81(R) SB 1095 - Enrolled version

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�	S.B.�No.�1095

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�	AN ACT
�	relating to the licensing and regulation of used automotive parts
�	recyclers; providing penalties.
�	��BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
�	��SECTION�1.��Subdivision (6), Section 2302.001, Occupations
�	Code, is amended to read as follows:
�	��(6)��"Salvage vehicle agent" means a person who
�	acquires, sells, or otherwise deals in nonrepairable or salvage
�	motor vehicles [~~or used parts~~] in this state as directed by the
�	salvage vehicle dealer under whose license the person operates.
�	The term does not include a person who:
�	��(A)��is a licensed salvage vehicle dealer or a
�	licensed used automotive parts recycler;
�	��(B)��is a partner, owner, or officer of a business
�	entity that holds a salvage vehicle dealer license or a used
�	automotive parts recycler license;
�	��(C)��is an employee of a licensed salvage vehicle
�	dealer or a licensed used automotive parts recycler; or
�	��(D)��only transports salvage motor vehicles for a
�	licensed salvage vehicle dealer or a licensed used automotive parts
�	recycler.
�	��SECTION�2.��Subsection (b), Section 2302.006, Occupations
�	Code, is amended to read as follows:
�	��(b)��This chapter applies to a transaction in which a motor
�	vehicle:
�	��(1)��is sold, transferred, released, or delivered to a
�	metal recycler for the purpose of reuse or resale as a motor vehicle
�	[~~or as a source of used parts~~]; and
�	��(2)��is used for that purpose.
�	��SECTION�3.��Subchapter A, Chapter 2302, Occupations Code, is
�	amended by adding Section 2302.008 to read as follows:
�	��Sec.�2302.008.��APPLICABILITY OF CHAPTER TO USED AUTOMOTIVE
�	PARTS RECYCLERS. This chapter does not apply to a used automotive
�	parts recycler licensed under Chapter 2309.
�	��SECTION�4.��Subsection (b), Section 2302.103, Occupations
�	Code, is amended to read as follows:
�	��(b)��An applicant may apply for a salvage vehicle dealer
�	license with an endorsement in one or more of the following
�	classifications:
�	��(1)��new automobile dealer;
�	��(2)��used automobile dealer;
�	��(3)��[~~used vehicle parts dealer;~~
�	��[~~(4)~~]��salvage pool operator;
�	��(4)�[~~(5)~~]��salvage vehicle broker; or
�	��(5)�[~~(6)~~]��salvage vehicle rebuilder.
�	��SECTION�5.��Subsection (d), Section 2302.107, Occupations
�	Code, is amended to read as follows:
�	��(d)��A salvage vehicle agent may acquire, sell, or otherwise
�	deal in, nonrepairable or salvage motor vehicles [~~or used parts~~] as
�	directed by the authorizing dealer.
�	��SECTION�6.��Section 2302.202, Occupations Code, is amended
�	to read as follows:
�	��Sec.�2302.202.��RECORDS OF PURCHASES. A salvage vehicle
�	dealer shall maintain a record of each salvage motor vehicle [~~and~~
�	~~each used part~~] purchased or sold by the dealer.
�	��SECTION�7.��Subtitle A, Title 14, Occupations Code, is
�	amended by adding Chapter 2309 to read as follows:
�	CHAPTER 2309. USED AUTOMOTIVE PARTS RECYCLERS
�	SUBCHAPTER A. GENERAL PROVISIONS
�	��Sec.�2309.001.��SHORT TITLE. This chapter may be cited as
�	the Texas Used Automotive Parts Recycling Act.
�	��Sec.�2309.002.��DEFINITIONS. In this chapter:
�	��(1)��"Insurance company," "metal recycler," "motor
�	vehicle," "nonrepairable motor vehicle," "nonrepairable vehicle
�	title," "salvage motor vehicle," "salvage vehicle title," and
�	"salvage vehicle dealer" have the meanings assigned by Section
�	501.091, Transportation Code.
�	��(2)��"Commission" means the Texas Commission of
�	Licensing and Regulation.
�	��(3)��"Department" means the Texas Department of
�	Licensing and Regulation.
