H.B. No. 2187
 
 
 
 
AN ACT
  relating to the regulation of metal recycling entities; imposing an
  administrative penalty; amending provisions subject to a criminal
  penalty.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 1956.001, Occupations Code, is amended
  by amending Subdivisions (4), (9), and (10) and adding Subdivision
  (6-a) to read as follows:
               (4)  "Copper or brass material" means:
                     (A)  a power inverter or insulated or
  noninsulated copper wire or cable that contains copper or an alloy
  of copper or zinc and is of the type used by:
                           (i)  a public utility or common carrier;
                           (ii)  a telecommunications provider as
  defined by Section 51.002, Utilities Code;
                           (iii)  a cable service provider as defined
  by Section 66.002, Utilities Code; or
                           (iv)  a video service provider as defined by
  Section 66.002, Utilities Code [that contains copper or an alloy of
  copper or zinc];
                     (B)  a copper or brass item of a type commonly used
  in construction or by:
                           (i)  a public utility;
                           (ii)  a telecommunications provider as
  defined by Section 51.002, Utilities Code;
                           (iii)  a cable service provider as defined
  by Section 66.002, Utilities Code; or
                           (iv)  a video service provider as defined by
  Section 66.002, Utilities Code; or
                     (C)  copper pipe or copper tubing.
               (6-a)  "Lead material" means:
                     (A)  a commercial grade lead battery, lead-acid
  battery, or spiral cell battery; or
                     (B)  a material or an item readily identifiable as
  being made of or containing lead.
               (9)  "Regulated material" means:
                     (A)  aluminum material;
                     (B)  bronze material;
                     (C)  copper or brass material; [or]
                     (D)  lead material; or
                     (E)  regulated metal.
               (10)  "Regulated metal" means:
                     (A)  manhole covers;
                     (B)  guardrails;
                     (C)  metal cylinders designed to contain
  compressed air, oxygen, gases, or liquids;
                     (D)  beer kegs made from metal other than
  aluminum;
                     (E)  historical markers or cemetery vases,
  receptacles, or memorials made from metal other than aluminum;
                     (F)  unused rebar;
                     (G)  street signs;
                     (H)  drain gates;
                     (I)  safes;
                     (J)  communication, transmission, and service
  wire or cable;
                     (K)  condensing or evaporator coils for central
  heating or air conditioning units;
                     (L)  utility structures, including the fixtures
  and hardware;
                     (M)  aluminum or stainless steel containers
  designed to hold propane for fueling forklifts;
                     (N)  metal railroad equipment, including tie
  plates, signal houses, control boxes, signs, signals, traffic
  devices, traffic control devices, traffic control signals, switch
  plates, e-clips, and rail tie functions;
                     (O)  catalytic converters not attached to a
  vehicle;
                     (P)  fire hydrants;
                     (Q)  metal bleachers or other seating facilities
  used in recreational areas or sporting arenas;
                     (R)  any metal item clearly and conspicuously
  marked with any form of the name, initials, or logo of a
  governmental entity, utility, cemetery, or railroad;
                     (S)  insulated utility, communications, or
  electrical wire that has been burned in whole or in part to remove
  the insulation;
                     (T)  backflow valves; [and]
                     (U)  metal in the form of commonly recognized
  products of the industrial metals recycling process, including
  bales, briquettes, billets, sows, ingots, pucks, and chopped or
  shredded metals; and
                     (V)  commercial grade lead batteries or lead-acid
  batteries.
         SECTION 2.  Section 1956.002, Occupations Code, is amended
  to read as follows:
         Sec. 1956.002.  EXCEPTION. This chapter does not apply to:
               (1)  a purchase of regulated material from a public
  utility, a telecommunications provider as defined by Section
  51.002, Utilities Code, a cable service provider as defined by
  Section 66.002, Utilities Code, a video service provider as defined
  by Section 66.002, Utilities Code, or a manufacturing, industrial,
  commercial, retail, or other seller that sells regulated material
  in the ordinary course of the seller's business;
               (2)  a purchase of regulated material by a manufacturer
  whose primary business is the manufacture of iron and steel
  products made from melting scrap iron and scrap steel; or
               (3)  the transport or hauling of recyclable materials
  to or from the metal recycling entity.
         SECTION 3.  Section 1956.017(b), Occupations Code, is
  amended to read as follows:
         (b)  The advisory committee consists of 15 [12] members
  appointed by the director as follows:
               (1)  one representative of the department;
               (2)  two representatives of local law enforcement
  agencies located in different municipalities, each with a
  population of 500,000 or more;
               (3)  two representatives of local law enforcement
  agencies located in different municipalities, each with a
