Texas 2015 - 84th Regular

Texas House Bill HB1788 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	84R4262 TSR-F
2	2	By: Walle H.B. No. 1788
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the regulation of salvage vehicle dealers, salvage pool
8	8	operators, and salvage vehicle rebuilders; expanding the
9	9	applicability of an occupational license.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Section 375.001(11), Health and Safety Code, is
12	12	amended to read as follows:
13	13	(11) "Vehicle recycler" means a person engaged in the
14	14	business of acquiring, dismantling, or preparing for recycling six
15	15	or more end-of-life vehicles in a calendar year for the primary
16	16	purpose of reselling the vehicles' parts. The term includes a
17	17	license holder [salvage vehicle dealer licensed] under Chapter
18	18	2302, Occupations Code, and a used automotive parts recycler
19	19	licensed under Chapter 2309, Occupations Code.
20	20	SECTION 2. The heading to Chapter 2302, Occupations Code,
21	21	is amended to read as follows:
22	22	CHAPTER 2302. SALVAGE VEHICLE DEALERS, SALVAGE POOL OPERATORS, AND
23	23	SALVAGE VEHICLE REBUILDERS
24	24	SECTION 3. Section 2302.001, Occupations Code, is amended
25	25	by amending Subdivision (1) and adding Subdivisions (4-a), (4-b),
26	26	(4-c), (7), (8), and (9) to read as follows:
27	27	(1) "Casual sale," "damage," "insurance company,"
28	28	"major component part," ["metal recycler," "motor vehicle,"]
29	29	"nonrepairable motor vehicle," "nonrepairable vehicle title,"
30	30	"out-of-state buyer," "salvage motor vehicle," "salvage vehicle
31	31	title," ["salvage vehicle dealer,"] and "used part" have the
32	32	meanings assigned by Section 501.091, Transportation Code.
33	33	(4-a) "License holder" means a person who holds a
34	34	license as a salvage vehicle dealer, salvage pool operator, or
35	35	salvage vehicle rebuilder issued under this chapter.
36	36	(4-b) "Metal recycler" means a person who:
37	37	(A) is engaged in the business of obtaining,
38	38	converting, or selling ferrous or nonferrous metal for conversion
39	39	into raw material products consisting of prepared grades and having
40	40	an existing or potential economic value;
41	41	(B) has a facility to convert ferrous or
42	42	nonferrous metal into raw material products by a method other than
43	43	the exclusive use of hand tools, including the processing, sorting,
44	44	cutting, classifying, cleaning, baling, wrapping, shredding,
45	45	shearing, or changing the physical form or chemical content of the
46	46	metal; and
47	47	(C) sells or purchases the ferrous or nonferrous
48	48	metal solely for use as raw material in the production of new
49	49	products.
50	50	(4-c) "Motor vehicle" has the meaning assigned by
51	51	Section 501.002, Transportation Code.
52	52	(7) "Salvage vehicle dealer" means a person engaged in
53	53	this state in the business of acquiring, selling, or otherwise
54	54	dealing in nonrepairable motor vehicles, salvage motor vehicles,
55	55	or, if incidental to a salvage vehicle dealer's primary business,
56	56	used automotive parts, regardless of whether the person holds a
57	57	license to engage in that business. The term does not include a
58	58	person who:
59	59	(A) buys not more than five nonrepairable motor
60	60	vehicles or salvage motor vehicles in the same calendar year;
61	61	(B) is a licensed used automotive parts recycler;
62	62	(C) is a licensed salvage vehicle rebuilder; or
63	63	(D) is a licensed salvage pool operator.
64	64	(8) "Salvage vehicle rebuilder" means a person who
65	65	acquires and repairs, rebuilds, or reconstructs for operation on a
66	66	public highway more than five salvage motor vehicles in a calendar
67	67	year. The term includes a person who repairs, rebuilds, or
68	68	reconstructs for operation on a public highway more than five
69	69	salvage motor vehicles in a calendar year that are acquired by
70	70	another person and returned to that person after the repair,
71	71	rebuilding, or reconstruction.
72	72	(9) "Used parts dealer" and "used automotive parts
73	73	recycler" have the meaning assigned to "used automotive parts
74	74	recycler" by Section 2309.002.
75	75	SECTION 4. Sections 2302.0015(b) and (c), Occupations Code,
76	76	are amended to read as follows:
77	77	(b) For the purpose of enforcing or administering this
78	78	chapter, [or] Chapter 501 or 502, Transportation Code, or board
79	79	rules, a member of the board, an employee or agent of the board or
80	80	department, a member of the Public Safety Commission, an officer of
81	81	the Department of Public Safety, or a peace officer may at a
82	82	reasonable time:
83	83	(1) enter the premises of a business regulated under
84	84	one of those chapters; [and]
85	85	(2) inspect or copy any document, record, vehicle,
86	86	part, or other item regulated under one of those chapters; and
87	87	(3) inspect the inventory on the premises of a license
88	88	holder.
89	89	(c) A person described by Subsection (a) or an employee of a
90	90	person described by Subsection (a):
91	91	(1) may not refuse or interfere with an entry or
92	92	inspection under this section; [and]
93	93	(2) shall cooperate fully with a person conducting an
94	94	inspection under this section to assist in the recovery of stolen
95	95	motor vehicles and parts and to prevent the sale or transfer of
96	96	stolen motor vehicles and parts; and
97	97	(3) on demand shall give to a person conducting an
98	98	inspection under this section a copy of a record required to be
99	99	maintained under this chapter, Chapter 501 or 502, Transportation
100	100	Code, or board rule, including an inventory record or bill of sale.
