By Cain                                               S.B. No. 1035
       74R5899 PB-F
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the licensing and regulation of certain persons dealing
    1-3  in salvage vehicles and parts; providing criminal penalties.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Chapter 1, Title 116, Revised Statutes, is
    1-6  amended by adding Article 6687-1A to read as follows:
    1-7               ARTICLE 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 retail dollar value
   1-11  of a vehicle.
   1-12              (2)  "Automobile recycler" means a person who engages
   1-13  in the business of dealing in salvage vehicles for the purpose of
   1-14  dismantling the vehicles to sell used parts and the resulting scrap
   1-15  metal or a person otherwise engaged in the business of acquiring,
   1-16  selling, or dealing in salvage parts.  The term includes a dealer
   1-17  in used motor vehicle parts.
   1-18              (3)  "Commission" means the Texas Transportation
   1-19  Commission.
   1-20              (4)  "Department" means the Texas Department of
   1-21  Transportation.
   1-22              (5)  "Late model salvage vehicle" means a salvage
   1-23  vehicle that was manufactured during the preceding six years,
   1-24  including the current model year.
    2-1              (6)  "Major component part" means one of the following
    2-2  parts of a vehicle:
    2-3                    (A)  the engine;
    2-4                    (B)  the transmission;
    2-5                    (C)  the frame;
    2-6                    (D)  the right or left front fender;
    2-7                    (E)  the hood;
    2-8                    (F)  a door allowing entrance to or egress from
    2-9  the passenger compartment of the vehicle;
   2-10                    (G)  the front or rear bumper;
   2-11                    (H)  the right or left quarter panel;
   2-12                    (I)  the deck lid, tailgate, or hatchback;
   2-13                    (J)  the cargo box of a pickup truck;
   2-14                    (K)  the cab of a truck; or
   2-15                    (L)  the body of a passenger vehicle.
   2-16              (7)  "Motor vehicle" has the meaning assigned by the
   2-17  Uniform Act Regulating Traffic on Highways (Article 6701d, Vernon's
   2-18  Texas Civil Statutes).
   2-19              (8)  "Nonrepairable vehicle" means:
   2-20                    (A)  a vehicle that is damaged or missing a major
   2-21  component part to the extent that the total estimated cost of
   2-22  repairs to rebuild or reconstruct the vehicle, including parts and
   2-23  labor, is equal to or greater than an amount equal to 95 percent of
   2-24  the actual cash value of the vehicle in its predamaged condition;
   2-25  or
   2-26                    (B)  a vehicle that comes into this state with a
   2-27  nonrepairable vehicle certificate of title or other comparable
    3-1  certificate of title.
    3-2              (9)  "Nonrepairable vehicle certificate of title" means
    3-3  any document issued by the department that evidences ownership of a
    3-4  nonrepairable vehicle.
    3-5              (10)  "Person" means an individual, partnership,
    3-6  corporation, trust, association, or other private legal entity.
    3-7              (11)  "Salvage part" means a major component part of a
    3-8  late model salvage vehicle that is serviceable to the extent that
    3-9  it can be reused.
   3-10              (12)  "Salvage vehicle" means:
   3-11                    (A)  a motor vehicle with a major component part
   3-12  that is damaged or missing to the extent that the total estimated
   3-13  cost of repairs to rebuild or reconstruct the vehicle, including
   3-14  parts and labor, is equal to or greater than an amount equal to 75
   3-15  percent of the actual cash value of the vehicle in its predamaged
   3-16  condition; or
   3-17                    (B)  a damaged vehicle that comes into this state
   3-18  under a salvage vehicle certificate of title or other comparable
   3-19  certificate of title.
   3-20              (13)  "Salvage vehicle agent" means a person employed
   3-21  by a licensed salvage vehicle dealer to acquire, sell, or otherwise
   3-22  deal in late model salvage vehicles or salvage parts in this state.
   3-23              (14)  "Salvage vehicle certificate of title" means any
   3-24  document issued by the department that evidences ownership of a
   3-25  salvage vehicle.
   3-26              (15)  "Salvage vehicle dealer" means a person who is
   3-27  engaged in this state in the business of acquiring, selling, or
    4-1  otherwise dealing in salvage vehicles or vehicle parts of a type
    4-2  required to be covered by a salvage vehicle certificate of title or
    4-3  nonrepairable vehicle certificate of title under a license issued
    4-4  by the department that allows the holder of the license to acquire,
    4-5  sell, dismantle, repair, process, scrap, or otherwise deal in
    4-6  salvage vehicles.