�	��(4)��"Executive director" means the executive director
�	of the department.
�	��(5)��"Used automotive part" has the meaning assigned to
�	"used part" by Section 501.091, Transportation Code.
�	��(6)��"Used automotive parts recycler" means a person
�	licensed under this chapter to operate a used automotive parts
�	recycling business.
�	��(7)��"Used automotive parts recycling" means the
�	dismantling and reuse or resale of used automotive parts and the
�	safe disposal of salvage motor vehicles or nonrepairable motor
�	vehicles, including the resale of those vehicles.
�	��Sec.�2309.003.��APPLICABILITY OF CHAPTER TO METAL RECYCLERS.
�	(a)��Except as provided by Subsection (b), this chapter does not
�	apply to a transaction to which a metal recycler is a party.
�	��(b)��This chapter applies to a transaction in which a motor
�	vehicle:
�	��(1)��is sold, transferred, released, or delivered to a
�	metal recycler as a source of used automotive parts; and
�	��(2)��is used as a source of used automotive parts.
�	��Sec.�2309.004.��APPLICABILITY OF CHAPTER TO SALVAGE VEHICLE
�	DEALERS. (a)��Except as provided by Subsection (b), this chapter
�	does not apply to a transaction in which a salvage vehicle dealer is
�	a party.
�	��(b)��This chapter applies to a salvage vehicle dealer who
�	deals in used automotive parts as more than an incidental part of
�	the salvage vehicle dealer's primary business.
�	��Sec.�2309.005.��APPLICABILITY OF CHAPTER TO INSURANCE
�	COMPANIES. This chapter does not apply to an insurance company.
�	[Sections 2309.006-2309.050 reserved for expansion]
�	SUBCHAPTER B. ADVISORY BOARD
�	��Sec.�2309.051.��USED AUTOMOTIVE PARTS RECYCLING ADVISORY
�	BOARD. (a)��The advisory board consists of five members
�	representing the used automotive parts industry in this state
�	appointed by the presiding officer of the commission with the
�	approval of the commission.
�	��(b)��The advisory board shall include members who represent
�	used automotive parts businesses owned by domestic entities, as
�	defined by Section 1.002, Business Organizations Code.
�	��(c)��The advisory board shall include one member who
�	represents a used automotive parts business owned by a foreign
�	entity, as defined by Section 1.002, Business Organizations Code.
�	��(d)��The advisory board may not include more than one member
�	from any one used automotive parts business entity.
�	��(e)��Appointments to the advisory board shall be made without
�	regard to the race, color, disability, sex, religion, age, or
�	national origin of the appointee.
�	��Sec.�2309.052.��TERMS; VACANCIES. (a)��Advisory board
�	members serve terms of six years, with the terms of one or two
�	members expiring on February 1 of each odd-numbered year.
�	��(b)��A member may not serve more than two full consecutive
�	terms.
�	��(c)��If a vacancy occurs during a term, the presiding officer
�	of the commission shall appoint a replacement who meets the
�	qualifications of the vacated position to serve for the remainder
�	of the term.
�	��Sec.�2309.053.��PRESIDING OFFICER. The presiding officer of
�	the commission shall appoint one of the advisory board members to
�	serve as presiding officer of the advisory board for a term of one
�	year. The presiding officer of the advisory board may vote on any
�	matter before the advisory board.
�	��Sec.�2309.054.��POWERS AND DUTIES OF ADVISORY BOARD. The
�	advisory board shall provide advice and recommendations to the
�	department on technical matters relevant to the administration and
�	enforcement of this chapter, including licensing standards.
�	��Sec.�2309.055.��COMPENSATION; REIMBURSEMENT OF EXPENSES.
�	Advisory board members may not receive compensation but are
�	entitled to reimbursement for actual and necessary expenses
�	incurred in performing the functions of the advisory board, subject
�	to the General Appropriations Act.
�	��Sec.�2309.056.��MEETINGS. The advisory board shall meet
�	twice annually and may meet at other times at the call of the
�	presiding officer of the commission or the executive director.
