[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 418 Introduced in Senate (IS)]

111th CONGRESS
  1st Session
                                 S. 418

 To require secondary metal recycling agents to keep records of their 
 transactions in order to deter individuals and enterprises engaged in 
the theft and interstate sale of stolen secondary metal, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           February 11, 2009

  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 secondary metal recycling agents to keep records of their 
 transactions in order to deter individuals and enterprises engaged in 
the theft and interstate sale of stolen secondary metal, 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Secondary Metal 
Theft Prevention Act of 2009''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Sec. 3. Sense of the Congress.
Sec. 4. Purposes.
Sec. 5. Purchase transaction requirements.
Sec. 6. Protection of personal information.
Sec. 7. Enforcement by Federal Trade Commission.
Sec. 8. Enforcement by State Attorneys General.
Sec. 9. Civil penalty.
Sec. 10. State and local law not preempted.
Sec. 11. Definitions.
Sec. 12. Effective date.

SEC. 2. FINDINGS.

    The Congress finds the following:
            (1) Since 2006, metal theft has been on the rise, largely 
        due to a surge in the global demand for scrap metal and a 
        historic increase in the price of metal commodities.
            (2) Theft of metal components is jeopardizing the integrity 
        of critical infrastructure in the United States through theft 
        of metal in transportation, electrical, and telecommunications 
        networks.
            (3) Theft of manhole covers, storm water grates, highway 
        guard rails, railroad tracks, automobile components, and street 
        lamps pose a significant public safety risk.
            (4) Many State laws call on secondary metal recyclers to 
        help deter this crime and assist law enforcement by documenting 
        transactions and collecting information in order to identify 
        the sellers of scrap metal and the material they are selling. 
        These laws have been a significant deterrent to the problem of 
        metal theft.
            (5) Although many States have enacted metal theft laws, 
        metal theft is a nationwide crime that crosses state lines.
            (6) An overarching Federal law is necessary to deter metal 
        theft across the country.
            (7) Combating the problem of metal theft will require 
        improved communications between metal businesses and law 
        enforcement agencies.
            (8) The secondary metal recycling industry should be 
        commended for educating the public and law enforcement to the 
        problems related to metal theft, issuing ``Do Not Buy'' lists, 
        partnering with the National Crime Prevention Council, and 
        creating a Theft Alert System.

SEC. 3. SENSE OF THE CONGRESS.

    It is the sense of the Congress that Federal, State, and local 
government agencies should work with representatives of the secondary 
metal recycling industry to develop and improve effective 
countermeasures to combat the theft and sale of stolen secondary metal.

SEC. 4. PURPOSES.

    The purposes of this Act are--
            (1) to protect consumers, businesses, critical 
        infrastructure, and State and local governments from the 
        problem of secondary metal theft;
            (2) to regulate interstate commerce by limiting trafficking 
        in stolen secondary metal sold for the purpose of recycling or 
        reuse;
            (3) to permit legitimate secondary metal transactions to 
        continue to take place; and
            (4) to establish a system to document secondary metal 
        transactions between sellers and buyers while addressing the 
        growing problem of secondary metal theft.

SEC. 5. PURCHASE TRANSACTION REQUIREMENTS.

