1 Particulars of registration of scrap metal dealers

(1) In the Metal Dealers Act 1964 (“the 1964 Act”) section 1 (Registration of scrap
metal dealers) is amended as follows.

(2) In subsection (3) (application for registration)—

(a) 5after “the local authority shall” insert “, having informed the Chief
Officers of any relevant police authority of the application,”;

(b) at end insert “, unless any of the conditions in subsection (3A) apply.”

(3) After subsection (3), insert—

“(3A) The conditions referred to in subsection (3) are—

(a) 10the applicant has been convicted of any offence under this Act;
or

(b) the applicant’s licence is currently subject to conditions; or

(c) a Chief Officer of any relevant police authority is of the opinion
that the applicant is not a fit and proper person to be registered
15as a scrap metal dealer.

(3B) The condition in subsection (3A)(a) shall not apply if—

(a) a court has already considered whether to make a
disqualification order under section 4 of this Act in respect of

the same conviction or convictions, and has decided not to do
so, or the relevant disqualification period has expired;

(b) the conviction or convictions in question are spent for the
purposes of the Rehabilitation of Offenders Act 1974.

(3C) 5If any of the conditions in subsection (3A) apply, the application shall
be listed for hearing at a local magistrates’ court, and both the applicant
and the Chief Officer of any relevant police authority be so notified by
the local authority as soon as practicable and in any event at least 3 days
before the date of the hearing.

(3D) 10If the application has been made during the currency of a
disqualification order made under section 4 of this Act, the clerk of the
magistrates’ court shall refuse to list the matter for hearing and shall
notify the applicant in writing to that effect.

(3E) In any case where a magistrates’ court hears an application under
15section 3 (Special provisions as to records in certain cases) or section 6A
(Closure orders), it shall take account of any representations made by
the parties and by the relevant Chief Officer or officers, and may—

(a) refuse the application; or

(b) grant it with or without one or more conditions of registration
20as are specified in any regulations made by the Secretary of
State under this section;

and may make an order in relation to the costs of the hearing.

(3F) Where such an application is granted following such a hearing, or
following an appeal under subsection (3G), the appropriate particulars
25shall be deemed to have been entered on the register on the day it was
granted.

(3G) In respect of any order made by a magistrates’ court under subsection
(3E)—

(a) there shall be a right of appeal by either party at any time within
307 days of that order to a Crown Court judge sitting alone; and

(b) the Crown Court judge shall have the power to make only such
order or orders as the magistrates were empowered to make at
the hearing under appeal, save that he may also make an order
in relation to costs of the appeal hearing.

(3H) 35In relation to applications and appeals brought under this section, the
Secretary of State may by regulations—

(a) make further provision as to their manner and procedure;

(b) publish guidance to assist the courts in their determination;

(3I) Where an application has been made under subsection (6A), any
40refusal shall not take effect until—

(a) the expiry of 12 months since the applicant’s name was last
entered or renewed on the register, or

(b) 21 days following the date of notification of the refusal of the
application, or

(c) 45the date of the outcome of any appeal against the refusal,

whichever of these three is the latest.

(3J) Where an application is successful, the local authority shall notify the
applicant in writing and such notification shall include the date upon
which the applicant’s particulars were entered upon the register.”

(4) In subsection (4), at end insert—

“(f) 5such proof of the particulars set out at subsections (4)(a), (b) and
(c) as shall be set out in regulations made by the Secretary of
State under this section.”

(5) Subsection (6) is amended as follows—

(a) in paragraph (a), for the words from “three years beginning” to end
10substitute “twelve months beginning with the said day, unless the
dealer applies to the authority no later than 42 days before the end of
that period for the registration to be continued for a further period of
twelve months, and”;

(b) in paragraph (b), for the words “three years” substitute “twelve
15months”.

(6) Subsection (7) is amended as follows—

(a) after “subsection (1) of this section”, insert “, or who fails to comply
with the requirements of subsection (4) of this section as specified in
paragraph (f) thereof,”;

(b) 20for “level 3 on the standard scale” substitute “£20,000 and a term of
imprisonment not exceeding six months or both”.

(7) In subsection (8), for “level 1” substitute “level 5”.

