Scrap Metal Recycling Laws by State | BuyScrapSoftware
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- Scrap Metal Recycling Laws by State
Know the Law — Stay Protected ayments
Scrap metal recycling laws vary by state — and failing to comply can cost your business in fines, legal trouble, or even license suspension.
That’s why we created this guide. Below, you’ll find a breakdown of scrap recycling laws by state and how BuyScrapSoftware can help your yard stay compliant in every location.
How BuyScrapSoftware Helps
What We Cover for Each State
***Laws are changing rapidly and everything listed below may not be everything your state requires***
For every state, we provide:
- Required ID verification laws
- Thumbprint or signature capture laws
- Photo/video recording mandates
- Payment hold requirements
- Daily reporting (e.g., LeadsOnline)
- Check vs. cash restrictions
- Licensing/permit requirements
- How our software supports these laws
Alabama
(General rules similar nationwide: valid photo ID required, seller affidavit, minimum recordkeeping.) Features such as ID capture and digital ownership statements in scrap yard software help ensure complete documentation.
Arkansas
- Seller must present valid photo ID, thumbprint, snapshot of material and vehicle.
- Seven-day tag-and-hold can be imposed by law enforcement.
- One year minimum retention of records.
- Compliance support: Scrap metal buying software offers built-in photo/video capture, record logs, fingerprint storage, and tag-and-hold alert management
California
- Requires a copy of driver’s license, thumbprint, vehicle info, and photo of seller.
- Two-year retention of detailed records.
- Payment must be by non-transferable check mailed or picked up after three days unless customer is frequent.
- Also enforces electronic waste rules and the CRV beverage container program.
- Compliance support: This integrated scrap yard software handles ID capture, signature/affidavit prompts, e-waste flagging, CRV fee tracking, and check-payment scheduling.
Colorado
- Requires recordkeeping for two years.
- Five-day tag-and-hold may be required.
- Vehicle scrappers must report to NMVTIS.
- Compliance support: The system logs seller data, vehicle details, supports NMVTIS integration, and schedules hold times as needed
Connecticut
- Two-year record retention including vehicle photos, material description, weight, and seller information.
- Five-day hold for telecom wire unless seller is registered or exempt.
- Compliance support: Scrap metal buying software supports customized holds, seller/photo data capture, and wire-specific restrictions.
Delaware
- Records must include seller photo/vehicle plate and be maintained.
- Immediate reporting to law enforcement mandated.
- Tag-and-hold of seven days unless business seller.
- Compliance support: The software captures seller image, links to vehicle plate recording, triggers immediate reporting, and tracks hold periods.
Florida
- Requires ID copy, fingerprint, seller description, and sworn statement.
- Beer keg purchase has additional proof requirements.
- Compliance support: Digital affidavit prompts, thumbprint scanning, ID capture, and specialty product verification (e.g. kegs). Scrap yard software handles these seamlessly.
Georgia
- Dealers must register annually with the sheriff.
- Recording of vehicle details, seller image, and time-stamped photo of materials is required.
- Purchases prohibited at night (7 p.m.–7 a.m.).
- Compliance support: Software supports sheriff registration tracking, avoids restricted time transactions, and provides image and timestamp logs.
Hawaii
- Purchasing requires seller affidavit of ownership.
- Copper purchases need additional contractor license documentation.
- Check payment mailed to seller address.
- Compliance support: The software enforces affidavit collection, handles contractor-license upload, and automates check-payment workflows.
Idaho
- Records required for transactions exceeding $10, including ID or vehicle plate number.
- Ten-day hold may be required by law enforcement.
- Compliance support: Scrap metal buying software captures ID or vehicle plate, tracks holdings, and stores records securely per state rules
Illinois
- Keep transaction records for three years when purchases exceed $100, and one year for beer kegs.
- Purchases of air conditioners, copper, or coils over $100 must be paid by nontransferable check.
- Must collect seller’s driver’s license copy and a photograph at time of purchase.
- How scrap yard software supports it: Automated photo capture, ID scanning, noncash payment workflows, and long-term record retention.
Indiana
- Keep all records for two years, including a copy of driver’s license, seller photo, and material photo.
- Five-business-day tag-and-hold may be requested by law enforcement.
- Compliance support:Scrap metal buying software logs seller details, materials, photos, and tracks holds.
