CHAPTER 1956. METAL RECYCLING ENTITIES

OCCUPATIONS CODE

TITLE 12. PRACTICES AND TRADES RELATED TO WATER, HEALTH, AND

SAFETY

SUBTITLE B. PRACTICES RELATED TO HEALTH AND SAFETY

CHAPTER 1956.

METAL RECYCLING ENTITIES

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 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.

Sec. 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.

Sec. 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.

(b-1) 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 to an amount that

exceeds 25 percent of the fee charged by the municipality or

political subdivision on January 1, 2007. This subsection

expires January 1, 2010.

(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

Sec. 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.

Sec. 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.

Sec. 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.

Sec. 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.

(d) Not later than March 1, 2008, the department shall submit to

both houses of the legislature a report on the actual costs

incurred by the department in administering this chapter. This

subsection expires January 1, 2009.

Added by Acts 2007, 80th Leg., R.S., Ch.

1316, Sec. 2, eff. September 1, 2007.

Sec. 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

Sec. 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.

Sec. 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.

Sec. 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.

Sec. 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

Sec. 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.

Sec. 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.

Sec. 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.

Sec. 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.

Sec. 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.

Sec. 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.

Sec. 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.

Sec. 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.

Sec. 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.

Sec. 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

Sec. 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.

Sec. 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.

Sec. 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.

Sec. 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.

Sec. 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.

Sec. 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.

Sec. 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.

Sec. 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.

Sec. 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.

Sec. 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.

Sec. 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.

Sec. 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.

Sec. 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.

Sec. 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.

Sec. 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.

Sec. 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.

Sec. 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.

Sec. 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.

Sec. 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

Sec. 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.

Sec. 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.

Sec. 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.

Sec. 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.

Sec. 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

Sec. 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.

Sec. 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.

Sec. 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

Sec. 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.

Sec. 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.

Sec. 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.