(1) (a) Except as otherwise provided in subsection (3) of this section, every owner, keeper, or proprietor of a junk shop, junk store, salvage yard, or junk cart or other vehicle and every collector of or dealer in junk, salvage, or other secondhand property shall keep a book or register detailing all transactions involving commodity metals or detached catalytic converters.
(b) The owner, keeper, proprietor, collector, or dealer shall record the
identification of a seller of commodity metals or detached catalytic converters in
the book or register and the method by which the seller verified the seller’s identity.
The seller shall verify the seller’s identity by one of the following:
(I) A valid Colorado driver’s license;
(II) A valid identification card issued in accordance with section 42-2-302;
(III) A valid driver’s license from another state that contains a picture
identification;
(IV) A valid military identification card;
(V) A valid United States passport; or
(VI) A valid alien registration card.
(VII) (Deleted by amendment, L. 2011, (HB 11-1130), ch. 106, p. 330, § 1,
effective April 13, 2011.)
(c) The owner, keeper, proprietor, collector, or dealer shall require the seller
of a commodity metal or detached catalytic converter to provide for the book or
register:
(I) A signed affidavit, sworn and affirmed under penalty of law, that the seller
is the owner of the commodity metal or detached catalytic converter or is otherwise
entitled to sell the commodity metal or detached catalytic converter. The owner,
keeper, proprietor, collector, or dealer shall provide the affidavit form to the seller.
(II) The license plate number and description of the vehicle or conveyance, if
any, in which the commodity metal or detached catalytic converter was delivered.
(d) The owner, keeper, proprietor, collector, or dealer shall include the
following in the book or register:
(I) The date and place of each purchase of the commodity metal or detached
catalytic converter; and
(II) The description and quantity of the commodity metal or detached
catalytic converter purchased.
(e) The book or register shall be made available to any peace officer for
inspection at any reasonable time.
(1.3) (a) A purchaser of commodity metals or detached catalytic converters
shall:
(I) Sign up with the scrap theft alert system maintained by the Institute of
Scrap Recycling Industries, Incorporated, or its successor organization, to receive
alerts regarding thefts of commodity metals or detached catalytic converters in the
purchaser’s geographic area;
(II) Download and maintain the scrap metal theft alerts generated by the
scrap theft alert system;
(III) Use the alerts to identify potentially stolen commodity metals or
detached catalytic converters, including training the purchaser’s employees to use
the alerts during the purchaser’s daily operations.
(b) A purchaser of commodity metals or detached catalytic converters shall
maintain for ninety days copies of any theft alerts received and downloaded
pursuant to subsection (1.3)(a) of this section. A purchaser shall also maintain
documentation that the purchaser educates employees about, and provides to
employees, scrap theft alerts.
(1.5) (a) An owner, keeper, proprietor, collector, or dealer is permitted to pay
a seller in cash for any commodity metal or detached catalytic converter
transaction of three hundred dollars or less.
(b) If the transaction costs more than three hundred dollars, the owner,
keeper, proprietor, collector, or dealer shall pay the seller of a commodity metal or
detached catalytic converter by check unless the seller is paid by means of any
process in which a picture of the seller is taken when the money is paid.
(2) Except as otherwise provided in subsection (3) of this section, the owner,
keeper, proprietor, collector, or dealer of any commodity metal or detached
catalytic converter shall make a digital photographic record, video record, or other
record that identifies the seller and the commodity metal or detached catalytic
converter that the seller is selling. The digital photographic record, video record, or
other record format shall be retained for one hundred eighty days, and the owner
shall permit a law enforcement officer to make inspections of the record.
(3) The following transactions and materials are exempt from the
requirements specified in subsections (1) and (2) of this section:
(a) Any materials purchased from a regulated public utility or an original
manufacturer of scrap or industrially generated scrap;
(b) The purchase of recyclable food and beverage containers from any
source; except that, for purposes of this exemption, a metal beer keg suitable for
reuse shall not be considered a recyclable beverage container;
(c) Any scrap that is involved in a transaction between dealers or
governmental entities.
(d) (Deleted by amendment, L. 2007, p. 759, §1, effective July 1, 2007.)
(e) (Deleted by amendment, L. 2011, (HB 11-1130), ch. 106, p. 330, § 1, effective
April 13, 2011.)
(4) The information entered in the book or register, as provided in subsection
(1) of this section, need not be kept for a period longer than three years after the
date of purchase of the commodity metal or detached catalytic converter.
