84R11878 TSR-F
	By: Johnson	H.B. No. 4090

	A BILL TO BE ENTITLED
	AN ACT
	relating to the regulation of metal recycling entities; imposing 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 adding Subdivisions (6-a) and (6-b) to read as follows:
	(6-a) "Explosive component" means any component of an
	explosive weapon containing or consisting of regulated material,
	including exploded or disassembled ammunition, munitions, shell
	casings, spin or fin stabilized projectiles, and shrapnel. The
	term does not include pellet ammunition, shotgun ammunition, or
	ammunition of .50 caliber or less that does not contain explosive
	powder.
	(6-b)  "Explosive weapon" means any explosive or
	incendiary device that is designed, made, or adapted for the
	purpose of inflicting serious bodily injury, death, or substantial
	property damage, or for the principal purpose of causing such a loud
	report as to cause undue public alarm or terror, including an
	explosive or incendiary bomb, grenade, rocket, or mine, or a device
	designed, made, or adapted for delivering or shooting an explosive
	or incendiary device or starting a fire in a time-delayed manner.
	The term includes exploded or unexploded ammunition, munition,
	blasting caps, anti-tank rounds, ordnances, or projectiles. The
	term does not include pellet ammunition, shotgun ammunition, or
	ammunition of .50 caliber or less that does not contain explosive
	powder.
	SECTION 2.  Section 1956.015(a), Occupations Code, is
	amended to read as follows:
	(a)  The department shall establish a statewide electronic
	reporting system to track the sales of regulated metal reported to
	the department under Section 1956.036. The department shall use
	the system to track the sale or attempted sale of an explosive
	weapon or an explosive component reported to the department under
	Section 1956.036(f).
	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 each sale or attempted sale to the entity of an explosive
	weapon or explosive component as soon as possible after the sale or
	attempted sale, but not later than the close of business on the
	entity's first working day after the date of the sale or attempted
	sale.
	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 to a metal recycling entity:
	(1)  an explosive component; or
	(2)  an explosive weapon.
	(c-2)  A metal recycling entity commits an offense if the
	entity knowingly buys:
	(1)  an explosive component; or
	(2)  an explosive weapon.
	(c-3)  Except as provided by Subsection (c-5), an offense
	under Subsection (c-1)(1) or (c-2)(1) is a Class A misdemeanor.
	Except as provided by Subsection (c-5), an offense under Subsection
	(c-1)(2) or (c-2)(2) is a felony of the third degree.
	(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 component or explosive weapon. Except as
	provided by Subsection (c-5), an offense under this subsection is a
	Class A misdemeanor.
	(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 component or explosive weapon.
	(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
	an 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.  Subchapter A-3, Chapter 1956, Occupations Code,
	is amended by adding Section 1956.041 to read as follows:
	Sec. 1956.041.  ADMINISTRATIVE PENALTY. (a) The
	commission, after notice and an opportunity for a hearing, may
	impose an administrative penalty on a person who violates this
	subchapter or Subchapter A-2 or a rule or order of the commission
	under this chapter.
	(b)  The amount of the administrative penalty may not exceed
	$1,000 for each violation. The aggregate penalty for multiple
	violations may not exceed $10,000. Each day a violation occurs or
	continues to occur is a separate violation for the purpose of
	imposing a penalty. In determining the amount of the
	administrative penalty, the commission shall consider:
	(1)  the seriousness of the violation, including the
	nature, circumstances, extent, and gravity of the violation;
	(2)  the economic harm caused by the violation;
	(3)  the history of previous violations;
	(4)  the amount necessary to deter a future violation;
	(5)  efforts to correct the violation; and
	(6)  any other matter that justice may require.
	(c)  The commission by rule shall adopt a standardized
	penalty schedule for a violation based on the criteria listed in
	Subsection (b).
	(d)  The enforcement of the administrative penalty may be
	stayed during the time the order is under judicial review if the
	person pays the penalty to the clerk of the court or files a
	supersedeas bond with the court in the amount of the penalty. A
	person who cannot afford to pay the penalty or file the bond may
	stay the enforcement by filing an affidavit in the manner required
	by the Texas Rules of Civil Procedure for a party who cannot afford
	to file security for costs, subject to the right of the commission
	to contest the affidavit as provided by those rules.
	(e)  The attorney general may sue to collect the
	administrative penalty.
	(f)  A proceeding to impose an administrative penalty is
	considered to be a contested case under Chapter 2001, Government
	Code.
	(g)  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 added 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, 2015.