Read the full stored bill text
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STATE OF OKLAHOMA
2nd Session of the 60th Legislature (2026)
HOUSE BILL 3728 By: Pfeiffer
AS INTRODUCED
An Act relating to the Oklahoma Scrap Metal Dealers
Act; amending 2 O.S. 2021, Sections 11-91, 11-92, 11-
93, 11-94, as amended by Section 632, Chapter 486,
O.S.L. 2025, 11-97, 11-98, as amended by Section 1,
Chapter 192, O.S.L. 2022, and 11-99 (2 O.S. Supp.
2025, Sections 11-94 and 11-98), which relate to the
Oklahoma Scrap Metal Dealers Act; changing regulating
agency from the Oklahoma Department of Agriculture,
Food, and Forestry to the Oklahoma Department of
Environmental Quality; updating statutory references;
providing for recodification; and providing an
effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 2 O.S. 2021, Section 11-91, is
amended to read as follows:
Section 11-91. As used in the Oklahoma Scrap Metal Dealers Act:
1. "Aluminum material" means the metal aluminum or aluminum
alloy or anything made of either aluminum or aluminum alloy, except
aluminum beverage cans;
2. "Copper material" means the metal copper or copper alloy or
anything made of either copper or copper alloy;
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3. "Department" means the Oklahoma Department of Agriculture,
Food, and Forestry Oklahoma Department of Environmental Quality
(DEQ) and its employees, officers and divisions;
4. "Digital image" means pixels intended for display on a
computer monitor or for transformation into another format, such as
a printed page. For purposes of this paragraph, "pixels" shall mean
raster-based, two-dimensional, rectangular arrays of static data
elements;
5. "Exempted seller" means any person, firm, business or
governmental entity that produces or otherwise acquires any scrap
metal regulated by the provisions of the Oklahoma Scrap Metal
Dealers Act in the normal course of business, including, but not
limited to:
a. a mechanical, electrical or plumbing contractor
currently licensed to do business in any state,
b. a scrap metal dealer (Standard Industrial
Classification Codes 5051 or 5093), currently licensed
pursuant to the provisions of the Oklahoma Scrap Metal
Dealers Act,
c. a holder of a current farm-use tax permit,
d. a manufacturer,
e. a distributor,
f. a retailer with a current sales tax permit, or
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g. any state-recognized business entity including a
corporation, limited liability company, partnership,
limited partnership and sole proprietorship;
6. "License" means a scrap metal dealer license;
7. "Remote storage battery" means a battery commonly used in
telecommunications, the oil industry or infrastructure;
8. "Scrap metal" means any copper material or aluminum material
or any item listed in subsection C of Section 11-93 2-7-504 of this
title Title 27A of the Oklahoma Statutes, offered for sale or resale
or purchased by any person, firm or business;
9. "Scrap metal dealer" means any person, firm or corporation
being an owner, keeper or proprietor of a retail or wholesale
business which buys, sells, salvages, processes or otherwise handles
scrap metal materials regulated by the provisions of the Oklahoma
Scrap Metal Dealers Act; and
10. "Yard" means the place where any scrap metal dealer stores
scrap metal materials or keeps such materials for purpose of sale.
SECTION 2. AMENDATORY 2 O.S. 2021, Section 11-92, is
amended to read as follows:
Section 11-92. A. Every scrap metal dealer shall keep a
separate book, record or other electronic system as authorized by
the Oklahoma Scrap Metal Dealers Act, to record and maintain the
following data from any seller of any amount of scrap metal as
defined by the Oklahoma Scrap Metal Dealers Act:
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1. A legible photocopy of the seller's driver license or
government-provided photo identification, issued by the United
States government, State of Oklahoma, or any other state of the
United States, or any other federally recognized identification that
contains his or her name, and date of birth; provided, that if the
photo identification does not contain an address, an address shall
be provided;
2. Vehicle description and license tag number, or vehicle
identification number if no state license plate is affixed, if the
vehicle was used to transport the material being sold;
3. Date and place of the transaction and the transaction number
as provided by the scrap metal dealer;
4. Description of the items sold and weight of the items as
required by the provisions of the Oklahoma Scrap Metal Dealers Act;
5. Whether the scrap metal is in wire, cable, bar, rod, sheet
or tube form; and
6. The digital image of the items purchased and the digital
image of the seller. The digital image shall contain depictions
that clearly identify the items sold and are captured in the common
JPEG format. The digital image shall be retained by the purchaser
for a minimum of ninety (90) days from the date of purchase.
