HBA-ATS H.B. 1405 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 1405 By: McReynolds Business & Industry 2/18/1999 Introduced BACKGROUND AND PURPOSE Under current law, individuals who sell regulated metal to a secondhand metal dealer need to present identification to the dealer. A person who is unable to present identification may nonetheless sell regulated metal by signing a statement that the person is the owner of or is authorized to sell the metal. The dealer need only record the name and place of the individual from whom the regulated material was bought and the signed statement executed by the seller in lieu of presenting identification. Under these standards, regulated metal stolen from construction sites has been sold to dealers. Law enforcement has encountered difficulty in attempting to stop this activity. H.B. 1405 strengthens the law regulating the sale of regulated metals by prohibiting dealers from purchasing metal from sellers who are unable to produce proper identification. In addition, this bill removes the option for sellers to sign a written statement in lieu of presenting identification. It also prohibits a dealer from selling regulated material for ten days after the purchase, which allows law enforcement the time needed to determine whether the materials are stolen. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 1(5), Article 9009, V.T.C.S., to define "personal identification card," rather than "personal identification certificate," as including a driver's license issued by the Department of Public Safety (DPS) under Chapter 521 (Driver's Licenses and Certificates), Transportation Code, a military identification card, a passport, an alien registration card, and a picture identification card issued by another state, in addition to a personal identification certificate issued by DPS. SECTION 2. Amends Section 2, Article 9009, V.T.C.S., as follows: (a) Requires a secondhand metal dealer (dealer) to record a purchase made in the course of the dealer's business from an individual of copper or brass material in excess of 40, rather than 50, pounds. Includes the name and address of each company from which a dealer bought regulated material among the information needed to be recorded for each purchase. Includes the requirement that a dealer must describe with specific phrases, but not general ones, the regulated material purchased among the information needed to be recorded for each purchase. Includes a description of, in addition to the quantity of, the regulated material bought among the information needed to be recorded for each purchase. Includes the dollar amount paid for the material among the information needed to be recorded for each purchase. Deletes the requirement that a signed statement by the seller that states the seller's right of legal ownership or right to sell the regulated materials offered for sale needs to be included among the information recorded for each purchase. Makes a conforming change. (c) Deletes the provision that a person attempting to sell a regulated material to a dealer must provide a signed statement that the seller does not possess a personal identification card in lieu of displaying the card. Provides that a person attempting to sell a regulated material to a dealer must provide to the dealer the license plate number of the vehicle that transported the regulated material to the dealer. Deletes the provision that a person attempting to sell a regulated material to a dealer must sign a written statement that the person is the legal owner of, or is lawfully entitled to sell, the regulated material. Makes conforming changes. (d) Requires a dealer or a dealer's agent to visually verify the seller's personal identification card, rather than verify the identification presented by the seller, at the time of the purchase. Adds a provision prohibiting a dealer from purchasing a regulated material from a seller who does not display an identification card or whose identification card cannot be verified by the dealer. Deletes existing Subsection (d). (e) Redesignated from existing Subsection (f). Makes conforming changes. SECTION 3. Amends Section 3, Article 9009, V.T.C.S., to add a provision prohibiting a dealer from erasing, mutilating, or altering for three years the records the dealer is required to preserve. SECTION 4. Amends Section 5, Article 9009, V.T.C.S., as follows: Sec. 5. New title: TEN DAY HOLD; NOTICE TO HOLD ITEMS; DEALERS. (a) Adds a provision prohibiting a dealer from selling, salvaging, or destroying a regulated material until the expiration of the 10th working day after the material is purchased. (b) Created from existing text. Adds a provision authorizing a peace officer to hold regulated materials suspected of being stolen for a period longer than the days provided in Subsection (a). (c) Redesignated from existing Subsection (b). Makes a conforming change. (d) Redesignated from existing Subsection (c). Authorizes a dealer, at the expiration of the holding period, to dispose of the regulated material unless another disposition of the material has been ordered by a court of competent jurisdiction or the retention period under Subsection (a) has not yet expired. SECTION 5. Amends Section 8, Article 9009, V.T.C.S., by deleting the reference to an "other commercial" vendor from the list of vendors from whom a purchase of a regulated material may be made without triggering the application of this Act. SECTION 6. Effective date: September 1, 1999. SECTION 7. Emergency clause.