    4-7              (16)  "Salvage vehicle record" means the record of
    4-8  sales and purchases for each salvage vehicle handled by a salvage
    4-9  vehicle dealer.
   4-10        Sec. 1.02.  POWERS AND DUTIES OF COMMISSION.  (a)  The Texas
   4-11  Transportation Commission shall adopt rules as necessary to
   4-12  administer this article and may take other action as necessary to
   4-13  enforce this article.
   4-14        (b)  The commission shall set application fees, license fees,
   4-15  renewal fees, and other fees as required to implement this article.
   4-16  The commission shall set the fees in amounts reasonable and
   4-17  necessary to implement this article.
   4-18        Sec. 1.03.  DETERMINATION OF ESTIMATED COST OF REPAIR.  (a)
   4-19  The estimated cost of repair parts shall be determined by using the
   4-20  current published retail cost of original manufacturer equipment
   4-21  parts or an estimate of the actual cost of the repair parts.
   4-22        (b)  The estimated labor costs shall be computed by using the
   4-23  hourly rate and time allocations that are reasonable and commonly
   4-24  assessed in the repair industry in the community in which the
   4-25  repairs are performed.
   4-26                     PART 2.  LICENSE REQUIREMENTS
   4-27        Sec. 2.01.  LICENSE REQUIRED; EXEMPTION.  (a)  A person may
    5-1  not act as an automobile recycler or salvage vehicle dealer,
    5-2  including storing or displaying vehicles as an agent or escrow
    5-3  agent of an insurance company, unless the person holds:
    5-4              (1)  a salvage vehicle dealer license issued under this
    5-5  article; or
    5-6              (2)  if the person does not reside in this state, an
    5-7  out-of-state salvage vehicle dealer license.
    5-8        (b)  A person may not act as a salvage vehicle agent unless
    5-9  the person holds a salvage vehicle agent license issued under this
   5-10  article.
   5-11        (c)  This article does not apply to an insurance company
   5-12  authorized to engage in the business of insurance in this state.
   5-13        Sec. 2.02.  LICENSE APPLICATION.  (a)  An applicant for a
   5-14  salvage vehicle dealer license must apply on a form prescribed by
   5-15  the department.  The application form must be signed by the
   5-16  applicant and accompanied by the application fee.  The application
   5-17  must include:
   5-18              (1)  the name, business address, and business telephone
   5-19  number of the applicant;
   5-20              (2)  the name under which the applicant will do
   5-21  business;
   5-22              (3)  the location, by number, street, and municipality,
   5-23  of each office from which the applicant will conduct business;
   5-24              (4)  a statement indicating whether the applicant has
   5-25  previously applied for a license under this article, the result of
   5-26  the previous application, and whether the applicant has ever been
   5-27  the holder of a license under this article that was revoked or
    6-1  suspended;
    6-2              (5)  a statement of the previous history, record, and
    6-3  associations of the applicant to the extent sufficient to
    6-4  establish, to the satisfaction of the department, the business
    6-5  reputation and character of the applicant;
    6-6              (6)  the applicant's federal tax identification number,
    6-7  if any;
    6-8              (7)  the applicant's state sales tax number; and
    6-9              (8)  other information as required by rules adopted
   6-10  under this article.
   6-11        (b)  A license may not be issued in a fictitious name that
   6-12  may be confused with or is similar to that of a governmental entity
   6-13  or that is otherwise deceptive or misleading to the public.
   6-14        Sec. 2.03.  ADDITIONAL REQUIREMENTS FOR CORPORATE OR
   6-15  PARTNERSHIP LICENSE.  (a)  If a salvage vehicle dealer license
   6-16  applicant intends to engage in business through a corporation, the
   6-17  license application must include, in addition to the information
   6-18  required under Section 2.02 of this article:
   6-19              (1)  the state of incorporation;
   6-20              (2)  the name, address, date of birth, and social
   6-21  security number of each of the principal officers and directors of
   6-22  the corporation;
   6-23              (3)  a statement of the previous history, record, and
   6-24  associations of each officer and director to the extent sufficient
   6-25  to establish, to the satisfaction of the department, the business
   6-26  reputation and character of the applicant; and
   6-27              (4)  a statement showing whether an employee, officer,
    7-1  or director has been refused a license as a salvage vehicle dealer
    7-2  or has been the holder of a license that was revoked or suspended.
