1-1 By: Kubiak, Bosse (Senate Sponsor - Cain) H.B. No. 2599
1-2 (In the Senate - Received from the House May 4, 1995;
1-3 May 4, 1995, read first time and referred to Committee on State
1-4 Affairs; May 15, 1995, reported adversely, with favorable Committee
1-5 Substitute by the following vote: Yeas 11, Nays 0; May 15, 1995,
1-6 sent to printer.)
1-7 COMMITTEE SUBSTITUTE FOR H.B. No. 2599 By: Cain
1-8 A BILL TO BE ENTITLED
1-9 AN ACT
1-10 relating to the licensing and regulation of certain persons dealing
1-11 in salvage vehicles and parts; providing criminal penalties.
1-12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13 SECTION 1. Chapter 1, Title 116, Revised Statutes, is
1-14 amended by adding Article 6687-1a to read as follows:
1-15 Art. 6687-1a. SALVAGE VEHICLE DEALERS
1-16 PART 1. GENERAL PROVISIONS
1-17 Sec. 1.01. DEFINITIONS. In this article:
1-18 (1) "Actual cash value" means the market value of a
1-19 motor vehicle as determined:
1-20 (A) from publications that are commonly used in
1-21 the automotive and insurance industries to establish the value of
1-22 motor vehicles; or
1-23 (B) if the entity determining the value is an
1-24 insurance company, by any other procedure recognized by the
1-25 insurance industry, including market surveys, that is applied by
1-26 the company in a uniform manner.
1-27 (2) "Automobile recycler" means a person who engages
1-28 in the business of dealing in salvage vehicles for the purpose of
1-29 dismantling the vehicles to sell used parts and the resulting scrap
1-30 metal or a person otherwise engaged in the business of acquiring,
1-31 selling, or dealing in salvage parts. The term includes a dealer
1-32 in used motor vehicle parts.
1-33 (3) "Casual sale" means the sale at auction of not
1-34 more than one nonrepairable motor vehicle or late model salvage
1-35 motor vehicle to the same person during a calendar year.
1-36 (4) "Commission" means the Texas Transportation
1-37 Commission.
1-38 (5) "Department" means the Texas Department of
1-39 Transportation.
1-40 (6) "Late model motor vehicle" means a motor vehicle
1-41 with a model year equal to the then current calendar year or one of
1-42 the five preceding calendar years.
1-43 (7) "Major component part" means one of the following
1-44 parts of a vehicle:
1-45 (A) the engine;
1-46 (B) the transmission;
1-47 (C) the frame;
1-48 (D) the right or left front fender;
1-49 (E) the hood;
1-50 (F) a door allowing entrance to or egress from
1-51 the passenger compartment of the vehicle;
1-52 (G) the front or rear bumper;
1-53 (H) the right or left quarter panel;
1-54 (I) the deck lid, tailgate, or hatchback;
1-55 (J) the cargo box of a pickup truck;
1-56 (K) the cab of a truck; or
1-57 (L) the body of a passenger vehicle.
1-58 (8) "Motor vehicle" has the meaning assigned by the
1-59 Uniform Act Regulating Traffic on Highways (Article 6701d, Vernon's
1-60 Texas Civil Statutes).
1-61 (9) "Nonrepairable vehicle" means:
1-62 (A) a late model vehicle that is damaged or
1-63 missing a major component part to the extent that the total
1-64 estimated cost of repairs to rebuild or reconstruct the vehicle,
1-65 including parts and labor other than the cost of materials and
1-66 labor for repainting the vehicle but excluding sales taxes on the
1-67 total cost of the repairs, and excluding the cost of repairs to
1-68 repair hail damage, is equal to or greater than an amount equal to
2-1 95 percent of the actual cash value of the vehicle in its
2-2 predamaged condition; or
2-3 (B) a vehicle that comes into this state with a
2-4 nonrepairable vehicle certificate of title or other comparable
2-5 certificate of title.
2-6 (10) "Nonrepairable vehicle certificate of title"
2-7 means any document issued by the department that evidences
2-8 ownership of a nonrepairable vehicle.
