By: Alvarado, et al. S.B. No. 224     (Leach, Hull, Oliverson, Goldman, Walle, et al.)           A BILL TO BE ENTITLED   AN ACT   relating to catalytic converters, including criminal conduct   involving catalytic converters; providing an administrative   penalty; creating a criminal offense; increasing a criminal   penalty; increasing a fee.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:   ARTICLE 1. TITLE          SECTION 1.01.  This Act may be cited as the Deputy Darren   Almendarez Act.   ARTICLE 2. CRIMINAL OFFENSES          SECTION 2.01.  Section 28.03(b), Penal Code, is amended to   read as follows:          (b)  Except as provided by Subsections (f) and (h), an   offense under this section is:                (1)  a Class C misdemeanor if:                      (A)  the amount of pecuniary loss is less than   $100; or                      (B)  except as provided in Subdivision (3)(A) or   (3)(B), it causes substantial inconvenience to others;                (2)  a Class B misdemeanor if the amount of pecuniary   loss is $100 or more but less than $750;                (3)  a Class A misdemeanor if:                      (A)  the amount of pecuniary loss is $750 or more   but less than $2,500; or                      (B)  the actor causes in whole or in part   impairment or interruption of any public water supply, or causes to   be diverted in whole, in part, or in any manner, including   installation or removal of any device for any such purpose, any   public water supply, regardless of the amount of the pecuniary   loss;                (4)  a state jail felony if the amount of pecuniary loss   is:                      (A)  $2,500 or more but less than $30,000;                      (B)  less than $2,500, if the property damaged or   destroyed is a habitation and if the damage or destruction is caused   by a firearm or explosive weapon;                      (C)  less than $2,500, if the property was a fence   used for the production or containment of:                            (i)  cattle, bison, horses, sheep, swine,   goats, exotic livestock, or exotic poultry; or                            (ii)  game animals as that term is defined by   Section 63.001, Parks and Wildlife Code; [or]                      (D)  less than $30,000 and the actor:                            (i)  causes wholly or partly impairment or   interruption of property used for flood control purposes or a dam or   of public communications, public transportation, public gas or   power supply, or other public service; or                            (ii)  causes to be diverted wholly, partly,   or in any manner, including installation or removal of any device   for any such purpose, any public communications or public gas or   power supply; or                      (E)  less than $30,000, if the property is a motor   vehicle that is damaged, destroyed, or tampered with during the   removal or attempted removal of a catalytic converter from the   motor vehicle;                (5)  a felony of the third degree if:                      (A)  the amount of the pecuniary loss is $30,000   or more but less than $150,000;                      (B)  the actor, by discharging a firearm or other   weapon or by any other means, causes the death of one or more head of   cattle or bison or one or more horses; or                      (C)  the actor causes wholly or partly impairment   or interruption of access to an automated teller machine,   regardless of the amount of the pecuniary loss;                (6)  a felony of the second degree if the amount of   pecuniary loss is $150,000 or more but less than $300,000; or                (7)  a felony of the first degree if the amount of   pecuniary loss is $300,000 or more.          SECTION 2.02.  Section 31.03, Penal Code, is amended by   amending Subsections (c) and (e) and adding Subsection (f-1) to   read as follows:          (c)  For purposes of Subsection (b):                (1)  evidence that the actor has previously   participated in recent transactions other than, but similar to, the   transaction for [that] which the prosecution is based is admissible   for the purpose of showing knowledge or intent and the issues of   knowledge or intent are raised by the actor's plea of not guilty;                (2)  the testimony of an accomplice shall be   corroborated by proof that tends to connect the actor to the crime,   but the actor's knowledge or intent may be established by the   uncorroborated testimony of the accomplice;                (3)  an actor engaged in the business of buying and   selling used or secondhand personal property, or lending money on   the security of personal property deposited with the actor, is   presumed to know upon receipt by the actor of stolen property (other   than a motor vehicle subject to Chapter 501, Transportation Code)   that the property has been previously stolen from another if the   actor pays for or loans against the property $25 or more (or   consideration of equivalent value) and the actor knowingly or   recklessly:                      (A)  fails to record the name, address, and   physical description or identification number of the seller or   pledgor;                      (B)  fails to record a complete description of the   property, including the serial number, if reasonably available, or   other identifying characteristics; or                      (C)  fails to obtain a signed warranty from the   seller or pledgor that the seller or pledgor has the right to   possess the property.  