Copper materials; prohibit transactions between certain sellers and scrap metal dealers and other purchases.

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To: Business and Commerce
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Representative Banks

HOUSE BILL NO. 728

AN ACT TO AMEND SECTION 97-17-71, MISSISSIPPI CODE OF 1972, 1
TO PROHIBIT TRANSACTIONS INVOLVING THE SALE OF COPPER MATERIALS TO 2
A SCRAP METAL DEALER UNLESS THE SELLER IS A LICENSED PLUMBER, 3
ELECTRICIAN, CONTRACTOR OR HOLDER OF A CERTIFICATE OF 4
RESPONSIBILITY OR DEMOLITION PERMIT; TO REQUIRE A SCRAP METAL 5
DEALER TO MAINTAIN A SCANNED COPY OF A SELLER'S APPROPRIATE 6
LICENSE, CERTIFICATE OF RESPONSIBILITY OR PERMIT; TO BRING FORWARD 7
SECTION 97-17-71.2, MISSISSIPPI CODE OF 1972, WHICH GOVERNS THE 8
SALE OF AIR CONDITIONER EVAPORATOR COILS AND CONDITIONERS TO SCRAP 9
METAL DEALERS, FOR PURPOSES OF POSSIBLE AMENDMENT; AND FOR RELATED 10
PURPOSES. 11
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 12
SECTION 1. Section 97-17-71, Mississippi Code of 1972, is 13
amended as follows: 14
97-17-71. (1) For the purposes of this section, the 15
following terms shall have the meanings ascribed in this section: 16
(a) "Railroad materials" means any materials, equipment 17
and parts used in the construction, operation, protection and 18
maintenance of a railroad. 19
(b) "Copper materials" means any copper wire, bars, 20
rods or tubing, including copper wire or cable or coaxial cable of 21
the type used by public utilities, common carriers or 22
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communication services providers, whether wireless or wire line, 23
copper air conditioner evaporator coil or condenser, aluminum 24
copper radiators not attached to a motor vehicle, or any 25
combination of these. 26
(c) "Aluminum materials" means any aluminum cable, 27
bars, rods or tubing of the type used to construct utility, 28
communication or broadcasting towers, aluminum utility wire and 29
aluminum irrigation pipes or tubing. "Aluminum materials" does 30
not include aluminum cans that have served their original economic 31
purpose. 32
(d) "Dealer-to-dealer transaction(s)" means any 33
transaction of regulated metals, regardless of compensation, 34
between registered scrap metal dealers. 35
(e) "Law enforcement officer" means any person 36
appointed or employed full time by the state or any political 37
subdivision thereof, or by the state military department as 38
provided in Section 33-1-33, who is duly sworn and vested with 39
authority to bear arms and make arrests, and whose primary 40
responsibility is the prevention and detection of crime, the 41
apprehension of criminals and the enforcement of the criminal 42
traffic laws of this state or the ordinances of any political 43
subdivision thereof. 44
(f) "Metal property" means materials as defined in this 45
section as railroad track materials, copper materials and aluminum 46
materials and electrical, communications or utility brass, metal 47
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covers for service access and entrances to sewers and storm 48
drains, metal bridge pilings, irrigation wiring and other metal 49
property attached to or part of center pivots, grain bins, 50
stainless steel sinks, catalytic converters not attached to a 51
motor vehicle and metal beer kegs. Metal property does not 52
include ferrous materials not listed in this section. 53
(g) "Person" means an individual, partnership, 54
corporation, joint venture, trust, limited liability company, 55
association or any other legal or commercial entity. 56
(h) "Personal identification card" means any government 57
issued photographic identification card including a valid 58
identification card issued by a federally recognized Indian tribe 59
that contains a color photograph of the card holder and the card 60
holder's legal name, residence address and date of birth. 61
(i) "Photograph" or "photographically" means a still 62
photographic image, including images captured in digital format, 63
that are of such quality that the persons and objects depicted are 64
clearly identifiable. 65
(j) "Purchase transaction" means a transaction in which 66
metal property is acquired whether the person acquiring the metal 67
property gives consideration for the metal property or not. For 68
purposes of Sections 97-17-71 through 97-17-71.3, the words 69
"purchase" and "purchased" mean a purchase transaction. 70
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(k) "Purchaser" means a person who acquires metal 71
property, whether the person gives consideration for the metal 72
property or not. 73
