Kansas Passes Major Metal Theft Overhaul – Almost Unnoticed

On June 12, Kansas Governor Sam Brownback signed into law a bill that gives the state attorney general exclusive authority to establish a statewide electronic database for scrap metal sales.  The final legislation was supported by ReMA members in the state to demonstrate how they are part of the solution to metals theft.  The agreement followed more than a year of difficult negotiations led by Sedgewick County District Attorney Marc Bennett.  Thanks to the diligent efforts of ReMA members involved, the final bill included preemption language that will repeal the scrap metal laws of all local jurisdictions in the state giving the state attorney general enforcement authority, thus increasing the likelihood of enforcement and putting everyone in the state on an even playing field.

Kansas is the first state to enact a metals theft law of this kind that gives the state attorney general unprecedented oversight of the industry.  State Attorney General Derek Schmidt now holds exclusive jurisdiction and authority over all matters involving the implementation, administration, and enforcement of the metals theft law.  Furthermore, the Attorney General is directed to not only establish a state database for electronic reporting, but must impose and collect specific fees from all recycling yards in the state to pay for the system.  The fees were outlined in a fiscal note submitted to the legislature earlier this year by the Attorney General estimating a fee of anywhere from $500 - $1500 per recycling yard to pay for a third-party private database vendor along with two additional staff for the administration and collection of the new fees. The electronic reporting provision becomes effective and must be in operation by July 1, 2016.

The progression of this legislation serves as an ideal lesson for ReMA members on the importance of vigilance and political relationships.  What began as a single person crusade out of Wichita ultimately became state law within just a few years. Few ReMA members were involved in the initial talks since it was viewed as a local city and county matter.  Initial efforts from Wichita law enforcement last year were defeated but it didn’t stop the momentum, which was partly fueled with active efforts behind the scenes by Leads Online and its law enforcement supporters in Wichita.  As reported by those ReMA members involved, it became clear early on in this legislative session that electronic reporting was inevitable and non-negotiable.  The only hope was to negotiate favorable provisions on other matters such as tag and hold and insist on statewide preemption and increased enforcement. 

In politics, however, even though everyone believes there is a final agreement doesn’t make it a done deal.  This legislation almost died as a result of political maneuvering unrelated to the metals theft issue.  In a last minute move tied to a fight over the state budget, Kansas legislators passed the bill using a procedural tactic to save it from oblivion. Furthermore, in the early stages of this process, state law enforcement had only consulted with Leads Online on costs and implementation leaving many to believe that system was the only option available.  Since that time, ReMA has had the opportunity to educate the Kansas attorney general about the industry’s concerns with third party reporting and possible alternatives available as his office moves to implement the new law. But, as the saying goes, “it ain’t over until it’s over” and so ReMA members must remain vigilant as this law is implemented, maintaining and forging new relationships with policymakers along with the law enforcement community to ensure it is all implemented as envisioned.  ISRI has a robust comprehensive materials theft outreach program that will be available to assist Kansas members in the process.

As for the new law,  while the electronic reporting provisions will not take effect until the database system is selected and implemented, starting July 1 of this year, recyclers will have to follow amended recordkeeping, exemption, payment restriction, documentation, registration, and penalty provisions; the reporting requirements will be established once the database is created. ReMA is preparing an updated summary for the new law; you can view this and other state resources on the State Specific Policy Resources page (member login required).  For information on the Kansas law or ISRI’s materials theft outreach programs, contact Danielle Waterfield.