Bill Text: TX HB1788 | 2015-2016 | 84th Legislature | Introduced

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Bill Title: Relating to the regulation of salvage vehicle dealers, salvage pool operators, and salvage vehicle rebuilders; expanding the applicability of an occupational license.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2015-04-14 - Left pending in committee [HB1788 Detail]

Download: Texas-2015-HB1788-Introduced.html

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84R4262 TSR-F
By: Walle H.B. No. 1788

A BILL TO BE ENTITLED
AN ACT
relating to the regulation of salvage vehicle dealers, salvage pool
operators, and salvage vehicle rebuilders; expanding the
applicability of an occupational license.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 375.001(11), Health and Safety Code, is
amended to read as follows:
(11) "Vehicle recycler" means a person engaged in the
business of acquiring, dismantling, or preparing for recycling six
or more end-of-life vehicles in a calendar year for the primary
purpose of reselling the vehicles' parts. The term includes a
license holder [salvage vehicle dealer licensed] under Chapter
2302, Occupations Code, and a used automotive parts recycler
licensed under Chapter 2309, Occupations Code.
SECTION 2. The heading to Chapter 2302, Occupations Code,
is amended to read as follows:
CHAPTER 2302. SALVAGE VEHICLE DEALERS, SALVAGE POOL OPERATORS, AND
SALVAGE VEHICLE REBUILDERS
SECTION 3. Section 2302.001, Occupations Code, is amended
by amending Subdivision (1) and adding Subdivisions (4-a), (4-b),
(4-c), (7), (8), and (9) to read as follows:
(1) "Casual sale," "damage," "insurance company,"
"major component part," ["metal recycler," "motor vehicle,"]
"nonrepairable motor vehicle," "nonrepairable vehicle title,"
"out-of-state buyer," "salvage motor vehicle," "salvage vehicle
title," ["salvage vehicle dealer,"] and "used part" have the
meanings assigned by Section 501.091, Transportation Code.
(4-a) "License holder" means a person who holds a
license as a salvage vehicle dealer, salvage pool operator, or
salvage vehicle rebuilder issued under this chapter.
(4-b) "Metal recycler" means a person who:
(A) is engaged in the business of obtaining,
converting, or selling ferrous or nonferrous metal for conversion
into raw material products consisting of prepared grades and having
an existing or potential economic value;
(B) has a facility to convert ferrous or
nonferrous metal into raw material products by a method other than
the exclusive use of hand tools, including the processing, sorting,
cutting, classifying, cleaning, baling, wrapping, shredding,
shearing, or changing the physical form or chemical content of the
metal; and
(C) sells or purchases the ferrous or nonferrous
metal solely for use as raw material in the production of new
products.
(4-c) "Motor vehicle" has the meaning assigned by
Section 501.002, Transportation Code.
(7) "Salvage vehicle dealer" means a person engaged in
this state in the business of acquiring, selling, or otherwise
dealing in nonrepairable motor vehicles, salvage motor vehicles,
or, if incidental to a salvage vehicle dealer's primary business,
used automotive parts, regardless of whether the person holds a
license to engage in that business. The term does not include a
person who:
(A) buys not more than five nonrepairable motor
vehicles or salvage motor vehicles in the same calendar year;
(B) is a licensed used automotive parts recycler;
(C) is a licensed salvage vehicle rebuilder; or
(D) is a licensed salvage pool operator.
(8) "Salvage vehicle rebuilder" means a person who
acquires and repairs, rebuilds, or reconstructs for operation on a
public highway more than five salvage motor vehicles in a calendar
year. The term includes a person who repairs, rebuilds, or
reconstructs for operation on a public highway more than five
salvage motor vehicles in a calendar year that are acquired by
another person and returned to that person after the repair,
rebuilding, or reconstruction.
(9) "Used parts dealer" and "used automotive parts
recycler" have the meaning assigned to "used automotive parts
recycler" by Section 2309.002.
SECTION 4. Sections 2302.0015(b) and (c), Occupations Code,
are amended to read as follows:
(b) For the purpose of enforcing or administering this
chapter, [or] Chapter 501 or 502, Transportation Code, or board
rules, a member of the board, an employee or agent of the board or
department, a member of the Public Safety Commission, an officer of
the Department of Public Safety, or a peace officer may at a
reasonable time:
(1) enter the premises of a business regulated under
one of those chapters; [and]
(2) inspect or copy any document, record, vehicle,
part, or other item regulated under one of those chapters; and
(3) inspect the inventory on the premises of a license
holder.