(l) "Record" or "records" means a paper, electronic or 74
other method of storing information. 75
(m) "Registered business entity" means a business 76
entity created by statute, registered and in good standing with 77
its state of incorporation or formation, and having a federal 78
Employer Identification Number (EIN). This term does not include 79
any sole proprietorship, fictitious business name, or nonstatutory 80
general partnership. 81
(n) "Scrap metal" means any metal property that is 82
acquired by a scrap metal dealer in a purchase transaction. 83
(o) "Scrap metal dealer" means any person who is 84
engaged, from a fixed location or otherwise, acquiring by purchase 85
transaction, metal property that has served its original economic 86
purpose, whether or not the person is engaged in the business of 87
performing the manufacturing process by which metals are converted 88
into raw material products consisting of prepared grades and 89
having an existing or potential economic value. Any person who 90
falls under this definition must register as a scrap metal dealer 91
pursuant to Sections 97-17-71 through 97-17-71.3 and its rules. 92
(2) Every scrap metal dealer or other purchaser shall keep 93
an accurate and legible record in which he shall enter the 94
following information for each purchase transaction: 95
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(a) The name, address and age of the person from whom 96
the metal property is purchased as obtained from the seller's 97
personal identification card; 98
(i) If a person other than the seller delivers the 99
metal property to the purchaser, the purchaser shall enter the 100
name, address, and age of the person who delivers the metal 101
property, as obtained from the personal identification card of the 102
person delivering the metal property. If the person delivering 103
the metal property is the employee of the scrap metal dealer 104
acting in his official capacity and at the direction of the scrap 105
metal dealer, the purchaser is not required to enter the name, 106
address, and age of the person who delivers the metal 107
property * * *; 108
(ii) If the seller is a registered business 109
entity, and a person other than the seller delivers the metal 110
property to the purchaser, in addition to the information required 111
by this paragraph (a), the purchaser shall enter the name, 112
principal business address, state of incorporation or formation of 113
the entity, the federal Employer Identification Number (EIN) of 114
the entity, and the name and telephone number of a contact person 115
for the seller; 116
(iii) If the transaction is for the purchase of 117
copper materials, a scanned copy of either: the license to do 118
business issued to the plumber, electrician or contractor by a 119
municipality or county in this state or the certificate of 120
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responsibility issued by the State Board of Contractors; or a 121
demolition permit issued to the seller by the municipality or 122
county in which the scrap metal dealer is located; 123
(b) The date and place of each acquisition of the metal 124
property; 125
(c) The weight, quantity or volume and a general 126
physical description of the type of metal property, such as wire, 127
tubing, extrusions or casting, acquired in a purchase transaction; 128
(d) The amount of consideration given in a purchase 129
transaction for the metal property. If no consideration is given, 130
a record of the origin of the regulated metal; 131
(e) The vehicle license tag number, state of issue and 132
the make and type of the vehicle used to deliver the metal 133
property to the purchaser; 134
(f) A signed statement from the person receiving 135
consideration in the purchase transaction stating that he or she 136
is the rightful owner of the metal property or is entitled to sell 137
the metal property being sold. Signed statements as required by 138
this section may be collected and recorded on paper, by 139
photographic copy, or other alternative formats as set forth in 140
the rules promulgated by the Secretary of State; 141
(g) A scanned copy or a photocopy of the personal 142
identification card of the person receiving consideration, or 143
delivering the metal property in the purchase transaction; and 144
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(h) A photograph, videotape or similar likeness of the 145
person receiving consideration or any person other than the seller 146
who delivers the metal property to the purchaser in which the 147
person's facial features are clearly visible and in which the 148
metal property the person is selling or delivering is clearly 149
