Scrap metal dealers; bring forward code sections related to.

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To: Judiciary, Division B
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Senator(s) Hill

SENATE BILL NO. 2320

AN ACT TO BRING FORWARD SECTION 63-21-39, MISSISSIPPI CODE OF 1
1972, WHICH AUTHORIZES THE DESTRUCTION OR SCRAPPING OF CERTAIN 2
VEHICLES, FOR POSSIBLE AMENDMENT; TO BRING FORWARD SECTIONS 3
97-17-71, 97-17-71.1 AND 97-17-71.2, MISSISSIPPI CODE OF 1972, 4
WHICH PROVIDE THE AUTHORIZATION FOR SCRAP METAL DEALERS, FOR 5
POSSIBLE AMENDMENT; AND FOR RELATED PURPOSES. 6
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 7
SECTION 1. Section 63-21-39, Mississippi Code of 1972, is 8
brought forward as follows: 9
63-21-39. (1) (a) An owner who scraps, dismantles or 10
destroys a vehicle and a person who purchases a vehicle as scrap 11
or to be dismantled or destroyed shall indicate same on the back 12
of the certificate of title and shall immediately cause the 13
certificate of title and any other documents required by the 14
department to be mailed or delivered to the department for 15
cancellation. A certificate of title of the vehicle shall not 16
again be issued except upon application containing the information 17
the department requires, accompanied by a certificate of 18
inspection in the form and content specified in Section 19
63-21-15(5) and proof of payment of a fee as provided in 20
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subsection (2) of this section. Before a used motor vehicle parts 21
dealer or scrap metal processor may purchase or receive a motor 22
vehicle from the owner or authorized agent of the owner of the 23
motor vehicle for the purpose of scrapping, dismantling or 24
destroying the motor vehicle, the used motor vehicle parts dealer 25
or scrap metal processor must verify under Section 63-21-18 the 26
absence of any lien on the motor vehicle. If a lien exists on the 27
motor vehicle, the used motor vehicle parts dealer or scrap metal 28
processor may not purchase or receive the motor vehicle for the 29
purpose of scrapping, dismantling or destroying the vehicle, and 30
may not purchase or receive the motor vehicle for such purposes 31
during any time for which a lien exists on the motor vehicle. 32
(b) Notwithstanding any other provision of this chapter 33
to the contrary, if the owner or authorized agent of the owner has 34
not obtained a title in his or her name for the vehicle to be 35
transferred, has lost the title for the vehicle to be transferred, 36
or has returned the title to the department in accordance with 37
paragraph (a) of this subsection, he or she may sign a statement 38
swearing that, in addition to the foregoing conditions, the 39
vehicle is at least ten (10) model years old. The statement 40
described in this paragraph may be used only to transfer such a 41
vehicle to a licensed used motor vehicle parts dealer or scrap 42
metal processor. The department shall promulgate a form for the 43
statement which shall include, but not be limited to: 44
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(i) A statement that the vehicle shall never be 45
titled again; it must be dismantled or scrapped; 46
(ii) A description of the vehicle including the 47
year, make, model and vehicle identification number; 48
(iii) The name, address, and driver's license 49
number, nondriver identification card number or tribal 50
identification card number of the owner; 51
(iv) A certification that the owner: 52
1. Never obtained a title to the vehicle in 53
his or her name; or 54
2. Was issued a title for the vehicle, but 55
the title was lost or stolen; 56
(v) A certification that the vehicle: 57
1. Is at least ten (10) model years old; and 58
2. Is not subject to any security interest or 59
lien; 60
(vi) An acknowledgment that the owner and buyer of 61
the vehicle realizes this form will be filed with the department 62
and that: 63
1. It is a misdemeanor, punishable by a fine 64
of not more than One Thousand Dollars ($1,000.00) or imprisonment 65
for not more than six (6) months, or both, for conviction of a 66
first offense of knowingly falsifying any information on this 67
statement; and 68
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2. It is a felony, punishable by a fine of 69
not less than One Thousand Dollars ($1,000.00) nor more than Five 70
Thousand Dollars ($5,000.00) or imprisonment for not less than one 71
(1) year nor more than five (5) years, or both, for conviction of 72
a second or subsequent offense of knowingly falsifying any 73
information on this statement; 74
(vii) The owner's signature and the date of the 75
transaction; 76
(viii) The name and address of the business 77
acquiring the vehicle; 78
(ix) The National Motor Vehicle Title Information 79
System identification number; and 80
(x) The business agent's signature and date along 81
with a printed name and title if the agent is signing on behalf of 82
a corporation. 83
(c) Until such time as the department makes available 84
an Internet-based system, the used motor vehicle parts dealer or 85
scrap metal processor shall mail or otherwise deliver the 86
statement required under paragraph (b) of this subsection (1) to 87
the department within three (3) business days of the completion of 88
the transaction, requesting that the department cancel the 89
Mississippi certificate of title and registration. Once the 90
department develops an Internet-based system, the used motor 91
vehicle parts dealer or scrap metal processor shall utilize such 92
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system and within two (2) business days electronically submit the 93
information contained in the statement using that system. 94
(d) Within two (2) business days of each day's close of 95
business, the used motor vehicle parts dealer or scrap metal 96
processor who purchases or receives motor vehicles for scrap or 97
for parts shall deliver in a format approved by the department, by 98
electronic means once developed and made available by the 99
department, a list of all such vehicles purchased that day for 100
scrap or for parts. That list shall contain the following 101
information: 102