(c) A person described by Subsection (a) or an employee of a
person described by Subsection (a):
(1) may not refuse or interfere with an entry or
inspection under this section; [and]
(2) shall cooperate fully with a person conducting an
inspection under this section to assist in the recovery of stolen
motor vehicles and parts and to prevent the sale or transfer of
stolen motor vehicles and parts; and
(3) on demand shall give to a person conducting an
inspection under this section a copy of a record required to be
maintained under this chapter, Chapter 501 or 502, Transportation
Code, or board rule, including an inventory record or bill of sale.
SECTION 5. Section 2302.005, Occupations Code, is amended
to read as follows:
Sec. 2302.005. APPLICABILITY OF CERTAIN STATUTES, RULES,
MUNICIPAL ORDINANCES, [LICENSES,] AND COUNTY ORDERS [PERMITS]. A
[This chapter:
[(1) is in addition to any municipal ordinance
relating to the regulation of a] person who deals in nonrepairable
motor vehicles or salvage motor vehicles, including a salvage
vehicle dealer, salvage pool operator, salvage vehicle rebuilder,
or salvage vehicle agent, shall comply with:
(1) this chapter;
(2) Chapters 501, 502, and, if applicable, 503,
Transportation Code;
(3) board rules;
(4) all applicable county orders [or used parts]; and
(5) all applicable municipal ordinances
[(2) does not prohibit the enforcement of a
requirement of a municipal license or permit that is related to an
activity regulated under this chapter].
SECTION 6. Subchapter B, Chapter 2302, Occupations Code, is
amended by adding Section 2302.0521 to read as follows:
Sec. 2302.0521. DEPOSIT OF REVENUE. Notwithstanding any
other law, all money collected by the board under this chapter shall
be deposited in the state treasury to the credit of the Texas
Department of Motor Vehicles.
SECTION 7. Section 2302.101, Occupations Code, is amended
to read as follows:
Sec. 2302.101. LICENSE REQUIRED [FOR SALVAGE VEHICLE
DEALER]. Unless a person holds a [salvage vehicle dealer] license
issued under this chapter, the person may not:
(1) act as a salvage vehicle dealer, salvage pool
operator, or salvage vehicle rebuilder; or
(2) store or display a motor vehicle as an agent or
escrow agent of an insurance company.
SECTION 8. Section 2302.102, Occupations Code, is amended
to read as follows:
Sec. 2302.102. [SALVAGE VEHICLE DEALER] LICENSE TYPES
[CLASSIFICATION]. (a) The department may issue one or more of the
following licenses to a person [shall classify a salvage vehicle
dealer] according to the type of activity performed by the person:
(1) salvage vehicle dealer license;
(2) salvage pool operator license; or
(3) salvage vehicle rebuilder license [dealer].
(b) A person [salvage vehicle dealer] may not engage in
activities as a salvage vehicle dealer, salvage pool operator, or
salvage vehicle rebuilder [of a particular classification] unless
the person [dealer] holds a license issued by the department
authorizing that activity [with an endorsement in that
classification].
(c) A person who engages in business as a salvage vehicle
rebuilder and holds a salvage vehicle rebuilder license must also
hold the appropriate general distinguishing number issued under
Chapter 503, Transportation Code, unless the salvage vehicle
rebuilder only repairs, rebuilds, or reconstructs salvage motor
vehicles owned by another person.
SECTION 9. Section 2302.103(a), Occupations Code, is
amended to read as follows:
(a) To apply for a salvage vehicle dealer, salvage pool
operator, or salvage vehicle rebuilder license, a person must
submit to the department an application on a form prescribed by the
department and the application fee.
SECTION 10. Section 2302.104, Occupations Code, is amended
to read as follows:
Sec. 2302.104. CONTENTS OF APPLICATION. (a) An application
for a [salvage vehicle dealer] license must include:
(1) the name, business address, e-mail address, and
business telephone number of the applicant;
(2) each [the] name under which the applicant proposes
to conduct business;
(3) the location, by number, street, county, and
municipality, where [of each office at which] the applicant
proposes to conduct business;
(4) a statement indicating whether the applicant
previously applied for a license under this chapter and, if so, a
statement indicating the result of the previous application and
indicating whether the applicant has ever been the holder of a
license issued under this chapter that was revoked or suspended;
(5) an acknowledgment that the applicant is familiar
with and in compliance with municipal ordinances, county orders,
and state laws governing the activities covered by the license for
which the applicant is applying at the location specified in the
application [a statement of the previous history, record, and
associations of the applicant to the extent sufficient to
establish, to the satisfaction of the department, the business
reputation and character of the applicant];
(6) the applicant's social security number and federal
tax identification number, if any;
(7) the applicant's state sales tax number; and
(8) any other information required by rules adopted
under this chapter.
