H.B. No. 2599
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 with a model year equal to the then current calendar year or one of
2-10 the five preceding calendar years.
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.
7-7 (h) This article does not prohibit the sale to any person of
7-8 a vehicle that is classified as a late model salvage vehicle or a
7-9 nonrepairable vehicle solely because of water damage caused by
7-10 flood conditions.
7-11 Sec. 2.02. LICENSE APPLICATION. (a) An applicant for a
7-12 salvage vehicle dealer license must apply on a form prescribed by
7-13 the department. The application form must be signed by the
7-14 applicant and accompanied by the application fee. The application
7-15 must include:
7-16 (1) the name, business address, and business telephone
7-17 number of the applicant;
7-18 (2) the name under which the applicant will do
7-19 business;
7-20 (3) the location, by number, street, and municipality,
7-21 of each office from which the applicant will conduct business;
7-22 (4) a statement indicating whether the applicant has
7-23 previously applied for a license under this article, the result of
7-24 the previous application, and whether the applicant has ever been
7-25 the holder of a license under this article that was revoked or
7-26 suspended;
7-27 (5) a statement of the previous history, record, and
8-1 associations of the applicant to the extent sufficient to
8-2 establish, to the satisfaction of the department, the business
8-3 reputation and character of the applicant;
8-4 (6) the applicant's federal tax identification number,
8-5 if any;
8-6 (7) the applicant's state sales tax number; and
8-7 (8) other information as required by rules adopted
8-8 under this article.
8-9 (b) A license may not be issued in a fictitious name that
8-10 may be confused with or is similar to that of a governmental entity
8-11 or that is otherwise deceptive or misleading to the public.
8-12 Sec. 2.03. ADDITIONAL REQUIREMENTS FOR CORPORATE OR
8-13 PARTNERSHIP LICENSE. (a) If a salvage vehicle dealer license
8-14 applicant intends to engage in business through a corporation, the
8-15 license application must include, in addition to the information
8-16 required under Section 2.02 of this article:
8-17 (1) the state of incorporation;
8-18 (2) the name, address, date of birth, and social
8-19 security number of each of the principal officers and directors of
8-20 the corporation;
8-21 (3) a statement of the previous history, record, and
8-22 associations of each officer and director to the extent sufficient
8-23 to establish, to the satisfaction of the department, the business
8-24 reputation and character of the applicant; and
8-25 (4) a statement showing whether an employee, officer,
8-26 or director has been refused a license as a salvage vehicle dealer
8-27 or has been the holder of a license that was revoked or suspended.
9-1 (b) If the license applicant intends to engage in business
9-2 through a partnership, the license application must include, in
9-3 addition to the information required under Section 2.02 of this
9-4 article:
9-5 (1) the name, address, date of birth, and social
9-6 security number of each owner or partner;
9-7 (2) a statement of the previous history, record, and
9-8 associations of each owner and partner to the extent sufficient to
9-9 establish, to the satisfaction of the department, the business
9-10 reputation and character of the applicant; and
9-11 (3) a statement showing whether a partner, owner, or
9-12 employee has been refused a license as a salvage vehicle dealer or
9-13 has been the holder of a license that was revoked or suspended.
9-14 Sec. 2.04. CLASSIFICATION OF LICENSE ENDORSEMENTS. (a) The
9-15 department shall classify salvage vehicle dealers according to the
9-16 type of activity performed by the dealers. A salvage vehicle
9-17 dealer may not engage in activities of a particular classification
9-18 as provided by this article unless the salvage vehicle dealer holds
9-19 a license endorsement under that classification.
9-20 (b) An applicant may apply for a salvage vehicle dealer
9-21 license with an endorsement in one or more of the following
9-22 classifications:
9-23 (1) new automobile dealer;
9-24 (2) used automobile dealer;
9-25 (3) used vehicle parts dealer;
9-26 (4) salvage vehicle pool operator;
9-27 (5) salvage vehicle broker; or
10-1 (6) salvage vehicle rebuilder.
