Texas 2009 - 81st Regular

Texas Senate Bill SB1095 Latest Draft

Bill / Enrolled Version Filed 02/01/2025

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                            S.B. No. 1095


 AN ACT
 relating to the licensing and regulation of used automotive parts
 recyclers; providing penalties.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 SECTION 1. Subdivision (6), Section 2302.001, Occupations
 Code, is amended to read as follows:
 (6) "Salvage vehicle agent" means a person who
 acquires, sells, or otherwise deals in nonrepairable or salvage
 motor vehicles [or used parts] in this state as directed by the
 salvage vehicle dealer under whose license the person operates.
 The term does not include a person who:
 (A) is a licensed salvage vehicle dealer or a
 licensed used automotive parts recycler;
 (B) is a partner, owner, or officer of a business
 entity that holds a salvage vehicle dealer license or a used
 automotive parts recycler license;
 (C) is an employee of a licensed salvage vehicle
 dealer or a licensed used automotive parts recycler; or
 (D) only transports salvage motor vehicles for a
 licensed salvage vehicle dealer or a licensed used automotive parts
 recycler.
 SECTION 2. Subsection (b), Section 2302.006, Occupations
 Code, is amended to read as follows:
 (b) This chapter applies to a transaction in which a motor
 vehicle:
 (1) is sold, transferred, released, or delivered to a
 metal recycler for the purpose of reuse or resale as a motor vehicle
 [or as a source of used parts]; and
 (2) is used for that purpose.
 SECTION 3. Subchapter A, Chapter 2302, Occupations Code, is
 amended by adding Section 2302.008 to read as follows:
 Sec. 2302.008.  APPLICABILITY OF CHAPTER TO USED AUTOMOTIVE
 PARTS RECYCLERS. This chapter does not apply to a used automotive
 parts recycler licensed under Chapter 2309.
 SECTION 4. Subsection (b), Section 2302.103, Occupations
 Code, is amended to read as follows:
 (b) An applicant may apply for a salvage vehicle dealer
 license with an endorsement in one or more of the following
 classifications:
 (1) new automobile dealer;
 (2) used automobile dealer;
 (3) [used vehicle parts dealer;
 [(4)] salvage pool operator;
 (4) [(5)] salvage vehicle broker; or
 (5) [(6)] salvage vehicle rebuilder.
 SECTION 5. Subsection (d), Section 2302.107, Occupations
 Code, is amended to read as follows:
 (d) A salvage vehicle agent may acquire, sell, or otherwise
 deal in, nonrepairable or salvage motor vehicles [or used parts] as
 directed by the authorizing dealer.
 SECTION 6. Section 2302.202, Occupations Code, is amended
 to read as follows:
 Sec. 2302.202. RECORDS OF PURCHASES. A salvage vehicle
 dealer shall maintain a record of each salvage motor vehicle [and
 each used part] purchased or sold by the dealer.
 SECTION 7. Subtitle A, Title 14, Occupations Code, is
 amended by adding Chapter 2309 to read as follows:
 CHAPTER 2309. USED AUTOMOTIVE PARTS RECYCLERS
 SUBCHAPTER A. GENERAL PROVISIONS
 Sec. 2309.001.  SHORT TITLE. This chapter may be cited as
 the Texas Used Automotive Parts Recycling Act.
 Sec. 2309.002. DEFINITIONS. In this chapter:
 (1)  "Insurance company," "metal recycler," "motor
 vehicle," "nonrepairable motor vehicle," "nonrepairable vehicle
 title," "salvage motor vehicle," "salvage vehicle title," and
 "salvage vehicle dealer" have the meanings assigned by Section
 501.091, Transportation Code.
 (2)  "Commission" means the Texas Commission of
 Licensing and Regulation.
 (3)  "Department" means the Texas Department of
 Licensing and Regulation.
 (4)  "Executive director" means the executive director
 of the department.
 (5)  "Used automotive part" has the meaning assigned to
 "used part" by Section 501.091, Transportation Code.
 (6)  "Used automotive parts recycler" means a person
 licensed under this chapter to operate a used automotive parts
 recycling business.
 (7)  "Used automotive parts recycling" means the
 dismantling and reuse or resale of used automotive parts and the
 safe disposal of salvage motor vehicles or nonrepairable motor
 vehicles, including the resale of those vehicles.
 Sec. 2309.003.  APPLICABILITY OF CHAPTER TO METAL RECYCLERS.
 (a)  Except as provided by Subsection (b), this chapter does not
 apply to a transaction to which a metal recycler is a party.
