Texas 2023 - 88th Regular

Texas Senate Bill SB224 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	S.B. No. 224
2	2
3	3
4	4	AN ACT
5	5	relating to catalytic converters, including criminal conduct
6	6	involving catalytic converters; providing an administrative
7	7	penalty; creating a criminal offense; increasing a criminal
8	8	penalty; increasing a fee.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	ARTICLE 1. TITLE
11	11	SECTION 1.01. This Act may be cited as the Deputy Darren
12	12	Almendarez Act.
13	13	ARTICLE 2. CRIMINAL OFFENSES
14	14	SECTION 2.01. Section 28.03(b), Penal Code, is amended to
15	15	read as follows:
16	16	(b) Except as provided by Subsections (f) and (h), an
17	17	offense under this section is:
18	18	(1) a Class C misdemeanor if:
19	19	(A) the amount of pecuniary loss is less than
20	20	$100; or
21	21	(B) except as provided in Subdivision (3)(A) or
22	22	(3)(B), it causes substantial inconvenience to others;
23	23	(2) a Class B misdemeanor if the amount of pecuniary
24	24	loss is $100 or more but less than $750;
25	25	(3) a Class A misdemeanor if:
26	26	(A) the amount of pecuniary loss is $750 or more
27	27	but less than $2,500; or
28	28	(B) the actor causes in whole or in part
29	29	impairment or interruption of any public water supply, or causes to
30	30	be diverted in whole, in part, or in any manner, including
31	31	installation or removal of any device for any such purpose, any
32	32	public water supply, regardless of the amount of the pecuniary
33	33	loss;
34	34	(4) a state jail felony if the amount of pecuniary loss
35	35	is:
36	36	(A) $2,500 or more but less than $30,000;
37	37	(B) less than $2,500, if the property damaged or
38	38	destroyed is a habitation and if the damage or destruction is caused
39	39	by a firearm or explosive weapon;
40	40	(C) less than $2,500, if the property was a fence
41	41	used for the production or containment of:
42	42	(i) cattle, bison, horses, sheep, swine,
43	43	goats, exotic livestock, or exotic poultry; or
44	44	(ii) game animals as that term is defined by
45	45	Section 63.001, Parks and Wildlife Code; [or]
46	46	(D) less than $30,000 and the actor:
47	47	(i) causes wholly or partly impairment or
48	48	interruption of property used for flood control purposes or a dam or
49	49	of public communications, public transportation, public gas or
50	50	power supply, or other public service; or
51	51	(ii) causes to be diverted wholly, partly,
52	52	or in any manner, including installation or removal of any device
53	53	for any such purpose, any public communications or public gas or
54	54	power supply; or
55	55	(E) less than $30,000, if the property is a motor
56	56	vehicle that is damaged, destroyed, or tampered with during the
57	57	removal or attempted removal of a catalytic converter from the
58	58	motor vehicle;
59	59	(5) a felony of the third degree if:
60	60	(A) the amount of the pecuniary loss is $30,000
61	61	or more but less than $150,000;
62	62	(B) the actor, by discharging a firearm or other
63	63	weapon or by any other means, causes the death of one or more head of
64	64	cattle or bison or one or more horses; or
65	65	(C) the actor causes wholly or partly impairment
66	66	or interruption of access to an automated teller machine,
67	67	regardless of the amount of the pecuniary loss;
68	68	(6) a felony of the second degree if the amount of
69	69	pecuniary loss is $150,000 or more but less than $300,000; or
70	70	(7) a felony of the first degree if the amount of
71	71	pecuniary loss is $300,000 or more.
72	72	SECTION 2.02. Section 31.03, Penal Code, is amended by
73	73	amending Subsections (c) and (e) and adding Subsection (f-1) to
74	74	read as follows:
75	75	(c) For purposes of Subsection (b):
76	76	(1) evidence that the actor has previously
77	77	participated in recent transactions other than, but similar to, the
78	78	transaction for [that] which the prosecution is based is admissible
79	79	for the purpose of showing knowledge or intent and the issues of
80	80	knowledge or intent are raised by the actor's plea of not guilty;
81	81	(2) the testimony of an accomplice shall be
82	82	corroborated by proof that tends to connect the actor to the crime,
83	83	but the actor's knowledge or intent may be established by the
84	84	uncorroborated testimony of the accomplice;
85	85	(3) an actor engaged in the business of buying and
86	86	selling used or secondhand personal property, or lending money on
87	87	the security of personal property deposited with the actor, is
88	88	presumed to know upon receipt by the actor of stolen property (other
89	89	than a motor vehicle subject to Chapter 501, Transportation Code)
90	90	that the property has been previously stolen from another if the
91	91	actor pays for or loans against the property $25 or more (or
92	92	consideration of equivalent value) and the actor knowingly or
93	93	recklessly:
94	94	(A) fails to record the name, address, and
95	95	physical description or identification number of the seller or
96	96	pledgor;
97	97	(B) fails to record a complete description of the
98	98	property, including the serial number, if reasonably available, or
99	99	other identifying characteristics; or
100	100	(C) fails to obtain a signed warranty from the
101	101	seller or pledgor that the seller or pledgor has the right to
102	102	possess the property. It is the express intent of this provision
103	103	that the presumption arises unless the actor complies with each of
104	104	the numbered requirements;
105	105	(4) for the purposes of Subdivision (3)(A),