2-9 (11) "Out-of-state buyer" means a person licensed by
2-10 another state or jurisdiction in an automotive business if the
2-11 department has listed the holders of such license as permitted
2-12 purchasers of salvage motor vehicles or nonrepairable motor
2-13 vehicles based on substantially similar licensing requirements and
2-14 on whether salvage vehicle dealers licensed in Texas are permitted
2-15 to purchase salvage motor vehicles or nonrepairable motor vehicles
2-16 in the other state or jurisdiction.
2-17 (12) "Person" means an individual, partnership,
2-18 corporation, trust, association, or other private legal entity.
2-19 (13) "Salvage part" means a major component part of a
2-20 late model salvage vehicle that is serviceable to the extent that
2-21 it can be reused.
2-22 (14) "Salvage vehicle" or "late model salvage vehicle"
2-23 means:
2-24 (A) a late model motor vehicle with a major
2-25 component part that is damaged or missing to the extent that the
2-26 total estimated cost of repairs to rebuild or reconstruct the
2-27 vehicle, including parts and labor, but excluding the cost of
2-28 repairs to repair hail damage, is equal to or greater than an
2-29 amount equal to 75 percent of the actual cash value of the vehicle
2-30 in its predamaged condition; or
2-31 (B) a damaged vehicle that comes into this state
2-32 under a salvage vehicle certificate of title or other comparable
2-33 certificate of title.
2-34 (15) "Salvage vehicle agent" means a person employed
2-35 by a licensed salvage vehicle dealer to acquire, sell, or otherwise
2-36 deal in late model salvage vehicles or salvage parts in this state.
2-37 (16) "Salvage vehicle certificate of title" means any
2-38 document issued by the department that evidences ownership of a
2-39 salvage vehicle.
2-40 (17) "Salvage vehicle dealer" means a person who is
2-41 engaged in this state in the business of acquiring, selling, or
2-42 otherwise dealing in salvage vehicles or vehicle parts of a type
2-43 required to be covered by a salvage vehicle certificate of title or
2-44 nonrepairable vehicle certificate of title under a license issued
2-45 by the department that allows the holder of the license to acquire,
2-46 sell, dismantle, repair, or otherwise deal in salvage vehicles.
2-47 (18) "Salvage pool operator" means a person who
2-48 engages in the business of selling nonrepairable vehicles or
2-49 salvage vehicles at auction, including wholesale auction, or
2-50 otherwise.
2-51 (19) "Salvage vehicle record" means the record of
2-52 sales and purchases for each salvage vehicle handled by a salvage
2-53 vehicle dealer.
2-54 Sec. 1.02. POWERS AND DUTIES OF COMMISSION. (a) The Texas
2-55 Transportation Commission shall adopt rules as necessary to
2-56 administer this article and may take other action as necessary to
2-57 enforce this article.
2-58 (b) The commission shall set application fees, license fees,
2-59 renewal fees, and other fees as required to implement this article.
2-60 The commission shall set the fees in amounts reasonable and
2-61 necessary to implement this article.
2-62 Sec. 1.03. DETERMINATION OF ESTIMATED COST OF REPAIR. (a)
2-63 The estimated cost of repair parts shall be determined by using a
2-64 manual of repair costs or other instrument that is generally
2-65 recognized and commonly used in the motor vehicle insurance
2-66 industry to determine those costs or an estimate of the actual cost
2-67 of the repair parts.
2-68 (b) The estimated labor costs shall be computed by using the
2-69 hourly rate and time allocations that are reasonable and commonly
2-70 assessed in the repair industry in the community in which the
3-1 repairs are performed.
3-2 PART 2. LICENSE REQUIREMENTS
3-3 Sec. 2.01. LICENSE REQUIRED; EXEMPTIONS. (a) A person may
3-4 not act as an automobile recycler or salvage vehicle dealer,
3-5 including storing or displaying vehicles as an agent or escrow
3-6 agent of an insurance company, unless the person holds a salvage
3-7 vehicle dealer license issued under this article.
3-8 (b) A person may not act as a salvage vehicle agent unless
3-9 the person holds a salvage vehicle agent license issued under this
3-10 article.
3-11 (c) This article does not apply to an insurance company
3-12 authorized to engage in the business of insurance in this state.
