HF3442

Purpose

• This bill adds and tightens a licensing requirement for selling scrap metal copper in Minnesota. It aims to increase oversight of copper sales to reduce illegal acquisition, improve traceability, and protect consumers.

Key Provisions

• Licensing requirement
  • Beginning January 1, 2025, a person may not engage in selling scrap metal copper unless they hold a valid license issued by the designated commissioner.
• Limited exception window for unlicensed sellers/dealers
  • On the first Friday of April and the first Friday of October each year, from 8:00 a.m. to 5:00 p.m., a scrap metal dealer may purchase up to 25 units of scrap metal copper from individuals who do not have an approved license. All other licensing requirements still apply and must be documented.
• Seller application process
  • Sellers may apply to the commissioner using a form that includes at minimum their name, permanent address, telephone number, date of birth, and an acknowledgment that the copper was obtained lawfully in the ordinary course of business or authorized construction work.
• Fees
  • Each license application requires a nonrefundable fee of $250.
• Commissioner review and licensing timeline
  • The commissioner may request additional information within 30 days of receiving an application.
  • Within 90 days of a completed application, the commissioner must review and issue a license if the applicant is qualified; licenses may include restrictions or limitations.
  • If not qualified, the commissioner must notify the applicant and state the reason for denial.
• Licensing status and recognition
  • A person is deemed to hold a license if they already have:
  • a license to perform work under chapter 326B or section 103I.501, or
  • a municipal certificate/card of competency to perform a trade in building trades that states they are authorized to sell scrap copper, or
  • an EPA Section 608 Technician Certification.
• License term and renewals
  • Licenses are valid for one year.
  • Renewal requires a completed renewal form and a renewal fee of $250; a late renewal incurs a $500 nonrefundable late fee.
  • The commissioner may request additional information during renewal to clarify new details.
• Renewal denial and corrective action
  • The commissioner may deny a renewal for violations of state or federal law or failure to submit renewal information on time.
  • Instead of denial, the commissioner may require a corrective action plan to cure deficiencies.
• Suspension, revocation, and probation
  • The commissioner may suspend, revoke, or place a license on probation for:
  • fraudulent activity or violations of state or federal law,
  • consumer complaints justifying action to protect consumers,
  • failure to pay fees, or
  • failure to comply with subdivision requirements.
• Exemptions
  • Transfers by or to an auctioneer acting in their official role to facilitate an auction (per chapter 330) are not covered.
  • The licensing requirement does not apply to manufacturers.
  • For purposes of this subdivision, “manufacturer” means a person who creates or produces a product or whose brand name is affixed to the product.
• Enforcement
  • The commissioner must enforce this subdivision under chapter 45.
• Effective status and scope
  • The subdivision applies to sales of scrap metal copper, with specific provisions for licensing, purchase allowances, and exemptions as described above.

Significant Changes to Existing Law

• Introduces a mandatory license to sell scrap metal copper (effective Jan 1, 2025), replacing the prior absence of a licensing requirement for selling copper scrap.
• Creates a controlled exception window allowing limited purchases from unlicensed individuals twice a year, under strict time and documentation rules.
• Expands licensing options by recognizing existing licenses/certifications (e.g., other trades licenses, municipal certificates, EPA certification) as valid substitutes for obtaining a dedicated copper-scrap license.
• Establishes a formal annual renewal and enforcement framework with fees, potential penalties, and corrective-action options.
• Clarifies exemptions for auction-related transfers and manufacturers, and defines enforcement authority and process under Chapter 45.

Implementation Notes

• The bill sets up a process for license applications, including required information, timelines for review, and potential restrictions or conditions on licenses.
• It ties licensing to ongoing compliance, with mechanisms for denial, suspension, or revocation based on fraud, nonpayment, or noncompliance.
• It defines key terms and organizations involved (e.g., the commissioner, Chapter 45, EPA Section 608) to frame how the licensing system will operate and be enforced.

Relevant Terms - scrap metal copper - license - commissioner - licensee - applicant - application - fee - renewal - late fee - denial - corrective action plan - suspension - revocation - probation - fraudulent activity - consumer complaints - chapter 45 - exemption - auctioneer - manufacturer - building trades - 326B - 103I.501 - Section 608 - EPA - January 1, 2025 - April and October (first Fridays) - 8:00 a.m.–5:00 p.m. - documentation - lawful means - traceability - compliance - enforcement - form prescribed by the commissioner - nonrefundable - financing/fees (250, 500)