  population of 200,000 or more but less than 500,000;
               (4)  one representative of a local law enforcement
  agency located in a municipality with a population of less than
  200,000;
               (5)  five [four] representatives of metal recycling
  entities; [and]
               (6)  two members who represent industries that are
  impacted by theft of regulated material;
               (7)  one sheriff of a county with a population of
  500,000 or more; and
               (8)  one sheriff of a county with a population of less
  than 500,000.
         SECTION 4.  Section 1956.033(b), Occupations Code, is
  amended to read as follows:
         (b)  The record must be in English and include:
               (1)  the place, [and] date, and amount of the purchase;
               (2)  the name and address of the seller in possession of
  the regulated material purchased;
               (3)  the identifying number of the seller's personal
  identification document;
               (4)  a description made in accordance with the custom
  of the trade of the commodity type and quantity of regulated
  material purchased;
               (5)  the information required by Sections
  1956.032(a)(2) and (3);
               (6)  as applicable:
                     (A)  the identifying number of the seller's air
  conditioning and refrigeration contractor license displayed under
  Section 1956.032(a)(4)(A);
                     (B)  a copy of the seller's air conditioning and
  refrigeration technician registration displayed under Section
  1956.032(a)(4)(B);
                     (C)  a copy of the documentation described by
  Section 1956.032(a)(4)(C); or
                     (D)  a copy of the documentation described by
  Section 1956.032(a)(4)(D);
               (7)  if applicable, a copy of the documentation
  described by Section 1956.032(a)(5); [and]
               (8)  a copy of the documentation described by Section
  1956.032(g); and
               (9)  a copy of the documentation described by Section
  1956.0381(b).
         SECTION 5.  Section 1956.035(a), Occupations Code, is
  amended to read as follows:
         (a)  On request, a metal recycling entity shall permit a
  peace officer of this state, a representative of the department, or
  a representative of a county, municipality, or other political
  subdivision that issues a license or permit under Section
  1956.003(b) to inspect, during the entity's usual business hours:
               (1)  a record required by Section 1956.033;
               (2)  a digital photograph or video recording required
  by Section 1956.0331; [or]
               (3)  regulated material in the entity's possession; or
               (4)  an application for a cash transaction card
  submitted to the entity.
         SECTION 6.  Section 1956.036, Occupations Code, is amended
  by amending Subsection (a) and adding Subsection (d-1) to read as
  follows:
         (a)  Except as provided by Subsections (b) and (d), not later
  than the close of business on a metal recycling entity's second
  working day after the date of the purchase or other acquisition of
  material for which a record is required under Section 1956.033, the
  entity shall send an electronic transaction report to the
  department via the department's Internet website.  Except as
  provided by Subsection (d-1), the [The] report must contain the
  information required to be recorded under Section 1956.033.
         (d-1)  A metal recycling entity is not required to include in
  a transaction report required by this section:
               (1)  the amount of the purchase; or
               (2)  a copy of the documentation described by Section
  1956.0381(b).
         SECTION 7.  Section 1956.038, Occupations Code, is amended
  by adding Subsection (a-1) to read as follows:
         (a-1)  A metal recycling entity may only pay for a purchase
  of regulated material in the manner provided by Section 1956.0381.
         SECTION 8.  Subchapter A-3, Chapter 1956, Occupations Code,
  is amended by adding Sections 1956.0381, 1956.0382, and 1956.041 to
  read as follows:
         Sec. 1956.0381.  PAYMENT BY METAL RECYCLING ENTITY. (a) A
  metal recycling entity may pay for a purchase of regulated material
  only by:
               (1)  cash if the seller has been issued a cash
  transaction card under Section 1956.0382, unless the metal
  recycling entity is prohibited from paying in cash under Section
  1956.038(b);
               (2)  debit card if the seller has been issued a cash
  transaction card under Section 1956.0382;
               (3)  check;
               (4)  money order; or
               (5)  direct deposit by electronic funds transfer.
         (b)  A metal recycling entity shall include in the record of
  purchase required by Section 1956.033, as applicable, a copy of:
               (1)  the seller's cash transaction card or approved
  application for a cash transaction card if the entity paid for a
  purchase of regulated material by cash;
               (2)  the debit card receipt and the seller's cash
  transaction card or approved application for a cash transaction
  card if the entity paid for a purchase of regulated material by
  debit card; or
               (3)  the check if the entity paid for a purchase of
  regulated material by check.
         Sec. 1956.0382.  CASH TRANSACTION CARD. (a) A metal
  recycling entity may pay a seller for a purchase of regulated
  material by cash or debit card only if, before the entity issues
  payment:
               (1)  the seller presents to the entity a valid cash
  transaction card issued by the entity or by another metal recycling
