By Uher H.B. No. 2742
75R7986 E
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the regulation of salvage vehicle dealers; providing
1-3 penalties.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 1.01, Article 6687-1a, Revised Statutes,
1-6 is amended to read as follows:
1-7 Sec. 1.01. DEFINITIONS. In this article:
1-8 (1) "Actual cash value" means the market value of a
1-9 motor vehicle as determined:
1-10 (A) from publications that are commonly used by
1-11 [in] the automotive and insurance industries to establish the value
1-12 of motor vehicles; or
1-13 (B) if the entity determining the value is an
1-14 insurance company, by any other procedure recognized by the
1-15 insurance industry, including market surveys, that is applied by
1-16 the company in a uniform manner.
1-17 (2) ["Automobile recycler" means a person who engages
1-18 in the business of dealing in salvage vehicles for the purpose of
1-19 dismantling the vehicles to sell used parts and the resulting scrap
1-20 metal or a person otherwise engaged in the business of acquiring,
1-21 selling, or dealing in salvage parts. The term includes a dealer
1-22 in used motor vehicle parts.]
1-23 [(3)] "Casual sale" means the sale by a salvage
1-24 vehicle dealer [at auction] of not more than four [one]
2-1 nonrepairable motor vehicles [vehicle] or [late model] salvage
2-2 motor vehicles during a calendar year [vehicle] to the same person
2-3 who is not a salvage vehicle dealer or salvage vehicle agent
2-4 [during a calendar year].
2-5 (3) [(4)] "Commission" means the Texas Transportation
2-6 Commission.
2-7 (4) [(5)] "Department" means the Texas Department of
2-8 Transportation.
2-9 (5) [(6)] "Late model motor vehicle" means a motor
2-10 vehicle with a model year equal to the then current calendar year
2-11 plus [or one of] the five preceding calendar years.
2-12 (6) "Older model motor vehicle" means a motor vehicle
2-13 with a model year of six or more calendar years before the current
2-14 calendar year.
2-15 (7) "Major component part" means one of the following
2-16 parts of a vehicle:
2-17 (A) the engine;
2-18 (B) the transmission;
2-19 (C) the frame;
2-20 (D) the right or left front fender;
2-21 (E) the hood;
2-22 (F) a door allowing entrance to or egress from
2-23 the passenger compartment of the vehicle;
2-24 (G) the front or rear bumper;
2-25 (H) the right or left quarter panel;
2-26 (I) the deck lid, tailgate, or hatchback;
2-27 (J) the cargo box of a pickup truck;
3-1 (K) the cab of a truck; or
3-2 (L) the body of a passenger vehicle.
3-3 (8) "Motor vehicle" has the meaning assigned by
3-4 Section 501.002, Transportation Code [the Uniform Act Regulating
3-5 Traffic on Highways (Article 6701d, Vernon's Texas Civil
3-6 Statutes)].
3-7 (9) "Nonrepairable motor vehicle" means:
3-8 (A) a motor vehicle that is damaged, wrecked, or
3-9 burned beyond the reasonable cost of repair to such an extent that
3-10 its only legitimate residual value is as a source of parts or
3-11 scrap metal [late model vehicle that is damaged or missing a major
3-12 component part to the extent that the total estimated cost of
3-13 repairs to rebuild or reconstruct the vehicle, including parts and
3-14 labor other than the cost of materials and labor for repainting the
3-15 vehicle but excluding sales taxes on the total cost of the repairs,
3-16 and excluding the cost of repairs to repair hail damage, is equal
3-17 to or greater than an amount equal to 95 percent of the actual cash
3-18 value of the vehicle in its predamaged condition]; or
3-19 (B) a motor vehicle that comes into this state
3-20 with a nonrepairable vehicle certificate of title or other
3-21 comparable certificate of title issued by another state or
3-22 jurisdiction.
3-23 (10) "Nonrepairable vehicle certificate of title"
3-24 means a [any] document issued by the department that evidences
3-25 ownership of a nonrepairable vehicle.
3-26 (11) "Out-of-state buyer" means a person who:
3-27 (A) is not a domiciliary of this state;
4-1 (B) does not hold a license under this article;
4-2 and
4-3 (C) is licensed by another state or jurisdiction
4-4 in an automotive business if the department has not listed the
4-5 holders of such license as prohibited [permitted] purchasers of
4-6 salvage motor vehicles or nonrepairable motor vehicles based on
4-7 [substantially] similar licensing requirements and on whether
4-8 salvage vehicle dealers licensed in Texas are permitted to purchase
4-9 salvage motor vehicles or nonrepairable motor vehicles in the other
4-10 state or jurisdiction.
