S.B. No. 694

	AN ACT
	relating to the regulation of metal recycling entities; providing
	penalties.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Subdivision (10), Section 1956.001, Occupations
	Code, is amended to read as follows:
	(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; [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;
	(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; and
	(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.
	SECTION 2.  The heading to Section 1956.003, Occupations
	Code, is amended to read as follows:
	Sec. 1956.003.  LOCAL LAW; CRIMINAL PENALTY.
	SECTION 3.  Section 1956.003, Occupations Code, is amended
	by adding Subsections (a-1), (a-2), (f), (f-1), (f-2), and (g) to
	read as follows:
	(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.
	(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.
	(f-1)  It is an exception to the application of Subsection
	(f) that:
	(1)  the person held a license or permit issued by the
	appropriate county, municipality, or other political subdivision
	at one point during the 12-month period preceding the date of the
	alleged offense; and
	(2)  the person obtains or submits an application for
	the appropriate license or permit not later than the 15th day after
	the date the person receives notice from the appropriate county,
	municipality, or other political subdivision informing the person
	that the metal recycling entity is operating without the required
	license or permit.
	(f-2)  This subsection and Subsection (f-1) expire March 1,
	2013.
	(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.
	SECTION 4.  Subchapter A, Chapter 1956, Occupations Code, is
	amended by adding Section 1956.004 to read as follows:
	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.
	(e)  It is an exception to the application of this section
	that:
	(1)  the person held a license or permit issued by the
	appropriate county, municipality, or other political subdivision
	at one point during the 12-month period preceding the date of the
	alleged violation; and
	(2)  the person obtains or submits an application for
	the appropriate license or permit not later than the 15th day after
	the date the person receives notice from the appropriate county,
	municipality, or other political subdivision informing the person
	that the metal recycling entity is operating without the required
	license or permit.
	(f)  This subsection and Subsection (e) expire March 1, 2013.
	SECTION 5.  Section 1956.015, Occupations Code, is amended
	by amending Subsection (d) and adding Subsections (e) and (f) to
	read as follows:
	(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 [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].
	(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.
	SECTION 6.  Subchapter A-1, Chapter 1956, Occupations Code,
	is amended by adding Sections 1956.016 and 1956.017 to read as
	follows:
	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.
	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 12 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)  four representatives of metal recycling entities;
	and
	(6)  two members who represent industries that are
	impacted by theft of regulated material.
	(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.
	SECTION 7.  The heading to Section 1956.032, Occupations
	Code, is amended to read as follows:
	Sec. 1956.032.  INFORMATION REGARDING [PROVIDED BY] SELLER.
	SECTION 8.  Section 1956.032, Occupations Code, is amended
	by amending Subsection (a) and adding Subsections (g) and (h) to
	read as follows:
	(a)  Except as provided by Subsection (f), a person
	attempting to sell regulated material to a metal recycling entity
	shall:
	(1)  display to the metal recycling entity the person's
	personal identification document;
	(2)  provide to the metal recycling entity the make,
	model, color, and license plate number of the motor vehicle used to
	transport the regulated material and the name of the state issuing
	the license plate; [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 that the person is the legal owner of or is
	lawfully entitled to sell the regulated material offered for sale;
	(4)  if the regulated material includes condensing or
	evaporator coils for central heating or air conditioning units,
	display to the metal recycling entity:
	(A)  the person's air conditioning and
	refrigeration contractor license issued under Subchapter F or G,
	Chapter 1302;
	(B)  the person's air conditioning and
	refrigeration technician registration issued under Subchapter K,
	Chapter 1302;
	(C)  a receipt, bill of sale, or other
	documentation showing that the seller purchased the coils the
	seller is attempting to sell; or
	(D)  a receipt, bill of sale, or other
	documentation showing that the seller has purchased a replacement
	central heating or air conditioning unit; and
	(5)  if the regulated material includes insulated
	communications wire that has been burned wholly or partly to remove
	the insulation, display to the metal recycling entity documentation
	acceptable under the rules adopted under Subsection (h) that states
	that the material was salvaged from a fire.
