The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise, or the words or terms conflict with a definition in the Transportation Code, §501.002 or §501.091, or Occupations Code, Chapter 2309.
  (1) Casual sale--The sale by a salvage vehicle dealer or an insurance company of not more than five nonrepairable motor vehicles or salvage motor vehicles to the same person during a calendar year. The term does not include:
    (A) a sale at auction to a salvage vehicle dealer;
    (B) the sale of an export-only motor vehicle to a person who is not a resident of the United States; or
    (C) a sale to an insurance company, out-of-state buyer, or governmental entity.
  (2) Commission--The Texas Commission of Licensing and Regulation.
  (3) Component part--A major component part as defined by Transportation Code, §501.091, or a minor component part.
  (4) Department--The Texas Department of Licensing and Regulation.
  (5) Executive director--the executive director of the department.
  (6) Insurance company--
    (A) a person authorized to write automobile insurance in this state; or
    (B) an out-of-state insurance company that pays a loss claim for a motor vehicle in this state.
  (7) Major component part--One of the following parts of a motor vehicle:
    (A) the engine;
    (B) the transmission;
    (C) the frame;
    (D) a fender;
    (E) the hood;
    (F) a door allowing entrance to or egress from the passenger compartment of the motor vehicle;
    (G) a bumper;
    (H) a quarter panel;
    (I) a deck lid, tailgate, or hatchback;
    (J) the cargo box of a vehicle with a gross vehicle weight of 10,000 pounds or less, including a pickup truck;
    (K) the cab of a truck;
    (L) the body of a passenger motor vehicle; or
    (M) the roof or floor pan of a passenger motor vehicle, if separate from the body of the motor vehicle.
  (8) Metal recycler--A person who:
    (A) is engaged in the business of obtaining, converting, or selling ferrous or nonferrous metal for conversion into raw material products consisting of prepared grades and having an existing or potential economic value;
    (B) has a facility to convert ferrous or nonferrous metal into raw material products by method other than the exclusive use of hand tools, including the processing, sorting, cutting, classifying, cleaning, baling, wrapping, shredding, shearing, or changing the physical form or chemical content of the metal; and
    (C) sells or purchases the ferrous or nonferrous metal solely for use as raw material in the production of new products.
  (9) Motor vehicle--
    (A) any motor driven or propelled vehicle required to be registered under the laws of this state;
    (B) a trailer or semitrailer, other than manufactured housing, that has a gross vehicle weight that exceeds 4,000 pounds;
    (C) a travel trailer;
    (D) an all-terrain vehicle or a recreational off-highway vehicle, as defined by Transportation Code, §502.001, designed by the manufacturer for off-highway use that is not required to be registered under the laws of this state; or
    (E) a motorcycle, motor-driven cycle, or moped that is not required to be registered under the laws of this state.
  (10) Nonrepairable motor vehicle--means a motor vehicle:
    (A) that is damaged, wrecked, or burned to the extent that the only residual value of the vehicle is as a source of parts or scrap metal;
    (B) that comes into this state under a comparable ownership document that indicates that the vehicle is nonrepairable;
    (C) that a salvage vehicle dealer has reported to the Texas Department of Motor Vehicles under Transportation Code §501.1003;
    (D) for which an owner has surrendered evidence of ownership for the purpose of dismantling, scrapping, or destroying the motor vehicle; or
    (E) that is sold for export only under Transportation Code §501.099.
  (11) Nonrepairable vehicle title--A printed document issued by the Texas Department of Motor Vehicles that evidences ownership of a nonrepairable motor vehicle.
  (12) Salvage motor vehicle--A motor vehicle that:
    (A) has damage to or is missing a major component part to the extent that the cost of repairs, including parts and labor other than the cost of materials and labor for repainting the motor vehicle and excluding sales tax on the total cost of repairs, exceeds the actual cash value of the motor vehicle immediately before the damage; or
    (B) comes into this state under an out-of-state salvage motor vehicle title or similar out-of-state ownership document.
  (13) Salvage vehicle dealer--A person engaged in this state in the business of acquiring, selling, repairing, rebuilding, reconstructing, or otherwise dealing in nonrepairable motor vehicles, salvage motor vehicles, or, if incidental to a salvage motor vehicle dealer's primary business, used automotive parts regardless of whether the person holds a license issued by the department to engage in that business. The term does not include a person not licensed as a salvage vehicle dealer who:
    (A) casually repairs, rebuilds, or reconstructs not more than five nonrepairable motor vehicles or salvage motor vehicles in the same calendar year;
    (B) buys not more than five nonrepairable motor vehicles or salvage motor vehicles in the same calendar year; or
    (C) is a licensed used automotive parts recycler if the sale of repaired, rebuilt, or reconstructed nonrepairable motor vehicles or salvage motor vehicles is more than an incidental part of the used automotive parts recycler's business.
  (14) Salvage vehicle title--A printed document issued by the Texas Department of Motor Vehicles that evidences ownership of a salvage motor vehicle.
  (15) Used automotive part--A part that is salvaged, dismantled, or removed from a motor vehicle for resale as is or as repaired. The term includes a major component part but does not include a rebuildable or rebuilt core, including an engine, block, crankshaft, transmission, or other core part that is acquired, possessed, or transferred in the ordinary course of business.

Source Note: The provisions of this §87.10 adopted to be effective January 11, 2010, 35 TexReg 232; amended to be effective February 15, 2019, 44 TexReg 586