84R4262 TSR-F
 
  By: Garcia S.B. No. 1504
 
 
 
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.