By Kubiak, Bosse                                      H.B. No. 2599
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the licensing and regulation of certain persons dealing
    1-3  in salvage vehicles and parts; providing criminal penalties.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Chapter 1, Title 116, Revised Statutes, is
    1-6  amended by adding Article 6687-1a to read as follows:
    1-7        Art. 6687-1a.  SALVAGE VEHICLE DEALERS
    1-8                      PART 1.  GENERAL PROVISIONS
    1-9        Sec. 1.01.  DEFINITIONS.  In this article:
   1-10              (1)  "Actual cash value" means the market value of a
   1-11  motor vehicle as determined:
   1-12                    (A)  from publications that are commonly used in
   1-13  the automotive and insurance industries to establish the value of
   1-14  motor vehicles; or
   1-15                    (B)  if the entity determining the value is an
   1-16  insurance company, by any other procedure recognized by the
   1-17  insurance industry, including market surveys, that is applied by
   1-18  the company in a uniform manner.
   1-19              (2)  "Automobile recycler" means a person who engages
   1-20  in the business of dealing in salvage vehicles for the purpose of
   1-21  dismantling the vehicles to sell used parts and the resulting scrap
   1-22  metal or a person otherwise engaged in the business of acquiring,
   1-23  selling, or dealing in salvage parts.  The term includes a dealer
   1-24  in used motor vehicle parts.
    2-1              (3)  "Casual sale" means the sale at auction of not
    2-2  more than one nonrepairable motor vehicle or late model salvage
    2-3  motor vehicle to the same person during a calendar year.
    2-4              (4)  "Commission" means the Texas Transportation
    2-5  Commission.
    2-6              (5)  "Department" means the Texas Department of
    2-7  Transportation.
    2-8              (6)  "Late model motor vehicle" means a motor vehicle
    2-9  that was manufactured during the preceding six model years,
   2-10  including the current model year.
   2-11              (7)  "Major component part" means one of the following
   2-12  parts of a vehicle:
   2-13                    (A)  the engine;
   2-14                    (B)  the transmission;
   2-15                    (C)  the frame;
   2-16                    (D)  the right or left front fender;
   2-17                    (E)  the hood;
   2-18                    (F)  a door allowing entrance to or egress from
   2-19  the passenger compartment of the vehicle;
   2-20                    (G)  the front or rear bumper;
   2-21                    (H)  the right or left quarter panel;
   2-22                    (I)  the deck lid, tailgate, or hatchback;
   2-23                    (J)  the cargo box of a pickup truck;
   2-24                    (K)  the cab of a truck; or
   2-25                    (L)  the body of a passenger vehicle.
   2-26              (8)  "Motor vehicle" has the meaning assigned by the
   2-27  Uniform Act Regulating Traffic on Highways (Article 6701d, Vernon's
    3-1  Texas Civil Statutes).
    3-2              (9)  "Nonrepairable vehicle" means:
    3-3                    (A)  a late model vehicle that is damaged or
    3-4  missing a major component part to the extent that the total
    3-5  estimated cost of repairs to rebuild or reconstruct the vehicle,
    3-6  including parts and labor other than the cost of materials and
    3-7  labor for repainting the vehicle but excluding sales taxes on the
    3-8  total cost of the repairs, and excluding the cost of repairs to
    3-9  repair hail damage, is equal to or greater than an amount equal to
   3-10  95 percent of the actual cash value of the vehicle in its
   3-11  predamaged condition; or
   3-12                    (B)  a vehicle that comes into this state with a
   3-13  nonrepairable vehicle certificate of title or other comparable
   3-14  certificate of title.
   3-15              (10)  "Nonrepairable vehicle certificate of title"
   3-16  means any document issued by the department that evidences
   3-17  ownership of a nonrepairable vehicle.
   3-18              (11)  "Out-of-state buyer" means a person licensed by
   3-19  another state or jurisdiction in an automotive business if the
   3-20  department has listed the holders of such license as permitted
   3-21  purchasers of salvage motor vehicles or nonrepairable motor
   3-22  vehicles based on substantially similar licensing requirements and
   3-23  on whether salvage vehicle dealers licensed in Texas are permitted
   3-24  to purchase salvage motor vehicles or nonrepairable motor vehicles
   3-25  in the other state or jurisdiction.
   3-26              (12)  "Person" means an individual, partnership,
   3-27  corporation, trust, association, or other private legal entity.
