The War on Metal

And he's not alone. Scrap dealers across the state are protesting new regulations that go into effect June 1 requiring, among other things, licensing, detailed documentation on all items bought and sold and waiting periods that will slow the sale of scrap metal in a time of turbulent prices.

"The law puts Delaware dealers at a competitive disadvantage because there are dealers just over the line in Chester, Pa., who are not subject to that law," said Scott Sherr, president of Diamond State Recycling in Wilmington, the state's largest scrap metal processor.

The law, adopted a year ago, was designed to tighten regulation of scrap metal processors, pawnshops and secondhand dealers to help police stem the flow of stolen goods.

A second law passed in April further tightened regulations on the resale of copper after a slew of thefts this spring at homes, farms and construction sites fueled by the rapid jump in world copper prices.

Violations of the new law are misdemeanors punishable by $10,000 fines and the loss of the dealer's license.

Sherr and Micucio say legislators never visited them before writing the law to see how the business works and assess how the new regulations would hurt.

"They railroaded this through," Sherr said. "We're going back to Legislative Hall and tell them why it won't work."

Police and lawmakers contend the law was needed to make sure dealers keep better records so police would be able to track people who pawned or sold stolen property.

The law also requires that dealers keep metals they buy on hand for 18 days before reselling them, a step police say is needed so stolen materials can be tracked -- and the seller identified -- before they are crushed or melted down.

Every scrap metal processor must specifically state on a form how all copper, silver, gold or brass was acquired. The forms must be kept for a year and provided to police upon request.

Sgt. Joshua Bushweller, a Delaware State Police spokesman, said dealers and processors now must create a record of every transaction, identifying the seller and including a photocopy of a photo ID. The form also includes a line to indicate whether the property was stolen.

"If a criminal walks in and tries to pawn off stolen property, it's highly unlikely that it will be listed as stolen, but they are going to have to provide their information," Bushweller said. "It gives law enforcement a direction to follow. If people are selling property with no criminal intent, they have no need to be worried."

The dealers say the record-keeping burden and holding periods will devastate operations.

Micucio, who says he moves 12,000 tons of scrap metal a month, said complying with the law will keep him bogged down in paperwork and disrupt the flow of his operation.

"We have 300 people a day who come though our facility," he said. "We have traffic backed up to Old Baltimore Pike. Now, I have to take identification, buy a copier and the paper, and hire someone to handle all the paperwork. It's going to cost me another $50,000."