than one detached catalytic converter if
6 there is documentation to indicate how the detached catalytic converter was acquired.
7 §1895. Requirements of purchaser and seller; record keeping
8 A. Except as otherwise provided for in this Section, it is unlawful for any
9 person to possess, obtain or otherwise acquire, transport, or sell more than one used,
10 detached catalytic converter or any nonferrous part of a catalytic converter without
11 providing all of the following documentation to law enforcement upon request:
12 (1) The name and address of the residence or place of business of the person
13 required to either keep the register and file reports or electronically maintain the data
14 and generate the requested reports.
15 (2) The date and place of each purchase.
16 (3) The name and address of the person or persons from whom the material
17 was purchased, including the distinctive number of each person's Louisiana driver's
18 license, driver's license from another state, passport, military identification, or
19 identification issued by a governmental agency or the United States Postal Service.
20 If the person cannot produce any form of identification as provided for in this
21 Paragraph at the time of purchase, the purchaser shall not complete the transaction.
22 (4) The motor vehicle license number of the vehicle or conveyance on which
23 such material was delivered.
24 (5) A full description and photograph of all such material purchased.
25 (6) A picture of the person from whom the material was purchased.
26 B. All information obtained pursuant to Subsection A of this Section shall
27 be kept for a period of three years and shall be made available for inspection by any
28 peace officer, law enforcement official, or commission official at any time during the
29 three-year period.
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1 C. Any person who purchases a used detached catalytic converter shall obtain
2 a signed statement from the seller prior to the purchase attesting that the catalytic
3 converter has been paid for or is owned by the seller. A failure of the purchaser to
4 obtain a statement from the seller shall be prima facie evidence of the fraudulent
5 intent and guilty knowledge on the part of the purchaser within the meaning of this
6 Part and shall be sufficient to warrant a conviction. A purchaser who obtains the
7 required statement from the seller shall be exonerated from any fraudulent, willful,
8 or criminal knowledge within the meaning of this Chapter.
9 D. It is unlawful to provide any false, fraudulent, altered or counterfeit
10 information or documentation as required by this Section.
11 §1896. Failure to comply; penalty
12 A. Anyone acting as an unlicensed catalytic converter purchaser in violation
13 of the provisions of this Part shall be fined not less than five hundred dollars and be
14 imprisoned not less than thirty days nor more than sixty days per violation as
15 provided for in Subsection D of this Section.
16 B. For a second offense, the violator shall be fined not more than two
17 thousand dollars and be imprisoned with or without hard labor for not more than two
18 years per violation as provided for in Subsection D of this Section.
19 C. For a third or subsequent offense, the violator shall be fined not more than
20 ten thousand dollars and be imprisoned with or without hard labor for not more than
21 five years per violation as provided for in Subsection D of this Section.
22 D. Each unlawfully obtained, possessed, or transported used, detached
23 catalytic converter is a separate violation that subjects the individual or entity to a
24 separate charge. Upon conviction, the court may order the individual or entity to pay
25 restitution for the value of the repair and replacement of the catalytic converter or be
26 held liable as otherwise provided by law.
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DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 1073 Reengrossed 2022 Regular Session Goudeau
Abstract: Prohibits a person from purchasing a used catalytic converter unless certain
conditions are met.
Proposed law defines "catalytic converter", "commission", "person", and "catalytic converter
purchaser".
Proposed law requires a person to be licensed in order to do business as a catalytic converter
purchaser.
A person applying for a license pursuant to proposed law shall make an application in
person.
Proposed law requires a licensed purchaser to hold a separate license for each place of
business where he purchases used catalytic converters.
Proposed law requires the Louisiana Used Motor Vehicle Commission (commission) to
create a form to be used as an application for licensure and provides the required information
the form is to contain.
Proposed law requires an applicant to sign the application and pay all applicable fees prior
to obtaining a license.
Proposed law requires a late fee be paid for a license renewal, if the original license is
expired prior to application for renewal.
A person who ceases to maintain a business shall surrender his license pursuant to proposed
law.
Proposed law requires the commission to indicate the business address on each license and
requires the license holder to notify the commission if the address changes.
The commission is required to promulgate rules to implement provisions of proposed law.
Proposed law does not apply to persons buying and selling new motor vehicles or persons
having one detached converter, if he can show where it originated through documentation.
Proposed law requires a seller of a used catalytic converter to provide certain documentation
to the law enforcement upon request.
Information collected pursuant to proposed law shall be maintained for three years.
A violation of proposed law subjects the person in violation to fees and imprisonment. The
amount of the fee and duration of the imprisonment increases with each subsequent
violation, and each catalytic converter purchased in violation of proposed law constitutes a
separate violation.
(Adds R.S. 37:1891-1896)
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Summary of Amendments Adopted by House
The House Floor Amendments to the engrossed bill:
1. Provide that proposed law does not apply to a person having one detached
catalytic converter if he can document how he legally acquired it.
2. Remove the requirement that the application provide for the applicant's financial
standing and business integrity.
3. Add a requirement that a purchaser obtain a photograph of the item purchased.
4. Add a requirement that a purchaser obtain a signed statement by the seller.
5. Mandates that a violator be fined and imprisoned.
6. Make technical changes.
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