    4-1              (13)  "Salvage part" means a major component part of a
    4-2  late model salvage vehicle that is serviceable to the extent that
    4-3  it can be reused.
    4-4              (14)  "Salvage vehicle" or "late model salvage vehicle"
    4-5  means:
    4-6                    (A)  a late model motor vehicle with a major
    4-7  component part that is damaged or missing to the extent that the
    4-8  total estimated cost of repairs to rebuild or reconstruct the
    4-9  vehicle, including parts and labor, but excluding the cost of
   4-10  repairs to repair hail damage, is equal to or greater than an
   4-11  amount equal to 75 percent of the actual cash value of the vehicle
   4-12  in its predamaged condition; or
   4-13                    (B)  a damaged vehicle that comes into this state
   4-14  under a salvage vehicle certificate of title or other comparable
   4-15  certificate of title.
   4-16              (15)  "Salvage vehicle agent" means a person employed
   4-17  by a licensed salvage vehicle dealer to acquire, sell, or otherwise
   4-18  deal in late model salvage vehicles or salvage parts in this state.
   4-19              (16)  "Salvage vehicle certificate of title" means any
   4-20  document issued by the department that evidences ownership of a
   4-21  salvage vehicle.
   4-22              (17)  "Salvage vehicle dealer" means a person who is
   4-23  engaged in this state in the business of acquiring, selling, or
   4-24  otherwise dealing in salvage vehicles or vehicle parts of a type
   4-25  required to be covered by a salvage vehicle certificate of title or
   4-26  nonrepairable vehicle certificate of title under a license issued
   4-27  by the department that allows the holder of the license to acquire,
    5-1  sell, dismantle, repair, or otherwise deal in salvage vehicles.
    5-2              (18)  "Salvage pool operator" means a person who
    5-3  engages in the business of selling nonrepairable vehicles or
    5-4  salvage vehicles at auction, including wholesale auction, or
    5-5  otherwise.
    5-6              (19)  "Salvage vehicle record" means the record of
    5-7  sales and purchases for each salvage vehicle handled by a salvage
    5-8  vehicle dealer.
    5-9        Sec. 1.02.  POWERS AND DUTIES OF COMMISSION.  (a)  The Texas
   5-10  Transportation Commission shall adopt rules as necessary to
   5-11  administer this article and may take other action as necessary to
   5-12  enforce this article.
   5-13        (b)  The commission shall set application fees, license fees,
   5-14  renewal fees, and other fees as required to implement this article.
   5-15  The commission shall set the fees in amounts reasonable and
   5-16  necessary to implement this article.
   5-17        Sec. 1.03.  DETERMINATION OF ESTIMATED COST OF REPAIR.  (a)
   5-18  The estimated cost of repair parts shall be determined by using a
   5-19  manual of repair costs or other instrument that is generally
   5-20  recognized and commonly used in the motor vehicle insurance
   5-21  industry to determine those costs or an estimate of the actual cost
   5-22  of the repair parts.
   5-23        (b)  The estimated labor costs shall be computed by using the
   5-24  hourly rate and time allocations that are reasonable and commonly
   5-25  assessed in the repair industry in the community in which the
   5-26  repairs are performed.
   5-27                     PART 2.  LICENSE REQUIREMENTS
    6-1        Sec. 2.01.  LICENSE REQUIRED; EXEMPTIONS.  (a)  A person may
    6-2  not act as an automobile recycler or salvage vehicle dealer,
    6-3  including storing or displaying vehicles as an agent or escrow
    6-4  agent of an insurance company, unless the person holds a salvage
    6-5  vehicle dealer license issued under this article.
    6-6        (b)  A person may not act as a salvage vehicle agent unless
    6-7  the person holds a salvage vehicle agent license issued under this
    6-8  article.
    6-9        (c)  This article does not apply to an insurance company
   6-10  authorized to engage in the business of insurance in this state.
   6-11        (d)  This article does not apply to, and does not preclude or
   6-12  prohibit any sales to, purchases by, or other transactions by or
   6-13  with, a person described by Subsection (g), Article 6687-2b,
   6-14  Revised Statutes, except as provided by Subsection (e) or (f) of
   6-15  this section.
   6-16        (e)  A person described by Subsection (g), Article 6687-2b,
   6-17  Revised Statutes, shall submit to the department the certificate of
   6-18  title or equivalent document that the person receives in
   6-19  conjunction with the purchase of a motor vehicle not later than the
   6-20  60th day after the date of receipt of the certificate of title or
   6-21  equivalent document.
