A buried provision in Kentucky's SB291 shifts licensing authority for scrap metal dealers—and creates new compliance requirements for an industry that thought it was already regulated.
Most Kentucky trucking and transportation business owners don't realize that a provision buried deep in SB291 has quietly changed how secondary metals recyclers—including scrap dealers, junk buyers, and itinerant collectors—must be licensed and regulated.
Here's what happened: Under the old system, secondary metals recyclers obtained a certificate of registration from the Department of Professional Licensing. That's no longer the path. As of the bill's passage (with an emergency declaration), every secondary metals recycler must now obtain a license from the Motor Vehicle Commission instead.
The shift isn't just a paperwork shuffle. The Motor Vehicle Commission license comes with several new requirements that didn't apply under the old certificate:
Failure to comply with these new requirements carries penalties, though the bill itself doesn't specify the exact fine amounts in the section affecting recyclers.
The bill was declared an emergency, meaning it took effect immediately upon passage and approval—not at some future date. However, there is a 90-day grace period for anyone who already holds a certificate of registration from the Department of Professional Licensing. That window gives existing operators time to apply for their new Motor Vehicle Commission license without immediate penalty.
After that 90 days, the old certificate is no longer valid. You must have the new Motor Vehicle Commission license to legally operate.
This applies broadly: secondary metals recyclers, small junk dealers, scrap metal buyers, and itinerant collectors all fall under the new requirement. If you buy, sell, or process scrap metal in Kentucky, you need to understand this change.
For trucking and transportation companies that haul scrap metal or work with recyclers, it's worth knowing that your suppliers and partners are now operating under a different regulatory framework. It may affect their operational costs and timelines.
If you hold a current certificate of registration, use your 90-day grace period to contact the Motor Vehicle Commission and begin the application process for your new license. Gather documentation for background checks, identify each location that will need its own license, and budget for annual renewal fees going forward.
The specific language governing this change appears in Section 2, Page 2 of SB291.
For a more detailed breakdown of how this affects your specific operation, contact your state trade association or local business counsel.