S.B. No. 224
AN ACT
relating to catalytic converters, including criminal conduct
involving catalytic converters; providing an administrative
penalty; creating a criminal offense; increasing a criminal
penalty; increasing a fee.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1. TITLE
SECTION 1.01. This Act may be cited as the Deputy Darren
Almendarez Act.
ARTICLE 2. CRIMINAL OFFENSES
SECTION 2.01. Section 28.03(b), Penal Code, is amended to
read as follows:
(b) Except as provided by Subsections (f) and (h), an
offense under this section is:
(1) a Class C misdemeanor if:
(A) the amount of pecuniary loss is less than
$100; or
(B) except as provided in Subdivision (3)(A) or
(3)(B), it causes substantial inconvenience to others;
(2) a Class B misdemeanor if the amount of pecuniary
loss is $100 or more but less than $750;
(3) a Class A misdemeanor if:
(A) the amount of pecuniary loss is $750 or more
but less than $2,500; or
(B) the actor causes in whole or in part
impairment or interruption of any public water supply, or causes to
be diverted in whole, in part, or in any manner, including
installation or removal of any device for any such purpose, any
public water supply, regardless of the amount of the pecuniary
loss;
(4) a state jail felony if the amount of pecuniary loss
is:
(A) $2,500 or more but less than $30,000;
(B) less than $2,500, if the property damaged or
destroyed is a habitation and if the damage or destruction is caused
by a firearm or explosive weapon;
(C) less than $2,500, if the property was a fence
used for the production or containment of:
(i) cattle, bison, horses, sheep, swine,
goats, exotic livestock, or exotic poultry; or
(ii) game animals as that term is defined by
Section 63.001, Parks and Wildlife Code; [or]
(D) less than $30,000 and the actor:
(i) causes wholly or partly impairment or
interruption of property used for flood control purposes or a dam or
of public communications, public transportation, public gas or
power supply, or other public service; or
(ii) causes to be diverted wholly, partly,
or in any manner, including installation or removal of any device
for any such purpose, any public communications or public gas or
power supply; or
(E) less than $30,000, if the property is a motor
vehicle that is damaged, destroyed, or tampered with during the
removal or attempted removal of a catalytic converter from the
motor vehicle;
(5) a felony of the third degree if:
(A) the amount of the pecuniary loss is $30,000
or more but less than $150,000;
(B) the actor, by discharging a firearm or other
weapon or by any other means, causes the death of one or more head of
cattle or bison or one or more horses; or
(C) the actor causes wholly or partly impairment
or interruption of access to an automated teller machine,
regardless of the amount of the pecuniary loss;
(6) a felony of the second degree if the amount of
pecuniary loss is $150,000 or more but less than $300,000; or
(7) a felony of the first degree if the amount of
pecuniary loss is $300,000 or more.
SECTION 2.02. Section 31.03, Penal Code, is amended by
amending Subsections (c) and (e) and adding Subsection (f-1) to
read as follows:
(c) For purposes of Subsection (b):
(1) evidence that the actor has previously
participated in recent transactions other than, but similar to, the
transaction for [that] which the prosecution is based is admissible
for the purpose of showing knowledge or intent and the issues of
knowledge or intent are raised by the actor's plea of not guilty;
(2) the testimony of an accomplice shall be
corroborated by proof that tends to connect the actor to the crime,
but the actor's knowledge or intent may be established by the
uncorroborated testimony of the accomplice;
(3) an actor engaged in the business of buying and
selling used or secondhand personal property, or lending money on
the security of personal property deposited with the actor, is
presumed to know upon receipt by the actor of stolen property (other
than a motor vehicle subject to Chapter 501, Transportation Code)
that the property has been previously stolen from another if the
actor pays for or loans against the property $25 or more (or
consideration of equivalent value) and the actor knowingly or
recklessly:
(A) fails to record the name, address, and
physical description or identification number of the seller or
pledgor;
(B) fails to record a complete description of the
property, including the serial number, if reasonably available, or
other identifying characteristics; or
(C) fails to obtain a signed warranty from the
seller or pledgor that the seller or pledgor has the right to
possess the property. It is the express intent of this provision
that the presumption arises unless the actor complies with each of
the numbered requirements;
(4) for the purposes of Subdivision (3)(A),