3-13 (d) This article does not apply to, and does not preclude or
3-14 prohibit any sales to, purchases by, or other transactions by or
3-15 with, a person described by Subsection (g), Article 6687-2b,
3-16 Revised Statutes, except as provided by Subsection (e) or (f) of
3-17 this section.
3-18 (e) A person described by Subsection (g), Article 6687-2b,
3-19 Revised Statutes, shall submit to the department the certificate of
3-20 title or equivalent document that the person receives in
3-21 conjunction with the purchase of a motor vehicle not later than the
3-22 60th day after the date of receipt of the certificate of title or
3-23 equivalent document.
3-24 (f) This article applies to a transaction with a person
3-25 described by Subsection (g), Article 6687-2b, Revised Statutes, in
3-26 which a motor vehicle is sold or delivered to the person for the
3-27 purpose of reuse or resale as a motor vehicle or as motor vehicle
3-28 parts if the motor vehicle is so used.
3-29 (g) Except as otherwise provided by this subsection, this
3-30 article does not apply to a person who purchases a nonrepairable
3-31 vehicle or salvage vehicle from a salvage pool operator in a casual
3-32 sale. The commission shall adopt rules as necessary to regulate
3-33 casual sales and to enforce this subsection. A salvage vehicle
3-34 pool operator that sells a vehicle in a casual sale shall comply
3-35 with each rule adopted by the commission regarding that sale.
3-36 (h) This article does not prohibit the sale to any person of
3-37 a vehicle that is classified as a late model salvage vehicle or a
3-38 nonrepairable vehicle solely because of water damage caused by
3-39 flood conditions.
3-40 Sec. 2.02. LICENSE APPLICATION. (a) An applicant for a
3-41 salvage vehicle dealer license must apply on a form prescribed by
3-42 the department. The application form must be signed by the
3-43 applicant and accompanied by the application fee. The application
3-44 must include:
3-45 (1) the name, business address, and business telephone
3-46 number of the applicant;
3-47 (2) the name under which the applicant will do
3-48 business;
3-49 (3) the location, by number, street, and municipality,
3-50 of each office from which the applicant will conduct business;
3-51 (4) a statement indicating whether the applicant has
3-52 previously applied for a license under this article, the result of
3-53 the previous application, and whether the applicant has ever been
3-54 the holder of a license under this article that was revoked or
3-55 suspended;
3-56 (5) a statement of the previous history, record, and
3-57 associations of the applicant to the extent sufficient to
3-58 establish, to the satisfaction of the department, the business
3-59 reputation and character of the applicant;
3-60 (6) the applicant's federal tax identification number,
3-61 if any;
3-62 (7) the applicant's state sales tax number; and
3-63 (8) other information as required by rules adopted
3-64 under this article.
3-65 (b) A license may not be issued in a fictitious name that
3-66 may be confused with or is similar to that of a governmental entity
3-67 or that is otherwise deceptive or misleading to the public.
3-68 Sec. 2.03. ADDITIONAL REQUIREMENTS FOR CORPORATE OR
3-69 PARTNERSHIP LICENSE. (a) If a salvage vehicle dealer license
3-70 applicant intends to engage in business through a corporation, the
4-1 license application must include, in addition to the information
4-2 required under Section 2.02 of this article:
4-3 (1) the state of incorporation;
4-4 (2) the name, address, date of birth, and social
4-5 security number of each of the principal officers and directors of
4-6 the corporation;
4-7 (3) a statement of the previous history, record, and
4-8 associations of each officer and director to the extent sufficient
4-9 to establish, to the satisfaction of the department, the business
4-10 reputation and character of the applicant; and
4-11 (4) a statement showing whether an employee, officer,
4-12 or director has been refused a license as a salvage vehicle dealer
4-13 or has been the holder of a license that was revoked or suspended.
4-14 (b) If the license applicant intends to engage in business
4-15 through a partnership, the license application must include, in
4-16 addition to the information required under Section 2.02 of this
4-17 article:
4-18 (1) the name, address, date of birth, and social
4-19 security number of each owner or partner;
4-20 (2) a statement of the previous history, record, and
4-21 associations of each owner and partner to the extent sufficient to
4-22 establish, to the satisfaction of the department, the business
4-23 reputation and character of the applicant; and
4-24 (3) a statement showing whether a partner, owner, or
4-25 employee has been refused a license as a salvage vehicle dealer or
4-26 has been the holder of a license that was revoked or suspended.