106	106	"identification number" means driver's license number, military
107	107	identification number, identification certificate, or other
108	108	official number capable of identifying an individual;
109	109	(5) stolen property does not lose its character as
110	110	stolen when recovered by any law enforcement agency;
111	111	(6) an actor engaged in the business of obtaining
112	112	abandoned or wrecked motor vehicles or parts of an abandoned or
113	113	wrecked motor vehicle for resale, disposal, scrap, repair,
114	114	rebuilding, demolition, or other form of salvage is presumed to
115	115	know on receipt by the actor of stolen property that the property
116	116	has been previously stolen from another if the actor knowingly or
117	117	recklessly:
118	118	(A) fails to maintain an accurate and legible
119	119	inventory of each motor vehicle component part purchased by or
120	120	delivered to the actor, including the date of purchase or delivery,
121	121	the name, age, address, sex, and driver's license number of the
122	122	seller or person making the delivery, the license plate number of
123	123	the motor vehicle in which the part was delivered, a complete
124	124	description of the part, and the vehicle identification number of
125	125	the motor vehicle from which the part was removed, or in lieu of
126	126	maintaining an inventory, fails to record the name and certificate
127	127	of inventory number of the person who dismantled the motor vehicle
128	128	from which the part was obtained;
129	129	(B) fails on receipt of a motor vehicle to obtain
130	130	a certificate of authority, sales receipt, or transfer document as
131	131	required by Chapter 683, Transportation Code, or a certificate of
132	132	title showing that the motor vehicle is not subject to a lien or
133	133	that all recorded liens on the motor vehicle have been released; or
134	134	(C) fails on receipt of a motor vehicle to
135	135	immediately remove an unexpired license plate from the motor
136	136	vehicle, to keep the plate in a secure and locked place, or to
137	137	maintain an inventory, on forms provided by the Texas Department of
138	138	Motor Vehicles, of license plates kept under this paragraph,
139	139	including for each plate or set of plates the license plate number
140	140	and the make, motor number, and vehicle identification number of
141	141	the motor vehicle from which the plate was removed;
142	142	(7) an actor who purchases or receives a used or
143	143	secondhand motor vehicle is presumed to know on receipt by the actor
144	144	of the motor vehicle that the motor vehicle has been previously
145	145	stolen from another if the actor knowingly or recklessly:
146	146	(A) fails to report to the Texas Department of
147	147	Motor Vehicles the failure of the person who sold or delivered the
148	148	motor vehicle to the actor to deliver to the actor a properly
149	149	executed certificate of title to the motor vehicle at the time the
150	150	motor vehicle was delivered; or
151	151	(B) fails to file with the county tax
152	152	assessor-collector of the county in which the actor received the
153	153	motor vehicle, not later than the 20th day after the date the actor
154	154	received the motor vehicle, the registration license receipt and
155	155	certificate of title or evidence of title delivered to the actor in
156	156	accordance with Subchapter D, Chapter 520, Transportation Code, at
157	157	the time the motor vehicle was delivered;
158	158	(8) an actor who purchases or receives from any source
159	159	other than a licensed retailer or distributor of pesticides a
160	160	restricted-use pesticide or a state-limited-use pesticide or a
161	161	compound, mixture, or preparation containing a restricted-use or
162	162	state-limited-use pesticide is presumed to know on receipt by the
163	163	actor of the pesticide or compound, mixture, or preparation that
164	164	the pesticide or compound, mixture, or preparation has been
165	165	previously stolen from another if the actor:
166	166	(A) fails to record the name, address, and
167	167	physical description of the seller or pledgor;
168	168	(B) fails to record a complete description of the
169	169	amount and type of pesticide or compound, mixture, or preparation
170	170	purchased or received; and
171	171	(C) fails to obtain a signed warranty from the
172	172	seller or pledgor that the seller or pledgor has the right to
173	173	possess the property; [and]
174	174	(9) an actor who is subject to Section 409, Packers and
175	175	Stockyards Act (7 U.S.C. Section 228b), that obtains livestock from
176	176	a commission merchant by representing that the actor will make
177	177	prompt payment is presumed to have induced the commission
178	178	merchant's consent by deception if the actor fails to make full
179	179	payment in accordance with Section 409, Packers and Stockyards Act
180	180	(7 U.S.C. Section 228b); and
181	181	(10) an actor in possession of property consisting of
182	182	one or more catalytic converters that have been removed from a motor
183	183	vehicle is presumed to have unlawfully appropriated the property
184	184	unless the actor:
185	185	(A) is the owner, as defined by Section 601.002,
186	186	Transportation Code, of each vehicle from which the catalytic
187	187	converters were removed; or
188	188	(B) possesses the catalytic converters in the
189	189	ordinary course of the actor's business, including in the ordinary
190	190	course of business of an entity described by Section 1956.123(1),
191	191	Occupations Code.
