OCCUPATIONS CODE

TITLE 12. PRACTICES AND TRADES RELATED TO WATER, HEALTH, AND SAFETY

SUBTITLE B. PRACTICES RELATED TO HEALTH AND SAFETY

CHAPTER 1956. METAL RECYCLING ENTITIES

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1956.001.DEFINITIONS. In this chapter:

(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)a power inverter or insulated or noninsulated copper wire or cable that contains copper or an alloy of copper or zinc and is of the type used by:

(i)a public utility or common carrier;

(ii)a telecommunications provider as defined by Section 51.002, Utilities Code;

(iii)a cable service provider as defined by Section 66.002, Utilities Code; or

(iv)a video service provider as defined by Section 66.002, Utilities Code;

(B)a copper or brass item of a type commonly used in construction or by:

(i)a public utility;

(ii)a telecommunications provider as defined by Section 51.002, Utilities Code;

(iii)a cable service provider as defined by Section 66.002, Utilities Code; or

(iv)a video service provider as defined by Section 66.002, Utilities Code; or

(C)copper pipe or copper tubing.

(5)"Department" means the Texas Department of Public Safety.

(6)"Director" means the public safety director.

(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.

(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)"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 personal identification certificate issued by the department under Section 521.101, Transportation Code, or a corresponding card or certificate issued by another state.

(9)"Regulated material" means:

(A)aluminum material;

(B)bronze material;

(C)copper or brass material;

(D)lead material; or

(E)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 central 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;

(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;

(O)catalytic converters not attached to a vehicle;

(P)fire hydrants;

(Q)metal bleachers or other seating facilities used in recreational areas or sporting arenas;

(R)any metal item clearly and conspicuously marked with any form of the name, initials, or logo of a governmental entity, utility, cemetery, or railroad;

(S)insulated utility, communications, or electrical wire that has been burned in whole or in part to remove the insulation;

(T)backflow valves;

(U)metal in the form of commonly recognized products of the industrial metals recycling process, including bales, briquettes, billets, sows, ingots, pucks, and chopped or shredded metals; and

(V)commercial grade lead batteries or lead-acid batteries.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 4, eff. June 1, 2003.

Amended by:

Acts 2007, 80th Leg., R.S., Ch. 1316 (S.B. 1154), Sec. 2, eff. September 1, 2007.

Acts 2011, 82nd Leg., R.S., Ch. 1234 (S.B. 694), Sec. 1, eff. September 1, 2011.

Acts 2015, 84th Leg., R.S., Ch. 1065 (H.B. 2187), Sec. 1, eff. September 1, 2015.

Acts 2017, 85th Leg., R.S., Ch. 191 (S.B. 208), Sec. 1, eff. September 1, 2017.

Sec. 1956.002.EXCEPTION.This chapter does not apply to:

(1)a purchase of regulated material from a public utility, a telecommunications provider as defined by Section 51.002, Utilities Code, a cable service provider as defined by Section 66.002, Utilities Code, a video service provider as defined by Section 66.002, Utilities Code, or a manufacturing, industrial, commercial, retail, or other seller that sells regulated material in the ordinary course of the seller'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.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 4, eff. June 1, 2003.

Amended by:

Acts 2007, 80th Leg., R.S., Ch. 1316 (S.B. 1154), Sec. 2, eff. September 1, 2007.

Acts 2015, 84th Leg., R.S., Ch. 1065 (H.B. 2187), Sec. 2, eff. September 1, 2015.

Sec. 1956.003.LOCAL LAW; CRIMINAL PENALTY. (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.

(a-1)A county, municipality, or other political subdivision may require the record of purchase described under Section 1956.033 to contain a clear and legible thumbprint of a seller of regulated material.

(a-2)A county, municipality, or other political subdivision that, as authorized under Subsection (a), requires a metal recycling entity to report to the county, municipality, or political subdivision information relating to a sale of regulated material shall:

(1)include in any contract entered into by the county, municipality, or political subdivision relating to the reporting of the information a provision that:

(A)requires any contractor, subcontractor, or third party that has access to, comes into possession of, or otherwise obtains information relating to a sale of regulated material to maintain the confidentiality of all information received, including the name of the seller, the price paid for a purchase of regulated material, and the quantity of regulated material purchased; and

(B)allows the county, municipality, or political subdivision to terminate the contract of any contractor, subcontractor, or third party that violates the confidentiality provision required by Paragraph (A); and

(2)investigate a complaint alleging that a contractor, subcontractor, or third party has failed to maintain the confidentiality of information relating to a sale of regulated material.

(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.

(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.

(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.

(f)A person commits an offense if the person owns or operates a metal recycling entity and does not hold a license or permit required by a county, municipality, or other political subdivision as authorized under Subsection (b).An offense under this subsection is a Class B misdemeanor unless it is shown on the trial of the offense that the person has been previously convicted under this subsection, in which event the offense is a Class A misdemeanor.

(g)Notwithstanding any other law, a county, municipality, or other political subdivision must provide a minimum 30-day notice followed by a public hearing prior to enacting a prohibition on the sale or use of a recyclable product.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 4, eff. June 1, 2003.

