84R4262 TSR-F

By: Walle H.B. No. 1788

A BILL TO BE ENTITLED

AN ACT

relating to the regulation of salvage vehicle dealers, salvage pool operators, and salvage vehicle rebuilders; expanding the applicability of an occupational license.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 375.001(11), Health and Safety Code, is amended to read as follows:

(11) "Vehicle recycler" means a person engaged in the business of acquiring, dismantling, or preparing for recycling six or more end-of-life vehicles in a calendar year for the primary purpose of reselling the vehicles' parts. The term includes a license holder [salvage vehicle dealer licensed] under Chapter 2302, Occupations Code, and a used automotive parts recycler licensed under Chapter 2309, Occupations Code.

SECTION 2. The heading to Chapter 2302, Occupations Code, is amended to read as follows:

CHAPTER 2302. SALVAGE VEHICLE DEALERS, SALVAGE POOL OPERATORS, AND

SALVAGE VEHICLE REBUILDERS

SECTION 3. Section 2302.001, Occupations Code, is amended by amending Subdivision (1) and adding Subdivisions (4-a), (4-b), (4-c), (7), (8), and (9) to read as follows:

(1) "Casual sale," "damage," "insurance company," "major component part," ["metal recycler," "motor vehicle,"] "nonrepairable motor vehicle," "nonrepairable vehicle title," "out-of-state buyer," "salvage motor vehicle," "salvage vehicle title," ["salvage vehicle dealer,"] and "used part" have the meanings assigned by Section 501.091, Transportation Code.

(4-a) "License holder" means a person who holds a license as a salvage vehicle dealer, salvage pool operator, or salvage vehicle rebuilder issued under this chapter.

(4-b) "Metal recycler" means a person who:

(A) is engaged in the business of obtaining, converting, or selling ferrous or nonferrous metal for conversion into raw material products consisting of prepared grades and having an existing or potential economic value;

(B) has a facility to convert ferrous or nonferrous metal into raw material products by a method other than the exclusive use of hand tools, including the processing, sorting, cutting, classifying, cleaning, baling, wrapping, shredding, shearing, or changing the physical form or chemical content of the metal; and

(C) sells or purchases the ferrous or nonferrous metal solely for use as raw material in the production of new products.

(4-c) "Motor vehicle" has the meaning assigned by Section 501.002, Transportation Code.

(7) "Salvage vehicle dealer" means a person engaged in this state in the business of acquiring, selling, or otherwise dealing in nonrepairable motor vehicles, salvage motor vehicles, or, if incidental to a salvage vehicle dealer's primary business, used automotive parts, regardless of whether the person holds a license to engage in that business. The term does not include a person who:

(A) buys not more than five nonrepairable motor vehicles or salvage motor vehicles in the same calendar year;

(B) is a licensed used automotive parts recycler;

(C) is a licensed salvage vehicle rebuilder; or

(D) is a licensed salvage pool operator.

(8) "Salvage vehicle rebuilder" means a person who acquires and repairs, rebuilds, or reconstructs for operation on a public highway more than five salvage motor vehicles in a calendar year. The term includes a person who repairs, rebuilds, or reconstructs for operation on a public highway more than five salvage motor vehicles in a calendar year that are acquired by another person and returned to that person after the repair, rebuilding, or reconstruction.

(9) "Used parts dealer" and "used automotive parts recycler" have the meaning assigned to "used automotive parts recycler" by Section 2309.002.

SECTION 4. Sections 2302.0015(b) and (c), Occupations Code, are amended to read as follows:

(b) For the purpose of enforcing or administering this chapter, [or] Chapter 501 or 502, Transportation Code, or board rules, a member of the board, an employee or agent of the board or department, a member of the Public Safety Commission, an officer of the Department of Public Safety, or a peace officer may at a reasonable time:

(1) enter the premises of a business regulated under one of those chapters; [and]

(2) inspect or copy any document, record, vehicle, part, or other item regulated under one of those chapters; and

(3) inspect the inventory on the premises of a license holder.

