This chapter is an exercise of the city's police power to promote, through regulation of secondary metal recyclers, the recovery of stolen property. This chapter provides licensing and recordkeeping requirements and enforcement procedures that will enable the police department to identify and recover public and private property composed of certain metal that may have been illegally appropriated.
This chapter is adopted pursuant to the authority of V.T.C.A. Occupations Code § 1946.003 and shall be interpreted with reference to that code. It is the intent of this chapter to impose standards that are in addition to and more stringent than the requirements of V.T.C.A. Occupations Code ch. 1956, but which do not conflict with that law.
(Ordinance 2995, § 1, adopted 5/27/2008)
In this chapter:
Bales of recycled metal.
Metals processed with professional recycling equipment by compression, shearing, or shredding, to a form in which it may be sold by a secondary metal recycler consistent with industry standards.
Check.
A written order to a bank to pay a stated amount of money from the secondary metal recycler's bank account.
Chief of police.
The chief of police for the City of North Richland Hills and his designees.
Ferrous metal.
A metal that contains significant quantities of iron or steel.
Hold notice.
Written notification by the chief of police as herein defined to a secondary metal recycler stating that the secondary metal recycler may not sell, redeem, or dispose of certain regulated metal property that the chief of police has reasonable suspicion to believe has been stolen.
Licensee.
A person in whose name a license has been issued under this chapter or a person listed as an applicant on the application for a license.
Nonferrous metal.
A metal that does not contain significant quantities of iron or steel, including, but not limited to, copper, brass, aluminum, bronze, lead, zinc, nickel, and their alloys.
Passport.
A passport issued by the United States government or issued by another country and recognized by the United States government.
Person.
An individual, partnership, corporation, joint venture, trust, association, and any other legal entity.
Personal identification certificate.
A personal identification card issued by the Texas Department of Public Safety under V.T.C.A. Transportation Code § 521.101, as amended, or a similar card or certificate issued by another state.
Purchase transaction.
A transaction in which a secondary metal recycler gives consideration in exchange for regulated metal property.
Recyclable can.
Aluminum food or beverage containers, used food or beverage containers, or similar food or beverage containers, other than beer or beverage kegs;
Regulated material.
Has the meaning given that term by V.T.C.A. Occupations Code § 1956.001(9), and includes, but is not limited to wiring, pipe, or conduit that is composed of or contains aluminum, copper, bronze or brass.
Regulated metal property.
Any item composed in whole or in part of any ferrous or nonferrous metal, other than an item composed of tin, as defined herein. Regulated metal property shall also include regulated material, as defined herein.
Secondary metal recycler.
Any person who:
(1) 
Is engaged in the business of purchasing, collecting, or soliciting regulated metal property; or
(2) 
Operates or maintains a facility where regulated metal property is purchased or kept for shipment, sale, transfer or salvage.
Seller.
Any person who, in a purchase transaction, receives consideration from a secondary metal recycler in exchange for regulated metal property.
Tin.
Metal consisting predominantly of light sheet metal ferrous scrap, including, large and small household appliances, construction siding, and construction roofing.
(Ordinance 2995, § 1, adopted 5/27/2008)
(a) 
A secondary metal recycler shall maintain an accurate and legible record of each purchase transaction. Each transaction must be recorded separately.
(b) 
The record of each purchase transaction must be in English and contain the following information:
(1) 
The name and address of the secondary metal recycler;
(2) 
The name, initials, or other identifying information, of the individual recording the information required by this section for the secondary metal recycler;
(3) 
The seller's name, address, sex, birth date, and the identifying number from the seller's driver's license, military identification card, passport, or personal identification certificate;
(4) 
The license number, color, and style or make of any motor vehicle in which the regulated metal property is delivered in a purchase transaction, along with a digital photograph of the vehicle which clearly depicts the make, model, and license plates;
(5) 
The date and time of the purchase transaction;
(6) 
The weight, quantity, or volume, made in accordance with the custom of the trade, of the regulated metal property purchased;
(7) 
A general description, made in accordance with the custom of the trade, of the predominant types of regulated metal property purchased in the purchase transaction, along with a digital photograph of the materials;
(8) 
The amount of consideration given in a purchase transaction for the regulated metal property;
(9) 
A signed statement, in a form approved by the chief of police, from the seller in a purchase transaction affirming a legal right of ownership and the right to sign over title to the regulated metal property offered for sale;
(10) 
A digital photograph of the seller that clearly depicts the seller's facial features; and
(11) 
The seller will additionally be required to affix a clear and legible thumb print on the record of purchase.
