Scrap Metal Dealers Bill (HL Bill 54)

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17 Offences by bodies corporate

(1) Where an offence under this Act is committed by a body corporate and is
proved—

(a) to have been committed with the consent or connivance of a director,
5manager, 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
to be proceeded against and punished accordingly.

(2) Where the affairs of a body corporate are managed by its members, subsection
10(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.

18 Review of Act

(1) Before the end of 5 years beginning with the day on which section 1 comes into
force, the Secretary of State must—

(a) 15carry out a review of this Act, and

(b) publish 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) 20assess whether it is appropriate to retain or repeal the Act or any of its
provisions in order to achieve those objectives.

19 Consequential amendments

(1) The following are repealed—

(a) the Scrap Metal Dealers Act 1964;

(b) 25paragraph 6 of Schedule 9 to the Local Government (Wales) Act 1994;

(c) paragraph 1 of Schedule 3 to the Vehicle Excise and Registration Act
1994;

(d) in the Vehicles (Crime) Act 2001—

(i) Part 1,

(ii) 30section 35, and

(iii) paragraphs 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
35Offenders Act 2012.

(2) In Schedule 3 to the Regulatory Enforcement and Sanctions Act 2008
(enactments specified for the purposes of Part 1 of that Act), for “Scrap Metal
Dealers Act 1964 (c. 69)1964 (c. 69)” substitute “Scrap Metal Dealers Act 2012”.

20 Orders and regulations

(1) 40Any power to make an order or regulations under this Act is exercisable by
statutory instrument.

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(2) A statutory instrument containing an order or regulations under this Act, other
than an order under section 12(2), 21(8) or 23(2), is subject to annulment in
pursuance of a resolution of either House of Parliament.

(3) A statutory instrument containing an order under section 12(2) or 21(8) may
5not 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) may be exercised so as to make different provision for different
purposes;

(b) 10includes power to make such incidental, supplementary,
consequential, transitory, transitional or saving provision as the
Secretary of State considers appropriate.

21 “Carrying on business as a scrap metal dealer” and “scrap metal”

(1) The following provisions apply for the purposes of this Act.

(2) 15A person carries on business as a scrap metal dealer if the person—

(a) carries on a business which consists wholly or partly in buying or
selling scrap metal, whether or not the metal is sold in the form in
which it was bought, or

(b) carries on business as a motor salvage operator (so far as that does not
20fall within paragraph (a)).

(3) For the purposes of subsection (2)(a), a person who manufactures articles is not
to be regarded as selling scrap metal if that person sells scrap metal only as a
by-product of manufacturing articles or as surplus materials not required for
manufacturing them.

(4) 25For the purposes of subsection (2)(b), a person carries on business as a motor
salvage operator if the person carries on a business which consists—

(a) wholly or partly in recovering salvageable parts from motor vehicles
for re-use or sale and subsequently selling or otherwise disposing of the
rest of the vehicle for scrap,

(b) 30wholly or mainly in buying written-off vehicles and subsequently
repairing and reselling them,

(c) wholly or mainly in buying or selling motor vehicles which are to be the
subject (whether immediately or on a subsequent re-sale) of any of the
activities mentioned in paragraphs (a) and (b), or

(d) 35wholly or mainly in activities falling within paragraphs (b) and (c).

(5) “Scrap metal dealer” means a person who is for the time being carrying on
business as a scrap metal dealer, whether or not authorised by a licence.

(6) “Scrap metal” includes—

(a) any old, waste or discarded metal or metallic material, and

(b) 40any product, article or assembly which is made from or contains metal
and is broken, worn out or regarded by its last holder as having reached
the end of its useful life.

(7) But the following are not scrap metal—

(a) gold,

(b) 45silver, and

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(c) any alloy of which 2 per cent or more by weight is attributable to gold
or silver.

(8) The Secretary of State may by order amend the definition of “scrap metal” for
the purposes of this Act (whether by amending subsection (6) or (7) or
5otherwise).

22 Other definitions

(1) The following provisions apply for the purposes of this Act.

(2) “Licensed site” means a site identified in a scrap metal licence.

(3) “Local authority” means—

(a) 10in relation to England, the council of a district, the Common Council of
the City of London or the council of a London borough;

(b) in relation to Wales, the council of a county or a county borough.

