Law:Title 12. Practices And Trades Related To Water, Health, And Safety. Subtitle B. Practices Related To Health And Safety from Chapter 1956. Metal Recycling Entities (Texas)

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Subtitle B. Practices Related To Health And Safety

Contents

Chapter 1956. Metal Recycling Entities

Subchapter A. General Provisions

Section 1956.001.  Definitions.

In this chapter:

(1)  "Aluminum material" means a product made from aluminum, an aluminum alloy, or an aluminum by-product.  The term includes aluminum wiring and an aluminum beer keg but does not include another type of aluminum can used to contain a food or beverage.

(2)  "Bronze material" means:

(A)  a cemetery vase, receptacle, or memorial made from bronze;

(B)  bronze statuary; or

(C)  material readily identifiable as bronze, including bronze wiring.

(3)  "Commission" means the Public Safety Commission.

(4)  "Copper or brass material" means:

(A)  insulated or noninsulated copper wire or cable of the type used by a public utility or common carrier that contains copper or an alloy of copper or zinc;

(B)  a copper or brass item of a type commonly used in construction or by a public utility; or

(C)  copper pipe or copper tubing.

(5)  "Department" means the Texas Department of Public Safety.

(6)  "Director" means the public safety director.

(7)  "Metal recycling entity" means a business that is operated from a fixed location and is predominantly engaged in:

(A)  performing the manufacturing process by which scrap, used, or obsolete ferrous or nonferrous metal is converted into raw material products consisting of prepared grades and having an existing or potential economic value, by a method that in part requires the use of powered tools and equipment, including processes that involve processing, sorting, cutting, classifying, cleaning, baling, wrapping, shredding, shearing, or changing the physical form of that metal;

(B)  the use of raw material products described under Paragraph (A) in the manufacture of producer or consumer goods; or

(C)  purchasing or otherwise acquiring scrap, used, or obsolete ferrous or nonferrous metals for the eventual use of the metal for the purposes described by Paragraph (A) or (B).

(8)  "Personal identification document" means:

(A)  a valid driver's license issued by a state in the United States;

(B)  a United States military identification card; or

(C)   a personal identification certificate issued by the department under Section 521.101, Transportation Code, or a corresponding card or certificate issued by another state.

(9)  "Regulated material" means:

(A)  aluminum material;

(B)  bronze material;

(C)  copper or brass material; or

(D)  regulated metal.

(10)  "Regulated metal" means:

(A)  manhole covers;

(B)  guardrails;

(C)  metal cylinders  designed to contain compressed air, oxygen, gases, or liquids;

(D)  beer kegs made from metal other than aluminum;

(E)  historical markers or cemetery vases, receptacles, or memorials made from metal other than aluminum;

(F)  unused rebar;

(G)  street signs;

(H)  drain gates;

(I)  safes;

(J)  communication, transmission, and service wire or cable;

(K)  condensing or evaporator coils for heating or air conditioning units;

(L)  utility structures, including the fixtures and hardware;

(M)  aluminum or stainless steel containers designed to hold propane for fueling forklifts; and

(N)  metal railroad equipment, including tie plates, signal houses, control boxes, signs, signals, traffic devices, traffic control devices, traffic control signals, switch plates, e-clips, and rail tie functions.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 4, eff. June 1, 2003.

Amended by:

Acts 2007, 80th Leg., R.S., Ch. 1316, Sec. 2, eff. September 1, 2007.



Section 1956.002.  Exception.

This chapter does not apply to:

(1)  a purchase of regulated material from a public utility or a manufacturing, industrial, commercial, retail, or other seller that sells regulated material in the ordinary course of the seller's business;

(2)  a purchase of regulated material by a manufacturer whose primary business is the manufacture of iron and steel products made from melting scrap iron and scrap steel; or

(3)  the transport or hauling of recyclable materials to or from the metal recycling entity.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 4, eff. June 1, 2003.

Amended by:

Acts 2007, 80th Leg., R.S., Ch. 1316, Sec. 2, eff. September 1, 2007.



Section 1956.003.  Local Law.

(a) A county, municipality, or political subdivision of this state may adopt a rule, charter, or ordinance or issue an order or impose standards that are more stringent than but do not conflict with this chapter or rules adopted under this chapter.

(b)  A county, municipality, or political subdivision of this state may issue a license or permit to a business to allow the business to act as a metal recycling entity in that county or municipality and may impose a fee not to exceed $250 for the issuance or renewal of the license or permit.

(c)  A county, municipality, or political subdivision of this state that issues a license or permit to a business as authorized under Subsection (b) shall submit to the department in the manner required by the department information on each business that is issued a license or permit.