   6-22        (f)  This article applies to a transaction with a person
   6-23  described by Subsection (g), Article 6687-2b, Revised Statutes, in
   6-24  which a motor vehicle is sold or delivered to the person for the
   6-25  purpose of reuse or resale as a motor vehicle or as motor vehicle
   6-26  parts if the motor vehicle is so used.
   6-27        (g)  Except as otherwise provided by this subsection, this
    7-1  article does not apply to a person who purchases a nonrepairable
    7-2  vehicle or salvage vehicle from a salvage pool operator in a casual
    7-3  sale.  The commission shall adopt rules as necessary to regulate
    7-4  casual sales and to enforce this subsection.  A salvage vehicle
    7-5  pool operator that sells a vehicle in a casual sale shall comply
    7-6  with each rule adopted by the commission regarding that sale.  For
    7-7  purposes of this subsection, "casual sale" means the sale of not
    7-8  more than one nonrepairable vehicle or salvage vehicle to the same
    7-9  individual during a calendar year.
   7-10        Sec. 2.02.  LICENSE APPLICATION.  (a)  An applicant for a
   7-11  salvage vehicle dealer license must apply on a form prescribed by
   7-12  the department.  The application form must be signed by the
   7-13  applicant and accompanied by the application fee.  The application
   7-14  must include:
   7-15              (1)  the name, business address, and business telephone
   7-16  number of the applicant;
   7-17              (2)  the name under which the applicant will do
   7-18  business;
   7-19              (3)  the location, by number, street, and municipality,
   7-20  of each office from which the applicant will conduct business;
   7-21              (4)  a statement indicating whether the applicant has
   7-22  previously applied for a license under this article, the result of
   7-23  the previous application, and whether the applicant has ever been
   7-24  the holder of a license under this article that was revoked or
   7-25  suspended;
   7-26              (5)  a statement of the previous history, record, and
   7-27  associations of the applicant to the extent sufficient to
    8-1  establish, to the satisfaction of the department, the business
    8-2  reputation and character of the applicant;
    8-3              (6)  the applicant's federal tax identification number,
    8-4  if any;
    8-5              (7)  the applicant's state sales tax number; and
    8-6              (8)  other information as required by rules adopted
    8-7  under this article.
    8-8        (b)  A license may not be issued in a fictitious name that
    8-9  may be confused with or is similar to that of a governmental entity
   8-10  or that is otherwise deceptive or misleading to the public.
   8-11        Sec. 2.03.  ADDITIONAL REQUIREMENTS FOR CORPORATE OR
   8-12  PARTNERSHIP LICENSE.  (a)  If a salvage vehicle dealer license
   8-13  applicant intends to engage in business through a corporation, the
   8-14  license application must include, in addition to the information
   8-15  required under Section 2.02 of this article:
   8-16              (1)  the state of incorporation;
   8-17              (2)  the name, address, date of birth, and social
   8-18  security number of each of the principal officers and directors of
   8-19  the corporation;
   8-20              (3)  a statement of the previous history, record, and
   8-21  associations of each officer and director to the extent sufficient
   8-22  to establish, to the satisfaction of the department, the business
   8-23  reputation and character of the applicant; and
   8-24              (4)  a statement showing whether an employee, officer,
   8-25  or director has been refused a license as a salvage vehicle dealer
   8-26  or has been the holder of a license that was revoked or suspended.
   8-27        (b)  If the license applicant intends to engage in business
    9-1  through a partnership, the license application must include, in
    9-2  addition to the information required under Section 2.02 of this
    9-3  article:
    9-4              (1)  the name, address, date of birth, and social
    9-5  security number of each owner or partner;
    9-6              (2)  a statement of the previous history, record, and
    9-7  associations of each owner and partner to the extent sufficient to
    9-8  establish, to the satisfaction of the department, the business
    9-9  reputation and character of the applicant; and
   9-10              (3)  a statement showing whether a partner, owner, or
   9-11  employee has been refused a license as a salvage vehicle dealer or
   9-12  has been the holder of a license that was revoked or suspended.
   9-13        Sec. 2.04.  LICENSE BY RECIPROCITY.  (a)  The department may
   9-14  issue a reciprocal license to an applicant for a salvage vehicle
   9-15  dealer license who is not a permanent resident of this state if the
   9-16  applicant:
   9-17              (1)  holds a license as a salvage vehicle dealer issued
   9-18  by another state that:
   9-19                    (A)  the department determines to have license
   9-20  requirements substantially similar to those of this state; and
   9-21                    (B)  grants analogous reciprocity to residents of
   9-22  this state; and
   9-23              (2)  pays the application fee required by Section
   9-24  2.02(a) of this article.
