Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Kansas has reinstated a law that requires scrap metal dealers to register with the attorney general’s office. The law’s provisions, which were established in 2015, were suspended in 2017.


Apart from registration certificates issued to scrap dealers who follow this law, the state government will also require scrapyards to report any suspicious transactions to the Kansas Bureau of Investigation (KBI) through an online portal starting July 1. The processes are being established to reduce scrap metal theft in the state.


The House Bill 2248 sets registrations fees at $500 per location, requires identification information logged from the person selling regulated scrap metal as well as photos of the items sold. Unregistered scrap buyers will be subject to fines.


Per the National Conference of State Legislatures (NCSL) 49 states had laws to safeguard against metal theft or suspicious scrap metal transactions with a big drive for legislation in 2013. Various state bills in the past have increased documentation or seller identification requirements, increased licensing requirement for scrap metal dealers, minimized cash transactions and strengthened penalties for violations. 


The US Department of Energy estimates that metal theft and resulting losses and repair costs to businesses are about $1bn annually. Metal theft has also resulted in injuries to people in malfunctioning sites. 

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