By McReynolds                                         H.B. No. 1405
         76R4611 MXM-D                          
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the regulation of secondhand metal dealers.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Section 1(5), Chapter 460, Acts of the 60th
 1-5     Legislature, Regular Session, 1967 (Article 9009, Vernon's Texas
 1-6     Civil Statutes), is amended to read as follows:
 1-7                 (5)  "Personal identification card [certificate]"
 1-8     means:
 1-9                       (A)  a driver's license or personal
1-10     identification certificate [card] issued by the Department of
1-11     Public Safety under Chapter 521, Transportation Code;
1-12                       (B)  a military identification card;
1-13                       (C)  a passport;
1-14                       (D)  an alien registration card; or
1-15                       (E)  a picture identification card issued by
1-16     another state [Section 14A, Chapter 173, Acts of the 47th
1-17     Legislature, Regular Session, 1941 (Article 6687b, Vernon's Texas
1-18     Civil Statutes), or an analogous card or certificate issued by
1-19     another state].
1-20           SECTION 2.  Section 2, Chapter 460, Acts of the 60th
1-21     Legislature, Regular Session, 1967  (Article 9009, Vernon's Texas
1-22     Civil Statutes), is amended to read as follows:
1-23           Sec. 2.  DUTY TO MAINTAIN RECORD; EXHIBITION; FORM AND
1-24     CONTENTS.  (a)  Each secondhand metal dealer in this state shall
 2-1     keep an accurate and legible written record of any purchase made in
 2-2     the course of the dealer's business from an individual of:
 2-3                 (1)  copper or brass material in excess of 40 [50]
 2-4     pounds;
 2-5                 (2)  bronze material; or
 2-6                 (3)  aluminum material in excess of 40 pounds.
 2-7           (b)  The record must be in English and must include:
 2-8                 (1)  the place and date of each purchase;
 2-9                 (2)  the name and address of each individual from whom
2-10     the regulated material is purchased or obtained, and if an
2-11     individual is selling for a company, the name and address of each
2-12     company;
2-13                 (3)  the identifying number of the seller's [driver's
2-14     license, military identification card, passport, or] personal
2-15     identification card [certificate];
2-16                 (4)  a description made in accordance with the custom
2-17     of the trade of the type of regulated material purchased, such as
2-18     "tubing," "wire," "sheeting," or "pipe" but excluding a general
2-19     description such as "scrap" or "mixed";
2-20                 (5)  a description of [and] the quantity of the
2-21     material; and
2-22                 (6)  the dollar amount paid for the material [(5) a
2-23     signed statement by the seller that states the seller's right of
2-24     legal ownership or right to sell the regulated material offered for
2-25     sale].
2-26           (c)  A person attempting to sell a regulated material to a
2-27     secondhand metal dealer must:
 3-1                 (1)  display to the secondhand metal dealer the
 3-2     person's [driver's license, military identification card, passport,
 3-3     or] personal identification card [certificate or, if the seller
 3-4     does not have a driver's license, military identification card,
 3-5     passport, or personal identification certificate, a statement
 3-6     signed by the seller that states that the seller does not possess
 3-7     any of these types of identification]; and
 3-8                 (2)  provide to the secondhand metal dealer the license
 3-9     plate number of the vehicle that transported the regulated material
3-10     to the dealer [sign a written statement provided by the secondhand
3-11     metal dealer that states that the person is the legal owner of, or
3-12     is lawfully entitled to sell, the regulated material offered for
3-13     sale].
3-14           (d)  [If a person is required by a municipality to prepare a
3-15     signed statement consisting of the same information required by
3-16     Subsection (c)(1) or (2) of this section, the person may use the
3-17     statement required by the municipality to comply with the
3-18     requirements of Subsection (c)(1) or (2) of this section.]
3-19           [(e)]  The secondhand metal dealer or the dealer's agent
3-20     shall visually verify the accuracy of the seller's personal
3-21     identification card [presented by the seller] at the time of the
3-22     purchase of a regulated material. If the dealer is unable to verify
3-23     the accuracy of the card or if the seller does not display a card,
3-24     the dealer may not purchase a regulated material from that seller.