   9-25        (b)  Each person who holds a reciprocal license shall comply
   9-26  with all laws, rules, and regulations of this state applicable to
   9-27  salvage vehicle dealers, including the collection of state sales
   10-1  tax as appropriate for services performed under this article.
   10-2        (c)  The commissioner may enter into reciprocal agreements
   10-3  with the appropriate officials of any other state in order to
   10-4  implement this section.
   10-5        Sec. 2.05.  CLASSIFICATION OF LICENSE ENDORSEMENTS.  (a)  The
   10-6  department shall classify salvage vehicle dealers according to the
   10-7  type of activity performed by the dealers.  A salvage vehicle
   10-8  dealer may not engage in activities of a particular classification
   10-9  as provided by this article unless the salvage vehicle dealer holds
  10-10  a license endorsement under that classification.
  10-11        (b)  An applicant may apply for a salvage vehicle dealer
  10-12  license with an endorsement in one or more of the following
  10-13  classifications:
  10-14              (1)  new automobile dealer;
  10-15              (2)  used automobile dealer;
  10-16              (3)  used vehicle parts dealer;
  10-17              (4)  salvage vehicle pool operator;
  10-18              (5)  salvage vehicle broker; or
  10-19              (6)  salvage vehicle rebuilder.
  10-20        Sec. 2.06.  INVESTIGATION.  (a)  The department may not grant
  10-21  a license under this article until the department completes an
  10-22  investigation of the applicant's qualifications under this article.
  10-23        (b)  The department shall conduct the investigation not later
  10-24  than the 15th day after the date on which the application is
  10-25  received by the department and shall report the results of the
  10-26  investigation to the applicant.
  10-27        Sec. 2.07.  LICENSE ISSUANCE.  The department shall issue a
   11-1  license to an applicant who meets the license qualifications
   11-2  adopted under this article and pays the required fees.
   11-3        Sec. 2.08.  LICENSE RENEWAL.  (a)  A license issued under
   11-4  this article expires on the first anniversary of the date of
   11-5  issuance and may be renewed annually on or before the expiration
   11-6  date on payment of the required renewal fee.
   11-7        (b)  If a license holder fails to renew the license before
   11-8  its expiration date, the license holder may renew the license on
   11-9  payment of the renewal fee and a late fee set by the commission.
  11-10  If the license is not renewed before the first anniversary of the
  11-11  date on which the license expired, the license holder must apply
  11-12  for a new license in the same manner as an applicant for an initial
  11-13  license.
  11-14        Sec. 2.09.  REGISTRATION OF BUSINESS LOCATIONS.  (a)  A
  11-15  license applicant who intends to operate as a salvage vehicle
  11-16  dealer at more than one location must list in the application each
  11-17  location at which business is to be conducted.
  11-18        (b)  Before moving a place of business or opening an
  11-19  additional place of business, a salvage vehicle dealer must
  11-20  register the new location with the department.
  11-21                  PART 3.   DUTIES OF LICENSE HOLDER
  11-22        Sec. 3.01.  CERTIFICATE OF TITLE.  (a)  If a salvage vehicle
  11-23  dealer acquires ownership of a late model salvage vehicle from an
  11-24  owner, the dealer must receive an assigned certificate of title.
  11-25  If the assigned certificate of title is not a salvage vehicle
  11-26  certificate of title, a nonrepairable vehicle certificate of title,
  11-27  or comparable ownership document issued by another state or
   12-1  jurisdiction, the licensed salvage vehicle dealer shall, not later
   12-2  than the 10th day after the date of receipt of the title, surrender
   12-3  the assigned certificate of title to the department and apply for a
   12-4  salvage vehicle certificate of title or a nonrepairable vehicle
   12-5  certificate of title, as appropriate.
   12-6        (b)  If a late model salvage vehicle or nonrepairable vehicle
   12-7  is to be dismantled, scrapped, or destroyed, the salvage vehicle
   12-8  dealer shall surrender an assigned certificate of title, salvage
   12-9  vehicle certificate of title, nonrepairable vehicle certificate of
  12-10  title, or comparable ownership document issued by another state or
  12-11  jurisdiction to the department in the manner prescribed by the
  12-12  department not later than the 30th day after the date the vehicle
  12-13  is acquired and report to the department that the vehicle was
  12-14  dismantled, scrapped, or destroyed.