visible. 150
Such records shall be maintained by the scrap metal dealer or 151
purchaser for not less than two (2) years from the date of the 152
purchase transaction, and such records shall be made available to 153
any law enforcement officer or Secretary of State examiner during 154
usual and customary business hours. 155
(3) The purchaser shall photographically capture the metal 156
property as it exists when it is acquired by the purchaser. The 157
time and date shall be digitally recorded on the photograph, and 158
the identity of the person taking the photograph shall be 159
recorded. The purchaser shall permit any law enforcement officer 160
or Secretary of State examiner to make an inspection of the metal 161
property, if the metal property is still in the purchaser's 162
possession, and of all photographs of the metal property. Any 163
photograph of metal property taken and maintained pursuant to this 164
subsection shall be admissible in any civil or criminal 165
proceeding. 166
(4) During the usual and customary business hours of a scrap 167
metal dealer, a law enforcement officer or Secretary of State 168
examiner, after proper identification as a law enforcement officer 169
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or Secretary of State examiner, shall have the right to inspect 170
all purchased metal property and all records pertaining to the 171
purchase of regulated metals in the possession of the scrap metal 172
dealer or purchaser. 173
(5) (a) Whenever a law enforcement officer has reasonable 174
cause to believe that any item of metal property in the possession 175
of a scrap metal dealer has been stolen, a law enforcement officer 176
who has an affidavit from the alleged rightful owner of the 177
property identifying the property with specificity, including any 178
identifying markings, may issue and deliver a written hold notice 179
to the scrap metal dealer. The hold notice shall specifically 180
identify those items of metal property that are believed to have 181
been stolen and that are subject to the hold notice. Upon receipt 182
of the notice, the scrap metal dealer may not process or remove 183
the metal property identified in the notice from the place of 184
business of the scrap metal dealer for fifteen (15) calendar days 185
after receipt of the notice, unless sooner released by a law 186
enforcement officer. 187
(b) No later than the expiration of the fifteen-day 188
period, a law enforcement officer, after receiving additional 189
substantive evidence beyond the initial affidavit, may issue and 190
deliver a second written hold notice, which shall be an extended 191
hold notice. The extended hold notice shall specifically identify 192
those items of metal property that are believed to have been 193
stolen and that are subject to the extended hold notice. Upon 194
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receipt of the extended hold notice, the scrap metal dealer may 195
not process or remove the items of metal property identified in 196
the notice from the place of business of the scrap metal dealer 197
for fifteen (15) calendar days after receipt of the extended hold 198
notice, unless sooner released by a law enforcement officer. 199
(c) At the expiration of the hold period or, if 200
extended in accordance with this subsection, at the expiration of 201
the extended hold period, the hold is automatically released, then 202
the scrap metal dealer may dispose of the metal property unless 203
other disposition has been ordered by a court of competent 204
jurisdiction. 205
(d) If the scrap metal dealer contests the 206
identification or ownership of the metal property, the party other 207
than the scrap metal dealer claiming ownership of any metal 208
property in the possession of a scrap metal dealer, provided that 209
a timely report of the theft of the metal property was made to the 210
proper authorities, may bring a civil action in the circuit court 211
of the county in which the scrap metal dealer or purchaser is 212
located. The petition for the action shall include the means of 213
identification of the metal property utilized by the petitioner to 214
determine ownership of the metal property in the possession of the 215
scrap metal dealer. 216
(e) When a lawful owner recovers stolen metal property 217
from a scrap metal dealer who has complied with this section, and 218
the person who sold the metal property to the scrap metal dealer 219
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is convicted of a violation of this section, or theft by receiving 220
stolen property under Section 97-17-70, the court shall order the 221
