85R2123 TSR-F By: West S.B. No. 208 A BILL TO BE ENTITLED AN ACT relating to the regulation of metal recycling entities; providing an administrative penalty; creating a criminal offense. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 1956.001, Occupations Code, is amended by amending Subdivision (6-a) and adding Subdivisions (6-b) and (6-c) to read as follows: (6-a) "Explosive component" means any component of an explosive weapon containing or consisting of regulated material, including exploded or disassembled ammunition, munitions, shell casings, spin or fin stabilized projectiles, and shrapnel. The term does not include pellet ammunition, shotgun ammunition, or ammunition of .50 caliber or less that does not contain explosive powder. (6-b) "Explosive weapon" means any explosive or incendiary device that is designed, made, or adapted for the purpose of inflicting serious bodily injury, death, or substantial property damage, or for the principal purpose of causing such a loud report as to cause undue public alarm or terror, including an explosive or incendiary bomb, grenade, rocket, or mine, or a device designed, made, or adapted for delivering or shooting an explosive or incendiary device or starting a fire in a time-delayed manner. The term includes exploded or unexploded ammunition, munition, blasting caps, anti-tank rounds, ordnances, or projectiles. The term does not include pellet ammunition, shotgun ammunition, or ammunition of .50 caliber or less that does not contain explosive powder. (6-c) "Lead material" means: (A) a commercial grade lead battery, lead-acid battery, or spiral cell battery; or (B) a material or an item readily identifiable as being made of or containing lead. SECTION 2. Section 1956.015(a), Occupations Code, is amended to read as follows: (a) The department shall establish a statewide electronic reporting system to track the sales of regulated metal reported to the department under Section 1956.036. The department shall use the system to track the sale or attempted sale of an explosive component or an explosive weapon reported to the department under Section 1956.036(f). SECTION 3. Section 1956.036, Occupations Code, is amended by adding Subsection (f) to read as follows: (f) A metal recycling entity shall report to the department by telephone, by e-mail, or through the department's Internet website each sale or attempted sale to the entity of an explosive component or explosive weapon as soon as possible after the sale or attempted sale, but not later than the close of business on the entity's first working day after the date of the sale or attempted sale. SECTION 4. Section 1956.040, Occupations Code, is amended by adding Subsections (c-1), (c-2), (c-3), (c-4), (c-5), and (d-1) to read as follows: (c-1) A person commits an offense if the person knowingly sells to a metal recycling entity: (1) an explosive component; or (2) an explosive weapon. (c-2) A metal recycling entity commits an offense if the entity knowingly buys: (1) an explosive component; or (2) an explosive weapon. (c-3) Except as provided by Subsection (c-5), an offense under Subsection (c-1)(1) or (c-2)(1) is a Class A misdemeanor. Except as provided by Subsection (c-5), an offense under Subsection (c-1)(2) or (c-2)(2) is a felony of the third degree. (c-4) A metal recycling entity commits an offense if the entity knowingly stores or allows to be stored on the entity's premises an explosive component or explosive weapon. Except as provided by Subsection (c-5), an offense under this subsection is a Class A misdemeanor. (c-5) An offense under Subsection (c-1), (c-2), or (c-4) is a felony of the second degree if it is shown at the trial of the offense that a person suffered death or serious bodily injury, as defined by Section 1.07, Penal Code, as a result of the detonation of an explosive component or explosive weapon. (d-1) On conviction of an offense under Subsection (c-1), (c-2), or (c-4), the court may order the defendant to make restitution to: (1) the state or a political subdivision of the state for the costs incurred by the state or subdivision for responding to the offense and any removal, cleaning, sanitizing, demolition, reconstruction, or other treatment required as a result of the offense; and (2) the owner of any property damaged as a result of the offense. SECTION 5. Section 1956.041, Occupations Code, is amended by amending Subsections (a) and (b) and adding Subsections (b-1) and (f) to read as follows: (a) The commission, after notice and an opportunity for a hearing, may impose an administrative penalty on a person who violates this subchapter or Subchapter A-2 or a rule or order of the commission under this chapter [Section 1956.036]. (b) The amount of the administrative penalty may not exceed $1,000 for each violation. The aggregate penalty for multiple violations may not exceed $10,000. Each day a violation occurs or continues to occur is a separate violation for the purpose of imposing a penalty. In determining the amount of the administrative penalty, the commission shall consider: (1) the seriousness of the violation, including the nature, circumstances, extent, and gravity of the violation; (2) the economic harm caused by the violation; (3) the history of previous violations; (4) the amount necessary to deter a future violation; (5) efforts to correct the violation; and (6) any other matter that justice may require. (b-1) The commission by rule shall adopt a standardized penalty schedule for a violation based on the criteria listed in Subsection (b). (f) An administrative penalty collected under this section shall be deposited in a special account in the general revenue fund and may be appropriated only to the department. SECTION 6. Section 1956.041, Occupations Code, as amended by this Act, applies only to a violation committed on or after the effective date of this Act. A violation committed before the effective date of this Act is governed by the law in effect on the date the violation was committed, and the former law is continued in effect for that purpose. SECTION 7. This Act takes effect September 1, 2017.