Iowa
- Retain records for at least one year, including driver’s license copy.
- Payments must be made by check or electronic transfer (unless total sale is under $50, or $75 for catalytic converters, or seller is a registered commercial vendor).
- Compliance support: ID capture, restricted cash-payment logic, and documentation workflows.
Kansas
- Retain records for two years including seller’s driver’s license copy and fingerprint.
- Follow 30-day tag-and-hold policy when notified by law enforcement (excluding weekends/holidays).
- Restrictions on accepting melted metals without signed supplier affidavit.
- Compliance support: Scrap yard software manages fingerprint capture, holds calendar, signed waivers, and audit logs.
Kentucky
- Records must be kept for two years, including driver’s license copy and video surveillance at intake.
- Three-day hold standard, extendable up to 30 days by authorities.
- Prohibited cash for restricted materials (utilities, kegs, HVAC, catalytic converters).
- Compliance support:Software enforces video capture, automated holds, restricted-item logic, and exclusion checks.
Louisiana
- Maintain records for three years, though photos and thumbprints retained for one year.
- Cash banned on copper/AC coil purchases; check or payment card issued five business days later.
- Submit electronic report daily to law enforcement and local authorities.
- Compliance support:ID/photo/thumbprint collection, delayed check workflows, and built-in reporting interface.
Maine
- Records retention for one year.
- Seven-day tag-and-hold policy when triggered, extendable by authorities.
- Submit electronic report daily to law enforcement and local authorities.
- Compliance support:Scrap metal buying software enforces noncash payments, records retention, and alerts on hold requests.
Maryland
- Licensed dealers must submit electronic transaction reports by 10 a.m. next business day.
- Records retained for one year; law enforcement may impose a 15-day tag-and-hold.
- Purchase of catalytic converters restricted to licensed vendors only.
- Compliance support:Software includes license tracking, next-day reporting module, and converter purchase screening
Massachusetts
- Records retained for two years and transmitted electronically within 48 hours.
- Mandatory 10-day hold when instructed by law enforcement.
- Compliance support:Automated reporting, digital record retention, and hold scheduling logic
Michigan
- One-year retention for all records, including driver’s license copy, fingerprint, vehicle plate, and signed seller affidavit.
- Seven-day hold applies to most nonferrous materials under certain conditions.
- Compliance support: Seller affidavit capture, fingerprint and license data collection, automated hold logic.
Minnesota
- Three-year record-keeping requirement; images/video only for 60 days.
- Must install video surveillance at intake.
- Only noncash payments allowed (check or electronic transfer).
- 30-day hold when law enforcement intervenes (excludes aluminum beverage cans).
- Compliance support: Scrap yard software integrates surveillance capture, photo retention logic, payment method enforcement, and hold timers.
Mississippi
- Two-year record retention including seller photo, metal photo, ID, and vehicle description.
- Cash is prohibited; payments via check or EFT delayed for at least three days.
- Compliance support: Digital photo/photo workflows, delayed payment scheduling, and cash restriction logic.
Missouri
- Records kept for two years and must include driver’s license copy, license plate, material description/weight.
- Purchases over $500 cannot be made in cash.
- 10-day hold minimum enforced.
- Compliance support: ID and vehicle logging, threshold payment enforcement, and hold timer features
Montana
- Records retained for two years, with photo ID unless paid by check.
- Ten-day tag-and-hold applies when notified.
- Compliance support: Photo capture modules, check-based exemptions, and hold scheduling.
Nebraska
- Keep records for one year, including fingerprint for copper or catalytic converter sales.
- Cash prohibited for transactions over $25.
- Compliance support: Fingerprint capture, payment restrictions, and audit logs.
Nevada
- Records must include seller’s photo, driver’s license copy, vehicle description/plate, fingerprint, and video/photo of sale.
- Seven-day hold when required by law enforcement.
- Compliance support: Rich media capture, fingerprint logging, vehicle metadata, and hold alert system.
New Hampshire (quick summary)
- Transaction records with a material description and seller info; hold policy of minimum seven days.
- Some local licensing may apply.
- Compliance support: Material and seller logs plus hold counters, with local jurisdiction flagging
New Hampshire (quick summary)
- Records exceeding $50 or 100 pounds must be kept for five years and include driver’s license copy and material description.
- Five-day tag-and-hold when notified.
