LRB-2741/6
CTS/CMH/RPN:bjk&cjs:rs
2007 - 2008 LEGISLATURE
October 30, 2007 - Introduced by Representatives Montgomery, Honadel, Zepnick,
Hahn, Davis, Nerison, Soletski, Steinbrink, Staskunas, J. Ott, A. Ott,
Gronemus, LeMahieu, Gottlieb, M. Williams, Petrowski, Suder, Sheridan,
Kerkman, Gunderson, Kleefisch, Van Roy, Bies, Rhoades, Albers, Vos,
Kestell, Hines, Hraychuck
and Nelson, cosponsored by Senators Plale,
Hansen, Harsdorf, Cowles, Lassa, Lazich, Lehman, Schultz, Grothman,
Kapanke
and A. Lasee. Referred to Committee on Energy and Utilities.
AB560,1,5 1An Act to amend 943.20 (2) (d); and to create 134.405 and 895.09 of the
2statutes; relating to: regulating the purchase and sale of scrap metal and other
3metal items, the determination of property value of scrap metal for a theft
4conviction, creating a civil cause of action regarding scrap metal, and providing
5a penalty.
Analysis by the Legislative Reference Bureau
This bill creates requirements that apply to transactions in certain metals for
scrap.
Under the bill, "scrap metal" generally means a manufactured item that
contains metal; metal obtained by disassembling a building or manufactured item;
or other metal that can be processed for reuse. The bill defines four kinds of scrap
metal. "Ferrous scrap" means scrap metal consisting primarily of iron and steel, but
does not include nonferrous scrap, metal articles, or proprietary articles.
"Nonferrous scrap" means scrap metal consisting primarily of metal other than iron
or steel, but excludes aluminum cans and certain other items. "Metal article" means
a manufactured metal item that is usable for its originally intended purpose.
"Proprietary article" includes certain articles marked as the property of certain types
of entities, certain aluminum or copper articles, metal beer kegs, manhole covers,
and certain cemetery articles.
Under the bill, a scrap metal dealer (dealer) may purchase scrap metal other
than nonferrous scrap, a metal article, or a proprietary article from any person over

age 18. A dealer may purchase nonferrous scrap, a metal article, or a proprietary
article from any person over age 18 if the dealer does all of the following: 1) obtains
photographic identification from the seller or deliverer; 2) records in a ledger the
seller's or dealer's identifying information, the license plate number of the seller's or
deliverer's vehicle, and certain descriptive information about the scrap or article; 3)
obtains photographic or video images showing the seller's or deliverer's vehicle and
the vehicle's license plate; and 4) for a purchase of nonferrous scrap or a metal article,
obtains the seller's signed declaration that the seller is the owner of the items being
sold. For a purchase of a proprietary article, a dealer must additionally do one of the
following: 1) obtain documentation establishing that the seller lawfully possesses
the article, or 2) document that the dealer has made a diligent inquiry into the seller's
right to sell the article and submit a report describing the article to a local law
enforcement department.
The bill requires a dealer to make the ledger available to a law enforcement
officer or security agent and to maintain the information in the ledger for at least two
years after recording it. Under the bill, a local law enforcement officer may request
that all dealers in the jurisdiction report all purchases of nonferrous scrap, metal
articles, and proprietary articles.
A dealer who violates the provisions of the bill is subject to a fine of up to $1,000,
imprisonment for up to 90 days, or both. If the dealer has committed one previous
violation, the dealer is subject to a fine of up to $10,000, imprisonment for up to nine
months, or both. If the dealer has committed more than one previous violation, the
dealer is subject to a fine of up to $10,000, imprisonment for up to three and one-half
years, or both. Under the bill, a county, town, city, or village may enact an ordinance
governing the sale and purchase of scrap metal if it is at least as stringent as the
provisions in the bill.
The bill also creates a civil action that allows the owner of a stolen proprietary
article, such as a manhole cover, of nonferrous scrap, or of a metal article, to recover
from the thief the cost of replacing the item stolen. The amount that may be
recovered in the civil action is reduced by the amount that is collected as restitution
or recompense in any criminal or municipal court action related to the same act or
by the amount paid to the plaintiff under a deferred prosecution related to the same
act.
Under current law, the penalty classification for theft of property varies
depending on the value of the property. If the property value is no more than $2,500,
the crime is a misdemeanor, and the convicted person is subject to a fine of up to
$10,000, imprisonment for up to nine months, or both; if the property value is more
than $2,500, the crime is a felony. If the property value is more than $2,500 but no
more than $5,000, the person is subject to a fine of up to $10,000, imprisonment for
up to three years and six months, or both. If the property value is more than $5,000
but no more than $10,000, the person is subject to a fine of up to $10,000,
imprisonment for up to six years, or both. If the property value is more than $10,000,
the person is subject to a fine of up to $25,000, imprisonment for up to ten years, or
both. For purposes of determining property value, "value" is generally defined as the
lesser of the market value of the property at the time of the theft or the cost to the

victim of replacing the property within a reasonable time after the theft. Under this
bill, if the property stolen is scrap metal, value includes any costs that would be
incurred in repairing or replacing any property damaged in the theft or removal of
the scrap metal.
