2015 State Legislative Session Update

We've listed some of the latest bills to pass or see movement below, but you can always check ISRI's State Legislative Tracking System for the latest, or view links to current law and newly passed bills impacting the industry on the State-Specific Resources page; you can access both from ISRI's State Policy page. (Please note, due to the fast pace of changes in the states, some of the bills below may have already passed or failed since the time this summary was written.)

Following significant negotiations on vehicle detitling in Tennessee, SB 1098 was ultimately enacted with language supported by the industry. The new law requires additional information be collected from individuals who want to sell vehicles without a title.  The vehicles must be at least 12 years old, have been reported to NMVTIS if applicable and must be accompanied by a statement from the owner that the vehicle is not subject to any security interest or lien, as well as collection of the seller's right thumbprint.

Metals theft continues to be a moving target in the states.  In Minnesota, SF 878 was signed late in May to repeal the Minneapolis Automated Property System database proposed and enacted in the 2013/14 legislation. The repealed provision would have required the City of Minneapolis to build and maintain a database designed to track all scrap metal and vehicles sold for scrap transactions in Minnesota.  Since that time, however, neither the city nor law enforcement in the state were able to implement the desired system making compliance impossible, thus the need for a full repeal of that requirement.  Michigan also required changes to its existing law passed just a year ago.  The legislature this year passed SB 304, clarifying the special payment requirements for catalytic converters; coils and condensers; and copper wire, pipe, and fittings. This clarification was required after conflicting interpretations of the law last year were issued by the state attorney general.

Texas and Kansas both passed major amendments to their metals theft laws in end-of-session squeakers. Texas HB 2187 was unofficially declared dead after an unrelated Senate amendment was added at the last hour forcing the bill back to the House and a Speaker who indicated the non-germane amendment was unacceptable and thus “dead on arrival.” However, in a rare move never witnessed before by many ReMA members and legacy Texas industry advocates, the Texas House stripped the Senate amendment and sent it to the governor in a flurry to beat the June 1st deadline. Assuming the governor signs, sellers will have to obtain a cash transaction card to receive payment for scrap metal in “cash” or otherwise must be paid by check, money order, or electronic funds transfer; the bill also makes changes to the materials covered, exemptions, and penalties. For the low-down on the situation in Kansas, see the related article in this edition of SPAN.

ISRI is seeing a new trend in state legislation this year with the increasing number of bills pertaining to recycled tires.  Concerns over the safety of synthetic turf are quickly spreading following salacious and unsubstantiated rumors that the crumb rubber in the turf causes cancer.  The concern of abandoned tires also cause rise to a desire by some policymakers to implement manufacturer take-back (otherwise known as Extended Producer Responsibility – EPR) laws.  Legislation was introduced at the state or local level in New York, Connecticut, Vermont, California, and Massachusetts sparking the need for significant focus and advocacy by the tire recycling community. With New York's session closing on June 17 and Connecticut on June 3, both the synthetic turf and tire EPR issues appear to be dead for the year. However, California SB 47, while currently under hold in the Senate Appropriations Committee, isn't out quite yet; it managed to resurrect itself from the committee's file at the end of May only to be placed on hold. One tire bill did make it through the grinder this month, though: Michigan HB 4439 amends state fees on certificates of titles to require a tire disposal surcharge of $1.50 on each certificate of title, salvage title, scrap title, or duplicate that a person receives, to be deposited into the scrap tire regulatory fund.