Texas 2023 - 88th Regular

Texas House Bill HB4598 Compare Versions

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Version 2 (New)

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1	1	88R9726 JCG-D
2	2	By: Leach H.B. No. 4598
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to catalytic converters, including criminal conduct
8	8	involving catalytic converters; providing an administrative
9	9	penalty; creating a criminal offense; increasing a criminal
10	10	penalty; increasing a fee.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	ARTICLE 1. TITLE
13	13	SECTION 1.01. This Act may be cited as the Deputy Darren
14	14	Almendarez Act.
15	15	ARTICLE 2. CRIMINAL OFFENSES
16	16	SECTION 2.01. Section 28.03(b), Penal Code, is amended to
17	17	read as follows:
18	18	(b) Except as provided by Subsections (f) and (h), an
19	19	offense under this section is:
20	20	(1) a Class C misdemeanor if:
21	21	(A) the amount of pecuniary loss is less than
22	22	$100; or
23	23	(B) except as provided in Subdivision (3)(A) or
24	24	(3)(B), it causes substantial inconvenience to others;
25	25	(2) a Class B misdemeanor if the amount of pecuniary
26	26	loss is $100 or more but less than $750;
27	27	(3) a Class A misdemeanor if:
28	28	(A) the amount of pecuniary loss is $750 or more
29	29	but less than $2,500; or
30	30	(B) the actor causes in whole or in part
31	31	impairment or interruption of any public water supply, or causes to
32	32	be diverted in whole, in part, or in any manner, including
33	33	installation or removal of any device for any such purpose, any
34	34	public water supply, regardless of the amount of the pecuniary
35	35	loss;
36	36	(4) a state jail felony if the amount of pecuniary loss
37	37	is:
38	38	(A) $2,500 or more but less than $30,000;
39	39	(B) less than $2,500, if the property damaged or
40	40	destroyed is a habitation and if the damage or destruction is caused
41	41	by a firearm or explosive weapon;
42	42	(C) less than $2,500, if the property was a fence
43	43	used for the production or containment of:
44	44	(i) cattle, bison, horses, sheep, swine,
45	45	goats, exotic livestock, or exotic poultry; or
46	46	(ii) game animals as that term is defined by
47	47	Section 63.001, Parks and Wildlife Code; [or]
48	48	(D) less than $30,000 and the actor:
49	49	(i) causes wholly or partly impairment or
50	50	interruption of property used for flood control purposes or a dam or
51	51	of public communications, public transportation, public gas or
52	52	power supply, or other public service; or
53	53	(ii) causes to be diverted wholly, partly,
54	54	or in any manner, including installation or removal of any device
55	55	for any such purpose, any public communications or public gas or
56	56	power supply; or
57	57	(E) less than $30,000, if the property is a motor
58	58	vehicle that is damaged, destroyed, or tampered with during the
59	59	removal or attempted removal of a catalytic converter from the
60	60	motor vehicle;
61	61	(5) a felony of the third degree if:
62	62	(A) the amount of the pecuniary loss is $30,000
63	63	or more but less than $150,000;
64	64	(B) the actor, by discharging a firearm or other
65	65	weapon or by any other means, causes the death of one or more head of
66	66	cattle or bison or one or more horses; or
67	67	(C) the actor causes wholly or partly impairment
68	68	or interruption of access to an automated teller machine,
69	69	regardless of the amount of the pecuniary loss;
70	70	(6) a felony of the second degree if the amount of
71	71	pecuniary loss is $150,000 or more but less than $300,000; or
72	72	(7) a felony of the first degree if the amount of
73	73	pecuniary loss is $300,000 or more.
74	74	SECTION 2.02. Section 31.03, Penal Code, is amended by
75	75	amending Subsections (c) and (e) and adding Subsection (f-1) to
76	76	read as follows:
77	77	(c) For purposes of Subsection (b):
78	78	(1) evidence that the actor has previously
79	79	participated in recent transactions other than, but similar to, the
80	80	transaction for [that] which the prosecution is based is admissible
81	81	for the purpose of showing knowledge or intent and the issues of
82	82	knowledge or intent are raised by the actor's plea of not guilty;
83	83	(2) the testimony of an accomplice shall be
84	84	corroborated by proof that tends to connect the actor to the crime,
85	85	but the actor's knowledge or intent may be established by the
86	86	uncorroborated testimony of the accomplice;
87	87	(3) an actor engaged in the business of buying and
88	88	selling used or secondhand personal property, or lending money on
89	89	the security of personal property deposited with the actor, is
90	90	presumed to know upon receipt by the actor of stolen property (other
91	91	than a motor vehicle subject to Chapter 501, Transportation Code)
92	92	that the property has been previously stolen from another if the
93	93	actor pays for or loans against the property $25 or more (or
94	94	consideration of equivalent value) and the actor knowingly or
95	95	recklessly:
96	96	(A) fails to record the name, address, and
97	97	physical description or identification number of the seller or
98	98	pledgor;
99	99	(B) fails to record a complete description of the
100	100	property, including the serial number, if reasonably available, or
101	101	other identifying characteristics; or
102	102	(C) fails to obtain a signed warranty from the
103	103	seller or pledgor that the seller or pledgor has the right to
104	104	possess the property. It is the express intent of this provision
105	105	that the presumption arises unless the actor complies with each of
106	106	the numbered requirements;
107	107	(4) for the purposes of Subdivision (3)(A),
