The law requires businesses buying scrap metal to take a picture of the sellers, make a copy of their photo ID, get a vehicle description and license plate number.
Any metal valued at more than $50 must be paid with a check. People caught selling stolen metal could face up to 10 years in prison.
Scrap metal recyclers say the new law has helped cut down on illegal activity.
As part of the law, scrap metal recyclers will have to submit information electronically to a statewide database, which goes into effect February 1st.