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ARIZONA STATE SENATE
Fifty-Seventh Legislature, Second Regular Session
study committee; scrap metal theft
Purpose
Establishes the Study Committee on Scrap Metal Theft (Study Committee).
Background
Statute regulates scrap metal dealers and prohibits cities, towns and counties from enacting or enforcing ordinances, rules or regulations that conflict with statute. A dealer is a person or business entity, except licensed automotive recyclers, that is engaged in the business of purchasing, trading, bartering or otherwise receiving secondhand or castoff material, commonly known as scrap metal. Scrap metal dealers must register with the Department of Public Safety (DPS) and update registration information every two years (A.R.S. § 44-1641).
Scrap metal dealers
must maintain scrap metal transaction records (transaction records) for one
year and submit the records to DPS within 24 hours after receiving the scrap
metals. Each transaction record must include: 1) the seller's name, physical
description, address, date of birth, signature, photo identification,
transaction privilege tax number and right index fingerprint;
2) a photograph and an identifying description and weight of the specific scrap
metal received;
3) a photograph or video or digital record of the seller; 4) the number and
state of issuance of the license on the vehicle used for delivery; and 5) the
date, time, place and amount of the transaction. DPS provides law enforcement
agencies with access to a database of all records for investigative and
compliance purposes. Failure to comply with the recordkeeping requirements is a
class 1 misdemeanor (A.R.S. Title 44, Chapter
11, Article 3.1).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Establishes the Study Committee, consisting of the following members:
a) two persons who are currently certified as peace officers and who have experience with scrap metal thefts in Arizona, separately appointed by the President of the Senate and the Speaker of the House of Representatives;
b) two persons who are currently registered as scrap metal dealers, separately appointed by the President of the Senate and the Speaker of the House of Representatives;
c) one member of the public who has been impacted by scrap metal theft and one member of the public who represents the telecommunication industry, separately appointed by the President of the Senate and the Speaker of the House of Representatives; and
d) one person from the Maricopa County Attorney's Office who can provide information on scrap metal theft prosecutions, appointed by the Maricopa County Attorney.
2. Requires the Study Committee to:
a) examine whether current statute regulating to scrap metal dealers deters crime;
b) evaluate the scrap metal industry's costs spent for complying with current statute regulating scrap metal dealers;
c) review current statute regulating scrap metal dealers, and other related statutes to determine whether the existing civil penalties and criminal fines adequately regulate the scrap metal industry; and
d) submit a report of its findings and recommendations to the Governor, the President of the Senate and the Speaker of the House of Representatives and the Secretary of the State by December 1, 2026.
3. Repeals the Study Committee on January 1, 2027.
4. Becomes effective on the general effective date.
Prepared by Senate Research
January 23, 2026
JT/HD/ci