    7-3        (b)  If the license applicant intends to engage in business
    7-4  through a partnership, the license application must include, in
    7-5  addition to the information required under Section 2.02 of this
    7-6  article:
    7-7              (1)  the name, address, date of birth, and social
    7-8  security number of each owner or partner;
    7-9              (2)  a statement of the previous history, record, and
   7-10  associations of each owner and partner to the extent sufficient to
   7-11  establish, to the satisfaction of the department, the business
   7-12  reputation and character of the applicant; and
   7-13              (3)  a statement showing whether a partner, owner, or
   7-14  employee has been refused a license as a salvage vehicle dealer or
   7-15  has been the holder of a license that was revoked or suspended.
   7-16        Sec. 2.04.  OUT-OF-STATE DEALER LICENSE.  (a)  An applicant
   7-17  for an out-of-state salvage vehicle dealer license must apply on a
   7-18  form prescribed by the department.  The form must be signed by the
   7-19  applicant.  The application requirements for an out-of-state
   7-20  salvage vehicle dealer license are the same as those imposed under
   7-21  Sections 2.02 and 2.03 of this article.
   7-22        (b)  An applicant for an out-of-state salvage vehicle dealer
   7-23  license must present evidence satisfactory to the department that
   7-24  the applicant holds any license required to acquire, sell, or
   7-25  otherwise deal in late model salvage vehicles, salvage parts, or
   7-26  nonrepairable vehicles in the state in which the primary business
   7-27  of the license applicant is located.
    8-1        Sec. 2.05.  CLASSIFICATION OF LICENSE ENDORSEMENTS.  (a)  The
    8-2  department shall classify salvage vehicle dealers according to the
    8-3  type of activity performed by the dealers.  A salvage vehicle
    8-4  dealer may not engage in activities of a particular classification
    8-5  as provided by this article unless the salvage vehicle dealer holds
    8-6  a license endorsement under that classification.
    8-7        (b)  An applicant may apply for a salvage vehicle dealer
    8-8  license with an endorsement in one or more of the following
    8-9  classifications:
   8-10              (1)  new automobile dealer;
   8-11              (2)  used automobile dealer;
   8-12              (3)  auto recycler or used vehicle parts dealer;
   8-13              (4)  vehicle scrap metal processor;
   8-14              (5)  salvage vehicle pool operator;
   8-15              (6)  salvage vehicle broker; or
   8-16              (7)  salvage vehicle rebuilder.
   8-17        Sec. 2.06.  INVESTIGATION.  (a)  The department may not grant
   8-18  a license under this article until the department completes an
   8-19  investigation of the applicant's qualifications under this article.
   8-20        (b)  The department shall conduct the investigation not later
   8-21  than the 15th day after the date on which the application is
   8-22  received by the department and shall report the results of the
   8-23  investigation to the applicant.
   8-24        Sec. 2.07.  LICENSE ISSUANCE.  The department shall issue a
   8-25  license to an applicant who meets the license qualifications
   8-26  adopted under this article and pays the required fees.
   8-27        Sec. 2.08.  LICENSE RENEWAL.  (a)  A license issued under
    9-1  this article expires on the first anniversary of the date of
    9-2  issuance and may be renewed annually on or before the expiration
    9-3  date on payment of the required renewal fee.
    9-4        (b)  If a license holder fails to renew the license before
    9-5  its expiration date, the license holder may renew the license on
    9-6  payment of the renewal fee and a late fee set by the commission.
    9-7  If the license is not renewed before the first anniversary of the
    9-8  date on which the license expired, the license holder must apply
    9-9  for a new license in the same manner as an applicant for an initial
   9-10  license.
   9-11        Sec. 2.09.  REGISTRATION OF BUSINESS LOCATIONS.  (a)  A
   9-12  license applicant who intends to operate as a salvage vehicle
   9-13  dealer at more than one location must list in the application each
   9-14  location at which business is to be conducted.
   9-15        (b)  Before moving a place of business or opening an
   9-16  additional place of business, a salvage vehicle dealer must
   9-17  register the new location with the department.
