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Texas Scrap Metal Laws Changing

Texas metal recycling entitites (MREs) will soon have to start issuing transaction cards to pay customers by cash or debit card.

As of Sept. 1, 2015, Texas scrap yards must comply with the provisions of HB 2187, including the requirement that MREs issue cash transaction cards to their customers.

"Unless a seller had been issued a cash transaction card, a recycler is only able to pay for a purchase of regulated material by check, money order or electronic funds transfer," according to the Texas Department of Public Safety. Cards are non-transferable and MREs must keep copies of each application and a copy of each cash transaction card for two years.

DPS has developed the Application for Cash Transaction Card for use by MREs. It has also drafted proposed administrative rules and amendments, with the advice of the Texas Metals Advisory Committee.

Law changes that impact Metal Recycling Entities under Texas HB 2187 and the proposed administrative rules and amendments include the following:

  • Your records must include the amount of the purchase but you do not have to report it to the state.
  • You must keep a copy of: 
    • a) the seller's cash transaction card or approved application for a cash transaction card if you paid in cash; 
    • b) the debit card receipt and the seller's cash transaction card or approved application for a cash transaction card if you paid by debit card; or 
    • c) the check if you paid by check.
  • You can only pay in cash or by debit card if the seller has a valid cash transaction card issued by you or another metal recycling entity.
  • An application for a cash transaction card must include:
    • the applicant's name, address, sex and birth date; 
    • the identification number from their personal identification document;
    • a digital photograph of the applicant at the time of their application;
    • a clear and legible thumbprint of the applicant; and
    • the applicant's signature.
  • A cash transaction card must include:
    • the seller's name and address;
    • a digital photograph of the seller;
    • an identifying number that is unique to the individual card;
    • the card's expiration date, which may not be later than two years from when the card was issued or renewed; and
    • the name of the metal recycling entity issuing the card and their state issued registration number.
  • A cash transaction card must be laminated or made of a rigid plastic or other durable material that will preserve the legibility of the information contained on the card.
  • All information on a cash transaction card must be legible and in English. 

Watch these videos to see how ScrapyardPro can help you comply with Texas recycling laws:

Texas Cash Cards for Scrapyards

Texas Recycling Laws for State Reports

Or call us at (800) 405-3959 to learn how you can save time preparing Texas scrap cards and reporting purchases to the state.


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Jacksonville, Florida 32216
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We started 20 years ago as Web4Minds, a software development firm that provides custom solutions to meet our clients’ needs. One such client came to us four years ago to develop software to manage their scrapyards.

Upon receiving feedback from the client and working with dozens of others, we realized that we had created a product that stood out among the competition, so we brought our solution to the marketplace as Scrapyard Pro. It is now used at recycling centers across the country, by clients ranging from single-location owners to regional operators.