A
BILL
TO
Amend the law relating to scrap metal dealers; and for connected purposes.
Be it enacted by the Queen’s most Excellent Majesty, by and with the advice and
consent of the Lords Spiritual and Temporal, and Commons, in this present
Parliament assembled, and by the authority of the same, as follows:—
(1)
No person may carry on business as a scrap metal dealer unless authorised by
a licence under this Act (a “scrap metal licence”).
(2) 5See section 18 for the meaning of “carry on business as a scrap metal dealer”.
(3)
A person who carries on business as a scrap metal dealer in breach of
subsection (1) is guilty of an offence and is liable on summary conviction to a
fine not exceeding level 5 on the standard scale.
(1) 10A scrap metal licence is to be issued by a local authority.
(2) A licence must be one of the following types—
(a) a site licence, or
(b) a collector’s licence.
(3) A site licence authorises the licensee to carry on business—
(a) 15at any site in the authority’s area which is identified in the licence, and
(b) as a mobile collector in that area.
(4) A site licence must—
(a) name the licensee,
(b)
identify all the sites in the authority’s area at which the licensee is
20authorised to carry on business,
(c) name the site manager of each site, and
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(d) state the date on which the licence is due to expire.
(5) A collector’s licence—
(a)
authorises the licensee to carry on business as a mobile collector in the
authority’s area, but
(b) 5does not authorise the licensee to carry on business at a site.
(6) A collector’s licence must—
(a) name the licensee, and
(b) state the date on which the licence is due to expire.
(7)
A licence is to be in the form prescribed by the Secretary of State in regulations
10(but this is subject to subsections (4) and (6)).
(8)
A person may hold more than one licence issued by different local authorities,
but may not hold more than one licence issued by any one authority.
(1)
A local authority must not issue or renew a scrap metal licence unless it is
15satisfied that the applicant is a suitable person to carry on business as a scrap
metal dealer.
(2)
In determining whether the applicant is a suitable person, the authority may
have regard to any information which it considers to be relevant, including in
particular—
(a)
20whether the applicant or any site manager has been convicted of any
relevant offence;
(b)
whether the applicant or any site manager has been the subject of any
relevant enforcement action;
(c)
any previous refusal of an application for the issue or renewal of a scrap
25metal licence (and the reasons for the refusal);
(d)
any previous refusal of an application for a relevant environmental
permit or registration (and the reasons for the refusal);
(e)
any previous revocation of a scrap metal licence (and the reasons for the
revocation);
(f)
30whether the applicant has demonstrated that there will be in place
adequate procedures to ensure that the provisions of this Act are
complied with.
(3) In subsection (2)—
(a)
“relevant offence” means an offence which is prescribed for the
35purposes of that subsection in regulations made by the Secretary of
State, and
(b)
“relevant enforcement action” means enforcement action which is so
prescribed.
(4)
In determining whether a company is a suitable person to carry on business as
40a scrap metal dealer, a local authority is to have regard, in particular, to
whether any of the following is a suitable person—
(a) any director of the company,
(b) any secretary of the company,
(c)
any shadow director of the company (that is to say, any person in
45accordance with whose directions or instructions the directors of the
company are accustomed to act).
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(5)
In determining whether a partnership is a suitable person to carry on business
as a scrap metal dealer, a local authority is to have regard, in particular, to
whether each of the partners is a suitable person.
(6)
The authority must also have regard to any guidance on determining
5suitability which is issued from time to time by the Secretary of State.
(7)
The authority may consult other persons regarding the suitability of an
applicant, including in particular—
(a) the Environment Agency;
(b) an officer of a police force.
(8)
10The authority may include in the licence one or both of the following
conditions—
(a)
that the dealer must not receive scrap metal between specified hours of
the day;
(b)
that all scrap metal received must be kept in the form in which it is
15received for a specified period, not exceeding 72 hours, beginning with
the time when it is received.
(9) “Specified” means specified in the condition.
(1)
The authority may revoke a scrap metal licence if it is satisfied that the licensee
20does not carry on business at any of the sites identified in the licence.
(2)
The authority may revoke a licence if it is satisfied that a site manager named
in the licence does not act as site manager at any of the sites identified in the
licence.
