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08/20/2013

NEW STATE LAW REQUIRES LICENSING AND REPORTING FOR SCRAP METAL RECYCLERS

     The Arkansas General Assembly passed Act 1354 of 2013 on April 18, 2013.  This act concerns the sale, purchase, or transfer of scrap metal. 

     The General Assembly recognized the fact that the theft of scrap metal was becoming more and more prevalent, and that its subsequent sale to scrap metal recyclers should be properly recorded and documented on a state-wide basis to assist in law enforcement-related investigations. 

     Act 1354 of 2013 requires scrap metal recyclers to file a daily electronic record of scrap metal purchases made for that day.  Previously, this requirement was optional on a county or city level.  This report shall be made daily by entering the information into an automated database which may be accessed by law enforcement statewide.  The information and data required to be gathered and documents includes:

(1) The name, address, gender, birth date, and identifying number from the seller's driver's license, military identification card, passport, or other form of government-issued photo identification;

(2) A photocopy of the government-issued photo identification provided under subdivision (b)(1) of this section;

(3) The date of the scrap metal purchase transaction;

(4) The digital thumbprints of the seller;

(5) (A) A general description of the predominant types of scrap metal purchased.

(B) The general description shall be made in accordance with the custom of the trade;

(6) A general description of the configuration of the scrap metal and whether the material is insulated;

(7) The weight, quantity, or volume, recorded in accordance with the custom of the trade, of the scrap metal purchased;

(8) The consideration paid;

(9) The license plate number of the vehicle used in transporting the materials to the scrap metal recycler's place of business;

and (10) A date-and-time-stamped digital photograph of the:

(A) Seller; and

(B) Scrap metal in the form in which it was purchased.

(C) The name of the person taking the photographs under subdivision (b)(10)(A) of this section shall be recorded and provided with the photographs.

(c) The photocopy required under subdivision (b)(2) of this section, the digital thumbprints required under subdivision (b)(4) of this section, and the digital photographs taken required under subdivision (b)(10)(A) of this section shall be reasonably clear.

     Act 1354 of 2013 also requires scrap metal recyclers to obtain a license from the County Sheriff in order to operate such a business.  The initial license fee is $250, and the fee is $25 per year thereafter.

     Before the County Sheriff can issue such a license, Act 1354 requires that the applicant shall:

    A.  Have a fixed physical location with a full complement of permanent utilities including water, sewer, electricity, and gas (if applicable); and
 

   B.   Show proof of a required national pollution discharge elimination system stormwater permit issued by the Arkansas Department of Environmental Quality; and

   C.   Have the ability to comply with the online reporting requirements as required by this act.

     The act provides penalties for failing to comply with these requirements.

     Though passed in April, 2013, this act just recently took effect.  Applications for Scrap Metal Recycling business licenses are available at the Sheriff’s Administration Offices.

/s/ John F. Montgomery,
Baxter County Sheriff

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