(4) “Mobile collector” means a person who—

(a) carries on business as a scrap metal dealer otherwise than at a site, and

(b) 15regularly engages, in the course of that business, in collecting waste
materials and old, broken, worn out or defaced articles by means of
visits from door to door.

(5) “Officer of a police force” includes a constable of the British Transport Police
Force.

(6) 20“Premises” includes any land or other place (whether enclosed or not).

(7) “Relevant environmental permit or registration”, in relation to an application
made to a local authority, means—

(a) any environmental permit under regulation 13 of the Environmental
(Permitting) Regulations 2010 (S.I. 2010/675S.I. 2010/675) authorising any operation
25by the applicant in the local authority’s area;

(b) any registration of the applicant under Schedule 2 to those Regulations
in relation to an exempt waste operation (within the meaning of
regulation 5 of those Regulations) carried on in that area;

(c) any registration of the applicant under Part 8 of the Waste (England
30and Wales) Regulations 2011 (S.I. 2011/988S.I. 2011/988) (carriers, brokers and
dealers of controlled waste).

(8) “Relevant offence” and “relevant enforcement action” have the meaning given
by section 3(3).

(9) “Site” means any premises used in the course of carrying on business as a scrap
35metal dealer (whether or not metal is kept there).

(10) “Site manager”, in relation to a site at which a scrap metal dealer carries on
business, means the individual who exercises day-to-day control and
management of activities at the site.

(11) An individual may be named in a licence as site manager at more than one site;
40but no site may have more than one site manager named in relation to it.

(12) “Trading name” means a name, other than that stated in the licence under
section 2(4)(a) or (6)(a), under which a licensee carries on business as a scrap
metal dealer.

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23 Extent, commencement and short title

(1) This Act extends to England and Wales.

(2) The provisions of this Act, except section 20 and this section, come into force
on such day as the Secretary of State may appoint by order.

(3) 5Different days may be appointed for different purposes.

(4) This Act may be cited as the Scrap Metal Dealers Act 2012.

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SCHEDULES

Section 5

SCHEDULE 1 Further provision about licences

Term of licence

1 (1) 5A licence expires at the end of the period of 3 years beginning with the day
on which it is issued.

(2) But if an application to renew a licence is received before the licence expires,
the licence continues in effect and—

(a) if the application is withdrawn, the licence expires at the end of the
10day on which the application is withdrawn;

(b) if the application is refused, the licence expires when no appeal
under paragraph 9 is possible in relation to the refusal or any such
appeal is finally determined or withdrawn;

(c) if the licence is renewed, it expires at the end of the period of 3 years
15beginning with the day on which it is renewed or (if renewed more
than once) the day on which it is last renewed.

(3) Sub-paragraphs (1) and (2) are subject to section 4 (revocation of licence).

(4) The Secretary of State may by order substitute different periods for the
periods specified in sub-paragraphs (1) and (2)(c).

20Applications

2 (1) A licence is to be issued or renewed on an application, which must be
accompanied by—

(a) if the applicant is an individual, the full name, date of birth and usual
place of residence of the applicant,

(b) 25if the applicant is a company, the name and registered number of the
applicant and the address of the applicant’s registered office,

(c) if the applicant is a partnership, the full name, date of birth and usual
place of residence of each partner,

(d) any proposed trading name,

(e) 30the telephone number and e-mail address (if any) of the applicant,

(f) the address of any site in the area of any other local authority at
which the applicant carries on business as a scrap metal dealer or
proposes to do so,

(g) details of any relevant environmental permit or registration in
35relation to the applicant,

(h) details of any other scrap metal licence issued (whether or not by the
local authority) to the applicant within the period of 3 years ending
with the date of the application,

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(i) details of the bank account which is proposed to be used in order to
comply with section 12, and

(j) details of any conviction of the applicant for a relevant offence, or
any relevant enforcement action taken against the applicant.

(2) 5If the application relates to a site licence, it must also be accompanied by—

(a) the address of each site proposed to be identified in the licence (or, in
the case of an application to renew, of each site identified in the
licence whose renewal is sought), and

(b) the full name, date of birth and usual place of residence of each
10individual proposed to be named in the licence as a site manager
(other than the applicant).

(3) If the application relates to a site licence, the references in sub-paragraph
(1)(g), (h) and (j) to the applicant are to be read as including any individual
proposed to be named in the licence as a site manager.