(b) In addition to the information required by Subsection
(a), the application of a corporation must include:
(1) the state of its incorporation;
(2) the name, address, date of birth, and social
security number of each principal officer or director of the
corporation; and
(3) [a statement of the previous history, record, and
associations of each officer and each director to the extent
sufficient to establish, to the satisfaction of the department, the
business reputation and character of the applicant; and
[(4)] a statement showing whether an officer,
director, or employee of the applicant has been refused a license
under this chapter or a similar license issued by another
jurisdiction [as a salvage vehicle dealer] or has been the holder of
a license issued under this chapter or a similar license issued by
another jurisdiction that was revoked or suspended.
(c) In addition to the information required by Subsection
(a), the application of a partnership must include:
(1) the name, address, date of birth, and social
security number of each owner or partner; and
(2) [a statement of the previous history, record, and
associations of each owner and each partner to the extent
sufficient to establish, to the satisfaction of the department, the
business reputation and character of the applicant; and
[(3)] a statement showing whether an owner, partner, or
employee of the applicant has been refused a license under this
chapter or a similar license issued by another jurisdiction [as a
salvage vehicle dealer] or has been the holder of a license issued
under this chapter or a similar license issued by another
jurisdiction that was revoked or suspended.
SECTION 11. The heading to Section 2302.105, Occupations
Code, is amended to read as follows:
Sec. 2302.105. REVIEW OF APPLICATION [DEPARTMENT
INVESTIGATION].
SECTION 12. Section 2302.105(a), Occupations Code, is
amended to read as follows:
(a) The department shall review an application for the
issuance or renewal of or an amendment to a license issued under
this chapter and may investigate the applicant to determine
compliance with this chapter, board rules, and if applicable,
Chapter 503, Transportation Code [not issue a license under this
chapter until the department completes an investigation of the
applicant's qualifications].
SECTION 13. Section 2302.106(a), Occupations Code, is
amended to read as follows:
(a) The department shall issue a license to an applicant who
meets the license qualifications adopted under this chapter and
pays the required fee [fees].
SECTION 14. Sections 2302.107(b), (c), and (d), Occupations
Code, are amended to read as follows:
(b) A person is entitled to a salvage vehicle agent license
on application to the department, payment of the required fee, and
authorization from a salvage vehicle dealer to operate under the
salvage vehicle dealer's license.
(c) A salvage vehicle dealer may authorize not more than
five persons to operate as salvage vehicle agents under the salvage
vehicle dealer's license.
(d) A salvage vehicle agent may acquire, sell, or otherwise
deal in [,] nonrepairable or salvage motor vehicles as directed by
the authorizing salvage vehicle dealer.
SECTION 15. Section 2302.108, Occupations Code, is amended
by adding Subsection (e) to read as follows:
(e) The board may take disciplinary action against a salvage
vehicle dealer for an act or omission of a salvage vehicle agent
that was authorized by the salvage vehicle dealer or a person acting
as a representative of the salvage vehicle dealer and that is
grounds for the denial, revocation, or suspension of a salvage
vehicle dealer's license.
SECTION 16. The heading to Subchapter D, Chapter 2302,
Occupations Code, is amended to read as follows:
SUBCHAPTER D. LICENSE TERM, EXPIRATION, AND RENEWAL
SECTION 17. Section 2302.151, Occupations Code, is amended
to read as follows:
Sec. 2302.151. LICENSE TERM AND EXPIRATION. (a) A license
issued under this chapter is valid for the period prescribed by the
board [expires on the first anniversary of the date of issuance].
(b) The department may issue a license for a term of less
than the period prescribed under Subsection (a) to coordinate
expiration dates of licenses held by a person.
(c) The board by rule may implement a system under which
licenses expire on various dates during the year. For a year in
which a license expiration date is changed, the fee for the license
shall be prorated so that the license holder pays only that portion
of the fee that is allocable to the number of months during which
the license is valid. On renewal of the license on the new
expiration date, the entire license renewal fee is payable.
