SB 40: Secondary Metals Recyclers; the definition of the term "used, detached catalytic converters" to said article; provide for applicability

Georgia already regulates secondary metals recyclers, the businesses that buy scrap metal like copper wire and catalytic converters, to fight metal theft. This bill adds a formal legal definition of "used, detached catalytic converter" and applies it across the whole regulatory article instead of just one section. It also removes a loophole that let certain buyers purchase catalytic converters from groups like charities, nonprofits, and law enforcement without following the article's rules. The bill updates payment limits recyclers must follow (a $100 cash cap per transaction, a two-transaction daily limit per seller, and bans on cash payments for catalytic converters, coils, utility wire, communications copper, copper wire, and batteries), and it changes how sheriffs' offices handle recycler registration fees, splitting the $200 fee between the Georgia Sheriffs' Association and county treasuries. It also expands a local landfill surcharge to cover shredded metal waste from vehicles and appliances. The changes take effect July 1, 2025, and apply to transactions from that date forward.

• Adds a formal legal definition of "used, detached catalytic converter" to Georgia's secondary metals recycler law (O.C.G.A. § 10-1-350) and applies it to the entire regulatory article.
• Removes the exemption that let charities, nonprofits, law enforcement, and other listed groups sell catalytic converters without following the article's registration and reporting rules.
• Sets firm limits on secondary metals recyclers: no more than $100 cash per transaction, no more than two transactions per seller per day, and no cash at all for catalytic converters, coils, utility wire, communications copper, copper wire, or batteries.
• Changes how the $200 secondary metals recycler registration fee collected by sheriffs is split, sending $100 to the Georgia Sheriffs' Association and $100 to the county treasury.
• Requires recyclers to keep and electronically report records of catalytic converter purchases from commercial vendors or other recyclers to the Georgia Bureau of Investigation.
• Expands a $1.00 per ton local landfill surcharge to include nonmetallic waste from shredding motor vehicles or household appliances.

Secondary metals recyclers and scrap dealers, people who sell scrap metal or used catalytic converters, county sheriffs' offices that handle recycler registration, the Georgia Sheriffs' Association, the Georgia Bureau of Investigation, local governments running landfills, and charities or nonprofits that previously sold catalytic converters without restriction.

Catalytic converter theft has been a persistent problem because the metals inside are valuable. By closing the charity and nonprofit exemption, capping cash payments, and requiring more reporting, the bill makes it harder to sell stolen converters or scrap for quick, untraceable cash, while also changing how registration money flows to sheriffs.

• Section 1 adds a new definition of "used, detached catalytic converter" to O.C.G.A. § 10-1-350, covering exhaust parts with catalyst metal but excluding converters certified for reuse under federal Clean Air Act rules.
• Section 3 sets firm cash payment limits for secondary metals recyclers, including a $100 per-transaction cap, a two-transaction daily limit per seller, and bans on cash for catalytic converters, coils, wire, and batteries.
• Section 4 removes the phrase exempting used, detached catalytic converters from the article's exceptions list, meaning transactions with charities, law enforcement, and similar groups are no longer automatically exempt.
• Section 5 changes sheriff registration authority, splitting the $200 registration fee between the Georgia Sheriffs' Association ($100) and the county treasury ($100), replacing the old contract-based reimbursement system.
• Section 6 clarifies that each unlawfully possessed used, detached catalytic converter counts as a separate criminal offense.
• Section 8 requires recyclers to maintain and electronically report records of catalytic converter purchases from commercial vendors or other recyclers to the Georgia Bureau of Investigation.
• Section 9 expands the $1.00 per ton local landfill surcharge to include nonmetallic waste from shredded vehicles or household appliances.
• Section 10 sets the effective date as July 1, 2025, applying to transactions on or after that date.

1. 2025-07-01Effective Date
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-50)Primary sponsor
• Steve Gooch (R, SD-51)
• Jason Anavitarte (R, SD-31)
• Randy Robertson (R, SD-29)
• Lauren McDonald III (R, HD-26)

1. PassedSenate voteFebruary 26, 2025

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

   PASSAGE BY SUBSTITUTE: Senate Vote #92

2. PassedHouse voteMarch 27, 2025

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

   PASSAGE: House Vote #326

3. PassedSenate voteApril 2, 2025

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

   AGREE TO HOUSE SUBSTITUTE AS AMENDED: Senate Vote #415

4. PassedHouse voteApril 2, 2025

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

   Agree to SAm to HSub: House Vote #403

• catalytic converter theft
• scrap metal recycling
• secondary metals recyclers
• sheriff registration fees
• solid waste surcharges