| 1 | 1 | | By: Carona S.B. No. 288 |
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| 2 | 2 | | (Orr) |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the regulation of crafted precious metal dealers. |
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| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 9 | | SECTION 1. Subdivision (3), Section 1956.051, Occupations |
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| 10 | 10 | | Code, is amended to read as follows: |
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| 11 | 11 | | (3) "Crafted precious metal" means jewelry, |
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| 12 | 12 | | silverware, an art object, or another object, made wholly or partly |
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| 13 | 13 | | from precious metal, that is selling at less than 105 percent of the |
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| 14 | 14 | | scrap value of the object, other than a coin, a bar, or a |
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| 15 | 15 | | commemorative medallion[, or scrap or a broken item selling at five |
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| 16 | 16 | | percent or more than the scrap value of the item]. |
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| 17 | 17 | | SECTION 2. Section 1956.0613, Occupations Code, is amended |
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| 18 | 18 | | to read as follows: |
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| 19 | 19 | | Sec. 1956.0613. INVESTIGATION BY COMMISSIONER; INSPECTION |
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| 20 | 20 | | OF RECORDS. (a) The commissioner shall: |
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| 21 | 21 | | (1) monitor the operations of a dealer to ensure |
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| 22 | 22 | | compliance with this subchapter [chapter]; and |
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| 23 | 23 | | (2) receive and investigate complaints against a |
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| 24 | 24 | | dealer or a person acting as a dealer. |
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| 25 | 25 | | (b) If the commissioner receives a written complaint |
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| 26 | 26 | | regarding a violation of this subchapter by a person, or has |
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| 27 | 27 | | reasonable cause to believe that a person is violating this |
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| 28 | 28 | | subchapter, the commissioner or the commissioner's authorized |
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| 29 | 29 | | representative may inspect any record, account, paper, book, or |
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| 30 | 30 | | correspondence of the person, regardless of whether the person is |
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| 31 | 31 | | registered as a dealer. |
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| 32 | 32 | | (c) The commissioner or the commissioner's authorized |
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| 33 | 33 | | representative may take statements in an investigation of a matter |
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| 34 | 34 | | under this subchapter. |
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| 35 | 35 | | SECTION 3. Section 1956.063, Occupations Code, is amended |
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| 36 | 36 | | by amending Subsections (c) and (d) and adding Subsection (c-1) to |
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| 37 | 37 | | read as follows: |
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| 38 | 38 | | (c) For each transaction regulated by this subchapter, the |
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| 39 | 39 | | dealer shall submit a report on a preprinted and prenumbered form |
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| 40 | 40 | | prescribed by the commissioner or in the manner described by |
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| 41 | 41 | | Subsection (c-1). The form must include the following: |
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| 42 | 42 | | (1) the date of the transaction; |
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| 43 | 43 | | (2) a description of the crafted precious metal |
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| 44 | 44 | | purchased by the dealer; |
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| 45 | 45 | | (3) the name and physical address of the dealer; and |
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| 46 | 46 | | (4) the name, physical description, and physical |
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| 47 | 47 | | address of the seller or transferor. |
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| 48 | 48 | | (c-1) A dealer may submit a list required by Section |
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| 49 | 49 | | 1956.062(b) in satisfaction of the reporting requirement of this |
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| 50 | 50 | | section if the list contains the information described by |
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| 51 | 51 | | Subsection (c). |
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| 52 | 52 | | (d) The dealer shall retain a copy of the report until the |
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| 53 | 53 | | later of: |
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| 54 | 54 | | (1) the second anniversary of the date the dealer |
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| 55 | 55 | | sells or otherwise disposes of the crafted precious metal purchased |
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| 56 | 56 | | by the dealer; or |
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| 57 | 57 | | (2) the third anniversary of the date the report is |
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| 58 | 58 | | filed. |
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| 59 | 59 | | SECTION 4. Subsections (b) and (c), Section 1956.064, |
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| 60 | 60 | | Occupations Code, are amended to read as follows: |
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| 61 | 61 | | (b) A peace officer who has reasonable suspicion to believe |
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| 62 | 62 | | that an item of crafted precious metal in the possession of a |
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| 63 | 63 | | dealer, or in the possession of another person on behalf of the |
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| 64 | 64 | | dealer, is stolen may place the item on hold for a period not to |
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| 65 | 65 | | exceed 60 days by issuing to the dealer or other person a written |
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| 66 | 66 | | notice that: |
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| 67 | 67 | | (1) specifically identifies the item alleged to be |
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| 68 | 68 | | stolen and subject to the hold; and |
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| 69 | 69 | | (2) informs the dealer or other person of the |
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| 70 | 70 | | requirements of Subsection (c). |
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| 71 | 71 | | (c) On receiving the notice, the dealer or other person may |
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| 72 | 72 | | not melt, deface, alter, or dispose of the identified crafted |
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| 73 | 73 | | precious metal until the hold is released in writing by a peace |
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| 74 | 74 | | officer of this state or a court order. |
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| 75 | 75 | | SECTION 5. Subsection (d), Section 1956.063, Occupations |
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| 76 | 76 | | Code, as amended by this Act, applies to a report filed under |
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| 77 | 77 | | Section 1956.063, Occupations Code, on or after the effective date |
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| 78 | 78 | | of this Act. |
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| 79 | 79 | | SECTION 6. This Act takes effect September 1, 2013. |
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