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SB 1916

RECYCLABLE METAL PURCHASE

104th Regular Session Introduced by Chris Balkema

Tightens recyclable metal purchases by requiring ownership documents, blocks cash payments for catalytic converters $100+, and restricts sales to fixed addresses for traceability.

Referred to Assignments
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Bill Summary · SB 1916

Summary of SB 1916 (Recyclable Metal Purchase)

Purpose and Intent

SB 1916 amends the Recyclable Metal Purchase Registration Law (815 ILCS 325/4.1 and 4.4) to strengthen controls around the sale and purchase of certain recyclable metal materials, with a focus on preventing improper ownership claims and illicit purchases of catalytic converters and related items. The bill introduces documentation requirements for sellers, clarifies where sales may occur, and prohibits cash payments for certain catalytic converter transactions.

Key Provisions

Section 4.1 — Restricted purchases (amended 815 ILCS 325/4.1)

  • Prohibits possession, purchase, sale, or attempted sale of:
    • Materials clearly marked as property of a business or another party.
    • Property associated with government, utilities, or railroad use (examples include guardrails, transformers, grounding straps, wiring, poles, street signs, railway components, and related items).
    • Cemetery plaques/ornaments; manhole signs/coles; sewer grates; or transmission gear.
    • Any catalytic converter or its contents not attached to a motor vehicle, unless the seller is licensed as an automotive parts recycler or scrap processor.
  • Exception: The restriction does not apply if the seller provides written documentation reasonably demonstrating ownership or authorization to sell on behalf of the owner. The seller’s documentation must be copied by the recyclable metal dealer and kept with the purchase records required under Section 3.

Section 4.4 — Purchase of detached catalytic converters (amended 815 ILCS 325/4.4)

  • It is unlawful to purchase or acquire a used, detached catalytic converter or nonferrous part unless: 1) The purchaser is a licensed recyclable metal dealer. 2) The sale/purchase occurs at the fixed business address of the seller or of a licensed recyclable metal dealer that is a party to the transaction. 3) The purchaser has maintained the information required under Section 3.
  • Prohibition on cash: A recyclable metal dealer may not pay cash for any catalytic converter or its contents valued at $100 or more.

Terminology and Cross-References

  • The bill updates references from “licensed recyclable metal dealer” to “recyclable metal dealer” in places, aligning terminology.
  • Requires documentation to be maintained with purchase records per Section 3.

Who is Affected

  • Recyclable metal dealers, including those handling catalytic converters and other nonferrous materials.
  • Sellers of recyclable metals, particularly those owning or authorized to sell items on behalf of owners (as evidenced by documentation).
  • Transactions involving detached catalytic converters, with specific location and payment requirements.

Procedural and Timeline Aspects

  • Introduced: February 6, 2025 (Sen. Chris Balkema).
  • First Read/Referral: February 6, 2025; assigned to Assignments; later referred to Business & Commerce (March 17, 2025).
  • Status: Referred to Assignments; companion bill HB 4367 exists.
  • Official status notes show standard committee and floor progression typical of Illinois bills.

Potential Impact

  • Strengthened verification: Dealers must verify ownership/authorization for items with owner documentation, potentially reducing illegal transfers of property.
  • Documentation burden: Dealers must copy and retain seller documentation alongside purchase records, increasing record-keeping requirements.
  • Controlled transactions for catalytic converters: Limits on cash payments for catalytic converters valued at $100+; transactions must occur at specified fixed addresses, improving traceability.
  • Operational flexibility: Allows sales of detached catalytic converters at either the seller’s or dealer’s fixed address, rather than restricting to the dealer’s address alone.

Related Information

  • Companion bill: HB 4367.
  • Based on amendments to the Recyclable Metal Purchase Registration Law (P.A. 102-906; P.A. 103-677).

If you’d like, I can provide a side-by-side comparison with current law or a brief section-by-section impact analysis.

Compiled from official sources — confirm details with the bill’s official record.

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