(i) The name, address and contact information for 103
the reporting entity; 104
(ii) The vehicle identification numbers of such 105
vehicles; 106
(iii) The dates such vehicles were obtained; 107
(iv) The names of the individuals or entities from 108
whom the vehicles were obtained, for use by law enforcement 109
personnel and appropriate governmental agencies only; 110
(v) A statement of whether the vehicles were, or 111
will be, crushed or disposed of, or offered for sale or other 112
purposes; 113
(vi) A statement of whether the vehicle is 114
intended for export out of the United States; and 115
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(vii) The National Motor Vehicle Title Information 116
System identification number of the business acquiring the 117
vehicle. 118
In addition, the used motor vehicle parts dealer or scrap 119
metal processor must certify compliance with the requirements of 120
Section 63-21-39(1)(a). 121
(e) (i) For purposes of this subsection, the term 122
"motor vehicle" shall not include a vehicle which has been crushed 123
or flattened by mechanical means such that it is no longer the 124
motor vehicle as described by the certificate of title, or such 125
that the vehicle identification number is no longer visible or 126
accessible. 127
(ii) In cases in which crushed or flattened 128
vehicles are purchased or received, the purchasing or receiving 129
used motor vehicle parts dealer or scrap metal processor shall 130
verify that the seller has reported the vehicles in accordance 131
with this subsection. Such verification may be in the form of a 132
certification from the seller or a contract between the seller and 133
the purchasing or receiving used motor vehicle parts dealer or 134
scrap metal processor attesting to the seller's compliance with 135
the reporting requirements of this subsection. Such verification 136
must clearly identify the seller by a government issued photograph 137
identification card or employer identification number, and the 138
verification and copy of the identification card or number shall 139
be maintained by the purchasing or receiving used motor vehicle 140
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parts dealer or scrap metal processor for a period of not less 141
than two (2) years. 142
(f) The information obtained by the department in 143
accordance with paragraph (d) of this subsection (1) shall be 144
reported to the National Motor Vehicle Title Information System, 145
in a format that will satisfy the requirement for reporting this 146
information, in accordance with rules adopted by the United States 147
Department of Justice in 28 CFR 25.56. 148
(g) Until such time as the department develops and 149
makes available the Internet-based system described in paragraph 150
(d) of this subsection, the used motor vehicle parts dealer or 151
scrap metal processor who purchases or receives motor vehicles for 152
scrap or for parts shall deliver the information required by 153
paragraph (d) to the National Motor Vehicle Title Information 154
System through any data consolidator approved by such system, 155
within forty-eight (48) hours of the day the vehicle was purchased 156
or acquired by such used motor vehicle parts dealer or scrap metal 157
processor which shall satisfy the requirements of paragraph (d). 158
(h) The information obtained by the department in 159
accordance with paragraph (d) of this subsection (1) shall be made 160
available only to law enforcement agencies and for purposes of 161
canceling certificates of title. The information shall otherwise 162
be considered to be confidential business information of the 163
respective reporting entities. 164
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(i) All records required under the provisions of this 165
subsection shall be maintained for a period of two (2) years by 166
the reporting entity and shall include a scanned or photocopied 167
copy of the seller's or seller's representative's driver's license 168
or state-issued identification card or other valid form of 169
identification. 170
(j) A person who knowingly and willfully violates this 171
subsection (1), or any person who knowingly and willfully 172
falsifies or assists another person in falsifying the statement or 173
information required under paragraph (b) or (d) of this 174
subsection, or any person who knowingly and willfully sells a 175
vehicle upon which there is an unsatisfied lien or security 176
interest, or who purchases a vehicle without complying with either 177
paragraph (a) or (b) of this subsection and who knowingly and 178
willfully destroys or dismantles a vehicle upon which he knows 179
that there is an unsatisfied lien or security interest shall: 180
(i) Be guilty of a misdemeanor, punishable by a 181
fine not more than One Thousand Dollars ($1,000.00) or 182
imprisonment for not more than six (6) months, or both, for 183
conviction of a first offense; or 184
(ii) Upon conviction of a second or subsequent 185
offense, a felony, punishable by imprisonment for not less than 186
one (1) year nor more than five (5) years or a fine of not less 187
than One Thousand Dollars ($1,000.00) nor more than Five Thousand 188
Dollars ($5,000.00), or both. 189
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In addition, the court may order each person convicted to pay 190
restitution to any party suffering monetary loss in the amount of 191
such loss. No part of any sentence imposed by the court shall be 192
suspended unless such restitution has been paid in full. 193
(k) A person who knowingly and willfully fails to 194
deliver the title as required under paragraph (a) of this 195
subsection, or the statement required under paragraph (b) of this 196
subsection to the department within seventy-two (72) hours of the 197
completion of the transaction, or who, until such time as the 198
department develops and makes available the Internet-based system 199
described in paragraph (d), fails to deliver the information 200
required by paragraph (d) to the National Motor Vehicle Title 201
Information System through any data consolidator approved by such 202
system, within two (2) business days of the day the vehicle was 203
