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Scrap Metal - Notification of Statutory Changes, Scrap Metals Registration 06/21/2021

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Tennessee Scrap Metal Dealer Registration Program

Notification of Statutory Changes

Pursuant to Tenn. Code Ann. § 4-3-1306(d), you are receiving this notice because you have elected to receive notification by e-mail of certain changes or potential changes to the law applicable to your profession. As such, the Department would notify you of the following Public Chapters that were passed during this legislative session and their effective dates:

Bill Number: HB0780/SB0771
Public Chapter: PC0549: 
Synopsis: The Act clarifies that a registered scrap metal dealer is not required to separately register as a scrap metal dealership. A scrap metal dealer’s registration and renewals must list the specific location of each place of business operating in Tennessee.

Furthermore, the Act provides that late registrations for licensees are subject to late renewals for a period of sixty (60) days following their expiration date. The fee for late renewals equals the fee for a timely renewal plus the addition of a penalty as set by the Commission.
Effective Date: October 1, 2021

Bill Number: HB1155/SB1612
Public Chapter: PC0213 - 
Synopsis: This Act requires any person or entity purchasing or selling unattached catalytic converters as a single item, not part of a scrapped motor vehicle, to give written notice to the chief of police of each city and sheriff of each city and county of the activity. Additionally, those purchasing a used, unattached catalytic converter are also required to obtain a scrap metal dealer license.

Scrap metal dealers shall not purchase or acquire used, unattached catalytic converters, or any nonferrous metal part, such as a converted unless (1) the used unattached catalytic converter is purchased at the fixed location of the scrap metal dealer in an in-person transaction or, (2) the scrap metal dealer maintains a fixed site; the scrap metal obtains, verifies, and maintains all identification and documentation required; and obtains and maintains a copy of the seller’s license or a copy of the documentation and vehicle registration.

A used, unattached catalytic converter, or converter, must not be shipped, unless this is shipped between two licensed entities. Scrap metal dealers are required to note in their records any obvious markings on a used, unattached catalytic converter, which includes paint, labels, and engravings that would aid in identification.

A person who commits an offense pertaining to this Act is subject to seizure, forfeiture, and is categorized as a Class A misdemeanor, punishable only by fine, per object seized or forfeited. The seller of a used, unattached catalytic converter that is stolen is also liable to the victim for repair and replacement as may be ordered by the court or otherwise provided by law.

Lastly, this section exempts licensed motor vehicle dismantlers and recyclers, and licensed scrap metal dealers using the catalytic converter to recover the contained metals or other components, and catalytic converters purchased in association of the Clean Air Act.
Effective Date: July 1, 2021.

Dept. of Commerce & Insurance | 500 James Robertson Pkwy | Nashville, TN 37243-0565
(615) 741-2241
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