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; Tex. Admin. Code 36.60.