"identification number" means driver's license number, military
identification number, identification certificate, or other
official number capable of identifying an individual;
(5) stolen property does not lose its character as
stolen when recovered by any law enforcement agency;
(6) an actor engaged in the business of obtaining
abandoned or wrecked motor vehicles or parts of an abandoned or
wrecked motor vehicle for resale, disposal, scrap, repair,
rebuilding, demolition, or other form of salvage is presumed to
know on receipt by the actor of stolen property that the property
has been previously stolen from another if the actor knowingly or
recklessly:
(A) fails to maintain an accurate and legible
inventory of each motor vehicle component part purchased by or
delivered to the actor, including the date of purchase or delivery,
the name, age, address, sex, and driver's license number of the
seller or person making the delivery, the license plate number of
the motor vehicle in which the part was delivered, a complete
description of the part, and the vehicle identification number of
the motor vehicle from which the part was removed, or in lieu of
maintaining an inventory, fails to record the name and certificate
of inventory number of the person who dismantled the motor vehicle
from which the part was obtained;
(B) fails on receipt of a motor vehicle to obtain
a certificate of authority, sales receipt, or transfer document as
required by Chapter 683, Transportation Code, or a certificate of
title showing that the motor vehicle is not subject to a lien or
that all recorded liens on the motor vehicle have been released; or
(C) fails on receipt of a motor vehicle to
immediately remove an unexpired license plate from the motor
vehicle, to keep the plate in a secure and locked place, or to
maintain an inventory, on forms provided by the Texas Department of
Motor Vehicles, of license plates kept under this paragraph,
including for each plate or set of plates the license plate number
and the make, motor number, and vehicle identification number of
the motor vehicle from which the plate was removed;
(7) an actor who purchases or receives a used or
secondhand motor vehicle is presumed to know on receipt by the actor
of the motor vehicle that the motor vehicle has been previously
stolen from another if the actor knowingly or recklessly:
(A) fails to report to the Texas Department of
Motor Vehicles the failure of the person who sold or delivered the
motor vehicle to the actor to deliver to the actor a properly
executed certificate of title to the motor vehicle at the time the
motor vehicle was delivered; or
(B) fails to file with the county tax
assessor-collector of the county in which the actor received the
motor vehicle, not later than the 20th day after the date the actor
received the motor vehicle, the registration license receipt and
certificate of title or evidence of title delivered to the actor in
accordance with Subchapter D, Chapter 520, Transportation Code, at
the time the motor vehicle was delivered;
(8) an actor who purchases or receives from any source
other than a licensed retailer or distributor of pesticides a
restricted-use pesticide or a state-limited-use pesticide or a
compound, mixture, or preparation containing a restricted-use or
state-limited-use pesticide is presumed to know on receipt by the
actor of the pesticide or compound, mixture, or preparation that
the pesticide or compound, mixture, or preparation has been
previously stolen from another if the actor:
(A) fails to record the name, address, and
physical description of the seller or pledgor;
(B) fails to record a complete description of the
amount and type of pesticide or compound, mixture, or preparation
purchased or received; and
(C) fails to obtain a signed warranty from the
seller or pledgor that the seller or pledgor has the right to
possess the property; [and]
(9) an actor who is subject to Section 409, Packers and
Stockyards Act (7 U.S.C. Section 228b), that obtains livestock from
a commission merchant by representing that the actor will make
prompt payment is presumed to have induced the commission
merchant's consent by deception if the actor fails to make full
payment in accordance with Section 409, Packers and Stockyards Act
(7 U.S.C. Section 228b); and
(10) an actor in possession of property consisting of
one or more catalytic converters that have been removed from a motor
vehicle is presumed to have unlawfully appropriated the property
unless the actor:
(A) is the owner, as defined by Section 601.002,
Transportation Code, of each vehicle from which the catalytic
converters were removed; or
(B) possesses the catalytic converters in the
ordinary course of the actor's business, including in the ordinary
course of business of an entity described by Section 1956.123(1),
Occupations Code.
