All Roll Calls
Yes: 271 • No: 10
KentuckySB 2912026 Regular SessionSenateWALLET
AN ACT relating to recyclers and declaring an emergency.
Sponsored By: Brandon J. Storm (Republican)
Became Law
Administrative Regulations And ProceedingsCommerceEffective Dates, EmergencyEnvironment And ConservationLicensingMotor VehiclesPeace Officers And Law EnforcementState AgenciesTransportationWaste ManagementCorrections ImpactLocal Mandate
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Bill Overview
Analyzed Economic Effects
13 provisions identified: 1 benefits, 8 costs, 4 mixed.
Metal buyers must keep records longer
Covered buyers must keep transaction records for two years and purchased property, or an image, for three business days. They must provide required records to law enforcement and allow inspections during business hours. An officer can seize property reasonably believed stolen. If the officer gives notice but does not seize it, buyers must hold it for 30 additional days unless released earlier. Buyers that close must transfer required records to the designated law enforcement agency.
Recycler license fees and possible bonds
The Motor Vehicle Commission sets annual license fees for automobile, vehicle, machinery, and material recyclers. Each annual fee cannot exceed $500. The Commission can require a $1,000 to $5,000 bond when it has reasonable cause to doubt an operator's financial responsibility or compliance. The operator must maintain that bond. Forfeited bond money goes to the Commission.
Recycler violations bring fines and license loss
The Motor Vehicle Commission can inspect recyclers, order fixes, and seek court orders requiring compliance. It can deny, change, suspend, or revoke licenses for covered violations and keeps a centralized enforcement record. Suspended or revoked licenses must be surrendered immediately, and disciplinary appeals follow Kentucky's administrative hearing law. Violating Sections 18 to 24 or an order under them is a misdemeanor with a $100 to $1,000 fine upon conviction. Each day of violation counts as a separate offense.
Recyclers need licenses and background checks
Kentucky secondary metals recyclers need a Motor Vehicle Commission license for each location, renewed yearly and displayed. Applicants must be at least 18, apply under oath, and complete a name-based background check. Listed theft-related felony convictions or pleas, felony drug offenses, and intentional recycler-licensing violations can disqualify applicants. Applicants pay application and renewal fees; any Kentucky State Police background-check charge cannot exceed processing costs. Automobile, vehicle, machinery, and material recyclers also need licenses to operate in Kentucky.
Metal theft convictions can block scrap sales
Law enforcement must provide recyclers a searchable list of people convicted of metal-related theft, updated monthly. The list also goes to the Commission for inclusion in LeadsOnline. Before submitting a name, the Commission must give reasonable notice and a chance to be heard. After a final order, listed people cannot sell or give articles to recyclers, and recyclers cannot accept them. A person appealing inclusion can continue these transactions unless a final order has been entered.
Metal buyers must report seller details
Covered metal buyers must report each covered transaction in LeadsOnline within two days, subject to the law's exceptions. Registers must include government identification, seller contact details, and transaction dates and times; an identification copy already filed can be referenced. Required records also include vehicle details and photos when applicable, property photos, material descriptions, weight, payment amount, and pricing basis. Covered catalytic converter purchases require seller identification, a replacement-part receipt, and vehicle title or registration. The Motor Vehicle Commission checks compliance through LeadsOnline, whose information can be shared only with law enforcement and regulatory bodies.
Roadside recyclers face screening with zoning relief
A recycler less than 1,000 feet from a road right-of-way needs a Commission license. The Commission can license it when artificial screening, natural screening, or the land practically hides it from motorists. An establishment that cannot practically be screened must be removed. A recycler operating as a conforming use under local industrial zoning rules is not in violation of Sections 18 to 24.
Nonprofit vehicle dealers get limited exemptions
Nonprofit motor vehicle dealers are exempt from the requirements in Section 17(8) and Section 28. These are limited exemptions, not an exemption from dealer licensing.