 (b)  This chapter applies to a transaction in which a motor
 vehicle:
 (1)  is sold, transferred, released, or delivered to a
 metal recycler as a source of used automotive parts; and
 (2) is used as a source of used automotive parts.
 Sec. 2309.004.  APPLICABILITY OF CHAPTER TO SALVAGE VEHICLE
 DEALERS. (a)  Except as provided by Subsection (b), this chapter
 does not apply to a transaction in which a salvage vehicle dealer is
 a party.
 (b)  This chapter applies to a salvage vehicle dealer who
 deals in used automotive parts as more than an incidental part of
 the salvage vehicle dealer's primary business.
 Sec. 2309.005.  APPLICABILITY OF CHAPTER TO INSURANCE
 COMPANIES. This chapter does not apply to an insurance company.
 [Sections 2309.006-2309.050 reserved for expansion]
 SUBCHAPTER B. ADVISORY BOARD
 Sec. 2309.051.  USED AUTOMOTIVE PARTS RECYCLING ADVISORY
 BOARD. (a)  The advisory board consists of five members
 representing the used automotive parts industry in this state
 appointed by the presiding officer of the commission with the
 approval of the commission.
 (b)  The advisory board shall include members who represent
 used automotive parts businesses owned by domestic entities, as
 defined by Section 1.002, Business Organizations Code.
 (c)  The advisory board shall include one member who
 represents a used automotive parts business owned by a foreign
 entity, as defined by Section 1.002, Business Organizations Code.
 (d)  The advisory board may not include more than one member
 from any one used automotive parts business entity.
 (e)  Appointments to the advisory board shall be made without
 regard to the race, color, disability, sex, religion, age, or
 national origin of the appointee.
 Sec. 2309.052.  TERMS; VACANCIES. (a)  Advisory board
 members serve terms of six years, with the terms of one or two
 members expiring on February 1 of each odd-numbered year.
 (b)  A member may not serve more than two full consecutive
 terms.
 (c)  If a vacancy occurs during a term, the presiding officer
 of the commission shall appoint a replacement who meets the
 qualifications of the vacated position to serve for the remainder
 of the term.
 Sec. 2309.053.  PRESIDING OFFICER. The presiding officer of
 the commission shall appoint one of the advisory board members to
 serve as presiding officer of the advisory board for a term of one
 year. The presiding officer of the advisory board may vote on any
 matter before the advisory board.
 Sec. 2309.054.  POWERS AND DUTIES OF ADVISORY BOARD. The
 advisory board shall provide advice and recommendations to the
 department on technical matters relevant to the administration and
 enforcement of this chapter, including licensing standards.
 Sec. 2309.055.  COMPENSATION; REIMBURSEMENT OF EXPENSES.
 Advisory board members may not receive compensation but are
 entitled to reimbursement for actual and necessary expenses
 incurred in performing the functions of the advisory board, subject
 to the General Appropriations Act.
 Sec. 2309.056.  MEETINGS. The advisory board shall meet
 twice annually and may meet at other times at the call of the
 presiding officer of the commission or the executive director.
 [Sections 2309.057-2309.100 reserved for expansion]
 SUBCHAPTER C. POWERS AND DUTIES OF COMMISSION AND DEPARTMENT
 Sec. 2309.101.  GENERAL POWERS AND DUTIES. The executive
 director or commission, as appropriate, may take action as
 necessary to administer and enforce this chapter.
 Sec. 2309.102.  RULES. (a)  The commission shall adopt
 rules for licensing used automotive parts recyclers and used
 automotive parts employees.
 (b)  The commission by rule shall adopt standards of conduct
 for license holders under this chapter.
 Sec. 2309.103.  RULES REGARDING LICENSING AND STANDARDS OF
 CONDUCT. (a)  The commission shall adopt rules for licensing
 applicants, including rules for denial of an application if the
 applicant, a partner, principal, officer, or general manager of the
 applicant, or another license or permit holder with a connection to
 the applicant, has:
 (1)  before the application date, been convicted of,
 pleaded guilty or nolo contendere to, or been placed on deferred
 adjudication for:
 (A) a felony; or
 (B)  a misdemeanor punishable by confinement in
 jail or by a fine exceeding $500;
 (2)  violated an order of the commission or executive
 director, including an order for sanctions or administrative
 penalties; or
 (3)  knowingly submitted false information on the
 application.
 (b)  The commission by rule shall adopt standards of conduct
 for license holders under this chapter.
