Texas 2009 - 81st Regular

Texas Senate Bill SB1095 Compare Versions

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1	1	S.B. No. 1095
2	2
3	3
4	4	AN ACT
5	5	relating to the licensing and regulation of used automotive parts
6	6	recyclers; providing penalties.
7	7	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	8	SECTION 1. Subdivision (6), Section 2302.001, Occupations
9	9	Code, is amended to read as follows:
10	10	(6) "Salvage vehicle agent" means a person who
11	11	acquires, sells, or otherwise deals in nonrepairable or salvage
12	12	motor vehicles [or used parts] in this state as directed by the
13	13	salvage vehicle dealer under whose license the person operates.
14	14	The term does not include a person who:
15	15	(A) is a licensed salvage vehicle dealer or a
16	16	licensed used automotive parts recycler;
17	17	(B) is a partner, owner, or officer of a business
18	18	entity that holds a salvage vehicle dealer license or a used
19	19	automotive parts recycler license;
20	20	(C) is an employee of a licensed salvage vehicle
21	21	dealer or a licensed used automotive parts recycler; or
22	22	(D) only transports salvage motor vehicles for a
23	23	licensed salvage vehicle dealer or a licensed used automotive parts
24	24	recycler.
25	25	SECTION 2. Subsection (b), Section 2302.006, Occupations
26	26	Code, is amended to read as follows:
27	27	(b) This chapter applies to a transaction in which a motor
28	28	vehicle:
29	29	(1) is sold, transferred, released, or delivered to a
30	30	metal recycler for the purpose of reuse or resale as a motor vehicle
31	31	[or as a source of used parts]; and
32	32	(2) is used for that purpose.
33	33	SECTION 3. Subchapter A, Chapter 2302, Occupations Code, is
34	34	amended by adding Section 2302.008 to read as follows:
35	35	Sec. 2302.008. APPLICABILITY OF CHAPTER TO USED AUTOMOTIVE
36	36	PARTS RECYCLERS. This chapter does not apply to a used automotive
37	37	parts recycler licensed under Chapter 2309.
38	38	SECTION 4. Subsection (b), Section 2302.103, Occupations
39	39	Code, is amended to read as follows:
40	40	(b) An applicant may apply for a salvage vehicle dealer
41	41	license with an endorsement in one or more of the following
42	42	classifications:
43	43	(1) new automobile dealer;
44	44	(2) used automobile dealer;
45	45	(3) [used vehicle parts dealer;
46	46	[(4)] salvage pool operator;
47	47	(4) [(5)] salvage vehicle broker; or
48	48	(5) [(6)] salvage vehicle rebuilder.
49	49	SECTION 5. Subsection (d), Section 2302.107, Occupations
50	50	Code, is amended to read as follows:
51	51	(d) A salvage vehicle agent may acquire, sell, or otherwise
52	52	deal in, nonrepairable or salvage motor vehicles [or used parts] as
53	53	directed by the authorizing dealer.
54	54	SECTION 6. Section 2302.202, Occupations Code, is amended
55	55	to read as follows:
56	56	Sec. 2302.202. RECORDS OF PURCHASES. A salvage vehicle
57	57	dealer shall maintain a record of each salvage motor vehicle [and
58	58	each used part] purchased or sold by the dealer.
59	59	SECTION 7. Subtitle A, Title 14, Occupations Code, is
60	60	amended by adding Chapter 2309 to read as follows:
61	61	CHAPTER 2309. USED AUTOMOTIVE PARTS RECYCLERS
62	62	SUBCHAPTER A. GENERAL PROVISIONS
63	63	Sec. 2309.001. SHORT TITLE. This chapter may be cited as
64	64	the Texas Used Automotive Parts Recycling Act.
65	65	Sec. 2309.002. DEFINITIONS. In this chapter:
66	66	(1) "Insurance company," "metal recycler," "motor
67	67	vehicle," "nonrepairable motor vehicle," "nonrepairable vehicle
68	68	title," "salvage motor vehicle," "salvage vehicle title," and
69	69	"salvage vehicle dealer" have the meanings assigned by Section
70	70	501.091, Transportation Code.