purchased or acquired by such used motor vehicle parts dealer or 204
scrap metal processor shall be in violation of this section, and 205
subject to a civil penalty of up to One Thousand Dollars 206
($1,000.00) per violation. Actions to impose this penalty may be 207
brought by any local or state law enforcement agency, district 208
attorney, or by the Attorney General, in any court of competent 209
jurisdiction. One-half (1/2) of the monies generated from such 210
civil penalties shall be deposited in a special fund created in 211
the State Treasury for use by the department's Title Bureau, and 212
one-half (1/2) of the monies generated from such civil penalties 213
shall be deposited in the general fund of the municipality if the 214
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suit was brought in a municipal court, or in the general fund of 215
the county if the suit was brought in the court of a county. 216
(2) For the purpose of requesting a branded title on a 217
vehicle with a salvage certificate of title, every owner of a 218
vehicle that has been issued a salvage certificate of title in 219
this state or any other state which has been restored in this 220
state to its operating condition which existed prior to the event 221
which caused the salvage certificate of title to be issued shall 222
make application to the department, accompanied by a certificate 223
of inspection issued by the Department of Public Safety in the 224
form and content specified in Section 63-21-15(5) and the payment 225
of a fee of Seventy-five Dollars ($75.00) for each motor vehicle 226
for which a certificate of inspection is issued. In addition, the 227
Department of Public Safety may charge such a person a fee in the 228
amount of Twenty-five Dollars ($25.00) for performing any vehicle 229
identification number verification required by federal law or 230
regulation for the vehicle for which the person is applying for a 231
title. All such monies shall be collected by the Department of 232
Public Safety and paid to the State Treasurer for deposit in a 233
special fund that is hereby created in the State Treasury to be 234
known as the "Salvage Certificate of Title Fund." Monies in the 235
special fund may be expended by the Department of Public Safety, 236
upon appropriation by the Legislature. The department shall 237
establish by regulation the minimum requirements by which a 238
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vehicle which has been issued a salvage certificate of title may 239
be issued a branded title. 240
(3) Before a branded title may be issued for a vehicle for 241
which a salvage certificate of title has been issued, the 242
applicant shall submit, by hand delivery or mail, such documents 243
and information to the Department of Public Safety as the 244
department may require for the purpose of determining if the 245
vehicle complies with the requirements of this section and all 246
applicable regulations promulgated by the Commissioner of Public 247
Safety and the department. The Department of Public Safety also 248
may require that an applicant bring a vehicle for which 249
application for a branded title is being made to a Highway Patrol 250
facility for a visual inspection whenever the department deems 251
that a visual inspection is necessary or advisable. Nothing in 252
this section shall be construed to prohibit inspectors of the 253
Mississippi Highway Patrol from conducting on-site inspections and 254
investigations of motor vehicle rebuilders or motor vehicle repair 255
businesses to determine if such businesses are in compliance with 256
all applicable laws relating to the motor vehicle title laws of 257
this state and regulations promulgated by the Commissioner of 258
Public Safety and the department. 259
SECTION 2. Section 97-17-71, Mississippi Code of 1972, is 260
brought forward as follows: 261
97-17-71. (1) For the purposes of this section, the 262
following terms shall have the meanings ascribed in this section: 263
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(a) "Railroad materials" means any materials, equipment 264
and parts used in the construction, operation, protection and 265
maintenance of a railroad. 266
(b) "Copper materials" means any copper wire, bars, 267
rods or tubing, including copper wire or cable or coaxial cable of 268
the type used by public utilities, common carriers or 269
communication services providers, whether wireless or wire line, 270
copper air conditioner evaporator coil or condenser, aluminum 271
copper radiators not attached to a motor vehicle, or any 272
combination of these. 273
(c) "Aluminum materials" means any aluminum cable, 274
bars, rods or tubing of the type used to construct utility, 275
communication or broadcasting towers, aluminum utility wire and 276
aluminum irrigation pipes or tubing. "Aluminum materials" does 277
not include aluminum cans that have served their original economic 278
purpose. 279
(d) "Dealer-to-dealer transaction(s)" means any 280
transaction of regulated metals, regardless of compensation, 281
between registered scrap metal dealers. 282
(e) "Law enforcement officer" means any person 283
appointed or employed full time by the state or any political 284
subdivision thereof, or by the state military department as 285
provided in Section 33-1-33, who is duly sworn and vested with 286
authority to bear arms and make arrests, and whose primary 287
responsibility is the prevention and detection of crime, the 288
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apprehension of criminals and the enforcement of the criminal 289
traffic laws of this state or the ordinances of any political 290
subdivision thereof. 291
(f) "Metal property" means materials as defined in this 292
section as railroad track materials, copper materials and aluminum 293
materials and electrical, communications or utility brass, metal 294
covers for service access and entrances to sewers and storm 295
drains, metal bridge pilings, irrigation wiring and other metal 296
property attached to or part of center pivots, grain bins, 297
stainless steel sinks, catalytic converters not attached to a 298
motor vehicle and metal beer kegs. Metal property does not 299