�	[Sections 2309.057-2309.100 reserved for expansion]
�	SUBCHAPTER C. POWERS AND DUTIES OF COMMISSION AND DEPARTMENT
�	��Sec.�2309.101.��GENERAL POWERS AND DUTIES. The executive
�	director or commission, as appropriate, may take action as
�	necessary to administer and enforce this chapter.
�	��Sec.�2309.102.��RULES. (a)��The commission shall adopt
�	rules for licensing used automotive parts recyclers and used
�	automotive parts employees.
�	��(b)��The commission by rule shall adopt standards of conduct
�	for license holders under this chapter.
�	��Sec.�2309.103.��RULES REGARDING LICENSING AND STANDARDS OF
�	CONDUCT. (a)��The commission shall adopt rules for licensing
�	applicants, including rules for denial of an application if the
�	applicant, a partner, principal, officer, or general manager of the
�	applicant, or another license or permit holder with a connection to
�	the applicant, has:
�	��(1)��before the application date, been convicted of,
�	pleaded guilty or nolo contendere to, or been placed on deferred
�	adjudication for:
�	��(A)��a felony; or
�	��(B)��a misdemeanor punishable by confinement in
�	jail or by a fine exceeding $500;
�	��(2)��violated an order of the commission or executive
�	director, including an order for sanctions or administrative
�	penalties; or
�	��(3)��knowingly submitted false information on the
�	application.
�	��(b)��The commission by rule shall adopt standards of conduct
�	for license holders under this chapter.
�	��Sec.�2309.104.��FEES. The commission shall establish and
�	collect reasonable and necessary fees in amounts sufficient to
�	cover the costs of administering this chapter.
�	��Sec.�2309.105.��RULES RESTRICTING ADVERTISING OR
�	COMPETITIVE BIDDING. (a)��The commission may not adopt a rule
�	restricting advertising or competitive bidding by a person who
�	holds a license issued under this chapter except to prohibit false,
�	misleading, or deceptive practices by the person.
�	��(b)��The commission may not include in its rules to prohibit
�	false, misleading, or deceptive practices a rule that:
�	��(1)��restricts the use of any advertising medium;
�	��(2)��restricts the person's personal appearance or use
�	of the person's voice in an advertisement;
�	��(3)��relates to the size or duration of an
�	advertisement by the person; or
�	��(4)��restricts the use of a trade name in advertising by
�	the person.
�	��Sec.�2309.106.��PERIODIC AND RISK-BASED INSPECTIONS.
�	(a)��The department shall inspect each used automotive parts
�	recycling facility at least once every two years.
�	��(b)��The department may enter and inspect at any time during
�	business hours:
�	��(1)��the place of business of any person regulated
�	under this chapter; or
�	��(2)��any place in which the department has reasonable
�	cause to believe that a license holder is in violation of this
�	chapter or in violation of a rule or order of the commission or
�	executive director.
�	��(c)��The department shall conduct additional inspections
�	based on a schedule of risk-based inspections using the following
�	criteria:
�	��(1)��the inspection history;
�	��(2)��any history of complaints involving a used
�	automotive parts recycler; and
�	��(3)��any other factor determined by the commission by
�	rule.
�	��(d)��A used automotive parts recycler shall pay a fee for
�	each risk-based inspection performed under this section. The
�	commission by rule shall set the amount of the fee.
�	��(e)��In conducting an inspection under this section, the
�	department may inspect a facility, a used automotive part, a
�	business record, or any other place or thing reasonably required to
�	enforce this chapter or a rule or order adopted under this chapter.
�	��Sec.�2309.107.��PERSONNEL. The department may employ
�	personnel necessary to administer and enforce this chapter.
�	[Sections 2309.108-2309.150 reserved for expansion]
�	SUBCHAPTER D. LICENSE REQUIREMENTS
�	��Sec.�2309.151.��USED AUTOMOTIVE PARTS RECYCLER LICENSE
�	REQUIRED. (a)��Unless the person holds a used automotive parts
�	recycler license issued under this chapter, a person may not own or
�	operate a used automotive parts recycling business or sell used
�	automotive parts.
�	��(b)��A used automotive parts recycler license:
�	��(1)��is valid only with respect to the person who
�	applied for the license; and
�	��(2)��authorizes the license holder to operate a used
�	automotive parts recycling business only at the one facility listed
�	on the license.