108	108	"identification number" means driver's license number, military
109	109	identification number, identification certificate, or other
110	110	official number capable of identifying an individual;
111	111	(5) stolen property does not lose its character as
112	112	stolen when recovered by any law enforcement agency;
113	113	(6) an actor engaged in the business of obtaining
114	114	abandoned or wrecked motor vehicles or parts of an abandoned or
115	115	wrecked motor vehicle for resale, disposal, scrap, repair,
116	116	rebuilding, demolition, or other form of salvage is presumed to
117	117	know on receipt by the actor of stolen property that the property
118	118	has been previously stolen from another if the actor knowingly or
119	119	recklessly:
120	120	(A) fails to maintain an accurate and legible
121	121	inventory of each motor vehicle component part purchased by or
122	122	delivered to the actor, including the date of purchase or delivery,
123	123	the name, age, address, sex, and driver's license number of the
124	124	seller or person making the delivery, the license plate number of
125	125	the motor vehicle in which the part was delivered, a complete
126	126	description of the part, and the vehicle identification number of
127	127	the motor vehicle from which the part was removed, or in lieu of
128	128	maintaining an inventory, fails to record the name and certificate
129	129	of inventory number of the person who dismantled the motor vehicle
130	130	from which the part was obtained;
131	131	(B) fails on receipt of a motor vehicle to obtain
132	132	a certificate of authority, sales receipt, or transfer document as
133	133	required by Chapter 683, Transportation Code, or a certificate of
134	134	title showing that the motor vehicle is not subject to a lien or
135	135	that all recorded liens on the motor vehicle have been released; or
136	136	(C) fails on receipt of a motor vehicle to
137	137	immediately remove an unexpired license plate from the motor
138	138	vehicle, to keep the plate in a secure and locked place, or to
139	139	maintain an inventory, on forms provided by the Texas Department of
140	140	Motor Vehicles, of license plates kept under this paragraph,
141	141	including for each plate or set of plates the license plate number
142	142	and the make, motor number, and vehicle identification number of
143	143	the motor vehicle from which the plate was removed;
144	144	(7) an actor who purchases or receives a used or
145	145	secondhand motor vehicle is presumed to know on receipt by the actor
146	146	of the motor vehicle that the motor vehicle has been previously
147	147	stolen from another if the actor knowingly or recklessly:
148	148	(A) fails to report to the Texas Department of
149	149	Motor Vehicles the failure of the person who sold or delivered the
150	150	motor vehicle to the actor to deliver to the actor a properly
151	151	executed certificate of title to the motor vehicle at the time the
152	152	motor vehicle was delivered; or
153	153	(B) fails to file with the appropriate county tax
154	154	assessor-collector the documents required under Section 501.145,
155	155	Transportation Code, in the period provided by that section [of the
156	156	county in which the actor received the motor vehicle, not later than
157	157	the 20th day after the date the actor received the motor vehicle,
158	158	the registration license receipt and certificate of title or
159	159	evidence of title delivered to the actor in accordance with
160	160	Subchapter D, Chapter 520, Transportation Code, at the time the
161	161	motor vehicle was delivered];
162	162	(8) an actor who purchases or receives from any source
163	163	other than a licensed retailer or distributor of pesticides a
164	164	restricted-use pesticide or a state-limited-use pesticide or a
165	165	compound, mixture, or preparation containing a restricted-use or
166	166	state-limited-use pesticide is presumed to know on receipt by the
167	167	actor of the pesticide or compound, mixture, or preparation that
168	168	the pesticide or compound, mixture, or preparation has been
169	169	previously stolen from another if the actor:
170	170	(A) fails to record the name, address, and
171	171	physical description of the seller or pledgor;
172	172	(B) fails to record a complete description of the
173	173	amount and type of pesticide or compound, mixture, or preparation
174	174	purchased or received; and
175	175	(C) fails to obtain a signed warranty from the
176	176	seller or pledgor that the seller or pledgor has the right to
177	177	possess the property; [and]
178	178	(9) an actor who is subject to Section 409, Packers and
179	179	Stockyards Act (7 U.S.C. Section 228b), that obtains livestock from
180	180	a commission merchant by representing that the actor will make
181	181	prompt payment is presumed to have induced the commission
182	182	merchant's consent by deception if the actor fails to make full
183	183	payment in accordance with Section 409, Packers and Stockyards Act
184	184	(7 U.S.C. Section 228b); and
185	185	(10) an actor in possession of property consisting of
186	186	two or more catalytic converters that have been removed from two or
187	187	more motor vehicles is presumed to have unlawfully appropriated the
188	188	property unless the actor:
189	189	(A) is the owner, as defined by Section 601.002,
190	190	Transportation Code, of each vehicle from which the catalytic
191	191	converters were removed; or
192	192	(B) possesses the catalytic converters in the
193	193	ordinary course of the actor's business, including in the ordinary
194	194	course of business of an entity described by Section 1956.123(1),
195	195	Occupations Code.