(5) A person who violates subsection (1) of this section by failing to keep a
book or register, any person who knowingly gives false information with respect to
the information required to be maintained in the book or register provided for in
subsection (1) of this section, and any person who violates subsection (1.3), (1.5), or
(2) of this section commits:
(a) A petty offense if the amount is less than three hundred dollars;
(b) A class 2 misdemeanor if the amount is three hundred dollars or more but
less than one thousand dollars;
(c) A class 1 misdemeanor if the amount is one thousand dollars or more but
less than two thousand dollars;
(d) A class 6 felony if the amount is two thousand dollars or more but less
than five thousand dollars;
(e) A class 5 felony if the amount is five thousand dollars or more but less
than twenty thousand dollars;
(f) A class 4 felony if the amount is twenty thousand dollars or more but less
than one hundred thousand dollars;
(g) A class 3 felony if the amount is one hundred thousand dollars or more
but less than one million dollars; and
(h) A class 2 felony if the amount is one million dollars or more.
(6) There is a rebuttable presumption that metal purchased by a dealer for
the purpose of recycling is a commodity metal if the commodity metal has a value
of fifty cents per pound or greater for purposes of recycling the commodity metal.
(7) This section shall not apply to a person or entity that does not provide
remuneration for commodity metals collected in drop-off curbside containers or at
materials recovery sites.
(8) As used in this section, unless the context otherwise requires:
(a) (Deleted by amendment, L. 2007, p. 759, § 1, effective July 1, 2007.)
(a.5) Applicable facility means dealers, owners, keepers, or proprietors of a
junk shop, junk store, salvage yard, or other secondhand property.
(b) Book or register means any written or electronic record of transactions
kept by any owner, keeper, proprietor, collector, or dealer, including sequentially
numbered receipts containing the information required by subsection (1) of this
section.
(b.5) Commodity metal means copper; a copper alloy, such as bronze or
brass; or aluminum. Commodity metal does not include precious metals, such as
gold, silver, or platinum.
(c) (Deleted by amendment, L. 2007, p. 759, § 1, effective July 1, 2007.)
(d) Dealer means any person, business, or entity that buys, sells, or
distributes, for the purpose of recycling, processing, or smelting, any commodity
metal or detached catalytic converter on a wholesale basis. For the purposes of this
subsection (8)(d), a transaction between a dealer and a motor vehicle dealer is not a
wholesale sale.
(e) (Deleted by amendment, L. 2011, (HB 11-1130), ch. 106, p. 330, § 1, effective
April 13, 2011.)
(f) Detached catalytic converter means a post-combustion device that:
(I) Oxidizes hydrocarbons and carbon monoxide gases or reduces oxides of
nitrogen;
(II) Is designed or intended for use as part of an emission control system; and
(III) Was previously installed on a motor vehicle and subsequently removed.
(9) (a) There is hereby created the commodity metals theft task force, also
referred to in this subsection (9) as the task force.
(b) The task force consists of the following ten persons or their designees:
(I) The chief of the Colorado state patrol;
(II) A sheriff appointed by a Colorado sheriffs’ association;
(III) A municipal police chief appointed by the Colorado association of chiefs
of police;
(IV) A contractor that uses commodity metals in construction;
(V) A representative of a national trade association or other organization that
represents commodity metals recyclers, such as the institute of scrap recycling
industries, incorporated, or its successor organization or another entity
representing comparable interests;
(VI) A scrap metal dealer located in Colorado who is a member of the
institute of scrap recycling industries, incorporated, or its successor organization;
(VII) A representative of the Colorado municipal league, or its successor
entity;
(VIII) A representative of Colorado counties, incorporated, or its successor
entity;
(IX) A representative of a public utility that uses commodity metals; and
(X) A representative of a railroad company that operates in Colorado.
(c) The task force shall meet on a regular basis, convening at least every
October, to discuss issues related to theft of commodity metals or detached
catalytic converters, including sharing relevant information on theft of scrap metal,
identifying ways in which Colorado’s laws regulating commodity metal and
detached catalytic converter purchases can be improved to reduce theft, and
reviewing any performance problems or communication issues. The task force is
specifically directed to consider:
(I) Possible policies or practices to aid in tracking or apprehending stolen
commodity metals or detached catalytic converters prior to the point of sale in
order to assist law enforcement personnel in theft prevention and recovery of
stolen materials;
(II) Recommendations regarding when and how a commodity metal or
detached catalytic converter purchaser should be required to apprise local law
enforcement authorities if a purchased commodity metal or detached catalytic
converter is a potential match of a commodity metal or detached catalytic
converter reported stolen in the scrap theft alert system; and
(III) The creation and attributes of a civil penalty process for egregious and
repeat violators of the record-keeping requirements of this section.
(d) A member of the task force, as designated by the task force, shall report
annually to the judiciary committees of the house of representatives and the
senate, or any successor committees, regarding the task force’s meetings, findings,
and recommendations.
(e) Members of the task force shall not be compensated for, or reimbursed
for expenses incurred in, attending meetings of the task force.
(f) This subsection (9) is repealed, effective September 1, 2025. Before the
repeal, the commodity metals theft task force, created pursuant to this subsection
(9), shall be reviewed as provided in section 2-3-1203, C.R.S.