(4) 15The Secretary of State may by order amend sub-paragraph (1) or (2) to alter
the requirements as to what information must accompany an application.

Variation of licence

3 (1) A local authority may, on an application, vary a licence by changing it from
one type to the other.

(2) 20If there is a change in any of the matters mentioned in section 2(4)(a), (c) or
(d) or (6)(a), the licensee must make an application to vary the licence
accordingly.

(3) But the power to amend the name of the licensee does not include the power
to transfer the licence from one person to another.

(4) 25An application under this paragraph—

(a) is to be made to the authority which issued the licence, and

(b) must contain particulars of the changes to be made to the licence.

(5) A licensee who fails to comply with sub-paragraph (2) is guilty of an offence
and is liable on summary conviction to a fine not exceeding level 3 on the
30standard scale.

(6) It is a defence for a person charged with an offence under this paragraph to
prove that the person took all reasonable steps to avoid committing the
offence.

Further information

4 (1) 35The local authority may request (either when the application is made or
later) that the applicant provide such further information as the authority
considers relevant for the purpose of considering the application.

(2) If an applicant fails to provide information requested under sub-paragraph
(1), the authority may decline to proceed with the application.

40Offence of making false statement

5 An applicant who in an application or in response to a request under
paragraph 4(1)

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(a) makes a statement knowing it be false in a material particular, or

(b) recklessly makes a statement which is false in a material particular,

is guilty of an offence and is liable on summary conviction to a fine not
exceeding level 3 on the standard scale.

5Fee

6 (1) An application must be accompanied by a fee set by the authority.

(2) In setting a fee under this paragraph, the authority must have regard to any
guidance issued from time to time by the Secretary of State with the
approval of the Treasury.

10Right to make representations

7 (1) If a local authority proposes—

(a) to refuse an application made under paragraph 2 or 3, or

(b) to revoke or vary a licence under section 4,

the authority must give the applicant or licensee a notice which sets out what
15the authority proposes to do and the reasons for it.

(2) In this paragraph the applicant or licensee is referred to as “A”.

(3) A notice under sub-paragraph (1) must also state that, within the period
specified in the notice, A may either—

(a) make representations about the proposal, or

(b) 20inform the authority that A wishes to do so.

(4) The period specified in the notice must be not less than 14 days beginning
with the date on which the notice is given to A.

(5) The authority may refuse the application, or revoke or vary the licence under
section 4, if—

(a) 25within the period specified in the notice, A informs the authority that
A does not wish to make representations, or

(b) the period specified in the notice expires and A has neither made
representations nor informed the authority that A wishes to do so.

(6) If, within the period specified in the notice, A informs the authority that A
30wishes to make representations, the authority—

(a) must allow A a further reasonable period to make representations,
and

(b) may refuse the application, or revoke or vary the licence under
section 4, if A fails to make representations within that period.

(7) 35If A makes representations (either within the period specified in the notice
under sub-paragraph (1) or within the further period under sub-paragraph
(6)), the authority must consider the representations.

(8) If A informs the authority that A wishes to make oral representations, the
authority must give A the opportunity of appearing before, and being heard
40by, a person appointed by the authority.

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Notice of decision

8 (1) If the authority refuses the application, or revokes or varies the licence under
section 4, it must give A a notice setting out the decision and the reasons for
it.

(2) 5A notice under this paragraph must also state—

(a) that A may appeal under paragraph 9 against the decision,

(b) the time within which such an appeal may be brought, and

(c) in the case of a revocation or variation under section 4, the date on
which the revocation or variation is to take effect.

10Appeals

9 (1) An applicant may appeal to a magistrates’ court against the refusal of an
application made under paragraph 2 or 3.

(2) A licensee may appeal to a magistrates’ court against—

(a) the inclusion in a licence of a condition under section 3(8), or

(b) 15the revocation or variation of a licence under section 4.

(3) An appeal under this paragraph is to be made within the period of 21 days
beginning with the day on which notice of the decision to refuse the
application, to include the condition, or to revoke or vary the licence under
section 4, was given.

(4) 20The procedure on an appeal under this paragraph is to be by way of
complaint for an order and in accordance with the Magistrates’ Courts Act
1980.

(5) For the purposes of the time limit for making an appeal under this
paragraph, the making of the complaint is to be treated as the making of the
25appeal.