196	196	(e) Except as provided by Subsections [Subsection] (f) and
197	197	(f-1), an offense under this section is:
198	198	(1) a Class C misdemeanor if the value of the property
199	199	stolen is less than $100;
200	200	(2) a Class B misdemeanor if:
201	201	(A) the value of the property stolen is $100 or
202	202	more but less than $750;
203	203	(B) the value of the property stolen is less than
204	204	$100 and the defendant has previously been convicted of any grade of
205	205	theft; or
206	206	(C) the property stolen is a driver's license,
207	207	commercial driver's license, or personal identification
208	208	certificate issued by this state or another state;
209	209	(3) a Class A misdemeanor if the value of the property
210	210	stolen is $750 or more but less than $2,500;
211	211	(4) a state jail felony if:
212	212	(A) the value of the property stolen is $2,500 or
213	213	more but less than $30,000, or the property is less than 10 head of
214	214	sheep, swine, or goats or any part thereof under the value of
215	215	$30,000;
216	216	(B) regardless of value, the property is stolen
217	217	from the person of another or from a human corpse or grave,
218	218	including property that is a military grave marker;
219	219	(C) the property stolen is a firearm[, as defined
220	220	by Section 46.01];
221	221	(D) the value of the property stolen is less than
222	222	$2,500 and the defendant has been previously convicted two or more
223	223	times of any grade of theft;
224	224	(E) the property stolen is an official ballot or
225	225	official carrier envelope for an election; [or]
226	226	(F) the value of the property stolen is less than
227	227	$20,000 and the property stolen is:
228	228	(i) aluminum;
229	229	(ii) bronze;
230	230	(iii) copper; or
231	231	(iv) brass; or
232	232	(G) the value of the property stolen is less than
233	233	$30,000 and the property stolen is a catalytic converter;
234	234	(5) a felony of the third degree if the value of the
235	235	property stolen is $30,000 or more but less than $150,000, or the
236	236	property is:
237	237	(A) cattle, horses, or exotic livestock or exotic
238	238	fowl as defined by Section 142.001, Agriculture Code, stolen during
239	239	a single transaction and having an aggregate value of less than
240	240	$150,000;
241	241	(B) 10 or more head of sheep, swine, or goats
242	242	stolen during a single transaction and having an aggregate value of
243	243	less than $150,000; or
244	244	(C) a controlled substance, having a value of
245	245	less than $150,000, if stolen from:
246	246	(i) a commercial building in which a
247	247	controlled substance is generally stored, including a pharmacy,
248	248	clinic, hospital, nursing facility, or warehouse; or
249	249	(ii) a vehicle owned or operated by a
250	250	wholesale distributor of prescription drugs;
251	251	(6) a felony of the second degree if:
252	252	(A) the value of the property stolen is $150,000
253	253	or more but less than $300,000; or
254	254	(B) the value of the property stolen is less than
255	255	$300,000 and the property stolen is an automated teller machine or
256	256	the contents or components of an automated teller machine; or
257	257	(7) a felony of the first degree if the value of the
258	258	property stolen is $300,000 or more.
259	259	(f-1) An offense described for purposes of punishment by
260	260	Subsections (e)(4)-(6) is increased to the next higher category of
261	261	offense if it is shown on the trial of the offense that:
262	262	(1) the property stolen is a catalytic converter; and
263	263	(2) the actor possessed a firearm during the
264	264	commission of the offense.
265	265	SECTION 2.03. Section 31.03(h), Penal Code, is amended by
266	266	adding Subdivisions (7) and (8) to read as follows:
267	267	(7) "Catalytic converter" includes any material
268	268	removed from a catalytic converter.
269	269	(8) "Firearm" has the meaning assigned by Section
270	270	46.01.
271	271	SECTION 2.04. Chapter 31, Penal Code, is amended by adding
272	272	Section 31.21 to read as follows:
273	273	Sec. 31.21. UNAUTHORIZED POSSESSION OF CATALYTIC
274	274	CONVERTER. (a) A person commits an offense if the person:
275	275	(1) intentionally or knowingly possesses a catalytic
276	276	converter that has been removed from a motor vehicle; and
277	277	(2) is not a person who is authorized under Subsection
278	278	(b) to possess the catalytic converter.
279	279	(b) A person is presumed to be authorized to possess a
280	280	catalytic converter that has been removed from a motor vehicle if
281	281	the person:
282	282	(1) is the owner, as defined by Section 601.002,
283	283	Transportation Code, of the vehicle from which the catalytic
284	284	converter was removed; or
285	285	(2) possesses the catalytic converter in the ordinary
286	286	course of the person's business, including in the ordinary course
287	287	of business of an entity described by Section 1956.123(1),
288	288	Occupations Code.
289	289	(c) The presumption established under Subsection (b) does
290	290	not apply to a person described by Subsection (b)(2) who knows that
291	291	the catalytic converter was unlawfully removed from a motor vehicle
292	292	or otherwise unlawfully obtained.
293	293	(d) Except as provided by Subsection (e), an offense under
294	294	this section is a state jail felony.
295	295	(e) An offense under this section is a felony of the third
296	296	degree if it is shown on the trial of the offense that the person:
297	297	(1) has been previously convicted of an offense under
298	298	this section;
299	299	(2) in connection with the offense, engaged in conduct
300	300	constituting conspiracy under Section 15.02 to commit an offense
301	301	under Section 28.03 or 31.03 with respect to a catalytic converter;
302	302	or
303	303	(3) possessed a firearm during the commission of the
304	304	offense.
305	305	(f) If conduct constituting an offense under this section
306	306	also constitutes an offense under any other law, the actor may be
307	307	prosecuted under this section, the other law, or both.