4-11 (12) "Person" means an individual, partnership,
4-12 corporation, trust, association, or other private legal entity.
4-13 (13) "Salvage part" means a used major component part
4-14 of a motor [late model salvage] vehicle that is serviceable to the
4-15 extent that it can be reused.
4-16 (14) "Salvage motor vehicle" [or "late model salvage
4-17 vehicle"] means:
4-18 (A) a [late model] motor vehicle [with a major
4-19 component part] that is damaged [or missing] to the extent that
4-20 the total estimated cost of repairs to rebuild or reconstruct the
4-21 motor vehicle other than repairs related to hail damage, including
4-22 parts and labor, [but] excluding the cost of repairs to repair hail
4-23 damage, and excluding storage fees, sales tax, and towing fees, is
4-24 equal to or greater than an amount equal to 75 percent of the
4-25 actual cash value of the motor vehicle in its predamaged condition
4-26 and that is not a nonrepairable motor vehicle; [or]
4-27 (B) a motor [damaged] vehicle that comes into
5-1 this state under a salvage vehicle certificate of title or other
5-2 comparable certificate of title that has been issued by another
5-3 state or jurisdiction; or
5-4 (C) a motor vehicle for which the evidence of
5-5 ownership is a salvage vehicle certificate of title.
5-6 (15) "Salvage vehicle agent" means a person under a
5-7 license issued by the department that allows the holder of the
5-8 license to acquire, sell, or otherwise deal in salvage motor
5-9 vehicles, nonrepairable motor vehicles, salvage parts, or used
5-10 component parts in this state for a salvage vehicle dealer. The
5-11 term does not include:
5-12 (A) a bona fide employee, officer, director,
5-13 owner, or partner of a salvage vehicle dealer; or
5-14 (B) a person who transports salvage motor
5-15 vehicles or nonrepairable motor vehicles for a salvage vehicle
5-16 dealer or other permissible purchaser of salvage motor vehicles or
5-17 nonrepairable motor vehicles [employed by a licensed salvage
5-18 vehicle dealer to acquire, sell, or otherwise deal in late model
5-19 salvage vehicles or salvage parts in this state].
5-20 (16) "Salvage vehicle certificate of title" means a
5-21 [any] document issued by the department that evidences ownership of
5-22 a salvage motor vehicle.
5-23 (17) "Salvage vehicle dealer" means a person who is
5-24 engaged in this state in the business of acquiring, selling, or
5-25 otherwise dealing in salvage motor vehicles, nonrepairable motor
5-26 vehicles, salvage parts, or used component parts of a motor vehicle
5-27 [or vehicle parts of a type required to be covered by a salvage
6-1 vehicle certificate of title or nonrepairable vehicle certificate
6-2 of title] under a license issued by the department that allows the
6-3 holder of the license to acquire, sell, dismantle, repair, or
6-4 otherwise deal in salvage motor vehicles or nonrepairable motor
6-5 vehicles, salvage parts, or used component parts.
6-6 (18) "Salvage pool operator" means a salvage vehicle
6-7 dealer [person] who engages in the business of selling at auction,
6-8 including wholesale auction, or otherwise, nonrepairable motor
6-9 vehicles, [or] salvage motor vehicles, motor vehicles covered
6-10 under a certificate of authority, motor vehicles covered under a
6-11 salvage certificate, or motor vehicles that have been declared a
6-12 total loss claim by an insurance company [at auction, including
6-13 wholesale auction, or otherwise].
6-14 (19) "Salvage vehicle record" means the record of
6-15 sales and purchases for each salvage motor vehicle, nonrepairable
6-16 motor vehicle, motor vehicle covered under a certificate of
6-17 authority, or motor vehicle covered under a salvage certificate
6-18 handled by a salvage vehicle dealer.
6-19 (20) "Other negotiable evidence of ownership" means a
6-20 document other than a Texas certificate of title or a salvage
6-21 certificate of title that relates to a motor vehicle and that the
6-22 department considers sufficient to support issuance of a Texas
6-23 certificate of title for the vehicle.
6-24 (21) "Estimated repair cost" for purposes of this
6-25 article means:
6-26 (A) the estimated cost of repair parts
6-27 determined by using a manual of repair costs or other instrument
7-1 that is generally recognized and commonly used in the motor vehicle
7-2 insurance industry to determine those costs or an estimate of the
7-3 actual cost of the repair parts; and
7-4 (B) the estimated labor costs computed by using
7-5 the hourly rate and time allocations that are reasonable and
7-6 commonly assessed in the repair industry in the community in which
7-7 the repairs are performed.