192	192	(e) Except as provided by Subsections [Subsection] (f) and
193	193	(f-1), an offense under this section is:
194	194	(1) a Class C misdemeanor if the value of the property
195	195	stolen is less than $100;
196	196	(2) a Class B misdemeanor if:
197	197	(A) the value of the property stolen is $100 or
198	198	more but less than $750;
199	199	(B) the value of the property stolen is less than
200	200	$100 and the defendant has previously been convicted of any grade of
201	201	theft; or
202	202	(C) the property stolen is a driver's license,
203	203	commercial driver's license, or personal identification
204	204	certificate issued by this state or another state;
205	205	(3) a Class A misdemeanor if the value of the property
206	206	stolen is $750 or more but less than $2,500;
207	207	(4) a state jail felony if:
208	208	(A) the value of the property stolen is $2,500 or
209	209	more but less than $30,000, or the property is less than 10 head of
210	210	sheep, swine, or goats or any part thereof under the value of
211	211	$30,000;
212	212	(B) regardless of value, the property is stolen
213	213	from the person of another or from a human corpse or grave,
214	214	including property that is a military grave marker;
215	215	(C) the property stolen is a firearm[, as defined
216	216	by Section 46.01];
217	217	(D) the value of the property stolen is less than
218	218	$2,500 and the defendant has been previously convicted two or more
219	219	times of any grade of theft;
220	220	(E) the property stolen is an official ballot or
221	221	official carrier envelope for an election; [or]
222	222	(F) the value of the property stolen is less than
223	223	$20,000 and the property stolen is:
224	224	(i) aluminum;
225	225	(ii) bronze;
226	226	(iii) copper; or
227	227	(iv) brass; or
228	228	(G) the cost of replacing the property stolen is
229	229	less than $30,000 and the property stolen is a catalytic converter;
230	230	(5) a felony of the third degree if the value of the
231	231	property stolen is $30,000 or more but less than $150,000, or the
232	232	property is:
233	233	(A) cattle, horses, or exotic livestock or exotic
234	234	fowl as defined by Section 142.001, Agriculture Code, stolen during
235	235	a single transaction and having an aggregate value of less than
236	236	$150,000;
237	237	(B) 10 or more head of sheep, swine, or goats
238	238	stolen during a single transaction and having an aggregate value of
239	239	less than $150,000; or
240	240	(C) a controlled substance, having a value of
241	241	less than $150,000, if stolen from:
242	242	(i) a commercial building in which a
243	243	controlled substance is generally stored, including a pharmacy,
244	244	clinic, hospital, nursing facility, or warehouse; or
245	245	(ii) a vehicle owned or operated by a
246	246	wholesale distributor of prescription drugs;
247	247	(6) a felony of the second degree if:
248	248	(A) the value of the property stolen is $150,000
249	249	or more but less than $300,000; or
250	250	(B) the value of the property stolen is less than
251	251	$300,000 and the property stolen is an automated teller machine or
252	252	the contents or components of an automated teller machine; or
253	253	(7) a felony of the first degree if the value of the
254	254	property stolen is $300,000 or more.
255	255	(f-1) An offense described for purposes of punishment by
256	256	Subsections (e)(4)-(6) is increased to the next higher category of
257	257	offense if it is shown on the trial of the offense that:
258	258	(1) the property stolen is a catalytic converter; and
259	259	(2) the actor possessed a firearm during the
260	260	commission of the offense.
261	261	SECTION 2.03. Section 31.03(h), Penal Code, is amended by
262	262	adding Subdivisions (7) and (8) to read as follows:
263	263	(7) "Catalytic converter" means a catalytic converter
264	264	and any material removed from the catalytic converter.
265	265	(8) "Firearm" has the meaning assigned by Section
266	266	46.01.
267	267	SECTION 2.04. Chapter 31, Penal Code, is amended by adding
268	268	Section 31.21 to read as follows:
269	269	Sec. 31.21. UNAUTHORIZED POSSESSION OF CATALYTIC
270	270	CONVERTER. (a) A person commits an offense if the person:
271	271	(1) intentionally or knowingly possesses a catalytic
272	272	converter that has been removed from a motor vehicle; and
273	273	(2) is not a person who is authorized under Subsection
274	274	(b) to possess the catalytic converter.
275	275	(b) A person is presumed to be authorized to possess a
276	276	catalytic converter that has been removed from a motor vehicle if
277	277	the person:
278	278	(1) is the owner, as defined by Section 601.002,
279	279	Transportation Code, of the vehicle from which the catalytic
280	280	converter was removed; or
281	281	(2) possesses the catalytic converter in the ordinary
282	282	course of the person's business, including in the ordinary course
283	283	of business of an entity described by Section 1956.123(1),
284	284	Occupations Code.
285	285	(c) The presumption established under Subsection (b) does
286	286	not apply to a person described by Subsection (b)(2) who knows that
287	287	the catalytic converter was unlawfully removed from a motor vehicle
288	288	or otherwise unlawfully obtained.
289	289	(d) Except as provided by Subsection (e), an offense under
290	290	this section is a state jail felony.
291	291	(e) An offense under this section is a felony of the third
292	292	degree if it is shown on the trial of the offense that the person:
293	293	(1) has been previously convicted of an offense under
294	294	this section;
295	295	(2) in connection with the offense, engaged in conduct
296	296	constituting conspiracy under Section 15.02 to commit an offense
297	297	under Section 28.03 or 31.03 with respect to a catalytic converter;
298	298	or
299	299	(3) possessed a firearm during the commission of the
300	300	offense.
301	301	(f) If conduct constituting an offense under this section
302	302	also constitutes an offense under any other law, the actor may be
303	303	prosecuted under this section, the other law, or both.
