2013 -- S 0079 SUBSTITUTE A

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2013

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A N A C T

RELATING TO COMMERCIAL LAW - GENERAL REGULATORY PROVISIONS -COPPER

THEFT PREVENTION ACT

     Introduced By: Senators Ruggerio, Goodwin, Ciccone, Pichardo, and Jabour

     Date Introduced: January 16, 2013

     Referred To: Senate Judiciary

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 "Copper

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Theft Prevention Act."

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     6-11.2-2. Definitions. -- (a) "Electronic Reporting System" means an electronic process

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that records, reports, processes, stores and sends data and digital images of transactions in

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accordance with section 6-11.2-6.

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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) "Public property" means property owned and maintained by a municipality, the state,

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the United States, or any quasi-governmental entity, and shall include, but not be limited to, items

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associated with public streets and sidewalks as follows:

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     (1) Manhole covers, or other types of utility access covers including, but not limited to,

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water maintenance covers;

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     (2) Highway and street signs;

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     (3) Street light poles and fixtures;

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     (4) Guardrails for bridges, highways, and roads;

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     (5) Historical, commemorative, and memorial markers and plaques; and

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     (6) Traffic directional and control signs and light signals.

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     (d) "Regulated metals property" means all ferrous and nonferrous metals, including, but

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not limited to, copper, copper alloy, bronze and aluminum, not including aluminum beverage

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containers.

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     (e) "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 materials

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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 purchasing, selling,

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bartering or dealing any regulated metals property or any articles containing those metals, from

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the general public for the purpose of reselling or recycling the regulated metals in any condition

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without first obtaining a license from the department of attorney general.

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     (b) This section shall not apply to the purchase of old metals from a person who is

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licensed to engage in the business of purchasing, selling, bartering or dealing in junk, old metals

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or secondhand articles, and who has previously recorded the contents of the load, pursuant to this

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section, and such person provides a written statement affirming such record at the time of the

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transaction.

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     6-11.2-4. Application for license – Annual fee – Department of attorney general to

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promulgate rules and regulations. -- (a) The application for the license pursuant to section 6-

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11.2-3 shall be in writing, under oath, and in the form prescribed by the department of attorney

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general. The application shall contain the following information:

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     (1) Full name, including middle name, any aliases, address of residence and the business,

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social security number and/or federal employer identification number of applicant and/or

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principals of any applicant corporation; and

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     (2) The city or town, and the street address where the business is to be conducted, and

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any further information that the department of attorney general may require.

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     (b) The applicant shall annually pay to the department of attorney general a license fee in

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the sum of seventy dollars ($70.00).

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     (c) The licensee shall not assign or transfer to any other person or entity its license issued

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pursuant to this chapter.

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     (d) Every licensee under this chapter shall display its license in a visible place at the

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licensee’s place of business.

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     (e) All licenses granted under the provisions of this chapter shall expire on the first day of

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January each year and no rebate shall be made from the license fee for such license for any

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license term less than one year.

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     6-11.2-5. Identification of seller of goods. -- (a) Every person licensed under this

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chapter shall require the seller of any goods or merchandise to present a valid motor vehicle

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operator’s license containing his or her photograph or other such suitable identification containing

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his or her photograph.

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     (b) The licensee shall maintain a record of the same, together with any other records

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required by law.

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     (c) Every seller shall sign a statement, on a form to be approved by the department of

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attorney general, stating that the seller is the legal owner of the property, or is the agent of the

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owner authorized to sell the property.

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     (d) 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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     6-11.2-6. Payment. -- Payment in full made for all material purchased pursuant to this

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chapter may be made by check, wire transfer, cash, or any other legal means.

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     6-11.2-7. 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 department of attorney general, containing a comprehensive record of all

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

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or typed. The licensee shall, upon request, send any records as defined in subsection (b) by hand

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delivery, mail or electronic submission, whenever applicable, to the chief of police of said

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requesting department.

