AZ HB2646

Amends catalytic converter purchase restrictions to permit sales only to scrap metal dealers, commercial motor vehicle parts/repair businesses, or licensed automotive recyclers, with violations classified as class 1 misdemeanor.

Requires scrap metal dealers to maintain electronic records with electronic backup in addition to physical records for all transactions exceeding $25, including seller identification, photographs, fingerprints, and vehicle license information.

Restricts scrap metal dealers from purchasing commercial or industrial grade transformers and catalytic converters in original manufactured form, with exceptions for transactions with industrial accounts, other scrap metal dealers, or items authorized for release by peace officers.

Requires scrap metal dealers to electronically submit transaction reports to the Arizona Department of Public Safety within 24 hours and hold certain materials (copper, aluminum wire, transactions over $100) for seven days; limits sellers to one reportable transaction per day and prohibits series transactions to avoid requirements.

Changes record retention requirement from two years to one year after final transaction entry and establishes class 1 misdemeanor penalties for violations including unauthorized catalytic converter purchases and wire insulation removal violations.