7-8 (22) "Salvage certificate" means a negotiable
7-9 document:
7-10 (A) that evidences ownership of a motor vehicle
7-11 issued by the department as a receipt for a certificate of title
7-12 that has been voluntarily surrendered to the department by the
7-13 owner of:
7-14 (i) an older model motor vehicle;
7-15 (ii) a late model motor vehicle that does
7-16 not meet the criteria specified by Subdivision (14)(A) of this
7-17 section; or
7-18 (iii) is not a nonrepairable motor
7-19 vehicle, salvage motor vehicle, or motor vehicle for which a
7-20 certificate of authority has been issued; and
7-21 (B) pursuant to which a person may not offer to
7-22 sell or sell, offer to transfer or transfer, or offer to release or
7-23 release the motor vehicle.
7-24 (23) "Salvage vehicle rebuilder" means a person who
7-25 acquires and repairs, for operation on a public highway, five or
7-26 more salvage motor vehicles, or motor vehicles covered under a
7-27 salvage certificate, in any calendar year.
8-1 (24) "Certificate of authority" means a certificate of
8-2 authority to dispose of a vehicle issued under Section 683.054,
8-3 Transportation Code.
8-4 (25) "Insurance company" means:
8-5 (A) an insurance company or other person
8-6 authorized to write motor vehicle insurance in this state; or
8-7 (B) an insurance company or other person
8-8 authorized to write motor vehicle insurance in another state that
8-9 pays a loss claim for a motor vehicle in this state.
8-10 (26) "Used component part" means the following parts
8-11 of a used motor vehicle or a new motor vehicle:
8-12 (A) the front end assembly or tail section of a
8-13 motor vehicle;
8-14 (B) the cab of a truck (light or heavy);
8-15 (C) the bed of a one ton or lighter truck;
8-16 (D) an interior component part of a motor
8-17 vehicle;
8-18 (E) a special accessory part; or
8-19 (F) a vehicle part that contains or should
8-20 contain a federal safety sticker, a motor number, a serial number,
8-21 a manufacturer's permanent vehicle identification number, or a
8-22 derivative of a vehicle identification number.
8-23 (27) "Front end assembly" means the hood, right or
8-24 left front fender, grill, bumper, radiator, or radiator support, if
8-25 two or more such parts are assembled together as one unit.
8-26 (28) "Tail section" means the roof, floor pan, right
8-27 or left rear quarter panel, deck lid, or rear bumper, if two or
9-1 more of such parts are assembled together as one unit.
9-2 (29) "Federal safety sticker" means a sticker, label,
9-3 or tag required by 49 U.S.C. Section 30115 or rules adopted under
9-4 that section.
9-5 (30) "Interior component part" means the front or rear
9-6 seat or radio of a motor vehicle.
9-7 (31) "Special accessory part" means the tire, wheel,
9-8 tailgate, or removable glass top of a motor vehicle.
9-9 SECTION 2. Section 2.01, Article 6687-1a, Revised Statutes,
9-10 is amended by amending Subsections (a), (g), and (h) and by adding
9-11 Subsections (i), (j), (k), (l), and (m) to read as follows:
9-12 (a) A person may not act as a [an automobile recycler or]
9-13 salvage vehicle dealer, including storing or displaying vehicles as
9-14 an agent or escrow agent of an insurance company, unless the person
9-15 holds a salvage vehicle dealer license issued under this article.
9-16 (g) Except as otherwise provided by this subsection, this
9-17 article does not apply to a person who purchases a nonrepairable
9-18 motor vehicle, a [or] salvage motor vehicle, a motor vehicle
9-19 covered under a salvage certificate, or a motor vehicle covered
9-20 under a certificate of authority from a salvage vehicle dealer
9-21 [pool operator] in a casual sale. The commission shall adopt
9-22 rules as necessary to regulate casual sales and to enforce this
9-23 subsection. A salvage vehicle dealer [pool operator] that sells a
9-24 vehicle in a casual sale shall comply with each rule adopted by
9-25 the commission regarding that sale.
9-26 (h) This article does not prohibit the sale to any person of
9-27 a motor vehicle that is classified as a [late model] salvage motor
10-1 vehicle or a nonrepairable motor vehicle solely because of hail
10-2 damage or solely because of water damage caused by flood
10-3 conditions.
10-4 (i) This article does not prohibit the sale of a motor
10-5 vehicle that has been issued a salvage certificate to any person.
10-6 (j) This section does not apply to a person who:
10-7 (1) acquires from a salvage vehicle dealer fewer than
10-8 five salvage motor vehicles in a calendar year; and
10-9 (2) repairs the vehicles for operation on a public
10-10 highway.
10-11 (k) This section does not apply to an out-of-state buyer.