(d) If the board prescribes the term of a license under this
chapter for a period other than one year, the board shall prorate
the applicable annual fee required under this chapter as necessary
to reflect the term of the license.
(e) A person whose license has expired may not engage in the
activities that require a license until the license has been
renewed under this subchapter.
SECTION 18. Section 2302.152, Occupations Code, is amended
to read as follows:
Sec. 2302.152. NOTICE OF EXPIRATION. Not later than the
31st day before the expiration date of a person's license, the
department shall send [written] notice of the impending expiration
to the person at the person's last known address according to
department records.
SECTION 19. Sections 2302.153(a) and (d), Occupations Code,
are amended to read as follows:
(a) A person who is otherwise eligible to renew a license
issued under this chapter may renew an unexpired license by
submitting a completed renewal application and paying the required
renewal fee to the department on or before the expiration date of
the license.
(d) A person whose license has been expired for more than 90
days [one year or longer] may not renew the license. The person may
obtain a new license by complying with the requirements and
procedures for obtaining an original license.
SECTION 20. Section 2302.201, Occupations Code, is amended
to read as follows:
Sec. 2302.201. DUTIES ON ACQUISITION OF NONREPAIRABLE OR
SALVAGE MOTOR VEHICLE. (a) Except as provided by Section 501.0935,
Transportation Code, a license holder [salvage vehicle dealer] who
acquires ownership of a nonrepairable or salvage motor vehicle from
an owner must receive from the owner the motor vehicle's title, [a]
properly assigned to the license holder [title].
(b) The license holder [dealer] shall comply with
Subchapter E, Chapter 501, Transportation Code, and board rules.
SECTION 21. Section 2302.202, Occupations Code, is amended
to read as follows:
Sec. 2302.202. RECORDS OF PURCHASES. A license holder
[salvage vehicle dealer] shall maintain a record of each
nonrepairable or salvage motor vehicle purchased or sold by the
license holder [dealer].
SECTION 22. Section 2302.203, Occupations Code, is amended
to read as follows:
Sec. 2302.203. REGISTRATION OF NEW BUSINESS LOCATION.
Before moving a place of business or opening an additional place of
business, a license holder [salvage vehicle dealer] must apply to
the department to amend the license to reflect [register] the new
location [with the department]. A license holder may not engage in
a licensed activity from a new location until the license is amended
by the department to reflect the new location.
SECTION 23. Section 2302.204, Occupations Code, is amended
to read as follows:
Sec. 2302.204. CASUAL SALES. This chapter does not apply to
a person who purchases not more [fewer] than five nonrepairable
motor vehicles or salvage motor vehicles during a calendar year
from a license holder or [salvage vehicle dealer,] an insurance
company [or salvage pool operator] in a casual sale at auction,
except that:
(1) the board shall adopt rules as necessary to
regulate casual sales by license holders or [salvage vehicle
dealers,] insurance companies [, or salvage pool operators] and to
enforce this section; and
(2) a license holder or [salvage vehicle dealer,]
insurance company [, or salvage pool operator] who sells a motor
vehicle in a casual sale shall comply with those rules and
Subchapter E, Chapter 501, Transportation Code.
SECTION 24. The heading to Subchapter F, Chapter 2302,
Occupations Code, is amended to read as follows:
SUBCHAPTER F. ADDITIONAL DUTIES OF LICENSE HOLDER [SALVAGE VEHICLE
DEALER] IN CONNECTION WITH MOTOR VEHICLE COMPONENT PARTS
SECTION 25. Section 2302.252, Occupations Code, is amended
to read as follows:
Sec. 2302.252. REMOVAL OF LICENSE PLATES; INVENTORY. (a)
Immediately on receipt of a motor vehicle, nonrepairable motor
vehicle, or salvage motor vehicle, a license holder [salvage
vehicle dealer] shall remove any [unexpired] license plates [from
the vehicle] and place the license plates in a secure, locked place.
(b) A license holder [salvage vehicle dealer] shall
maintain on a form provided by the department an inventory of
[unexpired] license plates removed under Subsection (a). The
inventory must include:
(1) each license plate number;
(2) the make of the motor vehicle, nonrepairable motor
vehicle, or salvage motor vehicle from which the license plate was
removed;
(3) the motor number of the motor [that] vehicle,
nonrepairable motor vehicle, or salvage motor vehicle; and
(4) the vehicle identification number of the motor
[that] vehicle, nonrepairable motor vehicle, or salvage motor
vehicle.