 Sec. 2309.104.  FEES. The commission shall establish and
 collect reasonable and necessary fees in amounts sufficient to
 cover the costs of administering this chapter.
 Sec. 2309.105.  RULES RESTRICTING ADVERTISING OR
 COMPETITIVE BIDDING. (a)  The commission may not adopt a rule
 restricting advertising or competitive bidding by a person who
 holds a license issued under this chapter except to prohibit false,
 misleading, or deceptive practices by the person.
 (b)  The commission may not include in its rules to prohibit
 false, misleading, or deceptive practices a rule that:
 (1) restricts the use of any advertising medium;
 (2)  restricts the person's personal appearance or use
 of the person's voice in an advertisement;
 (3)  relates to the size or duration of an
 advertisement by the person; or
 (4)  restricts the use of a trade name in advertising by
 the person.
 Sec. 2309.106.  PERIODIC AND RISK-BASED INSPECTIONS.
 (a)  The department shall inspect each used automotive parts
 recycling facility at least once every two years.
 (b)  The department may enter and inspect at any time during
 business hours:
 (1)  the place of business of any person regulated
 under this chapter; or
 (2)  any place in which the department has reasonable
 cause to believe that a license holder is in violation of this
 chapter or in violation of a rule or order of the commission or
 executive director.
 (c)  The department shall conduct additional inspections
 based on a schedule of risk-based inspections using the following
 criteria:
 (1) the inspection history;
 (2)  any history of complaints involving a used
 automotive parts recycler; and
 (3)  any other factor determined by the commission by
 rule.
 (d)  A used automotive parts recycler shall pay a fee for
 each risk-based inspection performed under this section. The
 commission by rule shall set the amount of the fee.
 (e)  In conducting an inspection under this section, the
 department may inspect a facility, a used automotive part, a
 business record, or any other place or thing reasonably required to
 enforce this chapter or a rule or order adopted under this chapter.
 Sec. 2309.107.  PERSONNEL. The department may employ
 personnel necessary to administer and enforce this chapter.
 [Sections 2309.108-2309.150 reserved for expansion]
 SUBCHAPTER D. LICENSE REQUIREMENTS
 Sec. 2309.151.  USED AUTOMOTIVE PARTS RECYCLER LICENSE
 REQUIRED. (a)  Unless the person holds a used automotive parts
 recycler license issued under this chapter, a person may not own or
 operate a used automotive parts recycling business or sell used
 automotive parts.
 (b) A used automotive parts recycler license:
 (1)  is valid only with respect to the person who
 applied for the license; and
 (2)  authorizes the license holder to operate a used
 automotive parts recycling business only at the one facility listed
 on the license.
 Sec. 2309.152.  GENERAL LICENSE APPLICATION REQUIREMENTS.
 An applicant for a used automotive parts recycler license under
 this chapter must submit to the department:
 (1)  a completed application on a form prescribed by
 the executive director;
 (2) the required fees; and
 (3) any other information required by commission rule.
 Sec. 2309.153.  LICENSE REQUIREMENTS. An applicant for a
 used automotive parts recycler license under this chapter must
 provide in a manner prescribed by the executive director:
 (1) a federal tax identification number;
 (2)  proof of general liability insurance in an amount
 not less than $250,000; and
 (3)  proof of a storm water permit if the applicant is
 required by the Texas Commission on Environmental Quality to obtain
 a permit.
 Sec. 2309.154.  USED AUTOMOTIVE PARTS EMPLOYEE LICENSE
 REQUIRED. (a)  A person employed by a used automotive parts
 recycler may not in the scope of the person's employment acquire a
 vehicle or used automotive parts and may not sell used automotive
 parts unless the person holds a used automotive parts employee
 license issued under this chapter.
 (b)  The commission by rule shall adopt requirements for the
 application for and issuance of a used automotive parts employee
 license under this chapter.
 Sec. 2309.155.  NONTRANSFERABILITY OF LICENSE. A license
 issued by the executive director is valid throughout this state and
 is not transferable.
 Sec. 2309.156.  LICENSE RENEWAL. (a)  A license issued
 under this chapter is valid for one year. The department may adopt
 a system under which licenses expire at different times during the
 year.
 (b)  The department shall notify the license holder at least
 30 days before the date a license expires. The notice must be in
 writing and sent to the license holder's last known address
 according to the records of the department.
 (c)  The commission by rule shall adopt requirements to renew
 a license issued under this chapter.
