By: West	S.B. No. 208
	(Rodriguez of Travis)

	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.