What is defined as scrap metal under the Scrap Metal Dealers Law?
Scrap metal means any ferrous or nonferrous metal that is no longer used for its original purpose and is capable of being processed for reuse by a metal recycling facility, including, but not limited to, iron, brass, wire, cable, copper, bronze, aluminum, platinum, lead, solder, steel, stainless steel, catalytic converters or other similar obsolete ferrous or nonferrous metals, but shall not include recyclable aluminum cans. T.C.A. 62-9-101 (3)
Who is defined as a scrap dealer under the Scrap Metal Dealers Law and Rules?
A scrap metal dealer is any person, including any corporation, firm, company or association or an employee or agent who has the express or implied authority to buy, exchange or deal in scrap metal on behalf of the dealer. The business and any other person or entity acting as a scrap metal dealer or on behalf of the scrap metal business must register with the Department of Commerce and Insurance. T.C.A. 62-9-101(4) and Rule 0780-05-14-.02(2)
Can a Scrap Metal Dealer purchase beer kegs?
No Scrap Metal Dealer shall knowingly purchase or possess a metal beer keg, whether damaged or undamaged, or any reasonably recognizable part of a metal beer keg, on any premises that the dealer uses to buy, sell, store, shred, melt, cut or otherwise alter scrap metal. T.C.A. 62-9-108
Can a scrap metal dealer purchase scrap metal from a person if the legal right to sell the scrap metal cannot be determined?
Before purchasing scrap metal from a person, the dealer shall conduct a reasonably diligent inquiry, based upon the seller, type and quantity of metal offered for sale and other circumstances surrounding the transaction, to determine whether the person selling or delivering the scrap metal has a legal right to do so and whether a lawful transaction may be made. If the person presents a bill of sale, receipt or other document indicating that the person is in lawful possession of the scrap metal or it was otherwise lawfully acquired, the dealer shall photocopy the document and maintain it with the transaction information otherwise required by this section. T.C.A. 62-9-104 (b)(1)
Can a dealer purchase scrap metal from a minor?
No dealer shall purchase or receive, or otherwise acquire, any scrap metal from a person under eighteen (18) years of age, whether the metal is acquired directly from, through or by the aid of the minor. T.C.A. 62-9-104(4)
What should the dealer do with unused vouchers?
Vouchers issued for payment shall expire six (6) months from the transaction date and any unredeemed vouchers shall be remitted to the Department of Commerce and Insurance within one (1) year of the voucher’s expiration.
Can the dealer charge for issuing required checks?
Yes. The scrap metal dealer may charge a check issuance fee of ten percent (10%) of the face value which shall be a minimum of two dollars ($2.00) and a maximum of five dollars ($5.00) per check. Rule 0780-05-14-.07
How long and where must the scrap metal records be maintained?
All records required to be made available shall be maintained on the site where the transaction occurred for a period of three (3) years from the date of the transaction. T.C.A. 62-9-105 (c)(3)
Who has the right to inspect scrap metal records?
During the usual and customary business hours of a scrap metal dealer, a law enforcement officer, the commissioner, or the commissioner’s designee shall have the right to inspect, without a warrant or subpoena any purchased scrap metals in the possession of the dealer and any records required to be maintained by the dealer pursuant to this chapter. T.C.A. 62-9-105