It is the express intent of this provision   that the presumption arises unless the actor complies with each of   the numbered requirements;                (4)  for the purposes of Subdivision (3)(A),   "identification number" means driver's license number, military   identification number, identification certificate, or other   official number capable of identifying an individual;                (5)  stolen property does not lose its character as   stolen when recovered by any law enforcement agency;                (6)  an actor engaged in the business of obtaining   abandoned or wrecked motor vehicles or parts of an abandoned or   wrecked motor vehicle for resale, disposal, scrap, repair,   rebuilding, demolition, or other form of salvage is presumed to   know on receipt by the actor of stolen property that the property   has been previously stolen from another if the actor knowingly or   recklessly:                      (A)  fails to maintain an accurate and legible   inventory of each motor vehicle component part purchased by or   delivered to the actor, including the date of purchase or delivery,   the name, age, address, sex, and driver's license number of the   seller or person making the delivery, the license plate number of   the motor vehicle in which the part was delivered, a complete   description of the part, and the vehicle identification number of   the motor vehicle from which the part was removed, or in lieu of   maintaining an inventory, fails to record the name and certificate   of inventory number of the person who dismantled the motor vehicle   from which the part was obtained;                      (B)  fails on receipt of a motor vehicle to obtain   a certificate of authority, sales receipt, or transfer document as   required by Chapter 683, Transportation Code, or a certificate of   title showing that the motor vehicle is not subject to a lien or   that all recorded liens on the motor vehicle have been released; or                      (C)  fails on receipt of a motor vehicle to   immediately remove an unexpired license plate from the motor   vehicle, to keep the plate in a secure and locked place, or to   maintain an inventory, on forms provided by the Texas Department of   Motor Vehicles, of license plates kept under this paragraph,   including for each plate or set of plates the license plate number   and the make, motor number, and vehicle identification number of   the motor vehicle from which the plate was removed;                (7)  an actor who purchases or receives a used or   secondhand motor vehicle is presumed to know on receipt by the actor   of the motor vehicle that the motor vehicle has been previously   stolen from another if the actor knowingly or recklessly:                      (A)  fails to report to the Texas Department of   Motor Vehicles the failure of the person who sold or delivered the   motor vehicle to the actor to deliver to the actor a properly   executed certificate of title to the motor vehicle at the time the   motor vehicle was delivered; or                      (B)  fails to file with the county tax   assessor-collector of the county in which the actor received the   motor vehicle, not later than the 20th day after the date the actor   received the motor vehicle, the registration license receipt and   certificate of title or evidence of title delivered to the actor in   accordance with Subchapter D, Chapter 520, Transportation Code, at   the time the motor vehicle was delivered;                (8)  an actor who purchases or receives from any source   other than a licensed retailer or distributor of pesticides a   restricted-use pesticide or a state-limited-use pesticide or a   compound, mixture, or preparation containing a restricted-use or   state-limited-use pesticide is presumed to know on receipt by the   actor of the pesticide or compound, mixture, or preparation that   the pesticide or compound, mixture, or preparation has been   previously stolen from another if the actor:                      (A)  fails to record the name, address, and   physical description of the seller or pledgor;                      (B)  fails to record a complete description of the   amount and type of pesticide or compound, mixture, or preparation   purchased or received; and                      (C)  fails to obtain a signed warranty from the   seller or pledgor that the seller or pledgor has the right to   possess the property; [and]                (9)  an actor who is subject to Section 409, Packers and   Stockyards Act (7 U.S.C. Section 228b), that obtains livestock from   a commission merchant by representing that the actor will make   prompt payment is presumed to have induced the commission   merchant's consent by deception if the actor fails to make full   payment in accordance with Section 409, Packers and Stockyards Act   (7 U.S.C. Section 228b); and                 (10)  an actor in possession of property consisting of   one or more catalytic converters that have been removed from a motor   vehicle is presumed to have unlawfully appropriated the property   unless the actor:                      (A)  is the owner, as defined by Section 601.002,   Transportation Code, of each vehicle from which the catalytic   converters were removed; or                      (B)  possesses the catalytic converters in the   ordinary course of the actor's business, including in the ordinary   course of business of an entity described by Section 1956.123(1),   Occupations Code.          (e)  Except as provided by Subsections [Subsection] (f) and   (f-1), an offense under this section is:                (1)  a Class C misdemeanor if the value of the property   stolen is less than $100;                (2)  a Class B misdemeanor if:                      (A)  the value of the property stolen is $100 or   more but less than $750;                      (B)  the value of the property stolen is less than   $100 and the defendant has previously been convicted of any grade of   theft; 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 $750 or more but less than $2,500;                (4)  a state jail felony if:                      (A)  the value of the property stolen is $2,500 or   more but less than $30,000, or the property is less than 10 head of   sheep, swine, or goats or any part thereof under the value of   $30,000;                      (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   $2,500 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:                            (i)  aluminum;                            (ii)  bronze;                            (iii)  copper; or                            (iv)  brass; or                      (G)  the cost of replacing the property stolen is   less than $30,000 and the property stolen is a catalytic converter;                 (5)  a felony of the third degree if the value of the   property stolen is $30,000 or more but less than $150,000, 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   $150,000;                      (B)  10 or more head of sheep, swine, or goats   stolen during a single transaction and having an aggregate value of   less than $150,000; or                      (C)  a controlled substance, having a value of   less than $150,000, if stolen from:                            (i)  a commercial building in which a   controlled substance is generally stored, including a pharmacy,   clinic, hospital, nursing facility, or warehouse; or                            (ii)  a vehicle owned or operated by a   wholesale distributor of prescription drugs;                (6)  a felony of the second degree if:                      (A)  the value of the property stolen is $150,000   or more but less than $300,000; or                      (B)  the value of the property stolen is less than   $300,000 and the property stolen is an automated teller machine or   the contents or components of an automated teller machine; or                (7)  a felony of the first degree if the value of the   property stolen is $300,000 or more.          (f-1)  An offense described for purposes of punishment by   Subsections (e)(4)-(6) is increased to the next higher category of   offense if it is shown on the trial of the offense that:                (1)  the property stolen is a catalytic converter; and                (2)  the actor possessed a firearm during the   commission of the offense.          SECTION 2.03.  Section 31.03(h), Penal Code, is amended by   adding Subdivisions (7) and (8) to read as follows:                (7)  "Catalytic converter" means a catalytic converter   and any material removed from the catalytic converter.                (8)  "Firearm" has the meaning assigned by Section   46.01.          SECTION 2.04.  Chapter 31, Penal Code, is amended by adding   Section 31.21 to read as follows:          Sec. 31.21.  UNAUTHORIZED POSSESSION OF CATALYTIC   CONVERTER. (a)  A person commits an offense if the person:                (1)  intentionally or knowingly possesses a catalytic   converter that has been removed from a motor vehicle; and                (2)  is not a person who is authorized under Subsection   (b) to possess the catalytic converter.          (b)  A person is presumed to be authorized to possess a   catalytic converter that has been removed from a motor vehicle if   the person:                (1)  is the owner, as defined by Section 601.002,   Transportation Code, of the vehicle from which the catalytic   converter was removed; or                (2)  possesses the catalytic converter in the ordinary   course of the person's business, including in the ordinary course   of business of an entity described by Section 1956.123(1),   Occupations Code.          (c)  The presumption established under Subsection (b) does   not apply to a person described by Subsection (b)(2) who knows that   the catalytic converter was unlawfully removed from a motor vehicle   or otherwise unlawfully obtained.          (d)  Except as provided by Subsection (e), an offense under   this section is a state jail felony.          (e)  An offense under this section is a felony of the third   degree if it is shown on the trial of the offense that the person:                (1)  has been previously convicted of an offense under   this section;                (2)  in connection with the offense, engaged in conduct   constituting conspiracy under Section 15.02 to commit an offense   under Section 28.03 or 31.03 with respect to a catalytic converter;   or                (3)  possessed a firearm during the commission of the   offense.          (f)  If conduct constituting an offense under this section   also constitutes an offense under any other law, the actor may be   prosecuted under this section, the other law, or both.          SECTION 2.05.  Section 71.02(a), Penal Code, is amended to   read as follows:          (a)  A person commits an offense if, with the intent to   establish, maintain, or participate in a combination or in the   profits of a combination or as a member of a criminal street gang,   the person commits or conspires to commit one or more of the   following:                (1)  murder, capital murder, arson, aggravated   robbery, robbery, burglary, theft, aggravated kidnapping,   kidnapping, aggravated assault, aggravated sexual assault, sexual   assault, continuous sexual abuse of young child or disabled   individual, solicitation of a minor, forgery, deadly conduct,   assault punishable as a Class A misdemeanor, burglary of a motor   vehicle, or unauthorized use of a motor vehicle;                (2)  any gambling offense punishable as a Class A   misdemeanor;                (3)  promotion of prostitution, aggravated promotion   of prostitution, or compelling prostitution;                (4)  unlawful manufacture, transportation, repair, or   sale of firearms or prohibited weapons;                (5)  unlawful manufacture, delivery, dispensation, or   distribution of a controlled substance or dangerous drug, or   unlawful possession of a controlled substance or dangerous drug   through forgery, fraud, misrepresentation, or deception;                (5-a)  causing the unlawful delivery, dispensation, or   distribution of a controlled substance or dangerous drug in   violation of Subtitle B, Title 3, Occupations Code;                (6)  any unlawful wholesale promotion or possession of   any obscene material or obscene device with the intent to wholesale   promote the same;                (7)  any offense under Subchapter B, Chapter 43,   depicting or involving conduct by or directed toward a child   younger than 18 years of age;                (8)  any felony offense under Chapter 32;                (9)  any offense under Chapter 36;                (10)  any offense under Chapter 34, 35, or 35A;                (11)  any offense under Section 37.11(a);                (12)  any offense under Chapter 20A;                (13)  any offense under Section 37.10;                (14)  any offense under Section 38.06, 38.07, 38.09, or   38.11;                (15)  any offense under Section 42.10;                (16)  any offense under Section 46.06(a)(1) or 46.14;                (17)  any offense under Section 20.05 or 20.06;                (18)  any offense under Section 16.02; [or]                (19)  an offense under Section 28.03 that is punishable   under Subsection (b)(4)(E) of that section;                (20)  an offense under Section 31.21 that is punishable   under Subsection (d) of that section; or                (21)  any offense classified as a felony under the Tax   Code.   ARTICLE 3.  REGULATORY PROVISIONS          SECTION 3.01.  Section 1956.001, Occupations Code, is   amended by amending Subdivisions (6-b) and (7) and adding   Subdivision (6-c) to read as follows:                (6-b)  "Fixed location" means a structure or facility   that:                      (A)  is attached to real property;                      (B)  has a fixed geographic location with a   physical address; and                      (C)  is used wholly or partly to conduct an   activity described by Subdivision (7).                (6-c)  "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).          SECTION 3.02.  Section 1956.016, Occupations Code, is   amended 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; and                (4)  a description of the extent to which the entity   engages in transactions involving catalytic converters based on the   entity's most recent declaration submitted under Section   1956.022(a) or 1956.127, as applicable.          SECTION 3.03.  Section 1956.017(b), Occupations Code, is   amended to read as follows:          (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,   at least one of whom must have substantial business experience with   transactions involving the purchase or acquisition of catalytic   converters;                (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.          SECTION 3.04.  Section 1956.022, Occupations Code, is   amended to read as follows:          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;                (3)  submits a declaration describing the extent to   which the applicant intends to engage in transactions involving   catalytic converters removed from motor vehicles in the course of   the applicant's business activity;                (4)  presents evidence satisfactory to the department   that the applicant intends to act as a metal recycling entity and   use a fixed location to wholly or partly conduct an activity   described by Section 1956.001(7); and                (5)  provides the physical address of the fixed   location described by Subdivision (4).          (a-1)  If the applicant's business activity involves   catalytic converters removed from motor vehicles, the declaration   described by Subsection (a)(3) must state:                (1)  whether the applicant will engage in a business   activity described by Section 1956.001(7)(A) or (B) with respect to   catalytic converters removed from motor vehicles;                (2)  whether the applicant will engage in a business   activity described by Section 1956.001(7)(C) but not a business   activity described by Section 1956.001(7)(A) or (B), with respect   to catalytic converters removed from motor vehicles; or                (3)  that the applicant will deal only incidentally   with catalytic converters removed from motor vehicles.          (a-2)  An applicant who intends to conduct an activity   described by Section 1956.001(7) at more than one fixed location   must complete an application and obtain a certificate of   registration for each fixed location.          (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. The   qualifications may differ for a holder of a certificate of   registration under this chapter based on the extent to which the   person engages in transactions involving catalytic converters   removed from motor vehicles as stated on the person's declaration   submitted under Subsection (a).          SECTION 3.05.  Section 1956.024(a), Occupations Code, is   amended to read as follows:          (a)  To renew a certificate of registration, a person must:                (1)  submit an application for renewal in the manner   prescribed by the department; and                (2)  update the person's declaration submitted under   Section 1956.022(a).          SECTION 3.06.  Subchapter A-3, Chapter 1956, Occupations   Code, is amended by adding Section 1956.030 to read as follows:          Sec. 1956.030.  FIXED LOCATION. (a) A metal recycling   entity shall at all times maintain a fixed location and use the   fixed location to at least partly conduct an activity described by   Section 1956.001(7).          (b)  A metal recycling entity shall maintain a fixed location   as required by Subsection (a) for each certificate of registration   held by the metal recycling entity.          SECTION 3.07.  Chapter 1956, Occupations Code, is amended by   adding Subchapter C-1 to read as follows:   SUBCHAPTER C-1. CERTAIN TRANSACTIONS INVOLVING CATALYTIC   CONVERTERS REMOVED FROM MOTOR VEHICLES          Sec. 1956.121.  DEFINITION. In this subchapter, "motor   vehicle" has the meaning assigned by Section 541.201,   Transportation Code.          Sec. 1956.122.  APPLICABILITY; EFFECT OF LAW.  (a)     Notwithstanding any other provision of this chapter, this   subchapter applies to the purchase or acquisition, from a person   described by Section 1956.002(1), of a catalytic converter removed   from a motor vehicle.          (b)  This subchapter does not affect any requirement under   Subchapter A-3, including any requirement applicable to the   purchase or acquisition of a catalytic converter removed from a   motor vehicle from a person not described by Section 1956.002(1).          Sec. 1956.123.  LIMITATION ON PURCHASING OR OTHERWISE   ACQUIRING CATALYTIC CONVERTERS. A metal recycling entity may not   purchase or otherwise acquire a catalytic converter that was   removed from a motor vehicle from a person described by Section   1956.002(1), unless each of the following is satisfied:                (1)  the person selling the catalytic converter to the   metal recycling entity acquired it in the ordinary course of the   person's business, including in the ordinary course of business of   any of the following entities:                      (A)  an automotive wrecking and salvage yard as   defined by Section 234.001, Local Government Code;                      (B)  a metal recycling entity registered under   this chapter;                      (C)  a manufacturer, distributor, converter, or   dealer licensed under Chapter 2301, including any department of a   dealer or converter that repairs or services motor vehicles;                      (D)  a shop or garage that is engaged in the   business of repairing motor vehicles;                       (E)  a used automotive parts recycler licensed   under Chapter 2309;                       (F)  a motor vehicle demolisher as defined by   Section 683.001, Transportation Code;                       (G)  a school or training program in which   students are provided instruction on building, repairing, or   restoring motor vehicles;                       (H)  a law enforcement agency;                      (I)  the National Insurance Crime Bureau;                       (J)  a business that is:                            (i)  located in and regulated by another   state or a political subdivision of another state; and                            (ii)  engaged in an activity for which a   business described by Paragraphs (A) through (I) is regulated by   this state or a political subdivision of this state; or                      (K)  a business that is located in a jurisdiction   outside the United States and operated in a business form   recognized by the laws of that jurisdiction and that imports   catalytic converters into the United States in accordance with the   Harmonized Tariff Schedule of the United States published by the   United States International Trade Commission; and                (2)  any individual acting on behalf of the person   described by Subdivision (1) has apparent authority to enter into   the transaction and is acting in the scope of that authority.          