(e) Except as provided by Subsections [Subsection] (f) and
(f-1), an offense under this section is:
(1) a Class C misdemeanor if the value of the property
stolen is less than $100;
(2) a Class B misdemeanor if:
(A) the value of the property stolen is $100 or
more but less than $750;
(B) the value of the property stolen is less than
$100 and the defendant has previously been convicted of any grade of
theft; or
(C) the property stolen is a driver's license,
commercial driver's license, or personal identification
certificate issued by this state or another state;
(3) a Class A misdemeanor if the value of the property
stolen is $750 or more but less than $2,500;
(4) a state jail felony if:
(A) the value of the property stolen is $2,500 or
more but less than $30,000, or the property is less than 10 head of
sheep, swine, or goats or any part thereof under the value of
$30,000;
(B) regardless of value, the property is stolen
from the person of another or from a human corpse or grave,
including property that is a military grave marker;
(C) the property stolen is a firearm[, as defined
by Section 46.01];
(D) the value of the property stolen is less than
$2,500 and the defendant has been previously convicted two or more
times of any grade of theft;
(E) the property stolen is an official ballot or
official carrier envelope for an election; [or]
(F) the value of the property stolen is less than
$20,000 and the property stolen is:
(i) aluminum;
(ii) bronze;
(iii) copper; or
(iv) brass; or
(G) the cost of replacing the property stolen is
less than $30,000 and the property stolen is a catalytic converter;
(5) a felony of the third degree if the value of the
property stolen is $30,000 or more but less than $150,000, or the
property is:
(A) cattle, horses, or exotic livestock or exotic
fowl as defined by Section 142.001, Agriculture Code, stolen during
a single transaction and having an aggregate value of less than
$150,000;
(B) 10 or more head of sheep, swine, or goats
stolen during a single transaction and having an aggregate value of
less than $150,000; or
(C) a controlled substance, having a value of
less than $150,000, if stolen from:
(i) a commercial building in which a
controlled substance is generally stored, including a pharmacy,
clinic, hospital, nursing facility, or warehouse; or
(ii) a vehicle owned or operated by a
wholesale distributor of prescription drugs;
(6) a felony of the second degree if:
(A) the value of the property stolen is $150,000
or more but less than $300,000; or
(B) the value of the property stolen is less than
$300,000 and the property stolen is an automated teller machine or
the contents or components of an automated teller machine; or
(7) a felony of the first degree if the value of the
property stolen is $300,000 or more.
(f-1) An offense described for purposes of punishment by
Subsections (e)(4)-(6) is increased to the next higher category of
offense if it is shown on the trial of the offense that:
(1) the property stolen is a catalytic converter; and
(2) the actor possessed a firearm during the
commission of the offense.
SECTION 2.03. Section 31.03(h), Penal Code, is amended by
adding Subdivisions (7) and (8) to read as follows:
(7) "Catalytic converter" means a catalytic converter
and any material removed from the catalytic converter.
(8) "Firearm" has the meaning assigned by Section
46.01.
SECTION 2.04. Chapter 31, Penal Code, is amended by adding
Section 31.21 to read as follows:
Sec. 31.21. UNAUTHORIZED POSSESSION OF CATALYTIC
CONVERTER. (a) A person commits an offense if the person:
(1) intentionally or knowingly possesses a catalytic
converter that has been removed from a motor vehicle; and
(2) is not a person who is authorized under Subsection
(b) to possess the catalytic converter.
(b) A person is presumed to be authorized to possess a
catalytic converter that has been removed from a motor vehicle if
the person:
(1) is the owner, as defined by Section 601.002,
Transportation Code, of the vehicle from which the catalytic
converter was removed; or
(2) possesses the catalytic converter in the ordinary
course of the person's business, including in the ordinary course
of business of an entity described by Section 1956.123(1),
Occupations Code.
(c) The presumption established under Subsection (b) does
not apply to a person described by Subsection (b)(2) who knows that
the catalytic converter was unlawfully removed from a motor vehicle
or otherwise unlawfully obtained.
(d) Except as provided by Subsection (e), an offense under
this section is a state jail felony.
(e) An offense under this section is a felony of the third
degree if it is shown on the trial of the offense that the person:
(1) has been previously convicted of an offense under
this section;
(2) in connection with the offense, engaged in conduct
constituting conspiracy under Section 15.02 to commit an offense
under Section 28.03 or 31.03 with respect to a catalytic converter;
or
(3) possessed a firearm during the commission of the
offense.
(f) If conduct constituting an offense under this section
also constitutes an offense under any other law, the actor may be
prosecuted under this section, the other law, or both.
