1. law, govt and politics

Mississippi Metal Scrap Statute
This document is provided as background information for ISRI members. It does not constitute legal advice.
Scrap recyclers should consult their attorneys/legal advisors regarding the application of the law and
regulations to each company’s individual circumstances. Other laws governing precious metals, secondhand
materials, vehicles, and the like may apply.
Overview of Provisions (use the links to travel directly to that section)
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Materials Covered and Other Definitions
Exemptions
Recordkeeping
Retention
Inspection
Customer Transaction Report
Transport Report
Bronze Cemetery Objects - Reporting and
Restrictions
Hold
Metal Beer Kegs and Syrup Tanks
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Current as of May 20, 2014
Manhole Covers and Political Subdivision
Property
HVAC
No Purchase From Minors
Hours of Purchase
Payment Restrictions
Registration
Contested Ownership
Penalties
Preemption
Please Note: Amendments to the Penalties section by 2014 Mississippi HB 585, effective July 1,
2014, are included and noted in this summary.
Materials Covered and Other Definitions (edited for clarity and conciseness)
"Metal Property" includes the following, but does not include ferrous materials not listed.
• "Railroad Materials": any materials, equipment and parts used in the construction,
operation, protection and maintenance of a railroad.
• "Copper Materials": any copper wire, bars, rods or tubing, including copper wire or
cable or coaxial cable of the type used by public utilities, common carriers or
communication services providers, whether wireless or wire line, copper air
conditioner evaporator coil or condenser, aluminum copper radiators not attached
to a motor vehicle, or any combination of these.
• "Aluminum Materials": any aluminum cable, bars, rods or tubing of the type used to
construct utility, communication or broadcasting towers, aluminum utility wire and
aluminum irrigation pipes or tubing. "Aluminum materials" does not include
aluminum cans that have served their original economic purpose.
• Electrical, communications or utility brass;
• Metal covers for service access and entrances to sewers and storm drains;
• Metal bridge pilings;
• Irrigation wiring and other metal property attached to or part of center pivots;
• Grain bins;
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Code: Miss. Code Ann. Title 97, Chapter 17, Section 71; § 97-17-71 to 97-17-71.2
Rules: Mississippi Secretary of State - Scrap Metal Rules and Regulations
© 2014 Institute of Scrap Recycling Industries All Rights Reserved
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Stainless steel sinks;
Catalytic converters not attached to a motor vehicle; and
Metal beer kegs.
Bronze Cemetery Objects, as used in this summary, refers to a bronze vase and/or marker,
memorial, statue, plaque, or other bronze object used at a cemetery or other location where
deceased persons are interred or memorialized. Bronze Cemetery Objects are subject to
special purchase restrictions and reporting requirements.
Metal Beer Kegs and Metal Syrup Tanks are subject to special purchase restrictions.
Manhole Covers and Political Subdivision Property, as used in this summary, refers to
manhole covers and other similar types of utility access covers, including storm drain
covers, or any metal property clearly identified as belonging to a political subdivision of the
state or a municipality. Manhole Covers and Political Subdivision Property are subject to
special purchase restrictions and reporting requirements.
Air Conditioner Evaporator Coils and Condensers are subject to special purchase and
payment restrictions.
Metal Property transported from within Mississippi to any point outside the state is subject
to special reporting requirements
"Scrap Metal Dealer" means any person who is engaged, from a fixed location or otherwise,
in the business of paying compensation for Metal Property that has served its original
economic purpose, whether or not the person is engaged in the business of performing the
manufacturing process by which metals are converted into raw material products
consisting of prepared grades and having an existing or potential economic value.
"Personal Identification Card" means any government issued photographic ID card.
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Exemptions
Does not apply to purchases of Metal Property from:
• A law enforcement officer acting in an official capacity;
• A trustee in bankruptcy, executor, administrator or receiver who has presented
proof of such status to the Dealer;
• Any public official acting under a court order who has presented proof of such;
• A sale on the execution, or by virtue of any process issued by a court, if proof thereof
has been presented; or
• A manufacturing, industrial or other commercial vendor that generates or sells
regulated Metal Property in the ordinary course of its business, except transactions
between Dealers are not exempt.