10-2 Sec. 2.05. INVESTIGATION. (a) The department may not grant
10-3 a license under this article until the department completes an
10-4 investigation of the applicant's qualifications under this article.
10-5 (b) The department shall conduct the investigation not later
10-6 than the 15th day after the date on which the application is
10-7 received by the department and shall report the results of the
10-8 investigation to the applicant.
10-9 Sec. 2.06. LICENSE ISSUANCE. The department shall issue a
10-10 license to an applicant who meets the license qualifications
10-11 adopted under this article and pays the required fees.
10-12 Sec. 2.07. LICENSE RENEWAL. (a) A license issued under
10-13 this article expires on the first anniversary of the date of
10-14 issuance and may be renewed annually on or before the expiration
10-15 date on payment of the required renewal fee.
10-16 (b) If a license holder fails to renew the license before
10-17 its expiration date, the license holder may renew the license on
10-18 payment of the renewal fee and a late fee set by the commission.
10-19 If the license is not renewed before the first anniversary of the
10-20 date on which the license expired, the license holder must apply
10-21 for a new license in the same manner as an applicant for an initial
10-22 license.
10-23 Sec. 2.08. REGISTRATION OF BUSINESS LOCATIONS. (a) A
10-24 license applicant who intends to operate as a salvage vehicle
10-25 dealer at more than one location must list in the application each
10-26 location at which business is to be conducted.
10-27 (b) Before moving a place of business or opening an
11-1 additional place of business, a salvage vehicle dealer must
11-2 register the new location with the department.
11-3 PART 3. DUTIES OF LICENSE HOLDER
11-4 Sec. 3.01. CERTIFICATE OF TITLE. (a) If a salvage vehicle
11-5 dealer acquires ownership of a late model salvage vehicle from an
11-6 owner, the dealer must receive an assigned certificate of title.
11-7 If the assigned certificate of title is not a salvage vehicle
11-8 certificate of title, a nonrepairable vehicle certificate of title,
11-9 or comparable ownership document issued by another state or
11-10 jurisdiction, the licensed salvage vehicle dealer shall, not later
11-11 than the 10th day after the date of receipt of the title, surrender
11-12 the assigned certificate of title to the department and apply for a
11-13 salvage vehicle certificate of title or a nonrepairable vehicle
11-14 certificate of title, as appropriate.
11-15 (b) If a late model salvage vehicle or nonrepairable vehicle
11-16 is to be dismantled, scrapped, or destroyed, the salvage vehicle
11-17 dealer shall surrender an assigned certificate of title, salvage
11-18 vehicle certificate of title, nonrepairable vehicle certificate of
11-19 title, or comparable ownership document issued by another state or
11-20 jurisdiction to the department in the manner prescribed by the
11-21 department not later than the 30th day after the date the vehicle
11-22 is acquired and report to the department that the vehicle was
11-23 dismantled, scrapped, or destroyed.
11-24 (c) If the holder of a salvage vehicle dealer license
11-25 acquires ownership of an older model vehicle from an owner and
11-26 receives an assigned certificate of title and the vehicle is to be
11-27 dismantled, scrapped, or destroyed, the license holder shall
12-1 surrender the assigned certificate of title to the department on a
12-2 form prescribed by the department not later than the 30th day after
12-3 the date on which the title is received and present evidence that
12-4 the vehicle was dismantled, scrapped, or destroyed. The license
12-5 holder shall keep a record of the vehicle.
12-6 Sec. 3.02. RECORDS. Each holder of a salvage vehicle dealer
12-7 license shall maintain records of each salvage vehicle and any
12-8 salvage parts purchased by the license holder and shall maintain
12-9 sales records as required by this article.
