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  S.B. No. 1095
 
 
 
 
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