S.B. No. 1132

AN ACT

relating to the regulation of crafted precious metal dealers; authorizing the change of a fee.

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

SECTION 1. Section 1956.051, Occupations Code, is amended by amending Subdivision (3) and adding Subdivision (5-a) to read as follows:

(3) "Crafted precious metal" means jewelry, silverware, an art object, or another object, made wholly or partly from precious metal and used primarily for personal, family, or household purchases. The term does not include:

(A) [, other than] a coin;

(B) [,] a bar;

(C) [,] a commemorative medallion;

(D) an item selling at 105 percent or more of[, or scrap or a broken item selling at five percent or more than] the scrap value of the item;

(E) an item made wholly or partly from precious metal and used for a dental, pharmaceutical, or medical application; or

(F) an item made wholly or partly from precious metal extracted, recovered, or salvaged from an industrial by-product or industrial waste product.

(5-a) "Jewelry store" means a retail establishment that derives 75 percent or more of its annual revenue from the sale to consumers of crafted precious metal or other items of personal adornment, including watches, bracelets, necklaces, brooches, rings, and earrings.

SECTION 2. Section 1956.0612(c), Occupations Code, is amended to read as follows:

(c) The commissioner shall prescribe the processing fee in an amount necessary to cover the costs of administering this subchapter [section].

SECTION 3. Section 1956.0613, Occupations Code, is amended to read as follows:

Sec. 1956.0613. INVESTIGATION BY COMMISSIONER. The commissioner shall:

(1) monitor the operations of a dealer to ensure compliance with this subchapter [chapter]; and

(2) receive and investigate complaints against a dealer or a person acting as a dealer.

SECTION 4. Subchapter B, Chapter 1956, Occupations Code, is amended by adding Section 1956.06131 to read as follows:

Sec. 1956.06131. EXAMINATION BY COMMISSIONER. (a) At the times the commissioner considers necessary, the commissioner or the commissioner's representative may:

(1) examine each place of business of each dealer; and

(2) investigate the dealer's transactions and records, including books, accounts, papers, and correspondence, to the extent the transactions and records pertain to the business regulated under this subchapter.

(b) A dealer shall:

(1) give the commissioner or the commissioner's representative free access to the dealer's office, place of business, files, safes, and vaults; and

(2) allow the commissioner or the representative to make a copy of an item that may be investigated under Subsection (a)(2).

(c) The commissioner or the commissioner's representative shall examine under Subsection (a) at least 10 dealers each calendar year.

(d) This section does not apply with respect to a jewelry store.

SECTION 5. Subchapter B, Chapter 1956, Occupations Code, is amended by adding Section 1956.0616 to read as follows:

Sec. 1956.0616. NOTICE OF ENFORCEMENT ORDER. (a) As soon as practicable after an enforcement order against a dealer for a violation of this subchapter becomes final, including an order assessing an administrative penalty or an order to pay restitution under Section 14.251(b)(3), Finance Code, the commissioner shall provide notice of the order to:

(1) the chief of police of the municipality in which the violation occurred; or

(2) the sheriff of the county in which the violation occurred, if the violation did not occur in a municipality.

(b) The notice must include:

(1) a copy of the enforcement order;

(2) the information on complaint procedures described by Section 14.062(b), Finance Code; and

(3) any other information the commissioner considers necessary or proper to the enforcement of this subchapter.

SECTION 6. Sections 1956.052, 1956.053, and 1956.054, Occupations Code, are repealed.

SECTION 7. (a) Except as provided by Subsection (b) of this section, this Act takes effect September 1, 2021.

(b) Section 1956.06131, Occupations Code, as added by this Act, takes effect January 1, 2022.

______________________________ ______________________________

President of the Senate Speaker of the House

I hereby certify that S.B. No. 1132 passed the Senate on April 13, 2021, by the following vote: Yeas 31, Nays 0; and that the Senate concurred in House amendment on May 28, 2021, by the following vote: Yeas 31, Nays 0.

______________________________ Secretary of the Senate

I hereby certify that S.B. No. 1132 passed the House, with amendment, on May 23, 2021, by the following vote: Yeas 126, Nays 19, two present not voting.

______________________________ Chief Clerk of the House

Approved:

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Date

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Governor