   9-18                   PART 3.  DUTIES OF LICENSE HOLDER
   9-19        Sec. 3.01.  CERTIFICATE OF TITLE.  (a)  If a salvage vehicle
   9-20  dealer acquires ownership of a late model salvage vehicle from an
   9-21  owner, the dealer must receive an assigned certificate of title.
   9-22  If the assigned certificate of title is not a salvage certificate
   9-23  of title or a nonrepairable certificate of title, the licensed
   9-24  salvage vehicle dealer shall, not later than the 10th day after the
   9-25  date of receipt of the title, surrender the assigned certificate of
   9-26  title to the department and apply for a salvage certificate of
   9-27  title or a nonrepairable certificate of title, as appropriate.
   10-1        (b)  If a late model salvage vehicle or nonrepairable vehicle
   10-2  is to be dismantled, scrapped, or destroyed, the salvage vehicle
   10-3  dealer shall surrender an assigned certificate of title, salvage
   10-4  certificate of title, or nonrepairable certificate of title to the
   10-5  department in the manner prescribed by the department not later
   10-6  than the 30th day after the date the vehicle is acquired and report
   10-7  to the department that the vehicle was dismantled, scrapped, or
   10-8  destroyed.
   10-9        (c)  If the holder of a salvage vehicle dealer license
  10-10  acquires ownership of an older model vehicle from an owner and
  10-11  receives an assigned certificate of title and the vehicle is to be
  10-12  dismantled, scrapped, or destroyed, the license holder shall
  10-13  surrender the assigned certificate of title to the department on a
  10-14  form prescribed by the department not later than the 30th day after
  10-15  the date on which the title is received and present evidence that
  10-16  the vehicle was dismantled, scrapped, or destroyed.  The license
  10-17  holder shall keep a record of the vehicle.
  10-18        Sec. 3.02.  RECORDS.  Each holder of a salvage vehicle dealer
  10-19  license shall maintain records of each salvage vehicle and any
  10-20  salvage parts purchased by the license holder and shall maintain
  10-21  sales records as required by this article.
  10-22        Sec. 3.03.  AUTHORIZED SALE.  (a)  A person may not sell,
  10-23  transfer, or release a late model salvage vehicle to anyone other
  10-24  than:
  10-25              (1)  a governmental entity;
  10-26              (2)  the vehicle's former owner; or
  10-27              (3)  a licensed salvage vehicle dealer.
   11-1        (b)  A person may not sell, transfer, or release a late model
   11-2  nonrepairable vehicle to anyone other than:
   11-3              (1)  a governmental entity;
   11-4              (2)  the vehicle's former owner; or
   11-5              (3)  a licensed salvage vehicle dealer who holds an
   11-6  endorsement as:
   11-7                    (A)  an auto recycler or used vehicle parts
   11-8  dealer; or
   11-9                    (B)  a scrap metal processor.
  11-10        Sec. 3.04.  AGENTS.  The holder of a salvage vehicle dealer
  11-11  license may authorize not more than two persons to operate as
  11-12  salvage vehicle agents under the dealer's license.  An agent may
  11-13  acquire, sell, or otherwise deal in late model salvage vehicles,
  11-14  nonrepairable vehicles, or salvage parts as directed by the dealer.
  11-15  An agent authorized to operate under this section is entitled to a
  11-16  salvage vehicle agent license on application to the department and
  11-17  payment of the required fee.
  11-18              PART 4.  DISCIPLINARY ACTIONS AND PENALTIES
  11-19        Sec. 4.01.  DENIAL, SUSPENSION, OR REVOCATION OF LICENSE.
  11-20  (a)  The department may deny, suspend, revoke, or reinstate a
  11-21  license issued under this article.
  11-22        (b)  The commission shall adopt rules establishing the
  11-23  grounds for the denial, suspension, revocation, or reinstatement of
  11-24  a license and establishing procedures for disciplinary actions.
  11-25        (c)  Proceedings relating to the denial, suspension, or
  11-26  revocation of a license issued under this article are subject to
  11-27  Chapter 2001, Government Code.
   12-1        (d)  A person whose license is revoked may not apply for a
   12-2  new license before the first anniversary of the date of the
   12-3  revocation.