- Compliance support: Long-term record retention, ID capture, and hold management.
New Mexico
- Retailers must file transaction data electronically within 48 hours.
- Retain records for one year, include ID copy and seller/material photos.
- Five-day hold on restricted items, extendable by law.
- Compliance support: Integrated 48-hour reporting system, media capture, and hold logic.
New York
- Scrap processors must be licensed locally; records kept for two years, and ID copy collected.
- Tag-and-hold applies to certain items like copper wire, cast metals, and kegs.
- Compliance support: License status tracking, record logging, and specialized hold flagging
North Carolina
- Records must include driver’s license copy, photos/video of seller/material, and must be paid by nontransferable check or transfer (no cash for copper or > $100).
- 15-day tag-and-hold, extendable up to 30 days.
- Compliance support: Media capture, payment rule enforcement, and hold scheduler.
Ohio
- Records retained for one year; photos retained for 60 days.
- Must register annually with Department of Public Safety and submit daily electronic transaction reports.
- Only one catalytic converter purchase per seller per day (exceptions apply).
- Compliance support: Registration alerts, reporting automation, and conversion-limit screening.
Oklahoma
- Dealers must hold a scrap metal license and sales tax permit.
- Records include driver’s license and vehicle description, with 10-day hold for items over 35 pounds.
- Cash prohibited over $25 and restricted materials require check.
- Compliance support: Registration alerts, reporting automation, and conversion-limit screening.
Oregon
- One-year record retention; video surveillance must be kept 30 days.
- Payments by check mailed at least 3 days later.
- Ten-day hold when required.
- Compliance support: Surveillance integration, delayed check issuance, and hold tracking.
Pennsylvania
- Dealers must register with state police every two years.
- Records for purchases over $100 include driver’s license and vehicle plate.
- 48-hour hold standard, plus additional day if law enforcement requests; five-day hold for cable/wire.
- Compliance support: Registration alerts, detailed vehicle logging, and hold scheduling by material type.
Rhode Island
- Licensed annually by the state; keep transaction records with ID copy and material details for two years.
- Three-day hold applies automatically for regulated items.
- Compliance support: License tracking, record logs, and automatic hold triggers.
South Carolina
- Records retained for one year including driver’s license copy and seller photo.
- 15-day hold on request.
- Cash is allowed only below $25 for copper/converters; otherwise payment by check.
- Compliance support: Photo/ID capture, cash threshold control, and hold logic.
Tennessee
- Records and payment tracking for three years, including ID, fingerprint, vehicle plate, and seller photo if ID is unavailable.
- Payment restrictions for copper and converters; five-day hold on voucher-delayed payments.
- Compliance support: Fingerprint capture, voucher workflows, photo fallback protocols, and hold automation.
Texas
- Records for two years; media retention: photos 181 days, videos 91 days.
- Must file electronic transaction report within two business days.
- 72-hour hold standard; up to 60-day hold if law enforcement suspects theft.
- Compliance support: Photo/video logging, delayed hold timers, two-day reporting workflow, and threshold alerts.
Utah
- Records required for one year, including seller’s driver’s license and vehicle plate number or photo/video.
- Recordkeeping may be waived if payment is made by check.
- 60-day hold for suspected stolen materials, and 15-day hold for precious metals.
- How scrap metal buying software helps: Captures seller ID or fingerprints and vehicle info, manages hold periods automatically, and flags precious metals.
Vermont
- Maintain transaction records for five years, including the seller’s vehicle plate number, transaction timestamp, and material description.
- 15-day hold required if ownership cannot be documented.
- How scrap metal buying software helps: Ensures seller data logging and automated hold alerts when proof of ownership is missing.
Virginia
- Retain transaction records for five years, including material description and vehicle plate info; media only required for the first 30 days.
- 5-day hold applies when proprietary materials or restricted items are sold without ownership proof.
- How scrap metal buying software helps: Logs seller and vehicle metadata, retains media per state rules, and automatically triggers hold logic.
Washington
- Dealers must be licensed annually and register scales and operations.
- Records kept for three years, including seller ID, vehicle info, weight and description.
- Fingerprint required if five or more catalytic converters are sold.
- Transactions must be reported within 72 hours.
- How scrap metal buying software helps: Tracks licensing status, logs ID and vehicle data, processes fingerprint captures on threshold items, and automates timely reporting.