convicted person to make full restitution to the scrap metal 222
dealer, including, without limitation, attorney's fees, court 223
costs and other expenses. 224
(6) For dealer-to-dealer transactions, records required to 225
be kept include: 226
(a) Name and address of selling dealer; 227
(b) Date and place of each acquisition of the metal 228
property; 229
(c) The weight, quantity, or volume and a general 230
description of the type of metal property; and 231
(d) The amount or type of consideration given for the 232
metal property by the purchasing dealer. 233
Such records shall be maintained by the scrap metal dealer 234
for not less than two (2) years from the date of the purchase 235
transaction, and such records shall be made available to any law 236
enforcement officer or Secretary of State examiner during usual 237
and customary business hours. 238
(7) It shall be unlawful for any person to give a false 239
statement of ownership or to give a false or altered 240
identification or vehicle tag number and receive money or other 241
consideration from a scrap metal dealer or other purchaser in 242
return for metal property. 243
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(8) A scrap metal dealer or other purchaser shall not enter 244
into any cash transactions in payment for the purchase of metal 245
property. Payment shall be made by check issued to the seller of 246
the metal property or by electronic funds transfer. 247
(9) If a person acquiring metal property fails to maintain 248
the records or to hold such materials as requested by a law 249
enforcement officer under Sections 97-17-71 through 97-17-71.3, 250
such failure shall be prima facie evidence that the person 251
receiving the metal property received it knowing it to be stolen 252
in violation of Section 97-17-70. 253
(10) It shall be unlawful for any person to transport or 254
cause to be transported for himself or another from any point 255
within this state to any point outside this state any metal 256
property, unless the person or entity first reports to the sheriff 257
of the county from which he departs this state transporting such 258
materials the same information that a purchaser in this state 259
would be required to obtain and keep in a record as set forth in 260
subsection (2) of this section. In such a case the sheriff 261
receiving the report shall keep the information in records 262
maintained in his office as a public record available for 263
inspection by any person at all reasonable times. This section 264
shall not apply to a public utility, as that term is defined in 265
Section 77-3-3, engaged in carrying on utility operations; to a 266
railroad, as that term is defined in Section 77-9-5; to a 267
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communications service provider, whether wireless or wire line; or 268
to a scrap metal dealer. 269
(11) It shall be unlawful for a scrap metal dealer or other 270
purchaser to knowingly purchase or possess a metal beer keg, or a 271
metal syrup tank generally used by the soft drink industry, 272
whether damaged or undamaged, or any reasonably recognizable part 273
thereof, on any premises that the dealer uses to buy, sell, store, 274
shred, melt, cut or otherwise alter scrap metal. However, it 275
shall not be unlawful to purchase or possess a metal syrup tank 276
generally used by the soft drink industry if the scrap metal 277
dealer or other purchaser obtains a bill of sale at the time of 278
purchase from a seller if the seller is a manufacturer of such 279
tanks, a soft drink company or a soft drink distributor. 280
(12) It shall be unlawful to sell to a scrap metal dealer 281
any bronze vase and/or marker, memorial, statue, plaque, or other 282
bronze object used at a cemetery or other location where deceased 283
persons are interred or memorialized, or for any such dealer to 284
purchase those objects, unless the source of the bronze is known 285
and notice is provided to the municipal or county law enforcement 286
agency where the dealer is located. The notice shall identify all 287
names, letters, dates and symbols on the bronze and a photograph 288
of the bronze shall be attached thereto. Written permission from 289
the cemetery and the appropriate law enforcement agency must be 290
received before any type of bronze described in this subsection 291
may be purchased, processed, sold or melted. 292
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(13) (a) It shall be unlawful for any scrap metal dealer to 293
purchase any manhole cover and other similar types of utility 294
access covers, including storm drain covers, or any metal property 295