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Code: Miss. Code Ann. Title 97, Chapter 17, Section 71; § 97-17-71 to 97-17-71.2
Rules: Mississippi Secretary of State - Scrap Metal Rules and Regulations
© 2014 Institute of Scrap Recycling Industries All Rights Reserved
Recordkeeping
A Dealer or other purchaser must record the following for each purchase transaction:
• The Seller's name, address, and age, from the Seller's Personal ID Card;
• Date and Place of each acquisition of Metal Property;
• Weight, quantity, or volume, and a general description of the type of Metal Property
(wire, tubing, extrusions, casting, etc.);
• Amount of consideration given;
• License number, state of issue, make, and type of the delivery vehicle;
• If a person other than the Seller delivers the property, the Deliverer's name,
address, and age;
• A signed statement from the person receiving consideration that they are the
rightful owner of or are entitled to sell the metal property;
• A copy of the Seller's personal ID card; or a copy of the Deliverer's personal ID card
if delivered by a person other than the Seller; and
• A photo, video, or similar likeness of the Seller or Deliverer with the metal property
clearly visible in which the person's facial features are clearly visible.
• A photo of the Metal Property in the same form, without change, in which the Metal
Property was acquired, with a digital date and time stamp and the identity of the
photographer recorded.
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Retention
Records shall be retained for not less than 2 years from the purchase transaction date.
Transport Reports received by a sheriff shall be retained in the sheriff's office as a public
record open to inspection by the public at all reasonable times.
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Inspection
Records and any purchased Metal Property shall be made available to any law enforcement
officer, after proper identification as a law enforcement officer, during usual and customary
business hours. Any photo of Metal Property in the records shall be admissible in any civil
or criminal proceeding. Transport Reports received by a sheriff shall be retained in the
sheriff's office as a public record open to inspection by the public at all reasonable times.
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Customer Transaction Report
The Mississippi Secretary of State has adopted rules requiring Customer Transaction
Reports containing the record information be submitted electronically to the State's agent
(currently Leads Online) no later than 5 PM of the next business day following a purchase.
The Mississippi Scrap Metal Rules are available online along with additional information on
compliance and sample reports on the Mississippi Secretary of State Scrap Metal Site.
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Code: Miss. Code Ann. Title 97, Chapter 17, Section 71; § 97-17-71 to 97-17-71.2
Rules: Mississippi Secretary of State - Scrap Metal Rules and Regulations
© 2014 Institute of Scrap Recycling Industries All Rights Reserved
Transport Report
Any person transporting or causing Metal Property to be transported from any point
within this state to any point outside this state must first report the same record
information required of a Purchaser by the Recordkeeping provision to the sheriff of the
county from which the person departs the state. The sheriff receiving the report shall keep
the information in records maintained in his office as a public record available for
inspection by any person at all reasonable times. Exempts transactions with:
• A public utility, as defined in § 77-3-3, engaged in carrying on utility operations;
• A railroad, as defined in Section § 77-9-5;
• A communication service provider, whether wireless or wire line;
• A Scrap Metal Dealer.
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Bronze Cemetery Objects - Reporting and Restrictions
It is unlawful to sell or purchase any bronze vase and/or marker, memorial, statue, plaque,
or other bronze object used at a cemetery or other location where deceased persons are
interred or memorialized, unless the source of the bronze is known and notice is provided
to the municipal or county law enforcement agency where the Dealer is located. The notice
must identify all names, letters, dates, and symbols on the bronze and include a photograph
of the bronze. Written permission from the cemetery and the appropriate law enforcement
agency must be received before such objects may be purchased, processed, sold, or melted.
Hold
Automatic 3 day hold on Metal Property; must be held separate and identifiable.
