(a) For the purposes of this section, the following terms have the following meanings:

1. (1) For the purposes of this section, the term “core recycler” means a person or business, including a recycler or junk dealer, that buys used individual catalytic converters, transmissions, or other parts previously removed from a vehicle. A person or business that buys a vehicle that may contain these parts is not a core recycler.

2. (2) “Commercial enterprise” includes any of the following:

   1. (A) An automobile dismantler licensed pursuant to Chapter 3 (commencing with Section 11500) of Division 5 of the Vehicle Code.
   2. (B) A core recycler that maintains a fixed place of business for the purpose of obtaining catalytic converters pursuant to this section.
   3. (C) A motor vehicle manufacturer, dealer, or lessor-retailer licensed pursuant to Division 5 (commencing with Section 11100) of the Vehicle Code.
   4. (D) An automotive repair dealer licensed pursuant to Chapter 20.3 (commencing with Section 9880) of Division 3.
   5. (E) Any other licensed business that may reasonably generate, possess, or sell used catalytic converters.

(b) A core recycler who accepts a catalytic converter for recycling shall maintain a written record that contains all of the following:

1. (1) The place and date of each sale or purchase of a catalytic converter made in the conduct of their business as a core recycler.
2. (2) The name, valid driver’s license number, and state of issue, or California-issued identification number, of the seller of the catalytic converter and the vehicle license number, including state of issue of a motor vehicle used in transporting the catalytic converter to the core recycler’s place of business. If the seller is a commercial enterprise, the written record shall include the name, physical business address, business telephone number, and the business license number or tax identification number of the commercial enterprise.
3. (3) A description of the catalytic converters purchased or sold, including the item type and quantity, amount paid for the catalytic converter, and identification number, if any, and the year, make, model, and vehicle identification number of the vehicle from which the catalytic converter was removed.
4. (4) A statement indicating either that the seller of the catalytic converter is the owner of the catalytic converter, or the name of the person from whom the seller obtained the catalytic converter, including the business, if applicable, as shown on a signed transfer document.
5. (5) If applicable, a copy of the title of the vehicle from which the catalytic converter accepted was removed that shows the vehicle identification number matches the number permanently marked on the catalytic converter.

(c) A core recycler engaged in the selling or shipping of used catalytic converters to other recyclers or smelters shall retain information on the sale that includes all of the following:

1. (1) The name and address of each person to whom the catalytic converter is sold or disposed of.
2. (2) The quantity of catalytic converters being sold or shipped.
3. (3) The amount that was paid for the catalytic converters sold in the transaction.
4. (4) The date of the transaction.

(d) A core recycler shall not provide payment for a catalytic converter unless all of the following requirements are met:

1. (1) The payment is made by check, credit card, or any other traceable form of payment other than cash, and provided to the seller by either of the following:

   1. (A)

      1. (i) Except as provided in clause (ii), mailed to the seller at the address provided pursuant to paragraph (3).
      2. (ii) For a seller that is a commercial enterprise, mailed to the seller’s business address.

   2. (B)

      1. (i) Except as provided in clause (ii), collected by the seller from the recycler on the third business day after the date of sale.
      2. (ii) A seller that is a commercial enterprise may receive immediate payment by check or by debit card or credit card.
2. (2) At the time of sale, the core recycler obtains a clear photograph or video of the seller.

3. (3)

   1. (A) Except as provided in subparagraph (B), the core recycler obtains a copy of the valid driver’s license of the seller or the seller’s agent containing a photograph and an address of the seller or the seller’s agent, or a copy of a state or federal government-issued identification card containing a photograph and an address of the seller or the seller’s agent.
   2. (B) If the seller prefers to have the check for the catalytic converter mailed to an alternative address, other than a post office box, the core recycler shall obtain a copy of a driver’s license or identification card described in subparagraph (A) and a gas or electric utility bill addressed to the seller at the alternative address with a payment due date no more than two months prior to the date of sale. For the purpose of this subparagraph, “alternative address” means an address that is different from the address appearing on the seller’s driver’s license or identification card.
4. (4) The core recycler obtains a clear photograph or video of the catalytic converter being sold. If applicable, the photograph or video shall capture the permanent marking of the vehicle identification number.
5. (5) At the time of sale, the core recycler obtains a written statement from the seller indicating how the seller obtained the catalytic converter.
6. (6) The seller is a person described in Section 10852.5 of the Vehicle Code.

(f) Notwithstanding subdivision (b), core recyclers accepting catalytic converters from commercial enterprises who hold a written agreement with a business that sells catalytic converters for recycling purposes are required to collect only the following information:

1. (1) Name of seller or agent acting on behalf of the seller.
2. (2) The seller’s physical business address and business telephone number.
3. (3) The seller’s business license number or tax identification number.
4. (4) Date of transaction.
5. (5) Number of catalytic converters received in the course of the transaction.
6. (6) Amount of money that was paid for catalytic converters in the course of the transaction.
7. (7) A copy of the written agreement.

(k) Upon conviction, a person who knowingly and willfully violates the requirements of this section shall be punished as follows:

1. (1) For a first conviction, by a fine of one thousand dollars ($1,000).

2. (2)

   1. (A) For a second conviction, by a fine of not less than two thousand dollars ($2,000).
   2. (B) In addition to the fine imposed pursuant to subparagraph (A), the court may order the defendant to cease engaging in the business of a core recycler for a period not to exceed 30 days.

3. (3)

   1. (A) For a third and subsequent conviction, by a fine of not less than four thousand dollars ($4,000).
   2. (B) In addition to the fine imposed pursuant to subparagraph (A), the court shall order the defendant to cease engaging in the business of a core recycler for a period not less than one year.