4-27 Sec. 2.04. CLASSIFICATION OF LICENSE ENDORSEMENTS. (a) The
4-28 department shall classify salvage vehicle dealers according to the
4-29 type of activity performed by the dealers. A salvage vehicle
4-30 dealer may not engage in activities of a particular classification
4-31 as provided by this article unless the salvage vehicle dealer holds
4-32 a license endorsement under that classification.
4-33 (b) An applicant may apply for a salvage vehicle dealer
4-34 license with an endorsement in one or more of the following
4-35 classifications:
4-36 (1) new automobile dealer;
4-37 (2) used automobile dealer;
4-38 (3) used vehicle parts dealer;
4-39 (4) salvage vehicle pool operator;
4-40 (5) salvage vehicle broker; or
4-41 (6) salvage vehicle rebuilder.
4-42 Sec. 2.05. INVESTIGATION. (a) The department may not grant
4-43 a license under this article until the department completes an
4-44 investigation of the applicant's qualifications under this article.
4-45 (b) The department shall conduct the investigation not later
4-46 than the 15th day after the date on which the application is
4-47 received by the department and shall report the results of the
4-48 investigation to the applicant.
4-49 Sec. 2.06. LICENSE ISSUANCE. The department shall issue a
4-50 license to an applicant who meets the license qualifications
4-51 adopted under this article and pays the required fees.
4-52 Sec. 2.07. LICENSE RENEWAL. (a) A license issued under
4-53 this article expires on the first anniversary of the date of
4-54 issuance and may be renewed annually on or before the expiration
4-55 date on payment of the required renewal fee.
4-56 (b) If a license holder fails to renew the license before
4-57 its expiration date, the license holder may renew the license on
4-58 payment of the renewal fee and a late fee set by the commission.
4-59 If the license is not renewed before the first anniversary of the
4-60 date on which the license expired, the license holder must apply
4-61 for a new license in the same manner as an applicant for an initial
4-62 license.
4-63 Sec. 2.08. REGISTRATION OF BUSINESS LOCATIONS. (a) A
4-64 license applicant who intends to operate as a salvage vehicle
4-65 dealer at more than one location must list in the application each
4-66 location at which business is to be conducted.
4-67 (b) Before moving a place of business or opening an
4-68 additional place of business, a salvage vehicle dealer must
4-69 register the new location with the department.
4-70 PART 3. DUTIES OF LICENSE HOLDER
5-1 Sec. 3.01. CERTIFICATE OF TITLE. (a) If a salvage vehicle
5-2 dealer acquires ownership of a late model salvage vehicle from an
5-3 owner, the dealer must receive an assigned certificate of title.
5-4 If the assigned certificate of title is not a salvage vehicle
5-5 certificate of title, a nonrepairable vehicle certificate of title,
5-6 or comparable ownership document issued by another state or
5-7 jurisdiction, the licensed salvage vehicle dealer shall, not later
5-8 than the 10th day after the date of receipt of the title, surrender
5-9 the assigned certificate of title to the department and apply for a
5-10 salvage vehicle certificate of title or a nonrepairable vehicle
5-11 certificate of title, as appropriate.
5-12 (b) If a late model salvage vehicle or nonrepairable vehicle
5-13 is to be dismantled, scrapped, or destroyed, the salvage vehicle
5-14 dealer shall surrender an assigned certificate of title, salvage
5-15 vehicle certificate of title, nonrepairable vehicle certificate of
5-16 title, or comparable ownership document issued by another state or
5-17 jurisdiction to the department in the manner prescribed by the
5-18 department not later than the 30th day after the date the vehicle
5-19 is acquired and report to the department that the vehicle was
5-20 dismantled, scrapped, or destroyed.