 [Sections 2309.157-2309.200 reserved for expansion]
 SUBCHAPTER E. LOCAL REGULATION
 Sec. 2309.201.  APPLICABILITY OF CERTAIN MUNICIPAL
 ORDINANCES, LICENSES, AND PERMITS. (a)  The requirements of this
 chapter apply in addition to the requirements of any applicable
 municipal ordinance relating to the regulation of a person who
 deals in used automotive parts.
 (b)  This chapter does not prohibit the enforcement of an
 applicable municipal license or permit requirement that is related
 to an activity regulated under this chapter.
 [Sections 2309.202-2309.250 reserved for expansion]
 SUBCHAPTER F. ENFORCEMENT
 Sec. 2309.251.  ADMINISTRATIVE PENALTY. (a)  The
 commission may impose an administrative penalty on a person under
 Subchapter F, Chapter 51, regardless of whether the person holds a
 license under this chapter, if the person violates:
 (1)  this chapter or a rule adopted under this chapter;
 or
 (2)  a rule or order of the executive director or
 commission.
 (b)  An administrative penalty may not be imposed unless the
 person charged with a violation is provided the opportunity for a
 hearing.
 Sec. 2309.252.  CEASE AND DESIST ORDER; INJUNCTION; CIVIL
 PENALTY. (a)  The executive director may issue a cease and desist
 order as necessary to enforce this chapter if the executive
 director determines that the action is necessary to prevent a
 violation of this chapter and to protect public health and safety.
 (b)  The attorney general or executive director may
 institute an action for an injunction or a civil penalty under this
 chapter as provided by Section 51.352.
 Sec. 2309.253.  SANCTIONS. The department may impose
 sanctions as provided by Section 51.353.
 Sec. 2309.254.  CRIMINAL PENALTY; LICENSING. (a)  A person
 commits an offense if the person:
 (1)  violates the licensing requirements of this
 chapter;
 (2)  deals in used parts without a license required by
 this chapter; or
 (3)  employs an individual who does not hold the
 appropriate license required by this chapter.
 (b) An offense under this section is a Class C misdemeanor.
 [Sections 2309.255-2309.300 reserved for expansion]
 SUBCHAPTER G. CONDUCTING BUSINESS
 Sec. 2309.301.  DUTIES ON ACQUISITION OF SALVAGE MOTOR
 VEHICLE. (a)  A used automotive parts recycler who acquires
 ownership of a salvage motor vehicle shall obtain a properly
 assigned title from the previous owner of the vehicle.
 (b)  A used automotive parts recycler who acquires ownership
 of a motor vehicle, nonrepairable motor vehicle, or salvage motor
 vehicle for the purpose of dismantling, scrapping, or destroying
 the motor vehicle, shall, before the 31st day after the date of
 acquiring the motor vehicle, submit to the Texas Department of
 Transportation a properly assigned manufacturer's certificate of
 origin, regular certificate of title, nonrepairable vehicle title,
 salvage vehicle title, other ownership document, or comparable
 out-of-state ownership document for the motor vehicle.
 (c)  After receiving the title or document, the Texas
 Department of Transportation shall issue the used automotive parts
 recycler a receipt for the manufacturer's certificate of origin,
 regular certificate of title, nonrepairable vehicle title, salvage
 vehicle title, other ownership document, or comparable
 out-of-state ownership document.
 (d)  The recycler shall comply with Subchapter E, Chapter
 501, Transportation Code.
 Sec. 2309.302.  RECORDS OF PURCHASES. A used automotive
 parts recycler shall maintain a record of or sales receipt for each
 motor vehicle, salvage motor vehicle, nonrepairable motor vehicle,
 and used automotive part purchased.
 Sec. 2309.303.  REGISTRATION OF NEW BUSINESS LOCATION.
 Before moving a place of business, a used automotive parts recycler
 must notify the department of the new location. The used automotive
 parts recycler shall provide a storm water permit for the location
 if a permit is required by the Texas Commission on Environmental
 Quality.
 [Sections 2309.304-2309.350 reserved for expansion]
 SUBCHAPTER H. ADDITIONAL DUTIES OF USED AUTOMOTIVE PARTS RECYCLER
 IN CONNECTION WITH MOTOR VEHICLE COMPONENT PARTS
 Sec. 2309.351. DEFINITIONS. In this subchapter:
 (1)  "Component part" means a major component part as
 defined by Section 501.091, Transportation Code, or a minor
 component part.
 (2)  "Interior component part" means a motor vehicle's
 seat or radio.
