HB298 Alabama 2010 Session

Summary

Primary Sponsor

Randy WoodRepresentative

Republican

Session

Regular Session 2010

Title

Secondary metals recyclers, definition, pawnbrokers excluded, records, limits on cash transactions, person selling stolen metal property, penalties increased based on value of transaction, copper, certain cash transactions for prohibited, certain municipal ordinances in effect not affected, Secs. 13A-8-30, 13A-8-31, 13A-8-37, 13A-8-39 am'd.

Summary

HB298 tightens Alabama's metal-recycling rules by improving recordkeeping, limiting cash purchases, increasing penalties for stolen metal, and clarifying that state law preempts local rules.

What This Bill Does

It defines key terms (ferrous vs nonferrous metals, metal property, and secondary metals recycler) and clarifies who is covered (with pawnbrokers excluded). Recyclers must keep legible records of every purchase, including buyer/seller details, date, amount, weight/description of the metal, ownership statements, and identifying information for people and vehicles involved, for at least two years. The bill tightens cash-payment rules: initially (for three years after Sept 1, 2007) copper cash payments are capped at $100 and all other metals at $1,000 (with payment by check to the seller); after three years and one day, cash payments are limited to $1,000 per transaction for any metal and payment by check is required, with cash allowed only under certain small-amount conditions. It increases penalties for selling metal to a recycler in violation, with offenses keyed to the value of the transaction and potential restitution orders. It establishes that state law overrides local ordinances on metal purchases, while pre-existing local ordinances in effect on the act’s effective date remain in force, and it becomes law after the usual effective date.

Who It Affects

• Secondary metals recyclers: must implement detailed recordkeeping, follow stricter cash-payment rules, and face higher penalties for violations.
• People selling metal to recyclers: face criminal penalties (misdemeanor or felony) and restitution requirements if they violate the act, with greater penalties as transaction value increases.
• Pawnbrokers licensed under Chapter 19A of Title 5: excluded from being considered secondary metals recyclers under this act, so not subject to these provisions.
• Local governments: their purchase-transaction ordinances may be pre-empted by this state law (though existing ordinances in effect on the act’s effective date remain in force).

Key Provisions

• Defines ferrrous metals, nonferrous metals, metal property, secondary metals recycler, and related terms; excludes pawnbrokers licensed under Chapter 19A of Title 5.
• Requires recyclers to maintain a legible record of all metal purchases, including recycler and seller details, date, weight/description, amount paid, ownership statements, and identification/vehicle information for at least two years.
• Imposes cash-transaction limits: (a) for three years after Sept 1, 2007, copper cash payments up to $100 and other metals up to $1,000 with payment by check; (b) starting three years and one day after Sept 1, 2007, no cash transactions over $1,000 for any metals with payment by check and seller-directed payee details.
• Sets penalties for selling metal to a recycler in violation: offenses range from Class A misdemeanor to Class B felony based on transaction value, plus mandatory restitution equal to the stolen metal’s value plus damage costs.
• Provides that this act applies to all regulated businesses and takes precedence over local ordinances, while preserving those in effect on the act’s effective date.
• Effective date: the act becomes law on the first day of the third month after passage and gubernatorial approval.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Secondary Metals Recyclers