(c) 
A person selling or attempting to sell regulated metal property to a secondary metal recycler shall:
(1) 
Display to the secondary metal recycler the person's driver's license, military identification card, passport, or personal identification certificate;
(2) 
Sign a written statement provided by the secondary metal recycler affirming that the person is the legal owner of, or is lawfully entitled to sell, the regulated material offered for sale; and
(3) 
Utilize a lawfully operational vehicle to transport the regulated metal property to the secondary metal recycler unless the materials to be submitted consist of recyclable cans having a value of $50.00 or less.
(d) 
The secondary metal recycler or the recycler's agent shall visually verify the accuracy of the identification presented by the seller at the time of each purchase of regulated metal property.
(e) 
After notice from the chief of police of the fraudulent or forged nature of a particular driver's license, military identification card, passport or personal identification certificate, the secondary metal recycler shall refuse to accept said fraudulent or forged document for the purpose of complying with the requirements of this chapter. The notice required under this subsection shall include a copy of the fraudulent or forged driver's license, military identification card, passport or personal identification card.
(f) 
A secondary metal recycler shall maintain on file the information, including photographs, required by this section for not less than three years from the date of the purchase transaction. A secondary metal recycler shall make these records available for inspection by any peace officer, upon request, at the secondary metal recycler's place of business during the usual and customary business hours of the secondary metal recycler.
(g) 
The recordkeeping requirements of this section are in addition to any required by the V.T.C.A. Occupations Code ch. 1956, as amended.
(h) 
It is a defense to prosecution under subsection (b)(10) of this section that:
(1) 
An accurate and recognizable photograph of the seller, taken within the preceding six months, was currently on file with the secondary metal recycler; and
(2) 
At the time of the purchase transaction, the secondary metal recycler, or an employee of the secondary metal recycler, visually verified that the seller was actually the person depicted in the file photograph.
(Ordinance 2995, § 1, adopted 5/27/2008)
(a) 
A secondary metal recycler shall at all times maintain in a prominent place in the secondary metal recycler's place of business, in open view to a seller of regulated metal property, a notice in two-inch lettering that contains the following or similar language approved by the chief of police: "A PERSON ATTEMPTING TO SELL ANY REGULATED METAL PROPERTY MUST PRESENT SUFFICIENT IDENTIFICATION REQUIRED BY CITY OF NORTH RICHLAND HILLS ORDINANCE." This notice is in addition to the notice requirements set forth in V.T.C.A. Occupations Code ch. 1956.
(b) 
The notice required by this section may be contained on a sign that contains another notice required by law to be displayed by the secondary metal recycler.
(Ordinance 2995, § 1, adopted 5/27/2008)
(a) 
A secondary metal recycler shall maintain at its place of business, or otherwise have immediate access to, a facsimile, telecopier or other equipment of similar function on which notifications of stolen property or other notifications relating to regulated metal property may be expeditiously received from the police department. The equipment must be operable at all times during the usual and customary business hours of the secondary metal recycler. The secondary metal recycler shall maintain the facsimile number or other access number of the equipment on file with the chief of police and shall notify the chief of police within 24 hours after any change in the number.
(b) 
The chief of police may provide to secondary metal recyclers notices of:
(1) 
Photocopies of fraudulent or forged driver's license, military identification card, passport, personal identification certificate or other document provided by sellers under this article;
(2) 
Individuals convicted of theft of regulated metal property for offenses arising in the City of North Richland Hills; and
(3) 
Metal items reported or suspected stolen.
(Ordinance 2995, § 1, adopted 5/27/2008)
(a) 
A secondary metal recycler shall conduct all purchase transactions only between the hours of 7:00 a.m. and 7:00 p.m. All payments for purchase transaction shall be by check. Cash payments are prohibited, except that cash payments may be made for up to $50.00 of recyclable cans.
(b) 
A secondary metal recycler shall not purchase any of the following items of regulated metal property without obtaining proof that the seller owns the property (such as by a receipt or bill of sale) or proof that the seller is an employee, agent or contractor who is authorized to sell the item of regulated metal property on behalf of the person, business, or entity owning the property:
(1) 
A utility access cover;
(2) 
A street light or electric pole and any of their fixtures or hardware;
(3) 
A road or bridge guard rail;
(4) 
A street sign, traffic sign or traffic signal and any of their fixtures or hardware;
(5) 
A water meter cover;
(6) 
Any metal marked with any form of the name or initials of a governmental entity, including the City of North Richland Hills, another municipality, and the State of Texas;
(7) 
Property owned by a telephone, cable, electric, water or other utility provider, including communication, transmission and service wire;
(8) 
Railroad equipment, including but not limited to a tie plate, switch plate, E clip or rail tie junction;
(9) 
A funeral marker or funeral vase;
(10) 
An historical marker;
(11) 
Bales of recycled metal;
(12) 
Catalytic converters;
(13) 
A copper or aluminum condensing or evaporator coil from a heating or air conditioning unit; or
(14) 
An aluminum or stainless steel container or bottle designed to hold propane for fueling fork lifts.
