§ 51-35-03 — Exemptions

1. Section 51-35-02 does not apply to:
a. Purchases from another scrap metal dealer who regularly conducts scrap metal
business in this state.
b. Purchases from government agencies.
c. Purchases of scrap metal, excluding detached used catalytic converters, from
persons regularly engaged in the business of manufacturing metals or regularly
engaged in the business of generating and selling metals at wholesale, including
scrap processing or manufacturing that produces byproducts for scrap.
d. Purchases from a person with a business registered with the secretary of state
which is regularly engaged in the business of manufacturing catalytic converters
or vehicles, or regularly engaged in the business of generating detached used
catalytic converters in the ordinary course of the seller's business.
e. Purchases of scrap metal, excluding detached used catalytic converters, from
persons regularly engaged in the generation or transmission of electricity, or in
telephone, telegraph, or cable communications, if the person provides the scrap
metal dealer with a bill of sale or other written evidence of ownership of the scrap
metal purchased from the person.
2. Excluding a detached used catalytic converter, section 51-35-02 and section 51-35-05
do not apply to the purchase, trade, or barter of scrap metal, between an owner or
agent of a residential, commercial, or agricultural property and another person, for the
purpose of removing scrap metal, from the owner or agent's residential, commercial, or
agricultural property. This subsection applies only to the initial transaction between the
owner or agent and the person removing the scrap metal, and does not apply to a
subsequent sale of the same scrap metal.