SECTION 2.05. Section 71.02(a), Penal Code, is amended to
read as follows:
(a) A person commits an offense if, with the intent to
establish, maintain, or participate in a combination or in the
profits of a combination or as a member of a criminal street gang,
the person commits or conspires to commit one or more of the
following:
(1) murder, capital murder, arson, aggravated
robbery, robbery, burglary, theft, aggravated kidnapping,
kidnapping, aggravated assault, aggravated sexual assault, sexual
assault, continuous sexual abuse of young child or disabled
individual, solicitation of a minor, forgery, deadly conduct,
assault punishable as a Class A misdemeanor, burglary of a motor
vehicle, or unauthorized use of a motor vehicle;
(2) any gambling offense punishable as a Class A
misdemeanor;
(3) promotion of prostitution, aggravated promotion
of prostitution, or compelling prostitution;
(4) unlawful manufacture, transportation, repair, or
sale of firearms or prohibited weapons;
(5) unlawful manufacture, delivery, dispensation, or
distribution of a controlled substance or dangerous drug, or
unlawful possession of a controlled substance or dangerous drug
through forgery, fraud, misrepresentation, or deception;
(5-a) causing the unlawful delivery, dispensation, or
distribution of a controlled substance or dangerous drug in
violation of Subtitle B, Title 3, Occupations Code;
(6) any unlawful wholesale promotion or possession of
any obscene material or obscene device with the intent to wholesale
promote the same;
(7) any offense under Subchapter B, Chapter 43,
depicting or involving conduct by or directed toward a child
younger than 18 years of age;
(8) any felony offense under Chapter 32;
(9) any offense under Chapter 36;
(10) any offense under Chapter 34, 35, or 35A;
(11) any offense under Section 37.11(a);
(12) any offense under Chapter 20A;
(13) any offense under Section 37.10;
(14) any offense under Section 38.06, 38.07, 38.09, or
38.11;
(15) any offense under Section 42.10;
(16) any offense under Section 46.06(a)(1) or 46.14;
(17) any offense under Section 20.05 or 20.06;
(18) any offense under Section 16.02; [or]
(19) an offense under Section 28.03 that is punishable
under Subsection (b)(4)(E) of that section;
(20) an offense under Section 31.21 that is punishable
under Subsection (d) of that section; or
(21) any offense classified as a felony under the Tax
Code.
ARTICLE 3. REGULATORY PROVISIONS
SECTION 3.01. Section 1956.001, Occupations Code, is
amended by amending Subdivisions (6-b) and (7) and adding
Subdivision (6-c) to read as follows:
(6-b) "Fixed location" means a structure or facility
that:
(A) is attached to real property;
(B) has a fixed geographic location with a
physical address; and
(C) is used wholly or partly to conduct an
activity described by Subdivision (7).
(6-c) "Lead material" means:
(A) a commercial grade lead battery, lead-acid
battery, or spiral cell battery; or
(B) a material or an item readily identifiable as
being made of or containing lead.
(7) "Metal recycling entity" means a business that [is
operated from a fixed location and] is predominantly engaged in:
(A) performing the manufacturing process by
which scrap, used, or obsolete ferrous or nonferrous metal is
converted into raw material products consisting of prepared grades
and having an existing or potential economic value, by a method that
in part requires the use of powered tools and equipment, including
processes that involve processing, sorting, cutting, classifying,
cleaning, baling, wrapping, shredding, shearing, or changing the
physical form of that metal;
(B) the use of raw material products described
under Paragraph (A) in the manufacture of producer or consumer
goods; or
(C) purchasing or otherwise acquiring scrap,
used, or obsolete ferrous or nonferrous metals for the eventual use
of the metal for the purposes described by Paragraph (A) or (B).
SECTION 3.02. Section 1956.016, Occupations Code, is
amended to read as follows:
Sec. 1956.016. REGISTRATION DATABASE. The department shall
make available on its Internet website a publicly accessible list
of all registered metal recycling entities. The list must contain
the following for each registered metal recycling entity:
(1) the entity's name;
(2) the entity's physical address; [and]
(3) the name of and contact information for a
representative of the entity; and
(4) a description of the extent to which the entity
engages in transactions involving catalytic converters based on the
entity's most recent declaration submitted under Section
1956.022(a) or 1956.127, as applicable.
SECTION 3.03. Section 1956.017(b), Occupations Code, is
amended to read as follows:
(b) The advisory committee consists of 15 members appointed
by the director as follows:
(1) one representative of the department;
(2) two representatives of local law enforcement
agencies located in different municipalities, each with a
population of 500,000 or more;
(3) two representatives of local law enforcement
agencies located in different municipalities, each with a
population of 200,000 or more but less than 500,000;
(4) one representative of a local law enforcement
agency located in a municipality with a population of less than
200,000;
(5) five representatives of metal recycling entities,
at least one of whom must have substantial business experience with
transactions involving the purchase or acquisition of catalytic
converters;
(6) two members who represent industries that are
impacted by theft of regulated material;
(7) one sheriff of a county with a population of
500,000 or more; and
(8) one sheriff of a county with a population of less
than 500,000.
SECTION 3.04. Section 1956.022, Occupations Code, is
amended to read as follows:
Sec. 1956.022. ISSUANCE OF CERTIFICATE; QUALIFICATIONS.
