According to the Legislative Budget Board (LBB), the fiscal implications of SB 1646 are considered indeterminate. This uncertainty arises primarily due to a lack of reliable data estimating how often the new or expanded criminal offenses—specifically those related to the theft, damage, or unauthorized possession of copper or brass—will be committed. Consequently, while the bill is likely to impose some fiscal burden on state and local correctional systems, the scope of this impact is difficult to quantify.

The bill increases penalties for certain offenses, such as criminal mischief involving critical infrastructure and theft of copper or brass, and introduces a new offense of unauthorized possession of such materials. These enhancements may lead to longer sentences and more incarcerations, thereby placing additional pressure on community supervision systems and correctional facilities at both the state and local levels.

Additionally, SB 1646 introduces a Class A misdemeanor for failing to maintain proper records of copper or brass transactions and imposes administrative requirements on metal recycling entities. These entities would be subject to inspections and, if found in violation, may face administrative penalties of up to $10,000 per incident. While these penalties could generate state revenue, the Comptroller of Public Accounts deems the potential financial gain as uncertain. Similarly, while the Office of Court Administration cannot estimate the fiscal impact, it acknowledges a possibility of increased court costs being assessed, which might modestly enhance revenue.

Importantly, the Department of Public Safety indicated that the bill would not result in any significant fiscal impact for its operations. However, local governments may experience a rise in demand for correctional resources, including community supervision and local jail space, particularly if more individuals are prosecuted under the newly created or enhanced offenses.

SB 1646 offers a targeted and necessary response to the growing threat of copper and brass theft in Texas—particularly where such theft affects critical infrastructure like 9-1-1 systems, telecommunications lines, and emergency services. By creating new offenses for unauthorized possession, enhancing penalties for theft tied to critical systems, and regulating transactions involving scrap metals, the bill aims to close enforcement gaps and deter criminal activity that presents serious public safety risks.

However, this recommendation comes with a key caveat. While the bill seeks to address a clear and escalating black market, its reliance on regulation raises legitimate concerns about potential overreach. Black markets often emerge not from a lack of enforcement but from barriers, inefficiencies, or limitations in the legal market. Increased regulation—particularly of metal recycling entities—must therefore be proportionate, precise, and narrowly tailored to avoid penalizing legitimate commerce or creating new distortions.

As such, amendments are recommended to improve the balance between enforcement and economic liberty. These could include provisions for good-faith protections for recyclers, a voluntary certification or "Trusted Recycler" program, sunset or reporting requirements to evaluate the law’s long-term impacts, and flexible preemption rules that preserve local problem-solving without regulatory fragmentation. These refinements would allow the bill to accomplish its core safety goals while respecting the principles of limited government, free enterprise, and due process.

For these reasons, though Texas Policy Research recommends that lawmakers vote YES on SB 1646, we also strongly recommend that lawmakers consider amendments as described above to better protect against unintended consequences and to ensure the legislation remains both effective and liberty-aligned over time.

• Individual Liberty: The bill enhances public safety by deterring conduct that interferes with access to critical services like 9-1-1 and emergency communication networks. In doing so, it helps safeguard individual liberty in its most fundamental sense—the ability of Texans to live free from violence, harm, or preventable service outages. Ensuring that infrastructure works as intended helps protect people’s rights to life and self-determination in emergencies. However, individual liberty also includes the right to be free from unjustified criminalization or government intrusion. The bill’s creation of new offenses—particularly the unauthorized possession statute—requires careful implementation to avoid inadvertently criminalizing legitimate possession or small-scale salvage activity. Without clear good-faith protections or due process safeguards, there’s a risk of over-enforcement.
• Personal Responsibility: The bill holds individuals and criminal networks accountable for the consequences of their actions—especially when those actions result in disruption to essential public services. By elevating penalties for theft and mischief that impact infrastructure, the bill reinforces the idea that criminal actions carry weightier consequences when they endanger the public. It also promotes responsibility within the business community, requiring metal recyclers to conduct due diligence and maintain transaction records. While this adds a regulatory burden, it reinforces ethical responsibility in supply chain verification.
• Free Enterprise: This is the most delicate area. The bill imposes new recordkeeping, reporting, and purchasing limitations on metal recycling entities. While these rules aim to close off avenues for laundering stolen material, they also add regulatory burdens—especially for small businesses that may lack the administrative capacity to comply. The bill takes some care to exempt legitimate actors and avoid banning transactions outright. However, the lack of a voluntary compliance program or safe harbor provisions could chill legal activity or disincentivize smaller operators from participating in the scrap market. Amendments offering flexible compliance pathways or good-faith defenses would better support free enterprise while still deterring bad actors.
• Private Property Rights: The bill directly protects private and public property owners—particularly utilities, telecom companies, and municipalities—by criminalizing the theft and damage of valuable components of infrastructure. Copper and brass are private assets, and theft of such materials is a direct violation of property rights. By strengthening penalties and improving the traceability of materials in the resale market, SB 1646 upholds the principle that property should not be misappropriated or damaged without consequence.
• Limited Government: The bill asserts stronger state-level oversight while placing limits on local governments' ability to add conflicting regulations. This promotes uniformity and clarity in enforcement—both hallmarks of limited government. The bill also uses administrative penalties and narrowly tailored criminal statutes rather than sweeping prohibitions, which is consistent with restraint in regulatory design. That said, the added layers of regulation and documentation for recyclers do expand the state’s role in private business operations. This can be justified in light of the public safety risk—but it calls for built-in oversight mechanisms, such as sunset reviews or reporting requirements, to ensure the government’s role remains justified and measured over time.