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  S.B. No. 1154
 
 
 
 
AN ACT
  relating to the registration and regulation of metal recycling
  entities; providing penalties.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  The heading to Chapter 1956, Occupations Code,
  is amended to read as follows:
  CHAPTER 1956.  [SALES TO METAL DEALERS AND]
  METAL RECYCLING ENTITIES
         SECTION 2.  Chapter 1956, Occupations Code, is amended by
  amending Subchapter A and adding Subchapters A-1, A-2, and A-3 to
  read as follows:
  SUBCHAPTER A.  GENERAL PROVISIONS [SALE OF ALUMINUM, BRONZE, OR
  COPPER OR BRASS MATERIAL TO SECONDHAND METAL DEALERS]
         Sec. 1956.001.  DEFINITIONS.  In this chapter [subchapter]:
               (1)  "Aluminum material" means a product made from
  aluminum, an aluminum alloy, or an aluminum by-product. The term
  includes aluminum wiring and an aluminum beer keg but does not
  include another type of aluminum can used to contain a food or
  beverage.
               (2)  "Bronze material" means:
                     (A)  a cemetery vase, receptacle, or memorial made
  from bronze;
                     (B)  bronze statuary; or
                     (C)  material readily identifiable as bronze,
  including bronze wiring.
               (3)  "Commission" means the Public Safety Commission.
               (4)  "Copper or brass material" means:
                     (A)  insulated or noninsulated copper wire or
  cable of the type used by a public utility or common carrier that
  contains copper or an alloy of copper or zinc [consists of at least
  50 percent copper]; [or]
                     (B)  a copper or brass item of a type commonly used
  in construction or by a public utility; or
                     (C)  copper pipe or copper tubing.
               (5) [(4)]  "Department" means the Texas Department of
  Public Safety.
               (6)  "Director" means the public safety director.
               (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).
               (8) [(5)]  "Personal identification document" means:
                     (A)  a valid driver's license issued by a state in
  the United States;
                     (B)  a United States military identification
  card; or
                     (C)  [a passport issued by the United States or by
  another country and recognized by the United States; or
                     [(D)]  a personal identification certificate
  issued by the department under Section 521.101, Transportation
  Code, or a corresponding card or certificate issued by another
  state.
               (9) [(6)]  "Regulated material" means:
                     (A)  aluminum material;
                     (B)  bronze material; [or]
                     (C)  copper or brass material; or
                     (D)  regulated metal.
               (10)  "Regulated metal" means:
                     (A)  manhole covers;
                     (B)  guardrails;
                     (C)  metal cylinders  designed to contain
  compressed air, oxygen, gases, or liquids;
                     (D)  beer kegs made from metal other than
  aluminum;
                     (E)  historical markers or cemetery vases,
  receptacles, or memorials made from metal other than aluminum;
                     (F)  unused rebar;
                     (G)  street signs;
                     (H)  drain gates;
                     (I)  safes;
                     (J)  communication, transmission, and service
  wire or cable;
                     (K)  condensing or evaporator coils for heating or
  air conditioning units;
                     (L)  utility structures, including the fixtures
  and hardware;
                     (M)  aluminum or stainless steel containers
  designed to hold propane for fueling forklifts; and
                     (N)  metal railroad equipment, including tie
  plates, signal houses, control boxes, signs, signals, traffic
  devices, traffic control devices, traffic control signals, switch
  plates, e-clips, and rail tie functions
               [(7)  "Secondhand metal dealer" means:
                     [(A)     an auto wrecker, a scrap metal processor, or
  another person or organization that purchases, collects, or
  solicits regulated material; or
                     [(B)     a person who operates or maintains a scrap
  metal yard or other place in which scrap metal or cast-off regulated
  material is collected or kept for shipment, sale, or transfer].
         Sec. 1956.002.  EXCEPTION.  This chapter [subchapter] does
  not apply to:
               (1)  a purchase of regulated material from a public
  utility or a manufacturing, industrial, [or other] commercial,
  retail, or other seller [vendor] that sells regulated material in
  the ordinary course of the seller's [vendor's] business;
               (2)  a purchase of regulated material by a manufacturer
  whose primary business is the manufacture of iron and steel
  products made from melting scrap iron and scrap steel; or
               (3)  the transport or hauling of recyclable materials
  to or from the metal recycling entity.
         Sec. 1956.003.  LOCAL LAW.  (a)  A county, municipality, or
  political subdivision of this state may adopt a rule, charter, or
  ordinance or issue an order or impose standards that are more
  stringent than but do not conflict with this chapter or rules
  adopted under this chapter.