10-12 (l) This article does not prohibit a salvage vehicle dealer
10-13 or a salvage vehicle agent from offering to sell or selling,
10-14 offering to transfer or transferring, or offering to release or
10-15 releasing a salvage motor vehicle, a nonrepairable motor vehicle, a
10-16 vehicle covered under a salvage certificate, or a vehicle covered
10-17 under a certificate of authority to any person.
10-18 (m) This article does not prohibit a salvage pool operator
10-19 who holds a salvage vehicle dealer license under this section from
10-20 offering to sell or selling, offering to transfer or transferring,
10-21 or offering to release or releasing a salvage motor vehicle, a
10-22 nonrepairable motor vehicle, a motor vehicle covered under a
10-23 salvage certificate, or a motor vehicle covered under a certificate
10-24 of authority to any person.
10-25 SECTION 3. Section 2.02(a), Article 6687-1a, Revised
10-26 Statutes, is amended to read as follows:
10-27 (a) An applicant for a salvage vehicle dealer license must
11-1 apply on a form prescribed by the department. The application form
11-2 must be signed by the applicant and accompanied by the application
11-3 fee. The application must include:
11-4 (1) the name, business address, and business telephone
11-5 number of the applicant;
11-6 (2) the name under which the applicant will do
11-7 business;
11-8 (3) the location, by number, street, and municipality,
11-9 of each office from which the applicant will conduct business;
11-10 (4) a statement indicating whether the applicant has
11-11 previously applied for a license under this article, the result of
11-12 the previous application, and whether the applicant has ever been
11-13 the holder of a license under this article that was revoked or
11-14 suspended;
11-15 (5) an affidavit containing a statement that the
11-16 applicant has never been convicted of a felony or that it has been
11-17 at least one year since the termination of the applicant's
11-18 sentence, parole, mandatory supervision, or probation for a felony
11-19 conviction [a statement of the previous history, record, and
11-20 associations of the applicant to the extent sufficient to
11-21 establish, to the satisfaction of the department, the business
11-22 reputation and character of the applicant];
11-23 (6) the applicant's federal tax identification number,
11-24 if any;
11-25 (7) the applicant's state sales tax number; and
11-26 (8) other information as required by rules adopted
11-27 under this article.
12-1 SECTION 4. Sections 2.03(a) and (b), Article 6687-1a,
12-2 Revised Statutes, are amended to read as follows:
12-3 (a) If a salvage vehicle dealer license applicant intends to
12-4 engage in business through a corporation, the license application
12-5 must include, in addition to the information required under Section
12-6 2.02 of this article:
12-7 (1) the state of incorporation;
12-8 (2) the name, address, date of birth, and social
12-9 security number of each of the principal officers and directors of
12-10 the corporation;
12-11 (3) an affidavit containing a statement that the
12-12 applicant has never been convicted of a felony or that it has been
12-13 at least one year since the termination of the applicant's
12-14 sentence, parole, mandatory supervision, or probation for a felony
12-15 conviction [a statement of the previous history, record, and
12-16 associations of each officer and director to the extent sufficient
12-17 to establish, to the satisfaction of the department, the business
12-18 reputation and character of the applicant]; and
12-19 (4) a statement showing whether an employee, officer,
12-20 or director has been refused a license as a salvage vehicle dealer
12-21 or has been the holder of a license that was revoked or suspended.
12-22 (b) If the license applicant intends to engage in business
12-23 through a partnership, the license application must include, in
12-24 addition to the information required under Section 2.02 of this
12-25 article:
12-26 (1) the name, address, date of birth, and social
12-27 security number of each owner or partner;
13-1 (2) an affidavit containing a statement that the
13-2 applicant has never been convicted of a felony or that it has been
13-3 at least one year since the termination of the applicant's
13-4 sentence, parole, mandatory supervision, or probation for felony
13-5 conviction [a statement of the previous history, record, and
13-6 associations of each owner and partner to the extent sufficient to
13-7 establish, to the satisfaction of the department, the business
13-8 reputation and character of the applicant]; and
13-9 (3) a statement showing whether a partner, owner, or
13-10 employee has been refused a license as a salvage vehicle dealer or
13-11 has been the holder of a license that was revoked or suspended.
13-12 SECTION 5. Section 2.06, Article 6687-1a, Revised Statutes,
13-13 is amended to read as follows:
13-14 Sec. 2.06. LICENSE ISSUANCE. The department shall issue a
13-15 license to an applicant who meets the license qualifications
13-16 adopted under this article and pays the required fees unless the
13-17 department determines that:
13-18 (1) the applicant knowingly supplied false or
13-19 incomplete information on the application; or
13-20 (2) it has not been at least one year since the
13-21 termination of the applicant's sentence, parole, mandatory
13-22 supervision, or probation for a felony conviction.