(c) A person described by Subsection (a) or an employee of a person described by Subsection (a):

(1) may not refuse or interfere with an entry or inspection under this section; [and]

(2) shall cooperate fully with a person conducting an inspection under this section to assist in the recovery of stolen motor vehicles and parts and to prevent the sale or transfer of stolen motor vehicles and parts; and

(3) on demand shall give to a person conducting an inspection under this section a copy of a record required to be maintained under this chapter, Chapter 501 or 502, Transportation Code, or board rule, including an inventory record or bill of sale.

SECTION 5. Section 2302.005, Occupations Code, is amended to read as follows:

Sec. 2302.005. APPLICABILITY OF CERTAIN STATUTES, RULES, MUNICIPAL ORDINANCES, [LICENSES,] AND COUNTY ORDERS [PERMITS]. A [This chapter:

[(1) is in addition to any municipal ordinance relating to the regulation of a] person who deals in nonrepairable motor vehicles or salvage motor vehicles, including a salvage vehicle dealer, salvage pool operator, salvage vehicle rebuilder, or salvage vehicle agent, shall comply with:

(1) this chapter;

(2) Chapters 501, 502, and, if applicable, 503, Transportation Code;

(3) board rules;

(4) all applicable county orders [or used parts]; and

(5) all applicable municipal ordinances

[(2) does not prohibit the enforcement of a requirement of a municipal license or permit that is related to an activity regulated under this chapter].

SECTION 6. Subchapter B, Chapter 2302, Occupations Code, is amended by adding Section 2302.0521 to read as follows:

Sec. 2302.0521. DEPOSIT OF REVENUE. Notwithstanding any other law, all money collected by the board under this chapter shall be deposited in the state treasury to the credit of the Texas Department of Motor Vehicles.

SECTION 7. Section 2302.101, Occupations Code, is amended to read as follows:

Sec. 2302.101. LICENSE REQUIRED [FOR SALVAGE VEHICLE DEALER]. Unless a person holds a [salvage vehicle dealer] license issued under this chapter, the person may not:

(1) act as a salvage vehicle dealer, salvage pool operator, or salvage vehicle rebuilder; or

(2) store or display a motor vehicle as an agent or escrow agent of an insurance company.

SECTION 8. Section 2302.102, Occupations Code, is amended to read as follows:

Sec. 2302.102. [SALVAGE VEHICLE DEALER] LICENSE TYPES [CLASSIFICATION]. (a) The department may issue one or more of the following licenses to a person [shall classify a salvage vehicle dealer] according to the type of activity performed by the person:

(1) salvage vehicle dealer license;

(2) salvage pool operator license; or

(3) salvage vehicle rebuilder license [dealer].

(b) A person [salvage vehicle dealer] may not engage in activities as a salvage vehicle dealer, salvage pool operator, or salvage vehicle rebuilder [of a particular classification] unless the person [dealer] holds a license issued by the department authorizing that activity [with an endorsement in that classification].

(c) A person who engages in business as a salvage vehicle rebuilder and holds a salvage vehicle rebuilder license must also hold the appropriate general distinguishing number issued under Chapter 503, Transportation Code, unless the salvage vehicle rebuilder only repairs, rebuilds, or reconstructs salvage motor vehicles owned by another person.

SECTION 9. Section 2302.103(a), Occupations Code, is amended to read as follows:

(a) To apply for a salvage vehicle dealer, salvage pool operator, or salvage vehicle rebuilder license, a person must submit to the department an application on a form prescribed by the department and the application fee.

SECTION 10. Section 2302.104, Occupations Code, is amended to read as follows:

Sec. 2302.104. CONTENTS OF APPLICATION. (a) An application for a [salvage vehicle dealer] license must include:

(1) the name, business address, e-mail address, and business telephone number of the applicant;

(2) each [the] name under which the applicant proposes to conduct business;

(3) the location, by number, street, county, and municipality, where [of each office at which] the applicant proposes to conduct business;

(4) a statement indicating whether the applicant previously applied for a license under this chapter and, if so, a statement indicating the result of the previous application and indicating whether the applicant has ever been the holder of a license issued under this chapter that was revoked or suspended;

(5) an acknowledgment that the applicant is familiar with and in compliance with municipal ordinances, county orders, and state laws governing the activities covered by the license for which the applicant is applying at the location specified in the application [a statement of the previous history, record, and associations of the applicant to the extent sufficient to establish, to the satisfaction of the department, the business reputation and character of the applicant];

(6) the applicant's social security number and federal tax identification number, if any;

(7) the applicant's state sales tax number; and

(8) any other information required by rules adopted under this chapter.