�	��Sec.�2309.152.��GENERAL LICENSE APPLICATION REQUIREMENTS.
�	An applicant for a used automotive parts recycler license under
�	this chapter must submit to the department:
�	��(1)��a completed application on a form prescribed by
�	the executive director;
�	��(2)��the required fees; and
�	��(3)��any other information required by commission rule.
�	��Sec.�2309.153.��LICENSE REQUIREMENTS. An applicant for a
�	used automotive parts recycler license under this chapter must
�	provide in a manner prescribed by the executive director:
�	��(1)��a federal tax identification number;
�	��(2)��proof of general liability insurance in an amount
�	not less than $250,000; and
�	��(3)��proof of a storm water permit if the applicant is
�	required by the Texas Commission on Environmental Quality to obtain
�	a permit.
�	��Sec.�2309.154.��USED AUTOMOTIVE PARTS EMPLOYEE LICENSE
�	REQUIRED. (a)��A person employed by a used automotive parts
�	recycler may not in the scope of the person's employment acquire a
�	vehicle or used automotive parts and may not sell used automotive
�	parts unless the person holds a used automotive parts employee
�	license issued under this chapter.
�	��(b)��The commission by rule shall adopt requirements for the
�	application for and issuance of a used automotive parts employee
�	license under this chapter.
�	��Sec.�2309.155.��NONTRANSFERABILITY OF LICENSE. A license
�	issued by the executive director is valid throughout this state and
�	is not transferable.
�	��Sec.�2309.156.��LICENSE RENEWAL. (a)��A license issued
�	under this chapter is valid for one year. The department may adopt
�	a system under which licenses expire at different times during the
�	year.
�	��(b)��The department shall notify the license holder at least
�	30 days before the date a license expires. The notice must be in
�	writing and sent to the license holder's last known address
�	according to the records of the department.
�	��(c)��The commission by rule shall adopt requirements to renew
�	a license issued under this chapter.
�	[Sections 2309.157-2309.200 reserved for expansion]
�	SUBCHAPTER E. LOCAL REGULATION
�	��Sec.�2309.201.��APPLICABILITY OF CERTAIN MUNICIPAL
�	ORDINANCES, LICENSES, AND PERMITS. (a)��The requirements of this
�	chapter apply in addition to the requirements of any applicable
�	municipal ordinance relating to the regulation of a person who
�	deals in used automotive parts.
�	��(b)��This chapter does not prohibit the enforcement of an
�	applicable municipal license or permit requirement that is related
�	to an activity regulated under this chapter.
�	[Sections 2309.202-2309.250 reserved for expansion]
�	SUBCHAPTER F. ENFORCEMENT
�	��Sec.�2309.251.��ADMINISTRATIVE PENALTY. (a)��The
�	commission may impose an administrative penalty on a person under
�	Subchapter F, Chapter 51, regardless of whether the person holds a
�	license under this chapter, if the person violates:
�	��(1)��this chapter or a rule adopted under this chapter;
�	or
�	��(2)��a rule or order of the executive director or
�	commission.
�	��(b)��An administrative penalty may not be imposed unless the
�	person charged with a violation is provided the opportunity for a
�	hearing.
�	��Sec.�2309.252.��CEASE AND DESIST ORDER; INJUNCTION; CIVIL
�	PENALTY. (a)��The executive director may issue a cease and desist
�	order as necessary to enforce this chapter if the executive
�	director determines that the action is necessary to prevent a
�	violation of this chapter and to protect public health and safety.
�	��(b)��The attorney general or executive director may
�	institute an action for an injunction or a civil penalty under this
�	chapter as provided by Section 51.352.
�	��Sec.�2309.253.��SANCTIONS. The department may impose
�	sanctions as provided by Section 51.353.
�	��Sec.�2309.254.��CRIMINAL PENALTY; LICENSING. (a)��A person
�	commits an offense if the person:
�	��(1)��violates the licensing requirements of this
�	chapter;
�	��(2)��deals in used parts without a license required by
�	this chapter; or
�	��(3)��employs an individual who does not hold the
�	appropriate license required by this chapter.
�	��(b)��An offense under this section is a Class C misdemeanor.
