Used Automotive Parts Recyclers Frequently Asked Questions

Used Automotive Parts Recyclers are governed by Chapter 2309 of the Occupations Code and the administrative rules found in 16 Texas Administrative Code Chapter 87. For more information regarding the statutory and administrative requirements, you may wish to review these resources and/or consult a private attorney.

General

1. What is a Used Automotive Parts Recycler (UAPR)?

The Act defines "used automotive parts recycler" as a person licensed under this chapter to operate a used automotive parts recycling business. "Used automotive parts recycling" is 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.

2. What is the Texas Used Automotive Parts Recycling Act and when did it become effective?

The Texas Used Automotive Parts Recycling Act was created when the 81st Texas Legislature passed Senate Bill 1095. Effective September 1, 2010, all Used Automotive Parts Recycler (UAPR) businesses and UAPR employees must hold a license with the Texas Department of Licensing and Regulation. UAPR businesses with multiple locations are required to hold a separate license for each facility.

3. What does the Texas Used Automotive Parts Recycling Act do?

The Texas Used Automotive Parts Recycling Act:

  • establishes The Used Automotive Parts Recycling Advisory Board;
  • establishes two types of licenses
    • Used Automotive Parts Recycler business license, and
    • Used Automotive Parts Recycler employee license;
  • requires TDLR to administer and enforce the Act’s provisions; and
  • directs TDLR to inspect each used automotive parts recycling business at least once every two years.

4. What are the different types of Used Automotive Parts Recycling (UAPR) Act licenses?

There are two different types of licenses required.

  1. A UAPR business license; each separate location must have a separate business license.
  2. A UAPR employee license; each individual person who buys or sells used automotive parts for any UAPR business must have a UAPR employee license.

Used Automotive Parts Recycling Employee License

1. What are the requirements to apply for a Used Automotive Parts Recycling (UAPR) employee license?

To be eligible for UAPR employee license, an applicant must:

2. Do all individuals who work at the business need a license?

No. Only employees who buy vehicles or used automotive parts, or sell used automotive parts must have a UAPR employee license. A recycler may not employ a person required to hold a license under the Act unless the person has a UAPR employee license. The employer is required to maintain a copy of the employee’s license.

3. Does the owner or do the principals of a Used Automotive Parts Recycling business also need to apply for an employee license?

If a sole proprietor or a controlling person for an UAPR business buy vehicles or used automotive parts or sells used automotive parts then they must have a UAPR employee license.


Used Automotive Parts Recycling Business License

1. What are the requirements to apply for a Used Automotive Parts Recycling Act (UAPR) business license?

To be eligible for a UAPR business license, an applicant must:

  • submit a completed TDLR Used Automotive Parts Recycling Business Application;
  • provide a valid federal tax ID number (sole proprietors may use a Social Security number);
  • maintain a general liability insurance policy in an amount not less than $250,000 and attach a certificate of insurance to the application;
  • provide proof of a storm water permit;
  • pass a criminal background check (for all principals of the company); and
  • pay a fee of $75.

2. What if a Used Automotive Parts Recycling business has multiple locations? Does each facility need a separate license?

Yes. UAPR businesses with multiple locations are required to hold a separate license for each facility.


Renewals

1. How often do I have to renew my Used Automotive Parts Recycler Business or Used Automotive Parts Recycler Employee license?

Your license must be renewed annually. Your license is valid for one year from the date of issue.

2. How do I renew my Used Automotive Parts Recycler Business license?

  • Submit a completed TDLR Used Automotive Parts Recycling Business Application;
  • Attach an active certificate of insurance showing proof of general liability in the amount of $250,000 minimum;
  • Confirm storm water permit information (see below);
  • Pass a criminal background check (for all principals of the company); and
  • Pay renewal fee of $120.

Storm Water Permit: If you’ve applied for a storm water permit, but have not yet received it, you may still apply for this license. Information about how to get your storm water permit is available from the Texas Commission on Environmental Quality (TCEQ) at (512) 239-1000, or on TCEQ's web site.

3.  How do I renew my Used Automotive Parts Recycler Employee license?

4. How much does it cost to renew my Used Automotive Parts Recycler Business or a Used Automotive Parts Recycler Employee license?

License Type On-Time Renewal 1-90 days late 91 days – 18 months late
Used Automotive Parts Recycler Business $120 $180 $240
Used Automotive Parts Recycler Employee $30 $45 $60

Note: all renewal fees are non-refundable.

5. My Used Automotive Parts Recycler Business or my Used Automotive Parts Recycler Employee license is expired.  How do I get it back?

You must submit a renewal application, all required attachments, and the appropriate late renewal fees.

If your license has been expired for more than 18 months but less than 3 years, you may submit for approval a written request stating the reason your license should be renewed or “Request to Executive Director for Expired License Renewal” form with a fee in the amount equal to two times the normal renewal fee.