(b) In addition to the information required by Subsection (a), the application of a corporation must include:

(1) the state of its incorporation;

(2) the name, address, date of birth, and social security number of each principal officer or director of the corporation; and

(3) [a statement of the previous history, record, and associations of each officer and each director to the extent sufficient to establish, to the satisfaction of the department, the business reputation and character of the applicant; and

[(4)] a statement showing whether an officer, director, or employee of the applicant has been refused a license under this chapter or a similar license issued by another jurisdiction [as a salvage vehicle dealer] or has been the holder of a license issued under this chapter or a similar license issued by another jurisdiction that was revoked or suspended.

(c) In addition to the information required by Subsection (a), the application of a partnership must include:

(1) the name, address, date of birth, and social security number of each owner or partner; and

(2) [a statement of the previous history, record, and associations of each owner and each partner to the extent sufficient to establish, to the satisfaction of the department, the business reputation and character of the applicant; and

[(3)] a statement showing whether an owner, partner, or employee of the applicant has been refused a license under this chapter or a similar license issued by another jurisdiction [as a salvage vehicle dealer] or has been the holder of a license issued under this chapter or a similar license issued by another jurisdiction that was revoked or suspended.

SECTION 11. The heading to Section 2302.105, Occupations Code, is amended to read as follows:

Sec. 2302.105. REVIEW OF APPLICATION [DEPARTMENT INVESTIGATION].

SECTION 12. Section 2302.105(a), Occupations Code, is amended to read as follows:

(a) The department shall review an application for the issuance or renewal of or an amendment to a license issued under this chapter and may investigate the applicant to determine compliance with this chapter, board rules, and if applicable, Chapter 503, Transportation Code [not issue a license under this chapter until the department completes an investigation of the applicant's qualifications].

SECTION 13. Section 2302.106(a), Occupations Code, is amended to read as follows:

(a) The department shall issue a license to an applicant who meets the license qualifications adopted under this chapter and pays the required fee [fees].

SECTION 14. Sections 2302.107(b), (c), and (d), Occupations Code, are amended to read as follows:

(b) A person is entitled to a salvage vehicle agent license on application to the department, payment of the required fee, and authorization from a salvage vehicle dealer to operate under the salvage vehicle dealer's license.

(c) A salvage vehicle dealer may authorize not more than five persons to operate as salvage vehicle agents under the salvage vehicle dealer's license.

(d) A salvage vehicle agent may acquire, sell, or otherwise deal in [,] nonrepairable or salvage motor vehicles as directed by the authorizing salvage vehicle dealer.

SECTION 15. Section 2302.108, Occupations Code, is amended by adding Subsection (e) to read as follows:

(e) The board may take disciplinary action against a salvage vehicle dealer for an act or omission of a salvage vehicle agent that was authorized by the salvage vehicle dealer or a person acting as a representative of the salvage vehicle dealer and that is grounds for the denial, revocation, or suspension of a salvage vehicle dealer's license.

SECTION 16. The heading to Subchapter D, Chapter 2302, Occupations Code, is amended to read as follows:

SUBCHAPTER D. LICENSE TERM, EXPIRATION, AND RENEWAL

SECTION 17. Section 2302.151, Occupations Code, is amended to read as follows:

Sec. 2302.151. LICENSE TERM AND EXPIRATION. (a) A license issued under this chapter is valid for the period prescribed by the board [expires on the first anniversary of the date of issuance].

(b) The department may issue a license for a term of less than the period prescribed under Subsection (a) to coordinate expiration dates of licenses held by a person.

(c) The board by rule may implement a system under which licenses expire on various dates during the year. For a year in which a license expiration date is changed, the fee for the license shall be prorated so that the license holder pays only that portion of the fee that is allocable to the number of months during which the license is valid. On renewal of the license on the new expiration date, the entire license renewal fee is payable.

(d) If the board prescribes the term of a license under this chapter for a period other than one year, the board shall prorate the applicable annual fee required under this chapter as necessary to reflect the term of the license.

(e) A person whose license has expired may not engage in the activities that require a license until the license has been renewed under this subchapter.