�	[Sections 2309.255-2309.300 reserved for expansion]
�	SUBCHAPTER G. CONDUCTING BUSINESS
�	��Sec.�2309.301.��DUTIES ON ACQUISITION OF SALVAGE MOTOR
�	VEHICLE. (a)��A used automotive parts recycler who acquires
�	ownership of a salvage motor vehicle shall obtain a properly
�	assigned title from the previous owner of the vehicle.
�	��(b)��A used automotive parts recycler who acquires ownership
�	of a motor vehicle, nonrepairable motor vehicle, or salvage motor
�	vehicle for the purpose of dismantling, scrapping, or destroying
�	the motor vehicle, shall, before the 31st day after the date of
�	acquiring the motor vehicle, submit to the Texas Department of
�	Transportation a properly assigned manufacturer's certificate of
�	origin, regular certificate of title, nonrepairable vehicle title,
�	salvage vehicle title, other ownership document, or comparable
�	out-of-state ownership document for the motor vehicle.
�	��(c)��After receiving the title or document, the Texas
�	Department of Transportation shall issue the used automotive parts
�	recycler a receipt for the manufacturer's certificate of origin,
�	regular certificate of title, nonrepairable vehicle title, salvage
�	vehicle title, other ownership document, or comparable
�	out-of-state ownership document.
�	��(d)��The recycler shall comply with Subchapter E, Chapter
�	501, Transportation Code.
�	��Sec.�2309.302.��RECORDS OF PURCHASES. A used automotive
�	parts recycler shall maintain a record of or sales receipt for each
�	motor vehicle, salvage motor vehicle, nonrepairable motor vehicle,
�	and used automotive part purchased.
�	��Sec.�2309.303.��REGISTRATION OF NEW BUSINESS LOCATION.
�	Before moving a place of business, a used automotive parts recycler
�	must notify the department of the new location. The used automotive
�	parts recycler shall provide a storm water permit for the location
�	if a permit is required by the Texas Commission on Environmental
�	Quality.
�	[Sections 2309.304-2309.350 reserved for expansion]
�	SUBCHAPTER H. ADDITIONAL DUTIES OF USED AUTOMOTIVE PARTS RECYCLER
�	IN CONNECTION WITH MOTOR VEHICLE COMPONENT PARTS
�	��Sec.�2309.351.��DEFINITIONS. In this subchapter:
�	��(1)��"Component part" means a major component part as
�	defined by Section 501.091, Transportation Code, or a minor
�	component part.
�	��(2)��"Interior component part" means a motor vehicle's
�	seat or radio.
�	��(3)��"Minor component part" means an interior component
�	part, a special accessory part, or a motor vehicle part that
�	displays or should display at least one of the following:
�	��(A)��a federal safety certificate;
�	��(B)��a motor number;
�	��(C)��a serial number or a derivative; or
�	��(D)��a manufacturer's permanent vehicle
�	identification number or a derivative.
�	��(4)��"Special accessory part" means a motor vehicle's
�	tire, wheel, tailgate, or removable glass top.
�	��Sec.�2309.352.��REMOVAL OF LICENSE PLATES. Immediately on
�	receipt of a motor vehicle, a used automotive parts recycler shall:
�	��(1)��remove any unexpired license plates from the
�	vehicle; and
�	��(2)��place the license plates in a secure place until
�	destroyed by the used automotive parts recycler.
�	��Sec.�2309.353.��DISMANTLEMENT OR DISPOSITION OF MOTOR
�	VEHICLE. A used automotive parts recycler may not dismantle or
�	dispose of a motor vehicle unless the recycler first obtains:
�	��(1)��a certificate of authority to dispose of the
�	vehicle, a sales receipt, or a transfer document for the vehicle
�	issued under Chapter 683, Transportation Code; or
�	��(2)��a certificate of title showing that there are no
�	liens on the vehicle or that all recorded liens have been released.
�	��Sec.�2309.354.��RECORD OF PURCHASE; INVENTORY OF PARTS.
�	(a)��A used automotive parts recycler shall keep an accurate and
�	legible record of each used component part purchased by or
�	delivered to the recycler. The record must include:
�	��(1)��the date of purchase or delivery;
�	��(2)��the driver's license number of the seller and a
�	legible photocopy of the seller's driver's license; and
�	��(3)��a description of the part and, if applicable, the
�	make and model of the part.
