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Michigan scrap law requires payment delay

Keywords: Tags  scrap metal, scrap legislation, scrap metal laws, metal thefts, Klint Kesto, Paul Muxlow, Rashida Tlaib, Daniel Fitzgerald

NEW YORK — A three-day waiting period for payment for certain scrap metal items has been added to legislation that is now before the Michigan House of Representatives.

Two bills were passed by the House Regulatory Reform Committee this week after they "underwent major revisions during the summer," according to committee member Rep. Klint Kesto.

H.B.4593, sponsored by Rep. Paul Muxlow, outlines requirements for both sellers and buyers of scrap metals and includes an expanded list of items that dealers cannot buy unless the seller has proper authorization. H.B. 4595, sponsored by Rep. Rashida Tlaib, establishes penalties for failure to comply with the law.

"Revisions in the measures call for a three-day waiting period for payment when sellers are turning in copper, air-conditioning components or catalytic converters for recycling, which are the materials most subject to theft," Kesto said in a statement.

Scrap companies also would be required to record the name of employees weighing and purchasing scrap metals, and ensure workers review alerts from metal theft databases on a daily basis.

"These bills tighten regulations by including all types of scrap metals, not just nonferrous. It gets rid of the instant cash attraction by delaying payment for catalytic converters, air conditioners and copper wire, as well as requiring a photo of the metals being purchased, training of all scrapyard employees, and identifying the employee that weighs and inspects the material on the scale," Tlaib said in a statement

Kesto said that he and other committee members met with scrap metals industry stakeholders while revising the legislation. "Mostly, this legislation focuses on the ability to prosecute theft. ... We wanted legislation that will allow scrap metal recyclers to operate freely in Michigan with certain safeguards," he said.

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