November/December 2013
State, county, and municipal officials can put you out of business with misguided laws and regulations. Build relationships with them and educate them about the industry to get a stronger voice in the policymaking process.
By Diana Mota
A representative government—at least in theory—means that individuals who hold office represent the will of the people who elected them. It provides citizens with a voice, and yet many people don’t use their voice to ensure their elected officials know what is important to them. “We need to talk to our representatives,” says Steve Levetan, senior vice president of Pull-A-Part (Atlanta), which operates in 12 states. “They can’t represent us if we don’t tell them what we want.” Recyclers who don’t develop relationships with state and local officials can find themselves fighting uphill battles just to operate their business or, worse, have their doors legislated shut, says Rose Mock, president and owner of Allied Scrap Processors (Lakeland, Fla.). “They pass or don’t pass legislation or regulations that affect our businesses.”
The wave of metal theft legislation that has washed over the country has highlighted the importance of working with government officials, says Josh Joseph, vice president of Muskingum Iron and Metal Co. (Zanesville, Ohio). In 2005 and 2006, as reports of metal theft increased, city officials in Columbus, Ohio, wanted to heavily regulate, if not completely outlaw, scrapyards in the city, Joseph says. As a result, Columbus scrapyard leaders began meeting with the city officials, state legislators, and other interested parties—including representatives from the utility companies, farm bureau, railroads, the U.S. Department of Homeland Security, and phone companies—in 2007, he says. Initial meetings were tense because these officials didn’t understand what scrapyards do or how they operate, Joseph recalls. They assumed recyclers benefit from purchasing stolen goods. After initial introductions and several yard tours, “they began to understand our relevance and position as a part of the solution to metals theft,” Joseph says. Those on both sides developed a mutual respect and good working relationship, he says. “As soon as [the legislators and city officials] realized the role we play in the economy and that we are legitimate businesses, we ultimately were able to come up with a common-sense, practical metal-theft law that, if enforced, should make a dent in metal theft.” Now, when Ohio officials need a scrap dealer’s perspective, “it’s natural for them to call me,” Joseph says.
For successes such as this to occur, scrap recyclers must first develop relationships with policymakers by reaching out to them, offering support, and working with them to find solutions to state and community problems, say the sources interviewed for this story. “The better presence and reputation our industry has with state and local government, the better position we’ll have at the forefront” of any issue, Joseph says. Strong relationships are the key to success in the scrap business and in politics, says Jeremy Miller, chief financial officer of Wm. Miller Scrap Iron & Metal Co. (Winona, Minn.). He should know—he has served as a Minnesota senator since 2010.
Whom Should You Target?
Because your state and local policymakers were elected to represent you, when you have a concern or want to build a relationship, “it makes sense to start with those who represent the districts where you work and live,” says Minda McGonagle, a lobbyist for a group of New Mexico scrap metal processors. Reaching out to policymakers can seem intimidating, especially if you don’t know them, says Eva Shine, business manager of Shine Bros. Corp. (Spencer, Iowa) and immediate past president of ISRI’s Northwest Chapter. “You just have to remember they’re just people. They have families and run businesses just like you do.” Mock agrees. “My brother and I are fortunate in that we went to school with a lot of our elected officials. They may have even been to the scrapyard as a kid.”
Also identify and reach out to other policymakers who could influence the outcome of legislation that will affect your business, say Shine and Joseph. As legislation pertaining to the recycling industry moves through the Ohio House of Representatives and Senate, the state’s recyclers meet with legislators who lead the committees with oversight of those bills as well as testify at those committee hearings, Joseph says. It’s essential to work with leaders in both political parties, “no matter what your personal political preferences, to preserve your access and influence,” says Danielle Waterfield, ISRI’s assistant counsel and director of government relations. “If you’re too partisan, that could hurt you.”
At the municipal or county level, “you always want to be on good terms” with those officials, too, Waterfield says. “Local governing boards and councils are very powerful when it comes to regulating local activities, so it’s important to regularly attend meetings and participate to make sure your business interests are protected.” Further, local governing bodies appoint individuals to environmental planning commissions, zoning boards, or similar entities that could affect your operations, McGonagle says. “What city officials think of you extends to the people they appointed.”