5-21 (c) If the holder of a salvage vehicle dealer license
5-22 acquires ownership of an older model vehicle from an owner and
5-23 receives an assigned certificate of title and the vehicle is to be
5-24 dismantled, scrapped, or destroyed, the license holder shall
5-25 surrender the assigned certificate of title to the department on a
5-26 form prescribed by the department not later than the 30th day after
5-27 the date on which the title is received and present evidence that
5-28 the vehicle was dismantled, scrapped, or destroyed. The license
5-29 holder shall keep a record of the vehicle.
5-30 Sec. 3.02. RECORDS. Each holder of a salvage vehicle dealer
5-31 license shall maintain records of each salvage vehicle and any
5-32 salvage parts purchased by the license holder and shall maintain
5-33 sales records as required by this article.
5-34 Sec. 3.03. AUTHORIZED SALE. A person may not sell,
5-35 transfer, or release a late model salvage vehicle or a
5-36 nonrepairable motor vehicle to anyone other than:
5-37 (1) a governmental entity;
5-38 (2) the vehicle's former owner;
5-39 (3) a licensed salvage vehicle dealer;
5-40 (4) an out-of-state buyer;
5-41 (5) a buyer in a casual sale at auction; or
5-42 (6) a person described by Subsection (g), Article
5-43 6687-2b, Revised Statutes.
5-44 Sec. 3.04. AGENTS. The holder of a salvage vehicle dealer
5-45 license may authorize not more than five persons to operate as
5-46 salvage vehicle agents under the dealer's license. An agent may
5-47 acquire, sell, or otherwise deal in late model salvage vehicles,
5-48 nonrepairable vehicles, or salvage parts as directed by the dealer.
5-49 An agent authorized to operate under this section is entitled to a
5-50 salvage vehicle agent license on application to the department and
5-51 payment of the required fee.
5-52 PART 4. DISCIPLINARY ACTIONS AND PENALTIES
5-53 Sec. 4.01. DENIAL, SUSPENSION, OR REVOCATION OF LICENSE.
5-54 (a) The department may deny, suspend, revoke, or reinstate a
5-55 license issued under this article.
5-56 (b) The commission shall adopt rules establishing the
5-57 grounds for the denial, suspension, revocation, or reinstatement of
5-58 a license and establishing procedures for disciplinary actions.
5-59 (c) Proceedings relating to the denial, suspension, or
5-60 revocation of a license issued under this article are subject to
5-61 Chapter 2001, Government Code.
5-62 (d) A person whose license is revoked may not apply for a
5-63 new license before the first anniversary of the date of the
5-64 revocation.
5-65 Sec. 4.02. CRIMINAL PENALTY. (a) A person commits an
5-66 offense if the person acts as a salvage vehicle dealer without a
5-67 salvage vehicle dealer license issued under this article.
5-68 (b) A person commits an offense if the person acts as a
5-69 salvage vehicle agent without a salvage vehicle agent license
5-70 issued under this article.
6-1 (c) A person commits an offense if the person violates a
6-2 provision of this article, other than Subsection (a) or (b) of this
6-3 section, or a rule adopted by the commission under this article.
6-4 (d) An offense under this section is a Class A misdemeanor.
6-5 PART 5. EFFECT ON LOCAL REGULATION
6-6 Sec. 5.01. CUMULATIVE EFFECT; EFFECT ON MUNICIPAL LICENSES.
6-7 (a) This article is cumulative of municipal ordinances relating to
6-8 the regulation of persons who deal in salvage vehicles.
6-9 (b) This article does not prohibit, and may not be construed
6-10 as prohibiting, the enforcement of a requirement of a municipal
6-11 license or permit that is related to an activity regulated under
6-12 this article.
6-13 SECTION 2. Section 1, Chapter 506, Acts of the 57th
6-14 Legislature, Regular Session, 1961 (Article 6687-2, Vernon's Texas
6-15 Civil Statutes), is amended to read as follows:
6-16 Sec. 1. SALVAGE VEHICLE DEALERS. (a) In this section:
6-17 (1) "Salvage vehicle <Motor vehicle salvage> dealer"
6-18 has the meaning assigned by Article 6687-1a, Revised Statutes
6-19 <means an individual, corporation, association, partnership,
6-20 organization, or other entity engaged in the business of obtaining
6-21 abandoned, wrecked, or junked motor vehicles or motor vehicle parts
6-22 for scrap disposal, resale, repairing, rebuilding, demolition, or
6-23 other form of salvage>.