(c) 
A secondary metal recycler shall maintain on file the information required by subsection (b) of this section for not less than one year from the date of the purchase of the item of regulated metal property. A secondary metal recycler shall make these records available for inspection by any police officer, upon request, at the secondary metal recycler's place of business during the usual and customary business hours of the secondary metal recycler.
(d) 
A secondary metal recycler shall not purchase any item of regulated metal property from an intoxicated person.
(e) 
No metal recycling entity shall purchase or otherwise receive in the course of business, any item, ownership of which is claimed by any minor, or which may be in the possession or under control of a minor, unless;
(1) 
The only items offered for sale by the minor are recyclable cans; and
(2) 
The purchase transaction does not to exceed $50.00.
(Ordinance 2995, § 1, adopted 5/27/2008)
(a) 
A secondary metal recycler shall, during the usual and customary business hours, allow a peace officer to:
(1) 
Inspect a secondary metal recycler's place of business;
(2) 
Copy or verify the correctness of documents, including records or reports required to be kept under this chapter; and
(3) 
Examine or inspect metal inventory.
(b) 
A secondary metal recycler who fails or refuses to comply with any part of subsection (a) above violates this chapter. The failure or refusal is grounds for suspension or revocation of a license.
(Ordinance 2995, § 1, adopted 5/27/2008)
(a) 
Except as provided in subsection (c) of this section, a secondary metal recycler shall retain possession of purchased regulated metal property at the secondary metal recycler's local place of business and withhold the property from alteration, processing, resale or salvage use for five days after purchase, unless the property is released sooner by written order of the chief of police or by order of a court of competent jurisdiction.
(b) 
Except as provided in subsection (c) of this section, a secondary metal recycler shall segregate all regulated metal property purchased from a seller from regulated metal property purchased from other sellers and attach to the property, or to the container in which the property is held, a label indicating the name of the seller, the date on which the property was purchased and the number of the receipt on which the purchase information is recorded. If in any single purchase transaction, there are multiple items of regulated metal property of the same general type, only one representative item from each type of regulated property must be segregated and labeled in accordance with this subsection.
(c) 
The hold, segregation, and labeling requirements of subsections (a) and (b) of this section do not apply to any item of regulated metal property composed predominantly of ferrous metal material, unless the secondary metal recycler has received notice that the chief of police has, in accordance with this subsection, designated the item or type of item as being subject to those requirements. The chief of police shall periodically review theft statistics on ferrous regulated metal property and establish a list of items or types of items that the chief of police determines are subject to the requirements of subsections (a) and (b). A current list must be maintained on file in the chief of polices designee's office, or in another designated office of the police department, so that it may be inspected by the public during the city's normal business hours. Notice of the list must be given to secondary metal recyclers in accordance with schedules and procedures established by the chief of police. A secondary metal recycler is presumed to have received notice of the list if the police department transmits the list to the facsimile number or access number provided by the secondary metal recycler under section 18-905 of this chapter.
(Ordinance 2995, § 1, adopted 5/27/2008)
(a) 
Whenever a peace officer has reasonable suspicion to believe that certain items of regulated metal property in the possession of a secondary metal recycler are stolen, the peace officer may issue a hold notice. The hold notice must:
(1) 
Identify those specific items of regulated metal property alleged to be stolen and subject to hold; and
(2) 
Inform the secondary metal recycler of the restrictions imposed on the regulated metal property under subsection (b) of this section.
(b) 
A secondary metal recycler may not, for 60 days from the date of receiving a hold notice under this section, process or remove from the secondary metal recycler's place of business any regulated metal property identified in the hold notice, unless the property is released sooner by the peace officer who issued the hold notice or by order of a court of competent jurisdiction. At the expiration of the hold period, the hold is automatically released, and the secondary metal recycler may dispose of the regulated metal property unless otherwise directed by a court of competent jurisdiction.
(Ordinance 2995, § 1, adopted 5/27/2008)
(a) 
A person who violates any provision of this chapter, or who fails to perform a duty required of him under this chapter, commits an offense. A person is guilty of a separate offense for each item of regulated metal property involved in a violation of this chapter. An offense under this chapter is punishable by a fine not to exceed $500.00.
