Automobile Recyclers Licensing Act

The bill requires an automobile recycler (recycler) to have a license if the recycler is buying more than 5 vehicles in one year to recycle. In connection with this license requirement, the bill:

• Requires that the license be renewed every 2 years to stay current;
• Sets qualifications for licensure, including being of good moral character;
• Requires fees for submitting an application, being issued a license, or renewing a license;
• Gives the director of the auto industry division (director) enforcement authority;
• To ensure the recycler has the appropriate permits, requires the director to report certain items that are at the recycler's business to the department of public health and environment or the oil and gas conservation commission; and
• Gives the director rule-making authority.

The bill requires automobile recyclers to:

• Keep permanent daily records of vehicles, equipment, attachments, accessories, and appurtenances that are transferred to or from the recycler;
• Make records, vehicles, and parts available for inspection by the director or a peace officer; and
• Report each motor vehicle received by the recycler to the national motor vehicle title information system.

The bill requires a person that transfers a vehicle, equipment, attachment, accessory, or appurtenance to a recycler to record certain information in the recycler's records. The following acts are made unlawful:

• Failing to obtain an automobile recycler's license if required by the bill;
• Intentionally making a material misstatement or omission on a license application; and
• Failing to comply with certain existing statutes, for the purpose of imposing discipline on a licensee, including a failure to comply with laws governing recyclers and laws governing the disposal or recycling of fluids or materials.

In connection with discipline of the license holder, the bill:

• Authorizes the director to issue or deny licenses, issue cease-and-desist orders, seek a fine of up to $1,000, and seek suspension or revocation of the license of an automobile recycler; and
• Authorizes the division to investigate potential violations, including issuing subpoenas and summonses and procuring criminal records.

Failing to obtain a license or engaging in automobile recycling without an active license is a class 1 misdemeanor. The director may promulgate rules to implement the bill. The bill is scheduled for repeal on September 1, 2030. Before the repeal, the functions of the director in regulating automobile recyclers are scheduled for review in accordance with the sunset law.

A provision that sets standards, including holding a motor vehicle for 7 days, for recyclers who are not licensed as motor vehicle dealers is repealed.

(Note: This summary applies to this bill as introduced.)