Scrap Metal Dealers

Ark. Code Ann. tit. 17, ch. 44

in effect

Ark. Code Ann. § 17-44-102 Records required — Definition.

(a) As used in this section, “reasonable, written documentation” means a written document that includes the following information provided by the seller of the scrap metal to the scrap metal recycler: (1) The name of the entity or individual from whom the seller acquired the scrap metal; (2) The date the seller acquired the scrap metal; (3) The physical address from where the seller acquired the scrap metal; (4) An affirmation or certification from the seller in the written document that he or she is the owner of the scrap metal or is the employer, agent, licensed contractor, licensed HVACR, plumber, electrician, or other person authorized to sell the scrap metal on behalf of the owner; and (5) An affirmation or certification from the seller in the written document that he or she has not pleaded guilty or nolo contendere to or been found guilty of theft, burglary, or vandalism when the offense involved scrap metal. (b) A seller shall not sell and a scrap metal recycler shall not purchase scrap metal unless reasonable, written documentation is provided that the seller is the owner of the scrap metal or is an employee, agent, or other person authorized to sell the scrap metal on behalf of the owner. (c)(1) Each scrap metal recycler doing business in the State of Arkansas shall maintain an accurate and legible record of each scrap metal purchase transaction. (2) Individual records shall not be required for a series of scrap metal purchase transactions made under a contract. (3) The data required under subdivision (d)(1) of this section may be maintained for repeat sellers in a relational database allowing the scrap metal recycler to record the information one (1) time and relate future purchase records to that information. (4) A municipality or county may require by ordinance electronic or digital records and reporting methods. (d) The record of each scrap metal purchase transaction shall contain the following information taken at the time of sale and kept on record: (1) The name, address, gender, birth date, and identifying number from the seller's driver's license, military identification card, passport, or other form of government-issued photo identification; (2) A photocopy of the government-issued photo identification provided under subdivision (d)(1) of this section; (3) The date of the scrap metal purchase transaction; (4) The digital thumbprints of the seller; (5)(A) A general description of the predominant types of scrap metal purchased. (B) The general description shall be made in accordance with the custom of the trade; (6) A general description of the configuration of the scrap metal and whether the material is insulated; (7) The weight, quantity, or volume, recorded in accordance with the custom of the trade, of the scrap metal purchased; (8) The consideration paid; (9) The license plate number of the vehicle used in transporting the materials to the scrap metal recycler's place of business; and (10)(A) A clearly identifiable date-and-time-stamped digital photograph of : (i) The seller; (ii) The scrap metal in the form in which it was purchased; and (iii) A catalytic converter, if any. (B) The name of the person taking the photographs under this subdivision (d)(10) shall be recorded and provided with the photographs. (e) The photocopy required under subdivision (d)(2) of this section, the digital thumbprints required under subdivision (d)(4) of this section, and the digital photographs taken required under subdivision (d)(10)(A) of this section shall be reasonably clear. (f)(1)(A) For records required under subsections (a) and (d) of this section, a scrap metal recycler shall file a daily electronic record of scrap metal purchases made for that day. (B) The report shall be made daily by entering the information into an automated database which may be accessed by law enforcement statewide. (2)(A) The operator of the electronic database under this section shall send a report that includes a list of all scrap metal recyclers in the county that have accessed or that have access to the database but have not filed a daily electronic record of scrap metal purchases as required by this section to: (i) The county sheriff every seven (7) days; and (ii) Any law enforcement agency that requests periodic copies of the report more frequently than every seven (7) days. (B)(i) A scrap metal recycler who fails to file a daily electronic record of scrap metal purchases as required by this section shall be subject to the civil penalty provided for under § 17-44-106(a) for the first offense. (ii) A second violation of the daily reporting requirement of this section is a Class A misdemeanor. (iii) A third or subsequent violation is a Class D felony. (g) The records required under this section shall be: (1) Kept for a period of one (1) year; (2) Made available to any law enforcement office of the State of Arkansas and any Arkansas municipality or county; and (3) Available for use in any legal proceeding. (h) This section does not apply to transactions: (1) In which a scrap metal processor purchases, transfers, or otherwise conveys scrap metal to another scrap metal processor if the purchaser or transferee obtained a bill of sale or similar document at the time of transfer; (2) Involving only beverage or food containers; or (3) Involving only ferrous metals.

Ark. Code Ann. § 17-44-104 Theft notification.

(a) Any person may notify scrap metal recyclers of nonferrous metal of a known or presumed theft of nonferrous metal products setting forth any information concerning the theft as might be available to that person, including without limitation: (1) The approximate quantity and size of the nonferrous metal products stolen; (2) The geographical area from which the nonferrous metal products were reported missing or presumed stolen; and (3) Any specific distinguishing marks on or in the nonferrous metal products or other method of identifying the nonferrous metal products. (b) If notice of a known or presumed theft of nonferrous metal products is given to a scrap metal recycler under subsection (a) of this section and within ninety (90) days after the notice nonferrous metal products meeting the description in the notice are purchased by the scrap metal recycler or offered for sale to the scrap metal recycler, then the scrap metal recycler shall notify the local police or sheriff's department that the nonferrous metal products were purchased by or offered for sale to the scrap metal recycler. (c) This section does not apply to transactions that involve only beverage containers.

Ark. Code Ann. § 17-44-105 Sales by minors.

(a)(1) No scrap metal recycler shall purchase or otherwise receive in the course of business scrap metal that is claimed by any minor or that may be in the possession of or under control of a minor, unless the minor is accompanied by his or her parent or guardian. (2) The parent or guardian shall state in writing that the transaction is taking place with the parent's or guardian's full knowledge and consent. (b) A scrap metal recycler shall preserve and keep on file and make available for inspection the written statement required by subsection (a) of this section for not less than three (3) years.

