2009 Texas Code
OCCUPATIONS CODE
TITLE 12. PRACTICES AND TRADES RELATED TO WATER, HEALTH, AND SAFETY
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.
Disclaimer: These codes may not be the most recent version. Texas may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