    (a) Do-not-buy List.--Unless the seller establishes by written 
documentation that the seller is the owner, or an employee, agent, or 
other person authorized to sell on behalf of the owner, it is unlawful 
for a secondary metal recycling agent to purchase for recycling any 
secondary metal that is--
            (1) marked with name, logo, or initials of a railroad, an 
        electric, gas, or water company, a telephone company, cable 
        company, or a public utility or that has been altered to 
        remove, conceal, or obliterate such a name, logo, or initials 
        through burning or cutting of wire sheathing or other means;
            (2) marked with the name of a city, county, or State 
        government entity;
            (3) a street light pole or fixture;
            (4) a road or bridge guard rail;
            (5) a highway or street sign;
            (6) a water meter cover;
            (7) a storm water grate;
            (8) unused or undamaged building construction or utility 
        material;
            (9) an historical marker;
            (10) a grave marker or cemetery urn or vase;
            (11) a utility access cover; or
            (12) a bulk container for beer with a capacity of 7.75 
        gallons or more.
    (b) Record Keeping.--
            (1) In general.--A secondary metal recycling agent shall 
        maintain a written or electronic record of each secondary metal 
        purchase. The record shall include--
                    (A) the agent's name and address;
                    (B) the date of the transaction;
                    (C) a description of the secondary metal purchased, 
                including--
                            (i) a general physical description;
                            (ii) a product description, such as wire, 
                        tubing, extrusions, casting, or other kind of 
                        product; and
                            (iii) the weight, quantity, or volume 
                        purchased;
                    (D) the amount paid by the agent;
                    (E) the name and address of the person to which the 
                payment was made;
                    (F) the name of the person delivering the secondary 
                metal to the agent, including a distinctive number from 
                a Federal or State government-issued photo 
                identification card and a description of the type of 
                the identification; and
                    (G) the license tag number, State-of-issue, make, 
                and model, if available, of the vehicle used to deliver 
                the secondary metal to the agent.
            (2) Repeat sellers.--A secondary metal recycling agent may 
        comply with the requirements of paragraph (1) with respect to 
        the second or a subsequent purchase of secondary metal from the 
        same person by--
                    (A) reference to the existing record relating to 
                the seller; and
                    (B) recording any information for the transaction 
                that is different from the existing record for that 
                person.
            (3) Record retention period.--A secondary metal recycling 
        agent shall maintain any record required by this subsection for 
        not less than 2 years from the date of the transaction to which 
        the record relates.
    (c) Purchases in Excess of $75.--
            (1) In general.--A secondary metal recycling agent may not 
        pay cash for a single purchase of secondary metal in excess of 
        $75. For purposes of this paragraph, more than 1 purchase in 
        any 48-hour period from the same seller shall be considered to 
        be a single purchase.
            (2) Payment method.--
                    (A) Occasional sellers.--Except as provided in 
                subparagraph (B), for any purchase of secondary metal 
                in excess of $75 a secondary metal recycling agent 
                shall make payment by check that--
                            (i) is payable to the seller; and
                            (ii) includes the name and address of the 
                        seller.
                    (B) Established commercial transactions.--A 
                secondary metal recycling agent may make payments for 
                purchases of secondary metal in excess of $75 from a 
                governmental or commercial supplier of secondary metal 
                with which the agent has an established commercial 
                relationship by electronic funds transfer or other 
                established commercial transaction payment method 
                through a commercial bank if the agent maintains a 
                written record of such payments that identifies the 
                seller, the amount paid, and the date of the purchase.
    (d) Public Notice Requirement.--A secondary metal recycling agent 
shall display, at its principal place of business and at any site at 
which secondary metal is accepted by or for the agent, a printed notice 
advising the public that the sale of stolen secondary metal is 
prohibited under Federal and State laws.

SEC. 6. PROTECTION OF PERSONAL INFORMATION.

    (a) In General.--A secondary metal recycling agent or the agent, 
employee, or representative of a secondary metal recycling agent may 
not disclose the identity of any person from which the agent purchases 
secondary metal without the consent of the seller except in response to 
a request from a law enforcement agency or judicial process.
    (b) Safeguards.--A secondary metal recycling agent shall implement 
reasonable safeguards--
            (1) to protect the security of information required under 
        section 5(b)(1) maintained by that agent; and
            (2) to prevent unauthorized access to or disclosure of that 
        information.
    (c) Limits on Liability.--A secondary metal recycling agency shall 
not be liable to any seller for a disclosure of information required 
under section 5(b)(1) if the secondary metal recycling agent has met 
the requirements of subsection (b) of this section.

SEC. 7. ENFORCEMENT BY FEDERAL TRADE COMMISSION.

    (a) In General.--Violation of any provision of this Act shall be 
treated as a violation of a rule under section 18 of the Federal Trade 
Commission Act (15 U.S.C. 57a) regarding unfair or deceptive acts or 
practices. The Federal Trade Commission shall enforce this Act in the 
same manner, by the same means, and with the same jurisdiction, powers, 
and duties as though all applicable terms and provisions of the Federal 
Trade Commission Act (15 U.S.C. 41 et seq.) were incorporated into and 
made a part of this Act.
    (b) Regulations.--
            (1) In general.--The Commission may promulgate such 
        regulations as it finds necessary or appropriate under this 
        Act.
            (2) Initial guidance.--Within 6 months after the date of 
        enactment of this Act, the Commission shall promulgate a final 
        rule--
                    (A) setting forth the minimum requirements for the 
                documentation required by section 5(a);
                    (B) establishing criteria for record retention 
                under section 5(b)(3);
                    (C) establishing requirements for treatment of a 
                seller as a governmental or commercial supplier with an 
                established commercial relationship under section 
                5(c)(2)(B);
                    (D) establishing public notice requirements under 
                section 5(d); and
                    (E) establishing criteria for safeguards under 
                section 6(b).