71	71	(2) "Commission" means the Texas Commission of
72	72	Licensing and Regulation.
73	73	(3) "Department" means the Texas Department of
74	74	Licensing and Regulation.
75	75	(4) "Executive director" means the executive director
76	76	of the department.
77	77	(5) "Used automotive part" has the meaning assigned to
78	78	"used part" by Section 501.091, Transportation Code.
79	79	(6) "Used automotive parts recycler" means a person
80	80	licensed under this chapter to operate a used automotive parts
81	81	recycling business.
82	82	(7) "Used automotive parts recycling" means the
83	83	dismantling and reuse or resale of used automotive parts and the
84	84	safe disposal of salvage motor vehicles or nonrepairable motor
85	85	vehicles, including the resale of those vehicles.
86	86	Sec. 2309.003. APPLICABILITY OF CHAPTER TO METAL RECYCLERS.
87	87	(a) Except as provided by Subsection (b), this chapter does not
88	88	apply to a transaction to which a metal recycler is a party.
89	89	(b) This chapter applies to a transaction in which a motor
90	90	vehicle:
91	91	(1) is sold, transferred, released, or delivered to a
92	92	metal recycler as a source of used automotive parts; and
93	93	(2) is used as a source of used automotive parts.
94	94	Sec. 2309.004. APPLICABILITY OF CHAPTER TO SALVAGE VEHICLE
95	95	DEALERS. (a) Except as provided by Subsection (b), this chapter
96	96	does not apply to a transaction in which a salvage vehicle dealer is
97	97	a party.
98	98	(b) This chapter applies to a salvage vehicle dealer who
99	99	deals in used automotive parts as more than an incidental part of
100	100	the salvage vehicle dealer's primary business.
101	101	Sec. 2309.005. APPLICABILITY OF CHAPTER TO INSURANCE
102	102	COMPANIES. This chapter does not apply to an insurance company.
103	103	[Sections 2309.006-2309.050 reserved for expansion]
104	104	SUBCHAPTER B. ADVISORY BOARD
105	105	Sec. 2309.051. USED AUTOMOTIVE PARTS RECYCLING ADVISORY
106	106	BOARD. (a) The advisory board consists of five members
107	107	representing the used automotive parts industry in this state
108	108	appointed by the presiding officer of the commission with the
109	109	approval of the commission.
110	110	(b) The advisory board shall include members who represent
111	111	used automotive parts businesses owned by domestic entities, as
112	112	defined by Section 1.002, Business Organizations Code.
113	113	(c) The advisory board shall include one member who
114	114	represents a used automotive parts business owned by a foreign
115	115	entity, as defined by Section 1.002, Business Organizations Code.
116	116	(d) The advisory board may not include more than one member
117	117	from any one used automotive parts business entity.
118	118	(e) Appointments to the advisory board shall be made without
119	119	regard to the race, color, disability, sex, religion, age, or
120	120	national origin of the appointee.
121	121	Sec. 2309.052. TERMS; VACANCIES. (a) Advisory board
122	122	members serve terms of six years, with the terms of one or two
123	123	members expiring on February 1 of each odd-numbered year.
124	124	(b) A member may not serve more than two full consecutive
125	125	terms.
126	126	(c) If a vacancy occurs during a term, the presiding officer
127	127	of the commission shall appoint a replacement who meets the
128	128	qualifications of the vacated position to serve for the remainder
129	129	of the term.
130	130	Sec. 2309.053. PRESIDING OFFICER. The presiding officer of
131	131	the commission shall appoint one of the advisory board members to
132	132	serve as presiding officer of the advisory board for a term of one
133	133	year. The presiding officer of the advisory board may vote on any
134	134	matter before the advisory board.
135	135	Sec. 2309.054. POWERS AND DUTIES OF ADVISORY BOARD. The
136	136	advisory board shall provide advice and recommendations to the
137	137	department on technical matters relevant to the administration and
138	138	enforcement of this chapter, including licensing standards.