Sec. 1956.124.  CERTAIN RECORDS REQUIRED WHEN PURCHASING OR   OTHERWISE ACQUIRING CATALYTIC CONVERTER; OFFENSE. (a) A metal   recycling entity shall maintain an accurate record of each   transaction in which the entity purchases or otherwise acquires a   catalytic converter that is removed from a motor vehicle from a   person described by Section 1956.123.          (b)  A record meets the requirements of Subsection (a) if it   contains:                (1)  a description made in accordance with the custom   of the trade for the volume of catalytic converters purchased or   otherwise acquired;                (2)  the business name of the person from whom the   catalytic converters were purchased or otherwise acquired; and                (3)  the date of the transaction.          (c)  A metal recycling entity shall preserve each record   required by this section until the second anniversary of the date   the record was made.  The records must be maintained in an easily   retrievable format and must be available for inspection as provided   by Section 1956.125 not later than 72 hours after the time of   purchase or acquisition.          (d)  A record containing the information described by   Subsection (b) that is maintained in accordance with other law or as   a routine business practice satisfies the requirements of   Subsection (a).          (e)  A metal recycling entity commits an offense if the   entity intentionally or knowingly fails to maintain a record as   required by this section. An offense under this subsection is a   Class A misdemeanor.          Sec. 1956.125.  INSPECTION OF RECORDS.  On request, a metal   recycling entity shall permit a peace officer, 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, during the entity's usual business hours:                (1)  enter the premises of the entity; and                (2)  inspect a record required to be maintained by   Section 1956.124.          Sec. 1956.126.  EFFECT ON LOCAL LAW. (a) Notwithstanding   Section 1956.003, a county, municipality, or political subdivision   of this state may not:                (1)  with respect to a catalytic converter removed from   a motor vehicle, restrict the purchase, acquisition, sale,   transfer, or possession of the catalytic converter by a person   described by Section 1956.123; or                (2)  alter or add to the recordkeeping requirements   provided by Section 1956.124.          (b)  Subsection (a) does not affect the authority of a   county, municipality, or political subdivision of this state to:                (1)  issue a license or permit as provided by Section   1956.003; or                (2)  inspect a record as provided by Section 1956.125.          Sec. 1956.127.  DECLARATION UPDATE. If the business   activity of a metal recycling entity substantially changes in the   extent to which the entity engages in transactions involving   catalytic converters removed from motor vehicles, the entity shall   update the entity's declaration submitted under Section 1956.022.          Sec. 1956.128.  ADMINISTRATIVE PENALTY. (a) The commission   may impose an administrative penalty under Subchapter R, Chapter   411, Government Code, on a metal recycling entity that:                (1)  violates Section 1956.123 due to the entity's   failure to exercise due diligence in purchasing or acquiring a   catalytic converter removed from a motor vehicle; or                (2)  violates Section 1956.124.          (b)  The amount of the administrative penalty may not exceed   $10,000.          SECTION 3.08.  Subchapter A, Chapter 2305, Occupations Code,   is amended by adding Section 2305.0041 to read as follows:          Sec. 2305.0041.  LIMITATION ON BUYING AND SELLING CATALYTIC   CONVERTERS. A person subject to this subchapter may not buy or sell   a catalytic converter removed from a motor vehicle unless the   catalytic converter was removed from the motor vehicle in   connection with the person's repair of the vehicle.          SECTION 3.09.  The heading to Section 2305.0051, Occupations   Code, is amended to read as follows:          Sec. 2305.0051.  REPAIR RECORDS RELATED TO CATALYTIC   CONVERTERS.          SECTION 3.10.  Section 2305.0051(a), Occupations Code, is   amended to read as follows:          (a)  The owner of a garage or repair shop that sells or   transfers to any person, including a metal recycling entity   registered under Chapter 1956, a catalytic converter that was [the   person] removed in connection with a motor vehicle repair shall   maintain a record of all repairs for the vehicle that includes:                (1)  the name and address of the vehicle's owner; [and]                (2)  the vehicle identification number of the vehicle;   and                (3)  copies of all related invoices including, as   applicable, a notation that a catalytic converter was removed from   the vehicle.          