SEC. 8. ENFORCEMENT BY STATE ATTORNEYS GENERAL.

    (a) In General.--A State, as parens patriae, may bring a civil 
action on behalf of its residents in an appropriate district court of 
the United States to enforce the provisions of this Act whenever the 
attorney general of the State has reason to believe that the interests 
of the residents of the State have been or are being threatened or 
adversely affected by the violation of this Act or a regulation under 
this Act by a secondary metal recycling agent doing business in that 
State.
    (b) Notice.--
            (1) Notice required.--At least 30 days before filing an 
        action under subsection (a), the attorney general of the State 
        involved shall provide to the Federal Trade Commission--
                    (A) written notice of the action; and
                    (B) a copy of the complaint for the action.
            (2) Authorization to proceed.--The State may bring the 
        action if it does not receive a request from the Federal Trade 
        Commission, within 30 days after the Commission receives the 
        notice, not to proceed with its action.
    (c) Federal Proceedings.--After receiving notice under subsection 
(b), the Commission may--
            (1) request that the State not proceed with the action 
        pending the final disposition of a pending Federal proceeding 
        or action;
            (2) initiate an action in the appropriate United States 
        district court and move to consolidate all pending actions, 
        including State actions, in such court;
            (3) intervene in the action brought under subsection (a); 
        or
            (4) file petitions for appeal of a decision in such action.
    (c) Pending Federal Proceedings.--If the Federal Trade Commission 
has instituted an enforcement action against a secondary metal 
recycling agent for a violation of this Act or any regulation under 
this Act, a State may not bring an action, during the pendency of the 
Commission's enforcement action, under this section against that 
secondary metal recycling agent for any violation alleged in the 
Commission's enforcement action.
    (d) Construction.--For purposes of bringing any civil action under 
subsection (a), nothing in this section regarding notification shall be 
construed to prevent the attorney general of a State from exercising 
the powers conferred on such attorney general by the laws of that State 
to--
            (1) conduct investigations;
            (2) administer oaths or affirmations; or
            (3) compel the attendance of witnesses or the production of 
        documentary and other evidence.
    (e) Venue; Service of Process.--
            (1) Venue.--Any action brought under subsection (a) may be 
        brought in--
                    (A) the district court of the United States that 
                meets applicable requirements relating to venue under 
                section 1391 of title 28, United States Code; or
                    (B) another court of competent jurisdiction.
            (2) Service of process.--In an action brought under 
        subsection (a), process may be served in any district in which 
        the defendant--
                    (A) is an inhabitant; or
                    (B) may be found.

SEC. 9. CIVIL PENALTY.

    The knowing violation of any provision of this Act is punishable by 
a civil penalty of not to exceed $10,000.

SEC. 10. STATE AND LOCAL LAW NOT PREEMPTED.

    Nothing in this Act preempts any State or local law regulating the 
sale or purchase of secondary metal.

SEC. 11. DEFINITIONS.

    In this Act:
            (1) Secondary metal.--The term ``secondary metal'' means--
                    (A) wire or cable commonly used by communications 
                and electrical utilities; and
                    (B) copper, aluminum, or other metal (including any 
                metal combined with other materials) that is valuable 
                for recycling or reuse as raw metal.
            (2) Secondary metal recycling agent.--The term ``secondary 
        metal recycling agent'' means any person engaged in the 
        business of purchasing secondary metal for reuse or recycling, 
        without regard to whether that person is engaged in the 
        business of recycling or otherwise processing the purchased 
        secondary metal for reuse.

SEC. 12. EFFECTIVE DATE.

    Except as required by section 7(b)(2), this Act shall take effect 6 
months after the date of enactment.
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