2012 -- H 8055

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LC02217

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2012

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A N A C T

RELATING TO COMMERCIAL LAW - GENERAL REGULATORY PROVISIONS -COPPER

THEFT PREVENTION ACT

     Introduced By: Representatives Carnevale, Medina, DeSimone, and Palumbo

     Date Introduced: April 10, 2012

     Referred To: House Corporations

It is enacted by the General Assembly as follows:

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     SECTION 1. Title 6 of the General Laws entitled "COMMERCIAL LAW - GENERAL

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REGULATORY PROVISIONS" is hereby amended by adding thereto the following chapter:

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     CHAPTER 11.2

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PURCHASE AND SALE OF REGULATED METALS

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     6-11.2-1-. Short title. – (a) "This chapter shall be known and may be cited as the

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"Copper theft prevention act."

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     6-11.2-2. Definitions. – (a) "Regulated metals property" means all ferrous and nonferrous

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metals, including, but not limited to, copper, copper alloy, bronze and aluminum.

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     (b) The word "person(s)," when used in this chapter shall include any individual(s),

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partnership(s), association(s), and corporation(s).

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     (c) "Secondary metals recycler" means any person, firm or corporation in the state that is

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engaged from a fixed location or otherwise, in the business of paying compensation for regulated

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metals that has served its original economic purposes, whether or not engaged in the business of

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performing the manufacturing process by which regulated metals are converted into raw material

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products consisting of prepared grades and having an existing or potential economic value.

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     6-11.2-3. License required. – (a) No person, including a secondary metals recycler,

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salvage yard operator or second hand dealer, shall engage in the business of buying or receiving

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for the purpose of selling or recycling any regulated metals property or any articles containing

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those metals, from the general public for the purpose of reselling or recycling the regulated metals

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in any condition without first obtaining a license from the department of attorney general. The

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attorney general shall not issue any license to a person who has not registered a permanent place

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of business within the state for the purchase or sale of regulated metals. The criteria for

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determining a person's permanent place of business shall be formulated by the attorney general

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immediately on or after July 1, 2012.

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     6-11.2-4. Application for license – Annual fee – Attorney general to promulgate

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rules and regulations. – (a) The application for the license pursuant to section 6-11.2-3 shall be

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in writing, under oath, and in the form prescribed by the attorney general. The application shall

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contain the name, address of residence and the business, name and address of the applicant. If the

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applicant is a partnership or association, the application shall include the name and residence

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address of every member, and if a corporation, of each officer and director and of the principal

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owner or owners of the issued and outstanding capital stock. The application shall also include

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the city or town, and the street address where the business is to be conducted, and any further

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information that the attorney general may require.

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     (b) After receipt of an application for a license, the attorney general shall conduct an

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investigation to determine whether the facts presented in the application are true. The attorney

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general may also request a record search and a report from the national crime and information

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center (NCIC) of the federal bureau of investigation. If the application discloses that the applicant

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has a disqualifying criminal record, or if the investigation indicates that any of the facts presented

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in the application are not true, or if the records of the department of the attorney general indicate

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criminal activity on the part of the person(s) signing the application and a other person(s) named

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in the application, or if the NCIC report indicates an outstanding warrant for the person(s) signing

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the application or any other person(s) named in the application, then the attorney general may

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initiate a nationwide criminal records check by the federal bureau of investigation regarding the

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person(s) signing the application and any other person(s) named in the application, in accordance

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with any applicable federal standards regarding a criminal records check.

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     (c) The applicant at the time of making his or her initial application only shall pay to the

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attorney general the sum of seventy dollars ($70.00) as a fee for investigating the application and

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the additional sum of seventy dollars ($70.00) shall be paid annually. Licenses shall not be

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assignable or transferable to any other person or entity.

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     6-11.2-5. Identification and authority of seller – Posting of prices - Weighing. – (a)

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Every person required to be licensed under this chapter shall require positive proof of

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identification with photograph, date of birth and current address of every seller from whom

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regulated metals or an article made from or containing a regulated metal is to be purchased, and

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shall require the seller to sign a statement on a form to be approved by the attorney general stating

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that the seller is the legal owner of the property, or is the agent of the owner authorized to sell the

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property, and when and where or in what manner the property was obtained.

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     (b) Every person required to be licensed under this chapter shall, before purchasing any

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regulated metal or article made from or containing a regulated metal, require the seller, if a minor,

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to be accompanied by the parent or legal guardian of the minor.

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     (c) Every person required to be licensed under this chapter shall post the prices per ounce

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that are currently being paid for regulated metals in full sight of the prospective seller, and the

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regulated metals shall be weighed in full sight of the prospective seller.

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     6-11.2-6. Record of transactions required – Reports to police. – (a) Every person

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licensed under this chapter shall keep a copy of the report form obtained from or under the

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direction of the attorney general, containing a comprehensive record of all transactions

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concerning regulated metals. The comprehensive record shall be hand printed legibly or typed.

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The record shall include the name, address, telephone number and date of birth of the seller, the

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distinctive number from a federal or state government issued photo identification, the license tag

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number, state of issue, make and model, if available of the vehicle used to deliver the regulated

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metals to the secondary recycler, a complete and accurate description of the regulated metals

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purchased or sold including a general physical description, the weight, quantity or volume of

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regulated metal purchased, the consideration paid by the secondary recycler, and the date and

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hour of the transaction.