101	101	SECTION 5. Section 2302.005, Occupations Code, is amended
102	102	to read as follows:
103	103	Sec. 2302.005. APPLICABILITY OF CERTAIN STATUTES, RULES,
104	104	MUNICIPAL ORDINANCES, [LICENSES,] AND COUNTY ORDERS [PERMITS]. A
105	105	[This chapter:
106	106	[(1) is in addition to any municipal ordinance
107	107	relating to the regulation of a] person who deals in nonrepairable
108	108	motor vehicles or salvage motor vehicles, including a salvage
109	109	vehicle dealer, salvage pool operator, salvage vehicle rebuilder,
110	110	or salvage vehicle agent, shall comply with:
111	111	(1) this chapter;
112	112	(2) Chapters 501, 502, and, if applicable, 503,
113	113	Transportation Code;
114	114	(3) board rules;
115	115	(4) all applicable county orders [or used parts]; and
116	116	(5) all applicable municipal ordinances
117	117	[(2) does not prohibit the enforcement of a
118	118	requirement of a municipal license or permit that is related to an
119	119	activity regulated under this chapter].
120	120	SECTION 6. Subchapter B, Chapter 2302, Occupations Code, is
121	121	amended by adding Section 2302.0521 to read as follows:
122	122	Sec. 2302.0521. DEPOSIT OF REVENUE. Notwithstanding any
123	123	other law, all money collected by the board under this chapter shall
124	124	be deposited in the state treasury to the credit of the Texas
125	125	Department of Motor Vehicles.
126	126	SECTION 7. Section 2302.101, Occupations Code, is amended
127	127	to read as follows:
128	128	Sec. 2302.101. LICENSE REQUIRED [FOR SALVAGE VEHICLE
129	129	DEALER]. Unless a person holds a [salvage vehicle dealer] license
130	130	issued under this chapter, the person may not:
131	131	(1) act as a salvage vehicle dealer, salvage pool
132	132	operator, or salvage vehicle rebuilder; or
133	133	(2) store or display a motor vehicle as an agent or
134	134	escrow agent of an insurance company.
135	135	SECTION 8. Section 2302.102, Occupations Code, is amended
136	136	to read as follows:
137	137	Sec. 2302.102. [SALVAGE VEHICLE DEALER] LICENSE TYPES
138	138	[CLASSIFICATION]. (a) The department may issue one or more of the
139	139	following licenses to a person [shall classify a salvage vehicle
140	140	dealer] according to the type of activity performed by the person:
141	141	(1) salvage vehicle dealer license;
142	142	(2) salvage pool operator license; or
143	143	(3) salvage vehicle rebuilder license [dealer].
144	144	(b) A person [salvage vehicle dealer] may not engage in
145	145	activities as a salvage vehicle dealer, salvage pool operator, or
146	146	salvage vehicle rebuilder [of a particular classification] unless
147	147	the person [dealer] holds a license issued by the department
148	148	authorizing that activity [with an endorsement in that
149	149	classification].
150	150	(c) A person who engages in business as a salvage vehicle
151	151	rebuilder and holds a salvage vehicle rebuilder license must also
152	152	hold the appropriate general distinguishing number issued under
153	153	Chapter 503, Transportation Code, unless the salvage vehicle
154	154	rebuilder only repairs, rebuilds, or reconstructs salvage motor
155	155	vehicles owned by another person.
156	156	SECTION 9. Section 2302.103(a), Occupations Code, is
157	157	amended to read as follows:
158	158	(a) To apply for a salvage vehicle dealer, salvage pool
159	159	operator, or salvage vehicle rebuilder license, a person must
160	160	submit to the department an application on a form prescribed by the
161	161	department and the application fee.
162	162	SECTION 10. Section 2302.104, Occupations Code, is amended
163	163	to read as follows:
164	164	Sec. 2302.104. CONTENTS OF APPLICATION. (a) An application
165	165	for a [salvage vehicle dealer] license must include:
166	166	(1) the name, business address, e-mail address, and
167	167	business telephone number of the applicant;
168	168	(2) each [the] name under which the applicant proposes
169	169	to conduct business;
170	170	(3) the location, by number, street, county, and
171	171	municipality, where [of each office at which] the applicant
172	172	proposes to conduct business;
173	173	(4) a statement indicating whether the applicant
174	174	previously applied for a license under this chapter and, if so, a
175	175	statement indicating the result of the previous application and
176	176	indicating whether the applicant has ever been the holder of a
177	177	license issued under this chapter that was revoked or suspended;
178	178	(5) an acknowledgment that the applicant is familiar
179	179	with and in compliance with municipal ordinances, county orders,
180	180	and state laws governing the activities covered by the license for
181	181	which the applicant is applying at the location specified in the
182	182	application [a statement of the previous history, record, and
183	183	associations of the applicant to the extent sufficient to
184	184	establish, to the satisfaction of the department, the business
185	185	reputation and character of the applicant];
186	186	(6) the applicant's social security number and federal
187	187	tax identification number, if any;
188	188	(7) the applicant's state sales tax number; and
189	189	(8) any other information required by rules adopted
190	190	under this chapter.