SECTION 18. Section 2302.152, Occupations Code, is amended to read as follows:

Sec. 2302.152. NOTICE OF EXPIRATION. Not later than the 31st day before the expiration date of a person's license, the department shall send [written] notice of the impending expiration to the person at the person's last known address according to department records.

SECTION 19. Sections 2302.153(a) and (d), Occupations Code, are amended to read as follows:

(a) A person who is otherwise eligible to renew a license issued under this chapter may renew an unexpired license by submitting a completed renewal application and paying the required renewal fee to the department on or before the expiration date of the license.

(d) A person whose license has been expired for more than 90 days [one year or longer] may not renew the license. The person may obtain a new license by complying with the requirements and procedures for obtaining an original license.

SECTION 20. Section 2302.201, Occupations Code, is amended to read as follows:

Sec. 2302.201. DUTIES ON ACQUISITION OF NONREPAIRABLE OR SALVAGE MOTOR VEHICLE. (a) Except as provided by Section 501.0935, Transportation Code, a license holder [salvage vehicle dealer] who acquires ownership of a nonrepairable or salvage motor vehicle from an owner must receive from the owner the motor vehicle's title, [a] properly assigned to the license holder [title].

(b) The license holder [dealer] shall comply with Subchapter E, Chapter 501, Transportation Code, and board rules.

SECTION 21. Section 2302.202, Occupations Code, is amended to read as follows:

Sec. 2302.202. RECORDS OF PURCHASES. A license holder [salvage vehicle dealer] shall maintain a record of each nonrepairable or salvage motor vehicle purchased or sold by the license holder [dealer].

SECTION 22. Section 2302.203, Occupations Code, is amended to read as follows:

Sec. 2302.203. REGISTRATION OF NEW BUSINESS LOCATION. Before moving a place of business or opening an additional place of business, a license holder [salvage vehicle dealer] must apply to the department to amend the license to reflect [register] the new location [with the department]. A license holder may not engage in a licensed activity from a new location until the license is amended by the department to reflect the new location.

SECTION 23. Section 2302.204, Occupations Code, is amended to read as follows:

Sec. 2302.204. CASUAL SALES. This chapter does not apply to a person who purchases not more [fewer] than five nonrepairable motor vehicles or salvage motor vehicles during a calendar year from a license holder or [salvage vehicle dealer,] an insurance company [or salvage pool operator] in a casual sale at auction, except that:

(1) the board shall adopt rules as necessary to regulate casual sales by license holders or [salvage vehicle dealers,] insurance companies [, or salvage pool operators] and to enforce this section; and

(2) a license holder or [salvage vehicle dealer,] insurance company [, or salvage pool operator] who sells a motor vehicle in a casual sale shall comply with those rules and Subchapter E, Chapter 501, Transportation Code.

SECTION 24. The heading to Subchapter F, Chapter 2302, Occupations Code, is amended to read as follows:

SUBCHAPTER F. ADDITIONAL DUTIES OF LICENSE HOLDER [SALVAGE VEHICLE

DEALER] IN CONNECTION WITH MOTOR VEHICLE COMPONENT PARTS

SECTION 25. Section 2302.252, Occupations Code, is amended to read as follows:

Sec. 2302.252. REMOVAL OF LICENSE PLATES; INVENTORY. (a) Immediately on receipt of a motor vehicle, nonrepairable motor vehicle, or salvage motor vehicle, a license holder [salvage vehicle dealer] shall remove any [unexpired] license plates [from the vehicle] and place the license plates in a secure, locked place.

(b) A license holder [salvage vehicle dealer] shall maintain on a form provided by the department an inventory of [unexpired] license plates removed under Subsection (a). The inventory must include:

(1) each license plate number;

(2) the make of the motor vehicle, nonrepairable motor vehicle, or salvage motor vehicle from which the license plate was removed;

(3) the motor number of the motor [that] vehicle, nonrepairable motor vehicle, or salvage motor vehicle; and

(4) the vehicle identification number of the motor [that] vehicle, nonrepairable motor vehicle, or salvage motor vehicle.

