By: Geren (Senate Sponsor - Harris) H.B. No. 1242
         (In the Senate - Received from the House April 18, 2011;
  April 26, 2011, read first time and referred to Committee on
  Business and Commerce; May 19, 2011, reported adversely, with
  favorable Committee Substitute by the following vote:  Yeas 8,
  Nays 0; May 19, 2011, sent to printer.)
 
  COMMITTEE SUBSTITUTE FOR H.B. No. 1242 By:  Harris
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to the regulation of certain metal dealers; providing
  criminal penalties.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 1956.001(8), Occupations Code, is
  amended to read as follows:
               (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;
                     (D)  a passport; or
                     (E)  documentation issued by the United States
  agency responsible for citizenship and immigration that authorizes
  the person to be in the United States.
         SECTION 2.  Section 1956.060, Occupations Code, is amended
  to read as follows:
         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:
               (1)  a person licensed under Chapter 371, Finance Code;
  or
               (2)  an entity affiliated with a person licensed under
  Chapter 371, Finance Code, if the entity's recordkeeping practices
  satisfy the requirements of that chapter.
         SECTION 3.  Section 1956.062, Occupations Code, is amended
  by amending Subsection (c) and adding Subsection (c-1) to read as
  follows:
         (c)  The dealer shall:
               (1)  record the identification [proposed seller's
  driver's license] number [or department personal identification
  certificate number on physical presentation] of the seller's
  personal identification document;
               (2)  visually verify the accuracy of the seller's
  personal identification document and make a copy of the document;
  and
               (3)  obtain a digital or video photograph that
  accurately depicts each item of crafted precious metal purchased
  [license or personal identification certificate by the seller].
         (c-1)  The copy of the document and photograph described by
  Subsection (c) [record] must accompany the list.
         SECTION 4.  Subchapter B, Chapter 1956, Occupations Code, is
  amended by adding Section 1956.0631 to read as follows:
         Sec. 1956.0631.  PAYMENT FOR CRAFTED PRECIOUS METAL
  PURCHASED.  A dealer may pay for a purchase of crafted precious
  metal only by check or prepaid debit card.  If payment is by check,
  the names of the dealer and seller must be printed on the check.  If
  payment is by prepaid debit card, the seller may not be liable for
  any fees charged by the issuer of the card.
         SECTION 5.  Section 1956.064, Occupations Code, is amended
  to read as follows:
         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 21st [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; or
               (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 peace officer who has reasonable suspicion to believe
  that an item of crafted precious metal in the possession of a 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 (c).
         (c)  On receiving the notice, the dealer may not melt,
  deface, alter, or dispose of the identified crafted precious metal
  until the hold is released in writing by a peace officer of this
  state or a court order. [A dealer who retains information under
  Subsection (a)(2) shall make that information available for
  inspection by any peace officer.]
         SECTION 6.  Section 1956.069(a), Occupations Code, is
  amended to read as follows:
         (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)  violates [disposes of crafted precious metal or
  fails to make a record available for inspection by a peace officer
  as required by] Section 1956.0631 or 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.
         SECTION 7.  The change in law made by this Act applies only
  to an offense committed on or after the effective date of this Act.
  An offense committed before the effective date of this Act is
  governed by the law in effect on the date the offense was committed,
  and the former law is continued in effect for that purpose. For
  purposes of this section, an offense was committed before the
  effective date of this Act if any element of the offense occurred
  before that date.
         SECTION 8.  This Act takes effect September 1, 2011.
 
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