304	304	SECTION 2.05. Section 71.02(a), Penal Code, is amended to
305	305	read as follows:
306	306	(a) A person commits an offense if, with the intent to
307	307	establish, maintain, or participate in a combination or in the
308	308	profits of a combination or as a member of a criminal street gang,
309	309	the person commits or conspires to commit one or more of the
310	310	following:
311	311	(1) murder, capital murder, arson, aggravated
312	312	robbery, robbery, burglary, theft, aggravated kidnapping,
313	313	kidnapping, aggravated assault, aggravated sexual assault, sexual
314	314	assault, continuous sexual abuse of young child or disabled
315	315	individual, solicitation of a minor, forgery, deadly conduct,
316	316	assault punishable as a Class A misdemeanor, burglary of a motor
317	317	vehicle, or unauthorized use of a motor vehicle;
318	318	(2) any gambling offense punishable as a Class A
319	319	misdemeanor;
320	320	(3) promotion of prostitution, aggravated promotion
321	321	of prostitution, or compelling prostitution;
322	322	(4) unlawful manufacture, transportation, repair, or
323	323	sale of firearms or prohibited weapons;
324	324	(5) unlawful manufacture, delivery, dispensation, or
325	325	distribution of a controlled substance or dangerous drug, or
326	326	unlawful possession of a controlled substance or dangerous drug
327	327	through forgery, fraud, misrepresentation, or deception;
328	328	(5-a) causing the unlawful delivery, dispensation, or
329	329	distribution of a controlled substance or dangerous drug in
330	330	violation of Subtitle B, Title 3, Occupations Code;
331	331	(6) any unlawful wholesale promotion or possession of
332	332	any obscene material or obscene device with the intent to wholesale
333	333	promote the same;
334	334	(7) any offense under Subchapter B, Chapter 43,
335	335	depicting or involving conduct by or directed toward a child
336	336	younger than 18 years of age;
337	337	(8) any felony offense under Chapter 32;
338	338	(9) any offense under Chapter 36;
339	339	(10) any offense under Chapter 34, 35, or 35A;
340	340	(11) any offense under Section 37.11(a);
341	341	(12) any offense under Chapter 20A;
342	342	(13) any offense under Section 37.10;
343	343	(14) any offense under Section 38.06, 38.07, 38.09, or
344	344	38.11;
345	345	(15) any offense under Section 42.10;
346	346	(16) any offense under Section 46.06(a)(1) or 46.14;
347	347	(17) any offense under Section 20.05 or 20.06;
348	348	(18) any offense under Section 16.02; [or]
349	349	(19) an offense under Section 28.03 that is punishable
350	350	under Subsection (b)(4)(E) of that section;
351	351	(20) an offense under Section 31.21 that is punishable
352	352	under Subsection (d) of that section; or
353	353	(21) any offense classified as a felony under the Tax
354	354	Code.
355	355	ARTICLE 3. REGULATORY PROVISIONS
356	356	SECTION 3.01. Section 1956.001, Occupations Code, is
357	357	amended by amending Subdivisions (6-b) and (7) and adding
358	358	Subdivision (6-c) to read as follows:
359	359	(6-b) "Fixed location" means a structure or facility
360	360	that:
361	361	(A) is attached to real property;
362	362	(B) has a fixed geographic location with a
363	363	physical address; and
364	364	(C) is used wholly or partly to conduct an
365	365	activity described by Subdivision (7).
366	366	(6-c) "Lead material" means:
367	367	(A) a commercial grade lead battery, lead-acid
368	368	battery, or spiral cell battery; or
369	369	(B) a material or an item readily identifiable as
370	370	being made of or containing lead.
371	371	(7) "Metal recycling entity" means a business that [is
372	372	operated from a fixed location and] is predominantly engaged in:
373	373	(A) performing the manufacturing process by
374	374	which scrap, used, or obsolete ferrous or nonferrous metal is
375	375	converted into raw material products consisting of prepared grades
376	376	and having an existing or potential economic value, by a method that
377	377	in part requires the use of powered tools and equipment, including
378	378	processes that involve processing, sorting, cutting, classifying,
379	379	cleaning, baling, wrapping, shredding, shearing, or changing the
380	380	physical form of that metal;
381	381	(B) the use of raw material products described
382	382	under Paragraph (A) in the manufacture of producer or consumer
383	383	goods; or
384	384	(C) purchasing or otherwise acquiring scrap,
385	385	used, or obsolete ferrous or nonferrous metals for the eventual use
386	386	of the metal for the purposes described by Paragraph (A) or (B).
387	387	SECTION 3.02. Section 1956.016, Occupations Code, is
388	388	amended to read as follows:
389	389	Sec. 1956.016. REGISTRATION DATABASE. The department shall
390	390	make available on its Internet website a publicly accessible list
391	391	of all registered metal recycling entities. The list must contain
392	392	the following for each registered metal recycling entity:
393	393	(1) the entity's name;
394	394	(2) the entity's physical address; [and]
395	395	(3) the name of and contact information for a
396	396	representative of the entity; and
397	397	(4) a description of the extent to which the entity
398	398	engages in transactions involving catalytic converters based on the
399	399	entity's most recent declaration submitted under Section
400	400	1956.022(a) or 1956.127, as applicable.