191	191	(b) In addition to the information required by Subsection
192	192	(a), the application of a corporation must include:
193	193	(1) the state of its incorporation;
194	194	(2) the name, address, date of birth, and social
195	195	security number of each principal officer or director of the
196	196	corporation; and
197	197	(3) [a statement of the previous history, record, and
198	198	associations of each officer and each director to the extent
199	199	sufficient to establish, to the satisfaction of the department, the
200	200	business reputation and character of the applicant; and
201	201	[(4)] a statement showing whether an officer,
202	202	director, or employee of the applicant has been refused a license
203	203	under this chapter or a similar license issued by another
204	204	jurisdiction [as a salvage vehicle dealer] or has been the holder of
205	205	a license issued under this chapter or a similar license issued by
206	206	another jurisdiction that was revoked or suspended.
207	207	(c) In addition to the information required by Subsection
208	208	(a), the application of a partnership must include:
209	209	(1) the name, address, date of birth, and social
210	210	security number of each owner or partner; and
211	211	(2) [a statement of the previous history, record, and
212	212	associations of each owner and each partner to the extent
213	213	sufficient to establish, to the satisfaction of the department, the
214	214	business reputation and character of the applicant; and
215	215	[(3)] a statement showing whether an owner, partner, or
216	216	employee of the applicant has been refused a license under this
217	217	chapter or a similar license issued by another jurisdiction [as a
218	218	salvage vehicle dealer] or has been the holder of a license issued
219	219	under this chapter or a similar license issued by another
220	220	jurisdiction that was revoked or suspended.
221	221	SECTION 11. The heading to Section 2302.105, Occupations
222	222	Code, is amended to read as follows:
223	223	Sec. 2302.105. REVIEW OF APPLICATION [DEPARTMENT
224	224	INVESTIGATION].
225	225	SECTION 12. Section 2302.105(a), Occupations Code, is
226	226	amended to read as follows:
227	227	(a) The department shall review an application for the
228	228	issuance or renewal of or an amendment to a license issued under
229	229	this chapter and may investigate the applicant to determine
230	230	compliance with this chapter, board rules, and if applicable,
231	231	Chapter 503, Transportation Code [not issue a license under this
232	232	chapter until the department completes an investigation of the
233	233	applicant's qualifications].
234	234	SECTION 13. Section 2302.106(a), Occupations Code, is
235	235	amended to read as follows:
236	236	(a) The department shall issue a license to an applicant who
237	237	meets the license qualifications adopted under this chapter and
238	238	pays the required fee [fees].
239	239	SECTION 14. Sections 2302.107(b), (c), and (d), Occupations
240	240	Code, are amended to read as follows:
241	241	(b) A person is entitled to a salvage vehicle agent license
242	242	on application to the department, payment of the required fee, and
243	243	authorization from a salvage vehicle dealer to operate under the
244	244	salvage vehicle dealer's license.
245	245	(c) A salvage vehicle dealer may authorize not more than
246	246	five persons to operate as salvage vehicle agents under the salvage
247	247	vehicle dealer's license.
248	248	(d) A salvage vehicle agent may acquire, sell, or otherwise
249	249	deal in [,] nonrepairable or salvage motor vehicles as directed by
250	250	the authorizing salvage vehicle dealer.
251	251	SECTION 15. Section 2302.108, Occupations Code, is amended
252	252	by adding Subsection (e) to read as follows:
253	253	(e) The board may take disciplinary action against a salvage
254	254	vehicle dealer for an act or omission of a salvage vehicle agent
255	255	that was authorized by the salvage vehicle dealer or a person acting
256	256	as a representative of the salvage vehicle dealer and that is
257	257	grounds for the denial, revocation, or suspension of a salvage
258	258	vehicle dealer's license.
259	259	SECTION 16. The heading to Subchapter D, Chapter 2302,
260	260	Occupations Code, is amended to read as follows:
261	261	SUBCHAPTER D. LICENSE TERM, EXPIRATION, AND RENEWAL
262	262	SECTION 17. Section 2302.151, Occupations Code, is amended
263	263	to read as follows:
264	264	Sec. 2302.151. LICENSE TERM AND EXPIRATION. (a) A license
265	265	issued under this chapter is valid for the period prescribed by the
266	266	board [expires on the first anniversary of the date of issuance].
267	267	(b) The department may issue a license for a term of less
268	268	than the period prescribed under Subsection (a) to coordinate
269	269	expiration dates of licenses held by a person.
270	270	(c) The board by rule may implement a system under which
271	271	licenses expire on various dates during the year. For a year in
272	272	which a license expiration date is changed, the fee for the license
273	273	shall be prorated so that the license holder pays only that portion
274	274	of the fee that is allocable to the number of months during which
275	275	the license is valid. On renewal of the license on the new
276	276	expiration date, the entire license renewal fee is payable.
277	277	(d) If the board prescribes the term of a license under this
278	278	chapter for a period other than one year, the board shall prorate
279	279	the applicable annual fee required under this chapter as necessary
280	280	to reflect the term of the license.
281	281	(e) A person whose license has expired may not engage in the
282	282	activities that require a license until the license has been
283	283	renewed under this subchapter.