 (3)  "Minor component part" means an interior component
 part, a special accessory part, or a motor vehicle part that
 displays or should display at least one of the following:
 (A) a federal safety certificate;
 (B) a motor number;
 (C) a serial number or a derivative; or
 (D)  a manufacturer's permanent vehicle
 identification number or a derivative.
 (4)  "Special accessory part" means a motor vehicle's
 tire, wheel, tailgate, or removable glass top.
 Sec. 2309.352.  REMOVAL OF LICENSE PLATES. Immediately on
 receipt of a motor vehicle, a used automotive parts recycler shall:
 (1)  remove any unexpired license plates from the
 vehicle; and
 (2)  place the license plates in a secure place until
 destroyed by the used automotive parts recycler.
 Sec. 2309.353.  DISMANTLEMENT OR DISPOSITION OF MOTOR
 VEHICLE. A used automotive parts recycler may not dismantle or
 dispose of a motor vehicle unless the recycler first obtains:
 (1)  a certificate of authority to dispose of the
 vehicle, a sales receipt, or a transfer document for the vehicle
 issued under Chapter 683, Transportation Code; or
 (2)  a certificate of title showing that there are no
 liens on the vehicle or that all recorded liens have been released.
 Sec. 2309.354.  RECORD OF PURCHASE; INVENTORY OF PARTS.
 (a)  A used automotive parts recycler shall keep an accurate and
 legible record of each used component part purchased by or
 delivered to the recycler. The record must include:
 (1) the date of purchase or delivery;
 (2)  the driver's license number of the seller and a
 legible photocopy of the seller's driver's license; and
 (3)  a description of the part and, if applicable, the
 make and model of the part.
 (b)  As an alternative to the information required by
 Subsection (a), a used automotive parts recycler may record:
 (1)  the name of the person who sold the part or the
 motor vehicle from which the part was obtained; and
 (2)  the Texas certificate of inventory number or the
 federal taxpayer identification number of the person.
 (c)  The department shall prescribe the form of the record
 required by Subsection (a) and shall make the form available to used
 automotive parts recyclers.
 (d) This section does not apply to:
 (1)  an interior component part or special accessory
 part from a motor vehicle more than 10 years old; or
 (2)  a part delivered to a used automotive parts
 recycler by a commercial freight line, commercial carrier, or
 licensed used automotive parts recycler.
 Sec. 2309.355.  RETENTION OF COMPONENT PARTS. (a)  A used
 automotive parts recycler shall retain each component part in its
 original condition on the business premises of the recycler for at
 least three calendar days, excluding Sundays, after the date the
 recycler obtains the part.
 (b)  This section does not apply to the purchase by a used
 automotive parts recycler of a nonoperational engine,
 transmission, or rear axle assembly from another used automotive
 parts recycler or an automotive-related business.
 Sec. 2309.356.  MAINTENANCE OF RECORDS. A used automotive
 parts recycler shall maintain copies of each record required under
 this subchapter until the first anniversary of the purchase date of
 the item for which the record is maintained.
 Sec. 2309.357.  SURRENDER OF CERTAIN DOCUMENTS OR LICENSE
 PLATES. (a)  A used automotive parts recycler shall surrender to
 the Texas Department of Transportation for cancellation a
 certificate of title or authority, sales receipt, or transfer
 document, as required by the department.
 (b)  The Texas Department of Transportation shall provide a
 signed receipt for a surrendered certificate of title.
 Sec. 2309.358.  INSPECTION OF RECORDS. (a)  A peace officer
 at any reasonable time may inspect a record required to be
 maintained under this subchapter, including an inventory record.
 (b)  On demand by a peace officer, a used automotive parts
 recycler shall provide to the officer a copy of a record required to
 be maintained under this subchapter.
 (c)  A peace officer may inspect the inventory on the
 premises of a used automotive parts recycler at any reasonable time
 to verify, check, or audit the records required to be maintained
 under this subchapter.
 (d)  A used automotive parts recycler or an employee of the
 recycler shall allow and may not interfere with a peace officer's
 inspection of the recycler's inventory, premises, or required
 inventory records.
 [Sections 2309.359-2309.400 reserved for expansion]
 SUBCHAPTER I. MOTOR VEHICLE SALVAGE YARDS IN CERTAIN COUNTIES
 Sec. 2309.401.  APPLICABILITY OF SUBCHAPTER. This
 subchapter applies only to a used automotive parts facility located
 in a county with a population of 2.8 million or more.
 Sec. 2309.402.  LIMITS ON OPERATION OF HEAVY MACHINERY.