(8) After subsection (9) insert—

“(9A) The Secretary of State shall make regulations under this section in order
25to—

(a) particularise further the duty set out in subsection (9);

(b) provide for the appointment of at least one local authority inspector per
local authority area (the “local authority inspectorate”), authorised in
writing to carry out inspections of scrap metal stores on their behalf;

(c) 30provide for at least two periodic inspections per annum to be
carried out at each scrap metal store registered in any local
authority area;

(d) define protocols under which the local authority inspectorate
for each area shall cooperate and communicate with the
35relevant police authority and the British Transport Police where
appropriate in order to prevent crime.”

(9) Subsection (10) is amended as follows—

(a) after “subsection (3)” insert “subsection (3A), subsection (3J),
subsection (4)(f),”;

(b) 40for “and subsection (8)” substitute “, subsection (8), subsection (9) and
subsection (9A)”.

(10) After subsection (10) insert—

“(11) In relation to an application for registration under subsection (3) or for
continued registration under subsection (6)(a), the Secretary of State
45may by regulations prescribe the form of such applications.

(12) The Secretary of State may make regulations under this section
which—

(a) require applications under subsection (3) and/or subsection
(6)(a) to be accompanied by a fee;

(b) prescribe the amount of the fee; and

(c) prescribe the method by which the fee is to be calculated.

(13) 5The power of the Secretary of State to make regulations under this
section shall be exercisable by statutory instrument; and any
instrument containing such regulations shall be subject to annulment in
persuance of a resolution of either House of Parliament.”

2 Method of payment in scrap metal transactions

10After section 1 of the 1964 Act, insert—

“1A Method of payment in scrap metal transactions

(1) It shall be an offence to make payment in cash for any part of a scrap
metal transaction punishable on summary conviction by a fine not
exceeding level 5 on the standard scale.

(2) 15A full record of all non-cash payments in relation to scrap metal
transactions must be kept by a scrap metal dealer for a minimum of
four years.

(3) The Secretary of State may make regulations about the form in which
records of non-cash payments must be kept and the inspection of such
20records by local authorities, police authorities and others.

(4) The power of the Secretary of State to make regulations under this
section shall be exercisable by statutory instrument; and any
instrument containing such regulations shall be subject to annulment in
persuance of a resolution of either House of Parliament.”

3 25Records of dealings

(1) Section 2 of the 1964 Act (Records of dealings) is amended as follows.

(2) In subsection (2)(d), after “receipt of the scrap metal” insert “and the method of
payment”.

(3) In subsection (5), for the words from “and shall be retained” to end substitute
30“, the form and dimensions of which may be prescribed by regulations and
within 14 days of the date of the final entry he shall surrender that book to the
local authority which shall thereafter retain it for a period of not less than four
years.”.

(4) After subsection (5), insert—

“(5A) 35Any bound book which is retained by the local authority under
subsection (5) shall be made available upon request for inspection by a
police constable.”

(5) In subsection (6), after “any person” insert “other than a local authority”.

(6) After subsection (6), insert—

“(6A) 40The Secretary of State may, by statutory instrument, make regulations
under this section which—

(a) impose additional requirements upon dealers in respect of—

(i) verifying the identity of persons from whom scrap metal
is received;

(ii) verifying the origin or provenance of the scrap metal
received, including additional requirements in respect
5of recording the description and weight of the scrap
metal;

(iii) storing the scrap metal for a set minimum period prior
to processing;

(iv) describing, weighing and storing non-ferrous metals;

(b) 10prescribe the form in which the details set out in paragraph (a)
should be recorded, and the periods of time for which such
records must be kept;

and any instrument containing such regulations shall be subject to
annulment in persuance of a resolution of either House of Parliament.”

4 15Special provisions as to records in certain cases

(1) Section 3 (Special provisions as to records in certain cases) of the 1964 Act is
amended as follows.

(2) After paragraph (1)(a) insert—

“(aa) that, on the receipt by him of any scrap metal obtained in the
20course of a visit to a general waste storage site (including any
place which is used for the storage or sorting of general waste),
he shall obtain from the person for the time being in charge of
the site a receipt showing the weight of the scrap metal
concerned and, if it is sold, the aggregate price at which it is
25sold; and”

(3) In subsection (4), for “level 3” substitute “level 5”.

