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2005 Texas Occupations Code CHAPTER 1956. SALES TO METAL DEALERS AND METAL RECYCLING ENTITIES
OCCUPATIONS CODE CHAPTER 1956. SALES TO METAL DEALERS AND METAL RECYCLING ENTITIES SUBCHAPTER A. SALE OF ALUMINUM, BRONZE, OR COPPER OR BRASS MATERIAL TO SECONDHAND METAL DEALERS § 1956.001. DEFINITIONS. In this subchapter: (1) "Aluminum material" means a product made from aluminum, an aluminum alloy, or an aluminum by-product. The term includes 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. (3) "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 consists of at least 50 percent copper; or (B) a copper or brass item of a type commonly used in construction or by a public utility. (4) "Department" means the Texas Department of Public Safety. (5) "Personal identification document" means: (A) a driver's license; (B) a military identification card; (C) a passport issued by the United States or by another country and recognized by the United States; or (D) a personal identification certificate issued by the department under Section 521.101, Transportation Code, or a corresponding card or certificate issued by another state. (6) "Regulated material" means: (A) aluminum material; (B) bronze material; or (C) copper or brass material. (7) "Secondhand metal dealer" means: (A) an auto wrecker, a scrap metal processor, or another person or organization that purchases, collects, or solicits regulated material; or (B) a person who operates or maintains a scrap metal yard or other place in which scrap metal or cast-off regulated material is collected or kept for shipment, sale, or transfer. Added by Acts 2001, 77th Leg., ch. 1421, § 4, eff. June 1, 2003. § 1956.002. EXCEPTION. This subchapter does not apply to a purchase of regulated material from a manufacturing, industrial, or other commercial vendor that sells regulated material in the ordinary course of the vendor's business. Added by Acts 2001, 77th Leg., ch. 1421, § 4, eff. June 1, 2003. § 1956.003. NOTICE TO SELLERS. (a) A secondhand metal dealer shall at all times maintain in a prominent place in the dealer'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 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 SECONDHAND METAL DEALER WHILE ATTEMPTING TO SELL ANY REGULATED MATERIAL."; and (2) states the secondhand metal dealer's usual business hours. (b) The notice required by this section may be contained on a sign that contains another notice if the secondhand metal dealer is required to display another notice under applicable law. Added by Acts 2001, 77th Leg., ch. 1421, § 4, eff. June 1, 2003. § 1956.004. INFORMATION PROVIDED BY SELLER. (a) A person attempting to sell regulated material to a secondhand metal dealer shall: (1) display to the secondhand metal dealer the person's personal identification document or sign a statement that the person does not possess such a document; and (2) sign a written statement provided by the secondhand metal dealer 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)(1) or (2) may use the statement required by the municipality to comply with Subsection (a)(1) or (2). (c) The secondhand metal dealer or the dealer's agent shall visually verify the accuracy of the identification presented by the seller at the time of the purchase of regulated material. Added by Acts 2001, 77th Leg., ch. 1421, § 4, eff. June 1, 2003. § 1956.005. RECORD OF PURCHASE. (a) A secondhand metal dealer in this state shall keep an accurate and legible written record of each purchase made in the course of the dealer's business from an individual of: (1) copper or brass material in excess of 50 pounds; (2) bronze material; or (3) aluminum material in excess of 40 pounds. (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 statement required by Section 1956.004(a)(2). Added by Acts 2001, 77th Leg., ch. 1421, § 4, eff. June 1, 2003. § 1956.006. PRESERVATION OF RECORDS. A secondhand metal dealer shall preserve each record required by Section 1956.005 until the third anniversary of the date the record was made. Added by Acts 2001, 77th Leg., ch. 1421, § 4, eff. June 1, 2003. § 1956.007. INSPECTION OF RECORDS BY PEACE OFFICER. (a) On request, a secondhand metal dealer shall permit a peace officer of this state to inspect, during the dealer's usual business hours: (1) a record required by Section 1956.005; or (2) regulated material in the dealer's possession. (b) The inspecting officer shall inform the dealer of the officer's status as a peace officer. Added by Acts 2001, 77th Leg., ch. 1421, § 4, eff. June 1, 2003. § 1956.008. 