(d)  A municipality or political subdivision of this state, other than a county, may not increase the local license or permit fee imposed on a metal recycling facility unless the increase is approved by the local governing body.  A request for an increase in the local license or permit fee must be based on the costs associated with law enforcement and administration of the licensing or permitting program.  The municipality or political subdivision must submit a report to the department on the law enforcement and administrative costs associated with the fee increase.

(e)  A county may increase the local license or permit fee imposed on a metal recycling facility one additional time before the second anniversary of the date of the initial fee increase.  The fee increase must be based on the average cost charged by municipalities statewide.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 4, eff. June 1, 2003.

Amended by:

Acts 2007, 80th Leg., R.S., Ch. 1316, Sec. 2, eff. September 1, 2007.



Subchapter A-1. Powers And Duties

Section 1956.011.  Administration Of Chapter.

The department shall administer this chapter.

Added by Acts 2007, 80th Leg., R.S., Ch. 1316, Sec. 2, eff. September 1, 2007.



Section 1956.012.  Department Staff.

The department may employ administrative and clerical staff as necessary to carry out this chapter.

Added by Acts 2007, 80th Leg., R.S., Ch. 1316, Sec. 2, eff. September 1, 2007.



Section 1956.013.  Rules.

The commission may adopt rules to administer this chapter, including rules:

(1)  establishing minimum requirements for registration under this chapter; and

(2)  adopting forms required by this chapter.

Added by Acts 2007, 80th Leg., R.S., Ch. 1316, Sec. 2, eff. September 1, 2007.



Section 1956.014.  Fees; Reports.

(a) The commission by rule shall prescribe fees in reasonable amounts sufficient to cover the costs of administering this chapter, including fees for:

(1)  an initial application for a certificate of registration;

(2)  issuance of a certificate of registration;

(3)  issuance of a renewal certificate of registration; and

(4)  issuance of a duplicate certificate of registration or duplicate renewal certificate of registration.

(b)  The commission may not impose a fee for issuance of a certificate of registration that exceeds $250 annually.  The department shall report annually to the legislature, not later than December 1, any costs associated with administering this chapter that are not covered by the fees assessed under this chapter.

(c)  The department annually shall submit to both houses of the legislature a report on the number of metal recycling entities who have complied with the registration requirements under this chapter and the total number of metal recycling entities identified statewide.  The report must include the information on metal recycling entities submitted to the department by municipalities, counties, and other political subdivisions of this state.

Added by Acts 2007, 80th Leg., R.S., Ch. 1316, Sec. 2, eff. September 1, 2007.



Section 1956.015.  Statewide Electronic Reporting System. (a)

The department shall establish a statewide electronic reporting system to track the sales of regulated metal reported to the department under Section 1956.036.

(b)  The department shall post a summary of the reports provided to the department under Section 1956.036 on the department's Internet website.  The summary must include by county or region the frequency with which a person presents regulated materials for sale to a metal recycling entity.  The summary may not identify any person to which the metal recycling entity sells the regulated materials.

(c)  Subsection (b) does not apply to regulated material sold by a utility company, municipality, manufacturer, railroad, cemetery, cable or satellite entity, or other business entity that routinely has access to regulated metal.

(d)  The department shall maintain the confidentiality of information provided under this section that relates to the financial condition or business affairs of a metal recycling entity or that is otherwise commercially sensitive.  The confidential information is not subject to disclosure under Chapter 552, Government Code.

Added by Acts 2007, 80th Leg., R.S., Ch. 1316, Sec. 2, eff. September 1, 2007.



Subchapter A-2. Certificate Of Registration

Section 1956.021.  Registration Required.

A person may not act as a metal recycling entity or represent to the public that the person is a metal recycling entity unless the person is registered under this chapter.

Added by Acts 2007, 80th Leg., R.S., Ch. 1316, Sec. 2, eff. September 1, 2007.



Section 1956.022.  Issuance Of Certificate; Qualifications.

(a) The department shall issue a certificate of registration to an applicant who:

(1)  applies and pays a registration fee; and

(2)  presents any relevant evidence relating to the applicant's qualifications as required by commission rule.

(b)  The commission by rule may establish qualifications for the holder of a certificate of registration under this chapter, which may include accepting copies of a license or permit issued by a county or municipality authorizing a metal recycling entity to conduct business in that county or municipality.

Added by Acts 2007, 80th Leg., R.S., Ch. 1316, Sec. 2, eff. September 1, 2007.



Section 1956.023.  Term Of Certificate.

(a) A certificate of registration is valid for two years after the date of issuance.

(b)  The department shall adopt a system under which certificates of registration expire and are renewed on various dates.

(c)  Not later than the 45th day before the date a person's certificate of registration is scheduled to expire, the department shall send written notice of the impending expiration to the person at the person's last known address according to the records of the department.

