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North Carolina Metal Scrap Statute
This document is provided as background information for ISRI members. It does not constitute legal advice.
Scrap recyclers should consult their attorneys/legal advisors regarding the application of the law and
regulations to each company’s individual circumstances. Other laws governing precious metals, secondhand
materials, vehicles, and the like may apply.
Overview of Provisions (use the links to travel directly to that section)
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Materials Covered & Other Definitions
Exemptions
Receipt and Fingerprinting
Recordkeeping
Retention & Secure Disposal
Inspection
Reporting
Hold
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Current as of June 24, 2013
HVAC & Catalytic Converters
Prohibited Activities and Transactions
Transport of Copper
Payment Restrictions
Permit
Penalties
Preemption
Please Note: Amendments by 2013 North Carolina SB 583 / S.L. 2013-169 are included and
noted in this summary.
Materials Covered & Other Definitions (amended for clarity and conciseness)
"Regulated Metals Property" means all ferrous and Nonferrous Metals.
"Nonferrous Metals" means metals not containing significant quantities of iron or steel,
including but not limited to Copper, aluminum other than aluminum cans, aluminum
copper mixtures, catalytic converters, lead-acid batteries, and stainless steel beer kegs or
containers. Excludes precious metals as defined in the Precious Metal Business Act; §66406.(3).
(added by SB 583) "Copper" means Nonferrous Metals, including but not limited to copper
wire, copper clad steel wire, copper pipe, copper bars, copper sheeting, copper tubing and
pipe fittings, and insulated copper wire. Excludes brass alloys, bronze alloys, lead, nickel,
zinc, or items not containing a significant quantity of copper.
"Cash Card System" means a system that provides payment in cash or another form, that
captures a photograph of the Seller at the time of payment when providing payment in
cash, and uses an automated cash dispenser, including but not limited to an ATM. (amended
by SB 583 to only require photo with cash and require an automated cash dispenser)
"Nonferrous Metals Purchaser" is defined as a Secondary Metals Recycler who purchases,
gathers, or obtains Nonferrous Metals.
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Code Citation: N.C.G.S. Chapter 66, Article 45, Part 3
§66-420 to §66-431 (as amended by 2013 North Carolina SB 583)
© 2013 Institute of Scrap Recycling Industries All Rights Reserved
"Secondary Metals Recycler" means an entity engaged in gathering or obtaining metals that
have served their original economic purpose, or engaged in converting such metals into
raw material products by specified methods not including the exclusive use of hand tools.
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Exemptions
Exempts purchases of Regulated Metals from a manufacturing, industrial, government, or
other commercial vendor that generates or sells such in the ordinary course of its business.
Exempts purchases that only involve beverage containers from all but the hold provisions.
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Receipt and Fingerprinting
Recyclers must provide a receipt for all purchases of Regulated Metal, issued to and signed
by the Deliverer. The Recycler must be able to provide documentation on the employee
who completed the transaction.
For transactions involving catalytic converters detached from a vehicle or central air
conditioner evaporator coils or condensers, the Deliverer shall place a clear ink index
fingerprint next to their signature on the receipt. A Recycler may elect to obtain the
fingerprint electronically. If the Recycler has a copy of the Deliverer's index fingerprint on
file the Recycler may reference the copy after examining the Deliverer's photo ID.
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Recordkeeping
Recyclers must collect the following information for any purchase of regulated metals
property by the Recycler:
• The name and address of the Secondary Metals Recycler;
• The name, initials, or other ID of the individual entering the information;
• The date of the transaction;
• The weight of the regulated metals property;
• The description of the property in accordance with the custom of the trade;
• The physical address where the Seller obtained the property;
• The date when the Seller obtained the property;
• A statement signed by the Seller or the Seller's agent certifying they have the lawful
right to sell and dispose of the property;
• The amount paid for the property;
• The name and address of the Vendor of the property;
• The license plate number, make, model, and color of the delivery vehicle;
• A photocopy or electronic scan of the government-issued photo ID of the Deliverer.
If the Recycler has a copy of the valid photo ID of the Deliverer on file, the Recycler
may reference the copy after verifying the photo ID has not expired.
• A copy of the transaction receipt (or the original receipt if a copy is not legible).
• Video or digital photo of the Seller with the property delivered by the Seller.
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Code Citation: N.C.G.S. Chapter 66, Article 45, Part 3
§66-420 to §66-431 (as amended by 2013 North Carolina SB 583)
© 2013 Institute of Scrap Recycling Industries All Rights Reserved
Retention & Secure Disposal
Records must be retained for 2 years. Records must be securely maintained and destroyed
in a manner that protects the identity of the property owner, seller, and purchaser.
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Inspection
During usual and customary business hours a law enforcement officer may inspect
purchased Regulated Metals in the Recycler's possession and any records required by law.
