84R4557 GRM-D

By: Dukes H.B. No. 1703

A BILL TO BE ENTITLED

AN ACT

relating to the disposition and identification of certain goods acquired by recycling entities and pawnbrokers; providing a civil penalty.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 1956.064(a), Occupations Code, is amended to read as follows:

(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 14th [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.

SECTION 2. The heading to Section 371.181, Finance Code, is amended to read as follows:

Sec. 371.181. STOLEN GOODS; ELECTRONIC DATABASE.

SECTION 3. Section 371.181, Finance Code, is amended by amending Subsection (a) and adding Subsections (c), (d), (e), (f), and (g) to read as follows:

(a) A pawnbroker shall monitor and register goods purchased, accepted in pawn, or otherwise acquired by the pawnbroker in order to identify and prohibit transactions involving stolen goods.

(c) The commissioner shall create and maintain an online database to register goods purchased, accepted in pawn, or otherwise acquired by pawnbrokers. The database may be accessed only by law enforcement officials for law enforcement purposes. The finance commission shall adopt rules necessary to implement the database.

(d) The rules adopted by the finance commission under Subsection (c) must:

(1) require a complete description of the goods purchased, accepted in pawn, or otherwise acquired by the pawnbroker, including any available model numbers and serial numbers and other identifying characteristics; and

(2) require the name and address of and the driver's license number, military identification number, or other official number that identifies the person pledging or selling goods.

(e) A pawnbroker that fails to register an item on the online database created by the commissioner under this section is liable to the state for a civil penalty in an amount not to exceed $500 for each item not registered.

(f) The attorney general or the appropriate district or county attorney may bring an action to recover a civil penalty imposed under Subsection (e) in a district court in:

(1) Travis County; or

(2) a county in which any part of the violation occurs.

(g) A penalty collected under this section by the attorney general or a district or county attorney shall be deposited in the state treasury to the credit of the general revenue fund.

SECTION 4. Section 371.182, Finance Code, is amended to read as follows:

Sec. 371.182. HOLD PERIOD. A [The commissioner may designate a reasonable hold period during which a] pawnbroker may not sell or otherwise dispose of an item of goods acquired and offered for sale or other disposition by the pawnbroker before the 14th day after the date on which the item was acquired.

SECTION 5. Section 371.181, Finance Code, as amended by this Act, applies only to goods purchased, accepted in pawn, or otherwise acquired by the pawnbroker on or after January 1, 2017. Goods purchased, accepted in pawn, or otherwise acquired by the pawnbroker before January 1, 2017, are governed by the law in effect immediately before the effective date of this Act, and the former law is continued in effect for that purpose.

SECTION 6. Not later than December 31, 2016, the consumer credit commissioner shall establish and implement the online database required by Section 371.181(c), Finance Code, as added by this Act.

SECTION 7. This Act takes effect September 1, 2015.