	(g)  Notwithstanding Section 1956.002, the metal recycling
	entity shall verify the registration of a person attempting to sell
	regulated material who represents that the person is a metal
	recycling entity as follows:
	(1)  by using the database described by Section
	1956.016; or
	(2)  by obtaining from the person a copy of the person's
	certificate of registration issued under Section 1956.022 in
	addition to the information required under Subsection (a).
	(h)  The commission shall adopt rules establishing the type
	of documentation that a seller of insulated communications wire
	described by Subsection (a)(5) must provide to a metal recycling
	entity to establish that the wire was salvaged from a fire.
	SECTION 9.  Section 1956.033, Occupations Code, is amended
	to read as follows:
	Sec. 1956.033.  RECORD OF PURCHASE.  (a)  Each metal
	recycling entity in this state shall keep an accurate electronic
	record or an accurate and legible written record of each purchase of
	regulated material made in the course of the entity's business from
	an individual [of:
	[(1)  copper or brass material;
	[(2)  bronze material;
	[(3)  aluminum material; or
	[(4)  regulated metal].
	(b)  The record must be in English and include:
	(1)  the place and date of the purchase;
	(2)  the name and address of the seller in possession 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 commodity type and quantity of regulated
	material purchased; [and]
	(5)  the information required by Sections
	1956.032(a)(2) and (3);
	(6)  as applicable:
	(A)  the identifying number of the seller's air
	conditioning and refrigeration contractor license displayed under
	Section 1956.032(a)(4)(A);
	(B)  a copy of the seller's air conditioning and
	refrigeration technician registration displayed under Section
	1956.032(a)(4)(B);
	(C)  a copy of the documentation described by
	Section 1956.032(a)(4)(C); or
	(D)  a copy of the documentation described by
	Section 1956.032(a)(4)(D);
	(7)  if applicable, a copy of the documentation
	described by Section 1956.032(a)(5); and
	(8)  a copy of the documentation described by Section
	1956.032(g) [Section 1956.032(a)(3)].
	SECTION 10.  Subchapter A-3, Chapter 1956, Occupations Code,
	is amended by adding Section 1956.0331 to read as follows:
	Sec. 1956.0331.  PHOTOGRAPH OR RECORDING REQUIREMENT FOR
	REGULATED METAL TRANSACTION.  (a)  In addition to the requirements
	of Sections 1956.032 and 1956.033, for each purchase by a metal
	recycling entity of an item of regulated metal, the entity shall
	obtain a digital photograph or video recording that accurately
	depicts the seller's entire face and each type of regulated metal
	purchased.
	(b)  A metal recycling entity shall preserve a photograph or
	recording required under Subsection (a) as follows:
	(1)  for a video recording, until the 91st day after the
	date of the transaction; and
	(2)  for a digital photograph, until the 181st day
	after the date of the transaction.
	(c)  The photograph or recording must be made available for
	inspection as provided by Section 1956.035 not later than 72 hours
	after the time of purchase.
	SECTION 11.  Section 1956.034, Occupations Code, is amended
	to read as follows:
	Sec. 1956.034.  PRESERVATION OF RECORDS.  A metal recycling
	entity shall preserve each record required by Sections 1956.032 and
	1956.033 until the second [third] anniversary of the date the
	record was made. The records must be kept in an easily retrievable
	format and must be available for inspection as provided by Section
	1956.035 not later than 72 hours after the time of purchase.
	SECTION 12.  Section 1956.035, Occupations Code, is amended
	to read as follows:
	Sec. 1956.035.  INSPECTION OF RECORDS [BY PEACE OFFICER].
	(a)  On request, a metal recycling entity shall permit a peace
	officer of this state, a representative of the department, or a
	representative of a county, municipality, or other political
	subdivision that issues a license or permit under Section
	1956.003(b) to inspect, during the entity's usual business hours:
	(1)  a record required by Section 1956.033; [or]
	(2)  a digital photograph or video recording required
	by Section 1956.0331; or
	(3)  regulated material in the entity's possession.