12-10 Sec. 3.03. AUTHORIZED SALE. A person may not sell,
12-11 transfer, or release a late model salvage vehicle or a
12-12 nonrepairable motor vehicle to anyone other than:
12-13 (1) a governmental entity;
12-14 (2) the vehicle's former owner;
12-15 (3) a licensed salvage vehicle dealer;
12-16 (4) an out-of-state buyer;
12-17 (5) a buyer in a casual sale at auction; or
12-18 (6) a person described by Subsection (g), Article
12-19 6687-2b, Revised Statutes.
12-20 Sec. 3.04. AGENTS. The holder of a salvage vehicle dealer
12-21 license may authorize not more than five persons to operate as
12-22 salvage vehicle agents under the dealer's license. An agent may
12-23 acquire, sell, or otherwise deal in late model salvage vehicles,
12-24 nonrepairable vehicles, or salvage parts as directed by the dealer.
12-25 An agent authorized to operate under this section is entitled to a
12-26 salvage vehicle agent license on application to the department and
12-27 payment of the required fee.
13-1 PART 4. DISCIPLINARY ACTIONS AND PENALTIES
13-2 Sec. 4.01. DENIAL, SUSPENSION, OR REVOCATION OF LICENSE.
13-3 (a) The department may deny, suspend, revoke, or reinstate a
13-4 license issued under this article.
13-5 (b) The commission shall adopt rules establishing the
13-6 grounds for the denial, suspension, revocation, or reinstatement of
13-7 a license and establishing procedures for disciplinary actions.
13-8 (c) Proceedings relating to the denial, suspension, or
13-9 revocation of a license issued under this article are subject to
13-10 Chapter 2001, Government Code.
13-11 (d) A person whose license is revoked may not apply for a
13-12 new license before the first anniversary of the date of the
13-13 revocation.
13-14 Sec. 4.02. CRIMINAL PENALTY. (a) A person commits an
13-15 offense if the person acts as a salvage vehicle dealer without a
13-16 salvage vehicle dealer license issued under this article.
13-17 (b) A person commits an offense if the person acts as a
13-18 salvage vehicle agent without a salvage vehicle agent license
13-19 issued under this article.
13-20 (c) A person commits an offense if the person violates a
13-21 provision of this article, other than Subsection (a) or (b) of this
13-22 section, or a rule adopted by the commission under this article.
13-23 (d) An offense under this section is a Class A misdemeanor.
13-24 PART 5. EFFECT ON LOCAL REGULATION
13-25 Sec. 5.01. CUMULATIVE EFFECT; EFFECT ON MUNICIPAL LICENSES.
13-26 (a) This article is cumulative of municipal ordinances relating to
13-27 the regulation of persons who deal in salvage vehicles.
14-1 (b) This article does not prohibit, and may not be construed
14-2 as prohibiting, the enforcement of a requirement of a municipal
14-3 license or permit that is related to an activity regulated under
14-4 this article.
14-5 SECTION 2. Section 1, Chapter 506, Acts of the 57th
14-6 Legislature, Regular Session, 1961 (Article 6687-2, Vernon's Texas
14-7 Civil Statutes), is amended to read as follows:
14-8 Sec. 1. SALVAGE VEHICLE DEALERS. (a) In this section:
14-9 (1) "Salvage vehicle <Motor vehicle salvage> dealer"
14-10 has the meaning assigned by Article 6687-1a, Revised Statutes
14-11 <means an individual, corporation, association, partnership,
14-12 organization, or other entity engaged in the business of obtaining
14-13 abandoned, wrecked, or junked motor vehicles or motor vehicle parts
14-14 for scrap disposal, resale, repairing, rebuilding, demolition, or
14-15 other form of salvage>.
14-16 (2) "Component part" means the front end assembly or
14-17 tail section of a motor vehicle, the cab of a truck (light or
14-18 heavy), the bed of a one ton or lighter truck, an interior
14-19 component part of a motor vehicle, a special accessory part, or a
14-20 vehicle part that contains or should contain a federal safety
14-21 sticker, motor number, serial number, manufacturer's permanent
14-22 vehicle identification number, or a derivative of a vehicle
14-23 identification number.
