[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 3666 Introduced in Senate (IS)]







110th CONGRESS
  2d Session
                                S. 3666

      To require certain metal recyclers to keep records of their 
 transactions in order to deter individuals and enterprises engaged in 
 theft and interstate fencing of stolen copper, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

            October 1 (legislative day, September 17), 2008

  Ms. Klobuchar (for herself and Mr. Hatch) introduced the following 
 bill; which was read twice and referred to the Committee on Commerce, 
                      Science, and Transportation

_______________________________________________________________________

                                 A BILL


 
      To require certain metal recyclers to keep records of their 
 transactions in order to deter individuals and enterprises engaged in 
 theft and interstate fencing of stolen copper, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Copper Theft Prevention Act of 
2008''.

SEC. 2. FINDINGS AND PURPOSES.

    (a) Findings.--Congress finds that--
            (1) since 2006, metal theft, particularly the theft of 
        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 the critical 
        infrastructure of the United States through theft of the 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 activity relating to methamphetamine;
            (6) the 2008 Threat Assessment of the National Drug 
        Intelligence Center shows a growing threat of methamphetamine 
        use;
            (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) copper thefts are increasing 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 
        the source of the metal; and
            (9) combating the problem of copper theft will require 
        improved communications between metal businesses and law 
        enforcement agencies.
    (b) Purposes.--The purposes of this Act are--
            (1) to protect consumers, businesses, critical 
        infrastructure, and State and local governments in the United 
        States from the problem of copper theft (including any related 
        adverse health and safety risks caused by copper theft); and
            (2) to permit legitimate transactions to continue to take 
        place by establishing a system to document metal transactions 
        between sellers and buyers while addressing the growing problem 
        of copper theft that facilitates illegal drug use and other 
        crimes.

SEC. 3. DEFINITION OF SECONDARY COPPER RECYCLER.

    In this Act, the term ``secondary copper recycler'' means any 
person that is engaged, from a fixed location or otherwise, in the 
business of paying compensation for copper that has served its original 
economic purpose, regardless of whether the person is 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.

SEC. 4. 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 that 
        includes, for each transaction--
                    (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, including--
                            (i) the consideration paid by the secondary 
                        copper recycler; and
                            (ii) a description of the type of copper 
                        property purchased in the 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 the 
                identification; and
                    (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 that sells 
        copper property to the same secondary copper recycler more than 
        once, the secondary copper recycler may comply with this 
        subsection by--
                    (A) maintaining a record relating to the seller; 
                and
                    (B) including in the record for subsequent 
                transactions only the information relating to a seller 
                that has changed.
            (3) Minimum period.--A secondary copper recycler shall 
        maintain or cause to be maintained the records required by this 
        subsection for not less than 1 year beginning on the date of 
        the purchase transaction.
    (b) Prohibition Against Certain Cash Transactions.--
            (1) In general.--A secondary copper recycler shall not 
        enter into any cash transaction in excess of $250 in payment 
        for the purchase of copper property.
            (2) Requirements.--For any purchase of copper property in 
        excess of $250--
                    (A) a secondary copper recycler shall make payment 
                by check issued to the seller of the copper property; 
                and
                    (B) the check shall be payable to the name and 
                address of the seller or picked up in person by the 
                seller.
    (c) Penalty.--
            (1) Civil penalty.--A secondary copper recycler who 
        violates subsection (a) or (b) shall be liable to the United 
        States for a civil penalty in an amount not to exceed $10,000.
            (2) No criminal liability.--Subject to section 5, a 
        violation of subsection (a) or (b)--
                    (A) shall not constitute a crime; and
                    (B) in the event of 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.

SEC. 5. RULE OF CONSTRUCTION REGARDING STATE AND LOCAL GOVERNMENT 
              REQUIREMENTS.

    Nothing in this Act prohibits a State or local government from 
adopting any requirement in addition to the requirements under this Act 
to govern the purchase of copper property by a secondary copper 
recycler.

SEC. 6. PROTECTION OF PERSONAL INFORMATION.

    (a) In General.--A secondary copper recycler or the agent, 
employee, or representative of a secondary copper recycler shall not 
disclose personal information concerning a customer obtained under this 
Act without the consent of the customer unless the disclosure is made 
in response to a request from a law enforcement agency.
    (b) Safeguards.--A secondary copper recycler shall implement 
reasonable safeguards--
            (1) to protect the security of the personal information 
        required under section 4(a)(1); and
            (2) to prevent unauthorized access to or disclosure of that 
        information.
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