(b) 
It is a defense to prosecution under this chapter that the regulated metal property involved:
(1) 
Was purchased from a charitable, philanthropic, religious, fraternal, civic, patriotic, social or school-sponsored organization or from any organization that is exempt from taxation under Section 501(c)(3) of the Internal Revenue Code, as amended;
(2) 
Was purchased from any public officer acting in an official capacity as a trustee in bankruptcy, executor, administrator or receiver; from any public official acting under judicial process or authority, or from a sale on the execution, or by virtue, of any process issued by a court;
(3) 
Consists of aluminum food or beverage containers, used food or beverage containers, or similar food or beverage containers for the purpose of recycling, other than beer or beverage kegs; or
(4) 
Was purchased from a manufacturing, industrial or other commercial vendor that generates or sells regulated metal property in the ordinary course of its business.
(Ordinance 2995, § 1, adopted 5/27/2008)
(a) 
A person commits an offense if, without a license issued under this article, he:
(1) 
Purchases regulated metal property in the city for resale or salvage use;
(2) 
Operates a business establishment in the city that purports to purchase regulated metal property for resale or salvage use; or
(3) 
In any other manner conducts business in the city as a secondary metal recycler.
(b) 
An application for a license must be made on a form provided by the chief of police. Each applicant must be qualified according to the provisions of this chapter.
(c) 
A person who wishes to purchase regulated metal property for resale or salvage use must sign the application as applicant. If the person is a legal entity, including but not limited to a corporation, partnership, association, or joint venture, each individual who has a 20 percent or greater interest in the business must sign the application for a license as an applicant. Each applicant must meet the requirements of section 18-912, and each applicant will be considered a licensee if a license is granted.
(d) 
It is a defense to prosecution under this section that, at the time of the alleged offense, the person was purchasing regulated metal property for resale or salvage use under the specific authority of a valid license issued by the State of Texas or the United States government. A license must still be obtained under this section for those activities conducted by a secondary metal recycler that are not specifically authorized by a state or federal license.
(Ordinance 2995, § 1, adopted 5/27/2008)
(a) 
The chief of police shall issue a license to an applicant within 30 days after receipt of an application unless it is determined that one or more of the following is true:
(1) 
An applicant is under 18 years of age.
(2) 
An applicant or an applicant's spouse is overdue in payment to the city of taxes, fees, fines or penalties assessed against or imposed upon the applicant or the applicant's spouse.
(3) 
An applicant failed to answer or falsely answered a question or request for information on the application form provided.
(4) 
An applicant or an applicant's spouse has been convicted of two or more offenses under this chapter, other than the offense of conducting business as a secondary metal recycler without a license, within two years immediately preceding the application. The fact that a conviction is being appealed has no effect.
(5) 
An applicant has not obtained a certificate of occupancy for the premises in which the applicant intends to do business, or the business or its location would otherwise be in violation of the City of North Richland Hills Code of Ordinances or any other applicable city ordinance, state or federal law.
(6) 
The license fee required by this chapter has not been paid.
(7) 
An applicant has been convicted of a felony or a Class A misdemeanor involving theft or fraud, including but not limited to theft, robbery, burglary, forgery, criminal simulation, deceptive business practices, securing execution of document by deception, or any other similar state or federal criminal offense, and three years have not elapsed since the termination of any sentence, parole or probation. The fact that a conviction is being appealed has no effect. If three years have elapsed, the chief of police shall, in accordance with V.T.C.A. Occupations Code § 53.023, as amended, determine the present fitness of the applicant to be licensed from the information and evidence presented with the application.
(8) 
An applicant has been convicted of an offense under any federal or state law providing recordkeeping or licensing requirements for persons purchasing or selling regulated metal property, and three years have not elapsed since the termination of any sentence, parole or probation. The fact that a conviction is being appealed has no effect.
(b) 
The license, if granted, must state on its face the name of the person or persons to whom it is granted, the expiration date and the address of the premises for which the license is granted. A license issued pursuant to this chapter is valid only for the location stated in the application. Should any licensee move a place of business from the place stated on the license to a new location, the licensee shall give the chief of police prior written notice and present the license to the chief of police to have the change of location noted on the license.
(c) 
A license must be posted in a conspicuous place at or near the entrance to the licensed premises so that it may be easily read at any time.
(d) 
If the chief of police determines that issuance or renewal of a license should be denied, the chief of police shall send to the applicant or licensee by certified mail, return receipt requested, a written statement of the reasons for the denial and of the applicant or licensee's right to appeal.
(Ordinance 2995, § 1, adopted 5/27/2008)
The annual fee for a license issued under this article is $250.00.