   12-4        Sec. 4.02.  CRIMINAL PENALTY.  (a)  A person commits an
   12-5  offense if the person acts as a salvage vehicle dealer without a
   12-6  salvage vehicle dealer license issued under this article.
   12-7        (b)  A person commits an offense if the person acts as a
   12-8  salvage vehicle agent without a salvage vehicle agent license
   12-9  issued under this article.
  12-10        (c)  An offense under this section is a Class A misdemeanor.
  12-11        SECTION 2.  Chapter 506, Acts of the 57th Legislature,
  12-12  Regular Session, 1961 (Article 6687-2, Vernon's Texas Civil
  12-13  Statutes), is amended to read as follows:
  12-14        Art. 6687-2.  <Motor vehicle> salvage Vehicle dealers.
  12-15  (a)  In this section:
  12-16              (1)  "Salvage vehicle <Motor vehicle salvage> dealer"
  12-17  has the meaning assigned by Article 6687-1A, Revised Statutes
  12-18  <means an individual, corporation, association, partnership,
  12-19  organization, or other entity engaged in the business of obtaining
  12-20  abandoned, wrecked, or junked motor vehicles or motor vehicle parts
  12-21  for scrap disposal, resale, repairing, rebuilding, demolition, or
  12-22  other form of salvage>.
  12-23              (2)  "Component part" means the front end assembly or
  12-24  tail section of a motor vehicle, the cab of a truck (light or
  12-25  heavy), the bed of a one ton or lighter truck, an interior
  12-26  component part of a motor vehicle, a special accessory part, or a
  12-27  vehicle part that contains or should contain a federal safety
   13-1  sticker, motor number, serial number, manufacturer's permanent
   13-2  vehicle identification number, or a derivative of a vehicle
   13-3  identification number.
   13-4              (3)  "Front-end assembly" means the hood, right or left
   13-5  front fender, grill, bumper, radiator, or radiator support, if two
   13-6  or more such parts are assembled together as one unit.
   13-7              (4)  "Tail section" means the roof, floor pan, right or
   13-8  left rear quarter panel, deck lid, or rear bumper, if two or more
   13-9  of such parts are assembled together as one unit.
  13-10              (5)  "Federal safety sticker" means a sticker, label,
  13-11  or tag required by 15 U.S.C. Section 1403 or rules adopted under
  13-12  that section.
  13-13              (6)  "Interior component part" means the front or rear
  13-14  seat or radio of a motor vehicle.
  13-15              (7)  "Special accessory part" means the tire, wheel,
  13-16  tailgate, or removable glass top of a motor vehicle.
  13-17              (8)  "Motor vehicle" has the meaning given by
  13-18  Subsection (b), Section 2, Uniform Act Regulating Traffic on
  13-19  Highways (Article 6701d, Vernon's Texas Civil Statutes).
  13-20        (b)  A <motor vehicle> salvage vehicle dealer may not receive
  13-21  a motor vehicle <described in Subsection (a) of this section,>
  13-22  unless the dealer first obtains a certificate of authority, sales
  13-23  receipt, or transfer document under Sections 5.04 and 5.10,
  13-24  respectively, Article V, Section 1, Chapter 741, Acts of the 67th
  13-25  Legislature, Regular Session, 1981 (Article 4477-9a, Vernon's Texas
  13-26  Civil Statutes), or a Certificate of Title showing that there are
  13-27  no liens on the vehicle or that all recorded liens have been
   14-1  released.  On receipt of a vehicle, a <motor vehicle> salvage
   14-2  vehicle dealer shall immediately remove any unexpired license
   14-3  plates from the motor vehicle and place them in a secure, locked
   14-4  place.  An inventory list of such plates showing the license
   14-5  number, the make, the motor number, and the vehicle identification
   14-6  number of the motor vehicle from which such plates were removed
   14-7  shall be maintained on forms to be furnished by the Texas <State>
   14-8  Department of <Highways and Public> Transportation.  Upon demand
   14-9  the Certificate of Title or authority, the sales receipt, or
  14-10  transfer document, the license plates, and inventory lists shall be
  14-11  surrendered to the Texas <State> Department of <Highways and
  14-12  Public> Transportation for cancellation.  It is further provided
  14-13  that all Certificates of Title covering such motor vehicles shall
  14-14  be surrendered to the Texas <State> Department of <Highways and
  14-15  Public> Transportation for cancellation.  It shall thereafter be
  14-16  the duty of the Texas <State> Department of <Highways and Public>
  14-17  Transportation to furnish a signed receipt for the surrendered
  14-18  license plates and Certificates of Title.
