Delaware House Bill Addresses Scrap Dealer Issues

A Delaware representative, John Viola (D-26th District) introduced H.B. 156 April 29 which aims to reduce the sale of stolen goods to scrap dealers, s well as secondhand dealers and pawnbrokers. The bill was sent to the Policy Analysis and Government Accountability. The bill is an act to amend Chapter 23 of Title 24 of the Delaware Code relating to pawnbrokers, second hand dealers and scrap metal processors.

While stating that some scrap metal is sold to scrap metal dealers, the bill acknowledges that most often the receiver of the goods is not aware that the material is stolen.

The bill exempts auctions, antique dealers who sell only antiques, flea markets, car dealers, garage or yard sales, the sale of used books, the sale of goods to nonprofits or schools or religious organizations, the sale of used furniture or clothes.

Several steps the act requires include scrap metal processors to report via electronic mail on a daily basis the sale, pledge or pawn of certain kinds of goods that have a higher risk of being stolen, so that information can be accessed at a central computerized source by law enforcement agencies around the State as part of a criminal investigation of stolen property.

The act also calls for scrap metal processors to hold gold and silver for 18 days but there is no holding period for copper wire. This time period will allow police a reasonable amount of time to track stolen goods.

The act also requires records to be kept for 1 year and allows Delaware police to inspect the records and premises of inventory.

Other steps included in the bill are the following:

œ          Scrap metal dealers may seize any goods brought before them which they believe have been stolen;

œ          scrap metal processor are prohibited from buying goods from children under 18, except for the sale of aluminum cans for recycling, unless the child is accompanied by a parent, grandparent or guardian, someone who is apparently under the influence of alcohol or drugs, or someone when the serial or id number of the good has been tampered with;

œ          any violation of this Act will result in a fine of up to $5,000 and upon failure to pay, imprisonment from one month to one year;

œ          this Act permits a county or municipality to enact additional laws that impose stricter requirements regarding reporting, holding periods, and the like, but makes clear that everyone must abide by the requirements of this Act;

œ            requires scrap metal processors in New Castle, Kent and Sussex Counties to obtain a license, with license fees going to the statefs General Fund;

œ          this Act eliminates the requirement that the Finance Department of New Castle County audit the records relating to pawnbroker/Scrap metal processors licensing and instead imposes a requirement that the State Police make an annual report of licensed pawnbrokers, secondhand dealers and scrap metal processors; and