13-23 SECTION 6. Section 2.08(a), Article 6687-1a, Revised
13-24 Statutes, is amended to read as follows:
13-25 (a) A salvage vehicle dealer may operate at more than one
13-26 location in the same county under the same salvage vehicle dealer
13-27 license. A license applicant who intends to operate as a salvage
14-1 vehicle dealer at more than one location must list in the
14-2 application each location at which business is to be conducted.
14-3 SECTION 7. Sections 3.01(a) and (b), Article 6687-1a,
14-4 Revised Statutes, are amended to read as follows:
14-5 (a) If a salvage vehicle dealer acquires ownership of a
14-6 [late model] salvage motor vehicle or a nonrepairable motor vehicle
14-7 from an owner, the dealer must receive an assigned certificate of
14-8 title. If the assigned certificate of title is not a salvage
14-9 vehicle certificate of title, a nonrepairable vehicle certificate
14-10 of title, a certificate of authority, or comparable ownership
14-11 document issued by another state or jurisdiction, the [licensed]
14-12 salvage vehicle dealer shall, not later than the 10th day after the
14-13 date of receipt of the title, surrender the assigned certificate of
14-14 title that shows there are no liens on the vehicle, or that all
14-15 recorded liens have been released, to the department and apply for
14-16 a salvage vehicle certificate of title, [or] a nonrepairable
14-17 vehicle certificate of title, or a certificate of authority, as
14-18 appropriate.
14-19 (b) If a motor [late model salvage] vehicle [or
14-20 nonrepairable vehicle] is to be dismantled, scrapped, or
14-21 destroyed, the salvage vehicle dealer shall surrender an assigned
14-22 certificate of title that shows there are no liens on the vehicle
14-23 or that all recorded liens have been released, salvage vehicle
14-24 certificate of title, salvage certificate, nonrepairable vehicle
14-25 certificate of title, certificate of authority, other negotiable
14-26 evidence of ownership, or comparable ownership document issued by
14-27 another state or jurisdiction to the department in the manner
15-1 prescribed by the department before the 31st day after the date the
15-2 dealer acquires the vehicle [not later than the 30th day after the
15-3 date the vehicle is acquired] and report to the department that the
15-4 vehicle is or will be [was] dismantled, scrapped, or destroyed.
15-5 SECTION 8. Sections 3.02, 3.03, and 3.04, Article 6687-1a,
15-6 Revised Statutes, are amended to read as follows:
15-7 Sec. 3.02. RECORDS. Each holder of a salvage vehicle dealer
15-8 license shall maintain records of each salvage motor vehicle, a
15-9 motor vehicle covered under a salvage certificate, a nonrepairable
15-10 motor vehicle, a certificate of authority, a certificate of title,
15-11 other negotiable evidence of ownership, or comparable ownership
15-12 document issued by another state or jurisdiction and any salvage
15-13 parts purchased by or delivered to the license holder unless
15-14 exempted by Section 1(d), Chapter 506, Acts of the 57th
15-15 Legislature, Regular Session, 1961 (Article 6687-2, Vernon's Texas
15-16 Civil Statutes), and shall maintain sales records as required by
15-17 this article.
15-18 Sec. 3.03. AUTHORIZED SALE. (a) The owner of a salvage
15-19 motor vehicle or a nonrepairable motor vehicle, other than a
15-20 salvage vehicle dealer, and other than an owner selling the salvage
15-21 motor vehicle through a salvage vehicle dealer that has been issued
15-22 a salvage vehicle certificate of title, a nonrepairable certificate
15-23 of title, a certificate of authority, or comparable ownership
15-24 document issued by another state or jurisdiction may sell the
15-25 vehicle only to:
15-26 (1) a salvage vehicle dealer in this state;
15-27 (2) a buyer at a casual sale;
16-1 (3) a person described by Subsection (g), Article
16-2 6687-2b, Revised Statutes; or
16-3 (4) an out-of-state buyer.
16-4 (b) Except as otherwise provided by this article, this
16-5 article does not prohibit a salvage vehicle dealer or a salvage
16-6 vehicle agent from offering to sell or selling, offering to
16-7 transfer or transferring, or offering to release or releasing, a
16-8 salvage motor vehicle, a nonrepairable motor vehicle, a motor
16-9 vehicle covered under a certificate of authority, a motor vehicle
16-10 covered under a salvage certificate, salvage parts, or used
16-11 component parts to any person. [A person may not sell, transfer,
16-12 or release a late model salvage vehicle or a nonrepairable motor
16-13 vehicle to anyone other than:]
16-14 [(1) a governmental entity;]
16-15 [(2) the vehicle's former owner;]
16-16 [(3) a licensed salvage vehicle dealer;]
16-17 [(4) an out-of-state buyer;]
16-18 [(5) a buyer in a casual sale at auction; or]
16-19 [(6) a person described by Subsection (g), Article
16-20 6687-2b, Revised Statutes.]