284	284	SECTION 18. Section 2302.152, Occupations Code, is amended
285	285	to read as follows:
286	286	Sec. 2302.152. NOTICE OF EXPIRATION. Not later than the
287	287	31st day before the expiration date of a person's license, the
288	288	department shall send [written] notice of the impending expiration
289	289	to the person at the person's last known address according to
290	290	department records.
291	291	SECTION 19. Sections 2302.153(a) and (d), Occupations Code,
292	292	are amended to read as follows:
293	293	(a) A person who is otherwise eligible to renew a license
294	294	issued under this chapter may renew an unexpired license by
295	295	submitting a completed renewal application and paying the required
296	296	renewal fee to the department on or before the expiration date of
297	297	the license.
298	298	(d) A person whose license has been expired for more than 90
299	299	days [one year or longer] may not renew the license. The person may
300	300	obtain a new license by complying with the requirements and
301	301	procedures for obtaining an original license.
302	302	SECTION 20. Section 2302.201, Occupations Code, is amended
303	303	to read as follows:
304	304	Sec. 2302.201. DUTIES ON ACQUISITION OF NONREPAIRABLE OR
305	305	SALVAGE MOTOR VEHICLE. (a) Except as provided by Section 501.0935,
306	306	Transportation Code, a license holder [salvage vehicle dealer] who
307	307	acquires ownership of a nonrepairable or salvage motor vehicle from
308	308	an owner must receive from the owner the motor vehicle's title, [a]
309	309	properly assigned to the license holder [title].
310	310	(b) The license holder [dealer] shall comply with
311	311	Subchapter E, Chapter 501, Transportation Code, and board rules.
312	312	SECTION 21. Section 2302.202, Occupations Code, is amended
313	313	to read as follows:
314	314	Sec. 2302.202. RECORDS OF PURCHASES. A license holder
315	315	[salvage vehicle dealer] shall maintain a record of each
316	316	nonrepairable or salvage motor vehicle purchased or sold by the
317	317	license holder [dealer].
318	318	SECTION 22. Section 2302.203, Occupations Code, is amended
319	319	to read as follows:
320	320	Sec. 2302.203. REGISTRATION OF NEW BUSINESS LOCATION.
321	321	Before moving a place of business or opening an additional place of
322	322	business, a license holder [salvage vehicle dealer] must apply to
323	323	the department to amend the license to reflect [register] the new
324	324	location [with the department]. A license holder may not engage in
325	325	a licensed activity from a new location until the license is amended
326	326	by the department to reflect the new location.
327	327	SECTION 23. Section 2302.204, Occupations Code, is amended
328	328	to read as follows:
329	329	Sec. 2302.204. CASUAL SALES. This chapter does not apply to
330	330	a person who purchases not more [fewer] than five nonrepairable
331	331	motor vehicles or salvage motor vehicles during a calendar year
332	332	from a license holder or [salvage vehicle dealer,] an insurance
333	333	company [or salvage pool operator] in a casual sale at auction,
334	334	except that:
335	335	(1) the board shall adopt rules as necessary to
336	336	regulate casual sales by license holders or [salvage vehicle
337	337	dealers,] insurance companies [, or salvage pool operators] and to
338	338	enforce this section; and
339	339	(2) a license holder or [salvage vehicle dealer,]
340	340	insurance company [, or salvage pool operator] who sells a motor
341	341	vehicle in a casual sale shall comply with those rules and
342	342	Subchapter E, Chapter 501, Transportation Code.
343	343	SECTION 24. The heading to Subchapter F, Chapter 2302,
344	344	Occupations Code, is amended to read as follows:
345	345	SUBCHAPTER F. ADDITIONAL DUTIES OF LICENSE HOLDER [SALVAGE VEHICLE
346	346	DEALER] IN CONNECTION WITH MOTOR VEHICLE COMPONENT PARTS
347	347	SECTION 25. Section 2302.252, Occupations Code, is amended
348	348	to read as follows:
349	349	Sec. 2302.252. REMOVAL OF LICENSE PLATES; INVENTORY. (a)
350	350	Immediately on receipt of a motor vehicle, nonrepairable motor
351	351	vehicle, or salvage motor vehicle, a license holder [salvage
352	352	vehicle dealer] shall remove any [unexpired] license plates [from
353	353	the vehicle] and place the license plates in a secure, locked place.
354	354	(b) A license holder [salvage vehicle dealer] shall
355	355	maintain on a form provided by the department an inventory of
356	356	[unexpired] license plates removed under Subsection (a). The
357	357	inventory must include:
358	358	(1) each license plate number;
359	359	(2) the make of the motor vehicle, nonrepairable motor
360	360	vehicle, or salvage motor vehicle from which the license plate was
361	361	removed;
362	362	(3) the motor number of the motor [that] vehicle,
363	363	nonrepairable motor vehicle, or salvage motor vehicle; and
364	364	(4) the vehicle identification number of the motor
365	365	[that] vehicle, nonrepairable motor vehicle, or salvage motor
366	366	vehicle.