401	401	SECTION 3.03. Section 1956.017(b), Occupations Code, is
402	402	amended to read as follows:
403	403	(b) The advisory committee consists of 15 members appointed
404	404	by the director as follows:
405	405	(1) one representative of the department;
406	406	(2) two representatives of local law enforcement
407	407	agencies located in different municipalities, each with a
408	408	population of 500,000 or more;
409	409	(3) two representatives of local law enforcement
410	410	agencies located in different municipalities, each with a
411	411	population of 200,000 or more but less than 500,000;
412	412	(4) one representative of a local law enforcement
413	413	agency located in a municipality with a population of less than
414	414	200,000;
415	415	(5) five representatives of metal recycling entities,
416	416	at least one of whom must have substantial business experience with
417	417	transactions involving the purchase or acquisition of catalytic
418	418	converters;
419	419	(6) two members who represent industries that are
420	420	impacted by theft of regulated material;
421	421	(7) one sheriff of a county with a population of
422	422	500,000 or more; and
423	423	(8) one sheriff of a county with a population of less
424	424	than 500,000.
425	425	SECTION 3.04. Section 1956.022, Occupations Code, is
426	426	amended to read as follows:
427	427	Sec. 1956.022. ISSUANCE OF CERTIFICATE; QUALIFICATIONS.
428	428	(a) The department shall issue a certificate of registration to an
429	429	applicant who:
430	430	(1) applies and pays a registration fee; [and]
431	431	(2) presents any relevant evidence relating to the
432	432	applicant's qualifications as required by commission rule;
433	433	(3) submits a declaration describing the extent to
434	434	which the applicant intends to engage in transactions involving
435	435	catalytic converters removed from motor vehicles in the course of
436	436	the applicant's business activity;
437	437	(4) presents evidence satisfactory to the department
438	438	that the applicant intends to act as a metal recycling entity and
439	439	use a fixed location to wholly or partly conduct an activity
440	440	described by Section 1956.001(7); and
441	441	(5) provides the physical address of the fixed
442	442	location described by Subdivision (4).
443	443	(a-1) If the applicant's business activity involves
444	444	catalytic converters removed from motor vehicles, the declaration
445	445	described by Subsection (a)(3) must state:
446	446	(1) whether the applicant will engage in a business
447	447	activity described by Section 1956.001(7)(A) or (B) with respect to
448	448	catalytic converters removed from motor vehicles;
449	449	(2) whether the applicant will engage in a business
450	450	activity described by Section 1956.001(7)(C) but not a business
451	451	activity described by Section 1956.001(7)(A) or (B), with respect
452	452	to catalytic converters removed from motor vehicles; or
453	453	(3) that the applicant will deal only incidentally
454	454	with catalytic converters removed from motor vehicles.
455	455	(a-2) An applicant who intends to conduct an activity
456	456	described by Section 1956.001(7) at more than one fixed location
457	457	must complete an application and obtain a certificate of
458	458	registration for each fixed location.
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 3.05. 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 3.06. Subchapter A-3, Chapter 1956, Occupations
477	477	Code, is amended by adding Section 1956.030 to read as follows:
478	478	Sec. 1956.030. FIXED LOCATION. (a) A metal recycling
479	479	entity shall at all times maintain a fixed location and use the
480	480	fixed location to at least partly conduct an activity described by
481	481	Section 1956.001(7).
482	482	(b) A metal recycling entity shall maintain a fixed location
483	483	as required by Subsection (a) for each certificate of registration
484	484	held by the metal recycling entity.
485	485	SECTION 3.07. Chapter 1956, Occupations Code, is amended by
486	486	adding Subchapter C-1 to read as follows:
487	487	SUBCHAPTER C-1. CERTAIN TRANSACTIONS INVOLVING CATALYTIC
488	488	CONVERTERS REMOVED FROM MOTOR VEHICLES
489	489	Sec. 1956.121. DEFINITION. In this subchapter, "motor
490	490	vehicle" has the meaning assigned by Section 541.201,
491	491	Transportation Code.
492	492	Sec. 1956.122. APPLICABILITY; EFFECT OF LAW. (a)
493	493	Notwithstanding any other provision of this chapter, this
494	494	subchapter applies to the purchase or acquisition, from a person
495	495	described by Section 1956.002(1), of a catalytic converter removed
496	496	from a motor vehicle.
497	497	(b) This subchapter does not affect any requirement under
498	498	Subchapter A-3, including any requirement applicable to the
499	499	purchase or acquisition of a catalytic converter removed from a
500	500	motor vehicle from a person not described by Section 1956.002(1).
