Most Common Code Violations for Used Automotive Parts Recyclers
1. Surrender of Vehicle Title. - 14 Tex. Occ. Code Ch. 2309.301(b) & 16 Tex. Admin. Code Ch. 87.50(a). Failure of a used automotive parts recycler to submit to the Texas Department of Motor Vehicles a properly assigned manufacturer's certificate of origin, regular certificate of title, non-repairable vehicle title, salvage vehicle title, other ownership document, or comparable out-of-state ownership document for the motor vehicle, before the 31st day after the date of acquiring the motor vehicle.
2. Removal & Disposal of License Plates. - 14 Tex. Occ. Code Ch. 2309.352 & 16 Tex. Admin. Code Ch. 87.73. Failure to immediately remove any unexpired license plates from the vehicle; and place the license plates in a secure place until destroyed by the used automotive parts recycler.
3. Unlicensed Activity. - 14 Tex. Occ. Code Ch. 2309.154(a) & 16 Tex. Admin. Code Ch. 87.24. 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.
4. Proof of Liability Insurance. § 14 Tex. Occ. Code Ch. 2309.153(2) & 16 Tex. Admin. Code Ch. 87.40. A used automotive parts recycling business may not conduct business or other automotive parts recycling operations in this state unless the licensee maintains a valid general liability insurance policy in an amount not less than $250,000.
5. Dismantlement or Disposition of Motor Vehicle - 14 Tex. Occ. Code Ch. 2309.353 & 16 Tex. Admin. Code Ch. 87.74. 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.
6. Records of Purchases. - 14 Tex. Occ. Code Ch. 2309.301(c) & 16 Tex. Admin. Code Ch. 87.78(b). For each vehicle for which a document is surrendered to the Texas Department of Motor Vehicles (DMV) for cancellation a certificate of title or authority, sales receipt, or transfer document, the licensee shall obtain a signed receipt for a surrendered certificate of title.
7. Failed to keep and maintain evidence of compliance with the DMV notification requirement. - 14 Tex. Occ. Code Ch. 2309.301(c) & 16 Tex. Admin. Code Ch. 87.50(b). Used automotive parts recyclers shall keep and maintain evidence of compliance with filing of vehicle ownership documents.
8. Unlicensed Activity. - 14 Tex. Occ. Code Ch. 2309.151(a), 16 Tex. Admin. Code Ch. 87.20(a) & 16 Tex. Admin. Code Ch. 87.23(b). Performed a function of an automotive parts recycling business without a license or while license expired.