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Reporting
If requested by the sheriff or chief of police of the county or municipality where the
Recycler is located, a Recycler shall make the required receipts available for pickup each
regular workday. Law enforcement may also request receipts be electronically transferred
directly to the law enforcement agency.
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Hold
15 calendar days hold on Nonferrous Metal upon receipt of a written hold notice from a law
enforcement officer specifically identifying those items that are believed stolen and subject
to the notice. The law enforcement officer may release the metals early or renew the hold
for an additional 30 days.
Automatic 7 day hold on Nonferrous Metals purchased by a Recycler convicted of a
felonious violation of this article, N.C.G.S. §14-71 (receiving stolen goods), §14-71.1
(possessing stolen goods), or §14-72 (larceny of property).
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Prohibited Activities and Transactions
A Recycler shall not purchase (see Exemption section for exempt Sellers):
• Nonferrous Metals unless the Recycler holds a valid permit;
• Regulated Metals Property the Recycler knows or reasonably should know is stolen;
• Any Regulated Metal marked with the initials or other identification of a telephone,
cable, electric, water, or other public utility, or any brewer;
• Any utility access cover;
• Any street light pole or fixture;
• Any road or bridge guard rail;
• Any highway or street sign;
• Any water meter cover;
• Any metal beer keg, including any made of stainless steel that is clearly marked as
being property of the beer manufacturer;
• Any traffic directional or control sign;
• Any traffic light signal;
• Any Regulated Metal marked with the name of a government entity;
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Code Citation: N.C.G.S. Chapter 66, Article 45, Part 3
§66-420 to §66-431 (as amended by 2013 North Carolina SB 583)
© 2013 Institute of Scrap Recycling Industries All Rights Reserved
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Any railroad track components or signs, and any property owned by a railroad and
marked and otherwise identified as such;
Any historical marker or any grave marker or burial vase.
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HVAC & Catalytic Converters
A Recycler may not purchase central air conditioner evaporator coils or condensers, or
catalytic converters that are not attached to a vehicle, except from a company, contractor,
or individual in the business of installing, replacing, maintaining, or removing such items.
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Transport of Copper
It is unlawful to transport more than 25 lbs. aggregate of Copper unless one of the
following applies: the vehicle is used in the ordinary course of business for transporting
Nonferrous Metals; the person transporting or possessing the Copper possess and presents
a valid bill of sale for the Copper; or a law enforcement officer determines the Copper is not
stolen and the person has rightful possession.
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Payment Restrictions
No cash for Copper, or for purchases of Nonferrous Metal exceeding $100 per transaction.
A Nonferrous Metals Purchaser may only make one cash payment per day to any
individual, business, corporation, or partnership. For transactions exceeding the cash
thresholds, payment must be by check, money order, or a Cash Card System. Recyclers may
not operate a business that cashes checks at a fixed site where the Recycler purchases
Regulated Metal Property.
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Permit
A Recycler must receive an annual nonferrous metals purchase permit from the county
sheriff for each fixed site at which Nonferrous Metals are purchased. An applicant must
have a fixed site in the county, declare on a form that the applicant is informed of the law
and will comply, does not have a permit that has been revoked due to noncompliance, and
has not been convicted of more than 3 violations of the law. The sheriff shall not charge a
fee for the permit. A permit is valid for 12 months.
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Penalties
Unless covered by another provision of law with a greater punishment, knowing and willful
violation is: for a 1st offense, a Class 1 misdemeanor; for a 2nd or subsequent: a Class I
felony. If the owner or the employees of a fixed site are convicted in aggregate of 3 or more
violations within a 10 year period, the permit associated with that fixed site shall be
immediately revoked for 6 months. Any attempt to circumvent by procuring a permit
through a family member shall extend the revocation period for an additional 18 months.
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Code Citation: N.C.G.S. Chapter 66, Article 45, Part 3
§66-420 to §66-431 (as amended by 2013 North Carolina SB 583)
© 2013 Institute of Scrap Recycling Industries All Rights Reserved
The court may order a defendant to make restitution to the Recycler or property owner as
appropriate for any damage or loss caused by a defendant arising from certain violations.
Vehicles used or intended for use to convey, transport, or facilitate such for unlawfully
obtained Regulated Metals Property are subject to forfeiture according to the provisions of
§66-431 if the violation involved is a felony.
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Preemption
A county or municipality shall not enact any local law, ordinance, or regulation regulating
Secondary Metals Recyclers or Regulated Metals Property that conflicts with the law.
Existing conflicting local laws are preempted.
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Code Citation: N.C.G.S. Chapter 66, Article 45, Part 3
§66-420 to §66-431 (as amended by 2013 North Carolina SB 583)
© 2013 Institute of Scrap Recycling Industries All Rights Reserved