Scrap metal workers sue Minnesota over new copper wire theft law

A trade group representing scrap metal workers has sued the Minnesota Department of Commerce, alleging that a new law designed to curb copper theft will violate the state’s constitution and shutter the scrap metal industry.

The Recycled Materials Association’s Upper Midwest Chapter on Monday sued Grace Arnold in her capacity as commissioner of the Minnesota Department of Commerce. ReMA officials say in the lawsuit that the copper wire theft law, which will become effective Jan. 1 and require a license for people who sell copper, is an unconstitutional separation of powers that gives Arnold sweeping authority and little guidance. And because the bill applies to small amounts of copper metal, industry leaders worry that all Minnesotans selling scrap metal will need a license.

“This is critical because almost all of the ‘scrap metal’ that is sold to ‘scrap metal dealers’ in Minnesota contain ‘copper metal,’ ” the lawsuit read, adding that jewelry, car parts, home decor and many garden tools contain copper.

“In sum, then, the Copper Metal Law will, if ‘enforced’ without the relief sought herein, effectively shutter the entire ‘scrap metal’ industry in Minnesota.”

Department of Commerce spokesperson Nancy Linden said they cannot comment on open litigation.

Monday’s lawsuit spells the latest chapter in an issue that has drained city budgets, vexed authorities and risked residents’ lives.

In St. Paul, where many of the state’s copper thefts have been, one ring of thieves caused more than $210,000 in damages. City officials spent $1.2 million on such repairs last year, marking a 380% increase from five years ago. Minneapolis officials are experimenting with silent alarms, aluminum wires, and even duct tape to stop thieves from stripping wire copper wire near the lakes and West River Parkway.

And last winter 64-year-old Steven Wirtz and his dog died when a vehicle struck them along a thoroughfare darkened by stripped streetlights. Wirtz’s wife and neighbors blame wire thieves for his death.

ReMA’s lawsuit also details how thieves continue to challenge Twin Cities officials’ efforts. Bryan Dodds, deputy director of the Minneapolis Public Works Department and city engineer, stated in testimony cited by ReMA’s lawsuit that copper wire thefts cost Minneapolis $450,000 in repairs this year. St. Paul Police Deputy Chief Kurt Hallstrom, whose testimony is also cited in the lawsuit, said current laws make it difficult to prosecute copper wire thieves because it’s hard to prove where wire could be stolen from.

Gov. Tim Walz and St. Paul Mayor Melvin Carter tout the copper metal theft law as a solution, citing a letter signed by 38 mayors across Minnesota in support of the bill. But Neil Byce, a Minnesota employer who owns 14 recycling facilities across the state, told the Minnesota Star Tribune that the bill lacks input from recycled material professionals such as scrappers and auto shredders. Specifically, Byce said the $250 license fee could “ruin the recycling chain” without deterring copper wire thieves.

“This could be irrevocably catastrophic for our industry,” Byce said, explaining that the license fee could discourage citizens from recycling at facilities and encourage criminals to sell copper wire illegally or outside of Minnesota. “Lawmakers are well-intentioned, and they create laws to try and give law enforcement tools, but unfortunately ... there is a disconnect between lawmakers, law enforcement and the community that’s responsible for collecting all of this stuff.”

If successful, ReMA’s lawsuit would declare the copper metal law unconstitutional, require Commissioner Arnold to create rules and a license application form, allow businesses to apply for a license, and award ReMA and its attorneys money for damages.

Clarification: An earlier version of this story misstated which organization filed the lawsuit. It was the Recycled Materials’ Association’s Upper Midwest Chapter, not the entire organization.