367	367	SECTION 26. Section 2302.254, Occupations Code, is amended
368	368	to read as follows:
369	369	Sec. 2302.254. RECORD OF PURCHASE; INVENTORY OF PARTS. (a)
370	370	A license holder [salvage vehicle dealer] shall keep an accurate
371	371	and legible inventory of each used component part purchased by or
372	372	delivered to the license holder [dealer]. The inventory must
373	373	contain a record of each part that includes:
374	374	(1) the date of purchase or delivery;
375	375	(2) the name and [, age,] address [, sex, and driver's
376	376	license number] of the seller and a legible photocopy of the
377	377	seller's current photo identification containing a unique
378	378	identification number and expiration date [driver's license];
379	379	(3) the license plate number of the motor vehicle in
380	380	which the part was delivered;
381	381	(4) a complete description of the part, including the
382	382	type of material and, if applicable, the make, model, color, and
383	383	size of the part; and
384	384	(5) the vehicle identification number of the motor
385	385	vehicle, nonrepairable motor vehicle, or salvage motor vehicle from
386	386	which the part was removed.
387	387	(a-1) The identification document required by Subsection
388	388	(a) must be a:
389	389	(1) driver's license or identification card issued by
390	390	this state, or another state of the United States;
391	391	(2) United States or foreign passport;
392	392	(3) United States military identification card;
393	393	(4) North Atlantic Treaty Organization identification
394	394	document or identification document issued under a status of forces
395	395	agreement; or
396	396	(5) United States Department of Homeland Security,
397	397	United States Citizenship and Immigration Services, or United
398	398	States Department of State identification document.
399	399	(b) Instead of the information required by Subsection (a), a
400	400	license holder [salvage vehicle dealer] may record:
401	401	(1) the name of the person who sold the part or the
402	402	motor vehicle, nonrepairable motor vehicle, or salvage motor
403	403	vehicle from which the part was obtained; and
404	404	(2) the Texas certificate of inventory number or the
405	405	federal taxpayer identification number of that person.
406	406	(c) The department shall prescribe the form of the record
407	407	required under Subsection (a) and shall make the form available to
408	408	license holders [salvage vehicle dealers].
409	409	(d) This section does not apply to [:
410	410	[(1)] an interior component part or special accessory
411	411	part that is from a motor vehicle, nonrepairable motor vehicle, or
412	412	salvage motor vehicle more than 10 years of age[; or
413	413	[(2) a part delivered to a salvage vehicle dealer by a
414	414	commercial freight line or commercial carrier].
415	415	SECTION 27. Sections 2302.255(a), (b), (c), and (e),
416	416	Occupations Code, are amended to read as follows:
417	417	(a) A license holder [salvage vehicle dealer] shall:
418	418	(1) assign a unique inventory number to each
419	419	transaction in which the license holder [dealer] purchases or takes
420	420	delivery of a component part;
421	421	(2) attach the unique inventory number to each
422	422	component part the license holder [dealer] obtains in the
423	423	transaction; and
424	424	(3) retain each component part in its original
425	425	condition on the business premises of the license holder [dealer]
426	426	for at least three calendar days, excluding Sundays, after the date
427	427	the license holder [dealer] obtains the part.
428	428	(b) An inventory number attached to a component part under
429	429	Subsection (a) may not be removed while the part remains in the
430	430	inventory of the license holder [salvage vehicle dealer].
431	431	(c) A license holder [salvage vehicle dealer] shall record a
432	432	component part on an affidavit bill of sale if:
433	433	(1) the component part does not have a vehicle
434	434	identification number or the vehicle identification number has been
435	435	removed; or
436	436	(2) the vehicle identification number of the vehicle
437	437	from which the component part was removed is not available.
438	438	(e) This section does not apply to the purchase by a license
439	439	holder [salvage vehicle dealer] of a nonoperational engine,
440	440	transmission, or rear axle assembly from another license holder
441	441	[salvage vehicle dealer] or an automotive-related business.
442	442	SECTION 28. Section 2302.256, Occupations Code, is amended
443	443	to read as follows:
444	444	Sec. 2302.256. MAINTENANCE OF RECORDS. A license holder
445	445	[salvage vehicle dealer] shall keep a record required under this
446	446	subchapter on a form prescribed by the department. The license
447	447	holder [dealer] shall maintain two copies of each record required
448	448	under this subchapter until the first anniversary of the date the
449	449	license holder [dealer] sells or disposes of the item for which the
450	450	record is maintained.
451	451	SECTION 29. Section 2302.257(a), Occupations Code, is
452	452	amended to read as follows:
453	453	(a) On demand, a license holder [salvage vehicle dealer]
454	454	shall surrender to the department:
455	455	(1) [for cancellation] a certificate of title or
456	456	authority;
457	457	(2) a[,] sales receipt or transfer document;
458	458	(3) a[,] license plate;
459	459	(4) an[, or] inventory list; or
460	460	(5) any record or document the license holder [that
461	461	the dealer] is required to possess or maintain.
462	462	SECTION 30. Sections 2302.351(b) and (c), Occupations Code,
463	463	are amended to read as follows:
464	464	(b) If a license holder [salvage vehicle dealer], an
465	465	employee of the license holder [dealer] acting in the course of
466	466	employment, or a salvage vehicle agent operating under the salvage
467	467	vehicle dealer's license is convicted of more than one offense
468	468	under Section 2302.353(a), the district or county attorney for a
469	469	county in which the license holder's [dealer's] salvage business is
470	470	located may bring an action in that county to enjoin the license
471	471	holder's [dealer's] business operations for a period of at least one
472	472	year.
