H.B. No. 2490
AN ACT
relating to the regulation of crafted precious metal dealers;
providing criminal and administrative penalties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 1956.051, Occupations Code, is amended
to read as follows:
Sec. 1956.051. DEFINITIONS. In this subchapter:
(1) "Commission" means the Finance Commission of
Texas.
(2) "Commissioner" means the consumer credit
commissioner.
(3) "Crafted precious metal" means jewelry,
silverware, an art object, or another object, made wholly or partly
from precious metal, other than a coin, a bar, a [or] commemorative
medallion, or scrap or a broken item selling at five percent or more
than the scrap value of the item [made in whole or in part from
precious metal].
(4) [(2)] "Dealer" means a person registered to engage
[who engages] in the business of purchasing and selling crafted
precious metal, including purchases or sales made through the mail.
(5) [(3)] "Department" means the Texas Department of
Public Safety.
(6) [(4)] "Precious metal" means gold, silver,
platinum, palladium, iridium, rhodium, osmium, ruthenium, or an
alloy of those metals.
SECTION 2. Subchapter B, Chapter 1956, Occupations Code, is
amended by adding Section 1956.0511 to read as follows:
Sec. 1956.0511. ADMINISTRATION BY COMMISSION. (a)
Notwithstanding any other provision of this chapter, the commission
shall administer and enforce this subchapter, unless the context
clearly requires another state agency to perform a specific duty.
(b) To the extent of any conflict between this subchapter
and other provisions of this chapter, this subchapter prevails.
SECTION 3. Section 1956.060, Occupations Code, is amended
to read as follows:
Sec. 1956.060. EXCEPTION: CRAFTED PRECIOUS METAL ACQUIRED
BY PERSON LICENSED UNDER TEXAS PAWNSHOP ACT. This subchapter does
not apply to crafted precious metal acquired by:
(1) a person licensed under Chapter 371, Finance Code;
or
(2) an entity affiliated with a person licensed under
Chapter 371, Finance Code, if the entity's recordkeeping practices
satisfy the requirements of that chapter.
SECTION 4. Subchapter B, Chapter 1956, Occupations Code, is
amended by adding Sections 1956.0611, 1956.0612, 1956.0613,
1956.0614, and 1956.0615 to read as follows:
Sec. 1956.0611. RULEMAKING. The commission may adopt rules
necessary to implement and enforce this subchapter.
Sec. 1956.0612. REGISTRATION AS DEALER. (a) A person may
not engage in the business of purchasing and selling crafted
precious metal unless the person is registered with the
commissioner as a dealer under this section.
(b) To register as a dealer, a person must provide to the
commissioner, on or before December 31 preceding each calendar year
in which the person seeks to act as a dealer:
(1) a list of each location in this state at which the
person will conduct business as a dealer; and
(2) a processing fee for each location included on the
list furnished under Subdivision (1).
(c) The commissioner shall prescribe the processing fee in
an amount necessary to cover the costs of administering this
section.
(d) After the December 31 deadline, a dealer may amend the
registration required under Subsection (a) to reflect any change in
the information provided by the registration.
(e) The commissioner shall make available to the public a
list of dealers registered under this section.
(f) The commissioner may prescribe the registration form.
(g) A reference to a registration in another subchapter of
this chapter does not apply to a person to the extent the person is
registered under this subchapter.
Sec. 1956.0613. INVESTIGATION BY COMMISSIONER. The
commissioner shall:
(1) monitor the operations of a dealer to ensure
compliance with this chapter; and
(2) receive and investigate complaints against a
dealer or a person acting as a dealer.
Sec. 1956.0614. REVOCATION OF REGISTRATION. (a) The
commissioner may revoke the registration of a dealer if the
commissioner concludes that the dealer has violated this chapter.
The commissioner shall recite the basis of the decision in an order
revoking the registration.
(b) If the commissioner proposes to revoke a registration,
the dealer is entitled to a hearing before the commissioner or a
hearings officer, who shall propose a decision to the commissioner.
The commissioner or hearings officer shall prescribe the time and
place of the hearing. The hearing is governed by Chapter 2001,
Government Code.
(c) A dealer aggrieved by a ruling, order, or decision of
the commissioner is entitled to appeal to a district court in the
county in which the hearing was held. An appeal under this
subsection is governed by Chapter 2001, Government Code.