14-24 (3) "Front-end assembly" means the hood, right or left
14-25 front fender, grill, bumper, radiator, or radiator support, if two
14-26 or more such parts are assembled together as one unit.
14-27 (4) "Tail section" means the roof, floor pan, right or
15-1 left rear quarter panel, deck lid, or rear bumper, if two or more
15-2 of such parts are assembled together as one unit.
15-3 (5) "Federal safety sticker" means a sticker, label,
15-4 or tag required by 49 U.S.C. Section 30115 <15 U.S.C. Section 1403>
15-5 or rules adopted under that section.
15-6 (6) "Interior component part" means the front or rear
15-7 seat or radio of a motor vehicle.
15-8 (7) "Special accessory part" means the tire, wheel,
15-9 tailgate, or removable glass top of a motor vehicle.
15-10 (8) "Motor vehicle" has the meaning given by
15-11 Subsection (b), Section 2, Uniform Act Regulating Traffic on
15-12 Highways (Article 6701d, Vernon's Texas Civil Statutes).
15-13 (b) A <motor vehicle> salvage vehicle dealer with an
15-14 endorsement as a used vehicle parts dealer may not receive a motor
15-15 vehicle <described in Subsection (a) of this section,> unless the
15-16 dealer first obtains a certificate of authority, sales receipt, or
15-17 transfer document under Sections 5.04 and 5.10, respectively,
15-18 Article V, Section 1, Chapter 741, Acts of the 67th Legislature,
15-19 Regular Session, 1981 (Article 4477-9a, Vernon's Texas Civil
15-20 Statutes), or a Certificate of Title showing that there are no
15-21 liens on the vehicle or that all recorded liens have been released.
15-22 On receipt of a vehicle, a <motor vehicle> salvage vehicle dealer
15-23 shall immediately remove any unexpired license plates from the
15-24 motor vehicle and place them in a secure, locked place. An
15-25 inventory list of such plates showing the license number, the make,
15-26 the motor number, and the vehicle identification number of the
15-27 motor vehicle from which such plates were removed shall be
16-1 maintained on forms to be furnished by the Texas <State> Department
16-2 of <Highways and Public> Transportation. Upon demand and if
16-3 required, the Certificate of Title or authority, the sales receipt,
16-4 or transfer document, the license plates, and inventory lists shall
16-5 be surrendered to the Texas <State> Department of <Highways and
16-6 Public> Transportation for cancellation. It is further provided
16-7 that all Certificates of Title covering such motor vehicles shall,
16-8 if required, be surrendered to the Texas <State> Department of
16-9 <Highways and Public> Transportation for cancellation. It shall
16-10 thereafter be the duty of the Texas <State> Department of <Highways
16-11 and Public> Transportation to furnish a signed receipt for the
16-12 surrendered license plates and Certificates of Title.
16-13 (c) A <motor vehicle> salvage vehicle dealer shall keep an
16-14 accurate and legible inventory of each used component part
16-15 purchased by or delivered to the dealer <him>, as follows:
16-16 (1) date of purchase or delivery;
16-17 (2) name, age, address, sex, and driver's license
16-18 number of the seller and a legible photocopy of the seller's
16-19 driver's license;
16-20 (3) the license number of the motor vehicle used to
16-21 deliver the used component part;
16-22 (4) a complete description of the item purchased,
16-23 including the type of material and, if applicable, the make, model,
16-24 color, and size of the item; and
16-25 (5) the vehicle identification number of the motor
16-26 vehicle from which the used component part was removed.
16-27 (d) A <motor vehicle> salvage vehicle dealer is not required
17-1 to keep records under Subsection (c) of this section of:
17-2 (1) interior used component parts or special accessory
17-3 parts on a motor vehicle more than 10 years of age; or
17-4 (2) used component parts delivered by commercial
17-5 freight lines or commercial carriers.
