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RULE §221.11License Required

(a) A person must hold a salvage vehicle dealer license, or an independent motor vehicle dealer's general distinguishing number issued under Chapter 503; Transportation Code to:

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

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

(b) 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 holds a general distinguishing number issued by the department under Transportation Code, Chapter 503.

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

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

    (A) a salvage vehicle dealer; or

    (B) 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 nonrepairable 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; amended to be effective January 2, 2020, 44 TexReg 8339

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