B. Municipalities or other political subdivisions may designate
the reporting methods and the format of the information required by
subsection A of this section, either written, electronic or
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Internet-based. The Oklahoma Department of Agriculture, Food, and
Forestry Oklahoma Department of Environmental Quality (DEQ) shall
designate an Internet-based reporting method that applies to all
geographic areas of the state that are not subject to a local
designation for Internet reporting.
C. Records required by this section shall be retained for no
less than two (2) years from the date of transaction and shall be
made available at any time to any person authorized by law for such
inspection.
D. It shall be unlawful for any scrap metal dealer to purchase
any item from a minor under the age of sixteen (16) without having
first obtained the consent, in writing, of a parent or guardian of
such minor. Such written consent shall be kept with the book,
record or other electronic recording system required by subsection A
of this section and, if requested by a law enforcement agency where
the purchase was made, shall be transmitted to the law enforcement
agency and may be kept as a permanent record and made available for
public inspection.
E. A scrap metal dealer shall obtain from each seller of a
scrap metal item regulated by the Oklahoma Scrap Metal Dealers Act,
or a parent or guardian on behalf of a minor, a written declaration
of ownership containing a legible signature of the seller. The
declaration of ownership shall be in the following form and shall
appear on the bill of sale or transaction ticket to be completed by
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the seller in the presence of the purchaser at the time of the
transaction:
"I hereby affirm that I am the rightful owner of the hereon
described merchandise; or I am an authorized representative of the
rightful owner and affirm that I have been given authority by the
rightful owner to sell the hereon described merchandise.
I state under penalty of perjury under the laws of Oklahoma that
the foregoing is true and correct.
______________________________ __________________________
Signature Date and Place"
F. If requested by a law enforcement agency, a scrap metal
dealer shall report in writing all purchases of scrap metal as
defined by the Oklahoma Scrap Metal Dealers Act within forty-eight
(48) hours following such purchase. The report shall contain all
the information required by this section.
G. Prior to the purchase of a used motor vehicle, trailer or
nonmotorized recreational vehicle, the scrap metal dealer shall
require one of the following forms of proof of ownership from the
person selling the used motor vehicle, trailer or nonmotorized
recreational vehicle:
1. A certificate of title that matches the vehicle
identification number of the vehicle being sold;
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2. A notarized power of attorney from the individual on the
certificate of title authorizing the seller to dispose of the
vehicle on behalf of the owner; or
3. A statement of ownership from the seller stating that the
vehicle was purchased from the lawful owner, accompanied by a bill
of sale from the lawful owner including a statement that there are
no outstanding liens on the vehicle, and a statement that the
vehicle is inoperable or incapable of operation or use on the
highway and has no resale value except as scrap.
The provisions of this subsection shall not apply to sales,
purchases or other transfers of vehicles between scrap metal dealers
and licensed automotive dismantlers and parts recyclers, licensed
crushers, salvage dealers, used car dealers and licensed wreckers.
H. A scrap metal dealer shall not enter into any cash
transactions in excess of One Thousand Dollars ($1,000.00) in
payment for the purchase of scrap metal that is listed in subsection
C of Section 11-93 of this title unless the transaction is made with
an exempted seller. Payment by check shall be issued and made
payable only to the seller of the scrap metal whose identification
information has been obtained pursuant to the provisions of this
section.
I. The following shall be exempt from this section:
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1. Scrap metal hauled by a scrap metal dealer for an exempted
seller in a motor vehicle registered with the Oklahoma Department of
Transportation; and
2. Material delivered by an exempted seller with a check made
payable to the company of the exempted seller.
SECTION 3. AMENDATORY 2 O.S. 2021, Section 11-93, is
amended to read as follows:
Section 11-93. A. It shall be unlawful for scrap metal dealers
permitted to do business in this state as required by the Oklahoma
Scrap Metal Dealers Act to purchase any item listed in subsection C
of this section without:
1. Obtaining proof that the seller owns or is authorized to
sell the property, by evidence of a receipt of purchase, a bill of
sale for the property, contract or other documentation; and
2. Requiring the seller to sign a written declaration in the
form required by subsection E of Section 11-92 2-7-503 of this title
Title 27A of the Oklahoma Statutes; or
3. Obtaining proof that the seller is an exempted seller or an
employee of an exempted seller, as defined in Section 11-91 2-7-502
of this title. Title 27A of the Oklahoma Statutes.