6-24 (2) "Component part" means the front end assembly or
6-25 tail section of a motor vehicle, the cab of a truck (light or
6-26 heavy), the bed of a one ton or lighter truck, an interior
6-27 component part of a motor vehicle, a special accessory part, or a
6-28 vehicle part that contains or should contain a federal safety
6-29 sticker, motor number, serial number, manufacturer's permanent
6-30 vehicle identification number, or a derivative of a vehicle
6-31 identification number.
6-32 (3) "Front-end assembly" means the hood, right or left
6-33 front fender, grill, bumper, radiator, or radiator support, if two
6-34 or more such parts are assembled together as one unit.
6-35 (4) "Tail section" means the roof, floor pan, right or
6-36 left rear quarter panel, deck lid, or rear bumper, if two or more
6-37 of such parts are assembled together as one unit.
6-38 (5) "Federal safety sticker" means a sticker, label,
6-39 or tag required by 49 U.S.C. Section 30115 <15 U.S.C. Section 1403>
6-40 or rules adopted under that section.
6-41 (6) "Interior component part" means the front or rear
6-42 seat or radio of a motor vehicle.
6-43 (7) "Special accessory part" means the tire, wheel,
6-44 tailgate, or removable glass top of a motor vehicle.
6-45 (8) "Motor vehicle" has the meaning given by
6-46 Subsection (b), Section 2, Uniform Act Regulating Traffic on
6-47 Highways (Article 6701d, Vernon's Texas Civil Statutes).
6-48 (b) A <motor vehicle> salvage vehicle dealer with an
6-49 endorsement as a used vehicle parts dealer may not receive a motor
6-50 vehicle <described in Subsection (a) of this section,> unless the
6-51 dealer first obtains a certificate of authority, sales receipt, or
6-52 transfer document under Sections 5.04 and 5.10, respectively,
6-53 Article V, Section 1, Chapter 741, Acts of the 67th Legislature,
6-54 Regular Session, 1981 (Article 4477-9a, Vernon's Texas Civil
6-55 Statutes), or a Certificate of Title showing that there are no
6-56 liens on the vehicle or that all recorded liens have been released.
6-57 On receipt of a vehicle, a <motor vehicle> salvage vehicle dealer
6-58 shall immediately remove any unexpired license plates from the
6-59 motor vehicle and place them in a secure, locked place. An
6-60 inventory list of such plates showing the license number, the make,
6-61 the motor number, and the vehicle identification number of the
6-62 motor vehicle from which such plates were removed shall be
6-63 maintained on forms to be furnished by the Texas <State> Department
6-64 of <Highways and Public> Transportation. Upon demand and if
6-65 required, the Certificate of Title or authority, the sales receipt,
6-66 or transfer document, the license plates, and inventory lists shall
6-67 be surrendered to the Texas <State> Department of <Highways and
6-68 Public> Transportation for cancellation. It is further provided
6-69 that all Certificates of Title covering such motor vehicles shall,
6-70 if required, be surrendered to the Texas <State> Department of
7-1 <Highways and Public> Transportation for cancellation. It shall
7-2 thereafter be the duty of the Texas <State> Department of <Highways
7-3 and Public> Transportation to furnish a signed receipt for the
7-4 surrendered license plates and Certificates of Title.
7-5 (c) A <motor vehicle> salvage vehicle dealer shall keep an
7-6 accurate and legible inventory of each used component part
7-7 purchased by or delivered to the dealer <him>, as follows:
7-8 (1) date of purchase or delivery;
7-9 (2) name, age, address, sex, and driver's license
7-10 number of the seller and a legible photocopy of the seller's
7-11 driver's license;
7-12 (3) the license number of the motor vehicle used to
7-13 deliver the used component part;
7-14 (4) a complete description of the item purchased,
7-15 including the type of material and, if applicable, the make, model,
7-16 color, and size of the item; and
7-17 (5) the vehicle identification number of the motor
7-18 vehicle from which the used component part was removed.