SECTION 26. Section 2302.254, Occupations Code, is amended to read as follows:

Sec. 2302.254. RECORD OF PURCHASE; INVENTORY OF PARTS. (a) A license holder [salvage vehicle dealer] shall keep an accurate and legible inventory of each used component part purchased by or delivered to the license holder [dealer]. The inventory must contain a record of each part that includes:

(1) the date of purchase or delivery;

(2) the name and [, age,] address [, sex, and driver's license number] of the seller and a legible photocopy of the seller's current photo identification containing a unique identification number and expiration date [driver's license];

(3) the license plate number of the motor vehicle in which the part was delivered;

(4) a complete description of the part, including the type of material and, if applicable, the make, model, color, and size of the part; and

(5) the vehicle identification number of the motor vehicle, nonrepairable motor vehicle, or salvage motor vehicle from which the part was removed.

(a-1) The identification document required by Subsection (a) must be a:

(1) driver's license or identification card issued by this state, or another state of the United States;

(2) United States or foreign passport;

(3) United States military identification card;

(4) North Atlantic Treaty Organization identification document or identification document issued under a status of forces agreement; or

(5) United States Department of Homeland Security, United States Citizenship and Immigration Services, or United States Department of State identification document.

(b) Instead of the information required by Subsection (a), a license holder [salvage vehicle dealer] may record:

(1) the name of the person who sold the part or the motor vehicle, nonrepairable motor vehicle, or salvage motor vehicle from which the part was obtained; and

(2) the Texas certificate of inventory number or the federal taxpayer identification number of that person.

(c) The department shall prescribe the form of the record required under Subsection (a) and shall make the form available to license holders [salvage vehicle dealers].

(d) This section does not apply to [:

[(1)] an interior component part or special accessory part that is from a motor vehicle, nonrepairable motor vehicle, or salvage motor vehicle more than 10 years of age[; or

[(2) a part delivered to a salvage vehicle dealer by a commercial freight line or commercial carrier].

SECTION 27. Sections 2302.255(a), (b), (c), and (e), Occupations Code, are amended to read as follows:

(a) A license holder [salvage vehicle dealer] shall:

(1) assign a unique inventory number to each transaction in which the license holder [dealer] purchases or takes delivery of a component part;

(2) attach the unique inventory number to each component part the license holder [dealer] obtains in the transaction; and

(3) retain each component part in its original condition on the business premises of the license holder [dealer] for at least three calendar days, excluding Sundays, after the date the license holder [dealer] obtains the part.

(b) An inventory number attached to a component part under Subsection (a) may not be removed while the part remains in the inventory of the license holder [salvage vehicle dealer].

(c) A license holder [salvage vehicle dealer] shall record a component part on an affidavit bill of sale if:

(1) the component part does not have a vehicle identification number or the vehicle identification number has been removed; or

(2) the vehicle identification number of the vehicle from which the component part was removed is not available.

(e) This section does not apply to the purchase by a license holder [salvage vehicle dealer] of a nonoperational engine, transmission, or rear axle assembly from another license holder [salvage vehicle dealer] or an automotive-related business.

SECTION 28. Section 2302.256, Occupations Code, is amended to read as follows:

Sec. 2302.256. MAINTENANCE OF RECORDS. A license holder [salvage vehicle dealer] shall keep a record required under this subchapter on a form prescribed by the department. The license holder [dealer] shall maintain two copies of each record required under this subchapter until the first anniversary of the date the license holder [dealer] sells or disposes of the item for which the record is maintained.

SECTION 29. Section 2302.257(a), Occupations Code, is amended to read as follows:

(a) On demand, a license holder [salvage vehicle dealer] shall surrender to the department:

(1) [for cancellation] a certificate of title or authority;

(2) a[,] sales receipt or transfer document;

(3) a[,] license plate;

(4) an[, or] inventory list; or

(5) any record or document the license holder [that the dealer] is required to possess or maintain.

SECTION 30. Sections 2302.351(b) and (c), Occupations Code, are amended to read as follows:

(b) If a license holder [salvage vehicle dealer], an employee of the license holder [dealer] acting in the course of employment, or a salvage vehicle agent operating under the salvage vehicle dealer's license is convicted of more than one offense under Section 2302.353(a), the district or county attorney for a county in which the license holder's [dealer's] salvage business is located may bring an action in that county to enjoin the license holder's [dealer's] business operations for a period of at least one year.