B. Scrap metal dealers shall not purchase any regulated items
which are not delivered in a motor vehicle.
C. The following items are regulated by the provisions of this
act:
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1. Manhole covers, street signs, traffic signs, traffic
signals, including their fixtures and hardware, and highway guard
rails, or any other identifiable public property;
2. Electric light poles, including their fixtures and hardware,
electric transmission or distribution cable and wires, and any other
hardware associated with electric utility or telecommunication
systems;
3. Any copper wire, braided or single strand, insulated or not
insulated, that is four (4) gauge or larger in size;
4. Copper wire from which the actual or apparent insulation or
other coating has been burned, melted or exposed to heat or fire
resulting in melting some or all other insulation or coating;
5. Funeral markers, plaques or funeral vases;
6. Historical markers or public artifacts;
7. Railroad equipment;
8. Any metal item marked with any form of the name, initials or
logo of a governmental entity, utility, cemetery or railroad;
9. Condensing or evaporating coil including copper coil ends;
10. Aluminum or stainless steel containers or bottles designed
to contain fuel;
11. Metal beer kegs that are clearly marked as being the
property of the beer manufacturer;
12. Metal bleachers or other seating facilities used in
recreational areas or sporting arenas;
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13. Automotive catalytic converters;
14. Machinery or supplies commonly used in the drilling,
completing, operating or repairing of oil or gas wells;
15. Stainless steel fittings and fixtures commonly used in the
operation of car wash facilities; and
16. Remote storage batteries.
SECTION 4. AMENDATORY 2 O.S. 2021, Section 11-94, as
amended by Section 632, Chapter 486, O.S.L. 2025 (2 O.S. Supp. 2025,
Section 11-94), is amended to read as follows:
Section 11-94. A. Any person found in violation of any
provision of the Oklahoma Scrap Metal Dealers Act, with the
exceptions as provided by subsections B, C and D of this section,
shall, upon conviction, be guilty of a misdemeanor and punished by a
fine of not more than Two Thousand Five Hundred Dollars ($2,500.00)
per offense. Any person convicted of a second violation of the
Oklahoma Scrap Metal Dealers Act shall be guilty of a misdemeanor
and punished by a fine of not more than Five Thousand Dollars
($5,000.00) per offense or by imprisonment in the county jail for a
period of not more than six (6) months. Any person convicted of a
third or subsequent violation of the Oklahoma Scrap Metal Dealers
Act shall be guilty of a Class D3 felony offense punishable by a
fine of not more than Ten Thousand Dollars ($10,000.00) per offense,
or by imprisonment as provided for in subsections B through F of
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Section 20P of Title 21 of the Oklahoma Statutes, or by both such
fine and imprisonment.
B. Any person acting as a scrap metal dealer without a scrap
metal dealer license or a sales tax permit as required by the
Oklahoma Scrap Metal Dealers Act shall, upon conviction, be guilty
of a misdemeanor and punished by a fine of not more than Five
Hundred Dollars ($500.00); provided, that each day of operation in
violation of the Oklahoma Scrap Metal Dealers Act shall constitute a
separate offense.
C. Any person who knowingly provides false information with
respect to the provisions of subsection I of Section 1423 of this
title shall, upon conviction, be guilty of a Class D3 felony offense
and punished by a fine of Five Thousand Dollars ($5,000.00), or by
imprisonment as provided for in subsections B through F of Section
20P of Title 21 of the Oklahoma Statutes, or by both such fine and
imprisonment.
D. Any person convicted of purchasing or selling burnt copper
material or copper wire as prohibited by subsection G of Section
1423 of this title Title 68 of the Oklahoma Statutes shall, upon
first conviction, be guilty of a misdemeanor and punished by a fine
of Two Thousand Five Hundred Dollars ($2,500.00). Any person
convicted of a second or subsequent violation shall be guilty of a
Class D3 felony offense punishable by a fine of Five Thousand
Dollars ($5,000.00), or by imprisonment as provided for in
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subsections B through F of Section 20P of Title 21 of the Oklahoma
Statutes, or by both such fine and imprisonment.
E. Each scrap metal dealer convicted of a violation of the
Oklahoma Scrap Metal Dealers Act shall be reported to the Oklahoma
Tax Commission by the clerk of the court rendering such verdict.
