Prohibits the purchase of certain items as scrap

1 Co-sponsor

• George D. Maziarz

BILL NUMBER:S1667 REVISED 6/18/13

Title of bill

An act to amend the general business law, in relation to prohibiting the purchase of certain items as scrap

Purpose

The legislation will combat the ongoing problem of scrap theft by (1) establishing a state-wide permit for scrap metal processors to be administered by the Secretary of State; (2) strengthening record-keeping requirements of scrap processors and (3) increasing penalties for violations.

SUMMARY OF SPECIFIC PROVISIONS; Section 1 creates certain definitions for this act.

Section 2. Establishes a state-wide licensing system for scrap processing facilities to be administered by the Secretary of State and provides grounds and procedures for license denial and revocation to ensure that scrap processing facilities are operated in compliance with applicable environmental and transactional requirements.

Specifies the record keeping requirements applicable to scrap processing facilities, including installation of an electronic video recording system at all scales and at all points of sale locations.

Section 3. Prohibits the sale or purchase of certain items as scrap, such as items bearing the markings of a municipality or a utility company, unless offered by a duly authorized agent.

Section 4. Establishes penalties for violations of this article. Criminal penalties are treated as a violation for a first offense and as a misdemeanor for subsequent offenses. Civil penalties range from $2,500 for a first offense, $5,000 for a second offense and $10,000 for a third and subsequent offense. Provides that civil violations may be adjudicated administratively by the NYC Environmental Control Board. A narrow and limited preemption of local laws is provided with the intent to establish uniform transactional standards and requirements consistently applied throughout the State.

Section 5. Provides an effective date on the one hundred eightieth day.

Justification

Scrap theft is a very real and ever growing crime. Certain items clearly marked as property of a municipality or a utility company should not be sold or purchased as scrap as such items are only attainable through illegal means unless in the possession of an authorized agent. This legislation increases penalties on scrap processing facilities which improperly purchase

such materials and/or which neglect to obtain and maintain records designed to both deter scrap thieves and to assist law enforcement in the prosecution of scrap thieves. Establishment of a state-wide licensing system will create a tool to ensure that unfit individuals with the likelihood of abetting scrap theft will not be permitted to own and operate scrap processing facilities. The very limited preemption will establish uniform transactional standards throughout the State in order to maintain a level playing field in recognition of the significant economic and environmental contribution of the scrap processing industry.

Legislative history

S. 6971A Passed Senate in 2012

FISCAL IMPLICATIONS. To be determined.

Effective date

This bill shall take effect on the 180th day.