SECTION 26. Section 2302.254, Occupations Code, is amended
to read as follows:
Sec. 2302.254. RECORD OF PURCHASE; INVENTORY OF PARTS. (a)
A license holder [salvage vehicle dealer] shall keep an accurate
and legible inventory of each used component part purchased by or
delivered to the license holder [dealer]. The inventory must
contain a record of each part that includes:
(1) the date of purchase or delivery;
(2) the name and [, age,] address [, sex, and driver's
license number] of the seller and a legible photocopy of the
seller's current photo identification containing a unique
identification number and expiration date [driver's license];
(3) the license plate number of the motor vehicle in
which the part was delivered;
(4) a complete description of the part, including the
type of material and, if applicable, the make, model, color, and
size of the part; and
(5) the vehicle identification number of the motor
vehicle, nonrepairable motor vehicle, or salvage motor vehicle from
which the part was removed.
(a-1) The identification document required by Subsection
(a) must be a:
(1) driver's license or identification card issued by
this state, or another state of the United States;
(2) United States or foreign passport;
(3) United States military identification card;
(4) North Atlantic Treaty Organization identification
document or identification document issued under a status of forces
agreement; or
(5) United States Department of Homeland Security,
United States Citizenship and Immigration Services, or United
States Department of State identification document.
(b) Instead of the information required by Subsection (a), a
license holder [salvage vehicle dealer] may record:
(1) the name of the person who sold the part or the
motor vehicle, nonrepairable motor vehicle, or salvage motor
vehicle from which the part was obtained; and
(2) the Texas certificate of inventory number or the
federal taxpayer identification number of that person.
(c) The department shall prescribe the form of the record
required under Subsection (a) and shall make the form available to
license holders [salvage vehicle dealers].
(d) This section does not apply to [:
[(1)] an interior component part or special accessory
part that is from a motor vehicle, nonrepairable motor vehicle, or
salvage motor vehicle more than 10 years of age[; or
[(2) a part delivered to a salvage vehicle dealer by a
commercial freight line or commercial carrier].
SECTION 27. Sections 2302.255(a), (b), (c), and (e),
Occupations Code, are amended to read as follows:
(a) A license holder [salvage vehicle dealer] shall:
(1) assign a unique inventory number to each
transaction in which the license holder [dealer] purchases or takes
delivery of a component part;
(2) attach the unique inventory number to each
component part the license holder [dealer] obtains in the
transaction; and
(3) retain each component part in its original
condition on the business premises of the license holder [dealer]
for at least three calendar days, excluding Sundays, after the date
the license holder [dealer] obtains the part.
(b) An inventory number attached to a component part under
Subsection (a) may not be removed while the part remains in the
inventory of the license holder [salvage vehicle dealer].
(c) A license holder [salvage vehicle dealer] shall record a
component part on an affidavit bill of sale if:
(1) the component part does not have a vehicle
identification number or the vehicle identification number has been
removed; or
(2) the vehicle identification number of the vehicle
from which the component part was removed is not available.
(e) This section does not apply to the purchase by a license
holder [salvage vehicle dealer] of a nonoperational engine,
transmission, or rear axle assembly from another license holder
[salvage vehicle dealer] or an automotive-related business.
SECTION 28. Section 2302.256, Occupations Code, is amended
to read as follows:
Sec. 2302.256. MAINTENANCE OF RECORDS. A license holder
[salvage vehicle dealer] shall keep a record required under this
subchapter on a form prescribed by the department. The license
holder [dealer] shall maintain two copies of each record required
under this subchapter until the first anniversary of the date the
license holder [dealer] sells or disposes of the item for which the
record is maintained.
SECTION 29. Section 2302.257(a), Occupations Code, is
amended to read as follows:
(a) On demand, a license holder [salvage vehicle dealer]
shall surrender to the department:
(1) [for cancellation] a certificate of title or
authority;
(2) a[,] sales receipt or transfer document;
(3) a[,] license plate;
(4) an[, or] inventory list; or
(5) any record or document the license holder [that
the dealer] is required to possess or maintain.
SECTION 30. Sections 2302.351(b) and (c), Occupations Code,
are amended to read as follows:
(b) If a license holder [salvage vehicle dealer], an
employee of the license holder [dealer] acting in the course of
employment, or a salvage vehicle agent operating under the salvage
vehicle dealer's license is convicted of more than one offense
under Section 2302.353(a), the district or county attorney for a
county in which the license holder's [dealer's] salvage business is
located may bring an action in that county to enjoin the license
holder's [dealer's] business operations for a period of at least one
year.