(10) (a) The general assembly hereby finds, determines, and declares that:
(I) Thefts of commodity metals and detached catalytic converters jeopardize
the safety and welfare of the public, financially burden taxpayers and industry, and
exhaust law enforcement resources;
(II) Such thefts impact every community in Colorado; and
(III) The regulation of commodity metal or detached catalytic converter
purchases is a matter of statewide concern.
(b) In order to continue the ability of the state to identify causes of
commodity metal and detached catalytic converter theft and provide realistic
solutions to the theft problem, the general assembly encourages law enforcement
authorities in the state to join the scrap theft alert system maintained by the
Institute of Scrap Recycling Industries, Incorporated, or its successor organization,
and to report thefts of commodity metals and detached catalytic converters
occurring within their jurisdictions to this system. The general assembly also
encourages commercial stakeholders affected by commodity metal and detached
catalytic converter theft to sign up for and participate in the scrap theft alert
system.
(11) This section does not apply to detached catalytic converters acquired as
part of a whole motor vehicle transaction in which an auto parts recycler, as defined
in section 42-4-2201 (1), reports the motor vehicle acquisition into the national
motor vehicle title information system, as described in 49 U.S.C. sec. 30504.
(12) (a) The Colorado state patrol shall develop an assessment report for
applicable facilities to identify the level of conformance with the provisions of
subsections (1) to (4) of this section.
(b) On or before July 1, 2023, and each July 1 thereafter, the Colorado state
patrol shall distribute and make available an assessment report for all applicable
facilities. The assessment report must encourage voluntary compliance and provide
education to applicable facilities on the requirements of this section. If an
applicable facility does not comply with the assessment reporting requirements
described in this section, the Colorado state patrol may prompt a law enforcement
inspection. The assessment report must include, at a minimum:
(I) Applicable facility information, such as the type of facility, name, physical
address, mailing address, business contact name, and contact information;
(II) Purchases of commodity metals information, to include the type of book
or register used, forms of seller identity verification, seller documentation used in
the book or register, whether the book or register provides for the date and place of
purchase, description and quantity and availability or actual inspection by a peace
officer; and
(III) Applicable facility recording of commodity metal transactions, to include
the type of metal commodity transaction, use of and employee training on the scrap
theft alert system, maintenance of scrap theft alerts, payment forms to seller, and
form of records kept, including digital, photographic, video, or other records;
(c) On or before August 1, 2023, and each August 1 thereafter, every
applicable facility shall complete and submit the assessment report to the
Colorado state patrol.
(d) On or before December 1, 2023, and each December 1 thereafter, the
Colorado state patrol shall provide a summary of the assessment reports to the
task force and the task force shall consider the report at a meeting required by
subsection (9)(c) of this section.
(13) (a) The Colorado state patrol shall develop an inspection form for use by
state, county, and local authorities to use when inspecting applicable facilities to
provide statewide documentation, consistent with the provisions in subsections (1)
to (4) of this section. The inspection form must include elements contained in the
assessment report, but may further provide information to be used in criminal
investigations.
(b) The Colorado state patrol shall provide standardized training for use by
law enforcement agencies in conducting inspections. This training may be in
person, via video, or using a written manual.
(c) Upon completion of a law enforcement inspection, the law enforcement
agency shall submit a copy of the inspection form to the Colorado state patrol
within two weeks after completing the inspection.
(d) The Colorado state patrol shall provide a summary report of all statewide
inspections to the task force and the task force shall consider the report at a
meeting required by subsection (9)(c) of this section.
L. 75: Entire section added, p. 641, § 1, effective June 20. L. 90: Entire section amended, p. 997, § 1, effective April 3. L. 2007: Entire section amended, p. 759, § 1, effective July 1. L. 2011: (1)(b)(V), (1)(b)(VI), (1)(b)(VII), (2), (3)(e), (5), (8)(b.5), and (8)(e) amended and (1.3), (1.5), (9), and (10) added, (HB 11-1130), ch. 106, p. 330, § 1, effective April 13. L. 2016: (8)(b.5), (9)(f), and (10)(b) amended, (HB 16-1182), ch. 74, p. 195, § 1, effective April 12. L. 2021: (5) amended, (SB 21-271), ch. 462, p. 3214, § 362, effective March 1, 2022. L. 2022: (1)(a), IP(1)(b), (1)(b)(II), (1)(b)(IV), (1)(b)(VI), (1)(c), (1)(d), IP (1.3)(a), (1.3)(a)(I), (1.3)(a)(III), (1.3)(b), (1.5), (2), (4), (5), IP(8), (8)(b.5), (8)(d), (9)(c), (10)(a)(I), (10)(a)(III), and (10)(b) amended and (8)(f) and (11) added, (SB 22-009), ch. 418, p. 2954, § 1, effective June 7; IP(8) amended and (8)(a.5), (12), and (13) added, (HB 22-1217), ch. 417, p. 2950, § 1, effective June 7.