include ferrous materials not listed in this section. 300
(g) "Person" means an individual, partnership, 301
corporation, joint venture, trust, limited liability company, 302
association or any other legal or commercial entity. 303
(h) "Personal identification card" means any government 304
issued photographic identification card including a valid 305
identification card issued by a federally recognized Indian tribe 306
that contains a color photograph of the card holder and the card 307
holder's legal name, residence address and date of birth. 308
(i) "Photograph" or "photographically" means a still 309
photographic image, including images captured in digital format, 310
that are of such quality that the persons and objects depicted are 311
clearly identifiable. 312
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(j) "Purchase transaction" means a transaction in which 313
metal property is acquired whether the person acquiring the metal 314
property gives consideration for the metal property or not. For 315
purposes of Sections 97-17-71 through 97-17-71.3, the words 316
"purchase" and "purchased" mean a purchase transaction. 317
(k) "Purchaser" means a person who acquires metal 318
property, whether the person gives consideration for the metal 319
property or not. 320
(l) "Record" or "records" means a paper, electronic or 321
other method of storing information. 322
(m) "Registered business entity" means a business 323
entity created by statute, registered and in good standing with 324
its state of incorporation or formation, and having a federal 325
Employer Identification Number (EIN). This term does not include 326
any sole proprietorship, fictitious business name, or nonstatutory 327
general partnership. 328
(n) "Scrap metal" means any metal property that is 329
acquired by a scrap metal dealer in a purchase transaction. 330
(o) "Scrap metal dealer" means any person who is 331
engaged, from a fixed location or otherwise, acquiring by purchase 332
transaction, metal property that has served its original economic 333
purpose, whether or not the person is engaged in the business of 334
performing the manufacturing process by which metals are converted 335
into raw material products consisting of prepared grades and 336
having an existing or potential economic value. Any person who 337
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falls under this definition must register as a scrap metal dealer 338
pursuant to Sections 97-17-71 through 97-17-71.3 and its rules. 339
(2) Every scrap metal dealer or other purchaser shall keep 340
an accurate and legible record in which he shall enter the 341
following information for each purchase transaction: 342
(a) The name, address and age of the person from whom 343
the metal property is purchased as obtained from the seller's 344
personal identification card; 345
(i) If a person other than the seller delivers the 346
metal property to the purchaser, the purchaser shall enter the 347
name, address, and age of the person who delivers the metal 348
property, as obtained from the personal identification card of the 349
person delivering the metal property. If the person delivering 350
the metal property is the employee of the scrap metal dealer 351
acting in his official capacity and at the direction of the scrap 352
metal dealer, the purchaser is not required to enter the name, 353
address, and age of the person who delivers the metal property. 354
(ii) If the seller is a registered business 355
entity, and a person other than the seller delivers the metal 356
property to the purchaser, in addition to the information required 357
by this paragraph (a), the purchaser shall enter the name, 358
principal business address, state of incorporation or formation of 359
the entity, the federal Employer Identification Number (EIN) of 360
the entity, and the name and telephone number of a contact person 361
for the seller; 362
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(b) The date and place of each acquisition of the metal 363
property; 364
(c) The weight, quantity or volume and a general 365
physical description of the type of metal property, such as wire, 366
tubing, extrusions or casting, acquired in a purchase transaction; 367
(d) The amount of consideration given in a purchase 368
transaction for the metal property. If no consideration is given, 369
a record of the origin of the regulated metal; 370
(e) The vehicle license tag number, state of issue and 371
the make and type of the vehicle used to deliver the metal 372
property to the purchaser; 373
(f) A signed statement from the person receiving 374
consideration in the purchase transaction stating that he or she 375
is the rightful owner of the metal property or is entitled to sell 376
the metal property being sold. Signed statements as required by 377
this section may be collected and recorded on paper, by 378
photographic copy, or other alternative formats as set forth in 379
the rules promulgated by the Secretary of State; 380
(g) A scanned copy or a photocopy of the personal 381
identification card of the person receiving consideration, or 382
delivering the metal property in the purchase transaction; and 383
(h) A photograph, videotape or similar likeness of the 384
person receiving consideration or any person other than the seller 385
who delivers the metal property to the purchaser in which the 386
person's facial features are clearly visible and in which the 387
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metal property the person is selling or delivering is clearly 388
visible. 389
Such records shall be maintained by the scrap metal dealer or 390
purchaser for not less than two (2) years from the date of the 391
purchase transaction, and such records shall be made available to 392
any law enforcement officer or Secretary of State examiner during 393
usual and customary business hours. 394
(3) The purchaser shall photographically capture the metal 395
property as it exists when it is acquired by the purchaser. The 396
time and date shall be digitally recorded on the photograph, and 397
the identity of the person taking the photograph shall be 398
recorded. The purchaser shall permit any law enforcement officer 399