	(b)  The person seeking to inspect a record or material
	[inspecting officer] shall:
	(1)  inform the entity of the officer's status as a
	peace officer; or
	(2)  if the person is a representative of the
	department or a representative of a county, municipality, or other
	political subdivision, inform the entity of the person's status and
	display to the entity an identification document or other
	appropriate documentation establishing the person's status as a
	representative of the department or of the appropriate county,
	municipality, or political subdivision.
	SECTION 13.  Section 1956.036, Occupations Code, is amended
	by amending Subsections (a) and (b) and adding Subsections (d) and
	(e) to read as follows:
	(a)  Except as provided by Subsections [Subsection] (b) and
	(d), not later than the close of business on a metal recycling
	entity's second working [seventh] day after the date of the
	purchase or other acquisition of material for which a record is
	required under Section 1956.033, the [a metal recycling] entity
	shall send an electronic transaction report to the department via
	the department's Internet website.  The [by facsimile or electronic
	mail to or file with the department a] report must contain
	[containing] the information required to be recorded under Section
	1956.033 [that section].
	(b)  If a metal recycling entity 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 shall:
	(1)  not later than the close of business on the
	entity's first working day after the purchase date, notify the
	department by telephone, by e-mail, or via the department's
	Internet website; and
	(2)  not later than the close of business on the
	entity's second working [fifth] day after the purchase date, submit
	to the department electronically via the department's Internet
	website [mail to] or file with the department a report containing
	the information required to be recorded under Section 1956.033.
	(d)  A metal recycling entity may submit the transaction
	report required under Subsection (a) by facsimile if:
	(1)  the entity submits to the department annually:
	(A)  an application requesting an exception to the
	electronic reporting requirement; and
	(B)  an affidavit stating that the entity does not
	have an available and reliable means of submitting the transaction
	report electronically; and
	(2)  the department approves the entity's application
	under this subsection.
	(e)  The department, after notice and an opportunity for a
	hearing, may prohibit a metal recycling entity from paying cash for
	a purchase of regulated material for a period determined by the
	department if the department finds that the entity has failed to
	comply with this section.
	SECTION 14.  Subsection (a), Section 1956.037, Occupations
	Code, is amended to read as follows:
	(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:
	(A)  eight days, excluding weekends and holidays,
	before the disposal, processing, sale, or removal, if the item is a
	cemetery vase, receptacle, or memorial made from a regulated
	material other than aluminum material; or
	(B)  72 hours, excluding weekends and holidays,
	before the disposal, processing, sale, or removal, if the item is
	not an item described by Paragraph (A); 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.
	SECTION 15.  Section 1956.038, Occupations Code, is amended
	to read as follows:
	Sec. 1956.038.  PROHIBITED ACTS.  (a)  A person may not,
	with the intent to deceive:
	(1)  display to a metal recycling entity a false or
	invalid personal identification document in connection with the
	person's attempted sale of regulated material;
	(2)  make a false, material statement or representation
	to a metal recycling entity in connection with:
	(A)  that person's execution of a written
	statement required by Section 1956.032(a)(3); or
	(B)  the entity'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; or
	(4)  display another individual's personal
	identification document in connection with the sale of regulated
	material.
	(b)  A metal recycling entity may not pay for a purchase of
	regulated material in cash if:
	(1)  the entity does not hold a certificate of
	registration under Subchapter A-2 and, if applicable, a license or
	permit required by a county, municipality, or other political
	subdivision as authorized under Section 1956.003(b); or
	(2)  the entity has been prohibited by the department
	from paying cash under Section 1956.036(e).
	(c)  Notwithstanding Section 1956.003(a) or any other law, a
	county, municipality, or other political subdivision may not adopt
	or enforce a rule, charter, or ordinance or issue an order or impose
	standards that limit the use of cash by a metal recycling entity in
	a manner more restrictive than that provided by Subsection (b).
	(d)  Subsection (c) does not apply to a rule, charter,
	ordinance, or order of a county, municipality, or other political
	subdivision in effect on January 1, 2011.