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A law enforcement officer with reasonable cause to believe that Metal Property has been
stolen and an affidavit from the alleged rightful owner of the property may issue a written
15 day hold notice to the Purchaser that specifically identifies the items subject to the hold.
After receiving additional substantive evidence beyond the initial affidavit, an officer may
issue a written notice extending the hold for an additional 15 days. An officer may release a
written hold early. After a hold has expired or been released the Purchaser may dispose of
the property unless other disposition is ordered by a court of competent jurisdiction.
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Metal Beer Kegs and Syrup Tanks
Purchasers may not knowingly purchase or possess a metal beer keg or a metal syrup tank
generally used by the soft drink industry on any premises used to buy, sell, store, shred,
melt, cut or otherwise alter scrap metal. This applies to kegs and tanks whether damaged
or undamaged, or any recognizable part thereof. However, metal syrup tanks are exempt if:
• The Purchaser obtains a bill of sale at the time of purchase from the Seller; and
• The Seller is the manufacturer, a soft drink company, or a soft drink distributor.
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Code: Miss. Code Ann. Title 97, Chapter 17, Section 71; § 97-17-71 to 97-17-71.2
Rules: Mississippi Secretary of State - Scrap Metal Rules and Regulations
© 2014 Institute of Scrap Recycling Industries All Rights Reserved
Manhole Covers and Political Subdivision Property
For manhole covers and other similar types of utility access covers, including storm drain
covers, or any metal property clearly identified as belonging to a political subdivision of the
state or a municipality, a Dealer may only purchase the property from the political
subdivision, the municipal utility, or the manufacturer. Any Purchaser who purchases in
bulk shall have 24 hours to determine if prohibited property is included in the purchase; if
such is included, the Purchaser shall notify law enforcement no later than 24 hours.
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HVAC
Air conditioner evaporator coils and condensers may only be sold by a person who
possesses documentation that they are an authorized agent, representative, or employee of
one of the following:
• A licensed HVAC contractor who acquired the evaporator coil or condenser in the
performance as a contractor as defined in § 31-3-1;
• A company meeting all local or municipal permitting requirements to repair, replace
and install HVAC units containing copper evaporator coils or condensers; or
• A company holding a HVAC installer or repairer privilege license.
No Purchase from Minors
Metal Property may not be purchased from a person under 18 years old.
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Hours of Purchase
Metal Property may not be purchased, acquired or collected between 9 PM and 6 AM.
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Payment Restrictions
No cash for Metal Property. Payment shall not be made for 3 days after the purchase
transactions, and must be made either by:
• Check issued to the Seller, made payable to the name and address of the Seller, and
mailed to the recorded address of the Seller; or
• By electronic funds transfer.
For air conditioner evaporator coils and condensers, payment must be by check or money
order, mailed to the business address of the company for whom the metal is sold, with the
name of the company as the payee.
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Registration
Persons who purchase scrap metal, deal in scrap metal, or otherwise engage in the scrap
metal business must register with the Secretary of State. Registrations expire 2 years from
their registration or renewal date, and may be suspended, revoked, or refused renewal for
any failure to comply or for another good cause once the registrant has been given notice
and the opportunity for a hearing.
Code: Miss. Code Ann. Title 97, Chapter 17, Section 71; § 97-17-71 to 97-17-71.2
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Rules: Mississippi Secretary of State - Scrap Metal Rules and Regulations
© 2014 Institute of Scrap Recycling Industries All Rights Reserved
Contested Ownership
If a Purchaser contests another party's identification or claim of ownership of Metal
Property, the other party may bring a civil action in the Purchaser's county circuit court,
but only if they had made a timely report of the Metal Property's theft to the proper
authorities. The other party shall include the means of identification they used to
determine the ownership of the Metal Property.
