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Enrolled Bill Summary

Enrolled Bill Summary

Legislative Session: 82(R)

Senate Bill 694

Senate Author:  West

Effective:  See below

House Sponsor:  Smith, Wayne et al.


            Among other provisions related to metal recycling entities, current law requires a person who operates a metal recycling entity to hold a certificate of registration for that business and authorizes a county, municipality, or political subdivision of Texas to 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 imposes a criminal penalty on a seller who commits certain violations.  Senate Bill 694 amends the Occupations Code to expand the list of information a seller of regulated material must provide to a metal recycling entity receiving the material to include specified documentation verifying the origin of condensing or evaporator coils for central heating or air conditioning units or insulated communications wire that has been burned wholly or partly to remove the insulation.  The bill authorizes a county, municipality, or other political subdivision to require the record of purchase to contain a clear and legible thumbprint of a seller of regulated material.  The bill expands the definition of "regulated metal" to include additional items.

Senate Bill 694 requires a metal recycling entity to include additional information in the required record of purchase for each transaction and to include a digital photograph or video recording that accurately depicts the seller's entire face and each type of regulated metal purchased.  The bill establishes requirements relating to the preservation of records and cash payment for a purchase of regulated material.  Current law requires a metal recycling entity to allow a Texas peace officer to conduct an inspection of certain items.  The bill authorizes this inspection to be conducted by a representative of the Department of Public Safety (DPS) or a representative of a county, municipality, or other political subdivision that issues a license or permit.

Senate Bill 694 creates criminal and civil penalties, exceptions, and an affirmative defense to prosecution for specified violations and sets out requirements for an action enjoining the business operations of a metal recycling entity.  The bill authorizes a municipality to retain 10 percent of the money collected from a fine for a conviction of an offense as a service fee with the remainder distributed to DPS to administer various provisions governing metal recycling entities.

Senate Bill 694 authorizes DPS to use the information provided to the statewide electronic reporting system for law enforcement purposes; provides that the information is not subject to disclosure under the public information law; requires a county, municipality, or other political subdivision to include a confidentiality clause in regard to information related to the sale of regulated material in any contract entered into by one of these political subdivisions with a specified third party that has access to the information; and requires DPS to include a confidentiality clause in a contract with a third party relating to the operation of the statewide electronic reporting system.

Senate Bill 694 requires DPS to establish an advisory committee to advise DPS on matters related to the department's regulation of metal recycling entities and to make available on its Internet website a publicly accessible list of all registered metal recycling entities.  DPS is required to establish and implement a prevention of scrap metal theft grant program.  The bill requires the Public Safety Commission to adopt rules relating to burned insulated communications wire no later than December 1, 2011.  Provisions relating to information regarding the seller and an offense relating to burned insulated communications wire take effect January 1, 2012.  Provisions relating to certain criminal and civil penalties and prohibited acts take effect March 1, 2012.  All other provisions take effect September 1, 2011.