ENROLLED ACT No. 584 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 1 AN ACT 2 To 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. 8 Be 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 10 1950, 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. 21 (3) "Commission" means the Louisiana Used Motor Vehicle Commission. Page 1 of 5 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 1073 ENROLLED 1 (4) "Person" includes any corporation, limited liability company, partnership, 2 or two or more persons having a joint or common interest. 3 §1893. License required; application 4 A. No person shall do business as a catalytic converter purchaser in this state 5 without having first obtained a business license from the commission. Any person 6 desiring a license as a catalytic converter purchaser shall make an application in 7 writing, specifying the address of the building where the business is to be carried on. 8 A license issued pursuant to this Chapter shall be valid for two years. 9 B.(1) It shall be unlawful for any person, firm, association, corporation, 10 limited liability company, or trust to engage in the business of purchasing used 11 catalytic converters in this state without first obtaining a license as required by this 12 Section. 13 (2) Any person, firm, association, corporation, limited liability company, or 14 trust that engages in the business of purchasing used catalytic converters pursuant 15 to this Section shall obtain and hold a current license to engage in the business of 16 purchasing used catalytic converters. 17 C.(1) The commission shall create a form to be used as an application for 18 licensure as a purchaser of used catalytic converters and shall provide the form to an 19 applicant. 20 (2) The commission shall require all of the following information in the 21 application: 22 (a) The name of the applicant. 23 (b) The street address of applicant's principal place of business and each 24 additional place of business. 25 (c) The type of business organization of applicant. 26 (d) Whether the applicant has an established place of business and is 27 engaged in the pursuit, avocation, or business for which each license is applied. 28 (e) Whether the applicant is able to properly conduct the business for which 29 each license is applied. Page 2 of 5 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 1073 ENROLLED 1 (f) Any other pertinent information consistent with the safeguarding of the 2 public interest and the public welfare. 3 (g) Any other information the commission deems necessary to enable it to 4 fully determine the qualifications and eligibility of the applicants to receive a license. 5 (3) The applicant shall sign the application prior to submission to the 6 commission. 7 (4)(a) Upon submission of an application, an applicant shall pay all 8 applicable fees in accordance with this Section. If an application is denied and the 9 license is not issued, the commission shall return all licensing fees to the applicant. 10 (b) Any licensee that submits a renewal application after the expiration date 11 of an existing license shall be subject to a late penalty of one hundred dollars in 12 addition to any penalty, fine, or cost assessed for operating without a license which 13 shall be paid to the commission. 14 (c) Any licensee having a previous license shall be presumed to be a renewal 15 applicant. 16 (d) Any licensee changing its name, address, or ownership shall notify the 17 commission within ten days of the change or be in violation of this Section. 18 (e) Any licensee ceasing to maintain its business shall surrender its license 19 to the commission within ten days and any failure to do so shall constitute a 20 violation. 21 D. The commission shall specify the location of the place of business on each 22 license issued. If the business location is changed, the commission shall be notified 23 immediately of the change and the commission may endorse the change of location 24 on the license without charge. The license shall be posted in a conspicuous place in 25 each place of business. 26 E. The commission shall promulgate rules to implement the provisions of this 27 Section. 28 §1894. Exceptions 29 The provisions of this Part shall not apply to either of the following: 30 (1) A dealer licensed by the Louisiana Motor Vehicle Commission. Page 3 of 5 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 1073 ENROLLED 1 (2) A person possessing not more than one detached catalytic converter if 2 there is documentation to indicate how the detached catalytic converter was acquired. 3 §1895. Requirements of purchaser and seller; record keeping 4 A. Except as otherwise provided for in this Section, it is unlawful for any 5 person to possess, obtain or otherwise acquire, transport, or sell more than one used, 6 detached catalytic converter or any nonferrous part of a catalytic converter without 7 providing all of the following documentation to law enforcement upon request: 8 (1) The name and address of the residence or place of business of the person 9 required to either keep the register and file reports or electronically maintain the data 10 and generate the requested reports. 11 (2) The date and place of each purchase. 12 (3) The name and address of the person or persons from whom the material 13 was purchased, including the distinctive number of each person's Louisiana driver's 14 license, driver's license from another state, passport, military identification, or 15 identification issued by a governmental agency or the United States Postal Service. 16 If the person cannot produce any form of identification as provided for in this 17 Paragraph at the time of purchase, the purchaser shall not complete the transaction. 18 (4) The motor vehicle license number of the vehicle or conveyance on which 19 such material was delivered. 20 (5) A full description and photograph of all such material purchased. 21 (6) A picture of the person from whom the material was purchased. 22 B. All information obtained pursuant to Subsection A of this Section shall 23 be kept for a period of three years and shall be made available for inspection by any 24 peace officer, law enforcement official, or commission official at any time during the 25 three-year period. 26 C. Any person who purchases a used detached catalytic converter shall obtain 27 a signed statement from the seller prior to the purchase attesting that the catalytic 28 converter has been paid for or is owned by the seller. A failure of the purchaser to 29 obtain a statement from the seller shall be prima facie evidence of the fraudulent 30 intent and guilty knowledge on the part of the purchaser within the meaning of this Page 4 of 5 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 1073 ENROLLED 1 Part and shall be sufficient to warrant a conviction. A purchaser who obtains the 2 required statement from the seller shall be exonerated from any fraudulent, willful, 3 or criminal knowledge within the meaning of this Chapter. 4 D. It is unlawful to provide any false, fraudulent, altered or counterfeit 5 information or documentation as required by this Section. 6 §1896. Failure to comply; penalty 7 A. Anyone acting as an unlicensed catalytic converter purchaser in violation 8 of the provisions of this Part shall be fined not less than five hundred dollars and be 9 imprisoned not less than thirty days nor more than sixty days per violation as 10 provided for in Subsection D of this Section. 11 B. For a second offense, the violator shall be fined not more than two 12 thousand dollars and be imprisoned with or without hard labor for not more than two 13 years per violation as provided for in Subsection D of this Section. 14 C. For a third or subsequent offense, the violator shall be fined not more than 15 ten thousand dollars and be imprisoned with or without hard labor for not more than 16 five years per violation as provided for in Subsection D of this Section. 17 D. Each unlawfully obtained, possessed, or transported used, detached 18 catalytic converter is a separate violation that subjects the individual or entity to a 19 separate charge. Upon conviction, the court may order the individual or entity to pay 20 restitution for the value of the repair and replacement of the catalytic converter or be 21 held liable as otherwise provided by law. SPEAKER OF THE HOUSE OF REPRESENTATIVES PRESIDENT OF THE SENATE GOVERNOR OF THE STATE OF LOUISIANA APPROVED: Page 5 of 5 CODING: Words in struck through type are deletions from existing law; words underscored are additions.