SB142

SECTION 1. The price of copper has increased nearly seven hundred per cent over the past five years. As a result, copper theft has become a serious and rapidly growing crime. This new type of theft has devastating effects on the entire community, not just utility companies, businesses, and government agencies. It causes phone outages, power outages, and rising construction costs.

Theft of copper wiring from street lights and utility poles poses a major threat to public safety. Additionally, the cost of stolen copper is often only a small percentage of a victims' loss. Criminal copper scavengers can cost a homeowner up to $40,000 or more in damage to their home for copper that will net the criminal approximately $1,000.

The purpose of this Act is deter copper theft by establishing state-run copper recycling clearinghouses that will eradicate copper recycling as a quick, anonymous source of criminal income.

SECTION 2. The Hawaii Revised Statutes is amended by adding a new chapter to title 26 to be appropriately designated and to read as follows:

"Chapter

Copper recycling Clearinghouse Act

§ -1 Short title. This chapter may be cited as the Copper Recycling Clearinghouse Act.

§ -2 Definitions. As used in this chapter, unless the context requires otherwise:

"Copper" means any used, salvaged, or secondhand metal or wire that contains copper.

"Department" means the department of commerce and consumer affairs.

"Spot price" means the current dollar amount at which copper can be bought or sold at the specified time and place.

"Verified person" means a person who has presented valid identification and completed and signed the certifying statement pursuant to section -4(1).

§ -3 Copper recycling clearinghouse; establishment. The department shall establish a copper recycling clearinghouse in each county for the purchase of copper. Each clearinghouse shall resell the purchased copper only to licensed recyclers or scrap dealers. After initial establishment, copper clearinghouses shall be self-supporting.

§ -4 Powers and duties; fee. Each copper recycling clearinghouse shall:

(1) Obtain a written statement signed by the seller or the seller's agent certifying that the seller or the seller's agent has the lawful right to sell and dispose of the copper. This statement shall also contain the seller's name; the seller's thumbprint; the seller's business or residence address; the seller's occupation; a description of the copper, including serial marks or other identifying marks; the weight and amount of copper being sold to the clearinghouse; the date, time, and place of the sale; and the license plate number of any vehicle being used to deliver the copper to the clearinghouse;

(2) Verify the identity of each seller by inspecting the seller's valid identification card or valid driver's license. The clearinghouse may establish its own identification cards for any business selling copper;

(3) Pay verified seller's the spot price of that grade or quality of copper less a five per cent handling fee to pay for the cost of operating the copper recycling clearinghouses;

(4) Issue payments to sellers by check only, which shall be issued no later than thirty days after the sale of the copper. The check shall be made payable to the name on the identification shown at the time of the sale. Cash payments are prohibited; and

(5) Cooperate with the department of the attorney general and county and federal police departments in any allegation or investigation of stolen copper and provide all relevant information to law enforcement agencies to aid in the prosecution of copper theft cases.

§ -5 Rules; commencement. (a) The department may adopt rules pursuant to chapter 91 as may be necessary for the purpose of this chapter. Full implementation of copper recycling clearinghouses shall commence no later than January 1, 2008.

(b) Until copper recycling clearinghouses are established by the department, or by January 1, 2008, whichever occurs first, scrap dealers licensed pursuant to section 445-232 may purchase copper from verified persons or businesses and issue payments to those sellers by check only, which shall be issued no later than thirty days after the sale of the copper. The check shall be made payable to the name on the identification shown at the time of the sale. Cash payments are prohibited.

§ -6 Penalties. (a) Any person who violates any provision of this chapter or any rule adopted pursuant to this chapter shall be fined not more than $500 for each separate violation.

(b) Any person or business that purchases copper from or sells copper to anyone other than a copper recycling clearinghouse after December 31, 2007, shall be in violation of this chapter and shall be fined no more than $5,000 for each separate violation."

SECTION 3. There is appropriated out of the general revenues of the State of Hawaii the sum of $ , or so much thereof as may be necessary for fiscal year 2007-2008, and the same sum, or so much thereof as may be necessary for fiscal year 2008-2009, for the establishment and operation of copper clearinghouses in each county.

SECTION 4. The sums appropriated shall be expended by the department of commerce and consumer affairs for the purposes of this Act.

SECTION 5. This Act shall take effect on July 1, 2007.

INTRODUCED BY:	_____________________________

THE SENATE	S.B. NO.	142
TWENTY-FOURTH LEGISLATURE, 2007
STATE OF HAWAII