Recyclers pass policy on electronic reporting requirements

UNITED STATES August 12 2015 9:30 PM

NEW YORK (Scrap Register): At its Summer Board of Directors Meeting, the Institute of Scrap Recycling Industries (ISRI), the Voice of the Recycling Industry™, formally adopted a policy on laws requiring recyclers to electronically submit reports to law enforcement and/or government regarding sales information. The position is a reflection of the industry’s continued intent to be part of the solution to metals theft with recognition that many states and localities are embracing electronic reporting as a tool.

“Many state and local governments are turning to electronic reporting laws to combat metals theft,” said Robin Wiener, president of ISRI. “As is often the case, the devil is in the details of these laws. ISRI’s recently adopted policy provides support for law enforcement efforts to fight metals theft through electronic reporting laws that are specifically crafted to maintain data confidentiality and limit the use of the data to the specific requirements of the law. As always, ISRI and its members stand ready and willing to work with state and local lawmakers to adopt laws that benefit all stakeholders involved while reducing crime.

It is ISRI’s position that a reporting system must protect the legal rights of recyclers reporting the data and cannot impose a legal relationship onto recyclers with the data vendor. ISRI opposes any reporting requirement that would compel recyclers to waive legal rights or proprietary interests to use the state-mandated system.

The policy states:

Except where a Chapter or state has elected to opt out, ISRI supports the limited use of electronic reporting, provided the law is written in such a way as to restrict data reporting to the specific requirements of the law. The law must specifically state that:

--Strict confidentiality will be maintained with regard to any data submitted to the data reporting system;

--The recycler cannot be compelled to waive any legal rights or proprietary interests in and to the data as a condition of access to and use of the designated reporting system; and

--Any user agreement imposed by the system operator shall:

*Have strict security, confidentiality, and liability provisions for data providers that are equal or greater to those the contractor agrees to provide in its contract with the government, and indemnify data providers in the case of a data breach, backed by appropriate data protection insurance,

*Ensure the data provider retains ownership of its data; the contractor may not take ownership of or require data providers to grant contractor a license of any kind, and

*Require contractor to provide data providers with notice if there is a breach or if a subpoena has been issued for the data provider’s business information.

In 2014, researchers at The Council of State Governments, in collaboration with ISRI, conducted a study to determine if any legislation was having an impact on metals theft rates. The study found there is an insufficient tracking of metals theft data needed to properly analyze the effect of new state laws aimed at reducing the crime.