Selling a catalytic converter in Minnesota

Who may sell a detached converter

It is unlawful for a person to possess a used converter that is not attached to a motor vehicle unless the converter is marked with the date it was removed from the vehicle and the identification number of that vehicle, or an alternative unique marking such as numbers, bar codes, or stickers, or unless the converter has been certified by the federal Environmental Protection Agency for reuse as a replacement part (subd. 11(a)). Where an alternative number is used it has to sit inside a numbering system law enforcement can immediately link to the vehicle identification number, the marking may be made in any permanent manner including engraving or permanent ink, and it has to clearly and legibly show the removal date and the number plus the linking method (subd. 11(b)).

Buying is restricted to registered dealers. It is unlawful for a person who is not a registered scrap metal dealer to purchase or acquire a used converter that is not certified by the Environmental Protection Agency for reuse, except where the converter is still attached to a motor vehicle, and a certified unit may be sold for reuse as a replacement part where the marking requirements of subdivision 11 are met (subd. 12). A registered dealer in turn may not purchase or acquire a used converter that is not attached to a vehicle unless it is marked as subdivision 11 requires and the seller provides a copy of the vehicle's title or registration to demonstrate an ownership interest (subd. 13(a)).

Businesses have an alternative route. A bona fide business engaged in vehicle dismantling, vehicle demolishing, scrap metal recycling, or automotive repair services may remove a converter as part of repair or recycling work without a copy of the title or registration, provided it supplies the identity of the seller's business with a written or electronic signature, an itemized list of each detached converter being sold including the donor vehicle identification number or a unique alternative number law enforcement can readily link to it, and the date each converter was removed (subd. 13(a)(1) to (3)). A dealer may also buy from a person holding an old vehicle that is no longer registered and titled without a copy of the registration or title where that person has an official law enforcement report stating the agency verified their ownership before the converter was removed (subd. 13(b)).

What the buyer must record

Every dealer, including an agent, employee, or representative, creates a record in English using an electronic record program at the time of each purchase or acquisition of scrap metal or a motor vehicle (subd. 1b(a)). The record holds a complete and accurate account or description, including the weight where the material is customarily bought by weight, the date, time, and place of receipt with a unique transaction identifier, a photocopy or electronic scan of the seller's proof of identification including the identification number, and the amount paid together with the number of the check or electronic transfer used (subd. 1b(a)(1) to (4)).

It then covers the vehicle and the seller's word. The record holds the plate number and a description of the vehicle used to deliver the material including make and model and any identifying marks such as a business name, decals, or markings where applicable, and a statement signed by the seller under penalty of perjury as provided in § 609.48 attesting that the material is not stolen, is free of liens and encumbrances, and that the seller has the right to sell it (subd. 1b(a)(5), (6)). It holds a copy of the receipt, which itself carries the dealer's name and address, the date and time the material was received, an accurate description, and the amount paid, and the dealer gives a copy of that receipt to the seller in every transaction (subd. 1b(a)(7), (d)). The identity or identifier of the employee completing the transaction goes in as well (subd. 1b(a)(8)).

Converters carry additional recording and database duties. A dealer that buys a used converter not attached to a vehicle has to record the information received under subdivisions 11 and 13, including the vehicle identification number or alternative number and the method by which law enforcement can link the converter to it, make that information available to law enforcement on request, and, since August 1, 2024, enter it into an electronic database available to law enforcement as the commissioner of public safety approves (subd. 13(c)). Those duties do not apply where the dealer buys a converter directly from another dealer that has certified in writing that it fully complied with them (subd. 13(e)). Records are kept three years (subd. 2) and are open at all reasonable times to inspection by any properly identified law enforcement officer, along with the metal itself (subd. 1b(b)). A dealer may not disclose a customer's personal information without consent unless required by law or in response to a law enforcement request (subd. 1b(f)). Video surveillance is also required: cameras positioned to record a frontal view showing a readily identifiable image of the face of each seller who enters the location, plus the seller's vehicle including its plate, with recordings kept at least sixty days (subd. 9).

