H.B. No. 2490

	AN ACT
	relating to the regulation of crafted precious metal dealers;
	providing criminal and administrative penalties.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Section 1956.051, Occupations Code, is amended
	to read as follows:
	Sec. 1956.051.  DEFINITIONS. In this subchapter:
	(1)  "Commission" means the Finance Commission of
	Texas.
	(2)  "Commissioner" means the consumer credit
	commissioner.
	(3)  "Crafted precious metal" means jewelry,
	silverware, an art object, or another object, made wholly or partly
	from precious metal, other than a coin, a bar, a [or] commemorative
	medallion, or scrap or a broken item selling at five percent or more
	than the scrap value of the item [made in whole or in part from
	precious metal].
	(4) [(2)]  "Dealer" means a person registered to engage
	[who engages] in the business of purchasing and selling crafted
	precious metal, including purchases or sales made through the mail.
	(5) [(3)]  "Department" means the Texas Department of
	Public Safety.
	(6) [(4)]  "Precious metal" means gold, silver,
	platinum, palladium, iridium, rhodium, osmium, ruthenium, or an
	alloy of those metals.
	SECTION 2.  Subchapter B, Chapter 1956, Occupations Code, is
	amended by adding Section 1956.0511 to read as follows:
	Sec. 1956.0511.  ADMINISTRATION BY COMMISSION.  (a)
	Notwithstanding any other provision of this chapter, the commission
	shall administer and enforce this subchapter, unless the context
	clearly requires another state agency to perform a specific duty.
	(b)  To the extent of any conflict between this subchapter
	and other provisions of this chapter, this subchapter prevails.
	SECTION 3.  Section 1956.060, Occupations Code, is amended
	to read as follows:
	Sec. 1956.060.  EXCEPTION: CRAFTED PRECIOUS METAL ACQUIRED
	BY PERSON LICENSED UNDER TEXAS PAWNSHOP ACT. This subchapter does
	not apply to crafted precious metal acquired by:
	(1)  a person licensed under Chapter 371, Finance Code;
	or
	(2)  an entity affiliated with a person licensed under
	Chapter 371, Finance Code, if the entity's recordkeeping practices
	satisfy the requirements of that chapter.
	SECTION 4.  Subchapter B, Chapter 1956, Occupations Code, is
	amended by adding Sections 1956.0611, 1956.0612, 1956.0613,
	1956.0614, and 1956.0615 to read as follows:
	Sec. 1956.0611.  RULEMAKING. The commission may adopt rules
	necessary to implement and enforce this subchapter.
	Sec. 1956.0612.  REGISTRATION AS DEALER. (a) A person may
	not engage in the business of purchasing and selling crafted
	precious metal unless the person is registered with the
	commissioner as a dealer under this section.
	(b)  To register as a dealer, a person must provide to the
	commissioner, on or before December 31 preceding each calendar year
	in which the person seeks to act as a dealer:
	(1)  a list of each location in this state at which the
	person will conduct business as a dealer; and
	(2)  a processing fee for each location included on the
	list furnished under Subdivision (1).
	(c)  The commissioner shall prescribe the processing fee in
	an amount necessary to cover the costs of administering this
	section.
	(d)  After the December 31 deadline, a dealer may amend the
	registration required under Subsection (a) to reflect any change in
	the information provided by the registration.
	(e)  The commissioner shall make available to the public a
	list of dealers registered under this section.
	(f)  The commissioner may prescribe the registration form.
	(g)  A reference to a registration in another subchapter of
	this chapter does not apply to a person to the extent the person is
	registered under this subchapter.
	Sec. 1956.0613.  INVESTIGATION BY COMMISSIONER. The
	commissioner shall:
	(1)  monitor the operations of a dealer to ensure
	compliance with this chapter; and
	(2)  receive and investigate complaints against a
	dealer or a person acting as a dealer.
	Sec. 1956.0614.  REVOCATION OF REGISTRATION. (a) The
	commissioner may revoke the registration of a dealer if the
	commissioner concludes that the dealer has violated this chapter.
	The commissioner shall recite the basis of the decision in an order
	revoking the registration.
	(b)  If the commissioner proposes to revoke a registration,
	the dealer is entitled to a hearing before the commissioner or a
	hearings officer, who shall propose a decision to the commissioner.
	The commissioner or hearings officer shall prescribe the time and
	place of the hearing. The hearing is governed by Chapter 2001,
	Government Code.
	(c)  A dealer aggrieved by a ruling, order, or decision of
	the commissioner is entitled to appeal to a district court in the
	county in which the hearing was held. An appeal under this
	subsection is governed by Chapter 2001, Government Code.
	Sec. 1956.0615.  ADMINISTRATIVE PENALTY. The commissioner
	may assess an administrative penalty not to exceed $500 against a
	person for each knowing and wilful violation of this chapter.