  12-15        (c)  If the holder of a salvage vehicle dealer license
  12-16  acquires ownership of an older model vehicle from an owner and
  12-17  receives an assigned certificate of title and the vehicle is to be
  12-18  dismantled, scrapped, or destroyed, the license holder shall
  12-19  surrender the assigned certificate of title to the department on a
  12-20  form prescribed by the department not later than the 30th day after
  12-21  the date on which the title is received and present evidence that
  12-22  the vehicle was dismantled, scrapped, or destroyed.  The license
  12-23  holder shall keep a record of the vehicle.
  12-24        Sec. 3.02.  RECORDS.  Each holder of a salvage vehicle dealer
  12-25  license shall maintain records of each salvage vehicle and any
  12-26  salvage parts purchased by the license holder and shall maintain
  12-27  sales records as required by this article.
   13-1        Sec. 3.03.  AUTHORIZED SALE.  A person may not sell,
   13-2  transfer, or release a late model salvage vehicle or a
   13-3  nonrepairable motor vehicle to anyone other than:
   13-4              (1)  a governmental entity;
   13-5              (2)  the vehicle's former owner;
   13-6              (3)  a licensed salvage vehicle dealer;
   13-7              (4)  an out-of-state buyer;
   13-8              (5)  a buyer in a casual sale at auction; or
   13-9              (6)  a person described by Subsection (g), Article
  13-10  6687-2b, Revised Statutes.
  13-11        Sec. 3.04.  AGENTS.  The holder of a salvage vehicle dealer
  13-12  license may authorize not more than five persons to operate as
  13-13  salvage vehicle agents under the dealer's license.  An agent may
  13-14  acquire, sell, or otherwise deal in late model salvage vehicles,
  13-15  nonrepairable vehicles, or salvage parts as directed by the dealer.
  13-16  An agent authorized to operate under this section is entitled to a
  13-17  salvage vehicle agent license on application to the department and
  13-18  payment of the required fee.
  13-19              PART 4.  DISCIPLINARY ACTIONS AND PENALTIES
  13-20        Sec. 4.01.  DENIAL, SUSPENSION, OR REVOCATION OF LICENSE.
  13-21  (a)  The department may deny, suspend, revoke, or reinstate a
  13-22  license issued under this article.
  13-23        (b)  The commission shall adopt rules establishing the
  13-24  grounds for the denial, suspension, revocation, or reinstatement of
  13-25  a license and establishing procedures for disciplinary actions.
  13-26        (c)  Proceedings relating to the denial, suspension, or
  13-27  revocation of a license issued under this article are subject to
   14-1  Chapter 2001, Government Code.
   14-2        (d)  A person whose license is revoked may not apply for a
   14-3  new license before the first anniversary of the date of the
   14-4  revocation.
   14-5        Sec. 4.02.  CRIMINAL PENALTY.  (a)  A person commits an
   14-6  offense if the person acts as a salvage vehicle dealer without a
   14-7  salvage vehicle dealer license issued under this article.
   14-8        (b)  A person commits an offense if the person acts as a
   14-9  salvage vehicle agent without a salvage vehicle agent license
  14-10  issued under this article.
  14-11        (c)  A person commits an offense if the person violates a
  14-12  provision of this article, other than Subsection (a) or (b) of this
  14-13  section, or a rule adopted by the commission under this article.
  14-14        (d)  An offense under this section is a Class A misdemeanor.
  14-15                  PART 5.  EFFECT ON LOCAL REGULATION
  14-16        Sec. 5.01.  CUMULATIVE EFFECT; EFFECT ON MUNICIPAL LICENSES.
  14-17  (a)  This article is cumulative of municipal ordinances relating to
  14-18  the regulation of persons who deal in salvage vehicles.
  14-19        (b)  This article does not prohibit, and may not be construed
  14-20  as prohibiting, the enforcement of a requirement of a municipal
  14-21  license or permit that is related to an activity regulated under
  14-22  this article.
  14-23        SECTION 2.  Section 1, Chapter 506, Acts of the 57th
  14-24  Legislature, Regular Session, 1961 (Article 6687-2, Vernon's Texas
  14-25  Civil Statutes), is amended to read as follows:
  14-26        Sec. 1.  SALVAGE VEHICLE DEALERS.  (a)  In this section:
  14-27              (1)  "Salvage vehicle <Motor vehicle salvage> dealer"
   15-1  has the meaning assigned by Article 6687-1a, Revised Statutes
   15-2  <means an individual, corporation, association, partnership,
   15-3  organization, or other entity engaged in the business of obtaining
   15-4  abandoned, wrecked, or junked motor vehicles or motor vehicle parts
   15-5  for scrap disposal, resale, repairing, rebuilding, demolition, or
   15-6  other form of salvage>.