16-21 Sec. 3.04. AGENTS. The holder of a salvage vehicle dealer
16-22 license may authorize other [not more than five] persons to
16-23 operate as salvage vehicle agents under the dealer's license. An
16-24 agent may acquire, sell, or otherwise deal in [late model] salvage
16-25 motor vehicles, nonrepairable motor vehicles, motor vehicles
16-26 covered under a certificate of authority, [or] salvage parts, or
16-27 used component parts as directed by the dealer. An agent
17-1 authorized to operate under this section is entitled to a salvage
17-2 vehicle agent license on application to the department and payment
17-3 of the required fee.
17-4 SECTION 9. Section 4.02(d), Article 6687-1a, Revised
17-5 Statutes, is amended to read as follows:
17-6 (d) The first [An] offense under this section is a Class C
17-7 [A] misdemeanor. Any subsequent offense of the same provision of
17-8 this section is a Class A misdemeanor except as provided by Section
17-9 1(i) or (j), Chapter 506, Acts of the 57th Legislature, Regular
17-10 Session, 1961 (Article 6687-2, Vernon's Texas Civil Statutes).
17-11 SECTION 10. Sections 1(a)(2) and (8), Chapter 506, Acts of
17-12 the 57th Legislature, Regular Session, 1961 (Article 6687-2,
17-13 Vernon's Texas Civil Statutes), are amended to read as follows:
17-14 (2) "Used component [Component] part" means the
17-15 following parts of a used motor vehicle:
17-16 (A) the front end assembly or tail section of a
17-17 motor vehicle;
17-18 (B) [,] the cab of a truck (light or heavy);
17-19 (C) [,] the bed of a one ton or lighter truck;
17-20 (D) [,] an interior component part of a motor
17-21 vehicle;
17-22 (E) [,] a special accessory part; [,] or
17-23 (F) a vehicle part that contains or should
17-24 contain a federal safety sticker, motor number, serial number,
17-25 manufacturer's permanent vehicle identification number, or a
17-26 derivative of a vehicle identification number.
17-27 (8) "Motor vehicle" has the meaning assigned [given]
18-1 by Section 501.002, Transportation Code [Subsection (b), Section
18-2 2, Uniform Act Regulating Traffic on Highways (Article 6701d,
18-3 Vernon's Texas Civil Statutes)].
18-4 SECTION 11. Sections 1(b), (e), (f), and (h)-(o), Chapter
18-5 506, Acts of the 57th Legislature, Regular Session, 1961 (Article
18-6 6687-2, Vernon's Texas Civil Statutes), are amended to read as
18-7 follows:
18-8 (b)(1) A salvage vehicle dealer [with an endorsement as a
18-9 used vehicle parts dealer] may not receive a motor vehicle unless
18-10 the dealer first obtains a certificate of title that shows there
18-11 are no liens on the vehicle or that all recorded liens have been
18-12 released for the vehicle, a salvage vehicle certificate of title, a
18-13 salvage certificate, a nonrepairable vehicle certificate of title,
18-14 a certificate of authority, a sales receipt, evidence of right to
18-15 possess or transfer document, or a comparable ownership document
18-16 issued by another state or jurisdiction [under Sections 5.04 and
18-17 5.10, respectively, Chapter 683, Transportation Code, or a
18-18 Certificate of Title showing that there are no liens on the vehicle
18-19 or that all recorded liens have been released].
18-20 (2) Within 10 days of receipt or before the sale or
18-21 transfer [On receipt] of a motor vehicle, whichever date occurs
18-22 first, a motor vehicle that has been issued a salvage vehicle
18-23 certificate of title, a salvage certificate, a nonrepairable
18-24 vehicle certificate of title, or a certificate of authority, or a
18-25 motor vehicle covered under a comparable ownership document issued
18-26 by another state or jurisdiction [vehicle], a salvage vehicle
18-27 dealer shall [immediately] remove any unexpired windshield
19-1 validation sticker or render the sticker unusable and remove any
19-2 unexpired license plates that do not require a windshield
19-3 validation sticker to be valid from the motor vehicle. Any
19-4 unexpired license plates that do not require a windshield
19-5 validation sticker to be valid shall be placed [and place them] in
19-6 a secure, locked place. An inventory list of such plates showing
19-7 the license number, the make, the motor number, and the vehicle
19-8 identification number of the motor vehicle from which such plates
19-9 were removed shall be maintained on forms to be furnished by the
19-10 Texas Department of Transportation.