 (a)  A used automotive parts recycler may not operate heavy
 machinery in a used automotive parts recycling facility between the
 hours of 7 p.m. of one day and 7 a.m. of the following day.
 (b)  This section does not apply to conduct necessary to a
 sale or purchase by the recycler.
 SECTION 8. Section 501.091, Transportation Code, is amended
 by amending Subdivision (17) and adding Subdivision (20) to read as
 follows:
 (17) "Salvage vehicle dealer" means a person engaged
 in this state in the business of acquiring, selling, [dismantling,]
 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. The term does not include a person who
 casually repairs, rebuilds, or reconstructs fewer than five [three]
 salvage motor vehicles in the same calendar year or, except as
 provided by Paragraph (C), a used automotive parts recycler. The
 term includes a person engaged in the business of:
 (A) a salvage vehicle dealer, regardless of
 whether the person holds a license issued by the department to
 engage in that business;
 (B) dealing in nonrepairable motor vehicles or
 salvage motor vehicles[, regardless of whether the person deals in
 used parts]; or
 (C) a 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 [dealing in used
 parts regardless of whether the person deals in nonrepairable motor
 vehicles or salvage motor vehicles].
 (20)  "Used parts dealer" and "used automotive parts
 recycler" have the meaning assigned to "used automotive parts
 recycler" by Section 2309.002, Occupations Code.
 SECTION 9. Subsection (d), Section 501.092, Transportation
 Code, is amended to read as follows:
 (d) An insurance company may sell a motor vehicle to which
 this section applies, or assign a salvage vehicle title or a
 nonrepairable vehicle title for the motor vehicle, only to a
 salvage vehicle dealer, an out-of-state buyer, a buyer in a casual
 sale at auction, [or] a metal recycler, or a used automotive parts
 recycler. If the motor vehicle is not a salvage motor vehicle or a
 nonrepairable motor vehicle, the insurance company is not required
 to surrender the regular certificate of title for the vehicle or to
 be issued a salvage vehicle title or a nonrepairable vehicle title
 for the motor vehicle.
 SECTION 10. Subsections (a) and (b), Section 501.095,
 Transportation Code, are amended to read as follows:
 (a) If the department has not issued a nonrepairable vehicle
 title or salvage vehicle title for the motor vehicle and an
 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 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;
 (3) a governmental entity; or
 (4) an out-of-state buyer.
 (b) A person, other than a salvage vehicle dealer, 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, salvage vehicle title, or a comparable ownership
 document issued by another state or jurisdiction shall, before
 selling the motor vehicle, surrender the properly assigned
 certificate of title for the motor vehicle to the department and
 apply to the department for:
 (1) a nonrepairable vehicle title if the vehicle is a
 nonrepairable motor vehicle; or
 (2) a salvage vehicle title if the vehicle is a salvage
 motor vehicle.
 SECTION 11. Section 501.105, Transportation Code, is
 amended to read as follows:
 Sec. 501.105. RETENTION OF RECORDS RELATING TO CERTAIN
 CASUAL SALES. Each 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 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) 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.
 SECTION 12. Section 2302.253, Occupations Code, is
 repealed.
 SECTION 13. Not later than January 1, 2010, the Texas
 Commission of Licensing and Regulation shall adopt rules under
 Section 2309.102, Occupations Code, as added by this Act.
 SECTION 14. If there is a conflict between a provision of
 this Act and a provision of another Act of the 81st Legislature,
 Regular Session, 2009, that becomes law concerning the licensing or
 regulation of used automotive parts recyclers, this Act prevails
 regardless of the relative dates of enactment.
 SECTION 15. (a) Except as provided by Subsection (b) of
 this section, this Act takes effect September 1, 2009.
 (b) Sections 2309.151 and 2309.154, Occupations Code, as
 added by this Act, and Subchapter F, Chapter 2309, Occupations
 Code, as added by this Act, take effect September 1, 2010.
 ______________________________ ______________________________
 President of the Senate Speaker of the House
 I hereby certify that S.B. No. 1095 passed the Senate on
 April 23, 2009, by the following vote: Yeas 30, Nays 0; and that
 the Senate concurred in House amendment on May 29, 2009, by the
 following vote: Yeas 31, Nays 0.
 ______________________________
 Secretary of the Senate
 I hereby certify that S.B. No. 1095 passed the House, with
 amendment, on May 26, 2009, by the following vote: Yeas 133,
 Nays 4, two present not voting.
 ______________________________
 Chief Clerk of the House
 Approved:
 ______________________________
 Date
 ______________________________
 Governor