308	308	SECTION 2.05. Section 71.02(a), Penal Code, is amended to
309	309	read as follows:
310	310	(a) A person commits an offense if, with the intent to
311	311	establish, maintain, or participate in a combination or in the
312	312	profits of a combination or as a member of a criminal street gang,
313	313	the person commits or conspires to commit one or more of the
314	314	following:
315	315	(1) murder, capital murder, arson, aggravated
316	316	robbery, robbery, burglary, theft, aggravated kidnapping,
317	317	kidnapping, aggravated assault, aggravated sexual assault, sexual
318	318	assault, continuous sexual abuse of young child or disabled
319	319	individual, solicitation of a minor, forgery, deadly conduct,
320	320	assault punishable as a Class A misdemeanor, burglary of a motor
321	321	vehicle, or unauthorized use of a motor vehicle;
322	322	(2) any gambling offense punishable as a Class A
323	323	misdemeanor;
324	324	(3) promotion of prostitution, aggravated promotion
325	325	of prostitution, or compelling prostitution;
326	326	(4) unlawful manufacture, transportation, repair, or
327	327	sale of firearms or prohibited weapons;
328	328	(5) unlawful manufacture, delivery, dispensation, or
329	329	distribution of a controlled substance or dangerous drug, or
330	330	unlawful possession of a controlled substance or dangerous drug
331	331	through forgery, fraud, misrepresentation, or deception;
332	332	(5-a) causing the unlawful delivery, dispensation, or
333	333	distribution of a controlled substance or dangerous drug in
334	334	violation of Subtitle B, Title 3, Occupations Code;
335	335	(6) any unlawful wholesale promotion or possession of
336	336	any obscene material or obscene device with the intent to wholesale
337	337	promote the same;
338	338	(7) any offense under Subchapter B, Chapter 43,
339	339	depicting or involving conduct by or directed toward a child
340	340	younger than 18 years of age;
341	341	(8) any felony offense under Chapter 32;
342	342	(9) any offense under Chapter 36;
343	343	(10) any offense under Chapter 34, 35, or 35A;
344	344	(11) any offense under Section 37.11(a);
345	345	(12) any offense under Chapter 20A;
346	346	(13) any offense under Section 37.10;
347	347	(14) any offense under Section 38.06, 38.07, 38.09, or
348	348	38.11;
349	349	(15) any offense under Section 42.10;
350	350	(16) any offense under Section 46.06(a)(1) or 46.14;
351	351	(17) any offense under Section 20.05 or 20.06;
352	352	(18) any offense under Section 16.02; [or]
353	353	(19) an offense under Section 28.03 that is punishable
354	354	under Subsection (b)(4)(E) of that section;
355	355	(20) an offense under Section 31.21 that is punishable
356	356	under Subsection (d) of that section; or
357	357	(21) any offense classified as a felony under the Tax
358	358	Code.
359	359	ARTICLE 3. REGULATORY PROVISIONS
360	360	SECTION 3.01. Chapter 1952, Insurance Code, is amended by
361	361	adding Subchapter I to read as follows:
362	362	SUBCHAPTER I. PREMIUM DISCOUNT FOR CERTAIN ANTITHEFT DEVICES
363	363	Sec. 1952.401. DEFINITIONS. In this subchapter:
364	364	(1) "Catalytic converter" has the meaning assigned by
365	365	Section 1956.001, Occupations Code.
366	366	(2) "Motor vehicle" means any motor driven or
367	367	propelled vehicle required to be registered under the laws of this
368	368	state.
369	369	Sec. 1952.402. APPLICABILITY. This subchapter applies to
370	370	any part of the premium for an automobile insurance policy that
371	371	covers theft or damage to a motor vehicle as a result of theft,
372	372	attempted theft, or criminal mischief.
373	373	Sec. 1952.403. ANTITHEFT PREVENTION DISCOUNT. The
374	374	commissioner by rule shall:
375	375	(1) identify antitheft devices and alarms that are
376	376	effective in preventing or reducing theft of catalytic converters
377	377	from motor vehicles; and
378	378	(2) require insurers to provide a premium discount on
379	379	an automobile insurance policy if a covered motor vehicle has an
380	380	antitheft device or alarm identified by the commissioner under
381	381	Subdivision (1).
382	382	SECTION 3.02. Section 1956.001, Occupations Code, is
383	383	amended by amending Subdivision (6-b) and adding Subdivision (6-c)
384	384	to read as follows:
385	385	(6-b) "Fixed location" means a structure or facility
386	386	that:
387	387	(A) is attached to real property;
388	388	(B) has a fixed geographic location with a
389	389	physical address; and
390	390	(C) is used wholly or partly to conduct an
391	391	activity described by Subdivision (7).
392	392	(6-c) "Lead material" means:
393	393	(A) a commercial grade lead battery, lead-acid
394	394	battery, or spiral cell battery; or
395	395	(B) a material or an item readily identifiable as
396	396	being made of or containing lead.
397	397	SECTION 3.03. Section 1956.016, Occupations Code, is
398	398	amended to read as follows:
399	399	Sec. 1956.016. REGISTRATION DATABASE. The department shall
400	400	make available on its Internet website a publicly accessible list
401	401	of all registered metal recycling entities. The list must contain
402	402	the following for each registered metal recycling entity:
403	403	(1) the entity's name;
404	404	(2) the entity's physical address; [and]
405	405	(3) the name of and contact information for a
406	406	representative of the entity; and
407	407	(4) a description of the extent to which the entity
408	408	engages in transactions involving catalytic converters based on the
409	409	entity's most recent declaration submitted under Section
410	410	1956.022(a) or 1956.127, as applicable.