(d)  A person whose certificate of registration has expired may not make a representation for which a certificate of registration is required under Section 1956.021 or perform collections services until the certificate has been renewed.

Added by Acts 2007, 80th Leg., R.S., Ch. 1316, Sec. 2, eff. September 1, 2007.



Section 1956.024.  Renewal Of Certificate.

(a) To renew a certificate of registration, a person must submit an application for renewal in the manner prescribed by the department.

(b)  A person who is otherwise eligible to renew a certificate of registration may renew an unexpired certificate by paying the required renewal fee to the department before the expiration date of the certificate.

(c)  A person whose certificate of registration has been expired for 90 days or less may renew the certificate by paying to the department a renewal fee that is equal to 1-1/2 times the normally required renewal fee.

(d)  A person whose certificate of registration has been expired for more than 90 days but less than one year may renew the certificate by paying to the department a renewal fee that is equal to two times the normally required renewal fee.

(e)  A person whose certificate of registration has been expired for one year or more may not renew the certificate.  The person may obtain a new certificate of registration by complying with the requirements and procedures, including the examination requirements, for an original certificate.

Added by Acts 2007, 80th Leg., R.S., Ch. 1316, Sec. 2, eff. September 1, 2007.



Subchapter A-3. Practice By Certificate Holders

Section 1956.031.  Notice To Sellers.

(a) A metal recycling entity shall at all times maintain in a prominent place in the entity's place of business, in open view to a seller of regulated material, a notice in two-inch lettering that:

(1)  includes the following language:

"A PERSON ATTEMPTING TO SELL ANY REGULATED MATERIAL MUST PRESENT SUFFICIENT IDENTIFICATION AND WRITTEN PROOF OF OWNERSHIP REQUIRED BY STATE LAW."

"WARNING:  STATE LAW PROVIDES A CRIMINAL PENALTY FOR A PERSON WHO INTENTIONALLY PROVIDES A FALSE DOCUMENT OF IDENTIFICATION OR OTHER FALSE INFORMATION TO A METAL RECYCLING ENTITY WHILE ATTEMPTING TO SELL ANY REGULATED MATERIAL."; and

(2)  states the metal recycling entity's usual business hours.

(b)  The notice required by this section may be contained on a sign that contains another notice if the metal recycling entity is required to display another notice under applicable law.

Added by Acts 2007, 80th Leg., R.S., Ch. 1316, Sec. 2, eff. September 1, 2007.



Section 1956.032.  Information Provided By Seller.

(a) Except as provided by Subsection (f), a person attempting to sell regulated material to a metal recycling entity shall:

(1)  display to the metal recycling entity the person's personal identification document;

(2)  provide to the metal recycling entity the make, model, and license plate number of the motor vehicle used to transport the regulated material; and

(3)  either:

(A)  present written documentation evidencing that the person is the legal owner or is lawfully entitled to sell the regulated material; or

(B)  sign a written statement provided by the metal recycling entity that the person is the legal owner of or is lawfully entitled to sell the regulated material offered for sale.

(b)  A person required by a municipality to prepare a signed statement consisting of the information required by Subsection (a)(3) may use the statement required by the municipality to comply with Subsection (a)(3).

(c)  The metal recycling entity or the entity's agent shall visually verify the accuracy of the identification presented by the seller at the time of the purchase of regulated material and make a copy of the identification to be maintained by the entity in the entity's records, except as otherwise provided by Subsection (f).

(d)  The metal recycling entity or the entity's agent for recordkeeping purposes may photograph the seller's entire face, not including any hat, and obtain the name of the seller's employer.

(e)  The metal recycling entity or the entity's agent for recordkeeping purposes may take a photograph of the motor vehicle of the seller in which the make, model, and license plate number of the motor vehicle are identifiable in lieu of the information required under Subsection (a)(3).

(f)  The metal recycling entity is not required to make a copy of the identification as required under Subsection (c) or collect the information required under Subsection (a)(3) if:

(1)  the seller signs the written statement as required under Subsection (a)(3);

(2)  the seller has previously provided the information required under Subsection (a); and

(3)  the previously provided information has not changed.

Added by Acts 2007, 80th Leg., R.S., Ch. 1316, Sec. 2, eff. September 1, 2007.



Section 1956.033.  Record Of Purchase.

(a) Each metal recycling entity in this state shall keep an accurate electronic record or an accurate and legible written record of each purchase made in the course of the entity's business from an individual of:

(1)  copper or brass material;

(2)  bronze material;

(3)  aluminum material; or

(4)  regulated metal.

(b)  The record must be in English and include:

(1)  the place and date of the purchase;

(2)  the name and address of each individual from whom the regulated material is purchased or obtained;

(3)  the identifying number of the seller's personal identification document;

(4)  a description made in accordance with the custom of the trade of the type and quantity of regulated material purchased; and

(5)  the information required by Section 1956.032(a)(3).