F. The Tax Commission shall revoke the sales tax permit of any
person convicted of three separate violations of the Oklahoma Scrap
Metal Dealers Act. The person shall not be eligible to receive a
sales tax permit for such purpose for a period of one (1) year
following the revocation. The revocation procedure shall be subject
to notice and hearing as required by Section 1426 of this title
Title 68 of the Oklahoma Statutes.
SECTION 5. AMENDATORY 2 O.S. 2021, Section 11-97, is
amended to read as follows:
Section 11-97. A person shall not advertise, act, offer to act,
hold himself or herself out, or engage in business as a scrap metal
dealer in this state without a scrap metal dealer license issued by
the Oklahoma Department of Agriculture, Food, and Forestry Oklahoma
Department of Environmental Quality (DEQ).
SECTION 6. AMENDATORY 2 O.S. 2021, Section 11-98, as
amended by Section 1, Chapter 192, O.S.L. 2022 (2 O.S. Supp. 2025,
Section 11-98), is amended to read as follows:
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Section 11-98. A. An applicant for a license to engage in
business as a scrap metal dealer shall provide all of the following
information on the license application:
1. If the applicant is an individual, the full name and place
of residence of the applicant;
2. If the applicant is a firm, corporation or other legal
entity, the full name, place of residence, and the position of the
individual filing the application on behalf of the entity;
3. The business address of the location where the scrap metal
dealer conducts business or will conduct business as a scrap metal
dealer;
4. Legal proof of ownership, lease agreement or contract for
the business location;
5. Proof of a dedicated telephone line for the business
location;
6. Proof of a general liability insurance policy for the
business location;
7. Proof of a current discharge permit issued pursuant to the
provisions of the Oklahoma Pollutant Discharge Elimination System
Act; and
8. Whether the person has been previously convicted of, or pled
guilty or nolo contendere to, any felony crime that substantially
relates to scrap metal dealing and poses a reasonable threat to
public safety.
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B. The Department may conduct any reasonable inquiry or
investigation relative to the determination of the fitness of the
applicant to be licensed or continue to be licensed including, but
not limited to, requiring a national criminal history record check
as provided in Section 150.9 of Title 74 of the Oklahoma Statutes.
C. The Department shall charge an application fee in the amount
of One Hundred Dollars ($100.00) for processing an initial
application for a scrap metal dealer license. The Department shall
also charge an investigative fee of One Hundred Dollars ($100.00) to
be used for the purpose of conducting an investigation of the
applicant. All fees shall be nonrefundable.
D. In addition to the application, each applicant shall submit
a full set of fingerprints and a photograph with each application
for an original license. The fingerprints shall be used for a
national criminal history record check as provided for in subsection
B of this section. The applicant shall be required to pay for
fingerprints, photographs and the national criminal history records
check required for licensure and renewals.
E. If the results of the investigation of the applicant show no
prohibition to granting a license, the Department shall issue the
scrap metal dealer license. The scrap metal dealer license shall be
valid for a period of one (1) year unless otherwise voluntarily
surrendered, suspended or revoked by the Department.
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F. A scrap metal dealer license issued pursuant to the
provisions of this act is valid for the conduct of business as a
scrap metal dealer only at the location specified in the
application. A separate scrap metal dealer license shall be
required for each location specified in the application form and
each license shall designate the location to which it applies. The
business of the scrap metal dealer shall not be conducted in any
place other than that designated by the license. The scrap metal
dealer license shall not be transferable.
G. The Department shall deny the license when the applicant
fails to properly complete the application form or if it is
determined that the applicant is not eligible to receive a scrap
metal dealer license.
H. A scrap metal dealer license may be renewed any time within
sixty (60) days prior to the expiration date of the license. To
renew a scrap metal dealer license, the licensee must first obtain a
renewal form from the Department. The licensee must complete the
renewal form and submit a renewal fee in the amount of One Hundred
Dollars ($100.00) to the Department. Upon receipt of the renewal
application and fee, the Department shall conduct a national
criminal history record check and investigate any other records or
information deemed by the Department to be relevant to the renewal
of the scrap metal dealer license. If the licensee appears not to
have any prohibition to renewing the scrap metal dealer license, the
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Department shall issue the renewed license for a period of one (1)
year.
