| 1 | 1 | | 85R12497 GRM-D |
|---|
| 2 | 2 | | By: Dukes H.B. No. 4077 |
|---|
| 3 | 3 | | |
|---|
| 4 | 4 | | |
|---|
| 5 | 5 | | A BILL TO BE ENTITLED |
|---|
| 6 | 6 | | AN ACT |
|---|
| 7 | 7 | | relating to the disposition and identification of certain goods |
|---|
| 8 | 8 | | acquired by recycling entities and pawnbrokers; providing an |
|---|
| 9 | 9 | | administrative penalty. |
|---|
| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|---|
| 11 | 11 | | SECTION 1. Section 1956.064(a), Occupations Code, is |
|---|
| 12 | 12 | | amended to read as follows: |
|---|
| 13 | 13 | | (a) A dealer may not melt, deface, alter, or dispose of |
|---|
| 14 | 14 | | crafted precious metal that is the subject of a report required by |
|---|
| 15 | 15 | | this subchapter before the 14th [11th] day after the date the report |
|---|
| 16 | 16 | | is filed unless: |
|---|
| 17 | 17 | | (1) the peace officer to whom the report is submitted, |
|---|
| 18 | 18 | | for good cause, authorizes disposition of the metal; |
|---|
| 19 | 19 | | (2) the dealer obtains the name, address, and |
|---|
| 20 | 20 | | description of the buyer and retains a record of that information; |
|---|
| 21 | 21 | | or |
|---|
| 22 | 22 | | (3) the dealer is a pawnbroker and the disposition is |
|---|
| 23 | 23 | | the redemption of pledged property by the pledgor. |
|---|
| 24 | 24 | | SECTION 2. The heading to Section 371.181, Finance Code, is |
|---|
| 25 | 25 | | amended to read as follows: |
|---|
| 26 | 26 | | Sec. 371.181. STOLEN GOODS; ELECTRONIC REPORTING. |
|---|
| 27 | 27 | | SECTION 3. Section 371.181, Finance Code, is amended by |
|---|
| 28 | 28 | | amending Subsection (a) and adding Subsections (c), (d), (e), and |
|---|
| 29 | 29 | | (f) to read as follows: |
|---|
| 30 | 30 | | (a) A pawnbroker shall monitor and report as provided by |
|---|
| 31 | 31 | | this section goods purchased, accepted in pawn, or otherwise |
|---|
| 32 | 32 | | acquired by the pawnbroker in order to identify and prohibit |
|---|
| 33 | 33 | | transactions involving stolen goods. |
|---|
| 34 | 34 | | (c) Before the end of each business day following the day |
|---|
| 35 | 35 | | goods are acquired by a pawnbroker, the pawnbroker shall |
|---|
| 36 | 36 | | electronically report goods purchased, accepted in pawn, or |
|---|
| 37 | 37 | | otherwise acquired by the pawnbroker to law enforcement agencies |
|---|
| 38 | 38 | | through a reporting database that is searchable by those agencies |
|---|
| 39 | 39 | | statewide and is: |
|---|
| 40 | 40 | | (1) generally accepted by law enforcement agencies; or |
|---|
| 41 | 41 | | (2) designated by the commission. |
|---|
| 42 | 42 | | (d) The finance commission shall adopt rules necessary to |
|---|
| 43 | 43 | | implement this section. The rules must: |
|---|
| 44 | 44 | | (1) require a complete description of the goods |
|---|
| 45 | 45 | | purchased, accepted in pawn, or otherwise acquired by the |
|---|
| 46 | 46 | | pawnbroker, including any available model numbers and serial |
|---|
| 47 | 47 | | numbers and other identifying characteristics; and |
|---|
| 48 | 48 | | (2) require the name and address of and the driver's |
|---|
| 49 | 49 | | license number, military identification number, or other official |
|---|
| 50 | 50 | | number that identifies the person pledging or selling goods. |
|---|
| 51 | 51 | | (e) A pawnbroker who fails to report an item under this |
|---|
| 52 | 52 | | section is subject to an administrative penalty under Section |
|---|
| 53 | 53 | | 371.303 in an amount not to exceed $500 for each item not reported. |
|---|
| 54 | 54 | | The commissioner may not assess an administrative penalty against a |
|---|
| 55 | 55 | | pawnbroker who makes a good faith effort to report goods |
|---|
| 56 | 56 | | electronically under this section, including a pawnbroker who is |
|---|
| 57 | 57 | | unable to submit a report due to technical problems beyond the |
|---|
| 58 | 58 | | pawnbroker's control. |
|---|
| 59 | 59 | | (f) Information reported to law enforcement agencies under |
|---|
| 60 | 60 | | this section may be used by those agencies only for law enforcement |
|---|
| 61 | 61 | | purposes. |
|---|
| 62 | 62 | | SECTION 4. Section 371.181, Finance Code, as amended by |
|---|
| 63 | 63 | | this Act, applies only to goods purchased, accepted in pawn, or |
|---|
| 64 | 64 | | otherwise acquired by the pawnbroker on or after January 1, 2019. |
|---|
| 65 | 65 | | Goods purchased, accepted in pawn, or otherwise acquired by the |
|---|
| 66 | 66 | | pawnbroker before January 1, 2019, are governed by the law in effect |
|---|
| 67 | 67 | | immediately before the effective date of this Act, and the former |
|---|
| 68 | 68 | | law is continued in effect for that purpose. |
|---|
| 69 | 69 | | SECTION 5. The reporting database required by Section |
|---|
| 70 | 70 | | 371.181, Finance Code, as amended by this Act, must be implemented |
|---|
| 71 | 71 | | not later than December 31, 2018. |
|---|
| 72 | 72 | | SECTION 6. This Act takes effect September 1, 2017. |
|---|