3-25           (e) [(f)]  A person commits an offense if that person, with
3-26     the intent to deceive:
3-27                 (1)  makes a material and false statement or
 4-1     representation to a secondhand metal dealer in connection with the
 4-2     dealer's efforts to obtain the information required under Section
 4-3     2(b) of this Act; or
 4-4                 (2)  displays to a secondhand metal dealer a false or
 4-5     invalid [driver's license, military identification card, passport,
 4-6     or] personal identification card [certificate] in connection with
 4-7     the person's attempted sale of any regulated material[; or]
 4-8                 [(3)  makes a material and false statement or
 4-9     representation to a secondhand metal dealer in connection with that
4-10     person's execution of a written statement required by Section 2
4-11     (c)(1) or (2) of this Act].
4-12           SECTION 3.  Section 3, Chapter 460, Acts of the 60th
4-13     Legislature, Regular Session, 1967 (Article 9009, Vernon's Texas
4-14     Civil Statutes), is amended to read as follows:
4-15           Sec. 3.  PRESERVATION OF RECORDS.  Each secondhand metal
4-16     dealer shall preserve the records required by Section 2 of this Act
4-17     for a period of at least three years. The dealer may not erase,
4-18     mutilate, or alter the records during that period.
4-19           SECTION 4.  Section 5, Chapter 460, Acts of the 60th
4-20     Legislature, Regular Session, 1967 (Article 9009, Vernon's Texas
4-21     Civil Statutes), is amended to read as follows:
4-22           Sec. 5.  TEN DAY HOLD; NOTICE TO HOLD ITEMS; DEALERS. (a) A
4-23     secondhand metal dealer may not sell, salvage, or destroy a
4-24     regulated material until the expiration of the 10th working day
4-25     after the date of purchase of the material.
4-26           (b)  In addition to the retention period under Subsection (a)
4-27     of this section, if [If] a peace officer has reasonable suspicion
 5-1     to believe that certain items consisting or composed of regulated
 5-2     materials and in the possession of a secondhand metal dealer are
 5-3     stolen, the peace officer may place the items on hold for a period
 5-4     longer than that retention period as provided by this section. If
 5-5     the officer places the items on hold, the officer shall issue a
 5-6     hold notice to the dealer.
 5-7           (c) [(b)]  The hold notice must be in writing, and must:
 5-8                 (1)  specifically identify the items alleged to be
 5-9     stolen and subject to the hold; and
5-10                 (2)  inform the dealer of the requirements imposed
5-11     under Subsection (d) [(c)] of this section.
5-12           (d) [(c)]  On receipt of a hold notice under this section, a
5-13     secondhand metal dealer may not process or remove from the dealer's
5-14     premises the items subject to the hold, or any part of those items,
5-15     until the expiration of the 10th day after the date on which the
5-16     notice is issued, unless the hold is released at an earlier time in
5-17     writing by a peace officer of this state or an order of a court of
5-18     competent jurisdiction.  At the expiration of the holding period,
5-19     the hold is automatically released and the dealer may dispose of
5-20     the regulated material unless:
5-21                 (1)  another disposition of the material has been
5-22     ordered by a court of competent jurisdiction; or
5-23                 (2)  the retention period under Subsection (a) of this
5-24     section has not yet expired.
5-25           SECTION 5.  Section 8, Chapter 460, Acts of the 60th
5-26     Legislature, Regular Session, 1967 (Article 9009, Vernon's Texas
5-27     Civil Statutes), is amended to read as follows:
 6-1           Sec. 8.  APPLICATION, EXEMPT PURCHASES AND SALES.  This Act
 6-2     does not apply to a purchase of a regulated material from a
 6-3     manufacturing or[,] industrial[, or other commercial] vendor that
 6-4     sells regulated materials in the ordinary course of the vendor's
 6-5     business.
 6-6           SECTION 6.  This Act takes effect September 1, 1999.
 6-7           SECTION 7.  The importance of this legislation and the
 6-8     crowded condition of the calendars in both houses create an
 6-9     emergency and an imperative public necessity that the
6-10     constitutional rule requiring bills to be read on three several
6-11     days in each house be suspended, and this rule is hereby suspended.