Because this bill creates a new crime or revises a penalty for an existing crime,
the Joint Review Committee on Criminal Penalties may be requested to prepare a
report concerning the proposed penalty and the costs or savings that are likely to
result if the bill is enacted.
For further information see the state and local fiscal estimate, which will be
printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB560, s. 1 1Section 1. 134.405 of the statutes is created to read:
AB560,3,2 2134.405 Purchase and sale of scrap metal. (1) Definitions. In this section:
AB560,3,63 (a) "Ferrous scrap" means scrap metal, other than scrap metal described in
4pars. (b) to (d), consisting primarily of iron or steel, including large manufactured
5articles that may contain other substances to be removed and sorted during normal
6operations of scrap metal dealers.
AB560,3,87 (b) "Metal article" means a manufactured item that consists of metal and is
8usable for its originally intended purpose without processing, repair, or alteration.
AB560,3,109 (c) "Nonferrous scrap" means scrap metal consisting primarily of metal other
10than iron or steel, but does not include any of the following:
AB560,3,1111 1. Aluminum beverage cans.
AB560,3,1212 2. Used household items.
AB560,3,1313 3. Items removed from a structure during renovation or demolition.
AB560,3,1514 4. Small quantities of nonferrous metals contained in large manufactured
15items.
AB560,3,1616 (d) "Proprietary article" means any of the following:
AB560,4,5
11. A metal article stamped, engraved, stenciled, or otherwise marked to
2identify the article as the property of a governmental entity, telecommunications
3provider, public utility, cable operator, as defined in s. 66.0419 (2) (b), or an entity that
4produces, transmits, delivers, or furnishes electricity, or transportation,
5shipbuilding, ship repair, mining, or manufacturing company.
AB560,4,66 2. A copper conductor, bus bar, cable, or wire, whether stranded or solid.
AB560,4,77 3. An aluminum conductor, cable, or wire, whether stranded or solid.
AB560,4,88 4. A metal beer keg.
AB560,4,99 5. A manhole cover.
AB560,4,1110 6. A metal grave marker, sculpture, plaque, or vase, if the item's appearance
11suggests the item has been obtained from a cemetery.
AB560,4,1612 (e) "Scrap metal" means a manufactured item that consists of or contains
13metal; metal removed from or obtained by cutting, demolishing, or disassembling a
14building, structure, or manufactured item; or other metal that is no longer used for
15its original purpose and that can be processed for reuse in a mill, foundry, or other
16manufacturing facility.
AB560,4,1817 (f) "Scrap metal dealer" means a person engaged in the business of buying or
18selling scrap metal.
AB560,4,21 19(2) Purchases of ferrous scrap. A scrap metal dealer may purchase scrap
20metal other than nonferrous scrap, a metal article, or a proprietary article from any
21person over the age of 18.
AB560,4,24 22(3) Purchases of nonferrous scrap, metal articles, proprietary articles. A
23scrap metal dealer may purchase nonferrous scrap, metal articles, or proprietary
24articles from any person who is over the age of 18 if all of the following apply:
AB560,5,10
1(a) If the seller of nonferrous scrap, metal articles, or proprietary articles is an
2individual, at the time of the sale, the seller provides to the scrap metal dealer the
3seller's motor vehicle operator's licence or other governmental-issued, current
4photographic identification that includes the seller's full name, current address, date
5of birth, and recognized identification number. If the seller is not an individual, at
6the time of the sale, the individual who delivers the seller's nonferrous scrap, metal
7articles, or property articles provides to the dealer the deliverer's motor vehicle
8operator's license or other government-issued, current photographic identification
9that includes the deliverer's full name, current address, date of birth, and recognized
10identification number.
AB560,5,1511 (b) The scrap metal dealer records in a ledger maintained at the scrap metal
12dealer's place of business the seller's or deliverer's identification information
13described in par. (a), the time and date of the purchase, the number and state of
14issuance of the license plate on the seller's or deliverer's vehicle, and a description
15of the items received, including all of the following:
AB560,5,1616 1. The weight of the scrap or articles.
AB560,5,2017 2. Whether the scrap or articles consist of bars, cable, ingots, rods, tubing, wire,
18wire scraps, clamps, connectors, pipes, or other appurtenances, or some combination
19of bars, cable, ingots, rods, tubing, wire, wire scraps, clamps, connectors, pipes, or
20other appurtenances.
AB560,5,2221 3. A description of any numbers, letters, or other identifying symbols stamped,
22engraved, stenciled or otherwise marked on the scrap or articles.
