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and Economic
be introduced
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• AT&T Services, Inc.
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• Kraft Foods, Inc.
• Coca-Cola Co.
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• Peabody Energy
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• Koch Industries, Inc.
• ExxonMobil
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• Wal-Mart Stores, Inc.
• Salt River Project
• Altria Client Services, Inc.
• American Bail Coalition
• State Farm Insurance
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Did you know the NRA--the
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Model Legislation

Public Safety and Elections was the corporate co-chair in
2011?

The Responsible Scrap Metal Purchasing and Procurement Act

Summary
Because of the increased market value in scrap metal, an increased number of
thefts associated with metal goods are being reported throughout the country.
From gas, plumbing and electrical lines used in new and rehabilitation home and
industrial construction to selected private property of businesses to a vast array of
government property such as municipal manhole covers, street signs, and utility
polls to critical infrastructure utilized to provide communications services
necessary to the health and safety of the public — metal theft is a growing problem
for both the public and private sectors. Scrap metal thefts have not only created
safety issues but they have also impacted local government budgets. Additionally,
these thefts have impeded state efforts toward revitalization of distressed urban
areas. Similarly, the number of scrap related metal thefts of private property has
posed an economic burden on manufacturers and businesses alike. The purpose of
this act is to enhance state laws regarding the purchases of scrap metal by scrap
metal processors and to provide for appropriate penalties involving the purchase of
stolen metal goods by scrap metal processors.

Model Legislation

Section 1. {Short title} The Responsible Scrap Metal Purchasing and
Procurement Act

Section 2. {Legislative Intent} The purpose of this amendment/act is to
establish requirements regarding the purchases of scrap metal by scrap metal
processors. Scrap metal processors shall not purchase nonferrous scrap, metal
articles, and proprietary articles directly from a person who is not an authorized
scrap seller or its agent without recording the seller's identification information and
the time and date of the transaction, the license number of the seller's vehicle, and
a description of the items received from the seller, in a permanent ledger. The
ledger shall be available for review by law-enforcement officials or conservators of
the peace. Scrap metal processors are prohibited from purchasing such objects
from persons under age 18. Negligent violations are subject to a civil penalty not to
exceed [insert amount], and knowing violations are a [insert level] misdemeanor.

Section 3. {Findings} The {Insert Name of Legislative Body} of this State
makes the following findings: {Insert appropriate findings related to scrap metal
thefts}

Section 4. {Definitions}
(1) Authorized scrap seller" means licensed plumbers, electricians, HVAC
contractors, building and construction contractors, demolition contractors,
construction and demolition debris contractors, public utilities or communications
companies, transportation companies, industrial and manufacturing companies,
marine, automobile, and aircraft salvage and wrecking companies, and
government entities.

(2) "Ferrous scrap" means any scrap metal consisting primarily of iron, steel, or
both, including large manufactured articles such as automobile bodies that may
contain other substances to be removed and sorted during normal operations of
scrap metal processors.

Exposed

By the Center for
Media and Democracy
www.prwatch.org

(3) "Metal article" means any manufactured item, consisting of metal, that is
usable for its originally intended purpose without processing, repairs or alteration
and that is not otherwise excluded by the definitions in this section. Examples
include, without limitation, railings, copper or aluminum wire, copper pipe and
tubing, bronze cemetery plaques, urns, and markers, plumbing fixtures, and castiron radiators.

(4) "Nonferrous scrap" means any scrap metal consisting primarily of metal other
than iron or steel but does not include aluminum beverage cans; post consumer
household items such as pots, pans, barbecue grills, and lawn chairs; used items
such as wire flashing, gutters, and downspouts removed during building renovation
or demolition; or small quantities of nonferrous metals contained in large
manufactured articles, such as automobile bodies and appliances.

(5) "Proprietary article" means (i) any metal article stamped, engraved, stenciled,
or otherwise marked so as to identify it as being or having been the property of a
governmental entity or public utility, transportation, shipbuilding, ship repair,
mining, communications or manufacturing company, (ii) any hard drawn copper
electrical conductor, bars, rods, tubing, cable, or wire greater than three-eighths of
one inch in diameter, stranded or solid, of the type used by public utilities, common
carriers or communication services providers, whether wireless or wire line, or (iii)
any aluminum conductor, bars, rods, tubing of the type used to construct utility,
communication or broadcasting towers, cable, or wire greater than three quarters
of one inch in diameter, stranded or solid or(iv) metal beer kegs, or (v) manhole
covers.

(6) "Scrap metal" means any manufactured item or article consisting of or
containing metal; any metal removed from or obtained by cutting, demolishing, or
disassembling any building, structure, manufactured item, or article; and any other
metal that is no longer used for its original purpose and that can be processed for
reuse in mills, foundries, and other manufacturing facilities.

(7) "Scrap metal processor" means a business entity in good standing authorized to
conduct business in the that regularly utilizes machinery and equipment at one or
more established locations in the normal course of business for processing and
manufacturing scrap metal into prepared grades for sale as raw material to mills,
foundries and other manufacturing facilities.