17-6 (e) In lieu of the requirements contained in Subsection (c)
17-7 of this section, a <motor vehicle> salvage vehicle dealer may
17-8 record the name of the business <dismantler> that the motor vehicle
17-9 or motor vehicle part is purchased from and the Texas Certificate
17-10 of Inventory number or federal taxpayer identification number.
17-11 (f) A <(e) An automobile> salvage vehicle dealer shall keep
17-12 all records required to be kept by this article for one year after
17-13 the date of sale or disposal of the item, and he shall allow an
17-14 inspection of the records by a peace officer at any reasonable
17-15 time. A peace officer may inspect the inventory on the premises of
17-16 the <automobile> salvage vehicle dealer at any reasonable time in
17-17 order to verify, check, or audit the records. A <An automobile>
17-18 salvage vehicle dealer or an employee of the dealer shall allow and
17-19 shall not interfere with a full and complete inspection by a peace
17-20 officer of the inventory, premises, and inventory records of the
17-21 dealer.
17-22 (g)(1) Except as provided by Subdivision (3) of this
17-23 subsection, a salvage vehicle dealer shall:
17-24 (A) assign a unique inventory number to each
17-25 transaction in which the dealer purchases or takes delivery of one
17-26 or more component parts;
17-27 (B) attach the unique inventory number to each
18-1 component part the dealer obtains in the transaction; and
18-2 (C) retain each component part in its original
18-3 condition on the business premises of the salvage vehicle dealer
18-4 who originally purchased the part for at least three calendar days,
18-5 excluding Sundays, after the date on which the dealer obtains the
18-6 part.
18-7 (2) A unique inventory number attached to a component
18-8 part as required by Subdivision (1) of this subsection may not be
18-9 removed while the part remains in the inventory of the salvage
18-10 vehicle dealer. <(f)> If a component part does not have a vehicle
18-11 identification number or the vehicle identification number has been
18-12 removed or the vehicle identification number of the vehicle from
18-13 which the component part was removed is not available, a motor
18-14 vehicle salvage dealer shall record the component part or component
18-15 parts on an affidavit bill of sale. The form of the affidavit bill
18-16 of sale shall be prescribed and made available by the Texas <State>
18-17 Department of <Highways and Public> Transportation.
18-18 (3) Subdivisions (1) and (2) of this subsection do not
18-19 apply to the purchase by a salvage vehicle dealer of a nonoperable
18-20 engine, transmission, or rear axle assembly from another motor
18-21 vehicle salvage dealer or an automotive-related business.
18-22 (h) <(g)> A <motor vehicle> salvage vehicle dealer shall
18-23 keep a record required to be kept by this section on a form
18-24 prescribed by the Texas <State> Department of <Highways and Public>
18-25 Transportation. The dealer shall maintain two copies of each
18-26 record for one year after the date of sale or disposal of the item.
18-27 On demand of a peace officer, the dealer shall give a copy of a
19-1 record to the officer.
19-2 (i) <(h)> The Texas <State> Department of <Highways and
19-3 Public> Transportation shall:
19-4 (1) prescribe the form to be used as required by
19-5 Subsection (c) <(e)> of this section; and
19-6 (2) make the form available to <motor vehicle> salvage
19-7 vehicle dealers.
19-8 (j) <(i)> A <motor vehicle> salvage vehicle dealer or an
19-9 employee of the dealer shall allow an inspection of the dealer's
19-10 required inventory records and affidavit bills of sale by a peace
19-11 officer at any reasonable time. A peace officer may inspect the
19-12 inventory on the premises of the dealer at any reasonable time in
19-13 order to verify, check, or audit the records. The dealer or the
19-14 employee shall allow and shall not interfere with a full and
19-15 complete inspection by a peace officer of the inventory, premises,
19-16 and required inventory records and affidavit bills of sale of the
19-17 dealer.
19-18 (k) <(j)> A peace officer may seize, hold, and dispose of
19-19 according to the Code of Criminal Procedure a motor vehicle or part
19-20 thereof which has been stolen or which has been altered so as to
19-21 remove, change, mutilate, or obliterate a permanent vehicle
19-22 identification number, derivative number, motor number, serial
19-23 number, or federal safety sticker.