(Ordinance 2995, § 1, adopted 5/27/2008)
Each license will expire one year from the date of issuance and may be renewed only by making application as provided in section 18-911. To ensure re-issuance of a license prior to expiration, application for renewal should be made at least 30 days before the expiration date.
(Ordinance 2995, § 1, adopted 5/27/2008)
(a) 
The chief of police shall suspend a license for a definite period of time, not exceeding 30 days, if the chief of police determines that a licensee, an individual who is a business associate of the licensee in the same or a related business, a corporate officer of the licensee, or an employee of the licensee:
(1) 
Committed, in the aggregate, two or more violations of this chapter within any six-month period; or
(2) 
Intentionally or knowingly impeded or refused to allow an inspection by any police officer authorized under this chapter.
(b) 
The chief of police shall send to the licensee by certified mail, return receipt requested, a written statement of the reasons for the suspension, the date the suspension is to begin, the duration of the suspension, and the licensee's right to appeal.
(c) 
A licensee whose license is suspended may not operate as a secondary metal recycler inside the city during the period of suspension.
(Ordinance 2995, § 1, adopted 5/27/2008)
(a) 
The chief of police shall revoke a license if it is determined that one or more of the following is true:
(1) 
A licensee has given a false statement as to a material matter submitted to the chief of police during the application process.
(2) 
A licensee, an individual who is a business associate of the licensee in the same or a related business or a corporate officer of the licensee, or an employee of the licensee has been convicted within a two-year period of three or more offenses under this chapter. If a conviction is appealed, the time period between conviction and final disposition on appeal of the conviction is not included in calculating the two-year period if the conviction is affirmed.
(3) 
A licensee has been convicted of any felony or of a Class A misdemeanor involving theft or fraud, including but not limited to theft, robbery, burglary, forgery, criminal simulation, deceptive business practices, securing execution of document by deception or any other similar state or federal criminal offense, and three years have not elapsed since the termination of any sentence, parole or probation. The fact that a conviction is being appealed has no effect.
(4) 
A licensee has been convicted of an offense under any federal or state law providing recordkeeping or licensing requirements for persons purchasing or selling regulated metal property, and three years have not elapsed since the termination of any sentence, parole or probation. The fact that a conviction is being appealed has no effect.
(5) 
A cause for suspension under section 18-915 has occurred and the license has already been suspended at least once within the preceding 12 months.
(6) 
The licensee does not qualify for a license under subsection 18-911(a).
(b) 
The chief of police shall send to the licensee by certified mail, return receipt requested, a written statement of the reasons for the revocation and of the licensee's right to appeal.
(c) 
When the chief of police revokes a license, the revocation will continue for one year, and the licensee may not be issued a license for one year from the date revocation became final. If, subsequent to revocation, the chief of police finds that the basis for the revocation action has been corrected or abated, the applicant may be granted a license if at least 90 days have elapsed since the date the revocation became final. If the license was revoked under subsections (a)(3) or (a)(4) of this section, an applicant may not be granted another license within three years of the termination of any sentence, parole or probation.
(Ordinance 2995, § 1, adopted 5/27/2008)
If the chief of police denies issuance or renewal of a license, or suspends or revokes a license, the aggrieved party may appeal the decision of the chief of police to the city manager within 30 days. The action of the chief of police is final unless a timely appeal is made. The filing of an appeal stays the action of the chief of police in suspending or revoking a license until the city manager makes a final decision.
(Ordinance 2995, § 1, adopted 5/27/2008)
A licensee shall not:
(1) 
Transfer a license issued under this chapter to another; or
(2) 
Operate a business engaged in the purchase of regulated metal property for resale or salvage use under the authority of a license at any location other than the address designated in the license application.
(Ordinance 2995, § 1, adopted 5/27/2008)
(a) 
The chief of police shall require that an applicant for a license required by this article file a bond or letter of credit with the application. The bond or letter of credit must be:
(1) 
Satisfactory to the chief of police;
(2) 
In the amount of $5,000.00 for each license;
(3) 
Issued by a United States surety company or financial institution, in the case of the letter of credit authorized to do business in this state; and
(4) 
Valid at the time of the application and remain in effect during the entire term of the license.
(b) 
The aggregate liability of the surety or letter of credit may not exceed the amount of the bond.
(c) 
The bond or letter of credit must be in favor of the city for the use of the city and the use of a person who has a cause of action under this article against the metal recycling entity.
(d) 
The bond or letter of credit must be conditioned on:
(1) 
The metal recycling entity's compliance with this article and rules adopted under this article; and
(2) 
The payment of all amounts that become due to the city or to another person under this article.
(Ordinance 2995, § 1, adopted 5/27/2008)