Section 5. {Purchases of ferrous scrap}
Scrap metal processors may purchase ferrous scrap directly from any person.

Section 6. {Purchases of nonferrous scrap, metal articles, and
proprietary articles}
A. Scrap metal processors may purchase nonferrous scrap, metal articles, and
proprietary articles from any person who is not an authorized scrap seller or the
documented agent and employee of an authorized scrap seller only in accordance
with the following requirements and procedures:

1. At the time of sale, the seller of any nonferrous scrap, metal article, or
proprietary article shall provide a driver's license or other government-issued
current photographic identification including the seller's full name, current address,
date of birth, and social security or other recognized identification number; and

2. The scrap metal processor shall retain a photocopy, electronically scanned copy,
digital photo or video that legibly records the seller's identification information, as
well as the time and date of the transaction, the license number of the seller's
vehicle, and the weight, quantity or volume, consideration and a general physical
description of the type of the items received from the seller, in a permanent ledger
maintained at the scrap metal processor's place of business. The ledger shall be
made available upon request to any law-enforcement official or authorized security
agent of a governmental entity providing his credentials at the scrap metal
processor's normal business location during regular business hours. Records
required by this subdivision shall be maintained by the scrap metal dealer at its
normal place of business or at another readily accessible and secure location for at
least five years.

B. Upon compliance with the other requirements of this section, a scrap metal
processor may purchase proprietary articles from a person who is not an authorized

Exposed

By the Center for
Media and Democracy
www.prwatch.org

processor may purchase proprietary articles from a person who is not an authorized
scrap seller or the authorized agent and employee of an authorized scrap seller if
the scrap metal processor requires a signed statement of ownership from the seller
and shall submit a report to the local police or sheriff's department, by the close of
the following business day, describing the proprietary article and including a copy
of the seller's identifying information, and separately identify and hold the
proprietary article for not less than 15 days following purchase.

C. Scrap metal processors may purchase nonferrous scrap, metal articles, and
proprietary articles directly from an authorized scrap seller and from the authorized
agent or employee of an authorized scrap seller without complying with the
requirements of subsection A or B.

Section 7. {Purchases of materials from minors}
Scrap metal processors shall not purchase ferrous scrap, nonferrous scrap, metal
articles, proprietary articles, or other scrap metal from any person under the age of
18 years.

Section 8. {Reports of purchases/Designated hold of nonferrous scrap,
metal articles, and proprietary articles by scrap metal processors}
A. If requested by the chief of police or other law enforcement officer of the locality
in which the scrap metal processor conducts business, every scrap metal processor
conducting business in the locality shall furnish to the chief of police or other law
enforcement officer a report of all of the scrap metal processor’s purchases of
nonferrous scrap, metal articles, the proprietary articles, excluding aluminum cans
and interior household items. Each report shall (i) be submitted on the next
business day following the date of a purchase: (ii) include the seller’s name, date
of birth, identification number, address, height, and weight and license number of
any motor vehicle in which the goods or things were delivered, and (iii) be
submitted in an electronic format if required by the locality in which the scrap
metal processor conducts business, provided that if the locality requires that
reports be submitted in electronic format, scrap metal processors shall be given a
period of not more than one year following the locality's adoption of such a
requirement to implement the requirement.

Section 9. {Penalties}
A. Any scrap metal processor who negligently violates any provisions of this article
may be assessed a civil penalty not to exceed [insert amount] for each violation.
Any attorney for the county, city, or town in which an alleged violation of this
article occurred may bring a civil action to recover such a civil penalty. The civil
penalty shall be paid into the [appropriate government entity].

B. Any scrap metal processor who knowingly violates any provisions of this article
shall be guilty of a [appropriate level] misdemeanor.

C. If any person shall willfully injure, destroy or pull down any telegraph,
telephone, cable telecommunications, or electric power transmission pedestal or
pole, or any telegraph, telephone, cable telecommunications, or electric power line,
wire or fiber insulator, power supply, transformer, transmission or other apparatus,
equipment or fixture used in the transmission of telegraph, telephone, cable
telecommunications, or electrical power service or any equipment related to
wireless communications regulated by the Federal Communications Commission,
that person shall be guilty of a [appropriate level] Felony.

Section 10. {Severability Clause}

Section 11. {Repealer Clause}

Section 12. {Effective Date}

Adopted by the Criminal Justice Task Force on July 31, 2008.
Approved by the ALEC Board of Directors on September 11, 2008.

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Center for Media
and Democracy's
quick summary:
This bill would regulate the scrap metal industry by requiring purchasers keep detailed records of all sellers. While scrap metal
theft may be a problem, this bill may affect unemployed and impoverished people as well as undocumented workers who earn
money collecting scrap metal legitimately. It requires that sellers be registered with the state to sell scrap metal and that
purchasers make copies of sellers' identification cards (all of which would be difficult for a person without documentation). This
model bill was passed in 2008, the same year that ALEC corporations and politicians passed several pieces of anti-immigrant
legislation.
Additionally, it appears to make scrap businesses' records open to warrantless demands by law enforcement, a lack of respect for
the rights of these businesses that would likely be intolerable to other businesses.