  entity located in this state; or
               (2)  the entity obtains a copy of the seller's cash
  transaction card from the records of the entity.
         (b)  An application for the issuance or renewal of a cash
  transaction card must include:
               (1)  the name, address, sex, and birth date of the
  applicant;
               (2)  the identification number from the applicant's
  personal identification document;
               (3)  a digital photograph that accurately depicts the
  applicant's entire face taken at the time the applicant completes
  the application;
               (4)  a clear and legible thumbprint of the applicant;
  and
               (5)  the signature of the applicant.
         (c)  On receipt of an application that contains the
  information required by Subsection (b), a metal recycling entity
  may approve the application and issue a cash transaction card to the
  applicant.  The individual approving the application on behalf of
  the metal recycling entity must sign the application.
         (d)  A cash transaction card must include:
               (1)  the name and address of the seller;
               (2)  a digital photograph of the seller that accurately
  depicts the seller's entire face;
               (3)  an identifying number that is unique to the
  individual card; and
               (4)  the expiration date of the card, which may not be
  later than two years from the date the card was issued or renewed.
         (e)  A metal recycling entity must mail the issued cash
  transaction card to the address provided on the application for the
  card.
         (f)  A cash transaction card issued under this section is not
  transferable.
         (g)  A metal recycling entity shall preserve:
               (1)  each application for a cash transaction card the
  entity receives until the second anniversary of the date the
  application was received; and
               (2)  a copy of each cash transaction card the entity
  issues or renews until the second anniversary of the date the card
  was issued or renewed.
         Sec. 1956.041.  ADMINISTRATIVE PENALTY. (a) The
  commission, after notice and an opportunity for a hearing, may
  impose an administrative penalty on a person who violates Section
  1956.036.
         (b)  The amount of the administrative penalty may not exceed
  $1,000.  Each day a violation occurs or continues to occur is a
  separate violation for the purpose of imposing a penalty. In
  determining the amount of the administrative penalty, the
  commission shall consider:
               (1)  the seriousness of the violation, including the
  nature, circumstances, extent, and gravity of the violation;
               (2)  the economic harm caused by the violation;
               (3)  the history of previous violations;
               (4)  the amount necessary to deter a future violation;
               (5)  efforts to correct the violation; and
               (6)  any other matter that justice may require.
         (c)  The enforcement of the administrative penalty may be
  stayed during the time the order is under judicial review if the
  person pays the penalty to the clerk of the court or files a
  supersedeas bond with the court in the amount of the penalty. A
  person who cannot afford to pay the penalty or file the bond may
  stay the enforcement by filing an affidavit in the manner required
  by the Texas Rules of Civil Procedure for a party who cannot afford
  to file security for costs, subject to the right of the commission
  to contest the affidavit as provided by those rules.
         (d)  The attorney general may sue to collect the
  administrative penalty.
         (e)  A proceeding to impose an administrative penalty is
  considered to be a contested case under Chapter 2001, Government
  Code.
         SECTION 9.  Section 1956.041, Occupations Code, as added by
  this Act, applies only to a violation of Section 1956.036,
  Occupations Code, as amended by this Act, committed on or after the
  effective date of this Act. A violation committed before the
  effective date of this Act is governed by the law in effect on the
  date the violation was committed, and the former law is continued in
  effect for that purpose.
         SECTION 10.  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 11.  As soon as practicable after the effective date
  of this Act, the public safety director of the Department of Public
  Safety of the State of Texas shall appoint the three additional
  members to the advisory committee as required by Section 1956.017,
  Occupations Code, as amended by this Act.
         SECTION 12.  During the calendar year ending December 31,
  2023, the advisory committee established under Section 1956.017,
  Occupations Code, as amended by this Act, shall study the effects of
  the cash transaction card provisions of Section 1956.0382,
  Occupations Code, as added by this Act, and report the committee's
  findings and recommendations to the legislature before December 1,
  2024.
         SECTION 13.  This Act takes effect September 1, 2015.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 2187 was passed by the House on May
  13, 2015, by the following vote:  Yeas 125, Nays 18, 1 present, not
  voting.
 
  ______________________________
  Chief Clerk of the House   
 
 
         I certify that H.B. No. 2187 was passed by the Senate on May
  30, 2015, by the following vote:  Yeas 26, Nays 5.
 
  ______________________________
  Secretary of the Senate    
  APPROVED:  _____________________
                     Date          
   
            _____________________
                   Governor