         (b)  A county, municipality, or political subdivision of
  this state may issue a license or permit to a business to allow the
  business to act as a metal recycling entity in that county or
  municipality and may impose a fee not to exceed $250 for the
  issuance or renewal of the license or permit.
         (b-1)  A municipality or political subdivision of this
  state, other than a county, may not increase the local license or
  permit fee imposed on a metal recycling facility to an amount that
  exceeds 25 percent of the fee charged by the municipality or
  political subdivision on January 1, 2007. This subsection expires
  January 1, 2010.
         (c)  A county, municipality, or political subdivision of
  this state that issues a license or permit to a business as
  authorized under Subsection (b) shall submit to the department in
  the manner required by the department information on each business
  that is issued a license or permit.
         (d)  A municipality or political subdivision of this state,
  other than a county, may not increase the local license or permit
  fee imposed on a metal recycling facility unless the increase is
  approved by the local governing body.  A request for an increase in
  the local license or permit fee must be based on the costs
  associated with law enforcement and administration of the licensing
  or permitting program.  The municipality or political subdivision
  must submit a report to the department on the law enforcement and
  administrative costs associated with the fee increase.
         (e)  A county may increase the local license or permit fee
  imposed on a metal recycling facility one additional time before
  the second anniversary of the date of the initial fee increase. The
  fee increase must be based on the average cost charged by
  municipalities statewide.
  [Sections 1956.004-1956.010 reserved for expansion]
  SUBCHAPTER A-1.  POWERS AND DUTIES
         Sec. 1956.011.  ADMINISTRATION OF CHAPTER. The department
  shall administer this chapter.
         Sec. 1956.012.  DEPARTMENT STAFF. The department may employ
  administrative and clerical staff as necessary to carry out this
  chapter.
         Sec. 1956.013.  RULES.  The commission may adopt rules to
  administer this chapter, including rules:
               (1)  establishing minimum requirements for
  registration under this chapter; and
               (2)  adopting forms required by this chapter.
         Sec. 1956.014.  FEES; REPORTS. (a)  The commission by rule
  shall prescribe fees in reasonable amounts sufficient to cover the
  costs of administering this chapter, including fees for:
               (1)  an initial application for a certificate of
  registration;
               (2)  issuance of a certificate of registration;
               (3)  issuance of a renewal certificate of registration;
  and
               (4)  issuance of a duplicate certificate of
  registration or duplicate renewal certificate of registration.
         (b)  The commission may not impose a fee for issuance of a
  certificate of registration that exceeds $250 annually. The
  department shall report annually to the legislature, not later than
  December 1, any costs associated with administering this chapter
  that are not covered by the fees assessed under this chapter.
         (c)  The department annually shall submit to both houses of
  the legislature a report on the number of metal recycling entities
  who have complied with the registration requirements under this
  chapter and the total number of metal recycling entities identified
  statewide. The report must include the information on metal
  recycling entities submitted to the department by municipalities,
  counties, and other political subdivisions of this state.
         (d)  Not later than March 1, 2008, the department shall
  submit to both houses of the legislature a report on the actual
  costs incurred by the department in administering this chapter.
  This subsection expires January 1, 2009.
         Sec. 1956.015.  STATEWIDE ELECTRONIC REPORTING SYSTEM.  
  (a)  The department shall establish a statewide electronic
  reporting system to track the sales of regulated metal reported to
  the department under Section 1956.036.
         (b)  The department shall post a summary of the reports
  provided to the department under Section 1956.036 on the
  department's Internet website. The summary must include by county
  or region the frequency with which a person presents regulated
  materials for sale to a metal recycling entity.  The summary may not
  identify any person to which the metal recycling entity sells the
  regulated materials.
         (c)  Subsection (b) does not apply to regulated material sold
  by a utility company, municipality, manufacturer, railroad,
  cemetery, cable or satellite entity, or other business entity that
  routinely has access to regulated metal.
         (d)  The department shall maintain the confidentiality of
  information provided under this section that relates to the
  financial condition or business affairs of a metal recycling entity
  or that is otherwise commercially sensitive. The confidential
  information is not subject to disclosure under Chapter 552,
  Government Code.
  [Sections 1956.016-1956.020 reserved for expansion]
  SUBCHAPTER A-2.  CERTIFICATE OF REGISTRATION
         Sec. 1956.021.  REGISTRATION REQUIRED. A person may not act
  as a metal recycling entity or represent to the public that the
  person is a metal recycling entity unless the person is registered
  under this chapter.
