Metals Theft Laws

Effective July 1, 2012

The regulation of transactions involving regulated metals is preempted to the state unless the ordinance or regulation was enacted before March 1, 2012.

The law creates a new category of “restricted regulated metals” for which additional restrictions and requirements are imposed on Secondary Metals Recyclers.  (See below, page 3)

Recordkeeping

Secondary Metals Recyclers are required to collect certain information from any seller of regulated metals and keep records of such information for not less than 3 years.

Required information that must be collected includes:

• The name and address of the secondary metals recycler
• The name, initials, or other ID of the individual entering the information on the ticket
• The date and time of the transaction
• The weight, quantity, or volume, and a description of the type of regulated metals property purchased
• The amount of consideration
• A signed statement from the person delivering the regulated metals property stating that she or he is the rightful owner of, or is entitled to sell, the regulated metals property being sold.  If the purchase involves a stainless steel beer keg, the seller must provide written documentation from the manufacturer that the seller is the owner or is an employee or agent of the manufacturer.
• The distinctive number from the personal identification card of the person delivering the regulated metals property to the secondary metals recycler
• A description of the person from whom the regulated metals property was acquired, including:
  • Name, current address, workplace, and home and work phone numbers
  • Height, weight, date of birth, race, gender, hair color, eye color, and any other identifying marks
  • The right thumbprint, free of smudges and smears
  • Vehicle description to include the make, model, and tag number of the vehicle and trailer of the person selling the regulated metals property
  • Any other information required by the Department of Law Enforcement.
• A photograph, videotape, or digital image of the regulated metals being sold
• A photograph or videotape of the person receiving consideration
• If a motor vehicle is purchased from a licensed salvage motor vehicle dealer for scrap, the secondary metals recycler must obtain a signed statement from the seller that the seller has surrendered the title to the Department of Highway Safety and Motor Vehicles or otherwise complied with the titling requirements.

During the usual and customary business hours, law enforcement may inspect records and regulated metals property in the possession of the secondary metals recycler.

Electronic Records and Reporting

Secondary metals recyclers must maintain an electronic database of all purchase transactions.  All of the above information, including the oath of ownership, seller signature and thumbprint, must be in electronic form that can be downloaded onto a paper form.

Electronic records of purchase transactions must be electronically transmitted to law enforcement no later than 10 a.m. of the business day following the date of the transaction and must not include the price paid.  If law enforcement requests records for the purpose of a criminal investigation, the secondary metals recycler must make available the original transaction records, including the price paid, and transmit them within 24 hours.

Hold

Whenever law enforcement officer has reasonable cause to believe that certain items of regulated metals property in the possession of a secondary metals recycler have been stolen, the law enforcement officer may issue a 15 calendar day hold notice to the secondary metals recycler.  Law enforcement may issue a second extended hold notice for 45 calendar days.

Exemptions

This law does not apply to purchases of regulated metals property from:

• Organizations, corporations, or associations registered with the state as charitable, philanthropic, religious, fraternal, civic, patriotic, social, or school-sponsored organizations or associations, or from any nonprofit corporation or association
• A law enforcement officer acting in an official capacity
• A trustee in bankruptcy, executor, administrator, or receiver who has presented proof of such status to the secondary metals recycler
• Any public official acting under judicial process or authority who has presented proof of such status to the secondary metals recycler
• A sale on the execution, or by virtue of any process issued by a court, if proof thereof has been presented to the secondary metals recycler
• A manufacturing, industrial, or other commercial vendor that generates regulated materials in the ordinary course of business

Payment

No cash transactions in excess of $1,000 for the purchase of regulated metals property. 
No cash for restricted regulated metals property. 

Payment in excess of $1,000 for regulated metals must be made by check issued to the seller of the metal and payable to the seller.  Payment for restricted regulated metals must be by check issued to the seller and payable to the seller or by electronic payment.  Checks are to be mailed after 3 days and may not be mailed to a P.O. Box. 

Checks may be provided at the time of purchase if the seller is:

• Organizations, corporations, or associations registered with the state as charitable, philanthropic, religious, fraternal, civic, patriotic, social, or school-sponsored organizations or associations, or from any nonprofit corporation or association
• A law enforcement officer acting in an official capacity
• A trustee in bankruptcy, executor, administrator, or receiver who has presented proof of such status to the secondary metals recycler
• Any public official acting under judicial process or authority who has presented proof of such status to the secondary metals recycler
• A sheriff acting under authority of a court’s writ of execution, or by virtue of any process issued by a court, if proof thereof has been presented to the recycler
• A manufacturing, industrial, or other commercial vendor that generates regulated materials in the ordinary course of business

Registration

Secondary metals recyclers must register with the department.  A secondary metals recycler must pay a fee of $6 per location at the time of registration and an annual renewal fee of $6 per location on October 1 each year.  A secondary metals recycler’s registration must be conspicuously displayed at the place of business.  The Department of Revenue may impose a civil fine of up to $10,000 for each knowing and intentional violation of the registration requirements.  If the fine is not paid within 60 days, the department may bring a civil action to recover the fine.  Registration may be denied or revoked, restricted, or suspended by the department under certain circumstances.

Restricted Regulated Metals

The following materials are subject to the new cash ban and other restrictions:

• Manhole covers,
• Electrical light poles or other similar items,
• Guard rails, street or traffic signs or signals or related hardware,
• Communication, transmission, distribution, and service wires from a utility,
• Funeral markers or vases, historical markers,
• Railroad equipment,
• Any item marked by a government entity,
• Copper, aluminum, or aluminum-copper condensing or evaporating coils,
• Aluminum or stainless steel propane containers,
• Beer kegs,
• Catalytic converters,
• Burned metallic wire,
• Bronze or commercial FDC valves,
• Brass or bronze commercial potable water backflow preventer valves,
• Shopping carts,
• Brass water meters,
• Storm grates,  and
• Brass commercial sprinklers heads.

Prohibited Acts

Secondary metals recycler may not do or allow any of the following:

• Purchase regulated metals property, restricted regulated metals property, or ferrous metals before 7 a.m. or after 7p.m.
• Purchase regulated metals property, restricted regulated metals property, or ferrous metals from any seller who presents such property for sale when it was not transported in a motor vehicle
• Purchase regulated metals property, restricted regulated metals property, or ferrous metals from any location other than a fixed location
• Purchase regulated metals property from a seller who:
  • Uses a name other than his or her own or the registered name of the seller’s business.
  • Is younger than 18 years of age
  • Is under the influence of drugs and alcohol
• Purchase any restricted regulated metals property unless the secondary metals recycler obtains proof that the seller:
  • Owns the property
  • Is an employee, agent or contractor of the property’s owner who is authorized to sell the property

Penalties

A secondary metals recycler who knowingly and intentionally violates the inspection or hold requirements, engages in a pattern of failing to keep records, purchases regulated metals from any seller who presents the property for sale when it was not transported in a motor vehicle or violates the payment prohibition commits a felony of the third degree.  Recyclers committing a third or subsequent violation, commit a felony of the third degree.  A recycler who commits a third or subsequent violation commits a felony of the first degree.

A person acting as a secondary metals recycler who is not registered with the department commits a felony of the third degree.

If a lawful owner recovers stolen regulated metals property from a secondary metals recycler who has complied with this law, and the seller is convicted of theft, a violation of the metals theft law, or dealing in stolen property, the defendant must make full restitution to the secondary metals recycler.