Texas Senate Bill SB437

Texas 2015 - 84th Regular

Caption

Relating to the method of payment for regulated material purchased by a metal recycling entity.

Impact

The passage of SB437 will amend existing statutes within the Occupations Code, specifically affecting Section 1956.038. The bill will repeal certain provisions that allowed cash payments under specific conditions. By enforcing transactions exclusively through checks, the bill is expected to create a more secure environment for metal trading while also providing law enforcement with a clearer method to track fraudulent activities and regulate the industry more effectively.

Summary

SB437 is a legislative bill introduced in Texas that modifies how metal recycling entities can make payments for regulated materials. The primary focus of the bill is to restrict payment options to checks that must be mailed to the seller at their registered address as indicated in their identification documents. This change aims to enhance the transparency and traceability of transactions in the metal recycling sector, which has faced scrutiny due to potential ties to theft and illegal transactions involving stolen metals.

Contention

Debates surrounding SB437 are likely to include concerns over the implications for small metal recycling businesses. Some stakeholders may argue that limiting payment to checks could complicate transactions, especially for smaller operators who might rely on cash payments due to their operational scale. Advocates of the change, however, emphasize the importance of reducing opportunities for illegal activities associated with cash transactions, thus supporting the bill as a necessary step for industry reform.