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TITLE 43TRANSPORTATION
PART 10TEXAS DEPARTMENT OF MOTOR VEHICLES
CHAPTER 221SALVAGE VEHICLE DEALERS, SALVAGE POOL OPERATORS AND SALVAGE VEHICLE REBUILDERS
SUBCHAPTER BLICENSING
RULE §221.11License and Endorsement Required

(a) The department shall issue a salvage vehicle dealer license with one or more endorsements to that license according to the type of activities intended to be engaged in by the applicant.

(b) A salvage vehicle dealer license may not be issued by the department without at least one of the following endorsements to that salvage vehicle dealer license:

  (1) new automobile dealer endorsement;

  (2) used automobile dealer endorsement;

  (3) salvage pool operator endorsement;

  (4) salvage vehicle broker endorsement; or

  (5) salvage vehicle rebuilder endorsement.

(c) A license holder may not aid or abet another person in acting as a salvage vehicle dealer unless that other person is a license holder of endorsement(s) issued by the department allowing the business activity or activities.

(d) A person may not engage in the business of buying, selling or exchanging motor vehicles that can be titled to operate on public highways, including selling a salvage motor vehicle that has been rebuilt, repaired or reconstructed, unless the person also holds a general distinguishing number issued by the department under Transportation Code, Chapter 503.

(e) A person holding a salvage vehicle dealer license with a used automobile dealer endorsement may rebuild, repair or reconstruct no more than five (5) salvage motor vehicles during a calendar year. The person may sell those rebuilt vehicles, provided the salvage vehicle dealer also holds a general distinguishing number issued by the department under Transportation Code, Chapter 503.

(f) The provisions of this subchapter do not apply to:

  (1) a person who purchases no more than five (5) non-repairable or salvage motor vehicles at casual sale in a calendar year from:

    (A) a salvage vehicle dealer;

    (B) a salvage pool operator; or

    (C) an insurance company;

  (2) a metal recycler, unless a motor vehicle is sold, transferred, released, or delivered to the metal recycler for the purpose of reuse or resale as a motor vehicle, or as a source of used parts, and is used for that purpose;

  (3) a person who casually repairs, rebuilds, or reconstructs no more than five (5) salvage motor vehicles in the same calendar year;

  (4) a person who is a non-United States resident who purchases non-repairable or salvage motor vehicles for export only;

  (5) an agency of the United States, an agency of this state, or a local government;

  (6) a financial institution or other secured party that holds a security interest in a motor vehicle and is selling that motor vehicle in the manner provided by law for the forced sale of a motor vehicle;

  (7) a receiver, trustee, administrator, executor, guardian, or other person appointed by or acting pursuant to the order of a court;

  (8) a person selling an antique passenger car or truck that is at least 25 years old or a collector selling a special interest motor vehicle as defined in Transportation Code, §683.077, if the special interest vehicle is at least 12 years old; and

  (9) a licensed auctioneer who, as a bid caller, sells or offers to sell property to the highest bidder at a bona fide auction under the following conditions:

    (A) neither legal nor equitable title passes to the auctioneer;

    (B) the auction is not held for the purpose of avoiding a provision of Occupations Code, Chapter 2302, or this subchapter; and

    (C) the auction is conducted of motor vehicles owned, legally or equitably, by a person who holds a salvage vehicle dealer's license and the auction is conducted at their licensed location or at a location approved by the department.


Source Note: The provisions of this §221.11 adopted to be effective December 9, 2015, 40 TexReg 8802

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