Hawaii Metal Scrap Statute
The State Metals Theft Laws summaries are not intended to provide or be relied as a legal advice. This material is provided to serve as a reasonable compilation of the most current state scrap laws and is intended to be a resource or supplement to, and provide ideas for, compliance with all applicable laws. The ISRI State Scrap Laws are subject to change and readers should visit http://www.isri.org/metalstheftdb to make certain they are reading the most recent version of ISRI's summaries of the State Metals Theft Laws
- Materials Covered and Other Definitions
- Exemptions
- License
- Recordkeeping
- Copper or Beer Kegs Additional Recordkeeping
- Retention
- Inspection
- Reporting
- Payment Restriction
- Penalties
Please Note: Hawaii Chapter 445 Part X covers Scrap requirements; Chapter 289 covers used motor vehicles and their parts and accessories.
Materials Covered and Other Definitions
"Scrap" means any secondhand or used metal except Used Motor Vehicle Parts.
- "Beer Keg" means a metal container used to hold five gallons or more of liquid that is stamped, engraved, stenciled, or otherwise marked with the name of a brewery manufacturer. Excludes deposit beverage containers.
- "Copper" means copper in all different forms, including tubing, sheets (includes plates), gutters, down spouts, bars, bare wire or cable, insulated wire or cable, and aluminum/copper coil used in air conditioning and refrigeration.
"Used Motor Vehicle Part or Accessory" means a motor vehicle part or motor vehicle accessory which has been the subject of prior sale at retail, either individually or attached to a motor vehicle as a component part or accessory thereof.
"Scrap Dealer" means any person engaged in the business of buying, selling, or dealing in scrap, or any person operating, carrying on, conducting, or maintaining a scrap yard. "Scrap yard" means any yard, plot, space, enclosure, building, or any other place where scrap is collected, stored, gathered together, and kept.
Exemptions
Public Utilities are exempt from the Recordkeeping and Copper and Beer Kegs Additional Recordkeeping provisions.
License
Any Scrap Dealer shall be licensed with the Treasurer. The annual license fee shall be $10. A license shall designate the business location and the licensee's name, address, general excise tax license number, and any other identifying information required.
Any person licensed under Section 289 (Used Motor Vehicle Parts) or Section 445-171 (Secondhand Dealers) need not pay an additional licensing fee, but must obtain a Scrap Dealer license and follow the Scrap Dealer provisions when acting as a Scrap Dealer.
Recordkeeping
A Scrap Dealer purchasing Scrap within Hawaii shall obtain a signed statement from the Seller with the following:
- Statement that the Seller has the lawful right to sell and dispose of the Scrap;
- Seller's name, business or residence address, and occupation;
- A description, including serial numbers and other identifying marks, when practical;
- The amount the Seller received;
- The Date, Time, and Place of the sale;
- The license number of any vehicle used to deliver the Scrap.
Copper or Beer Kegs Additional Recordkeeping
For Copper or Beer Kegs, in whole or in part, a Scrap Dealer must also obtain the following:
- A photograph of the copper or beer keg;
- A photograph of the Seller;
- A copy of the Seller's valid federal or state issued photo ID card or license
Either a copy of the Seller's receipt for acquiring the item or a notarized declaration from the Seller. The receipt or notarized declaration must include the following:
- The exact item offered for sale;
- Who issued the receipt, or for a notarized declaration, who sold or otherwise transferred the item to the Seller;
- The date of sale of the item (prior to being offered to the Scrap Dealer); and
- The price, if any, when obtained by the Seller;
Retention
A Scrap Dealer shall retain records at their place of business for 2 years after the purchase.
Inspection
Records may be examined at any time by the Treasurer, the chief of police, the Attorney General, the prosecuting attorney, or their designees.
Reporting
For Copper or Beer Kegs, if a Seller does not provide a receipt or notarized declaration the Scrap Dealer shall not purchase the item and shall report the attempted sale to the police.
Payment Restriction
No cash payments for Copper. Payment for Copper must be by check payable to the Seller, mailed to the address on the Seller's valid photo ID or picked up personally by the Seller at the Scrap Dealer's place of business.
Penalties
Persons violating the Scrap Dealer provisions or who falsify a statement required by the Recordkeeping provisions shall be guilty of a misdemeanor and sentenced in accordance with Chapter 706, but with a minimum penalty of:
- 1st offense: $1,000 fine;
- 2nd offense: $3,000 fine;
- 3rd or subsequent: $5,000 fine and 6 months suspension of the Scrap Dealer's license. If the offense occurs within a 5 year period of two prior offenses, the Scrap Dealer's license shall be revoked.