SF4921

Purpose

• To regulate the sale of scrap metal copper by creating a licensing system and adjusting how the commissioner of commerce collects fees for license applications and renewals. The bill updates Minnesota law to require licenses for selling scrap copper and sets rules for how licenses are issued, renewed, and enforced.

Key terms and entities involved

• scrap metal copper; license; commissioner of commerce; licensee; applicant; renewal; fee; late fee; suspension; revocation; probation; corrective action plan; Chapter 326B; 103I.501; Section 608 EPA Certification; municipality certificates/cards; auctioneer; Chapter 330; Minnesota Statutes 2024 section 325E.21 subdivision 2c.

Main provisions

• Effective date for licensing: Beginning January 1, 2025, a person may not engage in selling scrap metal copper without a valid license issued by the commissioner.
• Limited license-exemption sale window: On the first Friday of April and October each year, from 8:00 a.m. to 5:00 p.m., a scrap metal dealer may purchase up to a specified amount (up to 25) of scrap metal copper from individuals who do not hold an approved license under this subdivision, with all other requirements applying.
• How to apply: Sellers of scrap copper must apply to the commissioner using a prescribed form that includes name, permanent address, telephone number, date of birth, and an acknowledgment that the copper was obtained lawfully.
• Application fee: Each license application must be accompanied by a nonrefundable fee of $250.
• Review timeline and process: The commissioner may request additional information within 30 days of receiving an application and must review a completed application within 90 days to determine qualification and issue a license if qualified. Licenses may come with restrictions or limitations.
• Eligibility via existing credentials: A person may be deemed to hold a license if they already have:
  • a license to perform work under Chapter 326B or section 103I.501,
  • a municipality-issued document certifying competency to perform work in a trade or craft (the document must state authorization to sell scrap copper),
  • or an EPA Section 608 Technician Certification.
• License duration and renewal: Licenses issued under this subdivision are valid for one year. Renewal requires a completed renewal form and a renewal fee of $250.
• Renewal requirements and late submissions: The commissioner may request additional information for renewals. There is no additional renewal fee beyond the $250, but a late renewal may incur a nonrefundable late fee of $500.
• Denial and corrective action: The commissioner may deny a renewal for noncompliance with the law or failure to submit required information. Instead of denial, the commissioner may allow 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, consumer complaints, nonpayment of fees, or failure to comply with requirements.
• Exemption for auctions: The licensing requirement does not apply to transfers by or to an auctioneer acting in an official capacity to facilitate an auction under Chapter 330.
• Enforcement: The subdivision’s provisions are enforceable under Chapter 45.

What the bill changes in existing law

• Introduces a formal license requirement for selling scrap metal copper (previously, no license threshold described in this summary).
• Establishes a specific licensing framework, including application and renewal procedures, fees, and renewal penalties.
• Ties eligibility to other recognized credentials (existing licenses and certifications) to satisfy the license requirement.
• Creates scheduled, limited opportunity for non-licensed sellers to provide copper to dealers on specific dates.
• Strengthens enforcement provisions and adds corrective-action options instead of immediate denials in some renewal situations.
• Clarifies an exemption for auction-related activities by licensed auctioneers under Chapter 330.

Administrative and compliance details

• Application processing: 30-day window for additional information; 90-day window to review and issue license if qualified.
• License validity and renewal: 1-year term; renewal with $250 fee; potential late fee of $500 if renewed late.
• Documentation and verification: Dealers must verify legal acquisition of copper; the commissioner can request information to verify details.
• Enforcement: Includes suspension, revocation, or probation for specified noncompliance or fraudulent activity; enforcement through the department (Chapter 45).

Effective date and transition

• The licensing requirements take effect January 1, 2025, with related provisions governing renewal and enforcement continuing thereafter.

Potential impact

• Scrap metal dealers and copper sellers will face new licensing requirements and annual fees.
• Individuals who currently hold certain other licenses or certifications may satisfy the copper-seller licensing requirement without obtaining a separate copper license.
• A夏pproved license will affect how copper is bought and documented, potentially impacting cash transactions and compliance practices.

In summary

• The bill creates a formal licensing regime for selling scrap metal copper, sets fees and renewal processes, recognizes existing credentials as meeting the license requirement, imposes a limited non-licensed sale window, and strengthens enforcement and compliance mechanisms.

Relevant Terms - scrap metal copper - license - commissioner of commerce - license application - renewal - nonrefundable fee - late fee - up to 25 (units) - first Friday of April and October - 8:00 a.m. to 5:00 p.m. - lawful means - Chapter 326B - 103I.501 - Section 608 EPA Certification - certificate or card of competency - municipality - corrective action plan - suspension - revocation - probation - Chapter 45 - auctioneer - Chapter 330 - Minnesota Statutes 2024 section 325E.21 subdivision 2c - effective January 1, 2025