Delaware Law Puts Onus on Scrap Dealers

The state of Delaware recently passed into law a bill that would create a significant challenge for handlers of scrap copper in the state. The bill, SB 236, would mandate that anyone recycler in the state handling copper would have to hold the metal for 18 days before either processing or shipping it to an end user. Further, increases the maximum penalty for noncompliance with the requirement and other requirements, from $5,000 to $10,000.

The bill was sponsored by State Senator Thurman Adams, Jr., Senate Pro Tempore, and had as co-sponsors a raft of other State Senators. The bill was signed into law by the Delaware Governor late last month. In fact, the bill went from being introduced into the Senate’s Executive Committee on April 15 to being signed into law by the Governor April 25, a total of 10 days. The bill had no participation from the scrap metal industry in the state.

The bill was crafted similar to earlier laws that addressed precious metals. In fact, the bill basically changed the material handled, from precious metals to copper.

In sponsoring the bill, Adams noted that the theft of scrap copper in the state was getting out of hands. Farms, new construction sites and residential homes that were half built fell victim to the stealing. At the same time, Adams notes that scrap metal recyclers in the state were found to have taken in the scrap copper.

Scott Scherr, president of Diamond State Recycling, Wilmington, Del., and a chapter officer for ISRI’s Mid-Atlantic Chapter, said that the bill was debated and passed without any input from scrap recyclers.

Scherr adds that with the law as it is he would need to have a yard the size of two football fields to hold all the scrap copper he may collect in 18 days. Further, with the fluctuations in price of the metal, his company could lose a significant amount of money from holding the copper for an extended period of time, and also suffer from having to pay the people who delivered the copper to the yard without being able to turn the material in a timely fashion.

However, Adams, the law’s sponsor, expressed frustration he has had with the scrap industry. In acknowledging that he did not seek input from the scrap industry, Adams noted that the much of the industry was complicit with the theft.

At the same time, due to the small size of the state even if many of the scrap recyclers in the state left, scrap companies in surrounding states are within a short drive.

The onus also relates to the detail records that scrap recyclers would need to provide for each load of copper they take in. The scrap processors would have to state on a form how the metal was acquired. All the forms would need to be kept on file for a year and made available to police upon request.

Meanwhile, recyclers in the state say they are working with attorneys to overturn the law.

Scherr adds that if the law stands as it is right now he will likely close down his business. It would be far too costly to operate with the restrictions in place, he says.