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        |  | 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) | 
      
        |  | 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 | 
      
        |  | violates this subchapter or Subchapter A-2 or a rule or order of the | 
      
        |  | commission under this chapter [ Section 1956.036]. | 
      
        |  | (b)  The amount of the administrative penalty may not exceed | 
      
        |  | $1,000 for each violation.  The aggregate penalty for multiple | 
      
        |  | violations may not exceed $10,000.  Each day a violation occurs or | 
      
        |  | continues to occur is a separate violation for the purpose of | 
      
        |  | imposing a penalty.  In determining the amount of the | 
      
        |  | administrative penalty, 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 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. | 
      
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        |  | * * * * * |