H.B. No. 4110
AN ACT
relating to the regulation of metal recycling; increasing a
criminal penalty.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 1956.001, Occupations Code, is amended
by adding Subdivision (2-a) to read as follows:
(2-a) "Catalytic converter" includes any material
removed from a catalytic converter.
SECTION 2. Subchapter A-3, Chapter 1956, Occupations Code,
is amended by adding Section 1956.0321 to read as follows:
Sec. 1956.0321. ADDITIONAL REQUIREMENTS REGARDING PURCHASE
OF CATALYTIC CONVERTER. (a) In addition to the requirements of
Section 1956.032, a person attempting to sell a catalytic converter
to a metal recycling entity shall provide to the metal recycling
entity:
(1) the year, make, model, and vehicle identification
number for the vehicle from which the catalytic converter was
removed; and
(2) a copy of the certificate of title or other
documentation indicating that the person has an ownership interest
in the vehicle described by Subdivision (1).
(b) A metal recycling entity may not purchase a catalytic
converter from a seller who does not comply with the requirements of
Subsection (a).
(c) A metal recycling entity may not purchase a catalytic
converter unless the entity determines that the catalytic converter
is consistent with the manufacturer's specifications for a
catalytic converter from the vehicle for which the seller provided
information under Subsection (a)(1).
(d) A metal recycling entity shall mark, in the manner
prescribed by the commission by rule, each catalytic converter
purchased by the entity with a unique number.
(e) A metal recycling entity shall keep an accurate
electronic record or an accurate and legible written record of each
purchase of a catalytic converter made in the course of the entity's
business. The record must be in English and include:
(1) the information required by Section 1956.033;
(2) the vehicle information provided under Subsection
(a)(1);
(3) a copy of the documentation described by
Subsection (a)(2); and
(4) the unique number marked on the catalytic
converter under Subsection (d).
SECTION 3. Section 1956.033(b), Occupations Code, is
amended to read as follows:
(b) The record must be in English and include:
(1) the place, date, and amount of the purchase;
(2) the name and address of the seller in possession of
the regulated material purchased;
(3) the identifying number of the seller's personal
identification document;
(4) a description made in accordance with the custom
of the trade of the commodity type and quantity of regulated
material purchased;
(5) the information required by Sections
1956.032(a)(2) and (3);
(6) as applicable:
(A) the identifying number of the seller's air
conditioning and refrigeration contractor license displayed under
Section 1956.032(a)(4)(A);
(B) a copy of the seller's air conditioning and
refrigeration technician registration displayed under Section
1956.032(a)(4)(B);
(C) a copy of the documentation described by
Section 1956.032(a)(4)(C); or
(D) a copy of the documentation described by
Section 1956.032(a)(4)(D);
(7) if applicable, a copy of the documentation
described by Section 1956.032(a)(5);
(8) a copy of the documentation described by Section
1956.032(g); [and]
(9) a copy of the documentation described by Section
1956.0381(b); and
(10) if the regulated material purchased is a
catalytic converter, a clear and legible thumbprint of the seller
unless the seller presents to the metal recycling entity a valid
cash transaction card issued under Section 1956.0382.
SECTION 4. Section 1956.034, Occupations Code, is amended
to read as follows:
Sec. 1956.034. PRESERVATION OF RECORDS. A metal recycling
entity shall preserve each record required by Sections 1956.032,
1956.0321, and 1956.033 until the second anniversary of the date
the record was made. The records must be kept in an easily
retrievable format and must be available for inspection as provided
by Section 1956.035 not later than 72 hours after the time of
purchase.
SECTION 5. Section 1956.035(a), Occupations Code, is
amended to read as follows:
(a) On request, a metal recycling entity shall permit a
peace officer of this state, a representative of the department, or
a representative of a county, municipality, or other political
subdivision that issues a license or permit under Section
1956.003(b) to inspect, during the entity's usual business hours:
(1) a record required by Section 1956.0321 or
1956.033;
(2) a digital photograph or video recording required
by Section 1956.0331;
(3) regulated material in the entity's possession; or
(4) an application for a cash transaction card
submitted to the entity.