501	501	Sec. 1956.123. LIMITATION ON PURCHASING OR OTHERWISE
502	502	ACQUIRING CATALYTIC CONVERTERS. A metal recycling entity may not
503	503	purchase or otherwise acquire a catalytic converter that was
504	504	removed from a motor vehicle from a person described by Section
505	505	1956.002(1), unless each of the following is satisfied:
506	506	(1) the person selling the catalytic converter to the
507	507	metal recycling entity acquired it in the ordinary course of the
508	508	person's business, including in the ordinary course of business of
509	509	any of the following entities:
510	510	(A) an automotive wrecking and salvage yard as
511	511	defined by Section 234.001, Local Government Code;
512	512	(B) a metal recycling entity registered under
513	513	this chapter;
514	514	(C) a manufacturer, distributor, converter, or
515	515	dealer licensed under Chapter 2301, including any department of a
516	516	dealer or converter that repairs or services motor vehicles;
517	517	(D) a shop or garage that is engaged in the
518	518	business of repairing motor vehicles;
519	519	(E) a used automotive parts recycler licensed
520	520	under Chapter 2309;
521	521	(F) a motor vehicle demolisher as defined by
522	522	Section 683.001, Transportation Code;
523	523	(G) a school or training program in which
524	524	students are provided instruction on building, repairing, or
525	525	restoring motor vehicles;
526	526	(H) a law enforcement agency;
527	527	(I) the National Insurance Crime Bureau;
528	528	(J) a business that is:
529	529	(i) located in and regulated by another
530	530	state or a political subdivision of another state; and
531	531	(ii) engaged in an activity for which a
532	532	business described by Paragraphs (A) through (I) is regulated by
533	533	this state or a political subdivision of this state; or
534	534	(K) a business that is located in a jurisdiction
535	535	outside the United States and operated in a business form
536	536	recognized by the laws of that jurisdiction and that imports
537	537	catalytic converters into the United States in accordance with the
538	538	Harmonized Tariff Schedule of the United States published by the
539	539	United States International Trade Commission; and
540	540	(2) any individual acting on behalf of the person
541	541	described by Subdivision (1) has apparent authority to enter into
542	542	the transaction and is acting in the scope of that authority.
543	543	Sec. 1956.124. CERTAIN RECORDS REQUIRED WHEN PURCHASING OR
544	544	OTHERWISE ACQUIRING CATALYTIC CONVERTER; OFFENSE. (a) A metal
545	545	recycling entity shall maintain an accurate record of each
546	546	transaction in which the entity purchases or otherwise acquires a
547	547	catalytic converter that is removed from a motor vehicle from a
548	548	person described by Section 1956.123.
549	549	(b) A record meets the requirements of Subsection (a) if it
550	550	contains:
551	551	(1) a description made in accordance with the custom
552	552	of the trade for the volume of catalytic converters purchased or
553	553	otherwise acquired;
554	554	(2) the business name of the person from whom the
555	555	catalytic converters were purchased or otherwise acquired; and
556	556	(3) the date of the transaction.
557	557	(c) A metal recycling entity shall preserve each record
558	558	required by this section until the second anniversary of the date
559	559	the record was made. The records must be maintained in an easily
560	560	retrievable format and must be available for inspection as provided
561	561	by Section 1956.125 not later than 72 hours after the time of
562	562	purchase or acquisition.
563	563	(d) A record containing the information described by
564	564	Subsection (b) that is maintained in accordance with other law or as
565	565	a routine business practice satisfies the requirements of
566	566	Subsection (a).
567	567	(e) A metal recycling entity commits an offense if the
568	568	entity intentionally or knowingly fails to maintain a record as
569	569	required by this section. An offense under this subsection is a
570	570	Class A misdemeanor.
571	571	Sec. 1956.125. INSPECTION OF RECORDS. On request, a metal
572	572	recycling entity shall permit a peace officer, a representative of
573	573	the department, or a representative of a county, municipality, or
574	574	other political subdivision that issues a license or permit under
575	575	Section 1956.003(b) to, during the entity's usual business hours:
576	576	(1) enter the premises of the entity; and
577	577	(2) inspect a record required to be maintained by
578	578	Section 1956.124.
579	579	Sec. 1956.126. EFFECT ON LOCAL LAW. (a) Notwithstanding
580	580	Section 1956.003, a county, municipality, or political subdivision
581	581	of this state may not:
582	582	(1) with respect to a catalytic converter removed from
583	583	a motor vehicle, restrict the purchase, acquisition, sale,
584	584	transfer, or possession of the catalytic converter by a person
585	585	described by Section 1956.123; or
586	586	(2) alter or add to the recordkeeping requirements
587	587	provided by Section 1956.124.
588	588	(b) Subsection (a) does not affect the authority of a
589	589	county, municipality, or political subdivision of this state to:
590	590	(1) issue a license or permit as provided by Section
591	591	1956.003; or
592	592	(2) inspect a record as provided by Section 1956.125.
593	593	Sec. 1956.127. DECLARATION UPDATE. If the business
594	594	activity of a metal recycling entity substantially changes in the
595	595	extent to which the entity engages in transactions involving
596	596	catalytic converters removed from motor vehicles, the entity shall
597	597	update the entity's declaration submitted under Section 1956.022.
598	598	Sec. 1956.128. ADMINISTRATIVE PENALTY. (a) The commission
599	599	may impose an administrative penalty under Subchapter R, Chapter
600	600	411, Government Code, on a metal recycling entity that:
601	601	(1) violates Section 1956.123 due to the entity's
602	602	failure to exercise due diligence in purchasing or acquiring a
603	603	catalytic converter removed from a motor vehicle; or
604	604	(2) violates Section 1956.124.
605	605	(b) The amount of the administrative penalty may not exceed
606	606	$10,000.
607	607	SECTION 3.08. Subchapter A, Chapter 2305, Occupations Code,
608	608	is amended by adding Section 2305.0041 to read as follows:
609	609	Sec. 2305.0041. LIMITATION ON BUYING AND SELLING CATALYTIC
610	610	CONVERTERS. A person subject to this subchapter may not buy or sell
611	611	a catalytic converter removed from a motor vehicle unless the
612	612	catalytic converter was removed from the motor vehicle in
613	613	connection with the person's repair of the vehicle.