(a) The department shall issue a certificate of registration to an
applicant who:
(1) applies and pays a registration fee; [and]
(2) presents any relevant evidence relating to the
applicant's qualifications as required by commission rule;
(3) submits a declaration describing the extent to
which the applicant intends to engage in transactions involving
catalytic converters removed from motor vehicles in the course of
the applicant's business activity;
(4) presents evidence satisfactory to the department
that the applicant intends to act as a metal recycling entity and
use a fixed location to wholly or partly conduct an activity
described by Section 1956.001(7); and
(5) provides the physical address of the fixed
location described by Subdivision (4).
(a-1) If the applicant's business activity involves
catalytic converters removed from motor vehicles, the declaration
described by Subsection (a)(3) must state:
(1) whether the applicant will engage in a business
activity described by Section 1956.001(7)(A) or (B) with respect to
catalytic converters removed from motor vehicles;
(2) whether the applicant will engage in a business
activity described by Section 1956.001(7)(C) but not a business
activity described by Section 1956.001(7)(A) or (B), with respect
to catalytic converters removed from motor vehicles; or
(3) that the applicant will deal only incidentally
with catalytic converters removed from motor vehicles.
(a-2) An applicant who intends to conduct an activity
described by Section 1956.001(7) at more than one fixed location
must complete an application and obtain a certificate of
registration for each fixed location.
(b) The commission by rule may establish qualifications for
the holder of a certificate of registration under this chapter,
which may include accepting copies of a license or permit issued by
a county or municipality authorizing a metal recycling entity to
conduct business in that county or municipality. The
qualifications may differ for a holder of a certificate of
registration under this chapter based on the extent to which the
person engages in transactions involving catalytic converters
removed from motor vehicles as stated on the person's declaration
submitted under Subsection (a).
SECTION 3.05. Section 1956.024(a), Occupations Code, is
amended to read as follows:
(a) To renew a certificate of registration, a person must:
(1) submit an application for renewal in the manner
prescribed by the department; and
(2) update the person's declaration submitted under
Section 1956.022(a).
SECTION 3.06. Subchapter A-3, Chapter 1956, Occupations
Code, is amended by adding Section 1956.030 to read as follows:
Sec. 1956.030. FIXED LOCATION. (a) A metal recycling
entity shall at all times maintain a fixed location and use the
fixed location to at least partly conduct an activity described by
Section 1956.001(7).
(b) A metal recycling entity shall maintain a fixed location
as required by Subsection (a) for each certificate of registration
held by the metal recycling entity.
SECTION 3.07. Chapter 1956, Occupations Code, is amended by
adding Subchapter C-1 to read as follows:
SUBCHAPTER C-1. CERTAIN TRANSACTIONS INVOLVING CATALYTIC
CONVERTERS REMOVED FROM MOTOR VEHICLES
Sec. 1956.121. DEFINITION. In this subchapter, "motor
vehicle" has the meaning assigned by Section 541.201,
Transportation Code.
Sec. 1956.122. APPLICABILITY; EFFECT OF LAW. (a)
Notwithstanding any other provision of this chapter, this
subchapter applies to the purchase or acquisition, from a person
described by Section 1956.002(1), of a catalytic converter removed
from a motor vehicle.
(b) This subchapter does not affect any requirement under
Subchapter A-3, including any requirement applicable to the
purchase or acquisition of a catalytic converter removed from a
motor vehicle from a person not described by Section 1956.002(1).
Sec. 1956.123. LIMITATION ON PURCHASING OR OTHERWISE
ACQUIRING CATALYTIC CONVERTERS. A metal recycling entity may not
purchase or otherwise acquire a catalytic converter that was
removed from a motor vehicle from a person described by Section
1956.002(1), unless each of the following is satisfied:
(1) the person selling the catalytic converter to the
metal recycling entity acquired it in the ordinary course of the
person's business, including in the ordinary course of business of
any of the following entities:
(A) an automotive wrecking and salvage yard as
defined by Section 234.001, Local Government Code;
(B) a metal recycling entity registered under
this chapter;
(C) a manufacturer, distributor, converter, or
dealer licensed under Chapter 2301, including any department of a
dealer or converter that repairs or services motor vehicles;
(D) a shop or garage that is engaged in the
business of repairing motor vehicles;
(E) a used automotive parts recycler licensed
under Chapter 2309;
(F) a motor vehicle demolisher as defined by
Section 683.001, Transportation Code;
(G) a school or training program in which
students are provided instruction on building, repairing, or
restoring motor vehicles;
(H) a law enforcement agency;
(I) the National Insurance Crime Bureau;
(J) a business that is:
(i) located in and regulated by another
state or a political subdivision of another state; and
(ii) engaged in an activity for which a
business described by Paragraphs (A) through (I) is regulated by
this state or a political subdivision of this state; or
(K) a business that is located in a jurisdiction
outside the United States and operated in a business form
recognized by the laws of that jurisdiction and that imports
catalytic converters into the United States in accordance with the
Harmonized Tariff Schedule of the United States published by the
United States International Trade Commission; and
(2) any individual acting on behalf of the person
described by Subdivision (1) has apparent authority to enter into
the transaction and is acting in the scope of that authority.