   15-7              (2)  "Component part" means the front end assembly or
   15-8  tail section of a motor vehicle, the cab of a truck (light or
   15-9  heavy), the bed of a one ton or lighter truck, an interior
  15-10  component part of a motor vehicle, a special accessory part, or a
  15-11  vehicle part that contains or should contain a federal safety
  15-12  sticker, motor number, serial number, manufacturer's permanent
  15-13  vehicle identification number, or a derivative of a vehicle
  15-14  identification number.
  15-15              (3)  "Front-end assembly" means the hood, right or left
  15-16  front fender, grill, bumper, radiator, or radiator support, if two
  15-17  or more such parts are assembled together as one unit.
  15-18              (4)  "Tail section" means the roof, floor pan, right or
  15-19  left rear quarter panel, deck lid, or rear bumper, if two or more
  15-20  of such parts are assembled together as one unit.
  15-21              (5)  "Federal safety sticker" means a sticker, label,
  15-22  or tag required by 49 U.S.C. Section 30115 <15 U.S.C. Section 1403>
  15-23  or rules adopted under that section.
  15-24              (6)  "Interior component part" means the front or rear
  15-25  seat or radio of a motor vehicle.
  15-26              (7)  "Special accessory part" means the tire, wheel,
  15-27  tailgate, or removable glass top of a motor vehicle.
   16-1              (8)  "Motor vehicle" has the meaning given by
   16-2  Subsection (b), Section 2, Uniform Act Regulating Traffic on
   16-3  Highways (Article 6701d, Vernon's Texas Civil Statutes).
   16-4        (b)  A <motor vehicle> salvage vehicle dealer may not receive
   16-5  a motor vehicle <described in Subsection (a) of this section,>
   16-6  unless the dealer first obtains a certificate of authority, sales
   16-7  receipt, or transfer document under Sections 5.04 and 5.10,
   16-8  respectively, Article V, Section 1, Chapter 741, Acts of the 67th
   16-9  Legislature, Regular Session, 1981 (Article 4477-9a, Vernon's Texas
  16-10  Civil Statutes), or a Certificate of Title showing that there are
  16-11  no liens on the vehicle or that all recorded liens have been
  16-12  released.  On receipt of a vehicle, a <motor vehicle> salvage
  16-13  vehicle dealer shall immediately remove any unexpired license
  16-14  plates from the motor vehicle and place them in a secure, locked
  16-15  place.  An inventory list of such plates showing the license
  16-16  number, the make, the motor number, and the vehicle identification
  16-17  number of the motor vehicle from which such plates were removed
  16-18  shall be maintained on forms to be furnished by the Texas <State>
  16-19  Department of <Highways and Public> Transportation.  Upon demand
  16-20  the Certificate of Title or authority, the sales receipt, or
  16-21  transfer document, the license plates, and inventory lists shall be
  16-22  surrendered to the Texas <State> Department of <Highways and
  16-23  Public> Transportation for cancellation.  It is further provided
  16-24  that all Certificates of Title covering such motor vehicles shall
  16-25  be surrendered to the Texas <State> Department of <Highways and
  16-26  Public> Transportation for cancellation.  It shall thereafter be
  16-27  the duty of the Texas <State> Department of <Highways and Public>
   17-1  Transportation to furnish a signed receipt for the surrendered
   17-2  license plates and Certificates of Title.
   17-3        (c)  A <motor vehicle> salvage vehicle dealer shall keep an
   17-4  accurate and legible inventory of each used component part
   17-5  purchased by or delivered to the dealer <him>, as follows:
   17-6              (1)  date of purchase or delivery;
   17-7              (2)  name, age, address, sex, and driver's license
   17-8  number of the seller and a legible photocopy of the seller's
   17-9  driver's license;
  17-10              (3)  the license number of the motor vehicle used to
  17-11  deliver the used component part;
  17-12              (4)  a complete description of the item purchased,
  17-13  including the type of material and, if applicable, the make, model,
  17-14  color, and size of the item; and
  17-15              (5)  the vehicle identification number of the motor
  17-16  vehicle from which the used component part was removed.