SECTION 3.11.  Section 2305.101(c), Occupations Code, is   amended to read as follows:          (c)  An offense under this chapter that consists of the   violation of Section 2305.0041, 2305.0051, or 2305.007 is a Class A   misdemeanor.          SECTION 3.12.  Chapter 2305, Occupations Code, is amended by   adding Subchapter D to read as follows:   SUBCHAPTER D. RECORDS OF CERTAIN SALES OR TRANSFERS OF CATALYTIC   CONVERTERS REMOVED FROM MOTOR VEHICLES          Sec. 2305.151.  DEFINITION. In this subchapter, "catalytic   converter" has the meaning assigned by Section 1956.001.          Sec. 2305.152.  APPLICABILITY. This subchapter applies only   to a person described by Section 1956.123(1)(A) through (G).          Sec. 2305.153.  RECORD REQUIRED. (a) A person to whom this   subchapter applies shall, for each transaction in which the person   sells or transfers to another person a catalytic converter that is   removed from a motor vehicle, maintain an accurate record of the   transaction until the second anniversary of the date of the   transaction.          (b)  A record is sufficient to meet the requirements of   Subsection (a) if it contains:                (1)  a description made in accordance with the custom   of the trade for the volume of catalytic converters sold or   transferred;                (2)  the name of the person to whom the catalytic   converters were sold or transferred; and                (3)  the date of the transaction.          (c)  A record containing the information described by   Subsection (b) that is maintained in accordance with other law or as   a routine business practice satisfies the requirements of   Subsection (a).          Sec. 2305.154.  OFFENSE:  FAILURE TO MAINTAIN RECORD. (a) A   person commits an offense if the person intentionally or knowingly   fails to maintain a record as required by Section 2305.153.          (b)  An offense under this section is a Class A misdemeanor.          (c)  If conduct that constitutes an offense under this   section also constitutes an offense under another provision of this   chapter, the person may be prosecuted only under this section.          Sec. 2305.155.  INSPECTION OF CERTAIN RECORDS. (a)  In this   section, "licensing authority" and "occupational license" have the   meanings assigned by Section 58.001.          (b)  If an occupational license is required for a person to   engage in a business or occupation described by Section   1956.123(1)(A) through (G), the licensing authority that issues the   occupational license may at a reasonable time:                (1)  enter the premises at which the person engages in   the regulated business or occupation; and                (2)  inspect the records or information required to be   maintained under Section 2305.153.          (c)  Regardless of whether an occupational license is   required, an officer of the Department of Public Safety or another   peace officer may enter the premises of and inspect the records of a   person described by Section 1956.123(1)(A) through (G), as provided   by Subsection (b).          SECTION 3.13.  Section 1006.001(2), Transportation Code, is   amended to read as follows:                (2)  "Economic motor vehicle theft" means motor vehicle   burglary or theft, including theft of a catalytic converter   attached to a motor vehicle, committed for financial gain.          SECTION 3.14.  Sections 1006.153(b) and (e), Transportation   Code, are amended to read as follows:          (b)  An insurer shall pay to the authority a fee equal to $5   [$4] multiplied by the total number of motor vehicle years of   insurance for insurance policies delivered, issued for delivery, or   renewed by the insurer. The fee shall be paid not later than:                (1)  March 1 of each year for a policy delivered,   issued, or renewed from July 1 through December 31 of the previous   calendar year; and                (2)  August 1 of each year for a policy delivered,   issued, or renewed from January 1 through June 30 of that year.          (e)  Out of each fee collected under Subsection (b), $1 shall   be deposited to the credit of the general revenue fund to be used   only for coordinated regulatory and law enforcement activities   intended to detect and prevent catalytic converter theft in this   state. The remainder of each fee collected under Subsection (b) and   any [or an] amount collected under Subsection (b-1) shall be   allocated as follows:                (1)  20 percent shall be appropriated to the authority   for the purposes of this chapter;                (2)  20 percent shall be deposited to the credit of the   general revenue fund, to be used only for criminal justice   purposes; and                (3)  60 percent shall be deposited to the credit of the   designated trauma facility and emergency medical services account   under Section 780.003, Health and Safety Code, to be used only for   the criminal justice purpose of funding designated trauma   facilities, county and regional emergency medical services, and   trauma care systems that provide trauma care and emergency medical   services to victims of accidents resulting from traffic offenses.   