BILL ANALYSIS
By: Carona
Committee Report (Substituted)
BACKGROUND AND PURPOSE
Texas, along with most states nationwide, is experiencing an increase in thefts of metals, such as
copper, bronze, and brass. Copper in particular has become a prime target for thieves largely
because the price of copper has increased significantly in the last year. Losses from copper theft
include not only the value of the stolen copper, but also losses resulting from damage done
during the process of extracting copper from property and equipment.
Several states are exploring ways to bring the problem under control. Texas provides for
penalties for the offenses of theft and criminal mischief and the penalties can escalate to second
and third degree felonies depending on the value of the property stolen or equipment or property
damaged, but those penalties have not been sufficient to stem the tide of this type of crime.
The perpetrators of such crime often turn to secondhand dealers to sell the stolen metals.
Chapter 1956, Occupations Code, provides requirements for purchases of secondhand metals by metal dealers and recycling entities that are intended to curtail sales of stolen metals. However, there are few records kept relating to the sale of secondhand metal, and the punishment for selling stolen metal is a Class B misdemeanor. The current laws governing the sale of stolen secondhand metals need to be revamped in order to make it harder to sell the material.
CSSB 1154 would require more stringent records to be kept regarding the sale of secondhand metals and further define what material is regulated. It would also increase the penalties for offenses.
RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
ANALYSIS
CSSB 1154 amends the Occupations Code. The bill amends the definition of regulated materials, aluminum material, bronze materials, and copper or brass materials. The bill outlines acceptable personal identification documents, and defines "commission", "director", "metal recycling entity" and "regulated metal". The bill strikes references to "second hand metal dealer" and replaces them with "metal recycling entity".
The bill provides that the chapter relating to metal recycling entities does not apply to a purchase of regulated material from a public utility, a manufacturing, industrial, commercial, retail, or other seller that sells regulated material in the ordinary course of the seller's business or the purchase of regulated materials by metal scraps. It does provide that a county, city, or other political subdivision may issue a license or permit to a business for the purposes of metal recycling and may adopt more stringent standards regarding regulated material as long as those standards do not conflict with this chapter. The municipality, county, or political subdivision may establish the hours during which a metal recycling entity may purchase regulated material. The bill prohibits a metal recycling entity from purchasing regulated material sales more than 15 hours per day and/or no later 9:00 p.m.
The bill amends provisions related to the information that must be provided by the seller of regulated material. The bill authorizes the metal recycling entity to photograph the seller and request the name of the seller's employer. The bill requires that an entity's posted notice include "written proof of ownership" to be presented by the seller of the regulated material. The entity must record the make, model, license plate number of the vehicle used to transport the regulated material along with a written statement or document that the person is lawfully entitled to sell said materials. The bill authorizes the metal recycling entity to photograph the seller and request the name of the seller's employer. The entity must keep an accurate written or electronic record, for three years, of the purchase along with the seller information. The bill removes the minimum weight of copper or brass or aluminum materials for which the purchase must be recorded.
The entity may not dispose, sell, process, or remove items that are on hold from the premises unless it has been more than 72 hours or the entity purchased the item from a seller that sells regulated material in the ordinary course of its business. If an entity receives notice that a hold has been placed on an item, the entity may not dispose, sell, process, or remove the item until the 60 days have passed and the hold has been released.
A seller who knowingly fails to collect proper records of purchases and keep them the required three years is guilty of a Class B misdemeanor on the first conviction and a Class A misdemeanor for a subsequent conviction. Dealers who knowingly purchase stolen regulated materials are guilty of a Class A misdemeanor for the first offense and a state jail felony for any subsequent offense. Presently, metal dealers that are found to be guilty under offenses of this subchapter can be ordered by a court to be shut down for up to 30 days per offense. CSSB 1154 would allow courts to order a dealer to cease doing business for up to 180 days if the dealer had previously been convicted of an offense under this subchapter.
Sellers who knowingly provide dealers with false identification or falsify other required records are guilty of a Class A misdemeanor in the first instance and a state jail felony for subsequent convictions. If a seller knowingly sells stolen regulated material, he or she is guilty of a state jail felony upon first conviction and a third degree felony for subsequent convictions. If conduct which constitutes an offense under this section also constitutes an offense under any other law, the actor may be prosecuted under this section of the other law.
EFFECTIVE DATE
September 1, 2007.
COMPARISON OF ORIGINAL TO SUBSTITUTE
The substitute make nonsubstantive and conforming changes.
References in the original, to secondhand metal dealers are changed in the substitute to "metal recycling entities."
The substitute adds and amend definitions. The substitute adds that a purchase from a retailer or other seller that regularly sells regulated material, and manufacturers whose primary business involves iron and steel are excluded from Chapter 1956 of the Occupations Code.
CSSB 1154 allows a county, municipality or political subdivision to adopt more stringent rules as long as they do not conflict with Chapter 1956 of the Occupations Code or rules adopted under that chapter. The county, municipality or political subdivision may issue a license or permit to a business to allow the business to act as a metal recycling entity in the respective county or municipality.
The substitute requires that the notice to sellers, posted by the metal recycling entity, include notice that written proof of ownership must be presented by the seller.
The substitute provides that the seller of the regulated material may present written proof of ownership or right to sell the material as an option to the written statement required in the original that the seller is the legal owner and legally entitled to sell the material.
The substitute is amended from the original to require a record of purchase for aluminum, regardless of weight, and for regulated metals.
The substitute adds a provisions relating to items that are placed on hold.
The substitute limits metal recycling entities' hours for purchasing regulated materials.