Denver is attempting to reduce thefts of copper wire and other scrap metal through a new set of restrictions the City Council approved this week as it strives to address the growing problem while avoiding criminal penalties.
Under the regulations passed Monday, scrap metal recycling dealers can no longer pay cash for certain materials that include copper, bronze, brass and aluminum. They also can’t accept any materials delivered to them in something other than a vehicle. That means buyers will have to turn away walk-up sellers who use shopping carts, bikes and scooters to bring the materials.
The rules exempt purchases of coins, cans, and precious metals like gold and silver.
“What we are doing is targeting the underground economy that incentivizes theft of high-value materials — especially copper — which has led to thousands of dollars of theft around our city,” said Councilwoman Flor Alvidrez, one of the measure’s sponsors.
The council approved the ordinance 11-2. Councilwomen Shontel Lewis and Sarah Parady opposed the measure because of its requirement that dealers pay people using checks instead of cash. During an earlier committee meeting, Lewis said she worried that rule could impact low-income people who don’t have a bank account and rely on the cash payments.
Alvidrez and her fellow sponsor, Councilman Darrell Watson, responded that most people who don’t use banks and rely on income from scrap metal sales are selling recyclable materials, which are exempt under the bill. It’s rare to legally obtain copper, Watson said.
“There is not really a magical bin of copper just sitting on the side of (the street) where folks are pulling out copper for survival,” he said.
Under the ordinance, dealers also must cooperate with police, keep records of sales for 180 days and obtain a “junk dealer license.” The records have to include photos or videos of sellers and their license plates and copies of their IDs. Sellers must also sign an affidavit stating where they got the scrap metal.
The dealers are subject to a $5,000 fine for each day they are not in compliance.
The council passed similar rules related to catalytic converter theft in 2022. That ordinance required dealers and resellers to identify anyone looking to sell them the items second-hand and to report purchases to police within a day.
Since then, catalytic converter thefts have gone down by 95%, Watson said. The new scrap metal regulations are seeking to build on that success.
Neighborhoods north and northeast of downtown, which Watson represents in part, are some of the areas most impacted by the thefts. More than 2,100 metal thefts have been reported throughout the entire city since 2018.
Several local entities, including the Regional Transportation District and Denver Water, supported the measure. In a statement, RTD said copper wire thefts had cost the transit district more than $155,000 since 2022, not including losses of service due to related power outages along its rail lines.
“Any regulation that disincentivizes and discourages copper wire thefts and reduces service impacts to our customers is welcomed by RTD,” said Marta Sipeki, a spokesperson for the transit agency.
Denver Parks and Recreation reported $500,000 in losses, Watson said. Losing even a small amount of copper can cause massive damage, he said.
Local scrap metal dealers largely supported the measure, but several asked the council to exclude the cash payment prohibition.
A spokesperson for Denver Scrap Metal Recycling — which helped the city recover bronze pieces of the Martin Luther King Jr. “I Have a Dream” memorial in City Park after they were stolen last year — said it also wants to reduce scrap metal theft.
“We already know how to discourage theft and catch it when it occurs, and we have been implementing those practices for years,” says an emailed statement from CEO George Medley. “Banning cash payments disproportionately harms low-income individuals and families who rely on legitimate scrap metal recycling as a source of income.”
The new regulations go into effect immediately.
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