Session Law 2012-46 (House Bill 199) Summary

• Recodifies pawnbroker regulations (formerly Chapter 91A) and precious metals dealer regulations (formerly Article 25 of Chapter 66) into a single Article 45 of Chapter 66 of the General Statutes, reorganizing into three parts: Pawnbrokers and Cash Converters, Precious Metal Businesses, and Regulation of Sales and Purchases of Metals.

• Creates new permitting requirement for nonferrous metals purchasers (secondary metals recyclers) through county sheriffs, with mandatory record-keeping including seller identification, photo documentation, fingerprints for catalytic converters and HVAC coils, and retention of records for two years.

• Restricts cash payments for nonferrous metals to $100 maximum per transaction and prohibits all cash purchases of copper; establishes hold notice procedures allowing law enforcement to halt processing of suspected stolen metals for up to 45 days.

• Establishes criminal prohibition on willfully cutting, mutilating, defacing, or otherwise injuring property to obtain nonferrous metals (G.S. 14-159.4), with penalties ranging from Class 1 misdemeanor for less than $1,000 damage to Class D felony if resulting in death; creates enhanced penalties for infrastructure disruption.

• Makes violation of metals recycling regulations a Class 1 misdemeanor for first offense and Class I felony for subsequent violations; permits revocation of permits for three or more violations within 10 years; effective October 1, 2012.