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NJ scrap legislation seen hurting peddler scrap flow

Keywords: Tags  New Jersey scrap law, Chris Christie, peddler scrap, scrap sales, recyclers, Nathan Laliberte

NEW YORK — A New Jersey bill imposing stepped-up restrictions on the purchase of scrap metals could present significant headwinds for the intake of peddler scrap, sources said.

The legislation updates a 2009 scrap law requiring metal recyclers to verify the identity of sellers and maintain detailed records of all transactions. Included in the update is a provision that would prohibit dealers from purchasing metals from sellers arriving without a motor vehicle.

Several recyclers told AMM that preventing peddlers from delivering loads of scrap on foot would have an adverse effect on supply.

"Just because a guy is coming in with a hand cart does not necessarily make him a criminal," one scrap dealer said. "We deal with a lot of people who bring in loads of collected metal stacked on top of shopping carts. These people are law-abiding citizens who are integral to the recycling community. There needs to be a better solution to this problem."

Recyclers also will have to keep a record of the license plate of the seller’s vehicle and take a digital photo of metals received or purchased. The records and photographs will have to be maintained for 18 months after the transaction date.

"This whole thing is a very difficult situation to deal with," a second dealer said. "Basically, legislators want to take control of fair trade; scrap dealers should not have to be the victims of other people’s bad decisions."

New Jersey’s Senate has approved the bill and it now heads to Gov. Chris Christie for his signature.

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