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H 5599

Nonferrous metals

2025-2026 Regular Session Introduced by Bill Herbkersman and 2 co-sponsors

The bill tightens regulation of nonferrous metal recyclers by requiring permits, background checks, strict recordkeeping, cash limits, and enhanced penalties for knowing or suspect

Referred to Committee on Labor, Commerce and Industry
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Bill Summary · H 5599

Summary of Bill H 5599 (Session 2025-2026) – South Carolina: Nonferrous Metals

Purpose and intent

  • The bill amends Section 16-17-680 of the South Carolina Code to tighten regulation of secondary metals recyclers that purchase nonferrous metals.
  • Primary aims:
    • Require affirmative determinations of a recycler’s prior convictions.
    • Create additional offenses related to knowledge or reasonable suspicion of stolen nonferrous metals.
    • Establish enhanced penalties for listed violations.
  • The changes are designed to deter illicit handling of stolen metals, improve regulatory oversight, and support law enforcement in tracking and penalizing noncompliant recyclers.

Key provisions and changes

Permitting and background checks (Section 16-17-680(B))

  • Recyclers must obtain a permit to purchase nonferrous metals.
  • Employee purchases: Employees acting within the recycler’s scope do not need individual permits.
  • Location-based permits:
    • Fixed-site purchases: Permits issued by the sheriff where the site is located.
    • Non-fixed (mobile) purchases: Permits issued by the sheriff in each county where purchases occur.
  • Affirmative background determination: Sheriffs must affirmatively determine whether the applicant (the recycler) has been convicted under:
    • Section 16-11-523 (general prior related offenses) or
    • This section (16-17-680). If convicted, the sheriff must deny the permit.
  • Fees and recordkeeping:
    • Sheriff may charge a $200 permit fee.
    • Sheriffs must maintain permit records (issuance date, name, address, etc.).
    • Permits are valid for 24 months.
    • Permits can be denied, suspended, or revoked for inaccurate information or failure to comply.

Prohibited purchases and recordkeeping (Section 16-17-680(D))

  • Unlawful to purchase nonferrous metals for recycling from sellers unless the purchaser is a valid permit holder and the seller has a valid permit to transport/sell.
  • Recordkeeping: Recyclers must maintain a detailed purchase record, including:
    • Date, seller name/address, seller ID copies, vehicle license plate (if available), seller photo (or video if used in lieu of a photo), description/weight/value, amount paid, and a signed statement of rightful ownership.
    • Sellers’ photos can be reused with annual updates; videos can substitute photos if kept for at least 120 days.
    • Records may be kept electronically but must be legible and accessible to law enforcement on request.
  • 1-year retention for all records and metals.

Cash transaction restrictions

  • No cash payments for purchases of copper, catalytic converters, or beer kegs totaling $25 or more.
  • Such payments must be made by check payable to the seller; cashing/checking restrictions apply.
  • No more than one cash transaction per day per seller for these items.

On-site signage

  • Fixed-site recyclers must display a large notice (20" x 30") stating that copper/nonferrous metals may not be purchased without the seller having a specified license or permit to transport/sell, or presenting a valid permit.

Penalties and enforcement

  • Offenses and penalties are tiered:
    • First offense: misdemeanor; fine $200–$300 or up to 30 days imprisonment.
    • Second offense: misdemeanor; fine $400–$500 or up to 1 year imprisonment.
    • Third or subsequent offense: misdemeanor; fine up to $1,000 or up to 3 years imprisonment (10-year look-back for prior offenses).
  • If a permit holder is convicted, the permit must be revoked; notice requirements to sheriffs within 10 days of conviction. Failure to notify is a separate misdemeanor; intentional failure to notify (to evade penalties) can be a felony (up to 5 years).
  • Inspection obstruction penalties: felony if a recycler obstructs inspections or falsifies records.

Knowledge of stolen metals (Sections 16-17-680(D)(8) and 16-17-680(D)(9))

  • Knowledge that metals are stolen makes the recycler a felon with penalties up to 5 years or fines at the court’s discretion.
  • Reasonable suspicion triggers a duty to:
    • Not complete the purchase.
    • Resolve suspicion with additional verification (e.g., contact seller’s source, obtain documentation).
    • If suspicion persists, place metals on a self-imposed 15-day hold and notify law enforcement and the sheriff, keeping records for inspection.

Anti-circumvention provisions

  • Prohibits structured cash transactions designed to evade limits (e.g., splitting loads, multiple cash deals under different names, or coordination to bypass check payments).
  • If reasonable suspicion exists that metals are stolen, penalties can be enhanced.

Who and what would be affected

  • Primary: Secondary metals recyclers purchasing nonferrous metals (copper, aluminum, etc.) in South Carolina.
  • Affected parties include:
    • Recycler operators and their employees (permitting, recordkeeping, and compliance obligations).
    • County sheriffs (issuing permits, conducting background checks, enforcing provisions, and collecting fees).
    • Law enforcement and regulatory agencies (inspection, records access, and oversight).
    • Sellers of nonferrous metals (subject to seller permitting requirements and verification processes).
  • The bill also impacts transactions involving copper, catalytic converters, and beer kegs specifically due to cash payment restrictions.

Procedural and timeline aspects

  • Effective date: Upon gubernatorial approval.
  • Permit duration: 24 months.
  • Records must be retained for 1 year from purchase.
  • Signage requirement applies to fixed-site locations.
  • Transitional implications: New permit determinations and compliance expectations begin upon enactment; existing actions remain governed by prior law unless expressly changed.

Additional notes

  • The bill introduces affirmative determinations by sheriffs on past convictions, tightening eligibility for permits.
  • It expands penalties and creates new offenses tied to knowledge or reasonable suspicion of stolen metals.
  • The act includes standard severability, repeal, and gubernatorial enactment language typical for comprehensive regulatory reforms.

Compiled from official sources — confirm details with the bill’s official record.

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