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AN ACT
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relating to the regulation of metal recycling entities; imposing an |
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administrative penalty; amending provisions subject to a criminal |
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penalty. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 1956.001, Occupations Code, is amended |
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by amending Subdivisions (4), (9), and (10) and adding Subdivision |
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(6-a) to read as follows: |
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(4) "Copper or brass material" means: |
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(A) a power inverter or insulated or |
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noninsulated copper wire or cable that contains copper or an alloy |
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of copper or zinc and is of the type used by: |
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(i) a public utility or common carrier; |
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(ii) a telecommunications provider as |
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defined by Section 51.002, Utilities Code; |
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(iii) a cable service provider as defined |
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by Section 66.002, Utilities Code; or |
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(iv) a video service provider as defined by |
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Section 66.002, Utilities Code [that contains copper or an alloy of
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copper or zinc]; |
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(B) a copper or brass item of a type commonly used |
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in construction or by: |
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(i) a public utility; |
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(ii) a telecommunications provider as |
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defined by Section 51.002, Utilities Code; |
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(iii) a cable service provider as defined |
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by Section 66.002, Utilities Code; or |
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(iv) a video service provider as defined by |
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Section 66.002, Utilities Code; or |
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(C) copper pipe or copper tubing. |
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(6-a) "Lead material" means: |
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(A) a commercial grade lead battery, lead-acid |
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battery, or spiral cell battery; or |
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(B) a material or an item readily identifiable as |
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being made of or containing lead. |
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(9) "Regulated material" means: |
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(A) aluminum material; |
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(B) bronze material; |
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(C) copper or brass material; [or] |
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(D) lead material; or |
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(E) regulated metal. |
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(10) "Regulated metal" means: |
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(A) manhole covers; |
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(B) guardrails; |
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(C) metal cylinders designed to contain |
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compressed air, oxygen, gases, or liquids; |
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(D) beer kegs made from metal other than |
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aluminum; |
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(E) historical markers or cemetery vases, |
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receptacles, or memorials made from metal other than aluminum; |
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(F) unused rebar; |
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(G) street signs; |
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(H) drain gates; |
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(I) safes; |
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(J) communication, transmission, and service |
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wire or cable; |
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(K) condensing or evaporator coils for central |
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heating or air conditioning units; |
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(L) utility structures, including the fixtures |
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and hardware; |
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(M) aluminum or stainless steel containers |
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designed to hold propane for fueling forklifts; |
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(N) metal railroad equipment, including tie |
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plates, signal houses, control boxes, signs, signals, traffic |
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devices, traffic control devices, traffic control signals, switch |
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plates, e-clips, and rail tie functions; |
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(O) catalytic converters not attached to a |
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vehicle; |
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(P) fire hydrants; |
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(Q) metal bleachers or other seating facilities |
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used in recreational areas or sporting arenas; |
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(R) any metal item clearly and conspicuously |
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marked with any form of the name, initials, or logo of a |
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governmental entity, utility, cemetery, or railroad; |
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(S) insulated utility, communications, or |
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electrical wire that has been burned in whole or in part to remove |
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the insulation; |
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(T) backflow valves; [and] |
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(U) metal in the form of commonly recognized |
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products of the industrial metals recycling process, including |
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bales, briquettes, billets, sows, ingots, pucks, and chopped or |
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shredded metals; and |
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(V) commercial grade lead batteries or lead-acid |
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batteries. |
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SECTION 2. Section 1956.002, Occupations Code, is amended |
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to read as follows: |
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Sec. 1956.002. EXCEPTION. This chapter does not apply to: |
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(1) a purchase of regulated material from a public |
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utility, a telecommunications provider as defined by Section |
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51.002, Utilities Code, a cable service provider as defined by |
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Section 66.002, Utilities Code, a video service provider as defined |
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by Section 66.002, Utilities Code, or a manufacturing, industrial, |
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commercial, retail, or other seller that sells regulated material |
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in the ordinary course of the seller's business; |
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(2) a purchase of regulated material by a manufacturer |
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whose primary business is the manufacture of iron and steel |
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products made from melting scrap iron and scrap steel; or |
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(3) the transport or hauling of recyclable materials |
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to or from the metal recycling entity. |
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SECTION 3. Section 1956.017(b), Occupations Code, is |
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amended to read as follows: |
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(b) The advisory committee consists of 15 [12] members |
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appointed by the director as follows: |
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(1) one representative of the department; |
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(2) two representatives of local law enforcement |
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agencies located in different municipalities, each with a |
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population of 500,000 or more; |
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(3) two representatives of local law enforcement |
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agencies located in different municipalities, each with a |
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population of 200,000 or more but less than 500,000; |
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(4) one representative of a local law enforcement |
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agency located in a municipality with a population of less than |
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200,000; |
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(5) five [four] representatives of metal recycling |
