Please Note: Amendments by 2016 Oklahoma HB 2624, effective November 1, 2016, are included and noted in this summary.
"Scrap Metal" means any Copper Material or Aluminum Material or any item listed in 2 O.S. Section 11-93.B. (referred to in this summary as Special Regulated Items), offered for sale or resale or purchased by any person, firm or corporation.
"Copper Material" means the metal copper or copper alloy or anything made of either copper or copper alloy;
"Aluminum Material" means the metal aluminum or aluminum alloy or anything made of either aluminum or aluminum alloy, except aluminum beverage cans;
Special Regulated Items listed in 2 O.S. Section 11-93.B. are as follows:
Vehicles are not defined (and are not included in the definition of Scrap Metal) but are subject to special recordkeeping requirements.
"Scrap Metal Dealer" means any person, firm or corporation being an owner, keeper or proprietor of a retail or wholesale business which buys, sells, salvages, processes or otherwise handles scrap metal materials regulated by the provisions of this act;
"Exempted Seller" means any person, firm, corporation or municipal corporation which constructs, operates or maintains electric distribution and transmission or communications facilities; or any person, firm or corporation that produces or otherwise acquires any Scrap Metal in the normal course of business as a:
"Department" means the Oklahoma Department of Agriculture, Food, and Forestry and its employees, officers and divisions.
Exempts sales and purchases of aluminum beverage cans for recycling purposes.
Transactions between Dealers and licensed automotive dismantlers and parts recyclers are exempt from the recordkeeping required for transactions involving vehicles.
Exempted Sellers are exempt from the Hold provision, Additional Recordkeeping - Hold Exemption provision, restrictions on the sale or purchase of Burned Copper Material, and the Payment Restriction provision.
Every Dealer shall keep a separate book, record, or other electronic system to record and maintain the following from any Seller of any amount of Scrap Metal. Political subdivisions may adopt, and Dealers shall abide by, local ordinances regarding the format of records required, either written or electronic. A retention period is not specified.
A Dealer purchasing a vehicle from a Seller who is not a licensed automotive dismantler or parts recycler must record the information required for Scrap Metal as well as:
Dealers may not purchase Special Regulated Items (see summary definition or 2 O.S. Section 11- 93.B. of the Act) without obtaining proof that:
For purchases of 35 pounds or more of materials that do not contain a manufacturer's serial number, a Dealer may avoid the 10 day automatic hold requirement if they additionally record the following information as digital images, in JPEG format, with a minimum resolution of 640x480 pixels:
Except for sales by or purchases from Exempted Sellers, it shall be unlawful for any person to sell or purchase Copper Material or copper wire from which the actual or apparent insulation or other coating has been burned, melted or exposed to heat or fire resulting in melting some or all of the insulation or coating.
A Dealer may not purchase any item from a minor without first obtaining the written consent of the minor's parent or guardian, to be kept with the transaction record.
Records required by the act and Scrap Metal subject to the Hold provision shall be made available at any time to any person authorized by law for such inspection.
If requested by a law enforcement agency, a Dealer shall report in writing the required record for all purchases of Scrap Metal within 48 hours.
Unless the Seller is an Exempted Seller, 10 day automatic hold from the date of purchase for purchases of 35 pounds or more of Scrap Metal containing a manufacturer's serial number or other unique label or mark. Purchases of 35 pounds or more that do not contain a manufacturer's serial number shall be held in the same manner unless the Dealer collects the information required by the Additional Recordkeeping - Hold Exemption provision.
$1,000 cash transaction threshold for Special Regulated Items unless the Seller is an Exempted Seller. Payment for transactions that exceed the threshold shall be by check, payable only to the Seller who provided identification for the transaction record.
A Dealer must obtain a sales tax permit as provided by 68 O.S. Section 1364 from the Oklahoma Tax Commission for each Scrap Metal Yard they own or operate. The Commission shall maintain a list, available for public inspection, of Dealers to whom permits have been issued, and may promulgate rules necessary to implement the provisions.
Beginning November 1, 2013, Dealers must receive a separate Scrap Metal Dealer license for each business location from the Department. The Department may conduct an investigation to determine the fitness of the applicant, including requiring a national criminal history background check. An applicant must provide, in addition to the $100 application fee, a $100 investigation fee, and the cost of a national background check, the following information:
A Scrap Metal Dealer license is valid for 1 year. Licenses may be renewed within 60 days of the expiration date after another national criminal history background check and payment of a $100 renewal fee.
The State Board of Agriculture may exercise all incidental powers and create and distribute rules, procedures, and forms needed to implement, administer, and enforce the Oklahoma Scrap Metal Dealers Act.
Unless otherwise provided, a violation is a:
Acting as a Dealer without a Scrap Metal Dealer License or required sales tax permit is a misdemeanor punishable by up to $500 fine per day of operation in violation.
Knowingly providing false information for records is a felony punishable by up to a $5,000 fine and/or up to 2 years imprisonment by the Department of Corrections.
A person convicted of purchasing or selling burnt copper material or copper wire in violation of the provision shall be deemed guilty of a:
Each Dealer convicted of a violation shall be reported to the Oklahoma Tax Commission. The Commission may cancel or suspend a Dealer's sales tax permit for up to 30 days for any violation or refuse the issuance, extension, or reinstatement of a permit. The Commission must revoke the sales tax permit or refuse the issuance, extension, or reinstatement of any person convicted of 3 separate violations. Upon cancellation of a permit, the Dealer or any firm, corporation, or other legal entity under their direct control shall not be eligible for a permit for 1 year afterwards. Before suspending, cancelling, or refusing a permit, the Commission must grant a holder or applicant 10 days' notice of a hearing before the Commission granting the person an opportunity to show cause why the action should not be taken. The Commission may suspend a permit or prohibit the applicant from doing business pending a final hearing. If an appeal is taken, the Dealer must post a $5,000 bond to continue operating pending the outcome of the appeal.
The Department may suspend, cancel, revoke, or refuse reissuance of a Dealer's license after the Dealer has an opportunity for a public hearing for the following:
After notice and opportunity for a hearing, if the Department finds a person in violation of the Act or a rule or order pursuant to the Act, the Department may assess an administrative penalty of $100 to $10,000 for each violation. Each action or each day a violation continues may constitute a separate and distinct violation. The Department may also apply to district court and obtain a temporary or permanent injunction against anyone who violates the Act and has the authority to obtain or impose civil monetary penalties on violators. Nothing shall preclude the Department from seeking penalties in district court in the maximum amount allowed by law. Penalties in an administrative proceeding shall not prevent subsequent assessment by a court of maximum civil or criminal penalties. Persons assessed an administrative or civil penalty may also be required to pay attorney fees and costs associated with collecting the penalties.
If any person refuses, denies, or interferes with any right of access, the Department has the right to obtain an administrative or other warrant from a district court to enforce the right of access and inspection.
If the Department finds a person operating as a Dealer without a license, the Department may tag any weight or measure utilized by the Dealer as "Not For Commercial Use".
©2016. The Institute of Scrap Recycling Industries, Inc. All rights reserved.
This summary of State Metals Theft Laws is being viewed on this website under license and is owned and copyrighted by Institute of Scrap Recycling Industries, Inc. ("ISRI"),1615 L Street, N.W., Suite 600, Washington, DC 20036.