See other bills
under the
same topic
        PRIOR PRINTER'S NOS. 2321, 3008               PRINTER'S NO. 3091

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 1742 Session of 2007


        INTRODUCED BY PASHINSKI, BOYD, BRENNAN, CURRY, DENLINGER,
           GOODMAN, HENNESSEY, HERSHEY, JAMES, KORTZ, KULA, MARSHALL,
           McCALL, MURT, PALLONE, PETRONE, READSHAW, SHIMKUS, K. SMITH,
           THOMAS, HARHAI, FRANKEL, MCGEEHAN, GINGRICH AND WAGNER,
           JULY 13, 2007

        AS AMENDED ON SECOND CONSIDERATION, HOUSE OF REPRESENTATIVES,
           JANUARY 15, 2008

                                     AN ACT

     1  Requiring scrap processors and recycling facility operators to
     2     collect certain information relating to the purchase of scrap
     3     material; requiring commercial accounts; and restricting
     4     scrap processors and recycling facility operators from
     5     purchasing certain materials.

     6     The General Assembly finds that:
     7         (1)  Copper, aluminum, steel and other metal commodity
     8     prices rise as the theft of metal property increases.
     9         (2)  Scrap processors and recycling facility operators
    10     may serve as unknowing conduits for the disposition of stolen
    11     metal property and may also be victims of theft.
    12         (3)  INDIVIDUALS HAVE FOUND IT TO BE MORE FINANCIALLY      <--
    13     ADVANTAGEOUS TO SELL USED BEER KEGS TO A SCRAP PROCESSOR OR
    14     RECYCLING FACILITY OPERATOR AS OPPOSED TO RETURNING THE KEGS
    15     TO THE DISTRIBUTOR FROM WHERE THEY WERE RENTED.
    16         (3) (4)  This act is needed to ensure appropriate          <--
    17     documentation of transactions to assist law enforcement


     1     agencies to identify, recover and return stolen property to
     2     its owner and to ensure, as reasonably as possible, that
     3     scrap processors and recycling facility operators are less
     4     likely to be used as unknowing conduits for the liquidation
     5     and disposal of stolen metal property.
     6     The General Assembly of the Commonwealth of Pennsylvania
     7  hereby enacts as follows:
     8  Section 1.  Short title.
     9     This act shall be known and may be cited as the Scrap
    10  Material Theft Prevention Act.
    11  Section 2.  Definitions.
    12     The following words and phrases when used in this act shall
    13  have the meanings given to them in this section unless the
    14  context clearly indicates otherwise:
    15     "BEER KEG."  A VESSEL DESIGNED TO CONTAIN AT LEAST 128 FLUID   <--
    16  OUNCES OF MALT OR BREWED BEVERAGE.
    17     "Catalytic converter."  An air pollution abatement device
    18  that removes pollutants from motor vehicle exhaust, either by
    19  oxidizing them into carbon dioxide and water or reducing them to
    20  nitrogen.
    21     "Commercial account."  A relationship between a scrap metal
    22  business and a commercial enterprise that is ongoing and
    23  properly documented.
    24     "Commercial enterprise."  A corporation, partnership, limited
    25  liability company, association, State agency, political
    26  subdivision of the Commonwealth, public corporation or any other
    27  legal or commercial entity.
    28     "Commercial metal property."  Utility access covers, street
    29  light poles and fixtures, road and bridge guardrails, highway or
    30  street signs, water meter covers, traffic directional and
    20070H1742B3091                  - 2 -     