5 Powers of courts

For section 4 (Power for court to impose additional requirements on convicted
dealers) substitute the following—

“4 30Powers of courts on registration, conviction and appeal

(1) Where a person is convicted of an offence under section 1(7), section
2(6), section 3(4), section 4(3)(a) and (5) or section 6(4A), (4B) and (5) of
this Act, or is convicted of any offence which, in the opinion of the court
convicting him, is an offence involving dishonesty, the court in which
35he is sentenced may, in addition to any sentence passed, either—

(a) impose one or more of the conditions of registration as are
specified in any regulations made by the Secretary of State
under section 1(3E)(b) of this Act; or

(b) order that the person shall be disqualified as a scrap metal
40dealer by removal from the register of scrap metal dealers in
every local authority area where he is so registered, and that all
scrap metal stored at every scrap metal store registered under
his name shall be confiscated.

(2) The powers set out in subsection (1) are not exclusive and do not limit
45the powers of any court to make orders whether at common law or

under statute such as committal of an offender to the Crown Court
under section 70 of the Proceeds of Crime Act 2002.

(3) Where a person has been disqualified by virtue of an order under
subsection (1)(b), it shall be an offence—

(a) 5for any person to engage or continue to engage that person in
connection with the receipt, processing or dispatch of scrap
metal at a scrap metal store; but it shall be a defence for the
defendant to show that he did not know, and could not
reasonably have known, that the person had been or was
10disqualified;

(b) for a disqualified person to apply for a position in connection
with the receipt, processing or dispatch of scrap metal at a scrap
metal store, but it shall be a defence for the defendant to show
that he did not know, and could not reasonably have known,
15that the employment would entail such activities;

and either offence shall be punishable on summary conviction by a fine
not exceeding level 5 on the standard scale.

(4) Where a person has been charged with any offence under section 1(7),
section 2(6), section 3(4), section 4(3)(a) and (5), section 5(1) or section
206(4A), (4B) and (5) of this Act, he shall be obliged to produce to the court
at the earliest practicable opportunity proof of registration for any and
all local authority areas in which he is registered as a scrap metal dealer.

(5) Any person who fails to comply with the requirements of subsection (4)
shall be guilty of an offence and liable on summary conviction to a fine
25not exceeding level 5 on the standard scale.

(6) If any requirement of an order under subsection (1)(a) of this section is
contravened, the person to whom the order relates shall be guilty of an
offence and liable on summary conviction to a fine not exceeding level
5 on the standard scale.

(7) 30An order under subsection 1(b) of this section shall be for a period not
less than one year and not more than ten years.”

6 Other offences relating to scrap metal

(1) Section 5 (Other offences relating to scrap metal) of the 1964 Act is amended as
follows.

(2) 35In subsection (1)—

(a) for all references to “sixteen” substitute “eighteen”; and

(b) for “level 1” substitute “level 3”.

(3) After subsection (2) insert—

“(3) A person found guilty of the theft of scrap metal is punishable on
40indictment by an unlimited fine or a term of imprisonment not
exceeding five years, or both.

(4) In determining the sentence under subsection (3), the court may take
into account any injury, damage or loss caused by the theft of the scrap
metal including, but not limited to, death, personal injury, property
45damage and economic loss.”

7 Rights of entry and inspection

(1) Section 6 (Rights of entry and inspection) of the 1964 Act is amended as
follows.

(2) In subsection (1)—

(a) 5in paragraph (a), at end insert “, or any place which he reasonably
believes is so occupied irrespective of whether or not it is entered on the
register”;

(b) in paragraph (b), after “by virtue of this Act” insert “or regulations
made under this Act”.

(3) 10In subsection (2), after “authority in that behalf” insert “reasonably believes”.

(4) After subsection (4) insert—

“(4A) Any person who fails to produce any book, record or other document
which a person has a right to inspect under this section shall be guilty
of an offence and liable on summary conviction to a fine not exceeding
15level 3 on the standard scale.

(4B) Any person who assaults an officer in the exercise of any right of entry
or inspection conferred by this section shall be guilty of an offence and
liable on summary conviction to a fine not exceeding £20,000.”