Sec. 1956.124. CERTAIN RECORDS REQUIRED WHEN PURCHASING OR
OTHERWISE ACQUIRING CATALYTIC CONVERTER; OFFENSE. (a) A metal
recycling entity shall maintain an accurate record of each
transaction in which the entity purchases or otherwise acquires a
catalytic converter that is removed from a motor vehicle from a
person described by Section 1956.123.
(b) A record meets the requirements of Subsection (a) if it
contains:
(1) a description made in accordance with the custom
of the trade for the volume of catalytic converters purchased or
otherwise acquired;
(2) the business name of the person from whom the
catalytic converters were purchased or otherwise acquired; and
(3) the date of the transaction.
(c) A metal recycling entity shall preserve each record
required by this section until the second anniversary of the date
the record was made. The records must be maintained in an easily
retrievable format and must be available for inspection as provided
by Section 1956.125 not later than 72 hours after the time of
purchase or acquisition.
(d) A record containing the information described by
Subsection (b) that is maintained in accordance with other law or as
a routine business practice satisfies the requirements of
Subsection (a).
(e) A metal recycling entity commits an offense if the
entity intentionally or knowingly fails to maintain a record as
required by this section. An offense under this subsection is a
Class A misdemeanor.
Sec. 1956.125. INSPECTION OF RECORDS. On request, a metal
recycling entity shall permit a peace officer, a representative of
the department, or a representative of a county, municipality, or
other political subdivision that issues a license or permit under
Section 1956.003(b) to, during the entity's usual business hours:
(1) enter the premises of the entity; and
(2) inspect a record required to be maintained by
Section 1956.124.
Sec. 1956.126. EFFECT ON LOCAL LAW. (a) Notwithstanding
Section 1956.003, a county, municipality, or political subdivision
of this state may not:
(1) with respect to a catalytic converter removed from
a motor vehicle, restrict the purchase, acquisition, sale,
transfer, or possession of the catalytic converter by a person
described by Section 1956.123; or
(2) alter or add to the recordkeeping requirements
provided by Section 1956.124.
(b) Subsection (a) does not affect the authority of a
county, municipality, or political subdivision of this state to:
(1) issue a license or permit as provided by Section
1956.003; or
(2) inspect a record as provided by Section 1956.125.
Sec. 1956.127. DECLARATION UPDATE. If the business
activity of a metal recycling entity substantially changes in the
extent to which the entity engages in transactions involving
catalytic converters removed from motor vehicles, the entity shall
update the entity's declaration submitted under Section 1956.022.
Sec. 1956.128. ADMINISTRATIVE PENALTY. (a) The commission
may impose an administrative penalty under Subchapter R, Chapter
411, Government Code, on a metal recycling entity that:
(1) violates Section 1956.123 due to the entity's
failure to exercise due diligence in purchasing or acquiring a
catalytic converter removed from a motor vehicle; or
(2) violates Section 1956.124.
(b) The amount of the administrative penalty may not exceed
$10,000.
SECTION 3.08. Subchapter A, Chapter 2305, Occupations Code,
is amended by adding Section 2305.0041 to read as follows:
Sec. 2305.0041. LIMITATION ON BUYING AND SELLING CATALYTIC
CONVERTERS. A person subject to this subchapter may not buy or sell
a catalytic converter removed from a motor vehicle unless the
catalytic converter was removed from the motor vehicle in
connection with the person's repair of the vehicle.
SECTION 3.09. The heading to Section 2305.0051, Occupations
Code, is amended to read as follows:
Sec. 2305.0051. REPAIR RECORDS RELATED TO CATALYTIC
CONVERTERS.