411	411	SECTION 3.04. Section 1956.017(b), Occupations Code, is
412	412	amended to read as follows:
413	413	(b) The advisory committee consists of 15 members appointed
414	414	by the director as follows:
415	415	(1) one representative of the department;
416	416	(2) two representatives of local law enforcement
417	417	agencies located in different municipalities, each with a
418	418	population of 500,000 or more;
419	419	(3) two representatives of local law enforcement
420	420	agencies located in different municipalities, each with a
421	421	population of 200,000 or more but less than 500,000;
422	422	(4) one representative of a local law enforcement
423	423	agency located in a municipality with a population of less than
424	424	200,000;
425	425	(5) five representatives of metal recycling entities,
426	426	at least one of whom must have substantial business experience with
427	427	transactions involving the purchase or acquisition of catalytic
428	428	converters;
429	429	(6) two members who represent industries that are
430	430	impacted by theft of regulated material;
431	431	(7) one sheriff of a county with a population of
432	432	500,000 or more; and
433	433	(8) one sheriff of a county with a population of less
434	434	than 500,000.
435	435	SECTION 3.05. Section 1956.022, Occupations Code, is
436	436	amended to read as follows:
437	437	Sec. 1956.022. ISSUANCE OF CERTIFICATE; QUALIFICATIONS.
438	438	(a) The department shall issue a certificate of registration to an
439	439	applicant who:
440	440	(1) applies and pays a registration fee; [and]
441	441	(2) presents any relevant evidence relating to the
442	442	applicant's qualifications as required by commission rule; and
443	443	(3) submits a declaration describing the extent to
444	444	which the applicant intends to engage in transactions involving
445	445	catalytic converters removed from motor vehicles in the course of
446	446	the applicant's business activity.
447	447	(a-1) If the applicant's business activity involves
448	448	catalytic converters removed from motor vehicles, the declaration
449	449	described by Subsection (a)(3) must state:
450	450	(1) whether the applicant will engage in a business
451	451	activity described by Section 1956.001(7)(A) or (B) with respect to
452	452	catalytic converters removed from motor vehicles;
453	453	(2) whether the applicant will engage in a business
454	454	activity described by Section 1956.001(7)(C) but not a business
455	455	activity described by Section 1956.001(7)(A) or (B), with respect
456	456	to catalytic converters removed from motor vehicles; or
457	457	(3) that the applicant will deal only incidentally
458	458	with catalytic converters removed from motor vehicles.
459	459	(b) The commission by rule may establish qualifications for
460	460	the holder of a certificate of registration under this chapter,
461	461	which may include accepting copies of a license or permit issued by
462	462	a county or municipality authorizing a metal recycling entity to
463	463	conduct business in that county or municipality. The
464	464	qualifications may differ for a holder of a certificate of
465	465	registration under this chapter based on the extent to which the
466	466	person engages in transactions involving catalytic converters
467	467	removed from motor vehicles as stated on the person's declaration
468	468	submitted under Subsection (a).
469	469	SECTION 3.06. Section 1956.024(a), Occupations Code, is
470	470	amended to read as follows:
471	471	(a) To renew a certificate of registration, a person must:
472	472	(1) submit an application for renewal in the manner
473	473	prescribed by the department; and
474	474	(2) update the person's declaration submitted under
475	475	Section 1956.022(a).
476	476	SECTION 3.07. Chapter 1956, Occupations Code, is amended by
477	477	adding Subchapter C-1 to read as follows:
478	478	SUBCHAPTER C-1. CERTAIN TRANSACTIONS INVOLVING CATALYTIC
479	479	CONVERTERS REMOVED FROM MOTOR VEHICLES
480	480	Sec. 1956.121. DEFINITION. In this subchapter, "motor
481	481	vehicle" has the meaning assigned by Section 541.201,
482	482	Transportation Code.
483	483	Sec. 1956.122. APPLICABILITY; EFFECT OF LAW. (a)
484	484	Notwithstanding any other provision of this chapter, this
485	485	subchapter applies to the purchase or acquisition, from a person
486	486	described by Section 1956.002(1), of a catalytic converter removed
487	487	from a motor vehicle.
488	488	(b) This subchapter does not affect any requirement under
489	489	Subchapter A-3, including any requirement applicable to the
490	490	purchase or acquisition of a catalytic converter removed from a
491	491	motor vehicle from a person not described by Section 1956.002(1).
