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RULE §36.55Disqualifying Offenses

(a) Pursuant to Texas Occupations Code, §53.021(a)(1), the department may revoke a certificate of registration or deny an application for a certificate of registration if the applicant, the owner with a controlling interest in the business or, if applicable, the entity's on-site representative has been convicted of a felony or misdemeanor that directly relates to the duties and responsibilities of a metal recycling entity.

(b) The Metals Recycling Entities Act was enacted in order to regulate transactions in the metal recycling industry, with the ultimate purpose of reducing the theft of recyclable metals. However, this goal is dependent on the licensure of individuals who are not predisposed to commit theft or engage in fraud. The accurate and honest reporting of transactional data is critical to the purpose of the program. Accordingly, the department has determined the types of offenses detailed in this subsection directly relate to the duties and responsibilities of metal recycling entities. A conviction for an offense within one (1) or more of the categories listed in paragraphs (1) - (9) of this subsection may result in the denial of an original or renewal application for a certificate of registration or the revocation of a certificate of registration. The Texas Penal Code references provided in this section are for illustrative purposes and are not intended to exclude similar offenses in other state or federal codes. The types of offenses directly related to the duties and responsibilities of metal recycling entities include, but are not limited to:

  (1) Arson, Criminal Mischief, and other Property Damage or Destruction (Texas Penal Code, Chapter 28);

  (2) Burglary and Criminal Trespass (Texas Penal Code, Chapter 30);

  (3) Theft (Texas Penal Code, Chapter 31);

  (4) Fraud (Texas Penal Code, Chapter 32);

  (5) Bribery and Corrupt Influence (Texas Penal Code, Chapter 36);

  (6) Perjury and Other Falsification (Texas Penal Code, Chapter 37);

  (7) Any violation of Texas Occupations Code, §1956.038 or §1956.040;

  (8) Prohibited Weapon - Explosive Weapon (Texas Penal Code, §46.05(a)(1); and

  (9) Component of Explosives (Texas Penal Code, §46.09).

(c) A felony conviction for one of the offenses listed in subsection (b) of this section, a sexually violent offense as defined by Texas Code of Criminal Procedure, Article 62.001, or an offense listed in Texas Code of Criminal Procedure, Article 42.12, §3(g) or Article 42A.054, is disqualifying for ten (10) years from the date of the conviction.

(d) A misdemeanor conviction for one of the offenses listed in subsection (b) of this section or a substantially similar offense is disqualifying for five (5) years from the date of conviction.

(e) For the purposes of this chapter, all references to conviction are to those for which the judgment has become final.

(f) A person who is otherwise disqualified pursuant to the criteria in this section may submit documentation as detailed in paragraphs (1) - (8) of this subsection as evidence of his or her fitness to perform the duties and discharge the responsibilities of a metal recycling entity:

  (1) the extent and nature of the person's past criminal activity;

  (2) the age of the person when the crime was committed;

  (3) the amount of time that has elapsed since the person's last criminal activity;

  (4) the conduct and work activity of the person before and after the criminal activity;

  (5) evidence of the person's rehabilitation or rehabilitative effort while incarcerated or after release;

  (6) letters of recommendation;

  (7) evidence the applicant has:

    (A) maintained a record of steady employment;

    (B) supported the applicant's dependents;

    (C) maintained a record of good conduct; and

    (D) paid all outstanding court costs, supervision fees, fines, and restitution ordered in any criminal case in which the applicant has been convicted; and

  (8) any other evidence relevant to the person's fitness for the certification sought.

(g) The failure to provide the required documentation in a timely manner may result in the proposed action being taken against the application or license.

Source Note: The provisions of this §36.55 adopted to be effective January 10, 2016, 41 TexReg 498; amended to be effective May 14, 2020, 45 TexReg 3143; amended to be effective November 4, 2021, 46 TexReg 7425

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