clearly identified as belonging to a political subdivision of the 296
state or a municipality, unless that metal property is purchased 297
from the political subdivision, the municipal utility or the 298
manufacturer of the metal. Any purchaser who purchases metal 299
property in bulk shall be allowed twenty-four (24) hours to 300
determine if any metal property prohibited by this subsection is 301
included in a bulk purchase. If such prohibited metal property is 302
included in a bulk purchase, the purchaser shall notify law 303
enforcement no later than twenty-four (24) hours after the 304
purchase. 305
(b) It shall be unlawful for a person to sell, or any 306
scrap metal dealer to purchase, any copper telecommunication wire 307
in any form or any metal property clearly identified as belonging 308
to a telecommunications company, unless that metal property is 309
purchased from (i) an electrician or contractor to whom either a 310
license has been issued by a municipality or county in this state 311
or a current certificate of responsibility has been issued by the 312
State Board of Public Contractors; or (ii) a person who holds a 313
demolition permit issued by a municipality or county in this 314
state. It shall be unlawful for a person to sell, or a scrap 315
metal dealer to purchase, copper telecommunication wire that has 316
been burned to remove the insulation, unless the seller provides 317
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certification, on a form as issued by the Secretary of State and 318
signed by a firefighter who is currently in compliance with the 319
certification requirements of the Mississippi Fire Personnel 320
Minimum Standards and Certification Board or a certified law 321
enforcement officer, that the source of the copper 322
telecommunication wire was from a building destroyed by fire. 323
(14) It shall be unlawful for a scrap metal dealer or other 324
purchaser to purchase metal property from a person younger than 325
eighteen (18) years of age. 326
(15) It is unlawful for a seller to sell, and for a scrap 327
metal dealer or other purchaser to purchase, copper materials if 328
the seller: 329
(a) Is not a plumber, electrician or contractor to whom 330
either a license has been issued by a municipality or county in 331
this state or a current certificate of responsibility has been 332
issued by the State Board of Public Contractors; or 333
(b) Is not the holder of a demolition permit issued by 334
the municipality or county in which the scrap metal dealer is 335
located. 336
( * * *16) Metal property may not be purchased, acquired or 337
collected between the hours of 9:00 p.m. and 6:00 a.m. 338
( * * *17) Except as provided in this subsection, any person 339
willfully or knowingly violating the provisions of Sections 340
97-17-71 through 97-17-71.3 shall, upon conviction thereof, be 341
deemed guilty of a misdemeanor, and shall be punished by a fine 342
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not to exceed One Thousand Dollars ($1,000.00) per offense, unless 343
the purchase transaction or transactions related to the violation, 344
in addition to any costs which are, or would be, incurred in 345
repairing or in the attempt to recover any property damaged in the 346
theft of or removal of the metal property, including replacement 347
costs of the metal property, are in aggregate an amount which 348
exceeds One Thousand Dollars ($1,000.00) but less than Five 349
Thousand Dollars ($5,000.00), in which case the person shall be 350
guilty of a felony and shall be imprisoned in the custody of the 351
Department of Corrections for a term not to exceed five (5) years, 352
fined not more than Ten Thousand Dollars ($10,000.00), or both. 353
Any person found guilty of stealing metal property or receiving 354
metal property, knowing it to be stolen in violation of Section 355
97-17-70, shall be ordered to make full restitution to the victim, 356
including, without limitation, restitution for property damage 357
that resulted from the theft of the property. 358
( * * *18) If the purchase transaction or transactions 359
related to the violation, in addition to any costs which are, or 360
would be, incurred in repairing or in the attempt to recover any 361
property damaged in the theft of or removal of the metal property, 362
including replacement costs of the metal property, are in 363
aggregate an amount which exceeds Five Thousand Dollars 364
($5,000.00) but less than Twenty-five Thousand Dollars 365
($25,000.00), the person shall be guilty of a felony and shall be 366
imprisoned in the custody of the Department of Corrections for a 367