139	139	Sec. 2309.055. COMPENSATION; REIMBURSEMENT OF EXPENSES.
140	140	Advisory board members may not receive compensation but are
141	141	entitled to reimbursement for actual and necessary expenses
142	142	incurred in performing the functions of the advisory board, subject
143	143	to the General Appropriations Act.
144	144	Sec. 2309.056. MEETINGS. The advisory board shall meet
145	145	twice annually and may meet at other times at the call of the
146	146	presiding officer of the commission or the executive director.
147	147	[Sections 2309.057-2309.100 reserved for expansion]
148	148	SUBCHAPTER C. POWERS AND DUTIES OF COMMISSION AND DEPARTMENT
149	149	Sec. 2309.101. GENERAL POWERS AND DUTIES. The executive
150	150	director or commission, as appropriate, may take action as
151	151	necessary to administer and enforce this chapter.
152	152	Sec. 2309.102. RULES. (a) The commission shall adopt
153	153	rules for licensing used automotive parts recyclers and used
154	154	automotive parts employees.
155	155	(b) The commission by rule shall adopt standards of conduct
156	156	for license holders under this chapter.
157	157	Sec. 2309.103. RULES REGARDING LICENSING AND STANDARDS OF
158	158	CONDUCT. (a) The commission shall adopt rules for licensing
159	159	applicants, including rules for denial of an application if the
160	160	applicant, a partner, principal, officer, or general manager of the
161	161	applicant, or another license or permit holder with a connection to
162	162	the applicant, has:
163	163	(1) before the application date, been convicted of,
164	164	pleaded guilty or nolo contendere to, or been placed on deferred
165	165	adjudication for:
166	166	(A) a felony; or
167	167	(B) a misdemeanor punishable by confinement in
168	168	jail or by a fine exceeding $500;
169	169	(2) violated an order of the commission or executive
170	170	director, including an order for sanctions or administrative
171	171	penalties; or
172	172	(3) knowingly submitted false information on the
173	173	application.
174	174	(b) The commission by rule shall adopt standards of conduct
175	175	for license holders under this chapter.
176	176	Sec. 2309.104. FEES. The commission shall establish and
177	177	collect reasonable and necessary fees in amounts sufficient to
178	178	cover the costs of administering this chapter.
179	179	Sec. 2309.105. RULES RESTRICTING ADVERTISING OR
180	180	COMPETITIVE BIDDING. (a) The commission may not adopt a rule
181	181	restricting advertising or competitive bidding by a person who
182	182	holds a license issued under this chapter except to prohibit false,
183	183	misleading, or deceptive practices by the person.
184	184	(b) The commission may not include in its rules to prohibit
185	185	false, misleading, or deceptive practices a rule that:
186	186	(1) restricts the use of any advertising medium;
187	187	(2) restricts the person's personal appearance or use
188	188	of the person's voice in an advertisement;
189	189	(3) relates to the size or duration of an
190	190	advertisement by the person; or
191	191	(4) restricts the use of a trade name in advertising by
192	192	the person.
193	193	Sec. 2309.106. PERIODIC AND RISK-BASED INSPECTIONS.
194	194	(a) The department shall inspect each used automotive parts
195	195	recycling facility at least once every two years.
196	196	(b) The department may enter and inspect at any time during
197	197	business hours:
198	198	(1) the place of business of any person regulated
199	199	under this chapter; or
200	200	(2) any place in which the department has reasonable
201	201	cause to believe that a license holder is in violation of this
202	202	chapter or in violation of a rule or order of the commission or
203	203	executive director.
204	204	(c) The department shall conduct additional inspections
205	205	based on a schedule of risk-based inspections using the following
206	206	criteria:
207	207	(1) the inspection history;
208	208	(2) any history of complaints involving a used
209	209	automotive parts recycler; and
210	210	(3) any other factor determined by the commission by
211	211	rule.
212	212	(d) A used automotive parts recycler shall pay a fee for
213	213	each risk-based inspection performed under this section. The
214	214	commission by rule shall set the amount of the fee.