(3)
The authority may revoke a licence if it is no longer satisfied that the licensee
25is a suitable person to carry on business as a scrap metal dealer.
(4) Section 3(2) to (7) apply for the purposes of subsection (3).
(5)
The authority may vary a licence by adding one or both of the conditions set
out in section 3(8).
(6)
The revocation of a licence, or a variation under subsection (5), comes into
30effect when no appeal under paragraph 9 of Schedule 1 is possible in relation
to the revocation or variation, or when any such appeal is finally determined
or withdrawn.
(7)
In this section “the authority” means the local authority which issued the
licence.
Schedule 1 (which makes further provision about licences) has effect.
(1)
This section applies to information which has been supplied to a local authority
under this Act and relates to a scrap metal licence or to an application for or
40relating to a licence.
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(2)
The local authority must supply any such information to any of the following
persons who requests it for purposes relating to this Act—
(a) any other local authority,
(b) the Environment Agency, and
(c) 5an officer of a police force.
(3)
This section does not limit any other power the authority has to supply that
information.
(1) The Environment Agency must maintain a register of scrap metal licences.
(2) 10Each entry in the register must record—
(a) the name of the authority which issued the licence,
(b) the name of the licensee,
(c)
the name under which the licensee carries on business as a scrap metal
dealer (if different from that under paragraph (b)),
(d) 15the address of any site identified in the licence,
(e) the type of licence, and
(f) the date on which the licence is due to expire.
(3) The register is to be open for inspection to the public.
(4)
The Environment Agency may combine the register with any other register
20maintained by it.
(1)
An applicant for a scrap metal licence, or for the renewal or variation of a
licence, must notify the authority to which the application was made of any
changes which materially affect the accuracy of the information which the
25applicant has provided in connection with the application.
(2)
A licensee who is not carrying on business as a scrap metal dealer in the area
of the authority which issued the licence must notify the authority of that fact.
(3)
Notification under subsection (2) must be given within 28 days of the
beginning of the period in which the licensee is not carrying on business in that
30area while licensed.
(4)
If a licensee carries on business as a scrap metal dealer under a name (“a
trading name”) other than that stated in the licence under section 2(4)(a) or
(6)(a), the licensee must notify the authority which issued the licence of any
change to the trading name.
(5)
35Notification under subsection (4) must be given within 28 days of the change
occurring.
(6) An authority must notify the Environment Agency of—
(a) any change notified to the authority under subsection (4), and
(b)
any variation made by the authority under paragraph 2 of Schedule 1
40(variation of type of licence or matters set out in licence).
(7)
Where an authority notifies the Environment Agency of a change or variation,
the Agency must amend the register under section 7 accordingly.
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(8)
An applicant or licensee who fails to comply with this section is guilty of an
offence and is liable on summary conviction to a fine not exceeding level 3 on
the standard scale.
(9)
It is a defence for a person charged with an offence under this section to prove
5that the person took all reasonable steps and exercised all due diligence to
avoid committing the offence.
Schedule 2 (which makes provision for the closure of sites at which a scrap
metal business is being carried on without a licence) has effect.
(1)
A scrap metal dealer must not receive scrap metal from a person without
verifying the person’s full name and address.
(2)
That verification must be by reference to documents, data or other information
15obtained from a reliable and independent source.
(3) The Secretary of State may prescribe in regulations—
(a)
documents, data or other information which are sufficient for the
purpose of subsection (2);
(b)
documents, data or other information which are not sufficient for that
20purpose.
(4)
If a scrap metal dealer receives scrap metal in breach of subsection (1), each of
the following is guilty of an offence—
(a) the scrap metal dealer;
(b) if the metal is received at a site, the site manager;
(c)
25a manager (other than the person within paragraph (b)) who fails to
take reasonable steps to prevent the metal being received in breach of
subsection (1).
(5)
In subsection (4)(c) “manager” means a person who works in the carrying on
of the dealer’s business as a scrap metal dealer in a capacity, whether paid or
30unpaid, which authorises the person to prevent the metal being received in
breach of subsection (1).
(6)
A person guilty of an offence under subsection (4) is liable on summary
conviction to a fine not exceeding level 3 on the standard scale.