Pull-A-Part meets with local council members or commissioners during the titling process of a new facility, Levetan says. “We help them understand who we are, what we do, and dispel any myths they might have about our business. The images that go through people’s minds [about auto salvage yards] are often not the prettiest picture.” The company also offers officials tours of one of its open facilities, he notes, and it uses videos and testimonials from policymakers in other jurisdictions whom the officials can contact as references. “That’s one reason why it’s important to do what you say you’re going to do,” Levetan says. “You never know when you might need that person’s endorsement.” After a facility is open for a while, “I’ll go back and ask [local officials], ‘How are we doing? Are there any issues?’”
Some recyclers say they’ve had mixed results with local politicians, however. “We tried to cultivate a relationship with the mayor by helping with his campaign,” says Mark Lewon, president of operations for Utah Metal Works (Salt Lake City) and ReMA vice chair. That relationship didn’t help, however, when a problem arose between the company and the city, he says. “We had to sue to get results.” Now, “we spend time with [city officials] only when a company-specific issue comes up,” Lewon says.
For the most part, “local politics is about being a good neighbor,” says Tony White, general manager of Northern Metal Recycling (St. Paul, Minn.) and ISRI’s Northwest Chapter president. “It’s more about doing things the right way” to avoid confrontation. Along those lines, Charleston Steel & Metal Co. (Charleston, S.C.) sustains its municipal relationships by maintaining its property and complying with local laws, says Barry Wolff, the firm’s vice president and general manager and president of the South Carolina Recyclers Association (Columbia, S.C.).
Local politics is more personal, McGonagle points out. “Volunteer and participate in the community as a business and as an individual. The more [elected officials] know you as an integrated part of your community—that’s what’s going to make a difference to them.” For example, Pull-A-Part locations provide end-of-life automobiles for first responders to use for emergency-response training, then they invite elected officials to watch the practices, Levetan says. “It’s a great meet-and-greet opportunity for them.” Actions such as those translate into what local policymakers think of the industry, McGonagle adds. “First they see you, the person; then they see you, the company; and then they see you, the industry.”
Getting Started
It’s important to interact with state and local policymakers in a way that has the greatest positive impact, says Joseph, who recommends face-to-face meetings as much as possible. “Part of the process is to help state and local officials see us as individuals, which will help put a positive face on the industry,” he says.
Once you identify the level of government and the individual officials you’d like to approach, you can simply call them and say you want to meet with them, McGonagle says. Or visit their websites to see if they’re attending a local event, such as a town hall or constituent meeting, which you can attend. During an election year, candidates often will host or attend events to reach out to constituents, she notes. “Find a function, listen to what they say, introduce yourself, and then invite them to come see what you do.”
Statewide business associations often host events such as lobbying days that provide access to policymakers, Shine says. For example, her company attends such events hosted by local chambers of commerce and state business associations where Shine Bros. and its affiliate companies operate. For the past two years, ISRI’s Northwest Chapter has hosted a legislative fly-in with Minnesota lawmakers—similar to ISRI’s national fly-in—and the chapter encourages its members in other states to schedule meetings with or host yard tours for their state policymakers on that day, White says. “We’ve had a lot of success with members in Minnesota going to their state capital and meeting with representatives and senators in their districts.”
Also, check the agendas of community meetings, such as public safety committee or environmental and natural resources council meetings, that might handle issues that affect your business, Levetan says. “Seek out the chair of the committee and develop that relationship.” Mock suggests joining state solid waste trade associations. They provide an opportunity to network and build relationships with local environmental agency officials, she says. The key is to get engaged at different levels, McGonagle says. “Doing one thing one time” is not going to make a difference, she says.
As a legislator, Miller says, it’s “refreshing” to receive a visit, phone call, or e-mail from a constituent. He does not recommend that groups send mass e-mails advocating for or against an issue, however. “Those e-mails aren’t as effective as a personal e-mail or phone call—that absolutely does make a difference.” Lewon says he sometimes visits his legislators wearing his work clothes. “It lets them know that I stopped what I was doing and came straight from my plant because it was important for me to talk with them.”
