Short title

This Act may be cited as the

Copper Theft Prevention Act of 2008

Findings; purposes

(a)

Findings

The Congress finds as follows: (1)Since 2006, metal theft, particularly copper, has been on the rise, largely due to a surge in the global demand for scrap metal. (2)The price of copper has risen from $2 per pound in mid-2006 to more than $4 per pound in early 2008. (3)Theft of copper is jeopardizing this Nation’s critical infrastructure, through theft of copper in transportation, electrical, and telecommunications networks. (4)From January 2006 through March 2007, 270 copper thefts from electric utilities in 42 States were reported. (5)Many arrests of copper thieves show a growing connection between the thefts and illegal drug activity, particularly methamphetamines. (6)The National Drug Intelligence Center’s 2008 Threat Assessment shows a growing threat of methamphetamine use, especially in the western United States where increased incidents of copper theft are occurring. (7)Law enforcement officials have testified that legislation will help combat methamphetamine problems, as metal theft has become a favored method of raising money to satisfy methamphetamine addiction. (8)Thefts are on the rise due primarily because of the lack of pressure on the scrap and salvage yards that pay for copper and other precious metal without asking questions about where the material came from. (9)Combating the problem will take better communications between metal businesses and law enforcement agencies. (b)

Purposes

The purposes of this Act are as follows: (1)To protect consumers, businesses, the Nation’s critical infrastructure, and State and local governments from the problem of copper theft as well as the related adverse health and safety risks it creates. (2)To allow legitimate transactions to continue to take place by establishing a system of documenting the transactions between the seller and the buyer while addressing the growing problem of copper theft that facilitates illegal drug use and other crimes.

Requirements on copper recyclers

(a)

Records

(1)

In general

A secondary copper recycler shall maintain a legible record of all copper property purchase transactions to which the secondary copper recycler is a party. The record shall include all of the following information: (A)The name and address of the secondary copper recycler. (B)The date of the transaction. (C)The weight, quantity, or volume of copper property purchased; the consideration paid by the secondary copper recycler; and a description of the type of copper property purchased in a purchase transaction, including a general physical description (such as by describing the copper property as wire, tubing, extrusions, or casting). (D)The name and address of the person delivering the copper property to the secondary copper recycler. (E)The distinctive number from a Federal or State government-issued identification with a photograph of the person delivering the copper property to the secondary copper recycler, and the type of such identification. (F)The license tag number, State of issue, make, and model, if available, of the vehicle used to deliver the copper property to the secondary copper recycler. (2)

Repeat sellers

In the case of a person who sells copper property to the same secondary copper recycler more than once, such secondary copper recycler may comply with this subsection by maintaining a record relating to such seller and including in such record for subsequent transactions only the information relating to such seller that has changed. (b)

Prohibition against certain cash transactions

A secondary copper recycler shall not enter into any cash transaction in excess of $500 in payment for the purchase of copper property. For any such purchase— (1)a secondary copper recycler shall make payment by check issued to the seller of the copper; and (2)the check shall be payable to the name and address of the seller or picked up in person by the seller. (c)

Minimum period

A secondary copper recycler shall maintain or cause to be maintained the records required by subsection (a) for not less than 2 years from the date of the purchase transaction. (d)

Penalty

(1)

Civil penalty

A secondary copper recycler who violates subsections (a), (b), or (c) shall be liable to the United States for a civil penalty not to exceed $10,000. (2)

No criminal liability

A violation of subsection (a), (b), or (c) does not constitute a crime, and a judgment for the United States and imposition of a civil penalty pursuant to paragraph (1) shall not give rise to any disability or legal disadvantage based on conviction for a criminal offense. (e)

Definition

As used in this Act, the term secondary copper recycler means any person who is engaged, from a fixed location or otherwise, in the business of paying compensation for copper that has served its original economic purpose, whether or not engaged in the business of performing the manufacturing process by which copper is converted into raw material products consisting of prepared grades and having an existing or potential economic value.

Rule of construction regarding State and local government requirements

Nothing in this Act or the amendments made by this Act shall be construed to prohibit a State or local government from adopting requirements in addition to those set forth in this Act and the amendments made by this Act to govern the purchase of copper property by a secondary copper recycler.

Protection of personal information

A secondary copper recycler or the agent, employee, or representative of a secondary copper recycler shall not disclose personal information concerning a customer without the customer’s consent unless the disclosure is made in response to a request from a law enforcement agency. A secondary copper recycler shall implement reasonable safeguards to protect the security of the personal information required under section 3(a)(1) and prevent unauthorized access to or disclosure of such information.