ARTICLE 4.  TRANSITIONS          SECTION 4.01.  The change in law made by this Act to Section   1956.017, Occupations Code, does not affect the entitlement of a   member serving on the advisory committee established under that   section immediately before the effective date of this Act to   continue to serve for the remainder of the member's term. As the   terms of members expire after the effective date of this Act, the   director of the Department of Public Safety shall appoint or   reappoint members who have the qualifications required by that   section.          SECTION 4.02.  Not later than October 1, 2023, a metal   recycling entity registered under Chapter 1956, Occupations Code,   on the effective date of this Act shall submit a declaration   described by Section 1956.022(a)(3), as added by this Act, to the   Department of Public Safety.          SECTION 4.03.  Section 1956.022(a), Occupations Code, as   amended by this Act, applies only to an application for a   certificate of registration submitted on or after January 1, 2024.   An application submitted before January 1, 2024, is governed by the   law in effect immediately before the effective date of this Act, and   the former law is continued in effect for that purpose.          SECTION 4.04.  As soon as practicable after the effective   date of this Act, the Department of Public Safety shall adopt rules   necessary to implement the changes in law made by this Act to   Chapter 1956, Occupations Code.          SECTION 4.05.  The changes in law made by this Act to   Sections 28.03, 31.03, and 71.02, Penal Code, apply only to an   offense committed on or after the effective date of this Act. An   offense committed before the effective date of this Act 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.  For purposes   of this section, an offense was committed before the effective date   of this Act if any element of the offense occurred before that date.          SECTION 4.06.  Section 1006.153, Transportation Code, as   amended by this Act, applies only to a fee due on or after the   effective date of this Act. A fee due before the effective date of   this Act is governed by the law in effect on the date the fee was   due, and the former law is continued in effect for that purpose.   ARTICLE 5.  COORDINATION OF STATE AGENCIES TO DETECT AND PREVENT   THEFT OF CATALYTIC CONVERTERS          SECTION 5.01.  (a)  In this section, "authority" means the   Motor Vehicle Crime Prevention Authority.          (b)  Not later than January 1, 2024, the authority shall   develop and implement a plan to coordinate efforts with the   Department of Public Safety, the Texas Department of Licensing and   Regulation, and the Texas Department of Motor Vehicles to:                (1)  review the records of persons regulated by each   agency involving the purchase, acquisition, sale, or transfer of   catalytic converters removed from motor vehicles; and                (2)  respond to suspicious activities that may be   detected through the analysis of the records described by   Subdivision (1) of this subsection.          (c)  The authority may establish a task force composed of   persons regulated by the agencies listed in Subsection (b) of this   section who have substantial business experience in transactions   involving catalytic converters. The authority shall develop the   plan described by Subsection (b) of this section with the   participation of the task force, if established.          (d)  Except as provided by Subsection (c) of this section,   the authority may appoint members to the task force as the authority   determines appropriate.          (e)  In developing and implementing the plan described by   Subsection (b) of this section, the authority shall focus on:                (1)  protecting each step in the legitimate stream of   commerce that begins with the removal of a catalytic converter from   a motor vehicle and includes recycling those catalytic converters   to ensure that the persons regulated by the agencies listed in   Subsection (b) of this section are not the means for inserting   stolen catalytic converters into the stream of commerce; and                (2)  providing risk-based targeting and random   auditing of the records of the persons regulated by the agencies   listed in Subsection (b) of this section.          (f)  The money deposited to the credit of the general revenue   fund for coordinated regulatory and law enforcement activities   intended to detect and prevent catalytic converter theft in this   state as described by Section 1006.153(e), Transportation Code, as   amended by this Act, may be appropriated to the authority for the   activities required by this section.   ARTICLE 6.  EFFECTIVE DATE          SECTION 6.01.  (a)  This Act takes effect immediately if it   receives a vote of two-thirds of all the members elected to each   house, as provided by Section 39, Article III, Texas Constitution.     If this Act does not receive the vote necessary for immediate   effect, this Act takes effect September 1, 2023.          (b)  Sections 1956.001(6-b) and (7), Occupations Code, as   amended by this Act, and Section 1956.030, Occupations Code, as   added by this Act, take effect July 1, 2023.