SECTION 3.10. Section 2305.0051(a), Occupations Code, is
amended to read as follows:
(a) The owner of a garage or repair shop that sells or
transfers to any person, including a metal recycling entity
registered under Chapter 1956, a catalytic converter that was [the
person] removed in connection with a motor vehicle repair shall
maintain a record of all repairs for the vehicle that includes:
(1) the name and address of the vehicle's owner; [and]
(2) the vehicle identification number of the vehicle;
and
(3) copies of all related invoices including, as
applicable, a notation that a catalytic converter was removed from
the vehicle.
SECTION 3.11. Section 2305.101(c), Occupations Code, is
amended to read as follows:
(c) An offense under this chapter that consists of the
violation of Section 2305.0041, 2305.0051, or 2305.007 is a Class A
misdemeanor.
SECTION 3.12. Chapter 2305, Occupations Code, is amended by
adding Subchapter D to read as follows:
SUBCHAPTER D. RECORDS OF CERTAIN SALES OR TRANSFERS OF CATALYTIC
CONVERTERS REMOVED FROM MOTOR VEHICLES
Sec. 2305.151. DEFINITION. In this subchapter, "catalytic
converter" has the meaning assigned by Section 1956.001.
Sec. 2305.152. APPLICABILITY. This subchapter applies only
to a person described by Section 1956.123(1)(A) through (G).
Sec. 2305.153. RECORD REQUIRED. (a) A person to whom this
subchapter applies shall, for each transaction in which the person
sells or transfers to another person a catalytic converter that is
removed from a motor vehicle, maintain an accurate record of the
transaction until the second anniversary of the date of the
transaction.
(b) A record is sufficient to meet the requirements of
Subsection (a) if it contains:
(1) a description made in accordance with the custom
of the trade for the volume of catalytic converters sold or
transferred;
(2) the name of the person to whom the catalytic
converters were sold or transferred; and
(3) the date of the transaction.
(c) A record containing the information described by
Subsection (b) that is maintained in accordance with other law or as
a routine business practice satisfies the requirements of
Subsection (a).
Sec. 2305.154. OFFENSE: FAILURE TO MAINTAIN RECORD. (a) A
person commits an offense if the person intentionally or knowingly
fails to maintain a record as required by Section 2305.153.
(b) An offense under this section is a Class A misdemeanor.
(c) If conduct that constitutes an offense under this
section also constitutes an offense under another provision of this
chapter, the person may be prosecuted only under this section.
Sec. 2305.155. INSPECTION OF CERTAIN RECORDS. (a) In this
section, "licensing authority" and "occupational license" have the
meanings assigned by Section 58.001.
(b) If an occupational license is required for a person to
engage in a business or occupation described by Section
1956.123(1)(A) through (G), the licensing authority that issues the
occupational license may at a reasonable time:
(1) enter the premises at which the person engages in
the regulated business or occupation; and
(2) inspect the records or information required to be
maintained under Section 2305.153.
(c) Regardless of whether an occupational license is
required, an officer of the Department of Public Safety or another
peace officer may enter the premises of and inspect the records of a
person described by Section 1956.123(1)(A) through (G), as provided
by Subsection (b).
SECTION 3.13. Section 1006.001(2), Transportation Code, is
amended to read as follows:
(2) "Economic motor vehicle theft" means motor vehicle
burglary or theft, including theft of a catalytic converter
attached to a motor vehicle, committed for financial gain.
SECTION 3.14. Sections 1006.153(b) and (e), Transportation
Code, are amended to read as follows:
(b) An insurer shall pay to the authority a fee equal to $5
[$4] multiplied by the total number of motor vehicle years of
insurance for insurance policies delivered, issued for delivery, or
renewed by the insurer. The fee shall be paid not later than:
(1) March 1 of each year for a policy delivered,
issued, or renewed from July 1 through December 31 of the previous
calendar year; and
(2) August 1 of each year for a policy delivered,
issued, or renewed from January 1 through June 30 of that year.
(e) Out of each fee collected under Subsection (b), $1 shall
be deposited to the credit of the general revenue fund to be used
only for coordinated regulatory and law enforcement activities
intended to detect and prevent catalytic converter theft in this
state. The remainder of each fee collected under Subsection (b) and
any [or an] amount collected under Subsection (b-1) shall be
allocated as follows:
(1) 20 percent shall be appropriated to the authority
for the purposes of this chapter;
(2) 20 percent shall be deposited to the credit of the
general revenue fund, to be used only for criminal justice
purposes; and
(3) 60 percent shall be deposited to the credit of the
designated trauma facility and emergency medical services account
under Section 780.003, Health and Safety Code, to be used only for
the criminal justice purpose of funding designated trauma
facilities, county and regional emergency medical services, and
trauma care systems that provide trauma care and emergency medical
services to victims of accidents resulting from traffic offenses.