614	614	SECTION 3.09. The heading to Section 2305.0051, Occupations
615	615	Code, is amended to read as follows:
616	616	Sec. 2305.0051. REPAIR RECORDS RELATED TO CATALYTIC
617	617	CONVERTERS.
618	618	SECTION 3.10. Section 2305.0051(a), Occupations Code, is
619	619	amended to read as follows:
620	620	(a) The owner of a garage or repair shop that sells or
621	621	transfers to any person, including a metal recycling entity
622	622	registered under Chapter 1956, a catalytic converter that was [the
623	623	person] removed in connection with a motor vehicle repair shall
624	624	maintain a record of all repairs for the vehicle that includes:
625	625	(1) the name and address of the vehicle's owner; [and]
626	626	(2) the vehicle identification number of the vehicle;
627	627	and
628	628	(3) copies of all related invoices including, as
629	629	applicable, a notation that a catalytic converter was removed from
630	630	the vehicle.
631	631	SECTION 3.11. Section 2305.101(c), Occupations Code, is
632	632	amended to read as follows:
633	633	(c) An offense under this chapter that consists of the
634	634	violation of Section 2305.0041, 2305.0051, or 2305.007 is a Class A
635	635	misdemeanor.
636	636	SECTION 3.12. Chapter 2305, Occupations Code, is amended by
637	637	adding Subchapter D to read as follows:
638	638	SUBCHAPTER D. RECORDS OF CERTAIN SALES OR TRANSFERS OF CATALYTIC
639	639	CONVERTERS REMOVED FROM MOTOR VEHICLES
640	640	Sec. 2305.151. DEFINITION. In this subchapter, "catalytic
641	641	converter" has the meaning assigned by Section 1956.001.
642	642	Sec. 2305.152. APPLICABILITY. This subchapter applies only
643	643	to a person described by Section 1956.123(1)(A) through (G).
644	644	Sec. 2305.153. RECORD REQUIRED. (a) A person to whom this
645	645	subchapter applies shall, for each transaction in which the person
646	646	sells or transfers to another person a catalytic converter that is
647	647	removed from a motor vehicle, maintain an accurate record of the
648	648	transaction until the second anniversary of the date of the
649	649	transaction.
650	650	(b) A record is sufficient to meet the requirements of
651	651	Subsection (a) if it contains:
652	652	(1) a description made in accordance with the custom
653	653	of the trade for the volume of catalytic converters sold or
654	654	transferred;
655	655	(2) the name of the person to whom the catalytic
656	656	converters were sold or transferred; and
657	657	(3) the date of the transaction.
658	658	(c) A record containing the information described by
659	659	Subsection (b) that is maintained in accordance with other law or as
660	660	a routine business practice satisfies the requirements of
661	661	Subsection (a).
662	662	Sec. 2305.154. OFFENSE: FAILURE TO MAINTAIN RECORD. (a) A
663	663	person commits an offense if the person intentionally or knowingly
664	664	fails to maintain a record as required by Section 2305.153.
665	665	(b) An offense under this section is a Class A misdemeanor.
666	666	(c) If conduct that constitutes an offense under this
667	667	section also constitutes an offense under another provision of this
668	668	chapter, the person may be prosecuted only under this section.
669	669	Sec. 2305.155. INSPECTION OF CERTAIN RECORDS. (a) In this
670	670	section, "licensing authority" and "occupational license" have the
671	671	meanings assigned by Section 58.001.
672	672	(b) If an occupational license is required for a person to
673	673	engage in a business or occupation described by Section
674	674	1956.123(1)(A) through (G), the licensing authority that issues the
675	675	occupational license may at a reasonable time:
676	676	(1) enter the premises at which the person engages in
677	677	the regulated business or occupation; and
678	678	(2) inspect the records or information required to be
679	679	maintained under Section 2305.153.
680	680	(c) Regardless of whether an occupational license is
681	681	required, an officer of the Department of Public Safety or another
682	682	peace officer may enter the premises of and inspect the records of a
683	683	person described by Section 1956.123(1)(A) through (G), as provided
684	684	by Subsection (b).
685	685	SECTION 3.13. Section 1006.001(2), Transportation Code, is
686	686	amended to read as follows:
687	687	(2) "Economic motor vehicle theft" means motor vehicle
688	688	burglary or theft, including theft of a catalytic converter
689	689	attached to a motor vehicle, committed for financial gain.
690	690	SECTION 3.14. Sections 1006.153(b) and (e), Transportation
691	691	Code, are amended to read as follows:
692	692	(b) An insurer shall pay to the authority a fee equal to $5
693	693	[$4] multiplied by the total number of motor vehicle years of
694	694	insurance for insurance policies delivered, issued for delivery, or
695	695	renewed by the insurer. The fee shall be paid not later than:
696	696	(1) March 1 of each year for a policy delivered,
697	697	issued, or renewed from July 1 through December 31 of the previous
698	698	calendar year; and
699	699	(2) August 1 of each year for a policy delivered,
700	700	issued, or renewed from January 1 through June 30 of that year.
