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          A BILL TO BE ENTITLED
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          AN ACT
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        relating to the prosecution of criminal offenses regarding  | 
      
      
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        unauthorized recordings. | 
      
      
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               BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | 
      
      
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               SECTION 1.  Section 641.001(4), Business & Commerce Code, is  | 
      
      
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        amended to read as follows: | 
      
      
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                     (4)  "Recording" means a tangible medium on which  | 
      
      
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        sounds, images, or both are recorded or otherwise stored,  | 
      
      
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        including: | 
      
      
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                           (A)  an original phonograph record, disc, tape,  | 
      
      
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        audio or video cassette, wire, film, memory card, flash drive, hard  | 
      
      
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        drive, data storage device, or other medium now existing or later  | 
      
      
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        developed; or | 
      
      
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                           (B)  a copy or reproduction that wholly or partly  | 
      
      
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        duplicates the original. | 
      
      
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               SECTION 2.  Section 641.054, Business & Commerce Code, is  | 
      
      
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        amended to read as follows: | 
      
      
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               Sec. 641.054.  IMPROPER LABELING.  (a)  A person commits an  | 
      
      
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        offense if: | 
      
      
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                     (1)  for commercial advantage or private financial  | 
      
      
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        gain, the person knowingly: | 
      
      
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                           (A)  advertises, offers for sale, sells, rents, or  | 
      
      
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        transports a recording; | 
      
      
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                           (B)  causes the sale, resale, rental, or  | 
      
      
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        transportation of a recording; or | 
      
      
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                           (C)  possesses a recording for a purpose described  | 
      
      
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        by Paragraph (A) or (B); and | 
      
      
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                     (2)  the outside cover, box, or jacket of the recording  | 
      
      
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        does not clearly and conspicuously disclose[:
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                           [(A)]  the actual name and address of the  | 
      
      
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        manufacturer[; and
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                           [(B)  the name of the performer or group]. | 
      
      
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               (b)  An offense under this section is punishable by: | 
      
      
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                     (1)  imprisonment for a term of not more than five  | 
      
      
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        years, a fine not to exceed $250,000, or both imprisonment and the  | 
      
      
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        fine, if: | 
      
      
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                           (A)  the offense involves [at least] 65 or more  | 
      
      
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        improperly labeled [unauthorized] recordings, or the commercial  | 
      
      
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        equivalent thereof, during a 180-day period; or | 
      
      
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                           (B)  the defendant has been previously convicted  | 
      
      
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        under this section; | 
      
      
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                     (2)  imprisonment for a term of not more than two years,  | 
      
      
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        a fine not to exceed $250,000, or both imprisonment and the fine, if  | 
      
      
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        the offense involves more than seven but fewer than 65 improperly  | 
      
      
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        labeled [unauthorized] recordings, or the commercial equivalent  | 
      
      
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        thereof, during a 180-day period; or | 
      
      
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                     (3)  confinement in the county jail for a term of not  | 
      
      
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        more than one year, a fine not to exceed $25,000, or both  | 
      
      
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        confinement and the fine, if the offense is not otherwise  | 
      
      
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        punishable under Subdivision (1) or (2). | 
      
      
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               SECTION 3.  Article 42.037, Code of Criminal Procedure, is  | 
      
      
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        amended by adding Subsections (t), (u), and (v) to read as follows: | 
      
      
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               (t)  If a person is convicted of an offense under Section  | 
      
      
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        641.054, Business & Commerce Code, the court shall order the person  | 
      
      
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        to make restitution to an owner or lawful producer of a master  | 
      
      
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        recording that has suffered financial loss as a result of the  | 
      
      
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        offense or to a trade association that represents that owner or  | 
      
      
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        lawful producer.  The amount of restitution ordered shall be: | 
      
      
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                     (1)  the greater of: | 
      
      
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                           (A)  the aggregate wholesale value of the lawfully  | 
      
      
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        manufactured and authorized recordings corresponding to the number  | 
      
      
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        of nonconforming recordings involved in the offense; or | 
      
      
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                           (B)  the actual financial loss to the owner,  | 
      
      
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        lawful producer, or trade association; and | 
      
      
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                     (2)  the costs associated with investigating the  | 
      
      
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        offense. | 
      
      
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               (u)  For purposes of Subsection (t)(1)(A): | 
      
      
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                     (1)  the calculation of the aggregate wholesale value  | 
      
      
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        is based on the average wholesale value of the lawfully  | 
      
      
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        manufactured and authorized recordings; and | 
      
      
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                     (2)  the specific wholesale value of each nonconforming  | 
      
      
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        recording is not relevant to the calculation. | 
      
      
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               (v)  For purposes of Subsection (t)(1)(B), the possession of  | 
      
      
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        a nonconforming recording intended for sale constitutes an actual  | 
      
      
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        financial loss to an owner or lawful producer equal to the actual  | 
      
      
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        value of the legitimate wholesale purchases displaced by the  | 
      
      
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        nonconforming recordings. | 
      
      
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               SECTION 4.  The change in law made by this Act applies only  | 
      
      
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        to an offense committed on or after the effective date of this Act.   | 
      
      
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        An offense committed before the effective date of this Act is  | 
      
      
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        governed by the law in effect at the time the offense was committed.   | 
      
      
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        For purposes of this section, an offense was committed before the  | 
      
      
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        effective date of this Act if any element of the offense occurred  | 
      
      
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        before that date. | 
      
      
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               SECTION 5.  This Act takes effect September 1, 2017. |