Relating to criminal conduct involving the theft, damage, or destruction of copper or brass or involving the unauthorized possession of certain copper or brass material, to transactions of metal recycling entities involving certain copper or brass material, to training on identifying certain copper or brass material, and to studying the effect of certain regulations on incidents of theft of copper or brass material; creating criminal offenses; increasing criminal penalties; providing an administrative penalty.

SB1646 fundamentally alters the scrap metal supply chain by criminalizing the possession and transport of commercial copper and brass without specific written authorization, effective September 1, 2025. Metal Recycling Entities (MREs) are now effectively prohibited from purchasing commercial-grade metals from individuals not representing a verified business entity, with violations triggering immediate felony charges and administrative fines up to $10,000.

SB1646 was authored by Texas Senator Phil King during the Regular Session.

SB1646 was signed into law by Governor Greg Abbott on May 30, 2025.

SB1646 is enforced by County and Municipal Licensing Authorities, Local Law Enforcement (Peace Officers), Public Safety Commission and Texas Department of Public Safety (DPS).

The regulatory priority for SB1646 is rated as "critical". Businesses and organizations should review the legislation to understand potential impacts.

The cost impact of SB1646 is estimated as "medium". This may vary based on industry and implementation requirements.

SB1646 addresses topics including crimes, crimes--against property, criminal procedure, criminal procedure--general and utilities.

Key dates for SB1646: Effective date is 2025-09-01. Rulemaking: Adopt rules prescribing methods for documenting seller types and establishing required documentation for purchasing burnt/salvaged insulated communications wire. (2026-01-01); Develop educational training materials for identifying copper/brass material in coordination with trade associations and stakeholders. (2025-09-01). Consult wit

SB1646 establishes the following penalties: administrative penalty of Up to $10,000 for Metal Recycling Entity (MRE) failure to exercise due diligence in purchasing copper/brass or failure to maintain required records.; criminal penalty of Class A Misdemeanor for MRE intentionally or knowingly failing to maintain accurate transaction records.; criminal penalty of State Jail Felony (enhancable to 3rd Degree Felony) for Unauthorized possession of copper or brass material without proof of ownership or authorization (e.g., bill of lading, service provider status).. Consult with legal counsel for specific applicability to your situation.

SB1646 primarily affects property owners and real estate professionals, utility companies and energy providers, telecommunications providers. These businesses should review the legislation with their legal and compliance teams to understand potential impacts.