How you are paid

A dealer, or the dealer's agent, employee, or representative, shall pay for all scrap metal purchases only by check or electronic transfer (subd. 3). There is no cash option and no dollar threshold; the rule covers every purchase, converters included. The number of the check or electronic transfer used goes into the transaction record (subd. 1b(a)(4)). Converters are also paid late: payment for a converter must not be made until at least five days after the sale to the dealer, and it has to be sent by check to the seller's address or to a bank account in the seller's name (subd. 13(f)). One class of seller is outside that wait: notwithstanding subdivision 13(f), a dealer may pay a bona fide business engaged in vehicle dismantling, vehicle demolishing, scrap metal recycling, or automotive repair services at any time for a direct sale of a converter by that business, by check payable to the seller or by electronic deposit into a bank account in the seller's name (subd. 13(g)).

The metal is frozen for a week as well. A dealer is prohibited from processing, selling, or removing a converter from its premises for at least seven days after the purchase or acquisition (subd. 13(d)). That prohibition falls away only where the dealer bought the converter directly from another dealer that certified in writing that it complied with the recording and seven-day rules for that unit (subd. 13(e)).

Law enforcement can extend a hold well beyond that. Where an official has probable cause to believe property in a dealer's possession is stolen or is evidence of a crime and notifies the dealer not to sell it, the dealer may not process or sell it or allow its removal; the hold is confirmed in writing by the originating agency within seventy-two hours and stays in effect for thirty days from the initial notification unless cancelled, renewed, or superseded by a notification to confiscate or a directive to release (subd. 8(a)). A dealer may process or dispose of the metal where no notification to confiscate is issued during the hold, or where an official does not physically remove a motor vehicle within fifteen calendar days of such a notification (subd. 8(e)). Where a dealer has to hold metal at law enforcement's direction or it is seized, the dealer and any other victim may seek restitution from the person who delivered the metal, including out-of-pocket storage expenses and lost profit (subd. 8(f)).

Penalties

Converter offenses are graded by count and the counts aggregate. A person who intentionally violates the section, other than the converter subdivisions, is guilty of a misdemeanor (subd. 6(a)). A person who violates subdivision 11, 12, or 13 is guilty of a misdemeanor for one converter, a gross misdemeanor for two, and a felony punishable by up to five years and a twenty thousand dollar ceiling stepping upward with volume: up to five years or a ten thousand dollar fine for at least three but not more than ten converters, up to ten years or twenty thousand dollars for more than ten but not more than seventy, and up to twenty years or one hundred thousand dollars for more than seventy (subd. 6(b)).

Aggregation is what makes those grades bite. The number of converters possessed, purchased, or acquired within any six-month period may be aggregated and the person charged accordingly, and where two or more offenses are committed by the same person in two or more counties the person may be prosecuted in any one of those counties for all of the aggregated offenses (subd. 6(b)). Where the court imposes a penalty under subdivision 6 and orders restitution to an identifiable victim, the out-of-pocket losses it considers have to include the costs and expenses of replacing the converter and may include other restitution costs allowed under § 611A.04 (subd. 6a).

Registration and training sit behind all of it. Every dealer registers annually with the commissioner of public safety and pays a fifty dollar annual fee, and the commissioner may cancel or deny the registration of a dealer convicted of a felony violation under subdivision 6 (subd. 4(a) to (c)). Each dealer reviews the educational materials the superintendent of the Bureau of Criminal Apprehension provides under § 299C.25 and ensures employees do the same, and a dealer buying used converters has to ensure that employees handling converter transactions are specifically trained and familiar with the additional converter requirements (subd. 5). The section preempts and supersedes any local ordinance or rule on the same subject matter (subd. 10).

What this means when you sell to us

Every unit has to be marked with the removal date and the donor vehicle's identification number, or a linked alternative marking, before we can buy it (subd. 11(a), subd. 13(a)). Bring a government photo ID, and a copy of the vehicle's title or registration showing your ownership interest (subd. 1b(a)(3), subd. 13(a)). Businesses in dismantling, demolishing, recycling, or repair instead bring a signed itemized list giving each donor vehicle identification number and each removal date (subd. 13(a)(1) to (3)). You sign a not-stolen statement under penalty of perjury, we photograph the transaction, and we keep the record three years (subd. 1b(a)(6), subd. 2, subd. 9). Payment is by check or electronic transfer only (subd. 3), and for a converter it cannot be made until at least five days after the sale, sent by check to your address or deposited to a bank account in your name (subd. 13(f)). A dismantling, demolishing, recycling, or repair business selling directly to us can be paid at any time (subd. 13(g)). We cannot move a unit for seven days (subd. 13(d)).