         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.
         (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.
         Sec. 1956.023.  TERM OF CERTIFICATE. (a)  A certificate of
  registration is valid for two years after the date of issuance.
         (b)  The department shall adopt a system under which
  certificates of registration expire and are renewed on various
  dates.
         (c)  Not later than the 45th day before the date a person's
  certificate of registration is scheduled to expire, the department
  shall send written notice of the impending expiration to the person
  at the person's last known address according to the records of the
  department.
         (d)  A person whose certificate of registration has expired
  may not make a representation for which a certificate of
  registration is required under Section 1956.021 or perform
  collections services until the certificate has been renewed.
         Sec. 1956.024.  RENEWAL OF CERTIFICATE. (a)  To renew a
  certificate of registration, a person must submit an application
  for renewal in the manner prescribed by the department.
         (b)  A person who is otherwise eligible to renew a
  certificate of registration may renew an unexpired certificate by
  paying the required renewal fee to the department before the
  expiration date of the certificate.
         (c)  A person whose certificate of registration has been
  expired for 90 days or less may renew the certificate by paying to
  the department a renewal fee that is equal to 1-1/2 times the
  normally required renewal fee.
         (d)  A person whose certificate of registration has been
  expired for more than 90 days but less than one year may renew the
  certificate by paying to the department a renewal fee that is equal
  to two times the normally required renewal fee.
         (e)  A person whose certificate of registration has been
  expired for one year or more may not renew the certificate. The
  person may obtain a new certificate of registration by complying
  with the requirements and procedures, including the examination
  requirements, for an original certificate.
  [Sections 1956.025-1956.030 reserved for expansion]
  SUBCHAPTER A-3.  PRACTICE BY CERTIFICATE HOLDERS
         Sec. 1956.031 [1956.003].  NOTICE TO SELLERS. (a)  A metal
  recycling entity [secondhand metal dealer] shall at all times
  maintain in a prominent place in the entity's [dealer's] place of
  business, in open view to a seller of regulated material, a notice
  in two-inch lettering that:
               (1)  includes the following language:
         "A PERSON ATTEMPTING TO SELL ANY REGULATED MATERIAL MUST
  PRESENT SUFFICIENT IDENTIFICATION AND WRITTEN PROOF OF OWNERSHIP
  REQUIRED BY STATE LAW."
         "WARNING: STATE LAW PROVIDES A CRIMINAL PENALTY FOR A PERSON
  WHO INTENTIONALLY PROVIDES A FALSE DOCUMENT OF IDENTIFICATION OR
  OTHER FALSE INFORMATION TO A METAL RECYCLING ENTITY [SECONDHAND
  METAL DEALER] WHILE ATTEMPTING TO SELL ANY REGULATED MATERIAL.";
  and
               (2)  states the metal recycling entity's [secondhand
  metal dealer's] usual business hours.
         (b)  The notice required by this section may be contained on
  a sign that contains another notice if the metal recycling entity 
  [secondhand metal dealer] is required to display another notice
  under applicable law.
         Sec. 1956.032 [1956.004].  INFORMATION PROVIDED BY SELLER.
  (a)  Except as provided by Subsection (f), a [A] person attempting
  to sell regulated material to a metal recycling entity [secondhand
  metal dealer] shall:
               (1)  display to the metal recycling entity [secondhand
  metal dealer] the person's personal identification document [or
  sign a statement that the person does not possess such a document];
  [and]
               (2)  provide to the metal recycling entity the make,
  model, and license plate number of the motor vehicle used to
  transport the regulated material; and
               (3)  either:
                     (A)  present written documentation evidencing
  that the person is the legal owner or is lawfully entitled to sell
  the regulated material; or
                     (B)  sign a written statement provided by the
  metal recycling entity [secondhand metal dealer] that the person is
  the legal owner of or is lawfully entitled to sell the regulated
  material offered for sale.
         (b)  A person required by a municipality to prepare a signed
  statement consisting of the information required by Subsection
  (a)(3) [(a)(1) or (2)] may use the statement required by the
  municipality to comply with Subsection (a)(3) [(a)(1) or (2)].
         (c)  The metal recycling entity [secondhand metal dealer] or
  the entity's [dealer's] agent shall visually verify the accuracy of
  the identification presented by the seller at the time of the
  purchase of regulated material and make a copy of the
  identification to be maintained by the entity in the entity's
  records, except as otherwise provided by Subsection (f).