If your license has been expired for three (3) years or more, you may not renew your license. You must re-apply for a new license.

You may be subject to enforcement actions, including administrative penalties and sanctions, for operating with an expired license (expired less than 18 months), or operating without a license (expired 18 months or more).

If your renewal application is post marked before your expiration date, it is considered a timely renewal.


Storm Water Permit

1. Is a Used Automotive Parts Recycling business required to have a storm water permit?

An applicant must provide proof of a storm water permit to TDLR as part of an application for a UAPR business license, if the applicant is required by the Texas Commission on Environmental Quality (TCEQ) to obtain a permit. You must contact TCEQ to determine whether or not your facility is required to have a storm water permit at http://www.tceq.state.tx.us/assistance/sblga/water/sw.html or call (800) 447-2827.


Insurance

1. Does a Used Automotive Parts Recycling (UAPR) business have to have insurance?

Yes, a UAPR business must attach an ACORD Certificate of Insurance showing proof of General Liability or Garage Liability insurance with a combined single limit of not less than $250,000.

2. What are the requirements for the Certificate of Insurance?

  • Use a standard ACORD Certificate of Insurance form;
  • List the type of insurance, policy #, effective and expiration dates, and limits (Combined Single Limits $250,000);
  • Name and physical address of insured must match the company name and physical address on this application or be specified in the description of operations/locations area;
  • Indicate that the policy is for general liability OR garage liability;
  • Certificate holder must be: TDLR, PO Box 12157, Austin, TX 78701;
  • Insurance company will provide a 30 day written notice of cancellation or non-renewal to TDLR.
  • Example of a Certificate of Insurance.

3. Do salvage vehicle dealers also have to hold a Used Automotive Parts Recycler business license?

If the salvage vehicle dealer deals in used automotive parts as more than an incidental part of the salvage vehicle dealer's primary business, then the Act applies and registration as a UAPR is required.

4. What does “more than an incidental part of the salvage vehicle dealer's primary business” mean?

Whether used auto part recycling is incidental to a salvage dealer’s primary business is a question of fact that must be determined on a case by case basis. However, there is a guiding principle to help the question of whether an activity is incidental. Generally, “incidental” means occurring by chance or without intention. Therefore, if the salvage dealer sells recycled parts in a routine systematic way then it would appear to be more that incidental to the business.

5. My company sells used automotive parts but doesn’t dismantle vehicles. Are we required to have an Automotive Parts Recycling business license?

No.

6. I own a salvage yard. Do I need to register as a Used Automotive Parts Recycling business?

If your salvage yard fits within the definition of a UAPR, then yes, your salvage yard must register as a recycler with TDLR.

7. How do I determine whether a company is licensed as a Used Automotive Parts Recycler Business?

You can search for licensed UAPR businesses and employees through TDLR’s website.

8. What if a Used Automotive Parts Recycler business is not licensed or engages in fraudulent or deceptive practices?

You can report unlicensed activity or file any other complaint with TDLR through our online complaint process.


NAICS

1. What is a NAICS/SIC number?

NAICS stands for the North American Industrial Classification System. The NAICS is the standard coding system used by Federal agencies in classifying business establishments for the collection, analysis, and publication of statistical data related to the U.S. business economy. NAICS replaced the Standard Industrial Classification (SIC) system.

2. How do I know my SIC code?

A business establishment is assigned one NAICS/SIC code, based on its primary business activity. If your primary business activity is as a Used Automotive Parts Recycler your SIC number will be 5015

3. How do I know my NAICS code?

The Conversion table for NAICS numbers to SIC number 5015 is shown below. For more information regarding the NAICS and SIC numbers go to www.census.gov/eos/www/naics.

NAICS Code

NAICS Title

SIC Code

SIC Description

423140

Motor Vehicle Parts (Used) Merchant Wholesalers

5015

“Motor Vehicle Parts, Used (merchant wholesalers except those selling via retail method)”

425110

Business to Business Electronic Markets

5015

“Motor Vehicle Parts, Used (business to business electronic markets)”

425120

Wholesale Trade Agents and Brokers

5015

“Motor Vehicle Parts, Used (agents and brokers)”

441310

Automotive Parts and Accessories Stores

5015

“Motor Vehicle Parts, Used (used auto parts sold via the retail method)”

4. Can I use my SIC code instead?

Yes, if you don’t know your NAICS number you may list your SIC number on your application.

5. If my primary business activity is not as a Used Automotive Parts Recycler do I still need a license?

Yes. If you perform the activities involved in “used automotive parts recycling”, you must obtain a license.


If your question wasn’t answered here

For more information: email automotive.parts.recyclers@tdlr.texas.gov or call (800) 803-9202 or (512) 463-6599.

Used Automotive Parts Recycler Applications

 

Top of Page | Used Automotive Parts Recyclers Home Page | TDLR Home Page