215	215	(e) In conducting an inspection under this section, the
216	216	department may inspect a facility, a used automotive part, a
217	217	business record, or any other place or thing reasonably required to
218	218	enforce this chapter or a rule or order adopted under this chapter.
219	219	Sec. 2309.107. PERSONNEL. The department may employ
220	220	personnel necessary to administer and enforce this chapter.
221	221	[Sections 2309.108-2309.150 reserved for expansion]
222	222	SUBCHAPTER D. LICENSE REQUIREMENTS
223	223	Sec. 2309.151. USED AUTOMOTIVE PARTS RECYCLER LICENSE
224	224	REQUIRED. (a) Unless the person holds a used automotive parts
225	225	recycler license issued under this chapter, a person may not own or
226	226	operate a used automotive parts recycling business or sell used
227	227	automotive parts.
228	228	(b) A used automotive parts recycler license:
229	229	(1) is valid only with respect to the person who
230	230	applied for the license; and
231	231	(2) authorizes the license holder to operate a used
232	232	automotive parts recycling business only at the one facility listed
233	233	on the license.
234	234	Sec. 2309.152. GENERAL LICENSE APPLICATION REQUIREMENTS.
235	235	An applicant for a used automotive parts recycler license under
236	236	this chapter must submit to the department:
237	237	(1) a completed application on a form prescribed by
238	238	the executive director;
239	239	(2) the required fees; and
240	240	(3) any other information required by commission rule.
241	241	Sec. 2309.153. LICENSE REQUIREMENTS. An applicant for a
242	242	used automotive parts recycler license under this chapter must
243	243	provide in a manner prescribed by the executive director:
244	244	(1) a federal tax identification number;
245	245	(2) proof of general liability insurance in an amount
246	246	not less than $250,000; and
247	247	(3) proof of a storm water permit if the applicant is
248	248	required by the Texas Commission on Environmental Quality to obtain
249	249	a permit.
250	250	Sec. 2309.154. USED AUTOMOTIVE PARTS EMPLOYEE LICENSE
251	251	REQUIRED. (a) A person employed by a used automotive parts
252	252	recycler may not in the scope of the person's employment acquire a
253	253	vehicle or used automotive parts and may not sell used automotive
254	254	parts unless the person holds a used automotive parts employee
255	255	license issued under this chapter.
256	256	(b) The commission by rule shall adopt requirements for the
257	257	application for and issuance of a used automotive parts employee
258	258	license under this chapter.
259	259	Sec. 2309.155. NONTRANSFERABILITY OF LICENSE. A license
260	260	issued by the executive director is valid throughout this state and
261	261	is not transferable.
262	262	Sec. 2309.156. LICENSE RENEWAL. (a) A license issued
263	263	under this chapter is valid for one year. The department may adopt
264	264	a system under which licenses expire at different times during the
265	265	year.
266	266	(b) The department shall notify the license holder at least
267	267	30 days before the date a license expires. The notice must be in
268	268	writing and sent to the license holder's last known address
269	269	according to the records of the department.
270	270	(c) The commission by rule shall adopt requirements to renew
271	271	a license issued under this chapter.
272	272	[Sections 2309.157-2309.200 reserved for expansion]
273	273	SUBCHAPTER E. LOCAL REGULATION
274	274	Sec. 2309.201. APPLICABILITY OF CERTAIN MUNICIPAL
275	275	ORDINANCES, LICENSES, AND PERMITS. (a) The requirements of this
276	276	chapter apply in addition to the requirements of any applicable
277	277	municipal ordinance relating to the regulation of a person who
278	278	deals in used automotive parts.
279	279	(b) This chapter does not prohibit the enforcement of an
280	280	applicable municipal license or permit requirement that is related
281	281	to an activity regulated under this chapter.
282	282	[Sections 2309.202-2309.250 reserved for expansion]
283	283	SUBCHAPTER F. ENFORCEMENT
284	284	Sec. 2309.251. ADMINISTRATIVE PENALTY. (a) The
285	285	commission may impose an administrative penalty on a person under
286	286	Subchapter F, Chapter 51, regardless of whether the person holds a
287	287	license under this chapter, if the person violates:
288	288	(1) this chapter or a rule adopted under this chapter;
289	289	or
290	290	(2) a rule or order of the executive director or
291	291	commission.