Scrap sellers face age and hour limits
Covered buyers cannot purchase regulated metals from sellers under 18 or sellers who refuse required identification and information. Covered retail sales must occur from 7:00 a.m. to 7:00 p.m. These limits cover specified catalytic converters, returnable metal beverage containers, railroad rails, nonferrous metals, and objects containing them. Smelted, burned, or melted metal requires a signed ownership certificate or the owner's signed permission. Buying or selling copper telecommunications wire, or metal clearly belonging to a telecommunications company, is a Class B misdemeanor unless a statutory transaction exclusion applies.
Recyclers must post warnings and stay reachable
Secondary metals recyclers must continuously display a prominent notice using letters two inches high. It must list usual business hours and warn about identification, possible written ownership proof, and criminal penalties for false information. Recyclers must have email, fax, or similar equipment available to receive stolen-metal notices during usual business hours. They must report contact-information changes to the Commission within two days.
Local metal buying rules need state safeguards
Local governments adopting metal-purchase ordinances must include the law's specified minimum provisions. These are KRS 15.232, KRS 16.066, KRS 433.892 to 433.896, Sections 1 to 12 of this Act, and KRS 512.090. Local governments can add further rules beyond that minimum.
Missing metal reports carry criminal risks
Failing or refusing to enter a required metals transaction report in LeadsOnline is a Class B misdemeanor. A secondary metals recycler's intentional failure to report or keep required register information also counts as prima facie evidence of knowing property was stolen. That means the failure can support a finding of knowledge in a receiving-stolen-property case; it is not an automatic conviction.
Recyclers get time to switch licenses
The law allows eligible recyclers to keep operating for up to 90 days after its effective date while switching licenses. Secondary metals recyclers must hold an existing state registration certificate; other covered recyclers must hold a Department of Highways permit. They must return the old certificate or permit within 30 days after receiving the new license. If their application is denied, they must return it immediately. The law also repeals KRS 177.920, the old permit-fee and renewal provision; the supplied text does not establish any fee savings.
Sponsors & Cosponsors
Sponsor
Brandon J. Storm
Republican • Senate
Cosponsors
Matthew Deneen
Republican • Senate
Roll Call Votes
Senate vote • 4/14/2026
passed
Yes: 32 • No: 6
House vote • 4/14/2026
passed
Yes: 83 • No: 3
Senate vote • 3/31/2026
passed
Yes: 37 • No: 0
House vote • 3/27/2026
3rd reading, passed
Yes: 88 • No: 0
Senate vote • 3/11/2026
3rd reading, passed
Yes: 31 • No: 1
Actions Timeline
delivered to Secretary of State (Acts Ch. 182)
4/14/2026enrolled, signed by Speaker of the House
4/14/2026Senateenrolled, signed by President of the Senate
4/14/2026Senatereceived in Senate
4/14/2026Senatepassed 83-3
4/14/2026Houseveto overridden
4/14/2026Houseposted for consideration of Governor's veto
4/14/2026taken from Rules (H)
4/14/2026Houseto Rules (H)
4/14/2026Housereceived in House
4/14/2026Housepassed 32-6
4/14/2026Senateveto overridden
4/14/2026Senateposted for passage for consideration of Governor's veto
4/14/2026to Rules (S)
4/14/2026Senatereceived in Senate
4/14/2026SenateVetoed
4/10/2026delivered to Governor
3/31/2026enrolled, signed by Speaker of the House
3/31/2026Senateenrolled, signed by President of the Senate
3/31/2026Senatepassed 37-0
3/31/2026SenateSenate concurred in Committee Substitute (1)
3/31/2026Senateposted for passage for concurrence in House Committee Substitute (1)
3/31/2026Houseto Rules (S)
3/27/2026Senatereceived in Senate
3/27/2026Senate3rd reading, passed 88-0 with Committee Substitute (1)
3/27/2026House
Bill Text
Current
4/14/2026
Introduced
3/11/2026
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