New laws around the country target scrap thieves

By Jeremy Carroll | WRN reporter

Feb. 17 -- In a scene that is playing out all over the country, police in Boone County, Ky., have noticed an increase in scrap metal thefts.

In December, the Boone County Sheriff´s Office formed a dedicated task force in order to curb the thefts, more than 130 in the last six months alone. Within a month, the four-man squad has made several arrests, primarily on cases of copper theft from churches, businesses, colleges, homes under construction, cell phone towers and catalytic converters on vehicles.

"It´s just crazy," said Tom Scheben, spokesman for the sheriff´s office. "You can put up with a certain amount of it, but it´s gotten to the point where it´s a real problem."

He said the key to catching thieves is working with local recyclers to make them aware of what is happening.

"They´re small businesses, and they don´t want to buy from some heroin addict who stole an air conditioning unit off of a church and is scrapping it out for $50," he said.

From Cincinnati to Sarasota, Fla., and from Maine to Kentucky, lawmakers are looking for the best way to curb scrap metal theft. The result is a handful of proposals that would put tougher restrictions on metal recyclers and those who sell items to them.

In Cincinnati, officials are considering a law that would require a background check and permit for those wanting to sell scrap at a city scrap yard.

Florida is looking at a law developed by Sarasota County for statewide legislation. The law forces recyclers to check for proof of ownership when purchasing a list of restricted items, including copper air conditioning components, manhole covers and electric light pole parts.

Legislators in Kentucky and Maine have proposed similar laws in an attempt to curb scrap metal theft. In both cases, the law would force recyclers to obtain identification from the seller and send payment as a check or money order to the seller´s physical address as opposed to paying them on the spot.

"I think we do need something because it´s a problem of enormous magnitude," said Rep. Tomas Longstaff, D-Waterville, who authored the proposal in Maine. "What we´re trying to do is raise the bar without putting dealers out of business and making it too difficult for them."

But Tammy Harrison, office manager for B&S Scrap Recycling in Hudson, Maine, is afraid the bill might be too harsh on customers and involve much more paperwork.

"We have customers that come in expecting money on the spot, whether it´s a check or otherwise," she said. "Some of our customers would have a rough time if they didn´t get paid right away. They use us to get money for gas and other things."

Harrison said by the time paperwork is completed and the check has worked its way through the mail, it might be a week or more before sellers are paid. She said existing laws and company policies are enough to curb the sale of stolen scrap.

Maine already requires sellers of items that are more than 50 pounds or valued at more than $100 to be paid by check. But Longstaff said some businesses are working around the system by cashing the customer´s check right after it is written.

"You are not going to put your own check through the banking system, so you put it in the shredder and off you go," he said.

Longstaff said there are only a small number of unethical scrap dealers; many support the bill.

"I fully expect this bill à would come out of committee as ‘ought to pass as amended,´ as some of the concerns of scrap metal dealers are taken into consideration," he said.

Gregory Dixon, general manager of one of Kentucky´s largest scrap metal processors, Baker Iron and Metal Co., agrees with Harrison, saying his state´s bill would be cumbersome.

"The frustrating thing is, there is no easy answer," he said. "The politicians feel like they need to do something because their constituents are upset. Our industry has been around for many years à and this wasn´t a problem 10 years ago. This is a current problem developed by circumstances outside of the recycling industry, and we´re willing to participate in the solution."

Dixon said one way to attack the issue is to impound the vehicle involved in the theft of materials.

Kentucky Senate Bill 34 and Maine House Bill 1260 are both in committee to start the 2012 legislative sessions.

Kevin Lawler, director of communications for the Institute of Scrap Recycling Industries Inc., said it´s important that the recyclers work closely with police. The trade association has set up an online directory for recyclers to work with law enforcement on the reporting of stolen items.

"Payment holds and things like that are significant burdens to scrap recyclers and actually discourage recycling," Lawler said. "They are a burden to the economy and penalize legitimate small businesses."

He said new restrictions tend to paint the industry with a broad brush, when in fact most scrap dealers are upstanding companies. n

Contact Waste & Recycling News reporter Jeremy Carroll at jcarroll@crain.com or 313-446-6780.

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