SECTION 6. Section 1956.036(a), Occupations Code, is
amended to read as follows:
(a) Except as provided by Subsections (b) and (d), not later
than the close of business on a metal recycling entity's second
working day after the date of the purchase or other acquisition of
material for which a record is required under Section 1956.0321 or
1956.033, the entity shall send an electronic transaction report to
the department via the department's Internet website. Except as
provided by Subsection (d-1), the report must contain the
information required to be recorded under Sections 1956.0321 and
[Section] 1956.033.
SECTION 7. Section 1956.037(a), Occupations Code, is
amended to read as follows:
(a) A metal recycling entity may not dispose of, process,
sell, or remove from the premises an item of regulated metal unless:
(1) the entity acquired the item more than:
(A) eight days, excluding weekends and holidays,
before the disposal, processing, sale, or removal, if the item is a
cemetery vase, receptacle, or memorial made from a regulated
material other than aluminum material;
(B) five days, excluding weekends and holidays,
before the disposal, processing, sale, or removal, if the item is a
catalytic converter; or
(C) [(B)] 72 hours, excluding weekends and
holidays, before the disposal, processing, sale, or removal, if the
item is not an item described by Paragraph (A) or (B); or
(2) the entity purchased the item from a
manufacturing, industrial, commercial, retail, or other seller
that sells regulated material in the ordinary course of its
business.
SECTION 8. Section 1956.040, Occupations Code, is amended
by amending Subsections (a) and (b-1) and adding Subsection (b-2)
to read as follows:
(a) A person commits an offense if the person knowingly
violates Section 1956.038. Except as otherwise provided by this
subsection, an [An] offense under this subsection is a Class A
misdemeanor unless it is shown on trial of the offense that the
person has previously been convicted of a violation of this
subchapter, in which event the offense is a state jail felony. An
offense under this subsection involving a catalytic converter is a
state jail felony unless it is shown on trial of the offense that
the person has previously been convicted of a violation of this
subchapter involving a catalytic converter, in which event the
offense is a felony of the third degree.
(b-1) Except as otherwise provided by Subsection (b-2), an
[An] offense under Subsection (b) is a Class A misdemeanor unless it
is shown on trial of the offense that the person has previously been
convicted under Subsection (b), in which event the offense is a
state jail felony.
(b-2) An offense under Subsection (b)(1) in which the
regulated material purchased was a catalytic converter is a state
jail felony unless it is shown on trial of the offense that the
person has previously been convicted of an offense under Subsection
(b)(1) in which the regulated material purchased was a catalytic
converter, in which event the offense is a felony of the third
degree.
SECTION 9. Subchapter A, Chapter 2305, Occupations Code, is
amended by adding Section 2305.0051 to read as follows:
Sec. 2305.0051. RECORDS RELATED TO CATALYTIC CONVERTERS.
(a) The owner of a garage or repair shop that sells to a metal
recycling entity registered under Chapter 1956 a catalytic
converter that the person removed in connection with a motor
vehicle repair shall maintain a record of all repairs for the
vehicle that includes:
(1) the name and address of the vehicle's owner; and
(2) copies of all related invoices.
(b) Notwithstanding Section 2305.006(a), a record required
by this section shall be kept until at least the second anniversary
of the date of the repair.
SECTION 10. 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 11. This Act takes effect September 1, 2021.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 4110 was passed by the House on May
14, 2021, by the following vote: Yeas 116, Nays 28, 2 present, not
voting; and that the House concurred in Senate amendments to H.B.
No. 4110 on May 28, 2021, by the following vote: Yeas 118, Nays 27,
1 present, not voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 4110 was passed by the Senate, with
amendments, on May 25, 2021, by the following vote: Yeas 31, Nays
0.
______________________________
Secretary of the Senate
APPROVED: __________________
Date
__________________
Governor