I. The Oklahoma Department of Agriculture, Food, and Forestry
Oklahoma Department of Environmental Quality (DEQ) shall promulgate
rules, procedures and forms governing the application and renewal
procedures for scrap metal dealer licenses.
J. As used in this section:
1. "Substantially relates" means the nature of criminal conduct
for which the person was convicted has a direct bearing on the
fitness or ability to perform one or more of the duties or
responsibilities necessarily related to the occupation; and
2. "Poses a reasonable threat" means the nature of criminal
conduct for which the person was convicted involved an act or threat
of harm against another and has a bearing on the fitness or ability
to serve the public or work with others in the occupation.
SECTION 7. AMENDATORY 2 O.S. 2021, Section 11-99, is
amended to read as follows:
Section 11-99. A. The Oklahoma Department of Agriculture,
Food, and Forestry Oklahoma Department of Environmental Quality
(DEQ) may suspend, cancel, revoke, or refuse reissuance of a scrap
metal dealer license after the person has an opportunity for public
hearing pursuant to the Administrative Procedures Act for any of the
following causes:
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1. Engages in fraud or deceit in obtaining or renewing a
license;
2. Acts as a scrap metal dealer in this state without a
license;
3. Aids or abets another person in acting as a scrap metal
dealer without a license; or
4. Violates any of the provisions of the Oklahoma Scrap Metal
Dealers Act.
B. After notice and opportunity for a hearing in accordance
with the Administrative Procedures Act, if the Department finds any
person in violation of the Oklahoma Scrap Metal Dealers Act or any
rule promulgated or order issued pursuant thereto, the Department
shall have the authority to assess an administrative penalty of not
less than One Hundred Dollars ($100.00) and not more than Ten
Thousand Dollars ($10,000.00) for each violation. Each action or
each day a violation continues may constitute a separate and
distinct violation.
C. In addition to penalties and fines, the Department shall
have authority to apply to district court and obtain a temporary or
permanent injunction against anyone who violates the Oklahoma Scrap
Metal Dealers Act and shall have authority to obtain or impose civil
monetary penalties on anyone who violates the Oklahoma Scrap Metal
Dealers Act.
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D. Nothing in the Oklahoma Scrap Metal Dealers Act shall
preclude the Department from seeking penalties in district court in
the maximum amount allowed by law. The assessment of penalties in
an administrative enforcement proceeding shall not prevent the
subsequent assessment by a court of the maximum civil or criminal
penalties for violations of the Oklahoma Scrap Metal Dealers Act and
rules promulgated pursuant thereto.
E. Any person assessed an administrative or civil penalty may
be required to pay, in addition to the penalty amount and interest
thereon, attorney fees and costs associated with the collection of
the penalties.
F. If any person refuses, denies or interferes with any right
of access, the Department shall have the right to apply to and
obtain from a district court an administrative or other warrant as
necessary to enforce the right of access and inspection.
G. If the Department finds any person operating as a scrap
metal dealer without a license, the Department Oklahoma Department
of Agriculture, Food and Forestry (ODAFAF) shall have the authority
to tag as "Not For Commercial Use" any weight or measure utilized by
the scrap metal dealer.
SECTION 8. RECODIFICATION 2 O.S. 2021, Section 11-90,
shall be recodified as Section 2-7-501 of Title 27A of the Oklahoma
Statutes, unless there is created a duplication in numbering.
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SECTION 9. RECODIFICATION 2 O.S. 2021, Sections 11-91,
11-92, 11-93, and 11-94, as amended by Sections 1 through 4 of this
act, shall be recodified as Sections 2-7-502, 2-7-503, 2-7-504, and
2-7-505 of Title 27A of the Oklahoma Statutes, unless there is
created a duplication in numbering.
SECTION 10. RECODIFICATION 2 O.S. 2021, Sections 11-95
and 11-96 shall be recodified as Sections 2-7-506 and 2-7-507 of
Title 27A of the Oklahoma Statutes, unless there is created a
duplication in numbering.
SECTION 11. RECODIFICATION 2 O.S. 2021, Sections 11-97,
11-98, and 11-99, as amended by Section 5, 6, and 7 of this act,
shall be recodified as Section 2-7-508, 2-7-509, and 2-7-510 of
Title 27A of the Oklahoma Statutes, unless there is created a
duplication in numbering.
SECTION 12. This act shall become effective November 1, 2026.
60-2-15655 JL 01/14/26