�	��(b)��As an alternative to the information required by
�	Subsection (a), a used automotive parts recycler may record:
�	��(1)��the name of the person who sold the part or the
�	motor vehicle from which the part was obtained; and
�	��(2)��the Texas certificate of inventory number or the
�	federal taxpayer identification number of the person.
�	��(c)��The department shall prescribe the form of the record
�	required by Subsection (a) and shall make the form available to used
�	automotive parts recyclers.
�	��(d)��This section does not apply to:
�	��(1)��an interior component part or special accessory
�	part from a motor vehicle more than 10 years old; or
�	��(2)��a part delivered to a used automotive parts
�	recycler by a commercial freight line, commercial carrier, or
�	licensed used automotive parts recycler.
�	��Sec.�2309.355.��RETENTION OF COMPONENT PARTS. (a)��A used
�	automotive parts recycler shall retain each component part in its
�	original condition on the business premises of the recycler for at
�	least three calendar days, excluding Sundays, after the date the
�	recycler obtains the part.
�	��(b)��This section does not apply to the purchase by a used
�	automotive parts recycler of a nonoperational engine,
�	transmission, or rear axle assembly from another used automotive
�	parts recycler or an automotive-related business.
�	��Sec.�2309.356.��MAINTENANCE OF RECORDS. A used automotive
�	parts recycler shall maintain copies of each record required under
�	this subchapter until the first anniversary of the purchase date of
�	the item for which the record is maintained.
�	��Sec.�2309.357.��SURRENDER OF CERTAIN DOCUMENTS OR LICENSE
�	PLATES. (a)��A used automotive parts recycler shall surrender to
�	the Texas Department of Transportation for cancellation a
�	certificate of title or authority, sales receipt, or transfer
�	document, as required by the department.
�	��(b)��The Texas Department of Transportation shall provide a
�	signed receipt for a surrendered certificate of title.
�	��Sec.�2309.358.��INSPECTION OF RECORDS. (a)��A peace officer
�	at any reasonable time may inspect a record required to be
�	maintained under this subchapter, including an inventory record.
�	��(b)��On demand by a peace officer, a used automotive parts
�	recycler shall provide to the officer a copy of a record required to
�	be maintained under this subchapter.
�	��(c)��A peace officer may inspect the inventory on the
�	premises of a used automotive parts recycler at any reasonable time
�	to verify, check, or audit the records required to be maintained
�	under this subchapter.
�	��(d)��A used automotive parts recycler or an employee of the
�	recycler shall allow and may not interfere with a peace officer's
�	inspection of the recycler's inventory, premises, or required
�	inventory records.
�	[Sections 2309.359-2309.400 reserved for expansion]
�	SUBCHAPTER I. MOTOR VEHICLE SALVAGE YARDS IN CERTAIN COUNTIES
�	��Sec.�2309.401.��APPLICABILITY OF SUBCHAPTER. This
�	subchapter applies only to a used automotive parts facility located
�	in a county with a population of 2.8 million or more.
�	��Sec.�2309.402.��LIMITS ON OPERATION OF HEAVY MACHINERY.
�	(a)��A used automotive parts recycler may not operate heavy
�	machinery in a used automotive parts recycling facility between the
�	hours of 7 p.m. of one day and 7 a.m. of the following day.
�	��(b)��This section does not apply to conduct necessary to a
�	sale or purchase by the recycler.
�	��SECTION�8.��Section 501.091, Transportation Code, is amended
�	by amending Subdivision (17) and adding Subdivision (20) to read as
�	follows:
�	��(17)��"Salvage vehicle dealer" means a person engaged
�	in this state in the business of acquiring, selling, [~~dismantling,~~]
�	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. The term does not include a person who
�	casually repairs, rebuilds, or reconstructs fewer than five [~~three~~]
�	salvage motor vehicles in the same calendar year or, except as
�	provided by Paragraph (C), a used automotive parts recycler. The
�	term includes a person engaged in the business of:
�	��(A)��a salvage vehicle dealer, regardless of
�	whether the person holds a license issued by the department to
�	engage in that business;
�	��(B)��dealing in nonrepairable motor vehicles or
�	salvage motor vehicles[~~, regardless of whether the person deals in~~
�	~~used parts~~]; or
�	��(C)��a 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 [~~dealing in used~~
�	~~parts regardless of whether the person deals in nonrepairable motor~~
�	~~vehicles or salvage motor vehicles~~].
