(B) This section does not apply to:

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(1) a railroad company or a railroad company’s authorized agent;

(2) a business that owns a railroad spur;

(3) an independent railroad contractor; or

(4) a person or business with a letter of authorization from a special agent of a railroad company class 1 or shortline. An entity removing or authorizing the removal of railroad track materials from private property must obtain a letter of authorization from the railroad company servicing the property.

(C) Payment for railroad track materials only must be made to the railroad company or the company’s principals, the business that owns the railroad spur or the businesses’ principals, the independent railroad contractor or the contractor’s principals, or the person or business authorized by the railroad company or the businesses’ principals.

(D) A person who violates this section:

(1) for a first offense, is guilty of a misdemeanor, and, upon conviction, must be fined not less than two hundred and fifty dollars, or imprisoned not more than one year, or both;

(2) for a second offense, is guilty of a misdemeanor, and, upon conviction, must be fined not less than five hundred dollars, or imprisoned not more than three years, or both; and

(3) for a third or subsequent offense, is guilty of a felony, and, upon conviction, must be fined not less than one thousand dollars, or imprisoned not more than five years, or both.