  17-17        (d)  A <motor vehicle> salvage vehicle dealer is not required
  17-18  to keep records under Subsection (c) of this section of:
  17-19              (1)  interior used component parts or special accessory
  17-20  parts on a motor vehicle more than 10 years of age; or
  17-21              (2)  used component parts delivered by commercial
  17-22  freight lines or commercial carriers.
  17-23        (e)  In lieu of the requirements contained in Subsection (c)
  17-24  of this section, a <motor vehicle> salvage vehicle dealer may
  17-25  record the name of the business <dismantler> that the motor vehicle
  17-26  or motor vehicle part is purchased from and the Texas Certificate
  17-27  of Inventory number or federal taxpayer identification number.
   18-1        (f)  A <(e)  An automobile> salvage vehicle dealer shall keep
   18-2  all records required to be kept by this article for one year after
   18-3  the date of sale or disposal of the item, and he shall allow an
   18-4  inspection of the records by a peace officer at any reasonable
   18-5  time.  A peace officer may inspect the inventory on the premises of
   18-6  the <automobile> salvage vehicle dealer at any reasonable time in
   18-7  order to verify, check, or audit the records.  A <An automobile>
   18-8  salvage vehicle dealer or an employee of the dealer shall allow and
   18-9  shall not interfere with a full and complete inspection by a peace
  18-10  officer of the inventory, premises, and inventory records of the
  18-11  dealer.
  18-12        (g)(1)  Except as provided by Subdivision (3) of this
  18-13  subsection, a motor vehicle salvage dealer shall:
  18-14                    (A)  assign a unique inventory number to each
  18-15  transaction in which the dealer purchases or takes delivery of one
  18-16  or more component parts;
  18-17                    (B)  attach the unique inventory number to each
  18-18  component part the dealer obtains in the transaction; and
  18-19                    (C)  retain each component part in its original
  18-20  condition on the business premises of the salvage dealer who
  18-21  originally purchased the part for at least three calendar days,
  18-22  excluding Sundays, after the date on which the dealer obtains the
  18-23  part.
  18-24              (2)  A unique inventory number attached to a component
  18-25  part as required by Subdivision (1) of this subsection may not be
  18-26  removed while the part remains in the inventory of the motor
  18-27  vehicle salvage dealer. <(f)>  If a component part does not have a
   19-1  vehicle identification number or the vehicle identification number
   19-2  has been removed or the vehicle identification number of the
   19-3  vehicle from which the component part was removed is not available,
   19-4  a motor vehicle salvage dealer shall record the component part or
   19-5  component parts on an affidavit bill of sale.  The form of the
   19-6  affidavit bill of sale shall be prescribed and made available by
   19-7  the Texas <State> Department of <Highways and Public>
   19-8  Transportation.
   19-9              (3)  Subdivisions (1) and (2) of this subsection do not
  19-10  apply to the purchase by a motor vehicle salvage dealer of a
  19-11  nonoperable engine, transmission, or rear axle assembly from
  19-12  another motor vehicle salvage dealer or an automotive-related
  19-13  business.
  19-14        (h) <(g)>  A <motor vehicle> salvage vehicle dealer shall
  19-15  keep a record required to be kept by this section on a form
  19-16  prescribed by the Texas <State> Department of <Highways and Public>
  19-17  Transportation.  The dealer shall maintain two copies of each
  19-18  record for one year after the date of sale or disposal of the item.
  19-19  On demand of a peace officer, the dealer shall give a copy of a
  19-20  record to the officer.
  19-21        (i) <(h)>  The Texas <State> Department of <Highways and
  19-22  Public> Transportation shall:
  19-23              (1)  prescribe the form to be used as required by
  19-24  Subsection (c) <(e)> of this section; and
  19-25              (2)  make the form available to <motor vehicle> salvage
  19-26  vehicle dealers.
  19-27        (j) <(i)>  A <motor vehicle> salvage vehicle dealer or an
   20-1  employee of the dealer shall allow an inspection of the dealer's
   20-2  required inventory records and affidavit bills of sale by a peace
   20-3  officer at any reasonable time.  A peace officer may inspect the
   20-4  inventory on the premises of the dealer at any reasonable time in
   20-5  order to verify, check, or audit the records.  The dealer or the
   20-6  employee  shall allow and shall not interfere with a full and
   20-7  complete inspection by a peace officer of the inventory, premises,
   20-8  and required inventory records and affidavit bills of sale of the
   20-9  dealer.