492	492	Sec. 1956.123. LIMITATION ON PURCHASING OR OTHERWISE
493	493	ACQUIRING CATALYTIC CONVERTERS. A metal recycling entity may not
494	494	purchase or otherwise acquire a catalytic converter that was
495	495	removed from a motor vehicle from a person described by Section
496	496	1956.002(1), unless each of the following is satisfied:
497	497	(1) the person selling the catalytic converter to the
498	498	metal recycling entity acquired it in the ordinary course of the
499	499	person's business, including in the ordinary course of business of
500	500	any of the following entities:
501	501	(A) an automotive wrecking and salvage yard as
502	502	defined by Section 234.001, Local Government Code;
503	503	(B) a metal recycling entity registered under
504	504	this chapter;
505	505	(C) a manufacturer, distributor, converter, or
506	506	dealer licensed under Chapter 2301, including any department of a
507	507	dealer or converter that repairs or services motor vehicles;
508	508	(D) a salvage vehicle dealer licensed under
509	509	Chapter 2302 or a salvage pool operator as defined by Section
510	510	2302.001;
511	511	(E) a vehicle storage facility licensed under
512	512	Chapter 2303;
513	513	(F) a shop or garage that is engaged in the
514	514	business of repairing motor vehicles;
515	515	(G) a used automotive parts recycler licensed
516	516	under Chapter 2309;
517	517	(H) a motor vehicle demolisher as defined by
518	518	Section 683.001, Transportation Code;
519	519	(I) a school or training program in which
520	520	students are provided instruction on building, repairing, or
521	521	restoring motor vehicles;
522	522	(J) a business that is:
523	523	(i) located in and regulated by another
524	524	state or a political subdivision of another state; and
525	525	(ii) engaged in an activity for which a
526	526	business described by Paragraphs (A) through (I) is regulated by
527	527	this state or a political subdivision of this state; or
528	528	(K) a business that is located in a jurisdiction
529	529	outside the United States and operated in a business form
530	530	recognized by the laws of that jurisdiction and that imports
531	531	catalytic converters into the United States in accordance with the
532	532	Harmonized Tariff Schedule of the United States published by the
533	533	United States International Trade Commission; and
534	534	(2) any individual acting on behalf of the person
535	535	described by Subdivision (1) has the apparent authority to enter
536	536	into the transaction and is acting in the scope of that authority,
537	537	regardless of whether the individual is a principal, employee, or
538	538	independent contractor.
539	539	Sec. 1956.124. CERTAIN RECORDS REQUIRED WHEN PURCHASING OR
540	540	OTHERWISE ACQUIRING CATALYTIC CONVERTER; OFFENSE. (a) A metal
541	541	recycling entity shall maintain an accurate record of each
542	542	transaction in which the entity purchases or otherwise acquires a
543	543	catalytic converter that is removed from a motor vehicle from a
544	544	person described by Section 1956.123.
545	545	(b) A record meets the requirements of Subsection (a) if it
546	546	contains:
547	547	(1) a description made in accordance with the custom
548	548	of the trade for the volume of catalytic converters purchased or
549	549	otherwise acquired;
550	550	(2) the business name of the person from whom the
551	551	catalytic converters were purchased or otherwise acquired; and
552	552	(3) the date of the transaction.
553	553	(c) A metal recycling entity shall preserve each record
554	554	required by this section until the second anniversary of the date
555	555	the record was made. The records must be maintained in an easily
556	556	retrievable format and must be available for inspection as provided
557	557	by Section 1956.125 not later than 72 hours after the time of
558	558	purchase or acquisition.
559	559	(d) A record containing the information described by
560	560	Subsection (b) that is maintained in accordance with other law or as
561	561	a routine business practice satisfies the requirements of
562	562	Subsection (a).
563	563	(e) A metal recycling entity commits an offense if the
564	564	entity intentionally or knowingly fails to maintain a record as
565	565	required by this section. An offense under this subsection is a
566	566	Class A misdemeanor.
567	567	Sec. 1956.125. INSPECTION OF RECORDS. On request, a metal
568	568	recycling entity shall permit a peace officer, a representative of
569	569	the department, or a representative of a county, municipality, or
570	570	other political subdivision that issues a license or permit under
571	571	Section 1956.003(b) to, during the entity's usual business hours:
572	572	(1) enter the premises of the entity; and
573	573	(2) inspect a record required to be maintained by
574	574	Section 1956.124.
575	575	Sec. 1956.126. EFFECT ON LOCAL LAW. (a) Notwithstanding
576	576	Section 1956.003, a county, municipality, or political subdivision
577	577	of this state may not:
578	578	(1) with respect to a catalytic converter removed from
579	579	a motor vehicle, restrict the purchase, acquisition, sale,
580	580	transfer, or possession of the catalytic converter by a person
581	581	described by Section 1956.123; or
582	582	(2) alter or add to the recordkeeping requirements
583	583	provided by Section 1956.124.
584	584	(b) Subsection (a) does not affect the authority of a
585	585	county, municipality, or political subdivision of this state to:
586	586	(1) as provided by Section 1956.003, issue a license
587	587	or permit allowing a business to act as a metal recycling entity in
588	588	that county, municipality, or political subdivision; or
589	589	(2) inspect a record as provided by Section 1956.125.
590	590	Sec. 1956.127. DECLARATION UPDATE. If the business
591	591	activity of a metal recycling entity substantially changes in the
592	592	extent to which the entity engages in transactions involving
593	593	catalytic converters removed from motor vehicles, the entity shall
594	594	update the entity's declaration submitted under Section 1956.022.
595	595	Sec. 1956.128. ADMINISTRATIVE PENALTY. (a) The commission
596	596	may impose an administrative penalty under Subchapter R, Chapter
597	597	411, Government Code, on a metal recycling entity that:
598	598	(1) violates Section 1956.123 due to the entity's
599	599	failure to exercise due diligence in purchasing or acquiring a
600	600	catalytic converter removed from a motor vehicle; or
601	601	(2) violates Section 1956.124.
602	602	(b) The amount of the administrative penalty may not exceed
603	603	$10,000.
604	604	SECTION 3.08. Subchapter A, Chapter 2305, Occupations Code,
605	605	is amended by adding Section 2305.0041 to read as follows:
606	606	Sec. 2305.0041. LIMITATION ON BUYING AND SELLING CATALYTIC
607	607	CONVERTERS. A person subject to this subchapter may not buy or sell
608	608	a catalytic converter removed from a motor vehicle unless the
609	609	catalytic converter was removed from the motor vehicle in
610	610	connection with the person's repair of the vehicle.