473	473	(c) An action under Subsection (b) must be brought in the
474	474	name of the state. If judgment is in favor of the state, the court
475	475	shall:
476	476	(1) enjoin the license holder [dealer] from
477	477	maintaining or participating in the business of a salvage vehicle
478	478	dealer, salvage pool operator, or salvage vehicle rebuilder for a
479	479	definite period of at least one year or indefinitely, as determined
480	480	by the court; and
481	481	(2) order that the license holder's [dealer's] place
482	482	of business be closed for the same period.
483	483	SECTION 31. Section 2302.354, Occupations Code, is amended
484	484	by adding Subsection (e) to read as follows:
485	485	(e) Notwithstanding any other law, an administrative
486	486	penalty recovered under this chapter shall be deposited in the
487	487	state treasury to the credit of the Texas Department of Motor
488	488	Vehicles.
489	489	SECTION 32. Section 2309.002, Occupations Code, is amended
490	490	by amending Subdivision (1) and adding Subdivision (8) to read as
491	491	follows:
492	492	(1) "Insurance company," ["metal recycler," "motor
493	493	vehicle,"] "nonrepairable motor vehicle," "nonrepairable vehicle
494	494	title," "salvage motor vehicle," and "salvage vehicle title[," and
495	495	"salvage vehicle dealer]" have the meanings assigned by Section
496	496	501.091, Transportation Code.
497	497	(8) "Metal recycler," "motor vehicle," and "salvage
498	498	vehicle dealer" have the meanings assigned by Section 2302.001.
499	499	SECTION 33. Section 2309.004, Occupations Code, is amended
500	500	to read as follows:
501	501	Sec. 2309.004. APPLICABILITY OF CHAPTER TO PERSONS LICENSED
502	502	UNDER CHAPTER 2302 [SALVAGE VEHICLE DEALERS]. (a) Except as
503	503	provided by Subsection (b), this chapter does not apply to a
504	504	transaction in which a salvage vehicle dealer, salvage pool
505	505	operator, or salvage vehicle rebuilder is a party.
506	506	(b) This chapter applies to a salvage vehicle dealer,
507	507	salvage pool operator, or salvage vehicle rebuilder who deals in
508	508	used automotive parts as more than an incidental part of that
509	509	person's [the salvage vehicle dealer's] primary business.
510	510	SECTION 34. The heading to Section 391.127, Transportation
511	511	Code, is amended to read as follows:
512	512	Sec. 391.127. PERSONS LICENSED UNDER CHAPTER 2302,
513	513	OCCUPATIONS CODE [SALVAGE VEHICLE DEALER LICENSE].
514	514	SECTION 35. Sections 501.091(2), (7), (11), (14), and (17),
515	515	Transportation Code, are amended to read as follows:
516	516	(2) "Casual sale" means the sale by a license holder
517	517	under Chapter 2302, Occupations Code, [salvage vehicle dealer] or
518	518	an insurance company of five or fewer nonrepairable motor vehicles
519	519	or salvage motor vehicles to the same person during a calendar year,
520	520	but does not include:
521	521	(A) a sale at auction to a license holder under
522	522	Chapter 2302, Occupations Code [salvage vehicle dealer];
523	523	(B) a sale to an insurance company, out-of-state
524	524	buyer, or governmental entity; or
525	525	(C) the sale of an export-only motor vehicle to a
526	526	person who is not a resident of the United States.
527	527	(7) "Metal recycler" has the meaning assigned by
528	528	Section 2302.001, Occupations Code [means a person who:
529	529	[(A) is engaged in the business of obtaining,
530	530	converting, or selling ferrous or nonferrous metal for conversion
531	531	into raw material products consisting of prepared grades and having
532	532	an existing or potential economic value;
533	533	[(B) has a facility to convert ferrous or
534	534	nonferrous metal into raw material products by method other than
535	535	the exclusive use of hand tools, including the processing, sorting,
536	536	cutting, classifying, cleaning, baling, wrapping, shredding,
537	537	shearing, or changing the physical form or chemical content of the
538	538	metal; and
539	539	[(C) sells or purchases the ferrous or nonferrous
540	540	metal solely for use as raw material in the production of new
541	541	products].
542	542	(11) "Out-of-state buyer" means a person licensed in
543	543	an automotive business by another state or jurisdiction if the
544	544	department has listed the holders of such a license as permitted
545	545	purchasers of salvage motor vehicles or nonrepairable motor
546	546	vehicles based on substantially similar licensing requirements and
547	547	on whether a person [salvage vehicle dealers] licensed under
548	548	Chapter 2302, Occupations Code, is [in Texas are] permitted to
549	549	purchase salvage motor vehicles or nonrepairable motor vehicles in
550	550	the other state or jurisdiction.
551	551	(14) "Rebuilder" has the meaning assigned to "salvage
552	552	vehicle rebuilder" by Section 2302.001, Occupations Code [means a
553	553	person who acquires and repairs, rebuilds, or reconstructs for
554	554	operation on a public highway, more than five salvage motor
555	555	vehicles in a calendar year].