Sec. 1956.0615. ADMINISTRATIVE PENALTY. The commissioner
may assess an administrative penalty not to exceed $500 against a
person for each knowing and wilful violation of this chapter.
SECTION 5. Section 1956.063(c), Occupations Code, is
amended to read as follows:
(c) For each transaction regulated by this subchapter, the
[The] dealer shall submit a [the] report on a preprinted and
prenumbered form prescribed by the commissioner [district attorney
or person performing the duties of district attorney of the county
in which the transaction occurs]. The form must include the
following:
(1) the date of the transaction;
(2) a description of the crafted precious metal
purchased by the dealer;
(3) the name and physical address of the dealer; and
(4) the name, physical description, and physical
address of the seller or transferor.
SECTION 6. Section 1956.064, Occupations Code, is amended
by amending Subsection (b) and adding Subsection (c) to read as
follows:
(b) A peace officer who has reasonable suspicion to believe
that an item of crafted precious metal in the possession of a dealer
is stolen may place the item on hold for a period not to exceed 60
days by issuing to the dealer a written notice that:
(1) specifically identifies the item alleged to be
stolen and subject to the hold; and
(2) informs the dealer of the requirements of
Subsection (c).
(c) On receiving the notice, the dealer may not melt,
deface, alter, or dispose of the identified crafted precious metal
until the hold is released in writing by a peace officer of this
state or a court order. [A dealer who retains information under
Subsection (a)(2) shall make that information available for
inspection by any peace officer.]
SECTION 7. Section 1956.067(a), Occupations Code, is
amended to read as follows:
(a) A dealer who conducts business at a temporary location
for a period of less than one year [90 days] may not engage in the
business of buying precious metal or used items made of precious
metal unless, within a 12-month period at least 30 days before the
date on which each purchase is made, the dealer [person] has filed:
(1) a registration statement with the department;
[and]
(2) a copy of the registration statement and a copy of
the dealer's certificate of registration issued under this
subchapter with the local law enforcement agency of:
(A) the municipality in which the temporary
location is located; or
(B) if the temporary location is not located in a
municipality, the county in which the temporary location is
located; and
(3) a copy of the dealer's certificate of registration
issued under this subchapter with the county and, if applicable,
the municipality in which the temporary location is located.
SECTION 8. Section 1956.069(a), Occupations Code, is
amended to read as follows:
(a) A person [dealer] commits an offense if the person
[dealer]:
(1) fails to make or permit inspection of a report as
required by Section 1956.062 or 1956.063;
(2) violates [disposes of crafted precious metal or
fails to make a record available for inspection by a peace officer
as required by] Section 1956.0612 or 1956.064;
(3) fails to obtain or retain a statement as required
by Section 1956.066;
(4) fails to file a registration statement as required
by Section 1956.067; or
(5) purchases an object in violation of Section
1956.068.
SECTION 9. 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 10. Not later than December 1, 2011, the Finance
Commission of Texas shall adopt rules to implement Subchapter B,
Chapter 1956, Occupations Code, as amended by this Act.
SECTION 11. (a) Except as provided by Subsection (b) of
this section, this Act takes effect September 1, 2011.
(b) Section 1956.0612, Occupations Code, as added by this
Act, and Sections 1956.067(a) and 1956.069(a), Occupations Code, as
amended by this Act, take effect January 1, 2012.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 2490 was passed by the House on May 3,
2011, by the following vote: Yeas 135, Nays 9, 1 present, not
voting; that the House refused to concur in Senate amendments to
H.B. No. 2490 on May 25, 2011, and requested the appointment of a
conference committee to consider the differences between the two
houses; and that the House adopted the conference committee report
on H.B. No. 2490 on May 28, 2011, by the following vote: Yeas 146,
Nays 0, 2 present, not voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 2490 was passed by the Senate, with
amendments, on May 23, 2011, by the following vote: Yeas 30, Nays
0; at the request of the House, the Senate appointed a conference
committee to consider the differences between the two houses; and
that the Senate adopted the conference committee report on H.B. No.
2490 on May 29, 2011, by the following vote: Yeas 31, Nays 0
.
______________________________
Secretary of the Senate
APPROVED: __________________
Date
__________________
Governor