7-19 (d) A <motor vehicle> salvage vehicle dealer is not required
7-20 to keep records under Subsection (c) of this section of:
7-21 (1) interior used component parts or special accessory
7-22 parts on a motor vehicle more than 10 years of age; or
7-23 (2) used component parts delivered by commercial
7-24 freight lines or commercial carriers.
7-25 (e) In lieu of the requirements contained in Subsection (c)
7-26 of this section, a <motor vehicle> salvage vehicle dealer may
7-27 record the name of the business <dismantler> that the motor vehicle
7-28 or motor vehicle part is purchased from and the Texas Certificate
7-29 of Inventory number or federal taxpayer identification number.
7-30 (f) A <(e) An automobile> salvage vehicle dealer shall keep
7-31 all records required to be kept by this article for one year after
7-32 the date of sale or disposal of the item, and he shall allow an
7-33 inspection of the records by a peace officer at any reasonable
7-34 time. A peace officer may inspect the inventory on the premises of
7-35 the <automobile> salvage vehicle dealer at any reasonable time in
7-36 order to verify, check, or audit the records. A <An automobile>
7-37 salvage vehicle dealer or an employee of the dealer shall allow and
7-38 shall not interfere with a full and complete inspection by a peace
7-39 officer of the inventory, premises, and inventory records of the
7-40 dealer.
7-41 (g)(1) Except as provided by Subdivision (3) of this
7-42 subsection, a salvage vehicle dealer shall:
7-43 (A) assign a unique inventory number to each
7-44 transaction in which the dealer purchases or takes delivery of one
7-45 or more component parts;
7-46 (B) attach the unique inventory number to each
7-47 component part the dealer obtains in the transaction; and
7-48 (C) retain each component part in its original
7-49 condition on the business premises of the salvage vehicle dealer
7-50 who originally purchased the part for at least three calendar days,
7-51 excluding Sundays, after the date on which the dealer obtains the
7-52 part.
7-53 (2) A unique inventory number attached to a component
7-54 part as required by Subdivision (1) of this subsection may not be
7-55 removed while the part remains in the inventory of the salvage
7-56 vehicle dealer. <(f)> If a component part does not have a vehicle
7-57 identification number or the vehicle identification number has been
7-58 removed or the vehicle identification number of the vehicle from
7-59 which the component part was removed is not available, a motor
7-60 vehicle salvage dealer shall record the component part or component
7-61 parts on an affidavit bill of sale. The form of the affidavit bill
7-62 of sale shall be prescribed and made available by the Texas <State>
7-63 Department of <Highways and Public> Transportation.
7-64 (3) Subdivisions (1) and (2) of this subsection do not
7-65 apply to the purchase by a salvage vehicle dealer of a nonoperable
7-66 engine, transmission, or rear axle assembly from another motor
7-67 vehicle salvage dealer or an automotive-related business.
7-68 (h) <(g)> A <motor vehicle> salvage vehicle dealer shall
7-69 keep a record required to be kept by this section on a form
7-70 prescribed by the Texas <State> Department of <Highways and Public>
8-1 Transportation. The dealer shall maintain two copies of each
8-2 record for one year after the date of sale or disposal of the item.
8-3 On demand of a peace officer, the dealer shall give a copy of a
8-4 record to the officer.
8-5 (i) <(h)> The Texas <State> Department of <Highways and
8-6 Public> Transportation shall:
8-7 (1) prescribe the form to be used as required by
8-8 Subsection (c) <(e)> of this section; and
8-9 (2) make the form available to <motor vehicle> salvage
8-10 vehicle dealers.
8-11 (j) <(i)> A <motor vehicle> salvage vehicle dealer or an
8-12 employee of the dealer shall allow an inspection of the dealer's
8-13 required inventory records and affidavit bills of sale by a peace
8-14 officer at any reasonable time. A peace officer may inspect the
8-15 inventory on the premises of the dealer at any reasonable time in
8-16 order to verify, check, or audit the records. The dealer or the
8-17 employee shall allow and shall not interfere with a full and
8-18 complete inspection by a peace officer of the inventory, premises,
8-19 and required inventory records and affidavit bills of sale of the
8-20 dealer.