611	611	SECTION 3.09. The heading to Section 2305.0051, Occupations
612	612	Code, is amended to read as follows:
613	613	Sec. 2305.0051. REPAIR RECORDS RELATED TO CATALYTIC
614	614	CONVERTERS.
615	615	SECTION 3.10. Section 2305.0051(a), Occupations Code, is
616	616	amended to read as follows:
617	617	(a) The owner of a garage or repair shop that sells or
618	618	transfers to any person, including a metal recycling entity
619	619	registered under Chapter 1956, a catalytic converter that was [the
620	620	person] removed in connection with a motor vehicle repair shall
621	621	maintain a record of all repairs for the vehicle that includes:
622	622	(1) the name and address of the vehicle's owner; [and]
623	623	(2) the vehicle identification number of the vehicle;
624	624	and
625	625	(3) copies of all related invoices including, as
626	626	applicable, a notation that a catalytic converter was removed from
627	627	the vehicle.
628	628	SECTION 3.11. Section 2305.101(c), Occupations Code, is
629	629	amended to read as follows:
630	630	(c) An offense under this chapter that consists of the
631	631	violation of Section 2305.0041, 2305.0051, or 2305.007 is a Class A
632	632	misdemeanor.
633	633	SECTION 3.12. Chapter 2305, Occupations Code, is amended by
634	634	adding Subchapter D to read as follows:
635	635	SUBCHAPTER D. RECORDS OF CERTAIN SALES OR TRANSFERS OF CATALYTIC
636	636	CONVERTERS REMOVED FROM MOTOR VEHICLES
637	637	Sec. 2305.151. DEFINITION. In this subchapter, "catalytic
638	638	converter" has the meaning assigned by Section 1956.001.
639	639	Sec. 2305.152. APPLICABILITY. This subchapter applies only
640	640	to a person described by Section 1956.123(1)(A) through (I).
641	641	Sec. 2305.153. RECORD REQUIRED. (a) A person to whom this
642	642	subchapter applies shall, for each transaction in which the person
643	643	sells or transfers to another person a catalytic converter that is
644	644	removed from a motor vehicle, maintain an accurate record of the
645	645	transaction until the second anniversary of the date of the
646	646	transaction.
647	647	(b) A record is sufficient to meet the requirements of
648	648	Subsection (a) if it contains:
649	649	(1) a description made in accordance with the custom
650	650	of the trade for the volume of catalytic converters sold or
651	651	transferred;
652	652	(2) the name of the person to whom the catalytic
653	653	converters were sold or transferred; and
654	654	(3) the date of the transaction.
655	655	(c) A record containing the information described by
656	656	Subsection (b) that is maintained in accordance with other law or as
657	657	a routine business practice satisfies the requirements of
658	658	Subsection (a).
659	659	Sec. 2305.154. OFFENSE: FAILURE TO MAINTAIN RECORD. (a) A
660	660	person commits an offense if the person intentionally or knowingly
661	661	fails to maintain a record as required by Section 2305.153.
662	662	(b) An offense under this section is a Class A misdemeanor.
663	663	(c) If conduct that constitutes an offense under this
664	664	section also constitutes an offense under another provision of this
665	665	chapter, the person may be prosecuted only under this section.
666	666	Sec. 2305.155. INSPECTION OF CERTAIN RECORDS. (a) In this
667	667	section, "licensing authority" and "occupational license" have the
668	668	meanings assigned by Section 58.001.
669	669	(b) If an occupational license is required for a person to
670	670	engage in a business or occupation described by Section
671	671	1956.123(1)(A) through (I), the licensing authority that issues the
672	672	occupational license may at a reasonable time:
673	673	(1) enter the premises at which the person engages in
674	674	the regulated business or occupation; and
675	675	(2) inspect the records or information required to be
676	676	maintained under Section 2305.153.
677	677	(c) Regardless of whether an occupational license is
678	678	required, an officer of the Department of Public Safety or another
679	679	peace officer may enter the premises of and inspect the records of a
680	680	person described by Section 1956.123(1)(A) through (I), as provided
681	681	by Subsection (b).
682	682	SECTION 3.13. Section 1006.001(2), Transportation Code, is
683	683	amended to read as follows:
684	684	(2) "Economic motor vehicle theft" means motor vehicle
685	685	burglary or theft, including theft of a catalytic converter
686	686	attached to a motor vehicle, committed for financial gain.
687	687	SECTION 3.14. Sections 1006.153(b) and (e), Transportation
688	688	Code, are amended to read as follows:
689	689	(b) An insurer shall pay to the authority a fee equal to $5
690	690	[$4] multiplied by the total number of motor vehicle years of
691	691	insurance for insurance policies delivered, issued for delivery, or
692	692	renewed by the insurer. The fee shall be paid not later than:
693	693	(1) March 1 of each year for a policy delivered,
694	694	issued, or renewed from July 1 through December 31 of the previous
695	695	calendar year; and
696	696	(2) August 1 of each year for a policy delivered,
697	697	issued, or renewed from January 1 through June 30 of that year.