     1  control signs, traffic light signals, any metal property marked
     2  with the name of the commercial enterprise, including, but not
     3  limited to, a telephone, cable, electric, water, natural gas or
     4  other utility or railroad, unused or undamaged building
     5  construction materials consisting of copper pipe, tubing or
     6  wiring, aluminum wire, siding, downspouts or gutters, aluminum
     7  or stainless steel fence panels, aluminum decking, bleachers or
     8  risers, historical markers, statue plaques, grave markers,
     9  funeral vases, beer kegs, agricultural irrigation wheels,         <--
    10  sprinkler heads, pipes and other materials that might not be new
    11  but are clearly suspect.
    12     "Ferrous metals."  Any metals containing significant
    13  quantities of iron or steel.
    14     "Nonferrous metals."  Metals not containing significant
    15  quantities of iron or steel, including, but not limited to,
    16  copper, brass, aluminum, bronze, lead, zinc and nickel and
    17  alloys thereof. The term does not include precious metals.
    18     "Processing."  Receiving, storing or reselling scrap
    19  materials for payment or other financial consideration.
    20     "Recycling facility operator."  A person who operates a
    21  facility employing a technology that is a process to separate or
    22  classify municipal waste and who creates or recovers reusable
    23  materials that can be sold to or reused by a manufacturer as a
    24  substitute for or a supplement to virgin raw materials. The term
    25  does not include a person who operates a transfer station or
    26  landfill for solid waste, composting facility or resource
    27  recovery facility.
    28     "Scrap processor."  A person who, from a fixed location,
    29  utilizes machinery and equipment for processing and
    30  manufacturing ferrous or nonferrous metallic scrap, paper scrap,
    20070H1742B3091                  - 3 -     

     1  plastic scrap, rubber scrap or glass scrap into prepared grades
     2  and whose principal product is sold as a raw material in the
     3  manufacture of new products.
     4     "Seller."  A person who sells scrap materials to a scrap
     5  processor or recycling facility operator.
     6  Section 3.  Identification requirements for sale of scrap
     7                 materials to scrap processors and recycling
     8                 facility operators.
     9     (a)  General rule.--A scrap processor and recycling facility
    10  operator shall collect the following information for all
    11  transactions by a seller of restricted material under section 5,
    12  from all other sellers when the purchase of scrap material
    13  exceeds $100 and for all transactions involving a catalytic
    14  converter:
    15         (1)  Recording the name, telephone number and address of
    16     the seller.
    17         (2)  Recording the number of a driver's license or other
    18     form of government identification or photocopying or scanning
    19     the license or other identification.
    20         (3)  Recording the make, year, type and license plate
    21     number of the motor vehicle the seller operates at the time
    22     of the transaction.
    23         (4)  Creating and recording a unique identification
    24     number for the seller and using it for every transaction with
    25     that seller which shall be documented on all receipts. The
    26     number shall be assigned based on an initial collection of
    27     seller information.
    28         (5)  Obtaining the seller's signature for each
    29     transaction.
    30         (6)  Obtaining written permission of the seller's parent
    20070H1742B3091                  - 4 -     

     1     or legal guardian, if the seller is under 18 years of age.
     2     (b)  Supplemental information.--In addition to the
     3  information required under subsection (a), a scrap processor and
     4  recycling facility operator shall also collect the following
     5  information from a seller:
     6         (1)  The date and time of the transaction.
     7         (2)  A description of the scrap material included in the
     8     transaction.
     9     (c)  Tracking the transaction.--A scrap processor and
    10  recycling facility operator shall, when payment is made in cash,
    11  develop methods of tracking a transaction that obtains the
    12  seller's signature on a receipt for the transaction. The receipt
    13  shall include a certification that the seller is the owner or
    14  authorized seller of the scrap material.
    15     (d)  Holding period.--
    16         (1)  Following notification, either verbally or in
    17     writing, from a law enforcement officer of this Commonwealth
    18     or any of its political subdivisions that certain scrap
    19     materials have been reported as stolen, a scrap processor or
    20     recycling facility operator that is in possession of the
    21     scrap material in question shall hold that scrap material
    22     intact and safe from alteration, damage or commingling, and
    23     shall place an identifying tag or other suitable
    24     identification upon the scrap material. The scrap operator or
    25     recycling facility shall hold the scrap material for a period
    26     of time as directed by the applicable law enforcement agency,
    27     up to a maximum of three business days, unless extended
    28     pursuant to paragraph (3).
    29         (2)  A law enforcement official of this Commonwealth or
    30     any of its political subdivisions shall not place a hold on
    20070H1742B3091                  - 5 -     