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 1956.005, a secondhand metal dealer shall mail to or file with the department a report containing the information required to be recorded under that section. (b) If a secondhand metal dealer 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 dealer shall: (1) not later than the close of business on the dealer's first working day after the purchase date, orally 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 1956.005. (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 2001, 77th Leg., ch. 1421, § 4, eff. June 1, 2003. § 1956.009. PLACEMENT OF ITEMS ON HOLD. (a) A peace officer who has reasonable suspicion to believe that an item of regulated material in the possession of a secondhand metal dealer is stolen may place the item on hold by issuing to the dealer a written notice that: (1) specifically identifies the item alleged to be stolen and subject to the hold; and (2) informs the dealer of the requirements of Subsection (b). (b) On receiving the notice, the dealer may not process or remove from the dealer's premises the identified item before the 11th 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. (c) After the holding period expires, the dealer may dispose of the item unless disposition violates a court order. Added by Acts 2001, 77th Leg., ch. 1421, § 4, eff. June 1, 2003. § 1956.010. PROHIBITED ACTS. A person may not, with the intent to deceive: (1) display to a secondhand metal dealer a false or invalid personal identification document in connection with the person's attempted sale of regulated material; or (2) make a false, material statement or representation to a secondhand metal dealer in connection with: (A) that person's execution of a written statement required by Section 1956.004(a)(1) or (2); or (B) the dealer's efforts to obtain the information required under Section 1956.005(b). Added by Acts 2001, 77th Leg., ch. 1421, § 4, eff. June 1, 2003. § 1956.011. CRIMINAL PENALTY. (a) A person commits an offense if the person knowingly violates this subchapter. (b) Except as provided by Subsection (c), an offense under this section is a Class B misdemeanor. (c) An offense under this section is a Class A misdemeanor if the person has been convicted of a violation of this subchapter within the 36 months preceding the date of the offense. (d) On the conviction of a secondhand metal dealer for an offense punishable under Subsection (c), a court, in addition to imposing any other applicable penalty, may order that the dealer cease doing business as a secondhand metal dealer for a period not to exceed 30 days from the date of the order for each violation that forms the basis of the conviction. Added by Acts 2001, 77th Leg., ch. 1421, § 4, eff. June 1, 2003.SUBCHAPTER B. SALE OF CRAFTED PRECIOUS METAL TO DEALERS § 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, § 4, eff. June 1, 2003. § 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, § 4, eff. June 1, 2003. § 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, § 4, eff. June 1, 2003. § 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, § 4, eff. June 1, 2003. § 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, § 4, eff. June 1, 2003. § 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, § 4, eff. June 1, 2003. § 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, § 4, eff. June 1, 2003. § 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, § 4, eff. June 1, 2003. § 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, § 4, eff. June 1, 2003. § 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, § 4, eff. June 1, 2003. § 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, § 4, eff. June 1, 2003. § 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, § 4, eff. June 1, 2003. § 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, § 4, eff. June 1, 2003. § 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, § 4, eff. June 1, 2003. § 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, § 4, eff. June 1, 2003. § 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, § 4, eff. June 1, 2003. § 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, § 4, eff. June 1, 2003. § 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, § 4, eff. June 1, 2003. § 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, § 4, eff. June 1, 2003.SUBCHAPTER C. SALE OF CERTAIN ITEMS TO METAL RECYCLING ENTITIES § 1956.101. DEFINITIONS. In this subchapter: (1) "Metal recycling entity" means a business that 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 other than the exclusive use of hand tools, including processing, sorting, cutting, classifying, cleaning, baling, wrapping, shredding, shearing, or changing the physical form of that metal; or (B) the use of those raw material products in the manufacture of producer or consumer goods. (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, § 4, eff. June 1, 2003. § 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, § 4, eff. June 1, 2003. § 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, § 4, eff. June 1, 2003. Amended by Acts 2005, 79th Leg., ch. 47, § 1, eff. Sept. 1, 2005. § 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, § 4, eff. June 1, 2003. Amended by Acts 2005, 79th Leg., ch. 47, § 2, eff. Sept. 1, 2005. § 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, § 4, eff. June 1, 2003.
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