	(d-1)  Not later than January 1, 2012, the department shall
	issue a notice to each known owner or operator of a metal recycling
	entity in this state informing the owner or operator of the
	requirement to obtain a certificate of registration under
	Subchapter A-2 and, if applicable, to obtain a license or permit
	required by a county, municipality, or other political subdivision
	under Section 1956.003.  The notice must also state:
	(1)  that the owner or operator shall submit an
	application for a certificate of registration and the appropriate
	license or permit required by a county, municipality, or other
	political subdivision on or before March 1, 2012; and
	(2)  the penalties under this chapter for failure to
	comply with Subdivision (1).
	(d-2)  This subsection and Subsection (d-1) expire March 1,
	2012.
	(e)  The department or a county, municipality, or other
	political subdivision may bring an action in the county in which a
	metal recycling entity is located to enjoin the business operations
	of the owner or operator of the metal recycling entity for a period
	of not less than 30 days and not more than 90 days if the owner or
	operator has not submitted an application for a certificate of
	registration or the appropriate license or permit required by a
	county, municipality, or other political subdivision.
	(f)  An action under Subsection (e) must be brought in the
	name of the state. If judgment is in favor of the state, the court
	shall:
	(1)  enjoin the owner or operator from maintaining or
	participating in the business of a metal recycling entity for a
	definite period of not less than 30 days and not more than 90 days,
	as determined by the court; and
	(2)  order that the place of business of the owner or
	operator be closed for the same period.
	SECTION 16.  Section 1956.040, Occupations Code, is amended
	by adding Subsections (a-1), (a-2), (a-3), (a-4), and (b-1) and
	amending Subsection (b) to read as follows:
	(a-1)  A person commits an offense if the person knowingly
	violates Section 1956.021, 1956.023(d), 1956.036(a), or 1956.039.
	(a-2)  An offense under Subsection (a-1) is a misdemeanor
	punishable by a fine not to exceed $10,000, unless it is shown on
	trial of the offense that the person has previously been convicted
	of a violation of Subsection (a-1), in which event the offense is a
	state jail felony.
	(a-3)  It is an affirmative defense to prosecution of a
	violation of Section 1956.021 or 1956.023(d) that the person made a
	diligent effort to obtain or renew a certificate of registration at
	the time of the violation.
	(a-4)  A municipality or county may retain 10 percent of the
	money collected from a fine for a conviction of an offense under
	Subsection (a-1) as a service fee for that collection and the clerk
	of the court shall remit the remainder of the fine collected for
	conviction of an offense under Subsection (a-1) to the comptroller
	in the manner provided for the remission of fees to the comptroller
	under Subchapter B, Chapter 133, Local Government Code.  The
	comptroller shall deposit proceeds received under this subsection
	to the credit of an account in the general revenue fund, and those
	proceeds may be appropriated only to the department and used to:
	(1)  finance the department's administration of
	Subchapters A, A-1, A-2, and A-3; and
	(2)  fund grants distributed under the prevention of
	scrap metal theft grant program established under Subchapter N,
	Chapter 411, Government Code.
	(b)  A person commits an offense if the person knowingly
	buys:
	(1)  stolen regulated material; or
	(2)  insulated communications wire that has been burned
	wholly or partly to remove the insulation, unless the wire is
	accompanied by documentation acceptable under the rules adopted
	under Section 1956.032(h) that states that the material was
	salvaged from a fire.
	(b-1)  An offense under Subsection (b) [this subsection] is a
	Class A misdemeanor unless it is shown on trial of the offense that
	the person has previously been convicted under Subsection (b) [this
	subsection], in which event the offense is a state jail felony.
