Kansas City Tightens Rules for Scrap Dealers

On March 9, the Wichita (Kansas) City Council voted 6-0 in favor of an ordinance that aims to significantly reduce the theft of scrap metal in the city.

In 2007, the Kansas Legislature passed legislation regulating scrap metal dealers. Wichita incorporated many of the policies, but added a number of additional features to tighten the rules.

In voting to strengthen the scrap metal ordinance, city officials say that its previous ordinances pertaining to scrap metal dealers are antiquated and do not contain sufficient transaction requirements to give the city enough information to identify scrap metal sellers.

The tighter ordinances addressed that by updating definitions, as well as strengthening procedures that scrap metal dealers need to enact to operate in the city.

Features included in the revamped scrap metal ordinance include the following:

• Requiring separate licenses for each scrap metal business;
 
• Adding clarity regarding suspension and revocation of license for scrap metal dealers;
 
• Adding accountability regarding the sale of scrap metal;
 

• Requiring detailed record-keeping procedures for scrap dealers;
 
• Limiting cash transactions when purchasing scrap metals; and
 
• Describing property “hold” procedures for scrap metal dealers
 
An area of major concern for scrap metal dealers is the requirement that some “specially regulated scrap metals” would have to be held for 72 hours before it could be processed and sold.

While the law would require scrap metal sellers to show photo ID or give a thumbprint before exchanging the materials, an area of greater concern is the requirement that dealers pay sellers with checks, within a 24-hour period, for any material that exceeds $50, is a specially regulated scrap metal or for the purchase of copper in any form for any amount.

The new ordinance also requires that scrap metal dealers pay an annual license fee of $400 to the city. In addition, the Chief of Police, with the approval of the City Treasurer, may assess an application fee not to exceed $60 to recover costs associated with background checks performed by the police department.