Added by Acts 2007, 80th Leg., R.S., Ch. 1316, Sec. 2, eff. September 1, 2007.



Section 1956.034.  Preservation Of Records.

A metal recycling entity shall preserve each record required by Sections 1956.032 and 1956.033 until the third anniversary of the date the record was made.

Added by Acts 2007, 80th Leg., R.S., Ch. 1316, Sec. 2, eff. September 1, 2007.



Section 1956.035.  Inspection Of Records By Peace Officer.

(a) On request, a metal recycling entity shall permit a peace officer of this state to inspect, during the entity's usual business hours:

(1)  a record required by Section 1956.033; or

(2)  regulated material in the entity's possession.

(b)  The inspecting officer shall inform the entity of the officer's status as a peace officer.

Added by Acts 2007, 80th Leg., R.S., Ch. 1316, Sec. 2, eff. September 1, 2007.



Section 1956.036.  Furnishing Of Report To Department.

(a) Except as provided by Subsection (b), not later than the seventh day after the date of the purchase or other acquisition of material for which a record is required under Section 1956.033, a metal recycling entity shall send by facsimile or electronic mail to or file with the department a report containing the information required to be recorded under that section.

(b)  If a metal recycling entity purchases bronze material that is a cemetery vase, receptacle, memorial, or statuary or a pipe that can reasonably be identified as aluminum irrigation pipe, the entity shall:

(1)  not later than the close of business on the entity's first working day after the purchase date, notify the department; and

(2)  not later than the fifth day after the purchase date, mail to or file with the department a report containing the information required to be recorded under Section 1956.033.

(c)  Subsection (b) does not apply to a purchase from:

(1)  the manufacturer or fabricator of the material or pipe;

(2)  a seller bearing a bill of sale for the material or pipe; or

(3)  the owner of the material or pipe.

Added by Acts 2007, 80th Leg., R.S., Ch. 1316, Sec. 2, eff. September 1, 2007.



Section 1956.037.  Placement Of Items On Hold.

(a) A metal recycling entity may not dispose of, process, sell, or remove from the premises an item of regulated metal unless:

(1)  the entity acquired the item more than 72 hours, excluding weekends and holidays, before the disposal, processing, sale, or removal; or

(2)  the entity purchased the item from a manufacturing, industrial, commercial, retail, or other seller that sells regulated material in the ordinary course of its business.

(b)  A peace officer who has reasonable suspicion to believe that an item of regulated material in the possession of a metal recycling entity is stolen may place the item on hold by issuing to the entity a written notice that:

(1)  specifically identifies the item alleged to be stolen and subject to the hold; and

(2)  informs the entity of the requirements of Subsection (c).

(c)  On receiving the notice, the entity may not, except as provided by Subsection (e), process or remove from the entity's premises the identified item before the 60th day after the date the notice is issued unless the hold is released at an earlier time in writing by a peace officer of this state or a court order.

(d)  After the holding period expires, the entity may dispose of the item unless disposition violates a court order.

(e)  If a hold is placed on a purchase of regulated material, a metal recycling entity may not dispose of, process, sell, or remove from the premises any item from the purchased material unless the hold on the material is released.

Added by Acts 2007, 80th Leg., R.S., Ch. 1316, Sec. 2, eff. September 1, 2007.



Section 1956.038.  Prohibited Acts.

A person may not, with the intent to deceive:

(1)  display to a metal recycling entity a false or invalid personal identification document in connection with the person's attempted sale of regulated material;

(2)  make a false, material statement or representation to a metal recycling entity in connection with:

(A)  that person's execution of a written statement required by Section 1956.032(a)(3); or

(B)  the entity's efforts to obtain the information required under Section 1956.033(b); or

(3)  display or provide to a metal recycling entity any information required under Section 1956.032 that the person knows is false or invalid.

Added by Acts 2007, 80th Leg., R.S., Ch. 1316, Sec. 2, eff. September 1, 2007.



Section 1956.039.  Hours For Purchasing Material.

(a) Subject to Subsection (b), a county, municipality, or political subdivision may establish the hours during which a metal recycling entity may purchase regulated material.

(b)  A metal recycling entity may not purchase from the general public regulated material:

(1)  more than 15 consecutive hours in one day; or

(2)  later than 9 p.m.

Added by Acts 2007, 80th Leg., R.S., Ch. 1316, Sec. 2, eff. September 1, 2007.



Section 1956.040.  Criminal Penalty. (a)

A person commits an offense if the person knowingly violates Section 1956.038.

An offense under this subsection is a Class A misdemeanor unless it is shown on trial of the offense that the person has previously been convicted of a violation of this subchapter, in which event the offense is a state jail felony.