ARTICLE 4. TRANSITIONS
SECTION 4.01. The change in law made by this Act to Section
1956.017, Occupations Code, does not affect the entitlement of a
member serving on the advisory committee established under that
section immediately before the effective date of this Act to
continue to serve for the remainder of the member's term. As the
terms of members expire after the effective date of this Act, the
director of the Department of Public Safety shall appoint or
reappoint members who have the qualifications required by that
section.
SECTION 4.02. Not later than October 1, 2023, a metal
recycling entity registered under Chapter 1956, Occupations Code,
on the effective date of this Act shall submit a declaration
described by Section 1956.022(a)(3), as added by this Act, to the
Department of Public Safety.
SECTION 4.03. Section 1956.022(a), Occupations Code, as
amended by this Act, applies only to an application for a
certificate of registration submitted on or after January 1, 2024.
An application submitted before January 1, 2024, is governed by the
law in effect immediately before the effective date of this Act, and
the former law is continued in effect for that purpose.
SECTION 4.04. As soon as practicable after the effective
date of this Act, the Department of Public Safety shall adopt rules
necessary to implement the changes in law made by this Act to
Chapter 1956, Occupations Code.
SECTION 4.05. The changes in law made by this Act to
Sections 28.03, 31.03, and 71.02, Penal Code, apply only to an
offense committed on or after the effective date of this Act. An
offense committed before the effective date of this Act is governed
by the law in effect on the date the offense was committed, and the
former law is continued in effect for that purpose. For purposes
of this section, an offense was committed before the effective date
of this Act if any element of the offense occurred before that date.
SECTION 4.06. Section 1006.153, Transportation Code, as
amended by this Act, applies only to a fee due on or after the
effective date of this Act. A fee due before the effective date of
this Act is governed by the law in effect on the date the fee was
due, and the former law is continued in effect for that purpose.
ARTICLE 5. COORDINATION OF STATE AGENCIES TO DETECT AND PREVENT
THEFT OF CATALYTIC CONVERTERS
SECTION 5.01. (a) In this section, "authority" means the
Motor Vehicle Crime Prevention Authority.
(b) Not later than January 1, 2024, the authority shall
develop and implement a plan to coordinate efforts with the
Department of Public Safety, the Texas Department of Licensing and
Regulation, and the Texas Department of Motor Vehicles to:
(1) review the records of persons regulated by each
agency involving the purchase, acquisition, sale, or transfer of
catalytic converters removed from motor vehicles; and
(2) respond to suspicious activities that may be
detected through the analysis of the records described by
Subdivision (1) of this subsection.
(c) The authority may establish a task force composed of
persons regulated by the agencies listed in Subsection (b) of this
section who have substantial business experience in transactions
involving catalytic converters. The authority shall develop the
plan described by Subsection (b) of this section with the
participation of the task force, if established.
(d) Except as provided by Subsection (c) of this section,
the authority may appoint members to the task force as the authority
determines appropriate.
(e) In developing and implementing the plan described by
Subsection (b) of this section, the authority shall focus on:
(1) protecting each step in the legitimate stream of
commerce that begins with the removal of a catalytic converter from
a motor vehicle and includes recycling those catalytic converters
to ensure that the persons regulated by the agencies listed in
Subsection (b) of this section are not the means for inserting
stolen catalytic converters into the stream of commerce; and
(2) providing risk-based targeting and random
auditing of the records of the persons regulated by the agencies
listed in Subsection (b) of this section.
(f) The money deposited to the credit of the general revenue
fund for coordinated regulatory and law enforcement activities
intended to detect and prevent catalytic converter theft in this
state as described by Section 1006.153(e), Transportation Code, as
amended by this Act, may be appropriated to the authority for the
activities required by this section.
ARTICLE 6. EFFECTIVE DATE
SECTION 6.01. (a) This Act takes effect immediately if it
receives a vote of two-thirds of all the members elected to each
house, as provided by Section 39, Article III, Texas Constitution.
If this Act does not receive the vote necessary for immediate
effect, this Act takes effect September 1, 2023.
(b) Sections 1956.001(6-b) and (7), Occupations Code, as
amended by this Act, and Section 1956.030, Occupations Code, as
added by this Act, take effect July 1, 2023.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 224 passed the Senate on
April 3, 2023, by the following vote: Yeas 30, Nays 0.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 224 passed the House on
May 16, 2023, by the following vote: Yeas 142, Nays 0,
one present not voting.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor