SB40: SB40 Secondary Metals Recyclers; the definition of the term "used, detached catalytic converters" to said article; provide for applicability

Georgia already regulates secondary metals recyclers (scrap dealers) and requires special handling of used, detached catalytic converters because they are frequently stolen. This bill adds a formal legal definition of a used, detached catalytic converter to the state's secondary metals recycler law (O.C.G.A. Title 10, Article 14) and removes catalytic converters from a list of items exempted from that law's coverage, meaning purchases of these parts are now squarely covered by the article's rules. The bill also removes a requirement that only registered secondary metals recyclers may purchase catalytic converters, while keeping rules limiting who can possess, transport, or sell them. It lets existing caps on cash payments and daily transaction limits for scrap dealers continue past January 1, 2026, bars dealers from cashing their own checks to sellers, updates reporting requirements for catalytic converter purchases from industrial vendors, and changes how sheriffs handle registration fees and databases. It also tweaks a solid waste disposal surcharge. The changes take effect July 1, 2025, and apply to transactions from that date forward.

• Adds a formal definition of 'used, detached catalytic converter' to Georgia's scrap metal law, covering motor vehicle exhaust parts with catalyst metal but excluding parts certified for reuse under federal Clean Air Act rules.
• Removes catalytic converters from the list of purchases exempted from the secondary metals recycler law, so buying them is now fully covered by the article's requirements.
• Deletes a requirement that only registered secondary metals recyclers may purchase catalytic converters, while keeping restrictions on possessing, transporting, or selling them without proper documentation.
• Keeps in place, past January 1, 2026, existing caps on cash payments (no more than $100 per transaction) and limits of two transactions per seller per day per dealer location.
• Bars secondary metals recyclers from cashing or redeeming checks or electronic payments they issued to sellers, or letting that happen on their premises.
• Changes how sheriffs handle the $200 registration fee for scrap dealers, replacing a fixed 50/50 split with the Georgia Sheriffs' Association with authority to contract with local governments for registration and database services.

Secondary metals recyclers (scrap yards and dealers), people who sell or buy used catalytic converters, county sheriffs who register and oversee scrap dealers, the Georgia Sheriffs' Association, the Georgia Bureau of Investigation, and local governments hosting privately operated solid waste disposal facilities.

Because catalytic converters contain valuable metals and are commonly stolen, tightening how they can be bought and sold, and requiring detailed records, could make it harder to resell stolen parts. Scrap dealers also face continued payment limits and new restrictions on how they can settle payments with sellers.

• Section 1 adds a new definition of 'used, detached catalytic converter' to O.C.G.A. § 10-1-350, covering vehicle exhaust parts with catalyst metal, with an exclusion for parts certified for reuse under federal law.
• Section 2 removes a provision that only registered secondary metals recyclers may purchase catalytic converters, while retaining rules on possessing, transporting, or selling them (O.C.G.A. § 10-1-351).
• Section 3 keeps in effect after January 1, 2026 existing caps of $100 cash per transaction and two transactions per seller per day, and adds a ban on dealers cashing checks they issued to sellers (O.C.G.A. § 10-1-355).
• Section 4 removes catalytic converters from the list of purchases exempt from the secondary metals recycler article (O.C.G.A. § 10-1-358).
• Section 5 changes how sheriffs use registration fees, replacing a fixed fee split with authority to contract with local governments for registration and database management (O.C.G.A. § 10-1-359.1).
• Section 8 revises reporting requirements for catalytic converter purchases from industrial and commercial vendors, requiring electronic submission to the Georgia Bureau of Investigation (O.C.G.A. § 10-1-359.5).
• Section 9 revises a $1.00 per ton surcharge imposed on certain construction, demolition, and shredded vehicle or appliance waste at privately operated municipal solid waste facilities (O.C.G.A. § 12-8-39).
• Section 10 sets the effective date as July 1, 2025, applying to all transactions occurring on or after that date.

1. 2025-05-14Effective Date 2025-07-01
2. 2025-05-14Act 278
3. 2025-05-14Senate Date Signed by Governor (Senate)
4. 2025-04-10Senate Sent to Governor (Senate)
5. 2025-04-02House Agreed Senate Amend or Sub (House)
6. 2025-04-02Senate Agreed House Amend or Sub As Amended (Senate)
7. 2025-03-27House Passed/Adopted By Substitute (House)
8. 2025-03-27House Third Readers (House)

• Bo Hatchett (R, SD-050)Primary sponsor
• Steve Gooch (R, SD-051)
• Jason Anavitarte (R, SD-031)
• Randy Robertson (R, SD-029)
• Lauren McDonald (R, HD-026)

1. PassedSenate voteFebruary 26, 2025

   51 yea, 3 nay (2 not voting, 0 absent)

   Passage By Substitute: Senate Vote #92

2. PassedHouse voteMarch 27, 2025

   159 yea, 3 nay (5 not voting, 13 absent)

   Passage: House Vote #326

3. PassedSenate voteApril 2, 2025

   49 yea, 4 nay (1 not voting, 2 absent)

   Agree To House Substitute As Amended: Senate Vote #415

4. PassedHouse voteApril 2, 2025

   91 yea, 63 nay (5 not voting, 21 absent)

   Agree To Sam To Hsub: House Vote #403

• catalytic converter theft
• scrap metal recycling
• metal theft laws
• secondary metals recyclers
• solid waste fees