(c) An action under Subsection (b) must be brought in the
name of the state. If judgment is in favor of the state, the court
shall:
(1) enjoin the license holder [dealer] from
maintaining or participating in the business of a salvage vehicle
dealer, salvage pool operator, or salvage vehicle rebuilder for a
definite period of at least one year or indefinitely, as determined
by the court; and
(2) order that the license holder's [dealer's] place
of business be closed for the same period.
SECTION 31. Section 2302.354, Occupations Code, is amended
by adding Subsection (e) to read as follows:
(e) Notwithstanding any other law, an administrative
penalty recovered under this chapter shall be deposited in the
state treasury to the credit of the Texas Department of Motor
Vehicles.
SECTION 32. Section 2309.002, Occupations Code, is amended
by amending Subdivision (1) and adding Subdivision (8) to read as
follows:
(1) "Insurance company," ["metal recycler," "motor
vehicle,"] "nonrepairable motor vehicle," "nonrepairable vehicle
title," "salvage motor vehicle," and "salvage vehicle title[," and
"salvage vehicle dealer]" have the meanings assigned by Section
501.091, Transportation Code.
(8) "Metal recycler," "motor vehicle," and "salvage
vehicle dealer" have the meanings assigned by Section 2302.001.
SECTION 33. Section 2309.004, Occupations Code, is amended
to read as follows:
Sec. 2309.004. APPLICABILITY OF CHAPTER TO PERSONS LICENSED
UNDER CHAPTER 2302 [SALVAGE VEHICLE DEALERS]. (a) Except as
provided by Subsection (b), this chapter does not apply to a
transaction in which a salvage vehicle dealer, salvage pool
operator, or salvage vehicle rebuilder is a party.
(b) This chapter applies to a salvage vehicle dealer,
salvage pool operator, or salvage vehicle rebuilder who deals in
used automotive parts as more than an incidental part of that
person's [the salvage vehicle dealer's] primary business.
SECTION 34. The heading to Section 391.127, Transportation
Code, is amended to read as follows:
Sec. 391.127. PERSONS LICENSED UNDER CHAPTER 2302,
OCCUPATIONS CODE [SALVAGE VEHICLE DEALER LICENSE].
SECTION 35. Sections 501.091(2), (7), (11), (14), and (17),
Transportation Code, are amended to read as follows:
(2) "Casual sale" means the sale by a license holder
under Chapter 2302, Occupations Code, [salvage vehicle dealer] or
an insurance company of five or fewer nonrepairable motor vehicles
or salvage motor vehicles to the same person during a calendar year,
but does not include:
(A) a sale at auction to a license holder under
Chapter 2302, Occupations Code [salvage vehicle dealer];
(B) a sale to an insurance company, out-of-state
buyer, or governmental entity; or
(C) the sale of an export-only motor vehicle to a
person who is not a resident of the United States.
(7) "Metal recycler" has the meaning assigned by
Section 2302.001, Occupations Code [means a person who:
[(A) is engaged in the business of obtaining,
converting, or selling ferrous or nonferrous metal for conversion
into raw material products consisting of prepared grades and having
an existing or potential economic value;
[(B) has a facility to convert ferrous or
nonferrous metal into raw material products by method other than
the exclusive use of hand tools, including the processing, sorting,
cutting, classifying, cleaning, baling, wrapping, shredding,
shearing, or changing the physical form or chemical content of the
metal; and
[(C) sells or purchases the ferrous or nonferrous
metal solely for use as raw material in the production of new
products].
(11) "Out-of-state buyer" means a person licensed in
an automotive business by another state or jurisdiction if the
department has listed the holders of such a license as permitted
purchasers of salvage motor vehicles or nonrepairable motor
vehicles based on substantially similar licensing requirements and
on whether a person [salvage vehicle dealers] licensed under
Chapter 2302, Occupations Code, is [in Texas are] permitted to
purchase salvage motor vehicles or nonrepairable motor vehicles in
the other state or jurisdiction.
(14) "Rebuilder" has the meaning assigned to "salvage
vehicle rebuilder" by Section 2302.001, Occupations Code [means a
person who acquires and repairs, rebuilds, or reconstructs for
operation on a public highway, more than five salvage motor
vehicles in a calendar year].