292	292	(b) An administrative penalty may not be imposed unless the
293	293	person charged with a violation is provided the opportunity for a
294	294	hearing.
295	295	Sec. 2309.252. CEASE AND DESIST ORDER; INJUNCTION; CIVIL
296	296	PENALTY. (a) The executive director may issue a cease and desist
297	297	order as necessary to enforce this chapter if the executive
298	298	director determines that the action is necessary to prevent a
299	299	violation of this chapter and to protect public health and safety.
300	300	(b) The attorney general or executive director may
301	301	institute an action for an injunction or a civil penalty under this
302	302	chapter as provided by Section 51.352.
303	303	Sec. 2309.253. SANCTIONS. The department may impose
304	304	sanctions as provided by Section 51.353.
305	305	Sec. 2309.254. CRIMINAL PENALTY; LICENSING. (a) A person
306	306	commits an offense if the person:
307	307	(1) violates the licensing requirements of this
308	308	chapter;
309	309	(2) deals in used parts without a license required by
310	310	this chapter; or
311	311	(3) employs an individual who does not hold the
312	312	appropriate license required by this chapter.
313	313	(b) An offense under this section is a Class C misdemeanor.
314	314	[Sections 2309.255-2309.300 reserved for expansion]
315	315	SUBCHAPTER G. CONDUCTING BUSINESS
316	316	Sec. 2309.301. DUTIES ON ACQUISITION OF SALVAGE MOTOR
317	317	VEHICLE. (a) A used automotive parts recycler who acquires
318	318	ownership of a salvage motor vehicle shall obtain a properly
319	319	assigned title from the previous owner of the vehicle.
320	320	(b) A used automotive parts recycler who acquires ownership
321	321	of a motor vehicle, nonrepairable motor vehicle, or salvage motor
322	322	vehicle for the purpose of dismantling, scrapping, or destroying
323	323	the motor vehicle, shall, before the 31st day after the date of
324	324	acquiring the motor vehicle, submit to the Texas Department of
325	325	Transportation a properly assigned manufacturer's certificate of
326	326	origin, regular certificate of title, nonrepairable vehicle title,
327	327	salvage vehicle title, other ownership document, or comparable
328	328	out-of-state ownership document for the motor vehicle.
329	329	(c) After receiving the title or document, the Texas
330	330	Department of Transportation shall issue the used automotive parts
331	331	recycler a receipt for the manufacturer's certificate of origin,
332	332	regular certificate of title, nonrepairable vehicle title, salvage
333	333	vehicle title, other ownership document, or comparable
334	334	out-of-state ownership document.
335	335	(d) The recycler shall comply with Subchapter E, Chapter
336	336	501, Transportation Code.
337	337	Sec. 2309.302. RECORDS OF PURCHASES. A used automotive
338	338	parts recycler shall maintain a record of or sales receipt for each
339	339	motor vehicle, salvage motor vehicle, nonrepairable motor vehicle,
340	340	and used automotive part purchased.
341	341	Sec. 2309.303. REGISTRATION OF NEW BUSINESS LOCATION.
342	342	Before moving a place of business, a used automotive parts recycler
343	343	must notify the department of the new location. The used automotive
344	344	parts recycler shall provide a storm water permit for the location
345	345	if a permit is required by the Texas Commission on Environmental
346	346	Quality.
347	347	[Sections 2309.304-2309.350 reserved for expansion]
348	348	SUBCHAPTER H. ADDITIONAL DUTIES OF USED AUTOMOTIVE PARTS RECYCLER
349	349	IN CONNECTION WITH MOTOR VEHICLE COMPONENT PARTS
350	350	Sec. 2309.351. DEFINITIONS. In this subchapter:
351	351	(1) "Component part" means a major component part as
352	352	defined by Section 501.091, Transportation Code, or a minor
353	353	component part.
354	354	(2) "Interior component part" means a motor vehicle's
355	355	seat or radio.