556	556	(17) "Salvage vehicle dealer" has the meaning assigned
557	557	by Section 2302.001, Occupations Code [means a person engaged in
558	558	this state in the business of acquiring, selling, repairing,
559	559	rebuilding, reconstructing, or otherwise dealing in nonrepairable
560	560	motor vehicles, salvage motor vehicles, or, if incidental to a
561	561	salvage motor vehicle dealer's primary business, used automotive
562	562	parts regardless of whether the person holds a license issued by the
563	563	department to engage in that business. The term does not include an
564	564	unlicensed person who:
565	565	[(A) casually repairs, rebuilds, or reconstructs
566	566	not more than five nonrepairable motor vehicles or salvage motor
567	567	vehicles in the same calendar year;
568	568	[(B) buys not more than five nonrepairable motor
569	569	vehicles or salvage motor vehicles in the same calendar year; or
570	570	[(C) is a licensed used automotive parts recycler
571	571	if the sale of repaired, rebuilt, or reconstructed nonrepairable
572	572	motor vehicles or salvage motor vehicles is more than an incidental
573	573	part of the used automotive parts recycler's business].
574	574	SECTION 36. Sections 501.095(a) and (b), Transportation
575	575	Code, are amended to read as follows:
576	576	(a) If the department has not issued a nonrepairable vehicle
577	577	title, nonrepairable record of title, salvage vehicle title, or
578	578	salvage record of title for the motor vehicle and a comparable
579	579	out-of-state ownership document for the motor vehicle has not been
580	580	issued by another state or jurisdiction, a business or governmental
581	581	entity described by Subdivisions (1)-(3) may sell, transfer, or
582	582	release a nonrepairable motor vehicle or salvage motor vehicle only
583	583	to a person who is:
584	584	(1) a license holder under Chapter 2302, Occupations
585	585	Code [licensed salvage vehicle dealer], a used automotive parts
586	586	recycler under Chapter 2309, Occupations Code, or a metal recycler
587	587	under Chapter 2302, Occupations Code;
588	588	(2) an insurance company that has paid a claim on the
589	589	nonrepairable or salvage motor vehicle; or
590	590	(3) a governmental entity.
591	591	(b) A person, other than a salvage vehicle dealer, salvage
592	592	pool operator, salvage vehicle rebuilder, [a] used automotive parts
593	593	recycler, or [an] insurance company licensed to do business in this
594	594	state, who acquired ownership of a nonrepairable or salvage motor
595	595	vehicle that has not been issued a nonrepairable vehicle title,
596	596	nonrepairable record of title, salvage vehicle title, salvage
597	597	record of title, or a comparable ownership document issued by
598	598	another state or jurisdiction shall, before selling the motor
599	599	vehicle, surrender the properly assigned title for the motor
600	600	vehicle to the department and apply to the department for the
601	601	appropriate ownership document.
602	602	SECTION 37. Sections 501.099(b), (c), (d), (e), and (g),
603	603	Transportation Code, are amended to read as follows:
604	604	(b) A person may purchase a nonrepairable motor vehicle or a
605	605	salvage motor vehicle only if:
606	606	(1) the person purchases the motor vehicle from a
607	607	license holder under Chapter 2302, Occupations Code, [licensed
608	608	salvage vehicle dealer] or a governmental entity;
609	609	(2) the motor vehicle has been issued a nonrepairable
610	610	vehicle title or a salvage vehicle title; and
611	611	(3) the purchaser certifies to the seller on a form
612	612	provided by the department that the purchaser will:
613	613	(A) remove the motor vehicle from the United
614	614	States; and
615	615	(B) not return the motor vehicle to any state of
616	616	the United States as a motor vehicle titled or registered under its
617	617	manufacturer's vehicle identification number.
618	618	(c) A license holder under Chapter 2302, Occupations Code,
619	619	[salvage vehicle dealer] or a governmental entity that sells a
620	620	nonrepairable motor vehicle or a salvage motor vehicle to a person
621	621	who is not a resident of the United States shall, before the sale of
622	622	the motor vehicle, obtain a copy, photocopy, or other accurate
623	623	reproduction of a valid identification card, identification
624	624	certificate, or an equivalent document issued to the purchaser by
625	625	the appropriate authority of the jurisdiction in which the
626	626	purchaser resides that bears a photograph of the purchaser and is
627	627	capable of being verified using identification standards adopted by
628	628	the United States or the international community.
629	629	(d) The department by rule shall establish a list of
630	630	identification documents that are valid under Subsection (c) and
631	631	provide a copy of the list to each license holder under Chapter
632	632	2302, Occupations Code, [of a salvage vehicle dealer license] and
633	633	to each appropriate governmental entity.
634	634	(e) A license holder under Chapter 2302, Occupations Code,
635	635	[salvage vehicle dealer] or a governmental entity that sells a
636	636	nonrepairable motor vehicle or a salvage motor vehicle to a person
637	637	who is not a resident of the United States shall:
638	638	(1) stamp on the face of the title so as not to obscure
639	639	any name, date, or mileage statement on the title the words "FOR
640	640	EXPORT ONLY" in capital letters that are black; and
641	641	(2) stamp in each unused reassignment space on the
642	642	back of the title the words "FOR EXPORT ONLY" and print the number
643	643	of the license holder's [dealer's salvage vehicle] license or the
644	644	name of the governmental entity, as applicable.