(17) "Salvage vehicle dealer" has the meaning assigned
by Section 2302.001, Occupations Code [means a person engaged in
this state in the business of acquiring, selling, repairing,
rebuilding, reconstructing, or otherwise dealing in nonrepairable
motor vehicles, salvage motor vehicles, or, if incidental to a
salvage motor vehicle dealer's primary business, used automotive
parts regardless of whether the person holds a license issued by the
department to engage in that business. The term does not include an
unlicensed person who:
[(A) casually repairs, rebuilds, or reconstructs
not more than five nonrepairable motor vehicles or salvage motor
vehicles in the same calendar year;
[(B) buys not more than five nonrepairable motor
vehicles or salvage motor vehicles in the same calendar year; or
[(C) is a licensed used automotive parts recycler
if the sale of repaired, rebuilt, or reconstructed nonrepairable
motor vehicles or salvage motor vehicles is more than an incidental
part of the used automotive parts recycler's business].
SECTION 36. Sections 501.095(a) and (b), Transportation
Code, are amended to read as follows:
(a) If the department has not issued a nonrepairable vehicle
title, nonrepairable record of title, salvage vehicle title, or
salvage record of title for the motor vehicle and a comparable
out-of-state ownership document for the motor vehicle has not been
issued by another state or jurisdiction, a business or governmental
entity described by Subdivisions (1)-(3) may sell, transfer, or
release a nonrepairable motor vehicle or salvage motor vehicle only
to a person who is:
(1) a license holder under Chapter 2302, Occupations
Code [licensed salvage vehicle dealer], a used automotive parts
recycler under Chapter 2309, Occupations Code, or a metal recycler
under Chapter 2302, Occupations Code;
(2) an insurance company that has paid a claim on the
nonrepairable or salvage motor vehicle; or
(3) a governmental entity.
(b) A person, other than a salvage vehicle dealer, salvage
pool operator, salvage vehicle rebuilder, [a] used automotive parts
recycler, or [an] insurance company licensed to do business in this
state, who acquired ownership of a nonrepairable or salvage motor
vehicle that has not been issued a nonrepairable vehicle title,
nonrepairable record of title, salvage vehicle title, salvage
record of title, or a comparable ownership document issued by
another state or jurisdiction shall, before selling the motor
vehicle, surrender the properly assigned title for the motor
vehicle to the department and apply to the department for the
appropriate ownership document.
SECTION 37. Sections 501.099(b), (c), (d), (e), and (g),
Transportation Code, are amended to read as follows:
(b) A person may purchase a nonrepairable motor vehicle or a
salvage motor vehicle only if:
(1) the person purchases the motor vehicle from a
license holder under Chapter 2302, Occupations Code, [licensed
salvage vehicle dealer] or a governmental entity;
(2) the motor vehicle has been issued a nonrepairable
vehicle title or a salvage vehicle title; and
(3) the purchaser certifies to the seller on a form
provided by the department that the purchaser will:
(A) remove the motor vehicle from the United
States; and
(B) not return the motor vehicle to any state of
the United States as a motor vehicle titled or registered under its
manufacturer's vehicle identification number.
(c) A license holder under Chapter 2302, Occupations Code,
[salvage vehicle dealer] or a governmental entity that sells a
nonrepairable motor vehicle or a salvage motor vehicle to a person
who is not a resident of the United States shall, before the sale of
the motor vehicle, obtain a copy, photocopy, or other accurate
reproduction of a valid identification card, identification
certificate, or an equivalent document issued to the purchaser by
the appropriate authority of the jurisdiction in which the
purchaser resides that bears a photograph of the purchaser and is
capable of being verified using identification standards adopted by
the United States or the international community.
(d) The department by rule shall establish a list of
identification documents that are valid under Subsection (c) and
provide a copy of the list to each license holder under Chapter
2302, Occupations Code, [of a salvage vehicle dealer license] and
to each appropriate governmental entity.
(e) A license holder under Chapter 2302, Occupations Code,
[salvage vehicle dealer] or a governmental entity that sells a
nonrepairable motor vehicle or a salvage motor vehicle to a person
who is not a resident of the United States shall:
(1) stamp on the face of the title so as not to obscure
any name, date, or mileage statement on the title the words "FOR
EXPORT ONLY" in capital letters that are black; and
(2) stamp in each unused reassignment space on the
back of the title the words "FOR EXPORT ONLY" and print the number
of the license holder's [dealer's salvage vehicle] license or the
name of the governmental entity, as applicable.