698	698	(e) Out of each fee collected under Subsection (b), $1 shall
699	699	be deposited to the credit of the general revenue fund to be used
700	700	only for coordinated regulatory and law enforcement activities
701	701	intended to detect and prevent catalytic converter theft in this
702	702	state. The remainder of each fee collected under Subsection (b) and
703	703	any [or an] amount collected under Subsection (b-1) shall be
704	704	allocated as follows:
705	705	(1) 20 percent shall be appropriated to the authority
706	706	for the purposes of this chapter;
707	707	(2) 20 percent shall be deposited to the credit of the
708	708	general revenue fund, to be used only for criminal justice
709	709	purposes; and
710	710	(3) 60 percent shall be deposited to the credit of the
711	711	designated trauma facility and emergency medical services account
712	712	under Section 780.003, Health and Safety Code, to be used only for
713	713	the criminal justice purpose of funding designated trauma
714	714	facilities, county and regional emergency medical services, and
715	715	trauma care systems that provide trauma care and emergency medical
716	716	services to victims of accidents resulting from traffic offenses.
717	717	ARTICLE 4. TRANSITIONS
718	718	SECTION 4.01. (a) Not later than December 1, 2023, the
719	719	commissioner of insurance shall adopt rules as required by Section
720	720	1952.403, Insurance Code, as added by this Act.
721	721	(b) Subchapter I, Chapter 1952, Insurance Code, as added by
722	722	this Act, applies only to an insurance policy that is delivered,
723	723	issued for delivery, or renewed on or after January 1, 2024. A
724	724	policy delivered, issued for delivery, or renewed before January 1,
725	725	2024, is governed by the law as it existed immediately before the
726	726	effective date of this Act, and that law is continued in effect for
727	727	that purpose.
728	728	SECTION 4.02. The change in law made by this Act to Section
729	729	1956.017, Occupations Code, does not affect the entitlement of a
730	730	member serving on the advisory committee established under that
731	731	section immediately before the effective date of this Act to
732	732	continue to serve for the remainder of the member's term. As the
733	733	terms of members expire after the effective date of this Act, the
734	734	director of the Department of Public Safety shall appoint or
735	735	reappoint members who have the qualifications required by that
736	736	section.
737	737	SECTION 4.03. Not later than October 1, 2023, a metal
738	738	recycling entity registered under Chapter 1956, Occupations Code,
739	739	shall submit a declaration described by Section 1956.022(a)(3), as
740	740	added by this Act, to the Department of Public Safety.
741	741	SECTION 4.04. As soon as practicable after the effective
742	742	date of this Act, the Department of Public Safety shall adopt rules
743	743	necessary to implement the changes in law made by this Act to
744	744	Chapter 1956, Occupations Code.
745	745	SECTION 4.05. The changes in law made by this Act to
746	746	Sections 28.03, 31.03, and 71.02, Penal Code, apply only to an
747	747	offense committed on or after the effective date of this Act. An
748	748	offense committed before the effective date of this Act is governed
749	749	by the law in effect on the date the offense was committed, and the
750	750	former law is continued in effect for that purpose. For purposes
751	751	of this section, an offense was committed before the effective date
752	752	of this Act if any element of the offense occurred before that date.
753	753	SECTION 4.06. Section 1006.153, Transportation Code, as
754	754	amended by this Act, applies only to a fee due on or after the
755	755	effective date of this Act. A fee due before the effective date of
756	756	this Act is governed by the law in effect on the date the fee was
757	757	due, and the former law is continued in effect for that purpose.
758	758	ARTICLE 5. COORDINATION OF STATE AGENCIES TO DETECT AND PREVENT
759	759	THEFT OF CATALYTIC CONVERTERS
760	760	SECTION 5.01. (a) Not later than January 1, 2024, the
761	761	Department of Public Safety, the Texas Department of Licensing and
762	762	Regulation, the Texas Department of Motor Vehicles, and the Motor
763	763	Vehicle Crime Prevention Authority shall develop and implement a
764	764	plan to coordinate their efforts to:
765	765	(1) review the records of persons regulated by each
766	766	agency involving the purchase, acquisition, sale, or transfer of
767	767	catalytic converters removed from motor vehicles; and
768	768	(2) respond to suspicious activities that may be
769	769	detected through the analysis of the records described by
770	770	Subdivision (1) of this subsection.
771	771	(b) The agencies listed in Subsection (a) of this section
772	772	shall jointly establish a task force composed of persons regulated
773	773	by the agencies who have substantial business experience in
774	774	transactions involving catalytic converters. The agencies shall
775	775	develop the plan described by Subsection (a) of this section with
776	776	the participation of the task force.
777	777	(c) Except as provided by this subsection, each agency may
778	778	appoint members to the task force as that agency determines
779	779	appropriate. If any of the agencies has a relevant advisory
780	780	committee that is tasked with assisting the agency, the agency may
781	781	only appoint a member of the agency's advisory committee to the task
782	782	force.
783	783	(d) In developing and implementing the plan, the agencies
784	784	shall focus on:
785	785	(1) protecting each step in the legitimate stream of
786	786	commerce that begins with the removal of a catalytic converter from
787	787	a motor vehicle and includes recycling those catalytic converters
788	788	to ensure that the persons regulated by the agencies are not the
789	789	means for inserting stolen catalytic converters into the stream of
790	790	commerce; and
791	791	(2) providing risk-based targeting and random
792	792	auditing of the records of the persons regulated by the agencies.
793	793	ARTICLE 6. EFFECTIVE DATE
794	794	SECTION 6.01. (a) Except as provided by this section, this
795	795	Act takes effect September 1, 2023.
796	796	(b) Section 1956.001(6-b), Occupations Code, as amended by
797	797	this Act, takes effect January 1, 2024.