or Secretary of State examiner to make an inspection of the metal 400
property, if the metal property is still in the purchaser's 401
possession, and of all photographs of the metal property. Any 402
photograph of metal property taken and maintained pursuant to this 403
subsection shall be admissible in any civil or criminal 404
proceeding. 405
(4) During the usual and customary business hours of a scrap 406
metal dealer, a law enforcement officer or Secretary of State 407
examiner, after proper identification as a law enforcement officer 408
or Secretary of State examiner, shall have the right to inspect 409
all purchased metal property and all records pertaining to the 410
purchase of regulated metals in the possession of the scrap metal 411
dealer or purchaser. 412
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(5) (a) Whenever a law enforcement officer has reasonable 413
cause to believe that any item of metal property in the possession 414
of a scrap metal dealer has been stolen, a law enforcement officer 415
who has an affidavit from the alleged rightful owner of the 416
property identifying the property with specificity, including any 417
identifying markings, may issue and deliver a written hold notice 418
to the scrap metal dealer. The hold notice shall specifically 419
identify those items of metal property that are believed to have 420
been stolen and that are subject to the hold notice. Upon receipt 421
of the notice, the scrap metal dealer may not process or remove 422
the metal property identified in the notice from the place of 423
business of the scrap metal dealer for fifteen (15) calendar days 424
after receipt of the notice, unless sooner released by a law 425
enforcement officer. 426
(b) No later than the expiration of the fifteen-day 427
period, a law enforcement officer, after receiving additional 428
substantive evidence beyond the initial affidavit, may issue and 429
deliver a second written hold notice, which shall be an extended 430
hold notice. The extended hold notice shall specifically identify 431
those items of metal property that are believed to have been 432
stolen and that are subject to the extended hold notice. Upon 433
receipt of the extended hold notice, the scrap metal dealer may 434
not process or remove the items of metal property identified in 435
the notice from the place of business of the scrap metal dealer 436
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for fifteen (15) calendar days after receipt of the extended hold 437
notice, unless sooner released by a law enforcement officer. 438
(c) At the expiration of the hold period or, if 439
extended in accordance with this subsection, at the expiration of 440
the extended hold period, the hold is automatically released, then 441
the scrap metal dealer may dispose of the metal property unless 442
other disposition has been ordered by a court of competent 443
jurisdiction. 444
(d) If the scrap metal dealer contests the 445
identification or ownership of the metal property, the party other 446
than the scrap metal dealer claiming ownership of any metal 447
property in the possession of a scrap metal dealer, provided that 448
a timely report of the theft of the metal property was made to the 449
proper authorities, may bring a civil action in the circuit court 450
of the county in which the scrap metal dealer or purchaser is 451
located. The petition for the action shall include the means of 452
identification of the metal property utilized by the petitioner to 453
determine ownership of the metal property in the possession of the 454
scrap metal dealer. 455
(e) When a lawful owner recovers stolen metal property 456
from a scrap metal dealer who has complied with this section, and 457
the person who sold the metal property to the scrap metal dealer 458
is convicted of a violation of this section, or theft by receiving 459
stolen property under Section 97-17-70, the court shall order the 460
convicted person to make full restitution to the scrap metal 461
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dealer, including, without limitation, attorney's fees, court 462
costs and other expenses. 463
(6) For dealer-to-dealer transactions, records required to 464
be kept include: 465
(a) Name and address of selling dealer; 466
(b) Date and place of each acquisition of the metal 467
property; 468
(c) The weight, quantity, or volume and a general 469
description of the type of metal property; and 470
(d) The amount or type of consideration given for the 471
metal property by the purchasing dealer. 472
Such records shall be maintained by the scrap metal dealer 473
for not less than two (2) years from the date of the purchase 474
transaction, and such records shall be made available to any law 475
enforcement officer or Secretary of State examiner during usual 476
and customary business hours. 477
(7) It shall be unlawful for any person to give a false 478
statement of ownership or to give a false or altered 479
identification or vehicle tag number and receive money or other 480
consideration from a scrap metal dealer or other purchaser in 481
return for metal property. 482
(8) A scrap metal dealer or other purchaser shall not enter 483
into any cash transactions in payment for the purchase of metal 484
property. Payment shall be made by check issued to the seller of 485
the metal property or by electronic funds transfer. 486
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(9) If a person acquiring metal property fails to maintain 487
the records or to hold such materials as requested by a law 488
enforcement officer under Sections 97-17-71 through 97-17-71.3, 489
such failure shall be prima facie evidence that the person 490
receiving the metal property received it knowing it to be stolen 491
in violation of Section 97-17-70. 492
(10) It shall be unlawful for any person to transport or 493
cause to be transported for himself or another from any point 494
within this state to any point outside this state any metal 495
property, unless the person or entity first reports to the sheriff 496
of the county from which he departs this state transporting such 497
materials the same information that a purchaser in this state 498
would be required to obtain and keep in a record as set forth in 499
