Sec. 1805.002.  APPLICATION TO BUSINESS MACHINES.  (a)  This chapter applies only to a business machine that has previously been sold at retail.
(b)  This chapter does not apply to a business machine:
(1)  acquired in good faith in a transaction involving the stock in trade of another secondhand dealer who previously made the reports on the machine required by this chapter if:
(A)  the selling dealer delivers to the acquiring dealer a written document stating that the reports have been made;
(B)  the acquiring dealer submits a copy of the statement to the chief of police of the municipality or the sheriff of the county in which the selling dealer is located;  and
(C)  each secondhand dealer involved in the transaction retains a copy of the statement required by this subdivision for three years after the date of the transaction;
(2)  acquired in a nonjudicial sale, transfer, assignment, assignment for the benefit of creditors, or consignment of the assets or stock in trade, in bulk, or a substantial part of those assets, of an industrial or commercial enterprise, other than a secondhand dealer, for the voluntary dissolution or liquidation of the seller's business, or for disposing of an excessive quantity of personal property, or property that has been acquired in a nonjudicial sale or transfer from an owner other than a secondhand dealer, the seller's entire household of personal property, or a substantial part of that property, if the secondhand dealer:
(A)  gives written notice to the chief of police of the municipality or the sheriff of the county in which the dealer's business is located that a reporting exemption is being claimed under this subdivision;
(B)  retains in the dealer's place of business, for three years after the date of the transaction, a copy of the bill of sale, receipt, inventory list, or other transfer document;  and
(C)  makes the record retained available for inspection by any peace officer;
(3)  acquired in a sale made:
(A)  by any public officer in the officer's official capacity as a trustee in bankruptcy, executor, administrator, receiver, or public official acting under judicial process or authority;  or
(B)  on the execution of, or by virtue of, any process issued by a court;
(4)  acquired as surplus property from the United States, a state, a subdivision of a state, or a municipal corporation;
(5)  reported by a secondhand dealer as an acquisition or a purchase, or reported as destroyed or otherwise disposed of, to:
(A)  a state agency under another law of this state;  or
(B)  a municipal or county officer or agency under another law of this state or a municipal ordinance;  or
(6)  acquired by a person licensed under Chapter 371, Finance Code.
Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.