“Offer to be a resource,” Levetan says. “We often shortchange ourselves” by underestimating our level of expertise. “You don’t have to be an experienced lobbyist; you just need to convey your knowledge on subjects you deal with every day. We know the industry; we know our issues.” Officials want to know what we do for the economy, Joseph says. “It’s about preaching the gospel of the scrap business: We save natural resources, pay taxes, use high-tech capital equipment, and employ lots of people.”
Those interviewed for this article gave further tips:
- Tailor your approach and what you say to your audience. “Do some research so you know where [specific officials] stand on issues,” Shine says.
- Maintain credibility. “Don’t make up an answer to a question if you’re unsure,” Levetan says, and “absolutely, positively tell the truth. If you lose your credibility, you’re dead.”
- Avoid confrontation. If there is an issue where you are confronted with erroneous information or the opposite position, “be gracious, explain the problem, don’t tell them they’re wrong,” McGonagle says. “You can challenge them to think about the issue differently, but you have to be diplomatic. Say, ‘I think there are misunderstandings.’” Patiently take them through the consequences of what they’re doing or planning to do, she says.
Timing Counts
Introduce yourself and your business to your elected officials before you need their support, McGonagle says. “You want to make the same kind of first impression as you do when you meet your future in-laws.” By reaching out ahead of time, they’ll know who you are, what you do, and how you contribute to the community before an issue surfaces, Waterfield says. When one does, “you don’t have to reintroduce yourself, and you can get to the heart of the matter faster,” she says. “Follow up after the meeting with a thank you and [follow through] on any action you promised—such as a yard tour.” Shine agrees with that approach. Constituents don’t build strong relationships with legislators by only talking with them when they need something, she says. As Levetan puts it, “the outcome will be better, and the time and money you spend will be less, by being proactive.” Without an issue pending, it might be difficult to find the motivation to reach out, Miller says. But speaking as a scrap business owner, he says that “it’s in our best interest to educate policymakers about all the good things we’re doing. It’s amazing how many of my legislative colleagues don’t understand what we do in the recycling industry. They might recycle, but they don’t understand the industry.” Although he recuses himself from voting on legislation that pertains to the recycling industry, that doesn’t stop him from advocating for or against such legislation. “I inform my legislative colleagues about the potential risks and downsides” of laws that could have a negative impact, he says.
Because issues can fall through the cracks, Ohio recyclers reach out often, Joseph says. “Constant communication is needed to make a practical difference.” Scrap dealers in Columbus meet monthly with city officials to review issues as they surface, and the chapter’s lobbyist gives the industry a constant presence at the statehouse, he says. In Florida, “we constantly educate officials about what our industry brings to the table,” Mock says. “It’s important to our survival. Our ultimate goal is to have a symbiotic relationship so we can have viable, respected businesses—preferably conflict free.” White estimates he spends up to 15 hours a week on the phone connecting with officials when legislation is pending. Without legislation on the table, he spends about an hour a week maintaining those relationships.
What About the Money?
Fundraising is always a part of relationship-building with legislators, Joseph says. Donating to a candidate or elected official doesn’t mean everything will go your way every time, Lewon cautions. “You’re not buying votes. Campaign contributions give you access to elected officials so you can get your point across.” Although, he adds, “sometimes they don’t even give you access.” That’s one reason the Florida Recyclers Association ties monetary contributions to plant tours, says Mock, FRA’s president. “We don’t give [politicians] money unless they come to a facility.” Ideally, the contribution consists of a check from the tour host as well as one from the association’s political action committee, she says. “We want them to know that we as individuals support them and we as an association support them.”
Attending a fundraising event provides access to policymakers, recyclers say. “Fundraisers are opportunities to meet people in less formal settings,” Levetan says. “You can introduce yourself and use [the event] as a springboard for [inviting the official to] a plant tour.” Fundraisers also have the potential for extra exposure, Mock says. “You’ll often find other officials in attendance because politicians typically support other politicians, so you get to see a lot of people, and they know you’re supporting their party.”