Ark. Code Ann. § 17-44-106 Penalties.

(a) A person who violates this chapter may be assessed a civil penalty of no more than one thousand dollars ($1,000) per violation. (b) Any person who knowingly gives false information with respect to the matters required to be maintained in the records provided for in this chapter is guilty of a Class A misdemeanor.

Ark. Code Ann. § 17-44-107 Lifetime ban.

(a) A person who is convicted of theft of scrap metal under § 5-36-123 is forever prohibited from selling scrap metal under this chapter. (b) A person violating this section is subject to the civil penalties under § 17-44-106.

Ark. Code Ann. § 17-44-108 License to sell required.

(a)(1) A license is required for all scrap metal recyclers to be issued by the county sheriff. (2)(A) A license under this section shall cost two hundred fifty dollars ($250) and may be renewed annually for twenty-five dollars ($25.00). (B) The fees described in subdivision (a)(2)(A) of this section do not apply to a not-for-profit scrap metal dealer or not-for-profit scrap metal recycler. (3) The license fee shall be payable to the county sheriff and shall be used for the county sheriff's general operating expenses. (b) Before a license may be issued under this section, a person operating as a scrap metal recycler shall: (1) Have a fixed physical location with a full complement of permanent utilities, if applicable, including without limitation: (A) Water; (B) Sewer; (C) Electricity; and (D) Gas; (2) Show proof of a required national pollution discharge elimination system stormwater permit issued by the Division of Environmental Quality; and (3) Have the ability to comply with online reporting as required by this chapter. (c) A license under this section may be suspended or revoked by a court having jurisdiction if the prosecuting attorney shows in a civil action that a scrap metal recycler has failed to comply with the requirements of this chapter.

Ark. Code Ann. § 17-44-109 Buyer of used catalytic converter.

(a)(1) A buyer of a used catalytic converter shall file an electronic record of the used catalytic converter purchase. (2) An electronic record under subdivision (a)(1) of this section is not required if: (A) A used catalytic converter is sold as a vehicle repair part in compliance with United States Environmental Protection Agency policy. (B)(i) The used catalytic converter is marked with the date the converter was removed from the vehicle. (ii) The marking may be made in any permanent manner, including but not limited to engraving or use of permanent ink. (iii) The marking must clearly and legibly indicate the date the catalytic converter was removed from the vehicle. (C)(i) The vehicle identification number of the vehicle from which the converter was removed or an alternative number to the vehicle identification number is marked on the catalytic converter. (ii) If an alternative number is used, the alternative number must be under a numbering system that can be immediately linked to the vehicle identification number by law enforcement. (iii) The marking may be made in any permanent manner, including but not limited to engraving or use of permanent ink. (iv) The marking must clearly and legibly indicate the vehicle identification number or the alternative number the catalytic converter was removed from the vehicle. (3) The electronic record shall be entered into the database established under § 17-44-102 within twenty-four (24) hours of a purchase of a used catalytic converter. (4) The electronic record shall contain the following information: (A) The name and home address of the buyer; (B) The name and home address of the seller; (C) The license plate of the seller's vehicle; (D) The seller's driver's license number or number from a different form of government-issued photo identification; (E) The number of used catalytic converters purchased; and (F) A photo of the used catalytic converter or used catalytic converters purchased. (b) The buyer of a used catalytic converter : (1) Shall maintain a receipt of the electronic record entry as a record of the purchase of a used catalytic converter; and (2) Is subject to the penalties under § 17-44-102(f)(2)(B) for failure to file an electronic report of the purchase of a used catalytic converter. (c) The records required under this section shall be: (1) Kept for a period of one (1) year; (2) Made available to any law enforcement agency of the State of Arkansas or Arkansas municipality or county; and (3) Available for use in any legal proceeding. (d) The database used to file and store the electronic records under this section shall be the same database established under § 17-44-102 and provide a public portal to enter the electronic record in the database used by scrap metal recyclers. (e)(1) A buyer of a used catalytic converter shall be registered with the county sheriff. (2) The initial registration fee under this subsection is two hundred fifty dollars ($250) and may be renewed annually for twenty-five dollars ($25.00). (3)(A) The registration fee shall be payable to the county sheriff of the county in which the buyer of a used catalytic converter has a fixed physical location. (B) The registration fee shall be used for the county sheriff’s general operating expenses. (4) Before a registration is issued under this subsection, a person operating as a buyer of used catalytic converters shall have a fixed physical location with the utilities necessary to operate as a buyer of used catalytic converters. (5) A buyer of used catalytic converters shall have the ability to comply with online reporting as required by this section. (6) Registration under this subsection may be suspended or revoked by a court having jurisdiction if the prosecuting attorney shows in a civil action that the buyer of used catalytic converters has failed to comply with the requirements of this section. (f)(1) A buyer of used catalytic convertors who fails to file a daily electronic record of a catalytic convertor purchase required by this section is subject to the civil penalty under § 17-44-106(a) for the first offense. (2) A second violation of the daily reporting requirement of this section is a Class A misdemeanor. (3) A third or subsequent violation is a Class D felony.

Source: Public.Resource.Org / UniCourt, Official Code of Arkansas Annotated, Release 78 (2020) (unicourt.github.io/cic-code-ar)URL: https://unicourt.github.io/cic-code-ar/transforms/ar/ocar/r78/gov.ar.code.title.17.htmlFetched: 11/8/2026