(5) In subsection (5)—

(a) 20for “obstructs” substitute “wilfully obstructs an officer in”;

(b) for “level 1” substitute “level 5”.

8 Closure orders

(1) After section 6 of the 1964 Act, insert the following—

“6A Closure orders

(1) 25A magistrate may grant, on application by a senior police officer, a
closure order or, where such an order has already been granted, an
application to extend a closure order in relation to a place, subject to the
provisions of this section.

(2) A senior police officer may make such an application if either of the
30following apply—

(a) Where a scrap metal store is registered, the senior officer—

(i) reasonably believes that the trader is encouraging,
supporting or facilitating the trade in stolen metal
whether knowingly or not and in his view such closure
35is necessary for the prevention of theft or handling of
stolen goods or for the further investigation of those
offences; or

(ii) reasonably believes that the scrap metal dealer who is
registered against that store is failing to comply with
40any condition of his license imposed under section
1(3E)(b) or section 4(1)(a) of this Act.

(b) Where a scrap metal store is not registered the senior police
officer has been informed by either a member of the local
authority inspectorate or a police constable that, in their
45opinion, the place is being used as a scrap metal store.

(3) The initial application for an order under subsection (1) may be made
without notice to the defendant and the order will apply for a period
not exceeding 48 hours beginning with the time at which the order is
made, unless it is made on the ground specified under subsection
5(2)(b), in which case the order may be for an indefinite period.

(4) Where one or more orders under subsection (1) has been granted on
one of the grounds set out at subsection (2)(a)—

(a) the magistrate shall, at the time of making that order, list a
further hearing to take place, of which the defendant shall be
10given notice, before the expiry of that order;

(b) at that hearing, the magistrate may—

(i) decline to extend the order, with or without the
imposition of such conditions as are specified in any
regulations made by the Secretary of State under
15s1(3E)(b) of this Act, or

(ii) extend the order for a further 48 hours in accordance
with subsection (1).

(5) The effect of any order made under this section shall be that, during the
currency of the order, no scrap metal is to be received, processed or
20removed from the scrap metal store except where such receipt,
processing or removal has been explicitly authorised by a police
constable.

(6) A person who permits, without reasonable excuse, scrap metal to be
received, processed or removed during the currency of the order other
25than with the explicit authority of a police constable shall be guilty of
an offence and liable on conviction to a fine not exceeding level 5 on the
standard scale.

(7) For the purposes of this section, “reasonable excuse” shall include, but
not be limited to, the circumstance where neither the scrap metal dealer
30who is registered in relation to that scrap metal store, nor the person (if
another person) who has permitted the receipt, processing or removal
of the scrap metal, has been notified of the making of the order.”

9 Criminal liability of directors etc.

(1) After section 7 of the 1964 Act, insert the following—

“7A 35Criminal liability of directors etc.

(1) Where an offence under any provision of this Act is committed by a
body corporate and is proved to have been committed with the consent
or connivance of, or to be attributable to any neglect on the part of—

(a) a director, manager, secretary or other similar officer of the
40body corporate, or

(b) any person who was purporting to act in any such capacity,

he (as well as the body corporate) shall be guilty of that offence and
liable to be proceeded against and punished accordingly.

(2) Where an offence under any provision of this Act is committed by a
45partnership and is proved to have been committed with the consent or
connivance of, or to be attributable to any neglect on the part of a
partner or a person purporting to be a partner, he (as well as the

partnership) shall be guilty of that offence and liable to be proceeded
against and punished accordingly.”

10 Interpretation

(1) Section 9 (Interpretation) of the 1964 Act is amended as follows.

(2) 5In subsection (2)—

(a) at the end of the definition of “itinerant collector” insert “, or a person
regularly engaged in collecting metal from general waste storage sites
(which includes any place which is used for the storage or sorting of
general waste) for the purposes of resale”;

(b) 10after the definition of “place” insert—

(c) at the end of the definition of “scrap metal” insert “, and any other metal
which has been or is being stored as scrap metal at a scrap metal store”;

(d) at end, insert—

11 Short title, commencement and extent

(1) 15This Act may be cited as the Metal Theft (Prevention) Act 2012.

(2) This Act comes into force on the day on which it is passed.

(3) This Act shall not extend to Scotland or to Northern Ireland.