         (d)  The metal recycling entity or the entity's agent for
  recordkeeping purposes may photograph the seller's entire face, not
  including any hat, and obtain the name of the seller's employer.
         (e)  The metal recycling entity or the entity's agent for
  recordkeeping purposes may take a photograph of the motor vehicle
  of the seller in which the make, model, and license plate number of
  the motor vehicle are identifiable in lieu of the information
  required under Subsection (a)(3).
         (f)  The metal recycling entity is not required to make a
  copy of the identification as required under Subsection (c) or
  collect the information required under Subsection (a)(3) if:
               (1)  the seller signs the written statement as required
  under Subsection (a)(3);
               (2)  the seller has previously provided the information
  required under Subsection (a); and
               (3)  the previously provided information has not
  changed.
         Sec. 1956.033 [1956.005].  RECORD OF PURCHASE. (a)  Each
  metal recycling entity [A secondhand metal dealer] in this state
  shall keep an accurate electronic record or an accurate and legible
  written record of each purchase made in the course of the entity's
  [dealer's] business from an individual of:
               (1)  copper or brass material [in excess of 50 pounds];
               (2)  bronze material; [or]
               (3)  aluminum material; or
               (4)  regulated metal [in excess of 40 pounds].
         (b)  The record must be in English and include:
               (1)  the place and date of the purchase;
               (2)  the name and address of each individual from whom
  the regulated material is purchased or obtained;
               (3)  the identifying number of the seller's personal
  identification document;
               (4)  a description made in accordance with the custom
  of the trade of the type and quantity of regulated material
  purchased; and
               (5)  the information [statement] required by Section
  1956.032(a)(3) [1956.004(a)(2)].
         Sec. 1956.034 [1956.006].  PRESERVATION OF RECORDS. A metal
  recycling entity [secondhand metal dealer] shall preserve each
  record required by Sections 1956.032 and 1956.033 [Section
  1956.005] until the third anniversary of the date the record was
  made.
         Sec. 1956.035 [1956.007].  INSPECTION OF RECORDS BY PEACE
  OFFICER. (a)  On request, a metal recycling entity [secondhand
  metal dealer] shall permit a peace officer of this state to inspect,
  during the entity's [dealer's] usual business hours:
               (1)  a record required by Section 1956.033 [1956.005];
  or
               (2)  regulated material in the entity's [dealer's]
  possession.
         (b)  The inspecting officer shall inform the entity [dealer]
  of the officer's status as a peace officer.
         Sec. 1956.036 [1956.008].  FURNISHING OF REPORT TO
  DEPARTMENT. (a)  Except as provided by Subsection (b), not later
  than the seventh day after the date of the purchase or other
  acquisition of material for which a record is required under
  Section 1956.033 [1956.005], a metal recycling entity [secondhand
  metal dealer] shall send by facsimile or electronic mail to or file
  with the department a report containing the information required to
  be recorded under that section.
         (b)  If a metal recycling entity [secondhand metal dealer]
  purchases bronze material that is a cemetery vase, receptacle,
  memorial, or statuary or a pipe that can reasonably be identified as
  aluminum irrigation pipe, the entity [dealer] shall:
               (1)  not later than the close of business on the
  entity's [dealer's] first working day after the purchase date,
  [orally] notify the department; and
               (2)  not later than the fifth day after the purchase
  date, mail to or file with the department a report containing the
  information required to be recorded under Section 1956.033
  [1956.005].
         (c)  Subsection (b) does not apply to a purchase from:
               (1)  the manufacturer or fabricator of the material or
  pipe;
               (2)  a seller bearing a bill of sale for the material or
  pipe; or
               (3)  the owner of the material or pipe.
         Sec. 1956.037 [1956.009].  PLACEMENT OF ITEMS ON HOLD.
  (a)  A metal recycling entity may not dispose of, process, sell, or
  remove from the premises an item of regulated metal unless:
               (1)  the entity acquired the item more than 72 hours,
  excluding weekends and holidays, before the disposal, processing,
  sale, or removal; or
               (2)  the entity purchased the item from a
  manufacturing, industrial, commercial, retail, or other seller
  that sells regulated material in the ordinary course of its
  business.
         (b)  A peace officer who has reasonable suspicion to believe
  that an item of regulated material in the possession of a metal
  recycling entity [secondhand metal dealer] is stolen may place the
  item on hold by issuing to the entity [dealer] a written notice
  that:
               (1)  specifically identifies the item alleged to be
  stolen and subject to the hold; and
               (2)  informs the entity [dealer] of the requirements of
  Subsection (c) [(b)].