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     (b) All person licensed under this chapter shall deliver or mail weekly to the chief of

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police of the city or town in which the business is located, and to the attorney general, copies of

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all report forms from the preceding seven (7) day period.

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     (c) Every person licensed under this chapter shall retain a copy of the report form for a

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period of two (2) years from the date of the sale stated on the form. These records are to be made

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available for inspection by any law enforcement agency requesting to review them. A secondary

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metals recycler is prohibited from releasing a customer's information without the customer's

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consent unless the disclosure is made in response to a request from a law enforcement agency.

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     6-11.2-7. Prohibition against certain cash transactions. – (a) A secondary metals

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recycler shall not enter into any cash transaction in excess of five hundred dollars ($500) in

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payment for the purchase of regulated metals.

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     (b) For transactions in excess of five hundred dollars ($500), the secondary metals

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recycler shall make payment in the form of a check made payable to the name and address of the

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seller.

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     6-11.2-8. Persons injured by violations of chapter - Damages and costs. – Any person

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who has been damaged or injured by the failure of a person required to be licensed under this

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chapter to comply with the provisions of this chapter, may recover the actual damages sustained.

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The court in its discretion, may also award punitive damages and/or the costs of suit and

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reasonable attorneys' fees to a prevailing plaintiff.

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     6-11.2-9. Penalties. – (a) Every person who shall violate the provisions of this chapter

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shall be guilty of a misdemeanor and shall be fined not more than five hundred dollars ($500), or

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imprisoned for not more than one year, or both.

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     (b) If the value of the property involved in a transaction which is in violation this chapter

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exceeds five hundred dollars ($500), a person convicted of a violation shall be fined not more

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than two thousand dollars ($2,000) or imprisoned for not more than three (3) years or both.

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     (c) The attorney general shall have the authority to suspend the license of any person

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required to be licensed under this chapter as a result of violations of this chapter or attorney

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general regulations leading to penalties under this chapter.

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     6-11.2-10. Rules and regulations. – The attorney general is authorized to promulgate,

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adopt, and enforce any and all rules and regulations deemed necessary to carry out the duties and

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responsibilities of this chapter. Rules and regulations shall be adopted in accordance with the

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“Administrative Procedures Act”, chapter 35 of title 42.

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     6-11.2-11. Refusal to issue license. – The attorney general shall refuse to issue a license

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when the attorney general has found that the application for the license contains a false

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representation of a material fact, when investigation reveals that the person applying for the

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license has previously been guilty of a violation of this chapter or has been a partner of a

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partnership, member of an association, or an officer, director or member of a corporation which

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has previously been guilty of a violation of this chapter, or has a disqualifying criminal record as

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defined in section 6-11.2-14. The attorney general may, in his or her discretion issue a license if

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the disqualifying criminal record is more than ten (10) years old.

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     6-11.2-12. Suspension, revocation, and nonrenewal of license. – The attorney general,

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upon his or her own investigation or upon receipt of a signed written complaint which alleges

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violations of this chapter, or the rules and regulations promulgated pursuant to this chapter, may,

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after a hearing, suspend, revoke, or refuse to renew any license issued pursuant to this chapter.

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     6-11.2-13. Hearings. – Hearings conducted pursuant to this chapter shall be in

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accordance with the “Administrative Procedures Act”, chapter 35 of title 42.

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     6-11.2-14. Appeals. – Appeals from a decision by the attorney general shall be made to

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the sixth division district court in Providence. Appeals from the decision of the sixth division

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district court shall be to the Rhode Island supreme court in accordance with the “Administrative

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Procedures Act”, chapter 35 of title 42, as amended.

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     6-11.2-15. Disqualifying criminal records - Employees or agents of licensee. – A

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licensee convicted in a court of this state, a court of another state or in a federal court, of a felony

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charge of forgery, embezzlement, obtaining money under false pretenses, bribery, larceny,

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extortion, conspiracy to defraud, receiving stolen goods, burglary, breaking and entering, or any

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similar offense of offenses, or tax evasion associated with the conduct of business under a license

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issued pursuant to this chapter shall forfeit his or her license. Prior to forfeiture of the license, the

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licensee may request a hearing on the forfeiture. The attorney general, when so requested, shall

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hold a hearing.

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     6-11.2-16. Severability. – If any provision or phrase of this chapter or application of this

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chapter to any person or circumstances is held invalid, the invalidity shall not affect other

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provisions or phrases or applications, of this chapter that can be given effect without the invalid

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provision or phrase or applications of this chapter that can be given effect without the invalid

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provision or phrase or applications of this chapter that can be given effect without the invalid

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provision or application, and to this end the provisions and phrases of this chapter are severable.

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     SECTION 2. This act shall take effect upon passage.

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LC02217

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO COMMERCIAL LAW - GENERAL REGULATORY PROVISIONS -COPPER

THEFT PREVENTION ACT

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     This act would create the Copper Theft Prevention Act, which would require secondary

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metals recyclers to obtain a license from the attorney general’s office in order to purchase certain

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types of ferrous and non-ferrous metals. The act would create a regulatory scheme for the

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issuance of a license, as well as are reporting requirements of the licensee, and procedures for the

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penalizing of a licensee for failure to comply with the license requirements.

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     This act would take effect upon passage.

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LC02217

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