AB560,5,2423 (c) The scrap metal dealer obtains photographic or video images showing the
24vehicle's license plate and a view of the vehicle sufficient to identify the vehicle.
AB560,6,3
1(d) With respect to a purchase of nonferrous scrap or a metal article the scrap
2metal dealer obtains the seller's signed declaration that the seller is the owner of the
3items being sold.
AB560,6,54 (e) With respect to a purchase of a proprietary article, one of the following
5applies:
AB560,6,86 1. The scrap metal dealer receives from the seller documentation, such as a bill
7of sale, receipt, letter of authorization, or similar evidence, that establishes that the
8seller lawfully possesses the proprietary article.
AB560,6,149 2. The scrap metal dealer documents that the scrap metal dealer has made a
10diligent inquiry into whether the person selling the proprietary article has a legal
11right to do so, and, not later than one business day after purchasing the proprietary
12article, submits a report to a local law enforcement department describing the
13proprietary article and submits a copy of the seller's or deliverer's identifying
14information under par. (a).
AB560,6,23 15(4) Other provisions. (a) A scrap metal dealer shall make the ledger required
16under sub. (3) (b) available to a law enforcement officer or an agent of a governmental
17entity, telecommunications provider, public utility, cable operator, as defined in s.
1866.0419 (2) (b), or an entity that produces, transmits, delivers, or furnishes
19electricity, or transportation, shipbuilding, ship repair, mining, or manufacturing
20company who presents the agent's credentials at the scrap metal dealer's place of
21business during business hours. A scrap metal dealer shall maintain the
22information recorded in the ledger required under sub. (3) (b) for not less than 2 years
23after recording it.
AB560,7,1124 (b) A law enforcement officer of a city, village, town, or county in which a scrap
25metal dealer conducts business may request that all scrap metal dealers in the city,

1village, town, or county furnish reports of all purchases of nonferrous scrap, metal
2articles, and proprietary articles. A scrap metal dealer shall comply with a request
3under this paragraph by submitting to the requesting law enforcement officer a
4report of each purchase of nonferrous scrap, metal articles, and proprietary articles
5not later than the business day following the purchase, including each seller's or
6deliverer's name, date of birth, identification number, and address, and the number
7and state of issuance of the license plate on each seller's or deliverer's vehicle. A law
8enforcement officer requesting reports under this paragraph may require that the
9reports be submitted in an electronic format, except that a law enforcement officer
10shall provide notice of the requirement not less than one year before the requirement
11takes effect.
AB560,7,14 12(5) Penalties. (a) 1. A scrap metal dealer who knowingly violates this section
13and who has not knowingly committed a previous violation of this section is subject
14to a fine not to exceed $1,000 or imprisonment not to exceed 90 days, or both.
AB560,7,1715 2. A scrap metal dealer who knowingly violates this section and who has
16knowingly committed one previous violation of this section is subject to a fine not to
17exceed $10,000 or imprisonment not to exceed 9 months, or both.
AB560,7,2018 3. A scrap metal dealer who knowingly violates this section and who has
19knowingly committed more than one previous violation of this section is guilty of a
20Class I felony.
AB560,7,2221 (b) Each day on which a scrap metal dealer knowingly violates this section
22constitutes a separate violation.
AB560,7,25 23(6) Ordinance. A county, town, city, or village may enact an ordinance
24governing the sale and purchase of scrap metal if that ordinance is at least as
25stringent as this section.
AB560, s. 2
1Section 2. 895.09 of the statutes is created to read:
AB560,8,5 2895.09 Scrap metal theft; civil liability. (1) Any owner of nonferrous scrap,
3a metal article, or a proprietary article, as those terms are defined in s. 134.405 (1),
4who incurs injury or loss as a result of a violation of s. 134.405 or s. 943.20 may bring
5a civil action against the person who committed the violation.
AB560,8,7 6(2) If the person who incurs the loss prevails against a person who committed
7the violation, the court shall grant the prevailing party all of the following:
AB560,8,88 (a) Actual damages.
AB560,8,109 (b) Any lost profits that are attributable to the violation and that were not taken
10into account in determining the amount of actual damages under par. (a).
AB560,8,1211 (c) Notwithstanding the limitations under s. 799.25 or 814.04, costs,
12disbursements, and reasonable attorney fees.
AB560,8,15 13(3) If the court finds that the violation was committed for the purpose of
14commercial advantage, the court may award punitive damages to the person who
15incurs the loss.
AB560,8,17 16(4) Any awards provided under sub. (2) (a) or (b) shall be reduced by the amount
17of any restitution collected for the same act under s. 800.093 or 973.20.
AB560,8,19 18(5) The person who incurs the loss has the burden of proving by the
19preponderance of the evidence that a violation of s. 134.405 or 943.20 occurred.
AB560, s. 3 20Section 3. 943.20 (2) (d) of the statutes is amended to read:
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