Provides for the lawful sale of scrap copper and other metals by junk dealers; creates New York state metal theft task force

BILL NUMBER:A9185A

Title of bill

An act to amend the general business law, in relation to the lawful sale of scrap copper and other metals by junk dealers; and creating the New York state metal theft task force

Purpose

This bill provides stricter regulations and compliance measures for junkyard dealers and penalties for those junkyard dealers who engage in illegal operations in the trade of scrap metal.

Summary of provisions

Section 1. Section (5)62 amends the general business law by adding a new section that will:

*Require scrap yards to obtain a copy of a government-issued identification card from the seller.

*Require that sellers provide written verification of their authorization to sell such items before scrap yards can purchase.

Amends § 64 to:

*Devise stricter penalties for repeat offenders.

Amends § 64 to:

*Establish a Task Force that will compile and analyze data, assess the extent of compliance with current law, assess the efforts of municipalities, ensure professionalism in the industry, determine if further legislation is needed to deter theft, and prepare a report of findings for the Governor and Legislature. Lastly, the task force will determine the effectiveness of establishing a toll-free state wide telephone number for citizens to report suspected metal thefts.

Amends § 63-b & 69-i to:

*Restrict the sale of certain items, including street signs, propane containers for fueling forklifts, funeral markers, or any metal items bearing markings of a governmental entity, utility' company, cemetery, or railroad,

Justification

Copper thefts appear to be at the highest level in a decade. Between March 2005 and April 2006, national copper prices increased 160 percent. Since April 2005, the price of copper pipe and tubing have risen nearly 71 percent. Copper prices have nearly tripled in the last year as demand for a variety of metals has soared throughout the world.

Accelerating copper prices have led to a rapidly increasing number of thefts across the USA of everything, including electrical wires, plumbing pipes, vases, and grave markers as thieves steal and re-sell the expensive metal to junkyard/salvage dealers. Copper is 100% recyclable, and-selling scrap copper can be quite lucrative in the salvage yard industry. Coincidentally, salvage yards have gone from 60 visitors a day to over 250 visitors a day with copper salvage wire alone.

New regulations are needed because it is difficult for recyclers and scrap metal yards to tell if the copper items have been stolen, as pieces of scrap metal and copper do not carry identifiers, The costs to replace stolen scrap metal are vast, and the amount of financial backing can be millions of dollars.

Legislative history

A6250D of 2007-20008

Fiscal implications

To be determined.

Effective date

This act shall take place immediately.