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A BILL TO BE ENTITLED
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AN ACT
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relating to the capture, use, or recording of certain items for |
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commercial purposes, including the prosecution of criminal |
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offenses regarding unauthorized recordings. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 503.001, Business & Commerce Code, is |
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amended by adding Subsection (e) to read as follows: |
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(e) This section does not apply to a financial institution |
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or an affiliate of a financial institution, as those terms are |
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defined by 15 U.S.C. Section 6809. |
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SECTION 2. Section 641.001(4), Business & Commerce Code, is |
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amended to read as follows: |
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(4) "Recording" means a tangible medium on which |
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sounds, images, or both are recorded or otherwise stored, |
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including: |
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(A) an original phonograph record, disc, tape, |
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audio or video cassette, wire, film, memory card, flash drive, hard |
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drive, data storage device, or other medium now existing or later |
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developed; or |
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(B) a copy or reproduction that wholly or partly |
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duplicates the original. |
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SECTION 3. Section 641.054, Business & Commerce Code, is |
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amended to read as follows: |
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Sec. 641.054. IMPROPER LABELING. (a) A person commits an |
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offense if: |
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(1) for commercial advantage or private financial |
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gain, the person knowingly: |
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(A) advertises, offers for sale, sells, rents, or |
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transports a recording; |
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(B) causes the sale, resale, rental, or |
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transportation of a recording; or |
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(C) possesses a recording for a purpose described |
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by Paragraph (A) or (B); and |
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(2) the outside cover, box, or jacket of the recording |
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does not clearly and conspicuously disclose[:
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[(A)] the actual name and address of the |
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manufacturer[; and
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[(B) the name of the performer or group]. |
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(b) An offense under this section is punishable by: |
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(1) imprisonment for a term of not more than five |
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years, a fine not to exceed $250,000, or both imprisonment and the |
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fine, if: |
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(A) the offense involves [at least] 65 or more |
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improperly labeled [unauthorized] recordings, or the commercial |
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equivalent thereof, during a 180-day period; or |
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(B) the defendant has been previously convicted |
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under this section; |
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(2) imprisonment for a term of not more than two years, |
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a fine not to exceed $250,000, or both imprisonment and the fine, if |
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the offense involves more than seven but fewer than 65 improperly |
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labeled [unauthorized] recordings, or the commercial equivalent |
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thereof, during a 180-day period; or |
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(3) confinement in the county jail for a term of not |
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more than one year, a fine not to exceed $25,000, or both |
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confinement and the fine, if the offense is not otherwise |
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punishable under Subdivision (1) or (2). |
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SECTION 4. Article 42.037, Code of Criminal Procedure, is |
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amended by adding Subsections (t), (u), and (v) to read as follows: |
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(t) If a person is convicted of an offense under Section |
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641.054, Business & Commerce Code, the court shall order the person |
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to make restitution to an owner or lawful producer of a master |
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recording that has suffered financial loss as a result of the |
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offense or to a trade association that represents that owner or |
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lawful producer. The amount of restitution ordered shall be: |
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(1) the greater of: |
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(A) the aggregate wholesale value of the lawfully |
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manufactured and authorized recordings corresponding to the number |
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of nonconforming recordings involved in the offense; or |
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(B) the actual financial loss to the owner, |
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lawful producer, or trade association; and |
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(2) the costs associated with investigating the |
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offense. |
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(u) For purposes of Subsection (t)(1)(A): |
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(1) the calculation of the aggregate wholesale value |
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is based on the average wholesale value of the lawfully |
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manufactured and authorized recordings; and |
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(2) the specific wholesale value of each nonconforming |
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recording is not relevant to the calculation. |
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(v) For purposes of Subsection (t)(1)(B), the possession of |
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a nonconforming recording intended for sale constitutes an actual |
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financial loss to an owner or lawful producer equal to the actual |
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value of the legitimate wholesale purchases displaced by the |
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nonconforming recordings. |
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SECTION 5. (a) Except as provided by Subsection (b) of this |
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section, the changes in law made by this Act apply only to an |
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offense committed on or after the effective date of this Act. An |
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offense committed before the effective date of this Act is governed |
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by the law in effect on the date the offense was committed, and the |
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former law is continued in effect for that purpose. For purposes of |
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this subsection, an offense was committed before the effective date |
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of this Act if any element of the offense occurred before that date. |
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(b) The change in law made by this Act to Section 503.001, |
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Business & Commerce Code, applies only to a violation that occurs on |
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or after the effective date of this Act. A violation that occurs |
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before the effective date of this Act is governed by the law in |
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effect on the date the violation occurred, and the former law is |
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continued in effect for that purpose. |
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SECTION 6. This Act takes effect September 1, 2017. |