SB998

THE SENATE	S.B. NO.	998
TWENTY-FOURTH LEGISLATURE, 2007
STATE OF HAWAII

A BILL FOR AN ACT

relating to copper theft.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The legislature finds that 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.

The cost of the stolen copper is often only a small percentage of the 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 to deter copper theft by requiring scrap dealers to retain a photocopy of the seller's valid identification and by prohibiting cash payments for used or salvaged copper.

SECTION 2. Chapter 445, Hawaii Revised Statutes, is amended by adding a new section to part X to be appropriately designated and to read as follows:

"§445- Copper redemption. (a) No scrap dealer shall accept any amount of copper from a person unable to supply verification of identity by a valid state-issued identification card, driver's license, or federal government-issued identification card; provided that in addition to such verification, the scrap dealer shall maintain a photocopy of the valid identification on file with the statement required under section 445-233.

(b) A scrap dealer purchasing used or salvaged copper shall keep digital photographs of the purchased copper, with enough clarity to show distinguishing marks, on file with the statement required under section 445-233 and shall electronically transmit copies of the photographs to the appropriate division of the police department of the county in which the copper purchase took place.

(c) If any copper purchased by a scrap dealer is suspected by a law enforcement agency to have been stolen, the scrap dealer shall withhold payment to the seller until the matter is resolved. Interest shall not accrue or be owed on the withheld payment. Scrap dealers shall provide all relevant information to law enforcement agencies to aid in the prosecution of copper theft cases.

(d) Scrap dealers shall not pay cash for used or salvaged copper. Payment shall be issued only by check no less than thirty days and no more than forty days after redemption of the used or salvaged copper. The redemption check shall be made payable only to the name on the valid identification filed pursuant to this section. Redemption checks may be mailed or picked up by the seller at the seller's option. Redemption checks shall be denied for any copper known to law enforcement to be stolen.

(e) A scrap dealer may charge reasonable storage fees for copper that is not picked up by its rightful owner within thirty days of notification; provided that after six months the copper shall be forfeited to the scrap dealer.

(f) Any person who violates this section shall be penalized pursuant to section 445-235."

SECTION 3. Section 445-231, Hawaii Revised Statutes, is amended by amending the definition of "scrap" to read as follows:

""Scrap" means any secondhand or used metal, including copper, except those used motor vehicle parts provided in chapter 289."

SECTION 4. Section 445-235, Hawaii Revised Statutes, is amended to read as follows:

"§445-235 Prohibitions; penalty. Any person who violates [~~sections~~] section 445-232 [~~and~~], 445-233, or 445- , or any person who falsifies a statement required by section 445-233, shall be guilty of a misdemeanor."

SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 6. This Act shall take effect upon approval.

INTRODUCED BY:	_____________________________