(c) An action under Subsection (b) must be brought in the name of the state. If judgment is in favor of the state, the court shall:

(1) enjoin the license holder [dealer] from maintaining or participating in the business of a salvage vehicle dealer, salvage pool operator, or salvage vehicle rebuilder for a definite period of at least one year or indefinitely, as determined by the court; and

(2) order that the license holder's [dealer's] place of business be closed for the same period.

SECTION 31. Section 2302.354, Occupations Code, is amended by adding Subsection (e) to read as follows:

(e) Notwithstanding any other law, an administrative penalty recovered under this chapter shall be deposited in the state treasury to the credit of the Texas Department of Motor Vehicles.

SECTION 32. Section 2309.002, Occupations Code, is amended by amending Subdivision (1) and adding Subdivision (8) to read as follows:

(1) "Insurance company," ["metal recycler," "motor vehicle,"] "nonrepairable motor vehicle," "nonrepairable vehicle title," "salvage motor vehicle," and "salvage vehicle title[," and "salvage vehicle dealer]" have the meanings assigned by Section 501.091, Transportation Code.

(8) "Metal recycler," "motor vehicle," and "salvage vehicle dealer" have the meanings assigned by Section 2302.001.

SECTION 33. Section 2309.004, Occupations Code, is amended to read as follows:

Sec. 2309.004. APPLICABILITY OF CHAPTER TO PERSONS LICENSED UNDER CHAPTER 2302 [SALVAGE VEHICLE DEALERS]. (a) Except as provided by Subsection (b), this chapter does not apply to a transaction in which a salvage vehicle dealer, salvage pool operator, or salvage vehicle rebuilder is a party.

(b) This chapter applies to a salvage vehicle dealer, salvage pool operator, or salvage vehicle rebuilder who deals in used automotive parts as more than an incidental part of that person's [the salvage vehicle dealer's] primary business.

SECTION 34. The heading to Section 391.127, Transportation Code, is amended to read as follows:

Sec. 391.127. PERSONS LICENSED UNDER CHAPTER 2302, OCCUPATIONS CODE [SALVAGE VEHICLE DEALER LICENSE].

SECTION 35. Sections 501.091(2), (7), (11), (14), and (17), Transportation Code, are amended to read as follows:

(2) "Casual sale" means the sale by a license holder under Chapter 2302, Occupations Code, [salvage vehicle dealer] or an insurance company of five or fewer nonrepairable motor vehicles or salvage motor vehicles to the same person during a calendar year, but does not include:

(A) a sale at auction to a license holder under Chapter 2302, Occupations Code [salvage vehicle dealer];

(B) a sale to an insurance company, out-of-state buyer, or governmental entity; or

(C) the sale of an export-only motor vehicle to a person who is not a resident of the United States.

(7) "Metal recycler" has the meaning assigned by Section 2302.001, Occupations Code [means a person who:

[(A) is engaged in the business of obtaining, converting, or selling ferrous or nonferrous metal for conversion into raw material products consisting of prepared grades and having an existing or potential economic value;

[(B) has a facility to convert ferrous or nonferrous metal into raw material products by method other than the exclusive use of hand tools, including the processing, sorting, cutting, classifying, cleaning, baling, wrapping, shredding, shearing, or changing the physical form or chemical content of the metal; and

[(C) sells or purchases the ferrous or nonferrous metal solely for use as raw material in the production of new products].

(11) "Out-of-state buyer" means a person licensed in an automotive business by another state or jurisdiction if the department has listed the holders of such a license as permitted purchasers of salvage motor vehicles or nonrepairable motor vehicles based on substantially similar licensing requirements and on whether a person [salvage vehicle dealers] licensed under Chapter 2302, Occupations Code, is [in Texas are] permitted to purchase salvage motor vehicles or nonrepairable motor vehicles in the other state or jurisdiction.

(14) "Rebuilder" has the meaning assigned to "salvage vehicle rebuilder" by Section 2302.001, Occupations Code [means a person who acquires and repairs, rebuilds, or reconstructs for operation on a public highway, more than five salvage motor vehicles in a calendar year].