(g) A license holder under Chapter 2302, Occupations Code,
[salvage vehicle dealer] or governmental entity who sells a
nonrepairable motor vehicle or a salvage motor vehicle under this
section to a person who is not a resident of the United States shall
keep on the business premises of the license holder [dealer] or
entity until the third anniversary of the date of the sale:
(1) a copy of each document related to the sale of the
vehicle; and
(2) a list of all vehicles sold under this section that
contains:
(A) the date of the sale;
(B) the name of the purchaser;
(C) a photocopy [the name] of [the country that
issued] the identification document provided by the purchaser[, as
shown on the document]; and
(D) the vehicle identification number.
SECTION 38. Section 501.1003, Transportation Code, is
amended to read as follows:
Sec. 501.1003. [SALVAGE DEALER] RESPONSIBILITIES OF
CERTAIN LICENSE HOLDERS. (a) If a license holder under Chapter
2302, Occupations Code, [salvage vehicle dealer] acquires
ownership of a nonrepairable motor vehicle or salvage motor vehicle
for the purpose of dismantling, scrapping, or destroying the motor
vehicle, the license holder [dealer] shall, before the 31st day
after the date the license holder [dealer] acquires the motor
vehicle, submit to the department a report stating that the motor
vehicle will be dismantled, scrapped, or destroyed. The license
holder [dealer] shall:
(1) make the report in a manner prescribed by the
department; and
(2) submit with the report a properly assigned
manufacturer's certificate of origin, regular certificate of
title, nonrepairable vehicle title, salvage vehicle title, or
comparable out-of-state ownership document for the motor vehicle.
(b) After receiving the report and title or document, the
department shall issue the license holder under Chapter 2302,
Occupations Code, [salvage vehicle dealer] a receipt for the
manufacturer's certificate of origin, regular certificate of
title, nonrepairable vehicle title, salvage vehicle title, or
comparable out-of-state ownership document.
(c) The department shall adopt rules to notify the license
holder under Chapter 2302, Occupations Code, [salvage dealer] if
the vehicle was not issued a printed title, but has a record of
title in the department's titling system.
SECTION 39. Section 501.108, Transportation Code, is
amended to read as follows:
Sec. 501.108. RECORD RETENTION. (a) Each license holder
under Chapter 2302, Occupations Code [licensed salvage vehicle
dealer], used automotive parts recycler, or insurance company that
sells a nonrepairable motor vehicle or a salvage motor vehicle at a
casual sale shall keep on the business premises of the license
holder, recycler, or [dealer or the] insurance company a list of all
casual sales made during the preceding 36-month period that
contains:
(1) the date of the sale;
(2) the name of the purchaser;
(3) a photocopy [the name] of [the jurisdiction that
issued] the identification document provided by the purchaser[, as
shown on the document]; and
(4) the vehicle identification number.
(b) A license holder under Chapter 2302, Occupations Code,
[salvage vehicle dealer] or used automotive parts recycler shall
keep on the business premises of the license holder [dealer] or
recycler, until the third anniversary of the date the report on the
motor vehicle is submitted to the department, a record of the
vehicle, its ownership, and its condition as dismantled, scrapped,
or destroyed as required by Section 501.1003.
SECTION 40. The following sections of the Occupations Code
are repealed:
(1) Section 2302.103(b);
(2) Sections 2302.153(c) and (e);
(3) Section 2302.258; and
(4) Section 2302.302.
SECTION 41. Section 2302.104, Occupations Code, as amended
by this Act, applies only to an application for a license submitted
on or after the effective date of this Act. An application for a
license submitted before that date is governed by the law in effect
on the date the application was submitted, and the former law is
continued in effect for that purpose.
SECTION 42. Section 2302.108(e), Occupations Code, as added
by this Act, applies only to conduct by a salvage vehicle agent
authorized on or after January 1, 2016. Conduct authorized before
that date is governed by the law in effect on the date the conduct
was authorized, and the former law is continued in effect for that
purpose.
SECTION 43. Not later than November 1, 2015, the Texas
Department of Motor Vehicles shall adopt any rules necessary to
implement the changes in law made by this Act and shall begin
accepting applications for and issuing salvage pool operator and
salvage vehicle rebuilder licenses.
SECTION 44. (a) Except as otherwise provided by this
section, this Act takes effect January 1, 2016.
(b) Sections 41 and 43 of this Act take effect September 1,
2015.
(c) Sections 2302.102(a), 2302.103(a), 2302.104, and
2302.105(a) and the heading to Section 2302.105, Occupations Code,
as amended by this Act, take effect September 1, 2015.