	SECTION 5.  Section 1956.063(c), Occupations Code, is
	amended to read as follows:
	(c)  For each transaction regulated by this subchapter, the
	[The] dealer shall submit a [the] report on a preprinted and
	prenumbered form prescribed by the commissioner [district attorney
	or person performing the duties of district attorney of the county
	in which the transaction occurs]. The form must include the
	following:
	(1)  the date of the transaction;
	(2)  a description of the crafted precious metal
	purchased by the dealer;
	(3)  the name and physical address of the dealer; and
	(4)  the name, physical description, and physical
	address of the seller or transferor.
	SECTION 6.  Section 1956.064, Occupations Code, is amended
	by amending Subsection (b) and adding Subsection (c) to read as
	follows:
	(b)  A peace officer who has reasonable suspicion to believe
	that an item of crafted precious metal in the possession of a dealer
	is stolen may place the item on hold for a period not to exceed 60
	days by issuing to the dealer a written notice that:
	(1)  specifically identifies the item alleged to be
	stolen and subject to the hold; and
	(2)  informs the dealer of the requirements of
	Subsection (c).
	(c)  On receiving the notice, the dealer may not melt,
	deface, alter, or dispose of the identified crafted precious metal
	until the hold is released in writing by a peace officer of this
	state or a court order. [A dealer who retains information under
	Subsection (a)(2) shall make that information available for
	inspection by any peace officer.]
	SECTION 7.  Section 1956.067(a), Occupations Code, is
	amended to read as follows:
	(a)  A dealer who conducts business at a temporary location
	for a period of less than one year [90 days] may not engage in the
	business of buying precious metal or used items made of precious
	metal unless, within a 12-month period at least 30 days before the
	date on which each purchase is made, the dealer [person] has filed:
	(1)  a registration statement with the department;
	[and]
	(2)  a copy of the registration statement and a copy of
	the dealer's certificate of registration issued under this
	subchapter with the local law enforcement agency of:
	(A)  the municipality in which the temporary
	location is located; or
	(B)  if the temporary location is not located in a
	municipality, the county in which the temporary location is
	located; and
	(3)  a copy of the dealer's certificate of registration
	issued under this subchapter with the county and, if applicable,
	the municipality in which the temporary location is located.
	SECTION 8.  Section 1956.069(a), Occupations Code, is
	amended to read as follows:
	(a)  A person [dealer] commits an offense if the person
	[dealer]:
	(1)  fails to make or permit inspection of a report as
	required by Section 1956.062 or 1956.063;
	(2)  violates [disposes of crafted precious metal or
	fails to make a record available for inspection by a peace officer
	as required by] Section 1956.0612 or 1956.064;
	(3)  fails to obtain or retain a statement as required
	by Section 1956.066;
	(4)  fails to file a registration statement as required
	by Section 1956.067; or
	(5)  purchases an object in violation of Section
	1956.068.
	SECTION 9.  The change in law made by this Act applies only
	to an offense committed on or after the effective date of this Act.
	An offense committed before the effective date of this Act is
	governed by the law in effect on the date the offense was committed,
	and the former law is continued in effect for that purpose. For
	purposes of this section, an offense was committed before the
	effective date of this Act if any element of the offense occurred
	before that date.
	SECTION 10.  Not later than December 1, 2011, the Finance
	Commission of Texas shall adopt rules to implement Subchapter B,
	Chapter 1956, Occupations Code, as amended by this Act.
	SECTION 11.  (a)  Except as provided by Subsection (b) of
	this section, this Act takes effect September 1, 2011.
	(b)  Section 1956.0612, Occupations Code, as added by this
	Act, and Sections 1956.067(a) and 1956.069(a), Occupations Code, as
	amended by this Act, take effect January 1, 2012.
	______________________________	______________________________
	President of the Senate	Speaker of the House
	I certify that H.B. No. 2490 was passed by the House on May 3,
	2011, by the following vote:  Yeas 135, Nays 9, 1 present, not
	voting; that the House refused to concur in Senate amendments to
	H.B. No. 2490 on May 25, 2011, and requested the appointment of a
	conference committee to consider the differences between the two
	houses; and that the House adopted the conference committee report
	on H.B. No. 2490 on May 28, 2011, by the following vote:  Yeas 146,
	Nays 0, 2 present, not voting.
	______________________________
	Chief Clerk of the House
	I certify that H.B. No. 2490 was passed by the Senate, with
	amendments, on May 23, 2011, by the following vote:  Yeas 30, Nays
	0; at the request of the House, the Senate appointed a conference
	committee to consider the differences between the two houses; and
	that the Senate adopted the conference committee report on H.B. No.
	2490 on May 29, 2011, by the following vote:  Yeas 31, Nays 0
	.
	______________________________
	Secretary of the Senate
	APPROVED: __________________
	Date
	__________________
	Governor