19-11 (3) Upon demand and if required, the assigned
19-12 certificate of title that shows there are no liens on the vehicle
19-13 or that all recorded liens have been released for the vehicle, the
19-14 salvage certificate of title, the salvage certificate, the
19-15 nonrepairable vehicle certificate of title, the certificate of
19-16 authority, the other negotiable evidence of ownership, or the
19-17 comparable ownership document issued by another state or
19-18 jurisdiction [Certificate of Title or authority], the sales
19-19 receipt, or transfer document, the license plates, and inventory
19-20 lists shall be surrendered to the Texas Department of
19-21 Transportation for cancellation. [It is further provided that all
19-22 Certificates of Title covering such motor vehicles shall, if
19-23 required, be surrendered to the Texas Department of Transportation
19-24 for cancellation.] It shall thereafter be the duty of the Texas
19-25 Department of Transportation to furnish a [signed] receipt on a
19-26 prescribed form for the surrendered license plates, certificates of
19-27 title that show there are no liens on the vehicle or that all
20-1 recorded liens have been released for the vehicle, salvage vehicle
20-2 certificates of title, salvage certificates, nonrepairable vehicle
20-3 certificates of title, certificates of authority, other negotiable
20-4 evidence of ownership, or comparable ownership documents issued by
20-5 another state or jurisdiction [and Certificates of Title].
20-6 (4) This subsection does not require a salvage vehicle
20-7 dealer who owns or receives a motor vehicle that has been issued a
20-8 salvage vehicle certificate of title, a nonrepairable vehicle
20-9 certificate of title, a comparable ownership document issued by
20-10 another state or jurisdiction, a salvage certificate, a certificate
20-11 of authority, or a certificate of title to a vehicle that is not a
20-12 salvage motor vehicle or nonrepairable motor vehicle to surrender
20-13 the ownership document to the department unless the dealer
20-14 dismantles, scraps, or destroys the vehicle.
20-15 (e) In lieu of the requirements contained in Subsection (c)
20-16 of this section, a salvage vehicle dealer may record the name and
20-17 salvage vehicle dealer license number or the name and salvage
20-18 vehicle agent license number, and if the salvage vehicle dealer
20-19 license number is in the name of a business, then the name and
20-20 salvage vehicle dealer license assigned to that [of the] business
20-21 that the motor vehicle or motor vehicle part is purchased from
20-22 and, if applicable, the Texas Certificate of Inventory number or
20-23 federal taxpayer identification number.
20-24 (f) A salvage vehicle dealer shall keep all records required
20-25 to be kept by this article on a form prescribed or approved by the
20-26 Texas Department of Transportation and the salvage vehicle dealer
20-27 shall maintain a copy of each record for one year after the date of
21-1 sale or disposal of the item. On demand of a peace officer or an
21-2 employee of the Texas Department of Transportation, the salvage
21-3 vehicle dealer or designated employee shall give a copy of a record
21-4 to the officer or employee of the department. The salvage vehicle
21-5 dealer or a designated employee of the salvage vehicle dealer[, and
21-6 he] shall allow an inspection of the inventory, premises, required
21-7 inventory records and affidavit bills of sale of the salvage
21-8 vehicle dealer by a peace officer or an employee of the Texas
21-9 Department of Transportation at any reasonable time during normal
21-10 business hours[. A peace officer may inspect the inventory on the
21-11 premises of the salvage vehicle dealer at any reasonable time] in
21-12 order to verify, check, or audit the records.
21-13 (1) A salvage vehicle dealer or a designated [an]
21-14 employee of the dealer shall allow and shall not interfere with a
21-15 full and complete inspection by a peace officer or an employee of
21-16 the Texas Department of Transportation of the inventory, premises,
21-17 [and] inventory records of the dealer, and affidavit bills of sale
21-18 of the salvage vehicle dealer.
21-19 (2) A salvage vehicle dealer shall designate an
21-20 employee or employees, who in the absence of the salvage vehicle
21-21 dealer shall comply with an inspection of the inventory, premises,
21-22 and inventory records of the dealer under this section. A list of
21-23 the designated employee or employees shall be in writing and made
21-24 available to the person conducting the inspection.
21-25 (3) Normal business hours shall be the times that the
21-26 salvage vehicle dealer's place of business as listed on the salvage
21-27 vehicle dealer's license is open to the public, salvage vehicle
22-1 dealers, salvage vehicle agents, or out-of-state buyers for the
22-2 purpose of sales and purchases.