356	356	(3) "Minor component part" means an interior component
357	357	part, a special accessory part, or a motor vehicle part that
358	358	displays or should display at least one of the following:
359	359	(A) a federal safety certificate;
360	360	(B) a motor number;
361	361	(C) a serial number or a derivative; or
362	362	(D) a manufacturer's permanent vehicle
363	363	identification number or a derivative.
364	364	(4) "Special accessory part" means a motor vehicle's
365	365	tire, wheel, tailgate, or removable glass top.
366	366	Sec. 2309.352. REMOVAL OF LICENSE PLATES. Immediately on
367	367	receipt of a motor vehicle, a used automotive parts recycler shall:
368	368	(1) remove any unexpired license plates from the
369	369	vehicle; and
370	370	(2) place the license plates in a secure place until
371	371	destroyed by the used automotive parts recycler.
372	372	Sec. 2309.353. DISMANTLEMENT OR DISPOSITION OF MOTOR
373	373	VEHICLE. A used automotive parts recycler may not dismantle or
374	374	dispose of a motor vehicle unless the recycler first obtains:
375	375	(1) a certificate of authority to dispose of the
376	376	vehicle, a sales receipt, or a transfer document for the vehicle
377	377	issued under Chapter 683, Transportation Code; or
378	378	(2) a certificate of title showing that there are no
379	379	liens on the vehicle or that all recorded liens have been released.
380	380	Sec. 2309.354. RECORD OF PURCHASE; INVENTORY OF PARTS.
381	381	(a) A used automotive parts recycler shall keep an accurate and
382	382	legible record of each used component part purchased by or
383	383	delivered to the recycler. The record must include:
384	384	(1) the date of purchase or delivery;
385	385	(2) the driver's license number of the seller and a
386	386	legible photocopy of the seller's driver's license; and
387	387	(3) a description of the part and, if applicable, the
388	388	make and model of the part.
389	389	(b) As an alternative to the information required by
390	390	Subsection (a), a used automotive parts recycler may record:
391	391	(1) the name of the person who sold the part or the
392	392	motor vehicle from which the part was obtained; and
393	393	(2) the Texas certificate of inventory number or the
394	394	federal taxpayer identification number of the person.
395	395	(c) The department shall prescribe the form of the record
396	396	required by Subsection (a) and shall make the form available to used
397	397	automotive parts recyclers.
398	398	(d) This section does not apply to:
399	399	(1) an interior component part or special accessory
400	400	part from a motor vehicle more than 10 years old; or
401	401	(2) a part delivered to a used automotive parts
402	402	recycler by a commercial freight line, commercial carrier, or
403	403	licensed used automotive parts recycler.
404	404	Sec. 2309.355. RETENTION OF COMPONENT PARTS. (a) A used
405	405	automotive parts recycler shall retain each component part in its
406	406	original condition on the business premises of the recycler for at
407	407	least three calendar days, excluding Sundays, after the date the
408	408	recycler obtains the part.
409	409	(b) This section does not apply to the purchase by a used
410	410	automotive parts recycler of a nonoperational engine,
411	411	transmission, or rear axle assembly from another used automotive
412	412	parts recycler or an automotive-related business.
413	413	Sec. 2309.356. MAINTENANCE OF RECORDS. A used automotive
414	414	parts recycler shall maintain copies of each record required under
415	415	this subchapter until the first anniversary of the purchase date of
416	416	the item for which the record is maintained.
417	417	Sec. 2309.357. SURRENDER OF CERTAIN DOCUMENTS OR LICENSE
418	418	PLATES. (a) A used automotive parts recycler shall surrender to
419	419	the Texas Department of Transportation for cancellation a
420	420	certificate of title or authority, sales receipt, or transfer
421	421	document, as required by the department.
422	422	(b) The Texas Department of Transportation shall provide a
423	423	signed receipt for a surrendered certificate of title.
424	424	Sec. 2309.358. INSPECTION OF RECORDS. (a) A peace officer
425	425	at any reasonable time may inspect a record required to be
426	426	maintained under this subchapter, including an inventory record.