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Penalties
When a lawful owner recovers stolen Metal Property from a Purchaser who has complied
with the law, and the Seller is convicted of a violation of the metals law, or theft by
receiving stolen property (§ 97-17-70), the court shall order the convicted person to make
full restitution to the Purchaser, including, without limitation, attorney's fees, court costs
and other expenses.
It is unlawful for any person to give a false statement of ownership or a false or altered
identification or vehicle tag number and receive consideration in return for Metal Property.
Failure to abide by the Recordkeeping and Hold provisions shall be prima facie evidence
that a person received the Metal Property knowing it to be stolen in violation of § 97-17-70.
Except as otherwise provided, a willful or knowing violation is a misdemeanor punishable
by a maximum $1,000 fine per offense.
(amended by HB 585) If the purchase transaction(s) related to the violation and any costs
which are, or would be, incurred in repairing or recovering any property damaged in the
theft or removal of the Metal Property, in aggregate:
• Exceed $1,000 but less than $5,000, a violation is a felony punishable by a maximum
5 years imprisonment and/or a maximum $10,000 fine;
• Exceed $5,000 but less than $25,000, a violation is a felony punishable by a
maximum 10 years imprisonment and/or a maximum $10,000 fine;
• Exceed $25,000, a violation is a felony punishable by a maximum 20 years
imprisonment and/or a maximum $10,000 fine.
(HB 585 changes only the penalties in the law and makes no other substantive amendments to
the state metals theft law. Amendments by HB 585 cap the penalties for violating the metal
theft laws and increase the threshold for felonies from $500 to $1,000. Also, the penalty for
violation is reduced from 10 years to no more than 5 years unless the amount exceeds $5,000
dollars. This was part of an omnibus crime bill that eliminated the 85% rule for serving time
and raised felony thresholds.)
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Code: Miss. Code Ann. Title 97, Chapter 17, Section 71; § 97-17-71 to 97-17-71.2
Rules: Mississippi Secretary of State - Scrap Metal Rules and Regulations
© 2014 Institute of Scrap Recycling Industries All Rights Reserved
A person guilty of stealing Metal Property or receiving Metal Property, knowing it to be
stolen in violation of § 97-17-70, must make full restitution to the victim, including, without
limitation, restitution for property damage that resulted from the theft of the property.
A violation of the HVAC provision is a misdemeanor punishable by a maximum $1,000 fine,
but does not preclude prosecution for any other applicable criminal offense.
This law shall not be construed to repeal other criminal laws. Whenever conduct
proscribed by any provision of this law is also proscribed by any other provision of law, the
provision which carries the more serious penalty shall be applied.
Failure to register is a misdemeanor punishable by a $500 to $1,000 fine for a first offense,
or a felony punishable by a maximum 3 years imprisonment by the Department of
Corrections and/or maximum $5,000 fine for a second or subsequent offense.
A registrant must declare under penalty of perjury whether they have been convicted of a
violation of this law or of a criminal offense of larceny, burglary, or vandalism involving
Metal Property. A registrant convicted of such is prohibited from registering for 5 years
from the date of conviction. A false statement for unlawfully registering is perjury; a person
so convicted is disqualified for life from registering as a Scrap Metal Dealer.
The Secretary of State may conduct a criminal background check of registrants, issue cease
and desist orders to Purchasers in violation of the law, issue orders for violations imposing
a maximum $1,000 administrative penalty per offense, or bring action to enjoin the acts or
practices of a Purchaser along with up to a $1,000 civil penalty per offense. Registration
may be suspended, revoked, or refused renewal for a failure to comply or other good cause
once the applicant has been given notice and the opportunity for a hearing.
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Preemption
Does not prohibit municipalities and counties from enacting and implementing ordinances,
rules and regulations that impose stricter requirements relating to purchase transactions.
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Code: Miss. Code Ann. Title 97, Chapter 17, Section 71; § 97-17-71 to 97-17-71.2
Rules: Mississippi Secretary of State - Scrap Metal Rules and Regulations
© 2014 Institute of Scrap Recycling Industries All Rights Reserved