8-21 (k) <(j)> A peace officer may seize, hold, and dispose of
8-22 according to the Code of Criminal Procedure a motor vehicle or part
8-23 thereof which has been stolen or which has been altered so as to
8-24 remove, change, mutilate, or obliterate a permanent vehicle
8-25 identification number, derivative number, motor number, serial
8-26 number, or federal safety sticker.
8-27 (l) <(k)> Except as provided by Subsections (m) <(l)> and
8-28 (o) <(n)> of this section, a person who fails to comply with any
8-29 provision of this section or violates a provision of this section
8-30 commits a Class A misdemeanor.
8-31 (m) <(l)> A person commits an offense if the person commits
8-32 theft as defined by Section 31.03, Penal Code, and the person fails
8-33 to comply with any provision of this section or violates a
8-34 provision of this section in conjunction with the commission of the
8-35 theft.
8-36 (n) <(m)> Except as provided by Subsection (o) <(n)> of this
8-37 section, an offense under Subsection (m) <(l)> of this section is a
8-38 Class A misdemeanor.
8-39 (o) <(n)> If it is shown on the trial of an offense under
8-40 Subsection (m) <(l)> of this section that the defendant has
8-41 previously been convicted of an offense under that subsection, the
8-42 offense is punishable as a felony of the third degree.
8-43 SECTION 3. Article 6687-2a, Revised Statutes, is amended to
8-44 read as follows:
8-45 Art. 6687-2a. INJUNCTION; <MOTOR VEHICLE> SALVAGE VEHICLE
8-46 DEALERS. (a) If a <motor vehicle> salvage vehicle dealer or an
8-47 employee of the dealer acting in the course of his employment is
8-48 convicted of more than one offense under Section 1, Chapter 506,
8-49 Acts of the 57th Legislature, Regular Session, 1961 (Article
8-50 6687-2, Vernon's Texas Civil Statutes), a district attorney of the
8-51 county in which the dealer's salvage business is located may bring
8-52 an action in the county to enjoin the dealer's business operations.
8-53 The proceedings must be brought in the name of the state.
8-54 (b) If judgment is in favor of the petitioner, the court
8-55 shall grant an injunction enjoining the dealer from maintaining or
8-56 participating in the business of a <motor vehicle> salvage vehicle
8-57 dealer for a definite period of time or indefinitely, as determined
8-58 by the court. The judgment must order that the place where the
8-59 dealer's business is located be closed for the same period of time.
8-60 SECTION 4. Subsections (a) and (f), Article 6687-2b, Revised
8-61 Statutes, are amended to read as follows:
8-62 (a) A <motor vehicle> salvage vehicle dealer may not operate
8-63 heavy machinery in a motor vehicle salvage yard between the hours
8-64 of 7 p.m. of one day and 7 a.m. of the following day.
8-65 (f) In this article, "<motor vehicle> salvage vehicle
8-66 dealer" has the meaning assigned by Article 6687-1a, Revised
8-67 Statutes <Section 1, Chapter 506, Acts of the 57th Legislature,
8-68 Regular Session, 1961 (Article 6687-2, Vernon's Texas Civil
8-69 Statutes), and its subsequent amendments>.
8-70 SECTION 5. Subsection (b), Article 6687-2b, Revised
9-1 Statutes, is repealed.
9-2 SECTION 6. A person is not required to hold a license under
9-3 Article 6687-1a, Revised Statutes, as added by this Act, to operate
9-4 as a salvage vehicle dealer until March 1, 1996.
9-5 SECTION 7. (a) Except as provided by Subsection (b) of this
9-6 section, this Act takes effect September 1, 1995.
9-7 (b) Sections 2.01 and 4.02, Article 6687-1a, Revised
9-8 Statutes, as added by this Act, take effect March 1, 1996.
9-9 (c) The Texas Transportation Commission shall adopt rules
9-10 for the regulation of salvage vehicle dealers in this state not
9-11 later than December 1, 1995.
9-12 SECTION 8. The importance of this legislation and the
9-13 crowded condition of the calendars in both houses create an
9-14 emergency and an imperative public necessity that the
9-15 constitutional rule requiring bills to be read on three several
9-16 days in each house be suspended, and this rule is hereby suspended.
9-17 * * * * *