subsection (2) of this section. In such a case the sheriff 500
receiving the report shall keep the information in records 501
maintained in his office as a public record available for 502
inspection by any person at all reasonable times. This section 503
shall not apply to a public utility, as that term is defined in 504
Section 77-3-3, engaged in carrying on utility operations; to a 505
railroad, as that term is defined in Section 77-9-5; to a 506
communications service provider, whether wireless or wire line; or 507
to a scrap metal dealer. 508
(11) It shall be unlawful for a scrap metal dealer or other 509
purchaser to knowingly purchase or possess a metal beer keg, or a 510
metal syrup tank generally used by the soft drink industry, 511
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whether damaged or undamaged, or any reasonably recognizable part 512
thereof, on any premises that the dealer uses to buy, sell, store, 513
shred, melt, cut or otherwise alter scrap metal. However, it 514
shall not be unlawful to purchase or possess a metal syrup tank 515
generally used by the soft drink industry if the scrap metal 516
dealer or other purchaser obtains a bill of sale at the time of 517
purchase from a seller if the seller is a manufacturer of such 518
tanks, a soft drink company or a soft drink distributor. 519
(12) It shall be unlawful to sell to a scrap metal dealer 520
any bronze vase and/or marker, memorial, statue, plaque, or other 521
bronze object used at a cemetery or other location where deceased 522
persons are interred or memorialized, or for any such dealer to 523
purchase those objects, unless the source of the bronze is known 524
and notice is provided to the municipal or county law enforcement 525
agency where the dealer is located. The notice shall identify all 526
names, letters, dates and symbols on the bronze and a photograph 527
of the bronze shall be attached thereto. Written permission from 528
the cemetery and the appropriate law enforcement agency must be 529
received before any type of bronze described in this subsection 530
may be purchased, processed, sold or melted. 531
(13) (a) It shall be unlawful for any scrap metal dealer to 532
purchase any manhole cover and other similar types of utility 533
access covers, including storm drain covers, or any metal property 534
clearly identified as belonging to a political subdivision of the 535
state or a municipality, unless that metal property is purchased 536
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from the political subdivision, the municipal utility or the 537
manufacturer of the metal. Any purchaser who purchases metal 538
property in bulk shall be allowed twenty-four (24) hours to 539
determine if any metal property prohibited by this subsection is 540
included in a bulk purchase. If such prohibited metal property is 541
included in a bulk purchase, the purchaser shall notify law 542
enforcement no later than twenty-four (24) hours after the 543
purchase. 544
(b) It shall be unlawful for a person to sell, or any 545
scrap metal dealer to purchase, any copper telecommunication wire 546
in any form or any metal property clearly identified as belonging 547
to a telecommunications company, unless that metal property is 548
purchased from (i) an electrician or contractor to whom either a 549
license has been issued by a municipality or county in this state 550
or a current certificate of responsibility has been issued by the 551
State Board of Public Contractors; or (ii) a person who holds a 552
demolition permit issued by a municipality or county in this 553
state. It shall be unlawful for a person to sell, or a scrap 554
metal dealer to purchase, copper telecommunication wire that has 555
been burned to remove the insulation, unless the seller provides 556
certification, on a form as issued by the Secretary of State and 557
signed by a firefighter who is currently in compliance with the 558
certification requirements of the Mississippi Fire Personnel 559
Minimum Standards and Certification Board or a certified law 560
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enforcement officer, that the source of the copper 561
telecommunication wire was from a building destroyed by fire. 562
(14) It shall be unlawful for a scrap metal dealer or other 563
purchaser to purchase metal property from a person younger than 564
eighteen (18) years of age. 565
(15) Metal property may not be purchased, acquired or 566
collected between the hours of 9:00 p.m. and 6:00 a.m. 567
(16) Except as provided in this subsection, any person 568
willfully or knowingly violating the provisions of Sections 569
97-17-71 through 97-17-71.3 shall, upon conviction thereof, be 570
deemed guilty of a misdemeanor, and shall be punished by a fine 571
not to exceed One Thousand Dollars ($1,000.00) per offense, unless 572
the purchase transaction or transactions related to the violation, 573
in addition to any costs which are, or would be, incurred in 574
repairing or in the attempt to recover any property damaged in the 575
theft of or removal of the metal property, including replacement 576
costs of the metal property, are in aggregate an amount which 577
exceeds One Thousand Dollars ($1,000.00) but less than Five 578
Thousand Dollars ($5,000.00), in which case the person shall be 579
guilty of a felony and shall be imprisoned in the custody of the 580
Department of Corrections for a term not to exceed five (5) years, 581
fined not more than Ten Thousand Dollars ($10,000.00), or both. 582
Any person found guilty of stealing metal property or receiving 583
metal property, knowing it to be stolen in violation of Section 584
97-17-70, shall be ordered to make full restitution to the victim, 585
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including, without limitation, restitution for property damage 586
that resulted from the theft of the property. 587
(17) If the purchase transaction or transactions related to 588
the violation, in addition to any costs which are, or would be, 589
incurred in repairing or in the attempt to recover any property 590
damaged in the theft of or removal of the metal property, 591
including replacement costs of the metal property, are in 592