(7)
A person who, on delivering scrap metal to a scrap metal dealer, gives a false
35name or false address is guilty of an offence and is liable on summary
conviction to a fine not exceeding level 3 on the standard scale.
(1) A scrap metal dealer must not pay for scrap metal except—
(a)
by a cheque which under section 81A of the Bills of Exchange Act 1882
40is not transferable, or
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(b)
by an electronic transfer of funds (authorised by credit or debit card or
otherwise).
(2)
The Secretary of State may by order amend subsection (1) to permit other
methods of payment.
(3) 5In this section paying includes paying in kind (with goods or services).
(4)
If a scrap metal dealer pays for scrap metal in breach of subsection (1), each of
the following is guilty of an offence—
(a) the scrap metal dealer;
(b) if the payment is made at a site, the site manager;
(c)
10a manager (other than the person within paragraph (b)) who fails to
take reasonable steps to prevent the payment being made in breach of
subsection (1).
(5)
In subsection (4)(c) “manager” means a person who works in the carrying on
of the dealer’s business as a scrap metal dealer in a capacity, whether paid or
15unpaid, which authorises the person to prevent the payment being made in
breach of subsection (1).
(6)
A person guilty of an offence under this section is liable on summary
conviction to a fine not exceeding level 5 on the standard scale.
(1)
20This section applies if a scrap metal dealer receives any scrap metal in the
course of the dealer’s business.
(2) The dealer must record the following information—
(a) the description of the metal (including its type and weight);
(b) the date and time of its receipt;
(c)
25if the metal is delivered in or on a vehicle, the registration mark (within
the meaning of section 23 of the Vehicle Excise and Registration Act
1994) of the vehicle,
(d)
if the metal is received from a person, the full name and address of that
person;
(e)
30if the dealer pays for the metal, the full name of the person who makes
the payment acting for the dealer.
(3)
If the dealer receives the metal from a person, the dealer must keep a copy of
any document which the dealer uses to verify the name or address of that
person.
(4) 35If the dealer pays for the metal, the dealer must keep—
(a) if the payment was by cheque, a copy of the cheque, or
(b)
if the payment was by electronic transfer, the receipt (if any) identifying
the transfer.
(5) If the dealer pays for the metal and—
(a) 40the payment was by electronic transfer, and
(b) no receipt identifying the transfer was obtained,
the dealer must record particulars identifying the transfer.
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(6)
The information mentioned in subsections (2) and (5) must be recorded in a
manner which allows each of the items of information to be readily connected
to the scrap metal to which they relate.
(7)
The records mentioned in subsections (3) and (4) must be marked so as to
5identify the scrap metal to which they relate.
(8)
The dealer must keep the information and other records mentioned in
subsections (2) to (5) for a period of 2 years beginning with the day on which
the metal is received.
(9)
If a scrap metal dealer fails to comply with a requirement under this section,
10each of the following is guilty of an offence—
(a) the scrap metal dealer;
(b) if the metal is received at a site, the site manager;
(c)
a manager (other than the person within paragraph (b)) who fails to
take reasonable steps to ensure that the requirement is complied with.
(10)
15In subsection (9)(c) “manager” means a person who works in the carrying on
of the dealer’s business as a scrap metal dealer in a capacity, whether paid or
unpaid, which authorises the person to ensure that the requirement is
complied with.
(11)
A person guilty of an offence under this section is liable on summary
20conviction to a fine not exceeding level 5 on the standard scale.
(1)
A constable or an officer of a local authority may enter and inspect a licensed
site at any reasonable time on notice to the site manager.
(2)
25A constable or an officer of a local authority may enter and inspect a licensed
site at any reasonable time, otherwise than on notice to the site manager, if—
(a)
reasonable attempts to give such notice have been made and have
failed, or
(b)
entry to the site is reasonably required for the purpose of ascertaining
30whether the provisions of this Act are being complied with or
investigating offences under it and (in either case) the giving of notice
would defeat that purpose.
(3) Subsections (1) and (2) do not apply to residential premises.
(4)
A constable or an officer of a local authority is not entitled to use force to enter
35premises in the exercise of the powers under subsections (1) and (2).
