87R10695 MAW-D
 
  By: Leach, Harless H.B. No. 4110
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the regulation of metal recycling; increasing a
  criminal penalty.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter A-3, Chapter 1956, Occupations Code,
  is amended by adding Section 1956.0321 to read as follows:
         Sec. 1956.0321.  ADDITIONAL REQUIREMENTS REGARDING PURCHASE
  OF CATALYTIC CONVERTER. (a)  In addition to the requirements of
  Section 1956.032, a person attempting to sell a catalytic converter
  to a metal recycling entity shall provide to the metal recycling
  entity:
               (1)  the year, make, model, and vehicle identification
  number for the vehicle from which the catalytic converter was
  removed; and
               (2)  a copy of the certificate of title or other
  documentation indicating that the person has an ownership interest
  in the vehicle described by Subdivision (1).
         (b)  A metal recycling entity may not purchase a catalytic
  converter from a seller who does not comply with the requirements of
  Subsection (a).
         (c)  A metal recycling entity may not purchase a catalytic
  converter unless the entity determines that the catalytic converter
  is consistent with the manufacturer's specifications for a
  catalytic converter from the vehicle for which the seller provided
  information under Subsection (a)(1).
         (d)  A metal recycling entity shall mark, in the manner
  prescribed by the commission by rule, each catalytic converter
  purchased by the entity with a unique number.
         (e)  A metal recycling entity shall keep an accurate
  electronic record or an accurate and legible written record of each
  purchase of a catalytic converter made in the course of the entity's
  business. The record must be in English and include:
               (1)  the information required by Section 1956.033;
               (2)  the vehicle information provided under Subsection
  (a)(1);
               (3)  a copy of the documentation described by
  Subsection (a)(2); and
               (4)  the unique number marked on the catalytic
  converter under Subsection (d).
         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, 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);
               (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); and
               (10)  a clear and legible thumbprint of the seller.
         SECTION 3.  Section 1956.0331, Occupations Code, is amended
  by adding Subsection (a-1) to read as follows:
         (a-1)  If the regulated metal purchased is a catalytic
  converter, the photograph or recording under Subsection (a) must
  accurately depict:
               (1)  each open end of the catalytic converter; and
               (2)  all sides of the catalytic converter.
         SECTION 4.  Section 1956.034, Occupations Code, is amended
  to read as follows:
         Sec. 1956.034.  PRESERVATION OF RECORDS. A metal recycling
  entity shall preserve each record required by Sections 1956.032,
  1956.0321, and 1956.033 until the second anniversary of the date
  the record was made. The records must be kept in an easily
  retrievable format and must be available for inspection as provided
  by Section 1956.035 not later than 72 hours after the time of
  purchase.
         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 1956.0321 or
  1956.033;
               (2)  a digital photograph or video recording required
  by Section 1956.0331;
               (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(a), Occupations Code, is
  amended 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 1956.0321 or
  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 report must contain the
  information required to be recorded under Sections 1956.0321 and
  [Section] 1956.033.
         SECTION 7.  Section 1956.037(a), Occupations Code, is
  amended to read as follows:
         (a)  A metal recycling entity may not dispose of, process,
  sell, or remove from the premises an item of regulated metal unless:
               (1)  the entity acquired the item more than:
                     (A)  eight days, excluding weekends and holidays,
  before the disposal, processing, sale, or removal, if the item is a
  cemetery vase, receptacle, or memorial made from a regulated
  material other than aluminum material;
                     (B)  five days, excluding weekends and holidays,
  before the disposal, processing, sale, or removal, if the item is a
  catalytic converter; or
                     (C) [(B)]  72 hours, excluding weekends and
  holidays, before the disposal, processing, sale, or removal, if the
  item is not an item described by Paragraph (A) or (B); or
               (2)  the entity purchased the item from a
  manufacturing, industrial, commercial, retail, or other seller
  that sells regulated material in the ordinary course of its
  business.
         SECTION 8.  Section 1956.0381, Occupations Code, is amended
  by adding Subsection (c) to read as follows:
         (c)  Notwithstanding Subsection (a), a metal recycling
  entity may not pay a seller more than $25 in cash for a purchase of
  regulated metal.
         SECTION 9.  Sections 1956.040(a) and (b-1), Occupations
  Code, are amended to read as follows:
         (a)  A person commits an offense if the person knowingly
  violates Section 1956.038. An offense under this subsection is a
  state jail felony [Class A misdemeanor] unless it is shown on trial
  of the offense that the person has previously been convicted of a
  violation of this subchapter, in which event the offense is a [state
  jail] felony of the third degree.
         (b-1)  An offense under Subsection (b) is a state jail felony
  [Class A misdemeanor] unless it is shown on trial of the offense
  that the person has previously been convicted under Subsection (b),
  in which event the offense is a felony of the third degree [state
  jail felony].
         SECTION 10.  Subchapter A, Chapter 2305, Occupations Code,
  is amended by adding Section 2305.0051 to read as follows:
         Sec. 2305.0051.  RECORDS RELATED TO CATALYTIC CONVERTERS.
  (a) The owner of a garage or repair shop that sells to a metal
  recycling entity registered under Chapter 1956 a catalytic
  converter that the person removed in connection with a motor
  vehicle repair shall maintain a record of all repairs for the
  vehicle that includes:
               (1)  the name and address of the vehicle's owner; and
               (2)  copies of all related invoices.
         (b)  Notwithstanding Section 2305.006(a), a record required
  by this section shall be kept until at least the second anniversary
  of the date of the repair.
         SECTION 11.  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 12.  This Act takes effect September 1, 2021.