aggregate an amount which exceeds Five Thousand Dollars 593
($5,000.00) but less than Twenty-five Thousand Dollars 594
($25,000.00), the person shall be guilty of a felony and shall be 595
imprisoned in the custody of the Department of Corrections for a 596
term not less than one (1) year, but not to exceed ten (10) years, 597
fined not more than Fifteen Thousand Dollars ($15,000.00), or 598
both. 599
(18) If the purchase transaction or transactions related to 600
the violation, in addition to any costs which are, or would be, 601
incurred in repairing or in the attempt to recover any property 602
damaged in the theft of or removal of the metal property, 603
including replacement costs of the metal property, are in 604
aggregate an amount which exceeds Twenty-five Thousand Dollars 605
($25,000.00), the person shall be guilty of a felony and shall be 606
imprisoned in the custody of the Department of Corrections for a 607
term not less than three (3) years, but not to exceed twenty (20) 608
years, fined not more than Twenty Thousand Dollars ($20,000.00), 609
or both. 610
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(19) This section shall not be construed to repeal other 611
criminal laws. Whenever conduct proscribed by any provision of 612
this section is also proscribed by any other provision of law, the 613
provision which carries the more serious penalty shall be applied. 614
(20) This section shall apply to all businesses regulated 615
under this section without regard to the location within the State 616
of Mississippi. 617
(21) Sections 97-17-71 through 97-17-71.3 shall take 618
precedence over any and all local ordinances governing purchase 619
transactions of metal property. If any municipal or county 620
ordinance, rule or regulation conflicts with the provisions of 621
Sections 97-17-71 through 97-17-71.3, the provisions of Sections 622
97-17-71 through 97-17-71.3 shall preempt the municipal or county 623
ordinance, rule or regulation. 624
(22) This section shall be fully applicable to the 625
requirements for the purchase and sale of detached catalytic 626
converters provided in Section 97-17-71.3, Mississippi Code of 627
1972. 628
SECTION 3. Section 97-17-71.1, Mississippi Code of 1972, is 629
brought forward as follows: 630
97-17-71.1. (1) (a) From and after August 7, 2008, it 631
shall be unlawful for any scrap metal dealer or any person who 632
purchases scrap metal, deals in scrap metal, or otherwise engages 633
in the scrap metal business to fail to register with the Secretary 634
of State. All registrations under this section shall expire two 635
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(2) years from the date of the registration or the renewal 636
thereof. 637
(b) The Secretary of State may promulgate and adopt 638
such rules and regulations as are reasonably necessary to carry 639
out the provisions of this section and establish such registration 640
and renewal fees as are adequate to cover the administrative costs 641
associated with the registration program. 642
(c) The Secretary of State may deny, suspend, revoke or 643
refuse to renew any registration following notice to the applicant 644
or registrant in accordance with the promulgated rules and an 645
opportunity for a hearing for any failure to comply with this 646
section, or for other good cause. 647
(2) A violation of this section is a misdemeanor punishable 648
by a fine of not less than Five Hundred Dollars ($500.00) but not 649
to exceed One Thousand Dollars ($1,000.00) for the first offense. 650
Any person who shall be guilty of any subsequent violations of 651
this section requiring registration shall be guilty of a felony 652
offense and shall be imprisoned in the custody of the Department 653
of Corrections for a term not to exceed three (3) years, fined not 654
more than Five Thousand Dollars ($5,000.00), or both. 655
(3) (a) To register or renew registration, the registrant 656
must declare, under penalty of perjury, whether such registrant 657
has ever been convicted of any felony offense, or any misdemeanor 658
offense involving fraud, dishonesty, or deceit within five (5) 659
years preceding the date of application. If the registrant is a 660
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business entity, the registrant shall make the same declarations 661
on behalf of every owner of the business who participates in the 662
operation or management of the business. 663
(b) (i) An applicant who has been convicted of an 664
offense as described in paragraph (a) of this subsection may be 665
prohibited from registering under this section for five (5) years 666
from the date of conviction. 667
(ii) Any false statement submitted to the 668
Secretary of State for the purpose of unlawfully registering under 669
this section shall be punished as perjury in the manner provided 670
in Section 97-9-61, and a person so convicted shall be 671
disqualified for life from registering as a scrap metal dealer 672
under this section. 673
(4) The Secretary of State shall immediately report any 674
suspected criminal violation accompanied by all relevant records 675
to the Office of Attorney General and the appropriate district 676
attorney for further proceedings. 677
(5) It is unlawful for a person to make or cause to be made, 678
in a record or statement that is used or obtained in an 679
examination, action, proceeding, or filed under this section, a 680
statement that, at the time and in light of the circumstances 681
under which it is made, is false or misleading in a material 682
respect, or, in connection with the statement, to omit to state a 683
material fact necessary to make the statement made, in light of 684
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the circumstances under which it was made, not false or 685
misleading. 686
(6) The Secretary of State shall have the authority to: 687
(a) Conduct and carry out criminal background history 688
verification of the information provided by the applicant or 689
registrant and to require the submission of information and forms 690
from the applicant or registrant in order to accomplish the 691
registration duties imposed by this section; 692
