By: West S.B. No. 208
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the regulation of metal recycling entities; providing
  an administrative penalty; creating a criminal offense.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 1956.001, Occupations Code, is amended
  by amending Subdivision (6-a) and adding Subdivision (6-b) to read
  as follows:
               (6-a)  "Explosive device" means a device or material
  that contains explosive powder, primer, fluid, or gas or a
  detonator. The term does not include:
                     (A)  a device that is designed, made, or adapted
  for delivering or shooting ammunition of .50 caliber or less and
  that is purchased for personal or security reasons recognized under
  state or federal law;
                     (B)  a component of a motor vehicle or mechanical
  equipment, including equipment that is used in the exploration or
  production of minerals;
                     (C)  any type of compressed cylinder that is
  commonly used in a residence or commercial business; or
                     (D)  any type of scrap metal that is routinely
  purchased in the metal recycling industry and that is not
  associated with military weaponry.
               (6-b)  "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.
         SECTION 2.  Section 1956.003(c), Occupations Code, is
  amended to read as follows:
         (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, including inspection reports
  for the business, information regarding violations of this chapter
  by the business, and information regarding disciplinary actions
  initiated against the business.
         SECTION 3.  Section 1956.036, Occupations Code, is amended
  by adding Subsection (f) to read as follows:
         (f)  A metal recycling entity shall report to the department
  by telephone, by e-mail, or through the department's Internet
  website the entity's possession of an explosive device unknowingly
  purchased or otherwise obtained by the entity not later than the
  close of business on the entity's first working day after the date
  the possession of the device is discovered.  A metal recycling
  entity may also report to an appropriate law enforcement authority
  or the nearest military installation the possession of an explosive
  device that the entity unknowingly purchased or otherwise obtained
  so that the explosive device may be removed from the entity or
  disposed of as soon as possible.
         SECTION 4.  Section 1956.040, Occupations Code, is amended
  by adding Subsections (c-1), (c-2), (c-3), (c-4), (c-5), and (d-1)
  to read as follows:
         (c-1)  A person commits an offense if the person knowingly
  sells an explosive device to a metal recycling entity.
         (c-2)  A metal recycling entity commits an offense if the
  entity knowingly buys an explosive device.
         (c-3)  Except as provided by Subsection (c-5), an offense
  under Subsection (c-1) or (c-2) is a Class A misdemeanor.
         (c-4)  A metal recycling entity commits an offense if the
  entity knowingly stores or allows to be stored on the entity's
  premises an explosive device. Except as provided by Subsection
  (c-5), an offense under this subsection is a Class A misdemeanor.  
  For purposes of this subsection, a metal recycling entity is
  considered to store an explosive device on the entity's premises
  beginning not earlier than 72 hours after the time a person presents
  the explosive device to the entity for sale or an attempted sale and
  ending at the time the entity reports the presence of the explosive
  device on the entity's premises to the department. A metal
  recycling entity is not liable under this section for the time it
  takes for the department, a law enforcement agency, or a military
  installation to respond to the entity's report that the entity
  possesses an explosive device.
         (c-5)  An offense under Subsection (c-1), (c-2), or (c-4) is
  a felony of the second degree if it is shown at the trial of the
  offense that a person suffered death or serious bodily injury, as
  defined by Section 1.07, Penal Code, as a result of the detonation
  of an explosive device.
         (d-1)  On conviction of an offense under Subsection (c-1),
  (c-2), or (c-4), the court may order the defendant to make
  restitution to:
               (1)  the state or a political subdivision of the state
  for the costs incurred by the state or subdivision for responding to
  the offense and any removal, cleaning, sanitizing, demolition,
  reconstruction, or other treatment required as a result of the
  offense; and
               (2)  the owner of any property damaged as a result of
  the offense.
         SECTION 5.  Section 1956.041, Occupations Code, is amended
  by amending Subsections (a) and (b) and adding Subsections (b-1),
  (b-2), and (f) to read as follows:
         (a)  The commission, after notice and an opportunity for a
  hearing, may impose an administrative penalty on a person who:
               (1)  violates this subchapter or Subchapter A-2 or a
  rule or order of the commission under this chapter; or
               (2)  engages in conduct that would constitute an
  offense under Section 1956.040(c-2) or (c-4) [Section 1956.036].
         (b)  Except as provided by Subsection (b-1), the [The] amount
  of the administrative penalty may not exceed $1,000.  Each day a
  violation occurs or continues to occur is a separate violation for
  the purpose of imposing a penalty under this section.  In
  determining the amount of the administrative penalty under this
  section, the commission shall consider:
               (1)  the seriousness of the violation, including the
  nature, circumstances, extent, and gravity of the violation;
               (2)  the economic harm caused by the violation;
               (3)  the history of previous violations;
               (4)  the amount necessary to deter a future violation;
               (5)  efforts to correct the violation; and
               (6)  any other matter that justice may require.
         (b-1)  The amount of an administrative penalty for engaging
  in conduct described by Subsection (a)(2) or for a violation of
  Section 1956.036(f) may not exceed $1,000 for each violation. The
  aggregate penalty under this subsection for multiple violations may
  not exceed $10,000.
         (b-2)  The commission by rule shall adopt a standardized
  penalty schedule for a violation based on the criteria listed in
  Subsection (b).
         (f)  An administrative penalty collected under this section
  shall be deposited in a special account in the general revenue fund
  and may be appropriated only to the department.
         SECTION 6.  Section 1956.041, Occupations Code, as amended
  by this Act, applies only to a violation committed on or after the
  effective date of this Act.  A violation committed before the
  effective date of this Act is governed by the law in effect on the
  date the violation was committed, and the former law is continued in
  effect for that purpose.
         SECTION 7.  This Act takes effect September 1, 2017.