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     (b) The record shall include the following information:

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     (i) Date of transactions;

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     (ii) The name, address, telephone number, if available, and signature of the person from

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whom the old or used metals are purchased or received, as well as a photocopy or digital image of

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the person’s photo identification;

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     (iii) The license plate number, state of issue, make and model, of the vehicle used to

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deliver the regulated metals to the secondary recycler, whenever applicable;

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     (iv) The price paid for the old or used metals;

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     (v) A description of the regulated metals, or in the alternative a digital image of the

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transaction, in a manner approved by the attorney general; and

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     (vi) Any further information that the department of attorney general may deem relevant

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to the specific requested transaction.

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     (c) Nothing in this section shall be construed as requiring additional recordkeeping for

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junked automobiles or automobile parts beyond what is otherwise required by law.

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     (d) 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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     6-11.2-8. Holding period for property acquired by licensee.-- (a) Every person

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licensed under this chapter shall keep, for a period of three (3) days, and shall immediately notify

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the police department of the following property purchased or received consisting of brass, bronze,

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copper, cast iron, stainless steel, and/or wrought iron:

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     (1) Statues and sculptures;

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     (2) Weathervanes;

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     (3) Downspouts;

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     (4) Handrails;

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     (5) Decorative fencing;

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     (6) Grave markers, sculptures, plaques and vases, the appearance of which suggest that

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the articles have been obtained from a cemetery; and

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     (7) Beer kegs.

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     (b) During said holding period, property shall be kept separate and distinct and shall not

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be disfigured or treated in any manner to alter or destroy its identity.

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     6-11.2-9. Acquisition of Public Property. -- (a) Every person licensed under this chapter

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shall not accept any public property as defined in this chapter, unless evidence of a valid contract

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with a government entity is provided at the time of the transaction.

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     (b) A licensee shall immediately notify the police department of any individual

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attempting to sell public property without authorization from a governmental entity.

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     6-11.2-10. Persons injured by violations of chapter - Damages and costs.-- Any

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person who has been damaged or injured by 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 value of the

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property involved in the transaction.

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     6-11.2-11. 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 of this

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chapter exceeds two hundred fifty dollars ($250), a person convicted of a violation shall be fined

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not more than one thousand dollars ($1,000) or both.

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

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any person required to be licensed under this chapter as a result of violations of this chapter

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regulations leading to penalties under this chapter.

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     6-11.2-12. Rules and regulations. -- The department of attorney general is authorized to

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adopt and enforce any regulations deemed necessary to carry out the duties and responsibilities of

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this chapter. Regulations shall be adopted in accordance with the "Administrative Procedures

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Act", chapter 42-35.

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     6-11.2-13. Refusal to issue license. -- The department of attorney general shall refuse to

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issue a license when the department of attorney general has found that the application for the

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license contains a false representation of a material fact, when investigation reveals that the

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person applying for the license has previously been guilty of a violation of this chapter or has

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been a partner of a partnership, member of an association, or an officer, director or member of a

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corporation which has previously been guilty of a violation of this chapter.

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     6-11.2-14. Suspension, revocation, and nonrenewal of license. -- Upon determination

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by the attorney general of a valid written complaint, the attorney general may issue a final order

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suspending, revoking or refusing any license issued, pursuant to this chapter. Hearings conducted

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pursuant to this chapter shall be in accordance with the "Administrative Procedures Act" chapter

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42-35.

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     6-11.2-15. Appeals. -- Appeals from a final order by the department of attorney general

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shall be made in accordance with the "Administrative Procedures Act", chapter 42-35.

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     6-11.2-16. Severability. -- The provisions of this chapter are severable, and if any

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provision hereof shall be held invalid in any circumstances, any invalidity shall not affect any

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other provisions or circumstances. This chapter shall be construed in all respects so as to meet

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any constitutional requirements. In carrying out the purposes and provisions of this chapter, all

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steps shall be taken which are necessary to meet constitutional requirements.

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     6-11.2-17. Preemption.-- The provisions of this chapter shall not preempt any ordinance

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or regulation adopted by any town or city in accordance with chapter 5-21.

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     SECTION 2. This act shall take effect December 31, 2013.

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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 reporting requirements of the licensees, 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 December 31, 2013.

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