645	645	(g) A license holder under Chapter 2302, Occupations Code,
646	646	[salvage vehicle dealer] or governmental entity who sells a
647	647	nonrepairable motor vehicle or a salvage motor vehicle under this
648	648	section to a person who is not a resident of the United States shall
649	649	keep on the business premises of the license holder [dealer] or
650	650	entity until the third anniversary of the date of the sale:
651	651	(1) a copy of each document related to the sale of the
652	652	vehicle; and
653	653	(2) a list of all vehicles sold under this section that
654	654	contains:
655	655	(A) the date of the sale;
656	656	(B) the name of the purchaser;
657	657	(C) a photocopy [the name] of [the country that
658	658	issued] the identification document provided by the purchaser[, as
659	659	shown on the document]; and
660	660	(D) the vehicle identification number.
661	661	SECTION 38. Section 501.1003, Transportation Code, is
662	662	amended to read as follows:
663	663	Sec. 501.1003. [SALVAGE DEALER] RESPONSIBILITIES OF
664	664	CERTAIN LICENSE HOLDERS. (a) If a license holder under Chapter
665	665	2302, Occupations Code, [salvage vehicle dealer] acquires
666	666	ownership of a nonrepairable motor vehicle or salvage motor vehicle
667	667	for the purpose of dismantling, scrapping, or destroying the motor
668	668	vehicle, the license holder [dealer] shall, before the 31st day
669	669	after the date the license holder [dealer] acquires the motor
670	670	vehicle, submit to the department a report stating that the motor
671	671	vehicle will be dismantled, scrapped, or destroyed. The license
672	672	holder [dealer] shall:
673	673	(1) make the report in a manner prescribed by the
674	674	department; and
675	675	(2) submit with the report a properly assigned
676	676	manufacturer's certificate of origin, regular certificate of
677	677	title, nonrepairable vehicle title, salvage vehicle title, or
678	678	comparable out-of-state ownership document for the motor vehicle.
679	679	(b) After receiving the report and title or document, the
680	680	department shall issue the license holder under Chapter 2302,
681	681	Occupations Code, [salvage vehicle dealer] a receipt for the
682	682	manufacturer's certificate of origin, regular certificate of
683	683	title, nonrepairable vehicle title, salvage vehicle title, or
684	684	comparable out-of-state ownership document.
685	685	(c) The department shall adopt rules to notify the license
686	686	holder under Chapter 2302, Occupations Code, [salvage dealer] if
687	687	the vehicle was not issued a printed title, but has a record of
688	688	title in the department's titling system.
689	689	SECTION 39. Section 501.108, Transportation Code, is
690	690	amended to read as follows:
691	691	Sec. 501.108. RECORD RETENTION. (a) Each license holder
692	692	under Chapter 2302, Occupations Code [licensed salvage vehicle
693	693	dealer], used automotive parts recycler, or insurance company that
694	694	sells a nonrepairable motor vehicle or a salvage motor vehicle at a
695	695	casual sale shall keep on the business premises of the license
696	696	holder, recycler, or [dealer or the] insurance company a list of all
697	697	casual sales made during the preceding 36-month period that
698	698	contains:
699	699	(1) the date of the sale;
700	700	(2) the name of the purchaser;
701	701	(3) a photocopy [the name] of [the jurisdiction that
702	702	issued] the identification document provided by the purchaser[, as
703	703	shown on the document]; and
704	704	(4) the vehicle identification number.
705	705	(b) A license holder under Chapter 2302, Occupations Code,
706	706	[salvage vehicle dealer] or used automotive parts recycler shall
707	707	keep on the business premises of the license holder [dealer] or
708	708	recycler, until the third anniversary of the date the report on the
709	709	motor vehicle is submitted to the department, a record of the
710	710	vehicle, its ownership, and its condition as dismantled, scrapped,
711	711	or destroyed as required by Section 501.1003.
712	712	SECTION 40. The following sections of the Occupations Code
713	713	are repealed:
714	714	(1) Section 2302.103(b);
715	715	(2) Sections 2302.153(c) and (e);
716	716	(3) Section 2302.258; and
717	717	(4) Section 2302.302.
718	718	SECTION 41. Section 2302.104, Occupations Code, as amended
719	719	by this Act, applies only to an application for a license submitted
720	720	on or after the effective date of this Act. An application for a
721	721	license submitted before that date is governed by the law in effect
722	722	on the date the application was submitted, and the former law is
723	723	continued in effect for that purpose.
724	724	SECTION 42. Section 2302.108(e), Occupations Code, as added
725	725	by this Act, applies only to conduct by a salvage vehicle agent
726	726	authorized on or after January 1, 2016. Conduct authorized before
727	727	that date is governed by the law in effect on the date the conduct
728	728	was authorized, and the former law is continued in effect for that
729	729	purpose.
730	730	SECTION 43. Not later than November 1, 2015, the Texas
731	731	Department of Motor Vehicles shall adopt any rules necessary to
732	732	implement the changes in law made by this Act and shall begin
733	733	accepting applications for and issuing salvage pool operator and
734	734	salvage vehicle rebuilder licenses.
735	735	SECTION 44. (a) Except as otherwise provided by this
736	736	section, this Act takes effect January 1, 2016.
737	737	(b) Sections 41 and 43 of this Act take effect September 1,
738	738	2015.
739	739	(c) Sections 2302.102(a), 2302.103(a), 2302.104, and
740	740	2302.105(a) and the heading to Section 2302.105, Occupations Code,
741	741	as amended by this Act, take effect September 1, 2015.