  14-19        (c)  A <motor vehicle> salvage vehicle dealer shall keep an
  14-20  accurate and legible inventory of each used component part
  14-21  purchased by or delivered to him, as follows:
  14-22              (1)  date of purchase or delivery;
  14-23              (2)  name, age, address, sex, and driver's license
  14-24  number of the seller;
  14-25              (3)  the license number of the motor vehicle used to
  14-26  deliver the used component part;
  14-27              (4)  a complete description of the item purchased,
   15-1  including the type of material and, if applicable, the make, model,
   15-2  color, and size of the item; and
   15-3              (5)  the vehicle identification number of the motor
   15-4  vehicle from which the used component part was removed.
   15-5        (d)  A <motor vehicle> salvage vehicle dealer is not required
   15-6  to keep records under Subsection (c) of this section of:
   15-7              (1)  interior used component parts or special accessory
   15-8  parts on a motor vehicle more than 10 years of age; or
   15-9              (2)  used component parts delivered by commercial
  15-10  freight lines or commercial carriers.
  15-11        (e)  In lieu of the requirements contained in Subsection (c)
  15-12  of this section, a <motor vehicle> salvage vehicle dealer may
  15-13  record the name of the dismantler that the motor vehicle or motor
  15-14  vehicle part is purchased from and the Texas Certificate of
  15-15  Inventory number.
  15-16        (f)  A <(e)  An automobile> salvage vehicle dealer shall keep
  15-17  all records required to be kept by this article for one year after
  15-18  the date of sale or disposal of the item, and he shall allow an
  15-19  inspection of the records by a peace officer at any reasonable
  15-20  time.  A peace officer may inspect the inventory on the premises of
  15-21  the <automobile> salvage vehicle dealer at any reasonable time in
  15-22  order to verify, check, or audit the records.  A <An automobile>
  15-23  salvage vehicle dealer or an employee of the dealer shall allow and
  15-24  shall not interfere with a full and complete inspection by a peace
  15-25  officer of the inventory, premises, and inventory records of the
  15-26  dealer.
  15-27        (g) <(f)>  If a used component part does not have a vehicle
   16-1  identification number or the vehicle identification number has been
   16-2  removed or the vehicle identification number of the vehicle from
   16-3  which the used component part was removed is not available, a
   16-4  <motor vehicle> salvage vehicle dealer shall record the used
   16-5  component part or <component> parts on an affidavit bill of sale.
   16-6  The form of the affidavit bill of sale shall be prescribed and made
   16-7  available by the Texas <State> Department of <Highways and Public>
   16-8  Transportation.
   16-9        (h) <(g)>  A <motor vehicle> salvage vehicle dealer shall
  16-10  keep a record required to be kept by this section on a form
  16-11  prescribed by the Texas <State> Department of <Highways and Public>
  16-12  Transportation.  The dealer shall maintain two copies of each
  16-13  record for one year after the date of sale or disposal of the item.
  16-14  On demand of a peace officer, the dealer shall give a copy of a
  16-15  record to the officer.
  16-16        (i) <(h)>  The Texas <State> Department of <Highways and
  16-17  Public> Transportation shall:
  16-18              (1)  prescribe the form to be used as required by
  16-19  Subsection (c) <(e)> of this section; and
  16-20              (2)  make the form available to <motor vehicle> salvage
  16-21  vehicle dealers.
  16-22        (j) <(i)>  A <motor vehicle> salvage vehicle dealer or an
  16-23  employee of the dealer shall allow an inspection of the dealer's
  16-24  required inventory records and affidavit bills of sale by a peace
  16-25  officer at any reasonable time.  A peace officer may inspect the
  16-26  inventory on the premises of the dealer at any reasonable time in
  16-27  order to verify, check, or audit the records.  The dealer or the
   17-1  employee  shall allow and shall not interfere with a full and
   17-2  complete inspection by a peace officer of the inventory, premises,
   17-3  and required inventory records and affidavit bills of sale of the
   17-4  dealer.
