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                               * * * * *