         (c) [(b)]  On receiving the notice, the entity [dealer] may
  not, except as provided by Subsection (e), process or remove from
  the entity's [dealer's] premises the identified item before the
  60th [11th] day after the date the notice is issued unless the hold
  is released at an earlier time in writing by a peace officer of this
  state or a court order.
         (d) [(c)]  After the holding period expires, the entity 
  [dealer] may dispose of the item unless disposition violates a
  court order.
         (e)  If a hold is placed on a purchase of regulated material,
  a metal recycling entity may not dispose of, process, sell, or
  remove from the premises any item from the purchased material
  unless the hold on the material is released.
         Sec. 1956.038 [1956.010].  PROHIBITED ACTS. A person may
  not, with the intent to deceive:
               (1)  display to a metal recycling entity [secondhand
  metal dealer] a false or invalid personal identification document
  in connection with the person's attempted sale of regulated
  material; [or]
               (2)  make a false, material statement or representation
  to a metal recycling entity [secondhand metal dealer] in connection
  with:
                     (A)  that person's execution of a written
  statement required by Section 1956.032(a)(3) [1956.004(a)(1) or
  (2)]; or
                     (B)  the entity's [dealer's] efforts to obtain the
  information required under Section 1956.033(b); or
               (3)  display or provide to a metal recycling entity any
  information required under Section 1956.032 that the person knows
  is false or invalid [1956.005(b)].
         Sec. 1956.039.  HOURS FOR PURCHASING MATERIAL.  (a)  Subject
  to Subsection (b), a county, municipality, or political subdivision
  may establish the hours during which a metal recycling entity may
  purchase regulated material.
         (b)  A metal recycling entity may not purchase from the
  general public regulated material:
               (1)  more than 15 consecutive hours in one day; or
               (2)  later than 9 p.m.
         Sec. 1956.040 [1956.011].  CRIMINAL PENALTY. (a)  A person
  commits an offense if the person knowingly violates Section
  1956.038 [this subchapter].
         An [(b)  Except as provided by Subsection (c), an] offense
  under this subsection [section] is a Class A [B] misdemeanor unless
  it is shown on trial of the offense that[.
         [(c)     An offense under this section is a Class A misdemeanor
  if] the person has previously been convicted of a violation of this
  subchapter, in which event the offense is a state jail felony
  [within the 36 months preceding the date of the offense].
         (b)  A person commits an offense if the person knowingly buys
  stolen regulated material. An offense under this subsection is a
  Class A misdemeanor unless it is shown on trial of the offense that
  the person has previously been convicted under this subsection, in
  which event the offense is a state jail felony.
         (c)  A person commits an offense if the person knowingly
  sells stolen regulated material. An offense under this subsection
  is a state jail felony unless it is shown on trial of the offense
  that the person has previously been convicted under this
  subsection, in which event the offense is a third degree felony.
         (d)  On the conviction of a metal recycling entity 
  [secondhand metal dealer] for an offense punishable under
  Subsection (b) [(c)], a court, in addition to imposing any other
  applicable penalty, may order that the entity [dealer] cease doing
  business as a metal recycling entity [secondhand metal dealer] for
  a period not to exceed:
               (1)  30 days from the date of the order for each
  violation that forms the basis of the conviction for a first
  offense; and
               (2)  180 days from the date of the order for each
  violation that forms the basis of the conviction if it is shown on
  trial of the offense that the person has previously been convicted
  under this section.
         (e)  If conduct that constitutes an offense under this
  section also constitutes an offense under any other law, the actor
  may be prosecuted under this section or the other law.
         SECTION 3.  The heading to Subchapter C, Chapter 1956,
  Occupations Code, is amended to read as follows:
  SUBCHAPTER C.  RESTRICTIONS ON SALE OF CERTAIN ITEMS TO METAL
  RECYCLING ENTITIES
         SECTION 4.  Chapter 1956, Occupations Code, is amended by
  adding Subchapters D and E to read as follows:
  SUBCHAPTER D.  DISCIPLINARY PROCEDURES
         Sec. 1956.151.  DENIAL OF CERTIFICATE; DISCIPLINARY ACTION.
