This section bans deceptive identification and false statements to metal recycling entities, restricts cash payments for regulated material, limits local cash-restriction rules, and allows enforcement actions that can lead to a temporary business shutdown.
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); (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. (a-1) A metal recycling entity may only pay for a purchase of regulated material in the manner provided by Section 1956.0381. (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. (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. Added by Acts 2007, 80th Leg., R.S., Ch. 1316 (S.B. 1154), Sec. 2, eff. September 1, 2007. Amended by: Acts 2011, 82nd Leg., R.S., Ch. 1234 (S.B. 694), Sec. 15, eff. September 1, 2011. Acts 2015, 84th Leg., R.S., Ch. 1065 (H.B. 2187), Sec. 7, eff. September 1, 2015.