Michigan House Committee acts tough on sale of scrap

LANSING (Scrap Monster): A Michigan House panel approved two bills which propose stricter regulations to monitor sale of scrap metal. Both the legislations received strong bipartisan support. The legislation also proposes expansion of the category of metals which come under Michigan recycling regulations. The legislations will now be forwarded to the full House for approval.

The House bills 4593 and 4595 ban cash sale transactions of three commonly-stolen items-copper wire, catalytic converters and air conditioners and establish a three-day waiting period for such purchases. The recycling companies could mail the payments to customer-provided physical address or ask the customer to return to the facility after three days to collect their payment. Any unclaimed payment goes to the scrap metal dealer after 30 days.

The bills also include new language protecting scrap metal recyclers from liability in the event that their electronic record keeping system malfunction or if they purchase property that they had no way of knowing was stolen.

Scrap metal yards already must make a copy of a seller's photo identification, take their thumbprints and make them sign a statement indicating that the material is theirs to sell.

The proposal now would require them to photograph or video record all incoming material and document the name of employees who weigh and inspect purchases. It also expands the list of prohibited metal products.