701	701	(e) Out of each fee collected under Subsection (b), $1 shall
702	702	be deposited to the credit of the general revenue fund to be used
703	703	only for coordinated regulatory and law enforcement activities
704	704	intended to detect and prevent catalytic converter theft in this
705	705	state. The remainder of each fee collected under Subsection (b) and
706	706	any [or an] amount collected under Subsection (b-1) shall be
707	707	allocated as follows:
708	708	(1) 20 percent shall be appropriated to the authority
709	709	for the purposes of this chapter;
710	710	(2) 20 percent shall be deposited to the credit of the
711	711	general revenue fund, to be used only for criminal justice
712	712	purposes; and
713	713	(3) 60 percent shall be deposited to the credit of the
714	714	designated trauma facility and emergency medical services account
715	715	under Section 780.003, Health and Safety Code, to be used only for
716	716	the criminal justice purpose of funding designated trauma
717	717	facilities, county and regional emergency medical services, and
718	718	trauma care systems that provide trauma care and emergency medical
719	719	services to victims of accidents resulting from traffic offenses.
720	720	ARTICLE 4. TRANSITIONS
721	721	SECTION 4.01. The change in law made by this Act to Section
722	722	1956.017, Occupations Code, does not affect the entitlement of a
723	723	member serving on the advisory committee established under that
724	724	section immediately before the effective date of this Act to
725	725	continue to serve for the remainder of the member's term. As the
726	726	terms of members expire after the effective date of this Act, the
727	727	director of the Department of Public Safety shall appoint or
728	728	reappoint members who have the qualifications required by that
729	729	section.
730	730	SECTION 4.02. Not later than October 1, 2023, a metal
731	731	recycling entity registered under Chapter 1956, Occupations Code,
732	732	on the effective date of this Act shall submit a declaration
733	733	described by Section 1956.022(a)(3), as added by this Act, to the
734	734	Department of Public Safety.
735	735	SECTION 4.03. Section 1956.022(a), Occupations Code, as
736	736	amended by this Act, applies only to an application for a
737	737	certificate of registration submitted on or after January 1, 2024.
738	738	An application submitted before January 1, 2024, is governed by the
739	739	law in effect immediately before the effective date of this Act, and
740	740	the former law is continued in effect for that purpose.
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) In this section, "authority" means the
761	761	Motor Vehicle Crime Prevention Authority.
762	762	(b) Not later than January 1, 2024, the authority shall
763	763	develop and implement a plan to coordinate efforts with the
764	764	Department of Public Safety, the Texas Department of Licensing and
765	765	Regulation, and the Texas Department of Motor Vehicles to:
766	766	(1) review the records of persons regulated by each
767	767	agency involving the purchase, acquisition, sale, or transfer of
768	768	catalytic converters removed from motor vehicles; and
769	769	(2) respond to suspicious activities that may be
770	770	detected through the analysis of the records described by
771	771	Subdivision (1) of this subsection.
772	772	(c) The authority may establish a task force composed of
773	773	persons regulated by the agencies listed in Subsection (b) of this
774	774	section who have substantial business experience in transactions
775	775	involving catalytic converters. The authority shall develop the
776	776	plan described by Subsection (b) of this section with the
777	777	participation of the task force, if established.
778	778	(d) Except as provided by Subsection (c) of this section,
779	779	the authority may appoint members to the task force as the authority
780	780	determines appropriate.
781	781	(e) In developing and implementing the plan described by
782	782	Subsection (b) of this section, the authority shall focus on:
783	783	(1) protecting each step in the legitimate stream of
784	784	commerce that begins with the removal of a catalytic converter from
785	785	a motor vehicle and includes recycling those catalytic converters
786	786	to ensure that the persons regulated by the agencies listed in
787	787	Subsection (b) of this section are not the means for inserting
788	788	stolen catalytic converters into the stream of commerce; and
789	789	(2) providing risk-based targeting and random
790	790	auditing of the records of the persons regulated by the agencies
791	791	listed in Subsection (b) of this section.
792	792	(f) The money deposited to the credit of the general revenue
793	793	fund for coordinated regulatory and law enforcement activities
794	794	intended to detect and prevent catalytic converter theft in this
795	795	state as described by Section 1006.153(e), Transportation Code, as
796	796	amended by this Act, may be appropriated to the authority for the
797	797	activities required by this section.
798	798	ARTICLE 6. EFFECTIVE DATE
799	799	SECTION 6.01. (a) This Act takes effect immediately if it
800	800	receives a vote of two-thirds of all the members elected to each
801	801	house, as provided by Section 39, Article III, Texas Constitution.
802	802	If this Act does not receive the vote necessary for immediate
803	803	effect, this Act takes effect September 1, 2023.
804	804	(b) Sections 1956.001(6-b) and (7), Occupations Code, as
805	805	amended by this Act, and Section 1956.030, Occupations Code, as
806	806	added by this Act, take effect July 1, 2023.
807	807	______________________________ ______________________________
808	808	President of the Senate Speaker of the House
809	809	I hereby certify that S.B. No. 224 passed the Senate on
810	810	April 3, 2023, by the following vote: Yeas 30, Nays 0.
811	811	______________________________
812	812	Secretary of the Senate
813	813	I hereby certify that S.B. No. 224 passed the House on
814	814	May 16, 2023, by the following vote: Yeas 142, Nays 0,
815	815	one present not voting.
816	816	______________________________
817	817	Chief Clerk of the House
818	818	Approved:
819	819	______________________________
820	820	Date
821	821	______________________________
822	822	Governor