LA City Council moves to restrict copper and other metal sales and recycling

On Tuesday, the Los Angeles City Council approved a resolution in support of Assembly Bill 476, which, if passed, would regulate and impose additional requirements for recyclers and junk dealers.  

More than creating stricter policy and enforcement for the recycling and selling of metals like copper, brass and other metals, the bill also looks to combat metal theft by cracking down on illicit sales and purchases of stolen metals, an action that, as the state has reported, has been more widespread in recent years. 

The city resolution, which was initially introduced on March 7 by Councilwoman Monica Rodriguez and Councilman John Lee, was approved unanimously yesterday. 

Last month, the theft of copper wiring left several Silver Lake streets in darkness, as reported by ABC News. The theft of copper wiring, which is sold to many local metal recycling centers in L.A., has left communities without streetlights and landline phone service. In local Reddit accounts and pages, pictures of streetlights left without wires are often uploaded by residents. 

Unlawful acquisition of metals like this has also led to the creation of the LAPD's Heavy Metals Task Unit in 2024. Since then, the task force has worked to combat metal theft and scrap metal crimes, particularly in areas like downtown L.A., Boyle Heights, El Sereno and Lincoln Heights. 

Some of the stricter requirements the bill would impose include requiring recyclers to obtain proof of ownership for nonferrous metals, like copper, from sellers to prevent stolen goods from being sold. The bill, authored by Assemblyman Mark Gonzalez (D-Los Angeles), would also prohibit recyclers from purchasing nonferrous metals from individuals under 18 years of age and as well as the sale of scrap metal copper by individuals without a valid license. It would also increase the maximum criminal fine for receiving stolen property related to metal theft to $10,000. 

 The paperwork recyclers would have to maintain will also increase and include transaction records, including seller identification, vehicle information and proof of metal ownership.

According to the city resolution in support of AB 476, the surges in theft of precious metals are a result of organized criminals who use social media to coordinate their activities and hit multiple locations throughout L.A. simultaneously. 

But those in opposition say the bill could cause a big strain on local and family-owned recycling companies. The Recycled Materials Association (ReMA), which says it represents 1,700 recycling companies, opposes the bill, saying it would put small employers out of business if they are forced to acquire licenses. 

“[R]equiring many of the honest and hardworking retail suppliers that collect and sell recycled material to obtain an expensive and time-consuming confactor's license would either force them out of business or give them no option other than to sell to black market recyclers. The majority of these are small, independent family-owned businesses and run by hard-working people who rely on this income to make ends meet,” the association wrote.

Also in opposition is the Contractors State License Board (CSLB), which said that while they understand the “plight of local communities in dealing with copper theft, it is unclear how the establishment of a new licensing structure under CSLB will prevent the purchase of stolen scrap copper by junk dealers and recyclers.” 

They wrote that for CSLB to implement new license types, the cost of this will require substantial upfront resources to be fully borne by existing licensees. “It is also unclear if there are enough individuals interested in copper seller licensure to ensure this new license type is financially sustainable moving forward,” CSLB said. 

The bill was unanimously approved by the California Assembly Committee on Appropriations on May 23, but further consideration on the item is required by legislators.