(17) "Salvage vehicle dealer" has the meaning assigned by Section 2302.001, Occupations Code [means a person engaged in this state in the business of acquiring, selling, repairing, rebuilding, reconstructing, or otherwise dealing in nonrepairable motor vehicles, salvage motor vehicles, or, if incidental to a salvage motor vehicle dealer's primary business, used automotive parts regardless of whether the person holds a license issued by the department to engage in that business. The term does not include an unlicensed person who:

[(A) casually repairs, rebuilds, or reconstructs not more than five nonrepairable motor vehicles or salvage motor vehicles in the same calendar year;

[(B) buys not more than five nonrepairable motor vehicles or salvage motor vehicles in the same calendar year; or

[(C) is a licensed used automotive parts recycler if the sale of repaired, rebuilt, or reconstructed nonrepairable motor vehicles or salvage motor vehicles is more than an incidental part of the used automotive parts recycler's business].

SECTION 36. Sections 501.095(a) and (b), Transportation Code, are amended to read as follows:

(a) If the department has not issued a nonrepairable vehicle title, nonrepairable record of title, salvage vehicle title, or salvage record of title for the motor vehicle and a comparable out-of-state ownership document for the motor vehicle has not been issued by another state or jurisdiction, a business or governmental entity described by Subdivisions (1)-(3) may sell, transfer, or release a nonrepairable motor vehicle or salvage motor vehicle only to a person who is:

(1) a license holder under Chapter 2302, Occupations Code [licensed salvage vehicle dealer], a used automotive parts recycler under Chapter 2309, Occupations Code, or a metal recycler under Chapter 2302, Occupations Code;

(2) an insurance company that has paid a claim on the nonrepairable or salvage motor vehicle; or

(3) a governmental entity.

(b) A person, other than a salvage vehicle dealer, salvage pool operator, salvage vehicle rebuilder, [a] used automotive parts recycler, or [an] insurance company licensed to do business in this state, who acquired ownership of a nonrepairable or salvage motor vehicle that has not been issued a nonrepairable vehicle title, nonrepairable record of title, salvage vehicle title, salvage record of title, or a comparable ownership document issued by another state or jurisdiction shall, before selling the motor vehicle, surrender the properly assigned title for the motor vehicle to the department and apply to the department for the appropriate ownership document.

SECTION 37. Sections 501.099(b), (c), (d), (e), and (g), Transportation Code, are amended to read as follows:

(b) A person may purchase a nonrepairable motor vehicle or a salvage motor vehicle only if:

(1) the person purchases the motor vehicle from a license holder under Chapter 2302, Occupations Code, [licensed salvage vehicle dealer] or a governmental entity;

(2) the motor vehicle has been issued a nonrepairable vehicle title or a salvage vehicle title; and

(3) the purchaser certifies to the seller on a form provided by the department that the purchaser will:

(A) remove the motor vehicle from the United States; and

(B) not return the motor vehicle to any state of the United States as a motor vehicle titled or registered under its manufacturer's vehicle identification number.

(c) A license holder under Chapter 2302, Occupations Code, [salvage vehicle dealer] or a governmental entity that sells a nonrepairable motor vehicle or a salvage motor vehicle to a person who is not a resident of the United States shall, before the sale of the motor vehicle, obtain a copy, photocopy, or other accurate reproduction of a valid identification card, identification certificate, or an equivalent document issued to the purchaser by the appropriate authority of the jurisdiction in which the purchaser resides that bears a photograph of the purchaser and is capable of being verified using identification standards adopted by the United States or the international community.

(d) The department by rule shall establish a list of identification documents that are valid under Subsection (c) and provide a copy of the list to each license holder under Chapter 2302, Occupations Code, [of a salvage vehicle dealer license] and to each appropriate governmental entity.

(e) A license holder under Chapter 2302, Occupations Code, [salvage vehicle dealer] or a governmental entity that sells a nonrepairable motor vehicle or a salvage motor vehicle to a person who is not a resident of the United States shall:

(1) stamp on the face of the title so as not to obscure any name, date, or mileage statement on the title the words "FOR EXPORT ONLY" in capital letters that are black; and

(2) stamp in each unused reassignment space on the back of the title the words "FOR EXPORT ONLY" and print the number of the license holder's [dealer's salvage vehicle] license or the name of the governmental entity, as applicable.

