ReMA Sues Minnesota Over Copper Recycling Law

Legal Action Against Copper Recycling Law
The Recycled Materials Association (ReMA), a Washington-based trade group representing the recycling industry, has filed a lawsuit against the Minnesota Department of Commerce over a new law set to take effect in 2025. The law mandates that individuals selling copper, including scrap metal dealers, must obtain a license in an effort to combat copper theft. While the state’s intention is to prevent the theft of valuable copper items, including in-use wiring, ReMA argues that the law is unconstitutional and burdensome to law-abiding recyclers and scrap metal sellers.

ReMA’s Main Concerns with the Law
Unconstitutional Authority and Overreach: ReMA claims that the law grants Minnesota’s Department of Commerce excessive and vague authority, allowing Commissioner Grace Arnold to oversee the copper sales process without adequate guidance. ReMA asserts that this constitutes an unconstitutional separation of powers, which could lead to disproportionate regulation without clear legal parameters.

Impact on Legitimate Sellers: The law’s requirement for a license applies not only to large-scale scrap metal dealers but also to individuals and businesses selling small amounts of copper, such as those involved in the disposal of end-of-life vehicles, household appliances, and electronics. This broad application means that many legitimate recyclers, who have no connection to copper theft, would be unfairly impacted by the added costs and bureaucracy.

Legislative Intent vs. Industry Concerns
The law was introduced in response to increasing incidents of copper theft, which have led to public safety issues, including darkened streetlights and damaged infrastructure. However, critics argue that the law was crafted without input from key industry stakeholders, including metal recyclers and auto shredding plant operators. Neil Byce, co-owner of CW Metals and Nordic Metals, commented that while lawmakers’ intentions are well-meaning, there has been a disconnect between them and the recycling community. This gap, he suggests, may lead to unintended consequences that harm the industry’s operations.

ReMA’s Request for Legal Relief
ReMA is asking the court to rule that the law is unconstitutional and to compel the Minnesota Department of Commerce to modify the licensing process to make it less burdensome for legitimate scrap metal recyclers and sellers. The association’s goal is to ensure that the law addresses copper theft while not harming businesses that are not involved in illegal activities.