The department may suspend or revoke a license or impose an administrative penalty if the license holder:
  (1) fails to meet or maintain the qualifications and requirements for a license;
  (2) violates any law relating to the purchase, sale, exchange, storage, or distribution of motor vehicles, including salvage motor vehicles and nonrepairable motor vehicles;
  (3) willfully defrauds a purchaser;
  (4) fails to maintain purchase, sales, and inventory records as required by Occupations Code, Chapter 2302, Transportation Code, Chapter 501, Chapter 217, Subchapter D of this title, or this chapter;
  (5) refuses or fails to comply with a request by the department to examine, during normal business hours, the license holder's records as required by Occupations Code, Chapter 2302, or this chapter;
  (6) engages in motor vehicle or salvage business without the required license;
  (7) engages in business as a salvage vehicle dealer at a location for which a license has not been issued by the department;
  (8) fails to notify the department of a change of the salvage vehicle dealer's license holder information as required under §221.19 of this title (relating to Notice of Change in License Holder Information);
  (9) fails to notify the department of a change in location prior to operating in a new location or closing a location in accordance with §221.18 of this title (relating to Additional, New, or Closed Location);
  (10) fails to remain regularly and actively engaged in the business for which the salvage vehicle dealer license is issued;
  (11) sells more than five (5) nonrepairable motor vehicles or salvage motor vehicles to the same person in a casual sale during a calendar year;
  (12) violates any provision of Occupations Code Chapters 2301 or 2302, Transportation Code Chapters 501, 502, or 503, or any board rule or order promulgated under those statutes;
  (13) uses or allows use of the salvage vehicle dealer's license or business location for the purpose of avoiding the requirements of Occupations Code Chapters 2301 or 2302, Transportation Code, Chapters 501, 502 or 503, or any board rule or order promulgated under those statutes;
  (14) violates any law, ordinance, rule or regulation governing the purchase, sale, exchange, or storage, of salvage motor vehicles or nonrepairable motor vehicles;
  (15) sells or offers for sale a nonrepairable motor vehicle or a salvage motor vehicle from any location other than the salvage vehicle dealer's licensed business location;
  (16) is, or any owner, officer, director, or other person described in §211.2 of this title (relating to Application of Subchapter), is convicted, or considered convicted under Occupations Code §53.021(d), by any local, state, federal, or foreign authority, of an offense that directly relates to the duties or responsibilities of the licensed occupation as described in §211.3 of this title (relating to Criminal Offense Guidelines) or an offense that is independently disqualifying under Occupations Code §53.021 after initial issuance or renewal of the salvage vehicle dealer license, or that has not been reported to the department as required;
  (17) makes a false statement, material misrepresentation, or material omission in any application or other information filed with the department;
  (18) fails to timely remit payment for administrative penalties imposed by the department;
  (19) engages in business without a license required under Occupations Code Chapters 2301 or 2302, or Transportation Code Chapter 503;
  (20) operates a salvage motor vehicle or a nonrepairable motor vehicle on public highways or allows another person to operate a salvage motor vehicle or a nonrepairable motor vehicle on public highways; or
  (21) deals in used automotive parts as more than an incidental part of the salvage vehicle dealer's primary business.

Source Note: The provisions of this §221.112 adopted to be effective December 9, 2015, 40 TexReg 8802; amended to be effective October 31, 2020, 45 TexReg 7444; amended to be effective June 1, 2024, 49 TexReg 2760