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term not less than one (1) year, but not to exceed ten (10) years, 368
fined not more than Fifteen Thousand Dollars ($15,000.00), or 369
both. 370
( * * *19) If the purchase transaction or transactions 371
related to the violation, in addition to any costs which are, or 372
would be, incurred in repairing or in the attempt to recover any 373
property damaged in the theft of or removal of the metal property, 374
including replacement costs of the metal property, are in 375
aggregate an amount which exceeds Twenty-five Thousand Dollars 376
($25,000.00), the person shall be guilty of a felony and shall be 377
imprisoned in the custody of the Department of Corrections for a 378
term not less than three (3) years, but not to exceed twenty (20) 379
years, fined not more than Twenty Thousand Dollars ($20,000.00), 380
or both. 381
( * * *20) This section shall not be construed to repeal 382
other criminal laws. Whenever conduct proscribed by any provision 383
of this section is also proscribed by any other provision of law, 384
the provision which carries the more serious penalty shall be 385
applied. 386
( * * *21) This section shall apply to all businesses 387
regulated under this section without regard to the location within 388
the State of Mississippi. 389
( * * *22) Sections 97-17-71 through 97-17-71.3 shall take 390
precedence over any and all local ordinances governing purchase 391
transactions of metal property. If any municipal or county 392
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ordinance, rule or regulation conflicts with the provisions of 393
Sections 97-17-71 through 97-17-71.3, the provisions of Sections 394
97-17-71 through 97-17-71.3 shall preempt the municipal or county 395
ordinance, rule or regulation. 396
( * * *23) This section shall be fully applicable to the 397
requirements for the purchase and sale of detached catalytic 398
converters provided in Section 97-17-71.3, Mississippi Code of 399
1972. 400
SECTION 2. Section 97-17-71.2, Mississippi Code of 1972, is 401
brought forward as follows: 402
97-17-71.2. (1) It is an offense for a scrap metal dealer 403
to pay cash to a person who presents an air conditioner evaporator 404
coil or condenser, in whole or in part, for sale as scrap. 405
(2) Scrap metal described in subsection (1) may only be sold 406
for scrap by an authorized agent, representative or employee of 407
one (1) of the following: 408
(a) A licensed HVAC contractor who acquired the 409
evaporator coil or condenser in the performance as a contractor as 410
defined in Section 31-3-1; 411
(b) A company meeting all local or municipal 412
requirements to obtain a permit from that jurisdiction to repair, 413
replace and install HVAC units containing copper evaporator coils 414
or condensers; 415
(c) Where the jurisdiction does not require a permit to 416
repair, replace and install HVAC units containing copper 417
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evaporator coils or condensers, by a company holding a privilege 418
license indicating the business as that of an HVAC installer or 419
repairer; or 420
(d) A company holding a privilege license indicating 421
the business as that of an HVAC installer or repairer. 422
(3) The person offering an air conditioner evaporator coil 423
or condenser for sale as scrap on behalf of a company listed in 424
subsection (2) shall have in the person's possession documentation 425
that the company for whom it is being sold is a company described 426
in subsection (2), and that the person selling the evaporator coil 427
or condenser is an authorized agent, representative or employee of 428
that company. 429
(4) Payment for scrap metal described in subsection (1) must 430
be made by check or money order, and the name of the company or 431
the individual meeting the requirements of subsection (2) of this 432
section must be the payee on the check. 433
(5) (a) A violation of this section is a misdemeanor 434
punishable by a fine not to exceed One Thousand Dollars 435
($1,000.00) per offense. 436
(b) Nothing in this section shall be construed to 437
preclude a person violating this section from also being 438
prosecuted for any other applicable criminal offense. 439
(6) Any purchase of any air conditioner evaporator coil or 440
condenser, as described in this section, in whole or in part, is 441
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ST: Copper materials; prohibit transactions
between certain sellers and scrap metal dealers
and other purchases.
subject to the record keeping requirements required by Section 442
97-17-71. 443
SECTION 3. This act shall take effect and be in force from 444
and after July 1, 2026. 445