Provides for the lawful sale of scrap copper and other metals by junk dealers

BILL NUMBER:S1531

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

Purpose of bill

This bill would: (1) impose stricter regulations on salvage dealers and scrap metal processors who purchase scrap metals; (2) amend the penalties for scrap metal dealers and scram metal sellers who engage in illegal transactions in violation of these provisions; and (3) increase the monetary damages levied against defendants convicted of these offenses.

Summary of provisions

Section 1 of the bill would amend General Business Law (GEL) 5 62 to require salvage dealers to obtain a copy of a government-issued identification card from the seller of scrap metals, and would require sellers to provide written verification of their authority to sell such scrap metal.

Section 2 of the bill would make a conforming change to GEL § 63 to ensure that dealers segregate purchased scrap metal for the statutorily required 5-day period.

Section 3 of the bill would add a new GEL § 63-b 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 ox railroad.

Section 4 of the bill would amend GEL § 64 Penalties. 1. Each violation of this article, either by the junk dealer, the agent or servant thereof, shall be a misdemeanor and the person convicted shall in addition to other penalties imposed, forfeit his or her license to do business.

In addition to a term of imprisonment, where any junk dealer, agent or servant thereof has been convicted pursuant to section one of this subsection provided further that the junk dealer, agent or servant thereof has gained money or property through a violation of this article the court, upon conviction thereof may sentence the defendant to pay an amount. fixed by the court not exceeding double the amount of the defendants gain from the commission of the offense.

Legislative history

2011-2012: S 1779-B Referred to Consumer Protection; Amended and Recommitted to Consumer Protection Print 1779A; Amend and recommitted to Consumer Protection Print number 1779B; Referred to Consumer Protection 2009-2010: 56035 Referred to Rules; Referred to Consumer Protection; Reported to Rules; Committee discharged and committed to Rules.

In 2008, the Legislature passed similar legislation (S.4023-D (Volker/B.6250-D (Peoples)), which the Governor was constrained to veto (Veto number 157 of 2008).

Statement in support

In 2008, there was a spike in thefts of metals from vacant buildings and construction sites (electrical wires and plumbing pipes), cemeteries (grave markers) and other locations, by thieves who would resell the stolen metals to salvage yards for recycling. The Division of Criminal Justice services (DCJS) reported, for example, that Rochester saw an approximately 15 percent increase in burglaries from 2007 to 2008, and that nearly 16 percent of all burglaries in Rochester area associated with copper theft. Law enforcement officials in other counties reported that they have had reports of copper theft on a daily basis. This increase in thefts appears to be the result of record high metal prices. For example, copper prices increased nationally by 160 percent between March 2005 and April 2006.

Budget implications

This bill would have no fiscal impact.

Effective date

This bill would take effect 90 days after it is signed into law.