19-24 (l) <(k)> Except as provided by Subsections (m) <(l)> and
19-25 (o) <(n)> of this section, a person who fails to comply with any
19-26 provision of this section or violates a provision of this section
19-27 commits a Class A misdemeanor.
20-1 (m) <(l)> A person commits an offense if the person commits
20-2 theft as defined by Section 31.03, Penal Code, and the person fails
20-3 to comply with any provision of this section or violates a
20-4 provision of this section in conjunction with the commission of the
20-5 theft.
20-6 (n) <(m)> Except as provided by Subsection (o) <(n)> of this
20-7 section, an offense under Subsection (m) <(l)> of this section is a
20-8 Class A misdemeanor.
20-9 (o) <(n)> If it is shown on the trial of an offense under
20-10 Subsection (m) <(l)> of this section that the defendant has
20-11 previously been convicted of an offense under that subsection, the
20-12 offense is punishable as a felony of the third degree.
20-13 SECTION 3. Article 6687-2a, Revised Statutes, is amended to
20-14 read as follows:
20-15 Art. 6687-2a. INJUNCTION; <MOTOR VEHICLE> SALVAGE VEHICLE
20-16 DEALERS. (a) If a <motor vehicle> salvage vehicle dealer or an
20-17 employee of the dealer acting in the course of his employment is
20-18 convicted of more than one offense under Section 1, Chapter 506,
20-19 Acts of the 57th Legislature, Regular Session, 1961 (Article
20-20 6687-2, Vernon's Texas Civil Statutes), a district attorney of the
20-21 county in which the dealer's salvage business is located may bring
20-22 an action in the county to enjoin the dealer's business operations.
20-23 The proceedings must be brought in the name of the state.
20-24 (b) If judgment is in favor of the petitioner, the court
20-25 shall grant an injunction enjoining the dealer from maintaining or
20-26 participating in the business of a <motor vehicle> salvage vehicle
20-27 dealer for a definite period of time or indefinitely, as determined
21-1 by the court. The judgment must order that the place where the
21-2 dealer's business is located be closed for the same period of time.
21-3 SECTION 4. Subsections (a) and (f), Article 6687-2b, Revised
21-4 Statutes, are amended to read as follows:
21-5 (a) A <motor vehicle> salvage vehicle dealer may not operate
21-6 heavy machinery in a motor vehicle salvage yard between the hours
21-7 of 7 p.m. of one day and 7 a.m. of the following day.
21-8 (f) In this article, "<motor vehicle> salvage vehicle
21-9 dealer" has the meaning assigned by Article 6687-1a, Revised
21-10 Statutes <Section 1, Chapter 506, Acts of the 57th Legislature,
21-11 Regular Session, 1961 (Article 6687-2, Vernon's Texas Civil
21-12 Statutes), and its subsequent amendments>.
21-13 SECTION 5. Subsection (b), Article 6687-2b, Revised
21-14 Statutes, is repealed.
21-15 SECTION 6. A person is not required to hold a license under
21-16 Article 6687-1a, Revised Statutes, as added by this Act, to operate
21-17 as a salvage vehicle dealer until March 1, 1996.
21-18 SECTION 7. (a) Except as provided by Subsection (b) of this
21-19 section, this Act takes effect September 1, 1995.
21-20 (b) Sections 2.01 and 4.02, Article 6687-1a, Revised
21-21 Statutes, as added by this Act, take effect March 1, 1996.
21-22 (c) The Texas Transportation Commission shall adopt rules
21-23 for the regulation of salvage vehicle dealers in this state not
21-24 later than December 1, 1995.
21-25 SECTION 8. The importance of this legislation and the
21-26 crowded condition of the calendars in both houses create an
21-27 emergency and an imperative public necessity that the
22-1 constitutional rule requiring bills to be read on three several
22-2 days in each house be suspended, and this rule is hereby suspended.