(g) A license holder under Chapter 2302, Occupations Code, [salvage vehicle dealer] or governmental entity who sells a nonrepairable motor vehicle or a salvage motor vehicle under this section to a person who is not a resident of the United States shall keep on the business premises of the license holder [dealer] or entity until the third anniversary of the date of the sale:

(1) a copy of each document related to the sale of the vehicle; and

(2) a list of all vehicles sold under this section that contains:

(A) the date of the sale;

(B) the name of the purchaser;

(C) a photocopy [the name] of [the country that issued] the identification document provided by the purchaser[, as shown on the document]; and

(D) the vehicle identification number.

SECTION 38. Section 501.1003, Transportation Code, is amended to read as follows:

Sec. 501.1003. [SALVAGE DEALER] RESPONSIBILITIES OF CERTAIN LICENSE HOLDERS. (a) If a license holder under Chapter 2302, Occupations Code, [salvage vehicle dealer] acquires ownership of a nonrepairable motor vehicle or salvage motor vehicle for the purpose of dismantling, scrapping, or destroying the motor vehicle, the license holder [dealer] shall, before the 31st day after the date the license holder [dealer] acquires the motor vehicle, submit to the department a report stating that the motor vehicle will be dismantled, scrapped, or destroyed. The license holder [dealer] shall:

(1) make the report in a manner prescribed by the department; and

(2) submit with the report a properly assigned manufacturer's certificate of origin, regular certificate of title, nonrepairable vehicle title, salvage vehicle title, or comparable out-of-state ownership document for the motor vehicle.

(b) After receiving the report and title or document, the department shall issue the license holder under Chapter 2302, Occupations Code, [salvage vehicle dealer] a receipt for the manufacturer's certificate of origin, regular certificate of title, nonrepairable vehicle title, salvage vehicle title, or comparable out-of-state ownership document.

(c) The department shall adopt rules to notify the license holder under Chapter 2302, Occupations Code, [salvage dealer] if the vehicle was not issued a printed title, but has a record of title in the department's titling system.

SECTION 39. Section 501.108, Transportation Code, is amended to read as follows:

Sec. 501.108. RECORD RETENTION. (a) Each license holder under Chapter 2302, Occupations Code [licensed salvage vehicle dealer], used automotive parts recycler, or insurance company that sells a nonrepairable motor vehicle or a salvage motor vehicle at a casual sale shall keep on the business premises of the license holder, recycler, or [dealer or the] insurance company a list of all casual sales made during the preceding 36-month period that contains:

(1) the date of the sale;

(2) the name of the purchaser;

(3) a photocopy [the name] of [the jurisdiction that issued] the identification document provided by the purchaser[, as shown on the document]; and

(4) the vehicle identification number.

(b) A license holder under Chapter 2302, Occupations Code, [salvage vehicle dealer] or used automotive parts recycler shall keep on the business premises of the license holder [dealer] or recycler, until the third anniversary of the date the report on the motor vehicle is submitted to the department, a record of the vehicle, its ownership, and its condition as dismantled, scrapped, or destroyed as required by Section 501.1003.

SECTION 40. The following sections of the Occupations Code are repealed:

(1) Section 2302.103(b);

(2) Sections 2302.153(c) and (e);

(3) Section 2302.258; and

(4) Section 2302.302.

SECTION 41. Section 2302.104, Occupations Code, as amended by this Act, applies only to an application for a license submitted on or after the effective date of this Act. An application for a license submitted before that date is governed by the law in effect on the date the application was submitted, and the former law is continued in effect for that purpose.

SECTION 42. Section 2302.108(e), Occupations Code, as added by this Act, applies only to conduct by a salvage vehicle agent authorized on or after January 1, 2016. Conduct authorized before that date is governed by the law in effect on the date the conduct was authorized, and the former law is continued in effect for that purpose.

SECTION 43. Not later than November 1, 2015, the Texas Department of Motor Vehicles shall adopt any rules necessary to implement the changes in law made by this Act and shall begin accepting applications for and issuing salvage pool operator and salvage vehicle rebuilder licenses.

SECTION 44. (a) Except as otherwise provided by this section, this Act takes effect January 1, 2016.

(b) Sections 41 and 43 of this Act take effect September 1, 2015.

(c) Sections 2302.102(a), 2302.103(a), 2302.104, and 2302.105(a) and the heading to Section 2302.105, Occupations Code, as amended by this Act, take effect September 1, 2015.