(b) Require or permit a person to testify, file a 693
statement, or produce a record, under oath or otherwise, as to all 694
the facts and circumstances concerning a matter to be investigated 695
or about which an action or proceeding is to be instituted; 696
(c) Issue a cease and desist order, with a prior 697
hearing, against the scrap metal dealer or other purchaser alleged 698
to be in violation of this section, directing the person or 699
persons to cease and desist from further illegal activity. When 700
an immediate cease and desist order is issued, the Secretary of 701
State shall hold an administrative hearing on the alleged 702
violations within fifteen (15) business days; 703
(d) (i) Issue an order against any scrap metal dealer 704
or other purchaser for any violation of this section, imposing an 705
administrative penalty up to a maximum of One Thousand Dollars 706
($1,000.00) for each offense. Each violation shall be considered 707
a separate offense in a single proceeding or a series of related 708
proceedings. Any administrative penalty, plus reimbursement for 709
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all costs and expenses incurred in the investigation of the 710
violation and any administrative proceedings, shall be paid to the 711
Secretary of State; 712
(ii) For the purpose of determining the amount or 713
extent of a sanction, if any, to be imposed under paragraph (c)(i) 714
of this subsection, the Secretary of State shall consider, among 715
other factors, the frequency, persistence and willfulness of the 716
conduct constituting a violation of this section or any rule or 717
order hereunder; the number of persons adversely affected by the 718
conduct; and the resources of the person committing the violation; 719
(e) Bring an action in chancery court to enjoin the 720
acts or practices complained of to enforce compliance with this 721
section or any rule promulgated or order entered hereunder. Upon 722
a proper showing, a permanent or temporary injunction, restraining 723
order, or writ of mandamus shall be granted and a receiver or 724
conservator may be appointed for the defendant or the defendant's 725
assets. In addition, upon a proper showing by the Secretary of 726
State, the court may enter an order of rescission or restitution 727
directed to any person who has engaged in any act constituting a 728
violation of any provision of this section or any rule or order 729
hereunder, or the court may impose a civil penalty up to a maximum 730
of One Thousand Dollars ($1,000.00) for each offense, provided 731
that each violation shall be considered as a separate offense in a 732
single proceeding or a series of related proceedings. The court 733
may not require the Secretary of State to post a bond. 734
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(7) Any person aggrieved by a final order of the Secretary 735
of State may obtain a review of the order in the Chancery Court of 736
the First Judicial District of Hinds County, Mississippi, by 737
filing in the court, within thirty (30) days after the entry of 738
the order, a written petition praying that the order be modified 739
or set aside, in whole or in part. A copy of the petition shall 740
be forthwith served upon the Secretary of State and thereupon the 741
Secretary of State shall certify and file in court a copy of the 742
filing and evidence upon which the order was entered. When these 743
have been filed, the court has exclusive jurisdiction to affirm, 744
modify, enforce or set aside the order, in whole or in part. 745
SECTION 4. Section 97-17-71.2, Mississippi Code of 1972, is 746
brought forward as follows: 747
97-17-71.2. (1) It is an offense for a scrap metal dealer 748
to pay cash to a person who presents an air conditioner evaporator 749
coil or condenser, in whole or in part, for sale as scrap. 750
(2) Scrap metal described in subsection (1) may only be sold 751
for scrap by an authorized agent, representative or employee of 752
one (1) of the following: 753
(a) A licensed HVAC contractor who acquired the 754
evaporator coil or condenser in the performance as a contractor as 755
defined in Section 31-3-1; 756
(b) A company meeting all local or municipal 757
requirements to obtain a permit from that jurisdiction to repair, 758
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replace and install HVAC units containing copper evaporator coils 759
or condensers; 760
(c) Where the jurisdiction does not require a permit to 761
repair, replace and install HVAC units containing copper 762
evaporator coils or condensers, by a company holding a privilege 763
license indicating the business as that of an HVAC installer or 764
repairer; or 765
(d) A company holding a privilege license indicating 766
the business as that of an HVAC installer or repairer. 767
(3) The person offering an air conditioner evaporator coil 768
or condenser for sale as scrap on behalf of a company listed in 769
subsection (2) shall have in the person's possession documentation 770
that the company for whom it is being sold is a company described 771
in subsection (2), and that the person selling the evaporator coil 772
or condenser is an authorized agent, representative or employee of 773
that company. 774
(4) Payment for scrap metal described in subsection (1) must 775
be made by check or money order, and the name of the company or 776
the individual meeting the requirements of subsection (2) of this 777
section must be the payee on the check. 778
(5) (a) A violation of this section is a misdemeanor 779
punishable by a fine not to exceed One Thousand Dollars 780
($1,000.00) per offense. 781
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ST: Scrap metal dealers; bring forward code
sections related to.
(b) Nothing in this section shall be construed to 782
preclude a person violating this section from also being 783
prosecuted for any other applicable criminal offense. 784
(6) Any purchase of any air conditioner evaporator coil or 785
condenser, as described in this section, in whole or in part, is 786
subject to the record keeping requirements required by Section 787
97-17-71. 788
SECTION 5. This act shall take effect and be in force from 789
and after July 1, 2026. 790