This bill creates requirements that apply to transactions in certain metals for
scrap.

Under the bill, "scrap metal" generally means a manufactured item that
contains metal; metal obtained by disassembling a building or manufactured item;
or other metal that can be processed for reuse. The bill defines four kinds of scrap
metal. "Ferrous scrap" means scrap metal consisting primarily of iron and steel, but
does not include nonferrous scrap, metal articles, or proprietary articles.
"Nonferrous scrap" means scrap metal consisting primarily of metal other than iron
or steel, but excludes aluminum cans and certain other items. "Metal article" means
a manufactured metal item that is usable for its originally intended purpose.
"Proprietary article" includes certain articles marked as the property of certain types
of entities, certain aluminum or copper articles, metal beer kegs, manhole covers,
and certain cemetery and railroad articles.

Under the bill, a scrap metal dealer (dealer) may purchase scrap metal other
than nonferrous scrap, a metal article, or a proprietary article from any person over

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age 18. A dealer may purchase nonferrous scrap, a metal article, or a proprietary
article from any person over age 18 if the dealer does all of the following: 1) obtains
photographic identification from the seller or deliverer; 2) records the seller's or
dealer's identifying information, the license plate number of the seller's or deliverer's
vehicle, and certain descriptive information about the scrap or article; 3) obtains
photographic or video images showing the seller's or deliverer's vehicle and the
vehicle's license plate; and 4) for a purchase of nonferrous scrap or a metal article,
obtains the seller's signed declaration that the seller is the owner of the items being
sold. For a purchase of a proprietary article, a dealer must additionally do one of the
following: 1) obtain documentation establishing that the seller lawfully possesses
the article; or 2) document that the dealer has made a diligent inquiry into the seller's
right to sell the article and submit a report describing the article to a local law
enforcement department. Under the bill, less stringent recordkeeping requirements
apply to transactions with certain sellers that are business or governmental entities.

The bill requires a dealer to make the record available to a law enforcement
officer or security agent and to maintain the record for at least two years after
recording it. Under the bill, a local law enforcement officer may request that all
dealers in the jurisdiction report all purchases of nonferrous scrap, metal articles,
and proprietary articles.

A dealer who violates the provisions of the bill is subject to a fine of up to $1,000,
imprisonment for up to 90 days, or both. If the dealer has committed one previous
violation, the dealer is subject to a fine of up to $10,000, imprisonment for up to nine
months, or both. If the dealer has committed more than one previous violation, the
dealer is subject to a fine of up to $10,000, imprisonment for up to three and one-half
years, or both. Under the bill, a county, town, city, or village may enact an ordinance
governing the sale and purchase of scrap metal if it is at least as stringent as the
provisions in the bill.

The bill also creates a civil action that allows the owner of a stolen proprietary
article, such as a manhole cover, of nonferrous scrap, or of a metal article, to recover
from the thief the cost of replacing the item stolen. The amount that may be
recovered in the civil action is reduced by the amount that is collected as restitution
or recompense in any criminal or municipal court action related to the same act or
by the amount paid to the plaintiff under a deferred prosecution related to the same
act.

Under current law, the penalty classification for theft of property varies
depending on the value of the property. If the property value is no more than $2,500,
the crime is a misdemeanor, and the convicted person is subject to a fine of up to
$10,000, imprisonment for up to nine months, or both; if the property value is more
than $2,500, the crime is a felony. If the property value is more than $2,500 but no
more than $5,000, the person is subject to a fine of up to $10,000, imprisonment for
up to three years and six months, or both. If the property value is more than $5,000
but no more than $10,000, the person is subject to a fine of up to $10,000,
imprisonment for up to six years, or both. If the property value is more than $10,000,
the person is subject to a fine of up to $25,000, imprisonment for up to ten years, or
both. For purposes of determining property value, "value" is generally defined as the

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lesser of the market value of the property at the time of the theft or the cost to the
victim of replacing the property within a reasonable time after the theft. Under this
bill, if the property stolen is scrap metal, value includes any costs that would be
incurred in repairing or replacing any property damaged in the theft or removal of
the scrap metal.