	SECTION 17.  Subsection (a), Section 1956.103, Occupations
	Code, is amended to read as follows:
	(a)  A person may not sell or otherwise transfer to a metal
	recycling entity:
	(1)  a lead-acid battery, fuel tank, or PCB-containing
	capacitor that is included with another type of scrap, used, or
	obsolete metal without first obtaining from the metal recycling
	entity a written and signed acknowledgment that the scrap, used, or
	obsolete metal includes one or more lead-acid batteries, fuel
	tanks, or PCB-containing capacitors;
	(2)  any of the following items that contain or enclose
	a lead-acid battery, fuel tank, or PCB-containing capacitor or of
	which a lead-acid battery, fuel tank, or PCB-containing capacitor
	is a part:
	(A)  a motor vehicle;
	(B)  a motor vehicle that has been junked,
	flattened, dismantled, or changed so that it has lost its character
	as a motor vehicle;
	(C)  an appliance; or
	(D)  any other item of scrap, used, or obsolete
	metal; [or]
	(3)  a motor vehicle or a motor vehicle that has been
	junked, flattened, dismantled, or changed so that it has lost its
	character as a motor vehicle if the motor vehicle includes,
	contains, or encloses a tire or scrap tire; or
	(4)  a metal alcoholic beverage keg, regardless of
	condition, unless the seller is the manufacturer of the keg, the
	brewer or distiller of the beverage that was contained in the keg,
	or an authorized representative of the manufacturer, brewer, or
	distiller.
	SECTION 18.  Section 1956.151, Occupations Code, is amended
	to read as follows:
	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 provision of this chapter or a rule
	adopted under this chapter; or
	(4)  violates Section 1956.021.
	SECTION 19.  Subsection (d), Section 1956.202, Occupations
	Code, is amended to read as follows:
	(d)  A civil penalty may not be assessed under this section
	for conduct described by Section 1956.021, 1956.023(d),
	1956.036(a), 1956.038, or 1956.039.
	SECTION 20.  Chapter 411, Government Code, is amended by
	adding Subchapter N to read as follows:
	SUBCHAPTER N.  PREVENTION OF SCRAP METAL THEFT GRANT PROGRAM
	Sec. 411.421.  DEFINITION. In this subchapter, "regulated
	material" has the meaning assigned by Section 1956.001, Occupations
	Code.
	Sec. 411.422.  GRANTS TO FUND SCRAP METAL THEFT PREVENTION.
	(a)  From fines collected and distributed to the department under
	Sections 1956.040(a-2) and (a-4), Occupations Code, the commission
	by rule shall establish and implement a grant program to provide
	funding to assist local law enforcement agencies in preventing the
	theft of regulated material.
	(b)  To be eligible for a grant, a recipient must be a local
	law enforcement agency that has established a program designed to
	prevent the theft of regulated material.
	(c)  Rules adopted under this section must:
	(1)  include accountability measures for grant
	recipients and provisions for loss of eligibility for grant
	recipients that fail to comply with the measures; and
	(2)  require grant recipients to provide to the
	department information on program outcomes.
	SECTION 21.  Subsection (e), Section 31.03, Penal Code, is
	amended to read as follows:
	(e)  Except as provided by Subsection (f), an offense under
	this section is:
	(1)  a Class C misdemeanor if the value of the property
	stolen is less than:
	(A)  $50; or
	(B)  $20 and the defendant obtained the property
	by issuing or passing a check or similar sight order in a manner
	described by Section 31.06;
	(2)  a Class B misdemeanor if:
	(A)  the value of the property stolen is:
	(i)  $50 or more but less than $500; or
	(ii)  $20 or more but less than $500 and the
	defendant obtained the property by issuing or passing a check or
	similar sight order in a manner described by Section 31.06;
	(B)  the value of the property stolen is less
	than:
	(i)  $50 and the defendant has previously
	been convicted of any grade of theft; or
	(ii)  $20, the defendant has previously been
	convicted of any grade of theft, and the defendant obtained the
	property by issuing or passing a check or similar sight order in a
	manner described by Section 31.06; or
	(C)  the property stolen is a driver's license,
	commercial driver's license, or personal identification
	certificate issued by this state or another state;
	(3)  a Class A misdemeanor if the value of the property
	stolen is $500 or more but less than $1,500;
	(4)  a state jail felony if:
	(A)  the value of the property stolen is $1,500 or
	more but less than $20,000, or the property is less than 10 head of
	sheep, swine, or goats or any part thereof under the value of
	$20,000;
	(B)  regardless of value, the property is stolen
	from the person of another or from a human corpse or grave,
	including property that is a military grave marker;
	(C)  the property stolen is a firearm, as defined
	by Section 46.01;
	(D)  the value of the property stolen is less than
	$1,500 and the defendant has been previously convicted two or more
	times of any grade of theft;
	(E)  the property stolen is an official ballot or
	official carrier envelope for an election; or
	(F)  the value of the property stolen is less than
	$20,000 and the property stolen is [insulated or noninsulated
	tubing, rods, water gate stems, wire, or cable that consists of at
	least 50 percent]:
	(i)  aluminum;
	(ii)  bronze; [or]
	(iii)  copper; or
	(iv)  brass;
	(5)  a felony of the third degree if the value of the
	property stolen is $20,000 or more but less than $100,000, or the
	property is:
	(A)  cattle, horses, or exotic livestock or exotic
	fowl as defined by Section 142.001, Agriculture Code, stolen during
	a single transaction and having an aggregate value of less than
	$100,000; or
	(B)  10 or more head of sheep, swine, or goats
	stolen during a single transaction and having an aggregate value of
	less than $100,000;
	(6)  a felony of the second degree if the value of the
	property stolen is $100,000 or more but less than $200,000; or
	(7)  a felony of the first degree if the value of the
	property stolen is $200,000 or more.