Several recyclers host tours or dinners at their yard for officials. Such events provide opportunities to demonstrate what they’re already required to do under their state laws, they say. All Scrap Metals (Kenner, La.) hosts two seafood dinners each year for law enforcement officers, district attorneys, and state policymakers, says Vincent Costanza, nonferrous operations manager. “When they’re there, we show them how we take documentation” of scrap sellers during each transaction. Tours give them a “bird’s-eye view,” Mock says. “We take them through the [recycling] process and show them the equipment and what the metal looks like when it gets to us. It’s an ‘aha’ moment for them.” Shine agrees. Tours gave “our legislators, who were already supportive, a better understanding of what we do so they could explain [it] to their colleagues,” she says. How often recyclers should invite representatives to their yards depends on what’s happening at the time, Mock says. “We have had about eight people here in the last three months because we’re working on changing the state’s metal theft law.”
Working Together
Mock suggests coordinating outreach efforts with other recyclers—regardless of each company’s size. “We have one company with 26 yards, and that company stands with everyone else in the state, working toward the same goal.” Recyclers in Louisiana learned through experience that it pays to work together, Costanza says. In 2010, a legislator sponsored a bill to restrict all cash payments for scrap metal, he explains. Individually, recyclers contacted legislators in an attempt to stop the bill, he says. “We found we didn’t have a lot of traction that way.” In 2011, about 40 scrapyards formed the Louisiana Recyclers Association and hired a lobbyist. Working together brought clout and credibility to their efforts, he says. “We got a lot more attention when we said collectively how many jobs we create and how much we pay in taxes.” Working with groups such as the state’s sheriffs association and the district attorneys association, as well as other stakeholders, also pays dividends when reaching out to officials, he says. “It helps when you can say, ‘Call Chief So-and-So; hear how we work with them.’ Once legislators saw us as part of the solution, they really came around.” By 2013, Louisiana’s recyclers were successful in getting even more restrictions removed from the legislation, Costanza says.
When metal theft became an issue for Florida lawmakers in 2009, recyclers in the state resurrected the Florida Recyclers Association, Mock says, which had become inactive during the 1990s because there weren’t any pressing issues facing the industry. “This time we’re not going anywhere because we have to stay involved.”
Professional Help
Lobbyists are a valuable resource for groups of recyclers wanting to increase their visibility in the political process, White says. “Although they might not be talking about your issues, they are talking with representatives every day. They already have those relationships.” Lobbyists know legislators and have access, but they might not know the recycling industry, Waterfield points out. Recyclers must communicate regularly with their lobbyists and provide guidance on the practicality and implications of legislative proposals, she says. As Mock puts it, “you have to educate, educate, and educate them about the scrap business.”
A lobbyist can help create a strategy for approaching lawmakers, says Levetan, who worked as a lobbyist for more than 30 years. “Ask for advice. Lobbyists bring a lot of institutional knowledge and experience to the table.” Typically, “lobbyists know more about elected officials than you do,” McGonagle says. “They can help you figure out what’s important to [the officials] and help you with introductions as well as make the most of a meeting—especially if the lobbyist has a good relationship with the legislator.” The Minnesota recyclers’ lobbyists help set agendas and talking points for meetings as well as monitor legislation for issues that might affect the scrap industry, White says.
Further, when you’re facing an especially tense political threat to the industry, lobbyists who have more distance from the issue can serve as your first line of defense with legislators, McGonagle says. “It’s very hard to stay even-keeled when you’re getting attacked. You want your lobbyist to be the one who’s more strident. They can tell your story without emotion and can more rationally and calmly call [politicians] on their arguments.”
In the end, however, don’t forget the lobbyists work for you, Mock says. “You have to monitor them and see results.” Waterfield agrees. “While it is not necessary to be present at every [lobbyist] encounter with a legislator, at the very least, recyclers should expect detailed reports from their lobbyists on what discussions occur on their behalf when they are not in attendance.”
What’s the Payoff?
