Local Regulation of Catalytic Converter Transactions

A recent amendment to Chapter 1956, Occupations Code (SB 224, 88^th Reg. Sess.), may affect the enforceability of certain local ordinances as they apply to Metal Recycling Entities (MREs) that deal in catalytic converters. Specifically, new Section 1956.126 may preempt certain local ordinances relating to who may deal in catalytic converters and certain recordkeeping requirements. That section also expressly preserves certain aspects of local ordinances enacted under the authority of Section 1956.003, Occupations Code.

Local governmental entities may wish to review their ordinances to determine whether they are affected by the bill.  Whether a given local regulation or requirement is compliant with new Section 1956.126 is dependent on the regulation’s specific requirements and the nature of the transactions being regulated.  This is ultimately a matter of legal interpretation appropriately addressed by counsel for the entity.

Occ. Code Sec. 1956.126.  EFFECT ON LOCAL LAW.

• (a)  Notwithstanding Section 1956.003, a county, municipality, or political subdivision of this state may not:
  • (1)  with respect to a catalytic converter removed from a motor vehicle, restrict the purchase, acquisition, sale, transfer, or possession of the catalytic converter by a person described by Section 1956.123; or
  • (2)  alter or add to the recordkeeping requirements provided by Section 1956.124.
• (b)  Subsection (a) does not affect the authority of a county, municipality, or political subdivision of this state to:
  • (1)  issue a license or permit as provided by Section 1956.003; or
  • (2)  inspect a record as provided by Section 1956.125.