427	427	(b) On demand by a peace officer, a used automotive parts
428	428	recycler shall provide to the officer a copy of a record required to
429	429	be maintained under this subchapter.
430	430	(c) A peace officer may inspect the inventory on the
431	431	premises of a used automotive parts recycler at any reasonable time
432	432	to verify, check, or audit the records required to be maintained
433	433	under this subchapter.
434	434	(d) A used automotive parts recycler or an employee of the
435	435	recycler shall allow and may not interfere with a peace officer's
436	436	inspection of the recycler's inventory, premises, or required
437	437	inventory records.
438	438	[Sections 2309.359-2309.400 reserved for expansion]
439	439	SUBCHAPTER I. MOTOR VEHICLE SALVAGE YARDS IN CERTAIN COUNTIES
440	440	Sec. 2309.401. APPLICABILITY OF SUBCHAPTER. This
441	441	subchapter applies only to a used automotive parts facility located
442	442	in a county with a population of 2.8 million or more.
443	443	Sec. 2309.402. LIMITS ON OPERATION OF HEAVY MACHINERY.
444	444	(a) A used automotive parts recycler may not operate heavy
445	445	machinery in a used automotive parts recycling facility between the
446	446	hours of 7 p.m. of one day and 7 a.m. of the following day.
447	447	(b) This section does not apply to conduct necessary to a
448	448	sale or purchase by the recycler.
449	449	SECTION 8. Section 501.091, Transportation Code, is amended
450	450	by amending Subdivision (17) and adding Subdivision (20) to read as
451	451	follows:
452	452	(17) "Salvage vehicle dealer" means a person engaged
453	453	in this state in the business of acquiring, selling, [dismantling,]
454	454	repairing, rebuilding, reconstructing, or otherwise dealing in
455	455	nonrepairable motor vehicles, salvage motor vehicles, or, if
456	456	incidental to a salvage motor vehicle dealer's primary business,
457	457	used automotive parts. The term does not include a person who
458	458	casually repairs, rebuilds, or reconstructs fewer than five [three]
459	459	salvage motor vehicles in the same calendar year or, except as
460	460	provided by Paragraph (C), a used automotive parts recycler. The
461	461	term includes a person engaged in the business of:
462	462	(A) a salvage vehicle dealer, regardless of
463	463	whether the person holds a license issued by the department to
464	464	engage in that business;
465	465	(B) dealing in nonrepairable motor vehicles or
466	466	salvage motor vehicles[, regardless of whether the person deals in
467	467	used parts]; or
468	468	(C) a used automotive parts recycler if the sale
469	469	of repaired, rebuilt, or reconstructed nonrepairable motor
470	470	vehicles or salvage motor vehicles is more than an incidental part
471	471	of the used automotive parts recycler's business [dealing in used
472	472	parts regardless of whether the person deals in nonrepairable motor
473	473	vehicles or salvage motor vehicles].
474	474	(20) "Used parts dealer" and "used automotive parts
475	475	recycler" have the meaning assigned to "used automotive parts
476	476	recycler" by Section 2309.002, Occupations Code.
477	477	SECTION 9. Subsection (d), Section 501.092, Transportation
478	478	Code, is amended to read as follows:
479	479	(d) An insurance company may sell a motor vehicle to which
480	480	this section applies, or assign a salvage vehicle title or a
481	481	nonrepairable vehicle title for the motor vehicle, only to a
482	482	salvage vehicle dealer, an out-of-state buyer, a buyer in a casual
483	483	sale at auction, [or] a metal recycler, or a used automotive parts
484	484	recycler. If the motor vehicle is not a salvage motor vehicle or a
485	485	nonrepairable motor vehicle, the insurance company is not required
486	486	to surrender the regular certificate of title for the vehicle or to
487	487	be issued a salvage vehicle title or a nonrepairable vehicle title
488	488	for the motor vehicle.