The more contact you have with policymakers, the better they’ll remember you and the more likely it is they’ll reach out to you when they have a question about an issue that affects the recycling industry such as materials theft, White says. “I’ve had multiple representatives and senators e-mail me directly for input on issues.” White, Levetan, and Joseph say their advocacy for the industry has led to their serving on state or local working groups or subcommittees dealing with issues such as metal theft. If the policymakers don’t hear from us, then “they’re going to get answers from someone else,” White notes. Through educational efforts and the art of compromise, Ohio recyclers have built a “good, collaborative relationship with state and local officials,” Joseph says. “They know as an industry we are hard-working, legitimate businesses. They know it’s not worth our time and energy to skirt the law.” In Minnesota, regular contact and participation with state officials helped recyclers get a metals theft bill they could support, White says. At first the bill only reflected law enforcement’s opinion, he notes. “Now it reflects law enforcement and the industry. We had to compromise a little bit, but eventually we got something the industry could work with.” Lewon recalls an incident in which a victim of metal theft approached his legislator to ask for metal theft legislation. The representative reached out to Lewon, and he and his lobbyist demonstrated that what the person sought was already in the law. “It takes vigilance to catch those kinds of deals,” Lewon says, “but that’s your goal. You want to be invited to the table so you can tell them what works and what doesn’t work.” When an official acknowledges that additional laws aren’t needed, “that’s priceless,” Mock says.
“As much as I dislike hearing, ‘It’s a cost of doing business’—it is a cost of doing business,” Lewon says. Building these relationships “takes time, money, and vigilance.” Engaging in public policy with policymakers is an investment in your business, McGonagle says. “While it can be rewarding and easier than expected, it often feels like buying insurance. You hate paying for it, you hate taking the time for it, but you’re really glad you have it when all hell breaks loose.” With insurance, however, “when something goes wrong, you may have a better chance of getting a payoff,” Lewon says. “If things don’t go your way” in a political battle, “you do question the time you’ve spent, but when your efforts are rewarded, you feel as if you’re making a difference. It isn’t always going to be a slam-dunk, however.”
Mock knows how much work this can seem to be for a small company owner. “You have to run your business, but you can’t be too busy” to get involved, she says. “You have to get your head out of the sand and make reaching out to officials a part of your world. If you’re not willing to do it, then you had better support whoever is.” Mock recalls a Florida scrap dealer who once asked her how long recyclers will have to make these efforts. “I said, ‘Until we’re dead,’ because the industry is always going to have people throwing stones at it; there’s always going to be a rogue dealer; and there’s always going to be some stupid thief. We have to be constantly vigilant.”
Diana Mota is associate editor of Scrap.
ISRI’s State Support
The national ReMA office can provide members, chapters, and their lobbyists resources such as these to aid their state and local efforts:
- Staff expertise on industry issues, including testimony at public hearings or legislative committee meetings, strategy support, and assistance drafting legislation or regulations;
- Information resources that include printed materials, such as talking points and industry fact sheets, and an online clearinghouse of industry information;
- An online legislative and regulatory tracking system—searchable by state, issue, or other parameters—that covers each state individually and highlights nationwide trends and political tactics being employed for and against the industry; and
- Networking opportunities among chapters so members can compare policy strategies and goals and identify trends and activities in other states that might affect them.
ISRI also is raising the industry’s and the association’s profile through participation in and sponsorship of state organizations such as the National Conference of State Legislatures, based in Denver and Washington, D.C.; National Association of Attorneys General (Washington, D.C.); Council of State Governments (Lexington, Ky.); and other organizations such as the Republican State Leadership Committee and the Democratic Legislative Committee, both based in Washington, D.C. “We let [lawmakers] know ReMA is the ‘Voice of the Recycling Industry’ that they can rely upon to provide them with credible information on recycling matters,” says Danielle Waterfield, ISRI’s assistant counsel and director of government relations. “When anything pertaining to recycling comes across their desks, we want them to think of contacting ReMA first and foremost.”
These national efforts complement state lobbying efforts, she says. “We are a resource to the chapters that aims to enhance state policy efforts, not compete with them. … We won’t go into a state uninvited.” When state or local lawmakers—especially new legislators and their staff—contact the ReMA national office, the staff will facilitate meetings and conversations with the appropriate chapter members and the industry’s lobbyists in that state.
Waterfield urges ReMA members active in state and local government relations to contact her to find out how the national ReMA office can help them—or how they can help their peers in other states. “ISRI’s state program helps connect the dots between chapters,” she says. “When we join forces, we are a formidable industry to be reckoned with as opposed to a fractured one left struggling in our respective state silos.”
Contact Waterfield at daniellewaterfield@isri.org or 202/662-8516.
State, county, and municipal officials can put you out of business with misguided laws and regulations. Build relationships with them and educate them about the industry to get a stronger voice in the policymaking process.