	SECTION 22.  (a)  Except as provided by Subsection (b) of
	this section, the change in law made by this Act applies only to an
	offense committed on or after September 1, 2011. An offense
	committed before September 1, 2011, 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.
	(b)  Subdivision (2), Subsection (b), Section 1956.040,
	Occupations Code, as added by this Act, applies only to an offense
	committed on or after January 1, 2012.  An offense committed before
	January 1, 2012, 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.
	(c)  For purposes of this section, an offense was committed
	before the applicable date if any element of the offense occurred
	before that date.
	(d)  The enhancement of the punishment of an offense provided
	under Subsection (a-2), Section 1956.040, Occupations Code, as
	added by this Act, applies only to an offense committed on or after
	January 1, 2012. For purposes of this subsection, an offense is
	committed before January 1, 2012, if any element of the offense
	occurs before that date. An offense committed before January 1,
	2012, is covered by the law in effect when the offense was
	committed, and the former law is continued in effect for that
	purpose.
	(e)  Not later than January 1, 2012, the public safety
	director of the Department of Public Safety of the State of Texas
	shall appoint the members of the advisory committee established
	under Section 1956.017, Occupations Code, as added by this Act, and
	designate the time and place of the committee's first meeting.
	(f)  Not later than December 1, 2011, the Public Safety
	Commission shall adopt rules to implement Subsection (h), Section
	1956.032, Occupations Code, as added by this Act.
	SECTION 23.  (a)  Except as provided by Subsections (b) and
	(c) of this section, this Act takes effect September 1, 2011.
	(b)  Subsection (f), Section 1956.003, Section 1956.004, and
	Subsections (b) and (e), Section 1956.038, Occupations Code, as
	added by this Act, take effect March 1, 2012.
	(c)  Subdivision (5), Subsection (a), Section 1956.032, and
	Subdivision (2), Subsection (b), Section 1956.040, Occupations
	Code, as added by this Act, take effect January 1, 2012.
	______________________________	______________________________
	President of the Senate	Speaker of the House
	I hereby certify that S.B. No. 694 passed the Senate on
	April 12, 2011, by the following vote:  Yeas 31, Nays 0;
	May 26, 2011, Senate refused to concur in House amendments and
	requested appointment of Conference Committee; May 27, 2011, House
	granted request of the Senate; May 29, 2011, Senate adopted
	Conference Committee Report by the following vote:  Yeas 31,
	Nays 0.
	______________________________
	Secretary of the Senate
	I hereby certify that S.B. No. 694 passed the House, with
	amendments, on May 24, 2011, by the following vote:  Yeas 106,
	Nays 29, three present not voting; May 27, 2011, House granted
	request of the Senate for appointment of Conference Committee;
	May 29, 2011, House adopted Conference Committee Report by the
	following vote:  Yeas 119, Nays 21, two present not voting.
	______________________________
	Chief Clerk of the House
	Approved:
	______________________________
	Date
	______________________________
	Governor