(5)
A justice of the peace may issue a warrant authorising entry (in accordance
with subsection (7)) to any premises within subsection (6) if the justice is
satisfied by information on oath that there are reasonable grounds for believing
that entry to the premises is reasonably required for the purpose of—
(a) 40securing compliance with the provisions of this Act, or
(b) ascertaining whether those provisions are being complied with.
(6) Premises are within this subsection if—
(a) the premises are a licensed site, or
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(b)
the premises are not a licensed site but there are reasonable grounds for
believing that the premises are being used by a scrap metal dealer in the
course of business.
(7) The warrant is a warrant signed by the justice which—
(a) 5specifies the premises concerned, and
(b)
authorises a constable or an officer of a local authority to enter and
inspect the premises at any time within one month from the date of the
warrant.
(8)
A constable or an officer of a local authority may, if necessary, use reasonable
10force in the exercise of the powers under a warrant under subsection (5).
(9) A constable or an officer of a local authority may—
(a)
require production of, and inspect, any scrap metal kept at any
premises mentioned subsection (1) or (2) or in a warrant under
subsection (5);
(b)
15require production of, and inspect, any records kept in accordance with
section 12 and any other records relating to payment for scrap metal;
(c) take copies of or extracts from any such records.
(10)
Subsection (11) applies if a constable or an officer of a local authority (“the
officer”) seeks to exercise powers under this section in relation to any premises.
(11)
20If the owner, occupier or other person in charge of the premises requires the
officer to produce—
(a) evidence of the officer’s identity, or
(b) evidence of the officer’s authority to exercise those powers,
the officer must produce that evidence.
(12)
25In the case of an officer of a local authority, the powers under this section are
exercisable only in relation to premises in the area of the authority.
(13) A person who—
(a)
obstructs the exercise of a right of entry or inspection under this section,
or
(b) 30fails to produce a record required to be produced under this section,
is guilty of an offence and is liable on summary conviction to a fine not
exceeding level 3 on the standard scale.
(1)
Where an offence under this Act is committed by a body corporate and is
35proved—
(a)
to have been committed with the consent or connivance of a director,
manager, secretary or other similar officer, or
(b) to be attributable to any neglect on the part of any such individual,
the individual as well as the body corporate is guilty of the offence and is liable
40to be proceeded against and punished accordingly.
(2)
Where the affairs of a body corporate are managed by its members, subsection
(1) applies in relation to the acts and omissions of a member in connection with
that management as if the member were a director of the body corporate.
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(1)
Before the end of 5 years beginning with the day on which section 1 comes into
force, the Secretary of State must—
(a) carry out a review of this Act, and
(b) 5publish a report of the conclusions of the review.
(2) The report must in particular—
(a) set out the objectives intended to be achieved by this Act,
(b) assess the extent to which those objectives have been achieved, and
(c)
assess whether it is appropriate to retain or repeal the Act or any of its
10provisions in order to achieve those objectives.
The following are repealed—
(a) the Scrap Metal Dealers Act 1964;
(b) paragraph 6 of Schedule 9 to the Local Government (Wales) Act 1994;
(c)
15paragraph 1 of Schedule 3 to the Vehicle Excise and Registration Act
1994;
(d) in the Vehicles (Crime) Act 2001—
(i) Part 1,
(ii) section 35, and
(iii) 20paragraphs 1 and 2 of the Schedule;
(e)
in paragraph 168 of Schedule 17 to the Communications Act 2003,
“16(2)(a),”;
(f)
sections 145 to 147 of the Legal Aid, Sentencing and Punishment of
Offenders Act 2012.
(1)
Any power to make an order or regulations under this Act is exercisable by
statutory instrument.
(2)
A statutory instrument containing an order or regulations under this Act, other
than an order under section 11(2), 18(8) or 20(2), is subject to annulment in
30pursuance of a resolution of either House of Parliament.
(3)
A statutory instrument containing an order under section 11(2) or 18(8) may
not be made unless a draft of the instrument has been laid before and approved
by a resolution of each House of Parliament.
(4) Any power to make an order or regulations under this Act—
(a)
35may be exercised so as to make different provision for different
purposes;
(b)
includes power to make such incidental, supplementary,
consequential, transitory, transitional or saving provision as the
Secretary of State considers appropriate.
(1) The following provisions apply for the purposes of this Act.
(2) A person carries on business as a scrap metal dealer if the person—