     1     any scrap material unless that law enforcement official
     2     reasonably suspects that the scrap material is lost or
     3     stolen. Any hold that is placed on scrap material shall not
     4     exceed three business days and the scrap material must be
     5     returned to the owner or released when the hold has been
     6     released or has expired.
     7         (3)  A holding period may be extended beyond three days
     8     only upon the order of a magisterial district judge after the
     9     magisterial district judge has determined that probable cause
    10     exists that the scrap material is lost or stolen.
    11     (e)  Maintenance of records.--The information required by
    12  this section shall be maintained by the scrap processor or
    13  recycling facility operator for a minimum of two years from the
    14  date of the transaction.
    15  Section 4.  Commercial accounts.
    16     (a)  Duty to create and maintain.--Every scrap processor and
    17  recycling facility operator must create and maintain a permanent
    18  record with a commercial enterprise, including another scrap
    19  metal business, in order to establish a commercial account. The
    20  record shall, at a minimum, include the following information:
    21         (1)  The full name of the commercial enterprise or
    22     commercial account.
    23         (2)  The business address and telephone number of the
    24     commercial enterprise or commercial account.
    25         (3)  The full name of the person employed by the
    26     commercial enterprise or commercial account who is authorized
    27     to deliver the ferrous or nonferrous metal or commercial
    28     metal property to the scrap processor or recycling facility.
    29         (4)  A letter from the commercial enterprise designating
    30     the seller as representative of that enterprise who is
    20070H1742B3091                  - 6 -     

     1     authorized to sell the ferrous or nonferrous metal or
     2     commercial metal property on behalf of the commercial
     3     enterprise.
     4     (b)  Additional information.--The record for each commercial
     5  enterprise maintained by the scrap processor or recycling
     6  facility operator shall document every purchase and receipt of
     7  ferrous or nonferrous metal and commercial metal property. That
     8  documentation shall include, at a minimum:
     9         (1)  The date, time and value of the property being
    10     purchased or received.
    11         (2)  A description of the predominant types of property
    12     being purchased or received.
    13  Section 5.  Restricted materials.
    14     A scrap processor and recycling facility operator may
    15  purchase the following scrap material only if the purchase
    16  occurs with a commercial enterprise in conjunction with a
    17  contract or letter of authorization from the commercial
    18  enterprise:
    19         (1)  New production scrap or new materials that are a
    20     part of a manufacturing process that are being sold by an
    21     individual, not a company.
    22         (2)  Full sized, new materials, such as those used in
    23     construction, or equipment and tools used by contractors.
    24         (3)  Commercial metal property.
    25         (4)  Metallic wire that has been burned in whole or in
    26     part to remove insulation.
    27         (5)  BEER KEGS.                                            <--
    28  Section 6.  Law enforcement.
    29     A scrap processor and recycling facility operator shall
    30  disclose seller registration information required by this act
    20070H1742B3091                  - 7 -     

     1  during normal business hours to any investigative or law
     2  enforcement officer or any person acting at the direction or
     3  request of an investigative or law enforcement officer to
     4  investigate suspected criminal activities.
     5  Section 7.  Penalties.
     6     A scrap processor and recycling facility operator who
     7  violates this act commits a summary offense and shall, upon
     8  conviction, be sentenced to pay a fine of up to $2,500. A second
     9  or subsequent violation shall be classified as a misdemeanor of
    10  the third degree.
    11  Section 8.  Effective date.
    12     This act shall take effect in 60 days.












    G10L27DMS/20070H1742B3091        - 8 -