  20-10        (k) <(j)>  A peace officer may seize, hold, and dispose of
  20-11  according to the Code of Criminal Procedure a motor vehicle or part
  20-12  thereof which has been stolen or which has been altered so as to
  20-13  remove, change, mutilate, or obliterate a permanent vehicle
  20-14  identification number, derivative number, motor number, serial
  20-15  number, or federal safety sticker.
  20-16        (l) <(k)>  Except as provided by Subsections (m) <(l)> and
  20-17  (o) <(n)> of this section, a person who fails to comply with any
  20-18  provision of this section or violates a provision of this section
  20-19  commits a Class A misdemeanor.
  20-20        (m) <(l)>  A person commits an offense if the person commits
  20-21  theft as defined by Section 31.03, Penal Code, and the person fails
  20-22  to comply with any provision of this section or violates a
  20-23  provision of this section in conjunction with the commission of the
  20-24  theft.
  20-25        (n) <(m)>  Except as provided by Subsection (o) <(n)> of this
  20-26  section, an offense under Subsection (m) <(l)> of this section is a
  20-27  Class A misdemeanor.
   21-1        (o) <(n)>  If it is shown on the trial of an offense under
   21-2  Subsection (m) <(l)> of this section that the defendant has
   21-3  previously been convicted of an offense under that subsection, the
   21-4  offense is punishable as a felony of the third degree.
   21-5        SECTION 3.  Article 6687-2a, Revised Statutes, is amended to
   21-6  read as follows:
   21-7        Art. 6687-2a.  INJUNCTION; <MOTOR VEHICLE> SALVAGE VEHICLE
   21-8  DEALERS.  (a)  If a <motor vehicle> salvage vehicle dealer or an
   21-9  employee of the dealer acting in the course of his employment is
  21-10  convicted of more than one offense under Section 1, Chapter 506,
  21-11  Acts of the 57th Legislature, Regular Session, 1961 (Article
  21-12  6687-2, Vernon's Texas Civil Statutes), a district attorney of the
  21-13  county in which the dealer's salvage business is located may bring
  21-14  an action in the county to enjoin the dealer's business operations.
  21-15  The proceedings must be brought in the name of the state.
  21-16        (b)  If judgment is in favor of the petitioner, the court
  21-17  shall grant an injunction enjoining the dealer from maintaining or
  21-18  participating in the business of a <motor vehicle> salvage vehicle
  21-19  dealer for a definite period of time or indefinitely, as determined
  21-20  by the court.  The judgment must order that the place where the
  21-21  dealer's business is located be closed for the same period of time.
  21-22        SECTION 4.  Subsections (a) and (f), Article 6687-2b, Revised
  21-23  Statutes, are amended to read as follows:
  21-24        (a)  A <motor vehicle> salvage vehicle dealer may not operate
  21-25  heavy machinery in a motor vehicle salvage yard between the hours
  21-26  of 7 p.m.  of one day and 7 a.m.  of the following day.
  21-27        (f)  In this article, "<motor vehicle> salvage vehicle
   22-1  dealer" has the meaning assigned by Article 6687-1a, Revised
   22-2  Statutes <Section 1, Chapter 506, Acts of the 57th Legislature,
   22-3  Regular Session, 1961 (Article 6687-2, Vernon's Texas Civil
   22-4  Statutes), and its subsequent amendments>.
   22-5        SECTION 5.  Subsection (b), Article 6687-2b, Revised
   22-6  Statutes, is repealed.
   22-7        SECTION 6.  A person is not required to hold a license under
   22-8  Article 6687-1a, Revised Statutes, as added by this Act, to operate
   22-9  as a salvage vehicle dealer until  March 1, 1996.
  22-10        SECTION 7.  (a)  Except as provided by Subsection (b) of this
  22-11  section, this Act takes effect September 1, 1995.
  22-12        (b)  Sections 2.01 and 4.02, Article 6687-1a, Revised
  22-13  Statutes, as added by this Act, take effect March 1, 1996.
  22-14        (c)  The Texas Transportation Commission shall adopt rules
  22-15  for the regulation of salvage vehicle dealers in this state not
  22-16  later than December 1, 1995.
  22-17        SECTION 8.  The importance of this legislation and the
  22-18  crowded condition of the calendars in both houses create an
  22-19  emergency and an imperative public necessity that the
  22-20  constitutional rule requiring bills to be read on three several
  22-21  days in each house be suspended, and this rule is hereby suspended.