(6) On an appeal under this paragraph, the magistrates’ court may—

(a) confirm, vary or reverse the authority’s decision, and

(b) give such directions as it considers appropriate having regard to the
provisions of this Act.

(7) 30The authority must comply with any directions given by the magistrates’
court under sub-paragraph (6).

(8) But the authority need not comply with any such directions—

(a) until the time for making an application under section 111 of the
Magistrates’ Courts Act 1980 (application by way of case stated) has
35passed, or

(b) if such an application is made, until the application is finally
determined or withdrawn.

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Section 9

SCHEDULE 2 Closure of unlicensed sites

Interpretation

1 (1) For the purposes of this Schedule, a person has an interest in premises if the
5person is the owner, leaseholder or occupier of the premises.

(2) In the case of a local authority, the powers conferred by this Schedule are
exercisable only in relation to premises in the authority’s area; and “the local
authority”, in relation any premises, is to read accordingly.

Closure notice

2 (1) 10This paragraph applies if a constable or the local authority is satisfied—

(a) that premises are being used by a scrap metal dealer in the course of
business, and

(b) that the premises are not a licensed site.

(2) But this paragraph does not apply if the premises are residential premises.

(3) 15The constable or authority may issue a notice (a “closure notice”) which—

(a) states that the constable or authority is satisfied as mentioned in sub-
paragraph (1),

(b) gives the reasons for that,

(c) states that the constable or authority may apply to the court for a
20closure order (see paragraphs 4 and 5), and

(d) specifies the steps which may be taken to ensure that the alleged use
of the premises ceases.

(4) The constable or authority must give the closure notice to—

(a) the person who appears to the constable or authority to be the site
25manager of the premises, and

(b) any person (other than the person in paragraph (a)) who appears to
the constable or authority to be a director, manager or other officer
of the business in question.

(5) The constable or authority may also give the notice to any person who has
30an interest in the premises.

(6) Sub-paragraph (7) applies where—

(a) a person occupies another part of any building or structure of which
the premises form part, and

(b) the constable or authority reasonably believes, at the time of giving
35the notice under sub-paragraph (4), that the person’s access to that
other part would be impeded if a closure order were made in respect
of the premises.

(7) The constable or authority must give the notice to that person.

Cancellation of closure notice

3 (1) 40A closure notice may be cancelled by a notice (a “cancellation notice”) issued
by a constable or the local authority.

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(2) A cancellation notice takes effect when it is given to any one of the persons
to whom the closure notice was given.

(3) The cancellation notice must also be given to any other person to whom the
closure notice was given.

5Application for closure order

4 (1) Where a closure notice has been given under paragraph 2(4), a constable or
the local authority may make a complaint to a justice of the peace for a
closure order (see paragraph 5).

(2) A complaint under this paragraph may not be made—

(a) 10less than 7 days after the date on which the closure notice was given,
or

(b) more than 6 months after that date.

(3) A complaint under this paragraph may not be made if the constable or
authority is satisfied that—

(a) 15the premises are not (or are no longer) being used by a scrap metal
dealer in the course of business, and

(b) there is no reasonable likelihood that the premises will be so used in
the future.

(4) Where a complaint has been made under this paragraph, the justice may
20issue a summons to answer to the complaint.

(5) The summons must be directed to any person to whom the closure notice
was given under paragraph 2(4).

(6) If a summons is issued under sub-paragraph (4), notice of the date, time and
place at which the complaint will be heard must be given to all the persons
25to whom the closure notice was given under paragraph 2(5) and (7).

(7) The procedure on a complaint under this paragraph is to be in accordance
with the Magistrates’ Courts Act 1980.

Closure order

5 (1) This paragraph applies if, on hearing a complaint under paragraph 4, the
30court is satisfied that the closure notice was given under paragraph 2(4) and
that—

(a) the premises continue to be used by a scrap metal dealer in the course
of business, or

(b) there is a reasonable likelihood that the premises will be so used in
35the future.

(2) The court may make such order as it considers appropriate for the closure of
the premises (a “closure order”).

(3) A closure order may, in particular, require—

(a) that the premises be closed immediately to the public and remain
40closed until a constable or the local authority makes a certificate
under paragraph 6;

(b) that the use of the premises by a scrap metal dealer in the course of
business be discontinued immediately;