Two Denver City Council members have drafted a bill that would more heavily regulate the scrap metal business.
The city has experienced a spike in scrap metal thefts, according to council member Darrell Watson. Watson held a virtual meeting last week on the issue. After the city experienced a similar spike in catalytic converter thefts and decided to regulate that industry, thefts of the converters went down, Watson said, adding that proves regulation works.
The new rules would require those selling scrap to a dealer to show identification. Current law only requires that the identity of the seller of the scrap be recorded by the scrap metal yard. The new law would require scrap metal dealers to make a video recording of the front and back of a government identification card and keep that information on file.
Watson conceded there are concerns about how the new law would affect “the poor.” In particular, people experiencing homelessness often sell scrap at scrap yards. Many people experiencing homelessness have had their identification lost or stolen, however.
Law would not apply to aluminum cans
Watson said this law does not apply to aluminum cans, which he argued is the most common recyclable scrapped by the poor. The law only applies to copper, brass and aluminum such as beer kegs, Watson said. Those aren't things you find in trash bins, he said.
Sellers also would be required to sign an affidavit saying they obtained the metals lawfully. The city has had several high-profile thefts of scrap metal. Last month, copper was stolen from two EV charging stations at Scheitler Recreation Cener, Denverite reported. The theft of $120 worth of copper caused $50,000 damage to the charging stations, according to Denverite.
Most scrap metal thefts occur in council districts 8 and 9
According to a presentation by the Department of Excise and Licenses, from 2018 to 2025 more than 2,173 thefts of scrap metal occurred. Council District 8, which hosts the majority of the city’s homeless shelters and homeless hotels, experienced the most thefts, followed by Watson’s District 9. The bill is co-sponsored by council member Flor Alvidrez of District 7.
Watson said at one construction site, workers installing copper wire had it stolen as soon as they put it in. "Someone was pulling the copper out at the same time."
The new regulations still must be presented at commitee meetings and approved twice by the City Council to become law.