(b)  A person commits an offense if the person knowingly buys stolen regulated material.  An offense under this subsection is a Class A misdemeanor unless it is shown on trial of the offense that the person has previously been convicted under this subsection, in which event the offense is a state jail felony.

(c)  A person commits an offense if the person knowingly sells stolen regulated material.  An offense under this subsection is a state jail felony unless it is shown on trial of the offense that the person has previously been convicted under this subsection, in which event the offense is a third degree felony.

(d)  On the conviction of a metal recycling entity for an offense punishable under Subsection (b), a court, in addition to imposing any other applicable penalty, may order that the entity cease doing business as a metal recycling entity for a period not to exceed:

(1)  30 days from the date of the order for each violation that forms the basis of the conviction for a first offense; and

(2)  180 days from the date of the order for each violation that forms the basis of the conviction if it is shown on trial of the offense that the person has previously been convicted under this section.

(e)  If conduct that constitutes an offense under this section also constitutes an offense under any other law, the actor may be prosecuted under this section or the other law.

Added by Acts 2007, 80th Leg., R.S., Ch. 1316, Sec. 2, eff. September 1, 2007.



Subchapter B. Sale Of Crafted Precious Metal To Dealers

Section  1956.051.  Definitions.

In this subchapter:

(1)  "Crafted precious metal" means jewelry, silverware, an art object, or another object, other than a coin or commemorative medallion, made in whole or in part from precious metal.

(2)  "Dealer" means a person who engages in the business of purchasing and selling crafted precious metal.

(3)  "Department" means the Texas Department of Public Safety.

(4)  "Precious metal" means gold, silver, platinum, palladium, iridium, rhodium, osmium, ruthenium, or an alloy of those metals.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 4, eff. June 1, 2003.



Section  1956.052. 

 APPLICABILITY OF

Subchapter

. This subchapter applies only to crafted precious metal that has been sold or used primarily for personal, family, or household purposes.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 4, eff. June 1, 2003.



Section  1956.053.  Exception: Precious Metal Extracted, Recovered, Or Salvaged From Industrial By-products Or Industrial Waste Products.

This subchapter does not apply to a person whose purchase or sale of precious metal or a product made of precious metal is merely incidental to the person's business of extracting, recovering, or salvaging precious metal from industrial by-products or industrial waste products.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 4, eff. June 1, 2003.



Section  1956.054.  Exception: Dental, Pharmaceutical, Or Medical Application Of Crafted Precious Metal.

This subchapter does not apply to a dental, pharmaceutical, or medical application of crafted precious metal.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 4, eff. June 1, 2003.



Section  1956.055.  Exception: Crafted Precious Metal Acquired From Another Dealer Who Previously Made Required Reports.

This subchapter does not apply to crafted precious metal acquired in good faith in a transaction involving the stock-in-trade of another dealer who previously made the reports concerning that metal as required by this subchapter if:

(1)  the selling dealer delivers to the acquiring dealer a written document stating that the reports have been made;

(2)  the acquiring dealer submits a copy of the statement to the chief of police of the municipality or the sheriff of the county in which the selling dealer is located; and

(3)  each dealer involved in the transaction retains a copy of the statement until the third anniversary of the date of the transaction.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 4, eff. June 1, 2003.



Section  1956.056.  Exception: Crafted Precious Metal Acquired In Dissolution Or Liquidation Sale.

This subchapter does not apply to crafted precious metal acquired in a nonjudicial sale, transfer, assignment, assignment for the benefit of creditors, or consignment of the assets or stock-in-trade, in bulk, or a substantial part of those assets, of an industrial or commercial enterprise, other than a dealer, for the voluntary dissolution or liquidation of the seller's business, or for disposing of an excessive quantity of personal property, or property that has been acquired in a nonjudicial sale or transfer from an owner other than a dealer, the seller's entire household of personal property, or a substantial part of that property, if the dealer:

(1)  gives written notice to the chief of police of the municipality or the sheriff of the county in which the dealer's business is located that a reporting exemption is being claimed under this section;

(2)  retains in the dealer's place of business, until the third anniversary of the date of the transaction, a copy of the bill of sale, receipt, inventory list, or other transfer document; and

(3)  makes the record retained available for inspection by a peace officer.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 4, eff. June 1, 2003.



Section  1956.057.  Exception: Crafted Precious Metal Acquired In Judicial Sale.

This subchapter does not apply to crafted precious metal acquired in a sale made:

(1)  by any public officer in the officer's official capacity as a trustee in bankruptcy, executor, administrator, receiver, or public official acting under judicial process or authority; or

(2)  on the execution of, or by virtue of, any process issued by a court.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 4, eff. June 1, 2003.