   17-5        (k) <(j)>  A peace officer may seize, hold, and dispose of
   17-6  according to the Code of Criminal Procedure a motor vehicle or part
   17-7  thereof which has been stolen or which has been altered so as to
   17-8  remove, change, mutilate, or obliterate a permanent vehicle
   17-9  identification number, derivative number, motor number, serial
  17-10  number, or federal safety sticker.
  17-11        (l) <(k)>  Except as provided by Subsections (m) <(l)> and
  17-12  (o) <(n)> of this section, a person who fails to comply with any
  17-13  provision of this section or violates a provision of this section
  17-14  commits a Class A misdemeanor.
  17-15        (m) <(l)>  A person commits an offense if the person commits
  17-16  theft as defined by Section 31.03, Penal Code, and the person fails
  17-17  to comply with any provision of this section or violates a
  17-18  provision of this section in conjunction with the commission of the
  17-19  theft.
  17-20        (n) <(m)>  Except as provided by Subsection (o) <(n)> of this
  17-21  section, an offense under Subsection (m) <(l)> of this section is a
  17-22  Class A misdemeanor.
  17-23        (o) <(n)>  If it is shown on the trial of an offense under
  17-24  Subsection (m) <(l)> of this section that the defendant has
  17-25  previously been convicted of an offense under that subsection, the
  17-26  offense is punishable as a felony of the third degree.
  17-27        SECTION 3.  Article 6687-2a, Revised Statutes, is amended to
   18-1  read as follows:
   18-2        Art. 6687-2a.  INJUNCTION; <MOTOR VEHICLE> SALVAGE VEHICLE
   18-3  DEALERS.  (a)  If a <motor vehicle> salvage vehicle dealer or an
   18-4  employee of the dealer acting in the course of his employment is
   18-5  convicted of more than one offense under Section 1, Chapter 506,
   18-6  Acts of the 57th Legislature, Regular Session, 1961 (Article
   18-7  6687-2, Vernon's Texas Civil Statutes), a district attorney of the
   18-8  county in which the dealer's salvage business is located may bring
   18-9  an action in the county to enjoin the dealer's business operations.
  18-10  The proceedings must be brought in the name of the state.
  18-11        (b)  If judgment is in favor of the petitioner, the court
  18-12  shall grant an injunction enjoining the dealer from maintaining or
  18-13  participating in the business of a <motor vehicle> salvage vehicle
  18-14  dealer for a definite period of time or indefinitely, as determined
  18-15  by the court.  The judgment must order that the place where the
  18-16  dealer's business is located be closed for the same period of time.
  18-17        SECTION 4.  Subsections (a) and (f), Article 6687-2b, Revised
  18-18  Statutes, are amended to read as follows:
  18-19        (a)  A <motor vehicle> salvage vehicle dealer may not operate
  18-20  heavy machinery in a motor vehicle salvage yard between the hours
  18-21  of 7 p.m.  of one day and 7 a.m.  of the following day.
  18-22        (f)  In this article, "<motor vehicle> salvage vehicle
  18-23  dealer" has the meaning assigned by Article 6687-1A, Revised
  18-24  Statutes <Section 1, Chapter 506, Acts of the 57th Legislature,
  18-25  Regular Session, 1961 (Article 6687-2, Vernon's Texas Civil
  18-26  Statutes), and its subsequent amendments>.
  18-27        SECTION 5.  Subsection (b), Article 6687-2b, Revised
   19-1  Statutes, is repealed.
   19-2        SECTION 6.  A person is not required to hold a license under
   19-3  Article 6687-1A, Revised Statutes, as added by this Act, to operate
   19-4  as a salvage vehicle dealer until  March 1, 1996.
   19-5        SECTION 7.  (a)  Except as provided by Subsection (b) of this
   19-6  section, this Act takes effect September 1, 1995.
   19-7        (b)  Sections 2.01 and 4.02, Article 6687-1A, Revised
   19-8  Statutes, as added by this Act, take effect March 1, 1996.
   19-9        (c)  The Texas Transportation Commission shall adopt rules
  19-10  for the regulation of salvage vehicle dealers in this state not
  19-11  later than December 1, 1995.
  19-12        SECTION 8.  The importance of this legislation and the
  19-13  crowded condition of the calendars in both houses create an
  19-14  emergency and an imperative public necessity that the
  19-15  constitutional rule requiring bills to be read on three several
  19-16  days in each house be suspended, and this rule is hereby suspended.