  The department shall deny an application for a certificate of
  registration, suspend or revoke a certificate of registration, or
  reprimand a person who is registered under this chapter if the
  person:
               (1)  obtains a certificate of registration by means of
  fraud, misrepresentation, or concealment of a material fact;
               (2)  sells, barters, or offers to sell or barter a
  certificate of registration;
               (3)  violates a rule adopted under this chapter; or
               (4)  violates Section 1956.021.
         Sec. 1956.152.  INVESTIGATION. Within the limits of
  available resources, the department may investigate:
               (1)  a person who engages in a practice that violates
  this chapter; and
               (2)  a complaint filed with the department against a
  person registered under this chapter.
         Sec. 1956.153.  HEARING. (a)  A person whose application
  for a certificate of registration is denied, whose certificate of
  registration is suspended or revoked, or who is reprimanded is
  entitled to a hearing before the department if the person submits to
  the department a written request for the hearing.
         (b)  A hearing is governed by department rules for a
  contested hearing and by Chapter 2001, Government Code.
  [Sections 1956.154-1956.200 reserved for expansion]
  SUBCHAPTER E.  OTHER PENALTIES AND ENFORCEMENT PROVISIONS
         Sec. 1956.201.  ENFORCEMENT PROCEEDINGS; INJUNCTION.
  (a)  The department, the attorney general, or the district, county,
  or city attorney for the county or municipality in which an alleged
  violation of this chapter occurs may, on receipt of a verified
  complaint, bring an appropriate administrative or judicial
  proceeding to enforce this chapter or a rule adopted under this
  chapter.
         (b)  The attorney general or an attorney representing the
  state may initiate an action for an injunction to prohibit a person
  from violating this chapter or a rule adopted under this chapter.
         Sec. 1956.202.  CIVIL PENALTY. (a)  Except as provided by
  Subsection (d), a person who violates this chapter or a rule adopted
  under this chapter is liable to this state for a civil penalty of
  not more than $1,000 for each violation.
         (b)  The amount of the penalty shall be based on:
               (1)  the seriousness of the violation;
               (2)  the history of previous violations;
               (3)  the amount necessary to deter a future violation;
  and
               (4)  any other matter that justice may require.
         (c)  The attorney general may sue to collect a civil penalty
  under this section.  In the suit the attorney general may recover,
  on behalf of the state, the reasonable expenses incurred in
  obtaining the penalty, including investigation and court costs,
  reasonable attorney's fees, witness fees, and other expenses.
         (d)  A civil penalty may not be assessed under this section
  for conduct described by Section 1956.038.
         Sec. 1956.203.  CRIMINAL PENALTY FOR CERTAIN SOLICITATION.  
  (a)  A person commits an offense if the person solicits the
  purchase of regulated material at a location other than a business
  location at which the material is produced as a by-product in the
  ordinary course of that business.
         (b)  An offense under this section is a Class B misdemeanor.
         SECTION 5.  Subdivision (1), Section 1956.101, Occupations
  Code, is repealed.
         SECTION 6.  (a)  Not later than January 1, 2008, the Public
  Safety Commission shall adopt the rules necessary to implement the
  changes in law made by this Act to Chapter 1956, Occupations Code.
         (b)  Not later than April 1, 2008, the Department of Public
  Safety of the State of Texas shall establish the statewide
  reporting system to track the sales of regulated metal as required
  under Chapter 1956, Occupations Code, as amended by this Act.
         SECTION 7.  Notwithstanding Section 1956.021, Occupations
  Code, as added by this Act, a person is not required to hold a
  certificate of registration as a metal recycling entity under
  Chapter 1956, Occupations Code, as amended by this Act, before
  April 1, 2008.
         SECTION 8.  The change in law made by this Act applies only
  to an offense committed on or after the effective date of this Act.  
  An offense committed before that date is governed by the law in
  effect when 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 was committed before that date.
         SECTION 9.  This Act takes effect September 1, 2007.
 
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 1154 passed the Senate on
  April 12, 2007, by the following vote:  Yeas 31, Nays 0;
  May 24, 2007, Senate refused to concur in House amendments and
  requested appointment of Conference Committee; May 25, 2007, House
  granted request of the Senate; May 26, 2007, Senate adopted
  Conference Committee Report by the following vote:  Yeas 30,
  Nays 0.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 1154 passed the House, with
  amendments, on May 17, 2007, by the following vote:  Yeas 143,
  Nays 0, three present not voting; May 25, 2007, House granted
  request of the Senate for appointment of Conference Committee;
  May 27, 2007, House adopted Conference Committee Report by the
  following vote:  Yeas 144, Nays 0, three present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
             Date
 
 
  ______________________________ 
            Governor