Section  1956.058.  Exception: Crafted Precious Metal Acquired As Payment For Other Crafted Precious Metal By Person In Business Of Selling To Consumers.

This subchapter does not apply to crafted precious metal acquired in good faith as part or complete payment for other crafted precious metal by a person whose principal business is primarily that of selling directly to the consumer crafted precious metal that has not been subject to a prior sale.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 4, eff. June 1, 2003.



Section  1956.059.  Exception: Crafted Precious Metal Acquired From Or Reported To Governmental Agency.

This subchapter does not apply to crafted precious metal:

(1)  acquired as surplus property from the United States, a state, a subdivision of a state, or a municipal corporation; or

(2)  reported by a dealer as an acquisition or a purchase, or reported as destroyed or otherwise disposed of, to:

(A)  a state agency under another law of this state; or

(B)  a municipal or county office or agency under another law of this state or a municipal ordinance.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 4, eff. June 1, 2003.



Section  1956.060.  Exception: Crafted Precious Metal Acquired By Person Licensed Under Texas Pawnshop Act.

This subchapter does not apply to crafted precious metal acquired by a person licensed under Chapter 371, Finance Code.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 4, eff. June 1, 2003.



Section  1956.061.  Effect On Other Laws And Ordinances.

This subchapter does not:

(1)  excuse noncompliance with another state law or municipal ordinance covering the reporting, holding, or releasing of crafted precious metal;

(2)  prohibit a municipality from enacting, amending, or enforcing an ordinance relating to a dealer; or

(3)  supersede a municipal ordinance except to the extent the ordinance does not require reporting for transactions involving crafted precious metal.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 4, eff. June 1, 2003.



Section  1956.062.  Report Of Purchase Required.

(a) A dealer shall, as required by Section 1956.063, report all identifiable crafted precious metal that the dealer purchases, takes in trade, accepts for sale on consignment, or accepts for auction.

(b)  Before crafted precious metal is offered for sale or exchange, a dealer must notify each person intending to sell or exchange the metal that, before the dealer may accept any of the person's property, the person must file with the dealer a list describing all of the person's crafted precious metal to be accepted by the dealer. The list must contain:

(1)  the proposed seller's name and address;

(2)  a complete and accurate description of the crafted precious metal; and

(3)  the proposed seller's certification that the information is true and complete.

(c)  The dealer shall record the proposed seller's driver's license number or department personal identification certificate number on physical presentation of the license or personal identification certificate by the seller. The record must accompany the list.

(d)  The dealer shall:

(1)  provide to a peace officer, on demand, the list required by Subsection (b); and

(2)  mail or deliver a complete copy of the list to the chief of police or the sheriff as provided by Section 1956.063 not later than 48 hours after the list is filed with the dealer.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 4, eff. June 1, 2003.



Section  1956.063.  Form Of Report; Filing.

(a) A report required by this subchapter must comply with this section unless a similar report is required by another state law or a municipal ordinance, in which event the required report must comply with the applicable law or ordinance.

(b)  If a transaction regulated by this subchapter occurs in a municipality that maintains a police department, the original and a copy of the report required by this subchapter shall be submitted to the municipality's chief of police. If the transaction does not occur in such a municipality, the original and a copy of the report shall be submitted to the sheriff of the county in which the transaction occurs.

(c)  The dealer shall submit the report on a form prescribed by the district attorney or person performing the duties of district attorney of the county in which the transaction occurs.

(d)  The dealer shall retain a copy of the report until the third anniversary of the date the report is filed.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 4, eff. June 1, 2003.



Section  1956.064.  Required Retention Of Crafted Precious Metal.

(a) A dealer may not melt, deface, alter, or dispose of crafted precious metal that is the subject of a report required by this subchapter before the 11th day after the date the report is filed unless:

(1)  the peace officer to whom the report is submitted, for good cause, authorizes disposition of the metal;

(2)  the dealer obtains the name, address, and description of the buyer and retains a record of that information; or

(3)  the dealer is a pawnbroker and the disposition is the redemption of pledged property by the pledgor.

(b)  A dealer who retains information under Subsection (a)(2) shall make that information available for inspection by any peace officer.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 4, eff. June 1, 2003.



Section  1956.065.  Inspection Of Crafted Precious Metal By Peace Officer.

(a) A dealer shall make crafted precious metal purchased by the dealer available for inspection by a peace officer during regular business hours while in the dealer's possession.

(b)  Information obtained under this section is confidential except for use in a criminal investigation or prosecution or a civil court proceeding.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 4, eff. June 1, 2003.



Section  1956.066.  Purchase From Minor.

(a) A dealer may not purchase crafted precious metal from a person younger than 18 years of age unless the seller delivers to the dealer before the purchase a written statement from the seller's parent or legal guardian consenting to the transaction.

(b)  The dealer shall retain the statement with the records required to be kept under this subchapter. The dealer may destroy the statement after the later of:

(1)  the date the item is sold; or

(2)  the first anniversary of the date the dealer purchased the item.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 4, eff. June 1, 2003.



Section  1956.067.  Purchase At Temporary Location Of Dealer.

(a) A dealer who conducts business at a temporary location for a period of less than 90 days may not engage in the business of buying precious metal or used items made of precious metal unless, within a 12-month period at least 30 days before the date on which each purchase is made, the person has filed:

(1)  a registration statement with the department; and

(2)  a copy of the registration statement with the local law enforcement agency of:

(A)  the municipality in which the temporary location is located; or

(B)  if the temporary location is not located in a municipality, the county in which the temporary location is located.

(b)  The registration statement must contain:

(1)  the name and address of the dealer;

(2)  the location where business is to be conducted;

(3)  if the dealer is an association, the name and address of each member of the association;

(4)  if the dealer is a corporation, the name and address of each officer and director of the corporation; and

(5)  other relevant information required by the department.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 4, eff. June 1, 2003.



Section  1956.068.  Purchase Of Melted Items.

A dealer, in the course of business, may not purchase from a person other than a manufacturer of or a regular dealer in crafted precious metal an object formed as the result of the melting of crafted precious metal.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 4, eff. June 1, 2003.



Section  1956.069.  Criminal Penalty.

(a) A dealer commits an offense if the dealer:

(1)  fails to make or permit inspection of a report as required by Section 1956.062 or 1956.063;

(2)  disposes of crafted precious metal or fails to make a record available for inspection by a peace officer as required by Section 1956.064;

(3)  fails to obtain or retain a statement as required by Section 1956.066;

(4)  fails to file a registration statement as required by Section 1956.067; or

(5)  purchases an object in violation of Section 1956.068.

(b)  An offense under this section is a Class B misdemeanor.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 4, eff. June 1, 2003.



Subchapter C. Restrictions On Sale Of Certain Items To Metal Recycling Entities

Section  1956.101.  Definitions.

In this subchapter:

(1)  Repealed by Acts 2007, 80th Leg., R.S., Ch. 1316, Sec. 5, eff. September 1, 2007.

(2)  "Motor vehicle" has the meaning assigned by Section 541.201, Transportation Code.

(3)  "PCB-containing capacitor" means a capacitor that contains polychlorinated biphenyls and is regulated under the federal Toxic Substances Control Act (15 U.S.C. Section 2601 et seq.).

(4)  "Person" means an individual, corporation, partnership, sole proprietorship, or other business entity.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 4, eff. June 1, 2003.

Amended by:

Acts 2007, 80th Leg., R.S., Ch. 1316, Sec. 5, eff. September 1, 2007.



Section  1956.102.  Exception.

This subchapter does not apply to a sale or transfer by or on behalf of a metal recycling entity.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 4, eff. June 1, 2003.



Section  1956.103.  Restrictions On Transfer Of Certain Property.

(a) A person may not sell or otherwise transfer to a metal recycling entity:

(1)  a lead-acid battery, fuel tank, or PCB-containing capacitor that is included with another type of scrap, used, or obsolete metal without first obtaining from the metal recycling entity a written and signed acknowledgment that the scrap, used, or obsolete metal includes one or more lead-acid batteries, fuel tanks, or PCB-containing capacitors;

(2)  any of the following items that contain or enclose a lead-acid battery, fuel tank, or PCB-containing capacitor or of which a lead-acid battery, fuel tank, or PCB-containing capacitor is a part:

(A)  a motor vehicle;

(B)  a motor vehicle that has been junked, flattened, dismantled, or changed so that it has lost its character as a motor vehicle;

(C)  an appliance; or

(D)  any other item of scrap, used, or obsolete metal; or

(3)  a motor vehicle or a motor vehicle that has been junked, flattened, dismantled, or changed so that it has lost its character as a motor vehicle if the motor vehicle includes, contains, or encloses a tire or scrap tire.

(b)  Subsection (a)(3) does not apply to the sale or other transfer of a motor vehicle or a junked, flattened, dismantled, or changed motor vehicle from another state.

(c)  Subsection (a) does not apply to a fuel tank that has been completely drained and rendered unusable in accordance with Texas Commission on Environmental Quality rules regardless of whether the fuel tank is attached to a motor vehicle.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 4, eff. June 1, 2003.

Amended by:

Acts 2005, 79th Leg., Ch. 47, Sec. 1, eff. September 1, 2005.



Section 1956.104.  Notice Of Restrictions.

A metal recycling entity shall post in a conspicuous location a notice that:

(1)  is readily visible to a person selling material to the metal recycling entity;

(2)  is at least 24 inches horizontally by 18 inches vertically; and

(3)  contains the following language:

TEXAS LAW PROHIBITS:

1.  THE SALE OF A WHOLE, FLATTENED, OR JUNKED MOTOR VEHICLE, AN APPLIANCE, OR ANY OTHER SCRAP METAL ITEM CONTAINING A LEAD-ACID BATTERY, FUEL TANK THAT HAS NOT BEEN COMPLETELY DRAINED AND RENDERED UNUSABLE, OR PCB-CONTAINING CAPACITOR; AND

2.  THE SALE OF LEAD-ACID BATTERIES, FUEL TANKS THAT HAVE NOT BEEN COMPLETELY DRAINED AND RENDERED UNUSABLE, OR PCB-CONTAINING CAPACITORS INCLUDED WITH OTHER SCRAP METALS WITHOUT OUR PRIOR WRITTEN ACKNOWLEDGMENT.

VIOLATION OF THIS LAW IS A MISDEMEANOR.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 4, eff. June 1, 2003.

Amended by:

Acts 2005, 79th Leg., Ch. 47, Sec. 2, eff. September 1, 2005.



Section  1956.105.  Criminal Penalty.

(a) A person commits an offense if the person violates this subchapter.

(b)  An offense under this section is a misdemeanor punishable by:

(1)  a fine of not more than $1,000;

(2)  confinement in the county jail for not more than 60 days; or

(3)  both the fine and the confinement.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 4, eff. June 1, 2003.



Subchapter D. Disciplinary Procedures

Section 1956.151.  Denial Of Certificate; Disciplinary Action.

The department shall deny an application for a certificate of registration, suspend or revoke a certificate of registration, or reprimand a person who is registered under this chapter if the person:

(1)  obtains a certificate of registration by means of fraud, misrepresentation, or concealment of a material fact;

(2)  sells, barters, or offers to sell or barter a certificate of registration;

(3)  violates a rule adopted under this chapter; or

(4)  violates Section 1956.021.

Added by Acts 2007, 80th Leg., R.S., Ch. 1316, Sec. 4, eff. September 1, 2007.



Section 1956.152.  Investigation.

Within the limits of available resources, the department may investigate:

(1)  a person who engages in a practice that violates this chapter; and

(2)  a complaint filed with the department against a person registered under this chapter.

Added by Acts 2007, 80th Leg., R.S., Ch. 1316, Sec. 4, eff. September 1, 2007.



Section 1956.153.  Hearing.

(a) A person whose application for a certificate of registration is denied, whose certificate of registration is suspended or revoked, or who is reprimanded is entitled to a hearing before the department if the person submits to the department a written request for the hearing.

(b)  A hearing is governed by department rules for a contested hearing and by Chapter 2001, Government Code.

Added by Acts 2007, 80th Leg., R.S., Ch. 1316, Sec. 4, eff. September 1, 2007.



Subchapter E. Other Penalties And Enforcement Provisions

Section 1956.201.  Enforcement Proceedings; Injunction.

(a) The department, the attorney general, or the district, county, or city attorney for the county or municipality in which an alleged violation of this chapter occurs may, on receipt of a verified complaint, bring an appropriate administrative or judicial proceeding to enforce this chapter or a rule adopted under this chapter.

(b)  The attorney general or an attorney representing the state may initiate an action for an injunction to prohibit a person from violating this chapter or a rule adopted under this chapter.

Added by Acts 2007, 80th Leg., R.S., Ch. 1316, Sec. 4, eff. September 1, 2007.



Section 1956.202.  Civil Penalty.

(a) Except as provided by Subsection (d), a person who violates this chapter or a rule adopted under this chapter is liable to this state for a civil penalty of not more than $1,000 for each violation.

(b)  The amount of the penalty shall be based on:

(1)  the seriousness of the violation;

(2)  the history of previous violations;

(3)  the amount necessary to deter a future violation; and

(4)  any other matter that justice may require.

(c)  The attorney general may sue to collect a civil penalty under this section.  In the suit the attorney general may recover, on behalf of the state, the reasonable expenses incurred in obtaining the penalty, including investigation and court costs, reasonable attorney's fees, witness fees, and other expenses.

(d)  A civil penalty may not be assessed under this section for conduct described by Section 1956.038.

Added by Acts 2007, 80th Leg., R.S., Ch. 1316, Sec. 4, eff. September 1, 2007.



Section 1956.203.  Criminal Penalty For Certain Solicitation.

(a) A person commits an offense if the person solicits the purchase of regulated material at a location other than a business location at which the material is produced as a by-product in the ordinary course of that business.

(b)  An offense under this section is a Class B misdemeanor.

Added by Acts 2007, 80th Leg., R.S., Ch. 1316, Sec. 4, eff. September 1, 2007.


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