84R6291 TSR-F

By: Taylor of Galveston S.B. No. 513

A BILL TO BE ENTITLED

AN ACT

relating to the regulation of metal recycling entities; imposing an administrative penalty.

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

SECTION 1. Section 1956.032, Occupations Code, is amended by adding Subsection (a-1) to read as follows:

(a-1) A person attempting to sell regulated material to a metal recycling entity shall sign a written statement provided by the metal recycling entity certifying that the person has not previously been convicted of an offense:

(1) under Section 31.03, Penal Code, if the property stolen was regulated material; or

(2) under another law of this state or of another jurisdiction involving the sale of regulated material.

SECTION 2. 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 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) and (a-1);

(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).

SECTION 3. Section 1956.038, Occupations Code, is amended by amending Subsections (a), (b), and (c) and adding Subsection (b-1) to read as follows:

(a) A person may not, with the intent to deceive:

(1) display to a metal recycling entity a false or invalid personal identification document in connection with the person's attempted sale of regulated material;

(2) make a false, material statement or representation to a metal recycling entity in connection with:

(A) that person's execution of a written statement required by Sections [Section] 1956.032(a)(3) and (a-1); or

(B) the entity's efforts to obtain the information required under Section 1956.033(b);

(3) display or provide to a metal recycling entity any information required under Section 1956.032 that the person knows is false or invalid; or

(4) display another individual's personal identification document in connection with the sale of regulated material.

(b) A metal recycling entity may only [not] pay for a purchase of regulated material in the manner provided by Section 1956.0381 [in cash if:

[(1) the entity does not hold a certificate of registration under Subchapter A-2 and, if applicable, a license or permit required by a county, municipality, or other political subdivision as authorized under Section 1956.003(b); or

[(2) the entity has been prohibited by the department from paying cash under Section 1956.036(e)].

(b-1) A metal recycling entity may not enter into more than one transaction for the purchase of regulated material from the same seller in a business day.

(c) A person may not sell or attempt to sell regulated material to a metal recycling entity if the person has been previously convicted of an offense:

(1) under Section 31.03, Penal Code, if the property stolen was regulated material; or

(2) under another law of this state or of another jurisdiction involving the sale of regulated material [Notwithstanding Section 1956.003(a) or any other law, a county, municipality, or other political subdivision may not adopt or enforce a rule, charter, or ordinance or issue an order or impose standards that limit the use of cash by a metal recycling entity in a manner more restrictive than that provided by Subsection (b)].

SECTION 4. Subchapter A-3, Chapter 1956, Occupations Code, is amended by adding Sections 1956.0381 and 1956.041 to read as follows:

Sec. 1956.0381. PAYMENT BY METAL RECYCLING ENTITY. (a) Except as provided by Subsection (c), a metal recycling entity may only pay for a purchase of regulated material by:

(1) check;

(2) money order; or

(3) direct deposit by electronic funds transfer.

(b) A metal recycling entity that pays for a purchase of regulated material by check or money order shall obtain a digital photograph or video recording that accurately depicts:

(1) the seller's entire face; and

(2) each type of regulated material purchased.

(c) For any sale of regulated material to a metal recycling entity in which the amount of the transaction is equal to or exceeds $25, the metal recycling entity must pay the seller by mailing to the address located on the personal identification document provided by the seller under Section 1956.032:

(1) a check or money order made payable to the seller; or

(2) a notice to the seller stating the time after which the seller may pick up at the metal recycling entity a check or money order made payable to the seller.

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 5. The following provisions of the Occupations Code are repealed:

(1) Section 1956.036(e); and

(2) Section 1956.038(d).

SECTION 6. 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 7. This Act takes effect September 1, 2015.