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entities; [and] |
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(6) two members who represent industries that are |
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impacted by theft of regulated material; |
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(7) one sheriff of a county with a population of |
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500,000 or more; and |
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(8) one sheriff of a county with a population of less |
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than 500,000. |
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SECTION 4. Section 1956.033(b), Occupations Code, is |
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amended to read as follows: |
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(b) The record must be in English and include: |
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(1) the place, [and] date, and amount of the purchase; |
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(2) the name and address of the seller in possession of |
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the regulated material purchased; |
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(3) the identifying number of the seller's personal |
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identification document; |
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(4) a description made in accordance with the custom |
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of the trade of the commodity type and quantity of regulated |
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material purchased; |
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(5) the information required by Sections |
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1956.032(a)(2) and (3); |
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(6) as applicable: |
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(A) the identifying number of the seller's air |
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conditioning and refrigeration contractor license displayed under |
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Section 1956.032(a)(4)(A); |
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(B) a copy of the seller's air conditioning and |
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refrigeration technician registration displayed under Section |
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1956.032(a)(4)(B); |
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(C) a copy of the documentation described by |
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Section 1956.032(a)(4)(C); or |
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(D) a copy of the documentation described by |
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Section 1956.032(a)(4)(D); |
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(7) if applicable, a copy of the documentation |
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described by Section 1956.032(a)(5); [and] |
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(8) a copy of the documentation described by Section |
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1956.032(g); and |
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(9) a copy of the documentation described by Section |
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1956.0381(b). |
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SECTION 5. Section 1956.035(a), Occupations Code, is |
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amended to read as follows: |
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(a) On request, a metal recycling entity shall permit a |
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peace officer of this state, a representative of the department, or |
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a representative of a county, municipality, or other political |
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subdivision that issues a license or permit under Section |
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1956.003(b) to inspect, during the entity's usual business hours: |
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(1) a record required by Section 1956.033; |
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(2) a digital photograph or video recording required |
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by Section 1956.0331; [or] |
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(3) regulated material in the entity's possession; or |
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(4) an application for a cash transaction card |
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submitted to the entity. |
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SECTION 6. Section 1956.036, Occupations Code, is amended |
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by amending Subsection (a) and adding Subsection (d-1) to read as |
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follows: |
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(a) Except as provided by Subsections (b) and (d), not later |
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than the close of business on a metal recycling entity's second |
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working day after the date of the purchase or other acquisition of |
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material for which a record is required under Section 1956.033, the |
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entity shall send an electronic transaction report to the |
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department via the department's Internet website. Except as |
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provided by Subsection (d-1), the [The] report must contain the |
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information required to be recorded under Section 1956.033. |
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(d-1) A metal recycling entity is not required to include in |
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a transaction report required by this section: |
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(1) the amount of the purchase; or |
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(2) a copy of the documentation described by Section |
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1956.0381(b). |
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SECTION 7. Section 1956.038, Occupations Code, is amended |
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by adding Subsection (a-1) to read as follows: |
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(a-1) A metal recycling entity may only pay for a purchase |
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of regulated material in the manner provided by Section 1956.0381. |
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SECTION 8. Subchapter A-3, Chapter 1956, Occupations Code, |
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is amended by adding Sections 1956.0381, 1956.0382, and 1956.041 to |
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read as follows: |
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Sec. 1956.0381. PAYMENT BY METAL RECYCLING ENTITY. (a) A |
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metal recycling entity may pay for a purchase of regulated material |
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only by: |
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(1) cash if the seller has been issued a cash |
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transaction card under Section 1956.0382, unless the metal |
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recycling entity is prohibited from paying in cash under Section |
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1956.038(b); |
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(2) debit card if the seller has been issued a cash |
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transaction card under Section 1956.0382; |
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(3) check; |
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(4) money order; or |
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(5) direct deposit by electronic funds transfer. |
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(b) A metal recycling entity shall include in the record of |
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purchase required by Section 1956.033, as applicable, a copy of: |
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(1) the seller's cash transaction card or approved |
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application for a cash transaction card if the entity paid for a |
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purchase of regulated material by cash; |
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(2) the debit card receipt and the seller's cash |
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transaction card or approved application for a cash transaction |
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card if the entity paid for a purchase of regulated material by |
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debit card; or |
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(3) the check if the entity paid for a purchase of |
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regulated material by check. |
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Sec. 1956.0382. CASH TRANSACTION CARD. (a) A metal |
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recycling entity may pay a seller for a purchase of regulated |
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material by cash or debit card only if, before the entity issues |
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payment: |
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(1) the seller presents to the entity a valid cash |
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transaction card issued by the entity or by another metal recycling |
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entity located in this state; or |
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(2) the entity obtains a copy of the seller's cash |
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transaction card from the records of the entity. |
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(b) An application for the issuance or renewal of a cash |
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transaction card must include: |
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(1) the name, address, sex, and birth date of the |
