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, elec-
trical, and telecommunications networks. 
(3) Theft of manhole covers, storm water 
grates, highway guard rails, railroad tracks, auto-
mobile components, and street lamps pose a signifi-
cant public safety risk. 
(4) Many State laws call on secondary metal re-
cyclers to help deter this crime and assist law en-
forcement by documenting transactions and col-
lecting information in order to identify the sellers of 
scrap metal and the material they are selling. These 
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laws have been a significant deterrent to the prob-
lem 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 represent-
atives 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— 
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(1) to protect consumers, businesses, critical in-
frastructure, 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 trans-
actions 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 rail-
road, 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; 
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(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 in-
clude— 
(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; 
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(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 dis-
tinctive number from a Federal or State gov-
ernment-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 re-
cycling agent may comply with the requirements of 
paragraph (1) with respect to the second or a subse-
quent purchase of secondary metal from the same 
person by— 
(A) reference to the existing record relat-
ing to the seller; and 
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(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 re-
quired 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 sec-
ondary metal in excess of $75. For purposes of this 
paragraph, more than 1 purchase in any 48-hour pe-
riod 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. 
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(B) ESTABLISHED
COMMERCIAL
TRANS-
ACTIONS.—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 pay-
ment method through a commercial bank if the 
agent maintains a written record of such pay-
ments 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. 
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(b) SAFEGUARDS.—A secondary metal recycling 
agent shall implement reasonable safeguards— 
(1) to protect the security of information re-
quired under section 5(b)(1) maintained by that 
agent; and 
(2) to prevent unauthorized access to or disclo-
sure of that information. 
(c) LIMITS ON LIABILITY.—A secondary metal recy-
cling agency shall not be liable to any seller for a disclo-
sure 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 Fed-
eral Trade Commission shall enforce this Act in the same 
manner, by the same means, and with the same jurisdic-
tion, 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.— 
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(1) IN GENERAL.—The Commission may pro-
mulgate such regulations as it finds necessary or ap-
propriate 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 require-
ments for the documentation required by sec-
tion 5(a); 
(B) establishing criteria for record reten-
tion under section 5(b)(3); 
(C) establishing requirements for treat-
ment of a seller as a governmental or commer-
cial supplier with an established commercial re-
lationship 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 appro-
priate 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 resi-
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dents of the State have been or are being threatened or 
adversely affected by the violation of this Act or a regula-
tion under this Act by a secondary metal recycling agent 
doing business in that State. 
(b) NOTICE.— 
(1) NOTICE REQUIRED.—At least 30 days be-
fore filing an action under subsection (a), the attor-
ney 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 pro-
ceed 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; 
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(3) intervene in the action brought under sub-
section (a); or 
(4) file petitions for appeal of a decision in such 
action. 
(c) PENDING FEDERAL PROCEEDINGS.—If the Fed-
eral Trade Commission has instituted an enforcement ac-
tion against a secondary metal recycling agent for a viola-
tion of this Act or any regulation under this Act, a State 
may not bring an action, during the pendency of the Com-
mission’s enforcement action, under this section against 
that secondary metal recycling agent for any violation al-
leged 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 at-
torney general of a State from exercising the powers con-
ferred 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 sub-
section (a) may be brought in— 
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(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 jurisdic-
tion. 
(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 com-
munications and electrical utilities; and 
(B) copper, aluminum, or other metal (in-
cluding any metal combined with other mate-
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rials) 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 re-
gard to whether that person is engaged in the busi-
ness of recycling or otherwise processing the pur-
chased 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. 
Æ 
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