22-3 (4) A salvage vehicle dealer may, upon the request of
22-4 a peace officer or employee of the department, allow an inspection
22-5 under this section at times other than normal business hours with
22-6 the consent and at the sole discretion of the salvage vehicle
22-7 dealer.
22-8 (h) [A salvage vehicle dealer shall keep a record required
22-9 to be kept by this section on a form prescribed by the Texas
22-10 Department of Transportation. The dealer shall maintain two copies
22-11 of each record for one year after the date of sale or disposal of
22-12 the item. On demand of a peace officer, the dealer shall give a
22-13 copy of a record to the officer.]
22-14 [(i) The Texas Department of Transportation shall:]
22-15 [(1) prescribe the form to be used as required by
22-16 Subsection (c) of this section; and]
22-17 [(2) make the form available to salvage vehicle
22-18 dealers.]
22-19 [(j) A salvage vehicle dealer or an employee of the dealer
22-20 shall allow an inspection of the dealer's required inventory
22-21 records and affidavit bills of sale by a peace officer at any
22-22 reasonable time. A peace officer may inspect the inventory on the
22-23 premises of the dealer at any reasonable time in order to verify,
22-24 check, or audit the records. The dealer or the employee shall
22-25 allow and shall not interfere with a full and complete inspection
22-26 by a peace officer of the inventory, premises, and required
22-27 inventory records and affidavit bills of sale of the dealer.]
23-1 [(k)] A peace officer may seize, hold, and dispose of
23-2 according to the Code of Criminal Procedure a motor vehicle or part
23-3 thereof which has been stolen or which has been altered so as to
23-4 remove, change, mutilate, or obliterate a permanent vehicle
23-5 identification number, derivative number, motor number, serial
23-6 number, or federal safety sticker.
23-7 (i) [(l)] Except as provided by Subsections (j) and (k) [(m)
23-8 and (o)] of this section, a person who fails to comply with any
23-9 provision of this section or violates a provision or rule of this
23-10 section commits a [Class A] misdemeanor. A first offense under
23-11 this subsection is a Class C misdemeanor. A subsequent offense of
23-12 the same provision of this section or the same rule is a Class A
23-13 misdemeanor.
23-14 (j) [(m)] A person commits an offense if the person commits
23-15 theft as defined by Section 31.03, Penal Code, and the person fails
23-16 to comply with any provision of this section or violates a
23-17 provision of this section in conjunction with the commission of the
23-18 theft.
23-19 (k) [(n) Except as provided by Subsection (o) of this
23-20 section, an offense under Subsection (m) of this section is a Class
23-21 A misdemeanor.]
23-22 [(o)] If it is shown on the trial of an offense under
23-23 Subsection (j) [(m)] of this section that the defendant has
23-24 previously been convicted of an offense under that subsection, the
23-25 offense is punishable as a felony of the third degree.
23-26 SECTION 12. Subsection (a), Article 6687-2a, Revised
23-27 Statutes, is amended to read as follows:
24-1 (a) If a salvage vehicle dealer or an employee of the dealer
24-2 acting in the course of his employment is convicted of more than
24-3 one offense under Subsection (j), Section 1, Chapter 506, Acts of
24-4 the 57th Legislature, Regular Session, 1961 (Article 6687-2,
24-5 Vernon's Texas Civil Statutes), a district attorney of the county
24-6 in which the dealer's salvage business is located may bring an
24-7 action in the county to enjoin the dealer's business operations.
24-8 The proceedings must be brought in the name of the state.
24-9 SECTION 13. Section 2.04, Article 6687-1a, Revised Statutes,
24-10 is repealed.
24-11 SECTION 14. (a) This Act takes effect September 1, 1997.
24-12 The changes in law made by this Act apply only to an offense
24-13 committed on or after September 1, 1997. An offense committed
24-14 before September 1, 1997, is covered by the law in effect when the
24-15 offense was committed, and the former law is continued in effect
24-16 for that purpose. For purposes of this section, an offense was
24-17 committed before September 1, 1997, if any element of the offense
24-18 occurred before that date.
24-19 (b) This Act takes effect only if ___ B. No. ____, Acts of
24-20 the 75th Legislature, Regular Session, 1997, is enacted and becomes
24-21 law. If ____ B. No. ____ does not become law, this Act has no
24-22 effect.
24-23 SECTION 15. The importance of this legislation and the
24-24 crowded condition of the calendars in both houses create an
24-25 emergency and an imperative public necessity that the
24-26 constitutional rule requiring bills to be read on three several
24-27 days in each house be suspended, and this rule is hereby suspended.