�	��(20)��"Used parts dealer" and "used automotive parts
�	recycler" have the meaning assigned to "used automotive parts
�	recycler" by Section 2309.002, Occupations Code.
�	��SECTION�9.��Subsection (d), Section 501.092, Transportation
�	Code, is amended to read as follows:
�	��(d)��An insurance company may sell a motor vehicle to which
�	this section applies, or assign a salvage vehicle title or a
�	nonrepairable vehicle title for the motor vehicle, only to a
�	salvage vehicle dealer, an out-of-state buyer, a buyer in a casual
�	sale at auction, [or] a metal recycler, or a used automotive parts
�	recycler. If the motor vehicle is not a salvage motor vehicle or a
�	nonrepairable motor vehicle, the insurance company is not required
�	to surrender the regular certificate of title for the vehicle or to
�	be issued a salvage vehicle title or a nonrepairable vehicle title
�	for the motor vehicle.
�	��SECTION�10.��Subsections (a) and (b), Section 501.095,
�	Transportation Code, are amended to read as follows:
�	��(a)��If the department has not issued a nonrepairable vehicle
�	title or salvage vehicle title for the motor vehicle and an
�	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 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;
�	��(3)��a governmental entity; or
�	��(4)��an out-of-state buyer.
�	��(b)��A person, other than a salvage vehicle dealer, 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, salvage vehicle title, or a comparable ownership
�	document issued by another state or jurisdiction shall, before
�	selling the motor vehicle, surrender the properly assigned
�	certificate of title for the motor vehicle to the department and
�	apply to the department for:
�	��(1)��a nonrepairable vehicle title if the vehicle is a
�	nonrepairable motor vehicle; or
�	��(2)��a salvage vehicle title if the vehicle is a salvage
�	motor vehicle.
�	��SECTION�11.��Section 501.105, Transportation Code, is
�	amended to read as follows:
�	��Sec.�501.105.��RETENTION OF RECORDS RELATING TO CERTAIN
�	CASUAL SALES. Each 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 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)��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.
�	��SECTION�12.��Section 2302.253, Occupations Code, is
�	repealed.
�	��SECTION�13.��Not later than January 1, 2010, the Texas
�	Commission of Licensing and Regulation shall adopt rules under
�	Section 2309.102, Occupations Code, as added by this Act.
�	��SECTION�14.��If there is a conflict between a provision of
�	this Act and a provision of another Act of the 81st Legislature,
�	Regular Session, 2009, that becomes law concerning the licensing or
�	regulation of used automotive parts recyclers, this Act prevails
�	regardless of the relative dates of enactment.
�	��SECTION�15.��(a)��Except as provided by Subsection (b) of
�	this section, this Act takes effect September 1, 2009.
�	��(b)��Sections 2309.151 and 2309.154, Occupations Code, as
�	added by this Act, and Subchapter F, Chapter 2309, Occupations
�	Code, as added by this Act, take effect September 1, 2010.
�
�
�
�
�
�	______________________________	______________________________
�	��President of the Senate	Speaker of the House��
�
�	��I hereby certify that S.B.�No.�1095 passed the Senate on
�	April�23,�2009, by the following vote: Yeas�30, Nays�0; and that
�	the Senate concurred in House amendment on May�29,�2009, by the
�	following vote: Yeas�31, Nays�0.
�
�
�	______________________________
�	Secretary of the Senate��
�
�	��I hereby certify that S.B.�No.�1095 passed the House, with
�	amendment, on May�26,�2009, by the following vote: Yeas�133,
�	Nays�4, two present not voting.
�
�
�	______________________________
�	Chief Clerk of the House��
�
�
�
�	Approved:
�
�	______________________________�
�	��Date
�
�
�	______________________________�
�	��Governor