1. (a) Applicability. A person who acts as a salvage vehicle dealer or salvage vehicle rebuilder, including a person who stores or displays motor vehicles as an agent or escrow agent of an insurance company, must obtain a salvage vehicle dealer license in accordance with Occupations Code, Chapter 2302, and the provisions of this subchapter.

2. (b) Classification of licenses. The department will classify salvage vehicle dealers according to the type of activity performed by the dealer. A salvage vehicle dealer may not engage in activities of a particular classification as indicated in this subsection unless the salvage vehicle dealer holds a license authorizing business under that classification. An applicant shall apply for a salvage vehicle dealer license in one or more of the following classifications:

   1. (1) new automobile dealer, defined as a person whose primary business is selling new motor vehicles, but who may also buy non-repairable and salvage motor vehicles to repair and sell;
   2. (2) used automobile dealer, defined as a person whose primary business is selling used motor vehicles, but who may also buy salvage and non-repairable motor vehicles to repair and sell;
   3. (3) used vehicle parts dealer, defined as a person who is engaged in the business of acquiring, possessing, or transferring used parts in the ordinary course of business;
   4. (4) salvage pool operator, defined as a person who is engaged in the business of selling non-repairable motor vehicles or salvage motor vehicles;
   5. (5) salvage vehicle broker, defined as a person who buys, sells, or exchanges salvage and non-repairable motor vehicles with other licensed salvage vehicle dealers; or
   6. (6) salvage vehicle rebuilder, defined as a person who acquires and repairs, rebuilds, or reconstructs for operation on a public highway three or more salvage motor vehicles in a calendar year.

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

   1. (1) a person who purchases not more than five non-repairable or salvage motor vehicles at casual sale in a calendar year from:

      1. (A) a salvage vehicle dealer;
      2. (B) a salvage pool operator; or
      3. (C) an insurance company;
   2. (2) a metal recycler, as described by §217.71(6) of this subchapter (relating to Definitions) 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. (3) a person who casually repairs, rebuilds, or reconstructs fewer than three salvage motor vehicles in the same calendar year;
   4. (4) a person who is a non-United States resident who purchases non-repairable or salvage motor vehicles for export only;
   5. (5) an agency of the United States, an agency of this state, or a local government;
   6. (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. (7) a receiver, trustee, administrator, executor, guardian, or other person appointed by or acting pursuant to the order of a court;
   8. (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. (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:

      1. (A) neither legal nor equitable title passes to the auctioneer;
      2. (B) the auction is not held for the purpose of avoiding a provision of Occupations Code, Chapter 2302, or this subchapter; and
      3. (C) an 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 a location for which a salvage vehicle dealer's license has been issued to that person or at a location approved by the department under §217.76(a) of this subchapter (relating to Place of Business).

Source Note:The provisions of this §217.72 adopted to be effective March 4, 2010, 35 TexReg 1761.