Amended by:

Acts 2007, 80th Leg., R.S., Ch. 1316 (S.B. 1154), Sec. 2, eff. September 1, 2007.

Acts 2011, 82nd Leg., R.S., Ch. 1234 (S.B. 694), Sec. 2, eff. September 1, 2011.

Acts 2011, 82nd Leg., R.S., Ch. 1234 (S.B. 694), Sec. 3, eff. September 1, 2011.

Acts 2011, 82nd Leg., R.S., Ch. 1234 (S.B. 694), Sec. 3, eff. March 1, 2012.

Acts 2017, 85th Leg., R.S., Ch. 191 (S.B. 208), Sec. 2, eff. September 1, 2017.

Sec. 1956.004.CIVIL PENALTY. (a)A person who owns or operates a metal recycling entity and does not hold a license or permit required by a county, municipality, or other political subdivision as authorized under Section 1956.003(b) is subject to a civil penalty of not more than $1,000 for each violation.In determining the amount of the civil penalty, the court shall consider:

(1)any other violations by the person; and

(2)the amount necessary to deter future violations.

(b)A district attorney, county attorney, or municipal attorney may institute an action to collect the civil penalty provided by this section.

(c)Each day a violation occurs or continues to occur is a separate violation.

(d)The district attorney, county attorney, or municipal attorney may recover reasonable expenses incurred in obtaining a civil penalty under this section, including court costs, reasonable attorney's fees, investigative costs, witness fees, and deposition expenses.

Added by Acts 2011, 82nd Leg., R.S., Ch. 1234 (S.B. 694), Sec. 4, eff. March 1, 2012.

SUBCHAPTER A-1. POWERS AND DUTIES

Sec. 1956.011.ADMINISTRATION OF CHAPTER. The department shall administer this chapter.

Added by Acts 2007, 80th Leg., R.S., Ch. 1316 (S.B. 1154), Sec. 2, eff. September 1, 2007.

Sec. 1956.012.DEPARTMENT STAFF. The department may employ administrative and clerical staff as necessary to carry out this chapter.

Added by Acts 2007, 80th Leg., R.S., Ch. 1316 (S.B. 1154), Sec. 2, eff. September 1, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch. 1316 (S.B. 1154), Sec. 2, eff. September 1, 2007.

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) Expired.

Added by Acts 2007, 80th Leg., R.S., Ch. 1316 (S.B. 1154), Sec. 2, eff. September 1, 2007.

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)Information provided under this section is not subject to disclosure under Chapter 552, Government Code.The department may use information provided under this section for law enforcement purposes.Except as provided by this subsection, the department shall maintain the confidentiality of all information provided under this section, including the name of the seller, the price paid for a purchase of regulated material, and the quantity of regulated material purchased.

(e)The department may enter into contracts relating to the operation of the statewide electronic reporting system established by this section.A contract under this subsection must:

(1)require that any contractor, subcontractor, or third party that has access to, comes into possession of, or otherwise obtains information provided under this section maintain the confidentiality of all information provided under this section, including the name of the seller, the price paid for a purchase of regulated material, and the quantity of regulated material purchased; and

(2)provide that the department may terminate the contract of any contractor, subcontractor, or third party that violates the confidentiality provision required by Subdivision (1).

(f)The department shall investigate a complaint alleging that a contractor, subcontractor, or third party has failed to maintain the confidentiality of information relating to a sale of regulated material.

Added by Acts 2007, 80th Leg., R.S., Ch. 1316 (S.B. 1154), Sec. 2, eff. September 1, 2007.

Amended by:

Acts 2011, 82nd Leg., R.S., Ch. 1234 (S.B. 694), Sec. 5, eff. September 1, 2011.

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.

Added by Acts 2011, 82nd Leg., R.S., Ch. 1234 (S.B. 694), Sec. 6, eff. September 1, 2011.

Sec. 1956.017.ADVISORY COMMITTEE. (a)The department shall establish an advisory committee to advise the department on matters related to the department's regulation of metal recycling entities under this chapter.

(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;

(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.

(c)The director shall ensure that the members of the advisory committee reflect the diverse geographic regions of this state.

(d)The advisory committee shall elect a presiding officer from among its members to serve a two-year term.A member may serve more than one term as presiding officer.

(e)The advisory committee shall meet annually and at the call of the presiding officer or the director.

(f)An advisory committee member is not entitled to compensation or reimbursement of expenses.

(g)Chapter 2110, Government Code, does not apply to the size, composition, or duration of the advisory committee or to the appointment of the committee's presiding officer.

Added by Acts 2011, 82nd Leg., R.S., Ch. 1234 (S.B. 694), Sec. 6, eff. September 1, 2011.

Amended by:

Acts 2015, 84th Leg., R.S., Ch. 1065 (H.B. 2187), Sec. 3, eff. September 1, 2015.

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.

Added by Acts 2007, 80th Leg., R.S., Ch. 1316 (S.B. 1154), Sec. 2, eff. September 1, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch. 1316 (S.B. 1154), Sec. 2, eff. September 1, 2007.

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.