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applicant; |
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(2) the identification number from the applicant's |
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personal identification document; |
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(3) a digital photograph that accurately depicts the |
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applicant's entire face taken at the time the applicant completes |
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the application; |
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(4) a clear and legible thumbprint of the applicant; |
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and |
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(5) the signature of the applicant. |
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(c) On receipt of an application that contains the |
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information required by Subsection (b), a metal recycling entity |
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may approve the application and issue a cash transaction card to the |
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applicant. The individual approving the application on behalf of |
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the metal recycling entity must sign the application. |
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(d) A cash transaction card must include: |
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(1) the name and address of the seller; |
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(2) a digital photograph of the seller that accurately |
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depicts the seller's entire face; |
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(3) an identifying number that is unique to the |
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individual card; and |
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(4) the expiration date of the card, which may not be |
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later than two years from the date the card was issued or renewed. |
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(e) A metal recycling entity must mail the issued cash |
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transaction card to the address provided on the application for the |
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card. |
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(f) A cash transaction card issued under this section is not |
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transferable. |
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(g) A metal recycling entity shall preserve: |
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(1) each application for a cash transaction card the |
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entity receives until the second anniversary of the date the |
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application was received; and |
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(2) a copy of each cash transaction card the entity |
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issues or renews until the second anniversary of the date the card |
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was issued or renewed. |
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Sec. 1956.041. ADMINISTRATIVE PENALTY. (a) The |
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commission, after notice and an opportunity for a hearing, may |
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impose an administrative penalty on a person who violates Section |
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1956.036. |
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(b) The amount of the administrative penalty may not exceed |
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$1,000. Each day a violation occurs or continues to occur is a |
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separate violation for the purpose of imposing a penalty. In |
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determining the amount of the administrative penalty, the |
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commission shall consider: |
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(1) the seriousness of the violation, including the |
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nature, circumstances, extent, and gravity of the violation; |
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(2) the economic harm caused by the violation; |
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(3) the history of previous violations; |
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(4) the amount necessary to deter a future violation; |
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(5) efforts to correct the violation; and |
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(6) any other matter that justice may require. |
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(c) The enforcement of the administrative penalty may be |
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stayed during the time the order is under judicial review if the |
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person pays the penalty to the clerk of the court or files a |
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supersedeas bond with the court in the amount of the penalty. A |
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person who cannot afford to pay the penalty or file the bond may |
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stay the enforcement by filing an affidavit in the manner required |
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by the Texas Rules of Civil Procedure for a party who cannot afford |
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to file security for costs, subject to the right of the commission |
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to contest the affidavit as provided by those rules. |
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(d) The attorney general may sue to collect the |
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administrative penalty. |
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(e) A proceeding to impose an administrative penalty is |
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considered to be a contested case under Chapter 2001, Government |
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Code. |
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SECTION 9. Section 1956.041, Occupations Code, as added by |
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this Act, applies only to a violation of Section 1956.036, |
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Occupations Code, as amended by this Act, committed on or after the |
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effective date of this Act. A violation committed before the |
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effective date of this Act is governed by the law in effect on the |
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date the violation was committed, and the former law is continued in |
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effect for that purpose. |
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SECTION 10. The change in law made by this Act applies only |
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to an offense committed on or after the effective date of this Act. |
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An offense committed before the effective date of this Act is |
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governed by the law in effect on the date the offense was committed, |
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and the former law is continued in effect for that purpose. For |
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purposes of this section, an offense was committed before the |
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effective date of this Act if any element of the offense occurred |
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before that date. |
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SECTION 11. As soon as practicable after the effective date |
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of this Act, the public safety director of the Department of Public |
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Safety of the State of Texas shall appoint the three additional |
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members to the advisory committee as required by Section 1956.017, |
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Occupations Code, as amended by this Act. |
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SECTION 12. During the calendar year ending December 31, |
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2023, the advisory committee established under Section 1956.017, |
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Occupations Code, as amended by this Act, shall study the effects of |
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the cash transaction card provisions of Section 1956.0382, |
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Occupations Code, as added by this Act, and report the committee's |
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findings and recommendations to the legislature before December 1, |
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2024. |
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SECTION 13. This Act takes effect September 1, 2015. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I certify that H.B. No. 2187 was passed by the House on May |
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13, 2015, by the following vote: Yeas 125, Nays 18, 1 present, not |
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voting. |
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______________________________ |
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Chief Clerk of the House |
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I certify that H.B. No. 2187 was passed by the Senate on May |
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30, 2015, by the following vote: Yeas 26, Nays 5. |
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______________________________ |
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Secretary of the Senate |
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APPROVED: _____________________ |
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Date |
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_____________________ |
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Governor |