DPS registers and oversees all metals recycling entities (MREs) in Texas. MREs are required to collect certain identifying information from sellers of regulated materials to assist law enforcement with monitoring those who are buying and selling regulated materials.
Update Regarding Possession of an Explosive Device
The Metal Recycling Entities statute prohibits knowingly selling, buying, storing or allowing to be stored on the MRE's premises an explosive device, Tex. Occ. Code 1956.040. The offense is a Class A misdemeanor (or a second degree felony if death or serious bodily injury is caused by detonation).
The statute requires a metal recycling entity report to the department by telephone, by e-mail, or through the department's Internet website the entity's possession of an explosive device unknowingly purchased or otherwise obtained by the entity not later than the close of business on the entity's first working day after the date the possession of the device is discovered, Tex. Occ. Code 1956.036 (f). In other words, if an explosive device is unknowingly purchased, its possession must be reported before the close of the next working day after it is discovered.
A violation of either of the above provisions may result in administrative action against the licensee, independently of whether criminal charges are filed, Tex. Occ. Code 1956.041; 1 Tex. Admin. Code 37, 36.60.
Currently, administrative rule 36.36(c) provides "A metal recycling entity must not purchase, sell, or possess an explosive device, as defined by §1956.001(6-a) of the Act." The MRE industry has raised concerns that the scope of the rule is not limited to knowing violations. The department has determined the rule should be repealed. In the interim, the rule will not be enforced in the absence of intentional or knowing violations.
SENATE BILL 208 – 85TH LEGISLATIVE SESSION
Effective September 1, 2017, MREs are required to report the possession of an explosive device, whether unknowingly purchased or otherwise obtained by the entity, no later than the close of business on the first working day after the explosive device is discovered. Violation of this requirement is a Class A misdemeanor.
SB 208 also expands the violations for which the Department may impose administrative penalties. A proposed penalty schedule, along with other rule amendments, became effective November 2,2017. Please see Texas Metals Program Administrative Rules (PDF).
Cash Transaction Card Renewal
Upon or prior to expiration of a cash transaction card, MREs will need to complete a new Application for Cash Transaction Card form (RSD-44) or update the current application on file. Application on file may only be updated if there are no changes to the application such as address, identification type, etc.
Update application on file (No changes to applicant information):
Update application on file (changes to applicant information):
Cash Transaction Card Issuance:
All MREs are required to issue a cash transaction card to any seller of regulated material being paid by cash or debit card. Cash transaction cards are non-transferable. MREs are required to keep copies of each application and copy of each cash transaction card for two years.
The Application for Cash Transaction Card is available on the DPS website. If an MRE chooses to use their own application, it must first be sent to RSDMetals@dps.texas.gov and approved through DPS per Texas Administrative Code §36.4. The DPS seal must not be displayed on custom cash transaction card applications. The MRE must mail the cash transaction card to the seller’s mailing address listed on the application before paying the seller with cash.
The cash transaction card must follow the guidelines listed in Texas Occupations Code §1956.0382(d) and Texas Administrative Code §36.37. When the seller is applying for a cash transaction card and selling regulated material, sellers must not receive payment by cash or debit. Payments can be issued by check, money order, or direct deposit.
Local jurisdictions that license MREs may have additional requirements. These requirements are permitted as long as they do not conflict with state law. MREs located in such jurisdictions should contact the permitting authority directly with questions about local regulations.
DPS has prepared Battery Reporting Guidelines to assist MREs in identifying batteries for reporting purposes so a reasonable attempt can be made to properly select items from the transaction entry drop-down buttons.
Use of Alternate Forms: RSD-6 and RSD-44
There are two ways to submit alternate forms of Metals Recycling Transaction Statement of Ownership (RSD-6) and Application for Cash Transaction Card (RSD-44):
Stop Theft of Regulated Metals (STORM)
DPS has created a new portal for reporting metals theft and fraud. Visit Stop Theft of Regulated Metals (STORM) and complete the online form. Please be specific and include any and all descriptive information, such as time, date, place and any details regarding the metals theft or metals fraud, and upload any photos you would like to provide.
An email will be sent to each MRE approximately 45 days before certificate expiration. Please check your Junk or Spam Email folder, if you have not seen this email in your inbox. Please direct your Metals Recycling questions to Contact Us, select Metals and complete the form.
Texas Online Metals (TOM) is an online tool to assist law enforcement with metals thefts in Texas. These tools are available 24-hours a day, seven-days a week, to all law enforcement personnel in municipalities, counties and state agencies. For more information on how to get started, please see Texas Online Metals Fact Sheet for Law Enforcement (PDF) or visit Law Enforcement Links.