489	489	SECTION 10. Subsections (a) and (b), Section 501.095,
490	490	Transportation Code, are amended to read as follows:
491	491	(a) If the department has not issued a nonrepairable vehicle
492	492	title or salvage vehicle title for the motor vehicle and an
493	493	out-of-state ownership document for the motor vehicle has not been
494	494	issued by another state or jurisdiction, a business or governmental
495	495	entity described by Subdivisions (1)-(3) may sell, transfer, or
496	496	release a nonrepairable motor vehicle or salvage motor vehicle only
497	497	to a person who is:
498	498	(1) a licensed salvage vehicle dealer, a used
499	499	automotive parts recycler under Chapter 2309, Occupations Code, or
500	500	a metal recycler under Chapter 2302, Occupations Code;
501	501	(2) an insurance company that has paid a claim on the
502	502	nonrepairable or salvage motor vehicle;
503	503	(3) a governmental entity; or
504	504	(4) an out-of-state buyer.
505	505	(b) A person, other than a salvage vehicle dealer, a used
506	506	automotive parts recycler, or an insurance company licensed to do
507	507	business in this state, who acquired ownership of a nonrepairable
508	508	or salvage motor vehicle that has not been issued a nonrepairable
509	509	vehicle title, salvage vehicle title, or a comparable ownership
510	510	document issued by another state or jurisdiction shall, before
511	511	selling the motor vehicle, surrender the properly assigned
512	512	certificate of title for the motor vehicle to the department and
513	513	apply to the department for:
514	514	(1) a nonrepairable vehicle title if the vehicle is a
515	515	nonrepairable motor vehicle; or
516	516	(2) a salvage vehicle title if the vehicle is a salvage
517	517	motor vehicle.
518	518	SECTION 11. Section 501.105, Transportation Code, is
519	519	amended to read as follows:
520	520	Sec. 501.105. RETENTION OF RECORDS RELATING TO CERTAIN
521	521	CASUAL SALES. Each licensed salvage vehicle dealer, used
522	522	automotive parts recycler, or insurance company that sells a
523	523	nonrepairable motor vehicle or a salvage motor vehicle at a casual
524	524	sale shall keep on the business premises of the dealer or the
525	525	insurance company a list of all casual sales made during the
526	526	preceding 36-month period that contains:
527	527	(1) the date of the sale;
528	528	(2) the name of the purchaser;
529	529	(3) the name of the jurisdiction that issued the
530	530	identification document provided by the purchaser, as shown on the
531	531	document; and
532	532	(4) the vehicle identification number.
533	533	SECTION 12. Section 2302.253, Occupations Code, is
534	534	repealed.
535	535	SECTION 13. Not later than January 1, 2010, the Texas
536	536	Commission of Licensing and Regulation shall adopt rules under
537	537	Section 2309.102, Occupations Code, as added by this Act.
538	538	SECTION 14. If there is a conflict between a provision of
539	539	this Act and a provision of another Act of the 81st Legislature,
540	540	Regular Session, 2009, that becomes law concerning the licensing or
541	541	regulation of used automotive parts recyclers, this Act prevails
542	542	regardless of the relative dates of enactment.
543	543	SECTION 15. (a) Except as provided by Subsection (b) of
544	544	this section, this Act takes effect September 1, 2009.
545	545	(b) Sections 2309.151 and 2309.154, Occupations Code, as
546	546	added by this Act, and Subchapter F, Chapter 2309, Occupations
547	547	Code, as added by this Act, take effect September 1, 2010.
548	548	______________________________ ______________________________
549	549	President of the Senate Speaker of the House
550	550	I hereby certify that S.B. No. 1095 passed the Senate on
551	551	April 23, 2009, by the following vote: Yeas 30, Nays 0; and that
552	552	the Senate concurred in House amendment on May 29, 2009, by the
553	553	following vote: Yeas 31, Nays 0.
554	554	______________________________
555	555	Secretary of the Senate
556	556	I hereby certify that S.B. No. 1095 passed the House, with
557	557	amendment, on May 26, 2009, by the following vote: Yeas 133,
558	558	Nays 4, two present not voting.
559	559	______________________________
560	560	Chief Clerk of the House
561	561	Approved:
562	562	______________________________
563	563	Date
564	564	______________________________
565	565	Governor