West Virginia
- (not in prior batch but includes here if needed) Similar to neighboring states: retention required, holds on certain metals, ID and vehicle capture.
- How software helps: copies of state laws and templates adapted. (Placeholder pending official reference.)
Wisconsin
- Keep records for two years, including seller’s ID, vehicle info, and item description.
- 72-hour hold applies to restricted property pending authority request.
- How scrap metal buying software helps: Captures compliance data, supports hold scheduling, and flags restricted materials.
Wyoming
- (similar pattern: one-year record retention, ID capture, holds on catalysts/copper, cash limits)
- How software helps: Ensures consistent compliance workflows across materials—ID capture, delayed payments, holds.
Alaska
- New metal theft law (HB 305) passed in 2025 requires transaction recordkeeping, seller identification, and authority for law enforcement inspections.
- How scrap metal buying software helps: The system captures IDs, vehicle details, and seller affidavits, and supports on-site compliance checks.
Arizona
- Since 2012, dealers must report scrap metal transactions to the state within 24 hours, collect seller ID, fingerprint, and take photos of the material. Payment cannot occur until later—typically via mailed check or money order.
- How scrap yard software helps: The software logs all compliance data, prompts fingerprint and photo capture, and automates next-day electronic reporting via integration with DPS/LeadsOnline.
North Dakota
- (No major statewide anti-metal theft law as of latest guides.)
- How scrap yard software helps: Template work-flows for ID capture and record logging can still help yards adopt best practices even in absence of a state requirement.
Alabama
- Dealers must keep records for two years of all purchases, restrict cash payments for copper (> $100) and other metals (> $1,000), and hold suspected stolen material for 15 days when law enforcement requests.
- How software helps: Enables cash-limit logic, delayed payment scheduling, and automatic hold triggers.
California (latest amendments)
- AB 476 (2025) adds new documentation: time, amount paid, employee handling the sale, seller’s DOB and address; prohibits purchases from minors. Fines for illegal possession of copper or street-light metals increase up to $10,000.
- How scrap metal buying software helps: Supports expanded intake forms, ownership affidavits, compliance checklists, and audit-ready logs.
Minnesota
- As of January 1, 2025, a state-issued license (costing about $250/year) is required to buy or sell copper wire. Standard theft law requires two- or three-year retention of ID, vehicle, and photo/video records.
- How scrap yard software helps: License management module, ID and media capture, cash/payment rules, and long-term retention logic.
Wyoming (no explicit state law historically)
- While lacking formal statewide metals theft laws as of earlier compliance guides, many yards follow best-practice protocols: ID capture, record logging, holds on catalysts and copper, and cash thresholds.
- How scrap yard software helps: Delivers a turnkey compliance framework adaptable to county-level requirements or future statewide enactments.
Alaska
Under HB 305, which became effective on January 1, 2015 (enacted in 2014), Alaska requires scrap metal dealers to keep detailed records of any in-person transaction worth $100 or more. The log must include the date, time, location, value, seller name, seller address, seller date of birth, vehicle plate number if applicable, a description and weight of materials purchased, plus the identity of the employee conducting the sale. Sellers must sign a written statement affirming legal ownership. Records must be retained for at least four years and must be made available upon request for law enforcement inspection. Notably, HB 305 repealed the requirement for dealers to hold a license from the state Department of Revenue.
How scrap metal buying software helps: It captures all required intake details digitally, including ownership affidavits, stores data for the mandated retention period, and provides inspection-ready audit logs—all without requiring licensing management.
While most of these states have anti-metal theft regulations similar in structure—requiring ID capture, recordkeeping, payment restrictions, and holds—the specific durations and thresholds vary. In many cases, they closely resemble national best practices summarised in sources like ReMA and Recycling Today.
Key Takeaways:
- Most U.S. territories and D.C. follow the same general structure of metal theft laws—ID, affidavit, documented media, restricted cash/use of delayed payment, and holding periods.
- Scrap yard software and scrap metal buying software make it simple to adapt to each jurisdiction, whether fully codified or based on recommended best practices:
- Customizable input forms that mirror local law fields.
- Automated hold logic triggered by flagged materials or government requests.
- Long-term retention storage for media/photo/records.
- Payment restriction workflows and delayed check issuance support.
- Inspection-ready dashboards for audit or law enforcement compliance.