What a Texas Used Auto Parts Recycler License Means
What TDLR requires of licensed auto salvage yards under Occupations Code Chapter 2309: insurance, storm water permits, title handling, purchase records, parts holding periods and operating hours.
Who needs the license
Texas has licensed salvage yards that dismantle vehicles and sell used parts since the Used Automotive Parts Recycling Act took effect in 2010 (TDLR FAQ). The rule is simple: a person may not own or operate a used automotive parts recycling business, or sell used automotive parts, without a TDLR Used Automotive Parts Recycler license (Occupations Code §2309.151). The law defines that business as dismantling and reusing or reselling used parts and safely disposing of salvage or nonrepairable vehicles, including reselling those vehicles.
Each license covers one facility. A company with several yards needs a license for each location. Licenses are renewed every year, which is why each listing on this site shows an expiry date.
What it takes to get licensed
Under §2309.153 an applicant must provide a federal tax identification number, proof of general liability insurance of at least $250,000, and proof of a storm water permit if the Texas Commission on Environmental Quality requires one. TDLR's FAQ adds that the principals of the business must pass a criminal background check. City ordinances and permits can apply on top of the state license (§2309.201).
Duties when a recycler buys a vehicle
- Title. A recycler that acquires a salvage motor vehicle must obtain a properly assigned title from the previous owner. If it acquires a vehicle to dismantle, scrap or destroy, it must submit the title or other ownership document to the state before the 31st day after acquiring it (§2309.301).
- No dismantling without paperwork. It may not dismantle or dispose of a vehicle until it has a certificate of title showing no liens (or all liens released), or a certificate of authority, sales receipt or transfer document issued under the abandoned-vehicle law (§2309.353).
- Plates. Immediately on receiving a vehicle, it must remove any unexpired license plates and keep them in a secure place until it destroys them (§2309.352).
- No-title purchases. TxDMV now allows recyclers to dismantle a vehicle bought without a title only if it is at least 13 years old and unregistered for at least 7 years, with a report to TxDMV within 24 hours (TxDMV).
Records and holding periods for parts
The law includes theft-prevention rules for parts the recycler buys:
- It must keep a record of, or a sales receipt for, every vehicle and used part it purchases (§2309.302).
- For each used component part bought or delivered, the record must show the date, the seller's driver's license number with a legible photocopy of the license, and a description of the part (§2309.354). Some interior and accessory parts from vehicles over 10 years old, and parts from licensed recyclers or commercial carriers, are exempt.
- It must keep each component part in its original condition on its premises for at least three calendar days, excluding Sundays, after obtaining it (§2309.355).
- It must keep the records until the first anniversary of the purchase (§2309.356).
If someone offers to buy parts from you, expect to show your driver's license. That is the law working as intended.
Operating hours for heavy machinery
A recycler may not operate heavy machinery at its facility between 7 p.m. and 7 a.m., except for activity necessary to a sale or purchase (§2309.402). Neighbors of a yard sometimes find this useful to know.
Who is not covered
Metal recyclers (scrap metal buyers) generally fall outside Chapter 2309, unless a vehicle is sold to them as a source of used parts and is used that way (§2309.003). Salvage vehicle dealers licensed by TxDMV are also outside it, unless dealing in used parts is more than an incidental part of their business (§2309.004). So a scrap metal yard or a salvage auction may not appear here even though it buys vehicles.
Why this matters when you sell
These duties protect sellers as well as the public. Because a licensed recycler must collect the title, record the purchase and remove the plates, there is a paper trail showing the vehicle left your hands, and the recycler has every reason to complete the transfer properly. A buyer operating without a license has none of those obligations, and if something goes wrong you may have little to point to. That is why every listing on this site shows the license number and expiry from TDLR's file.
Questions to ask a yard
- What is your TDLR license number, and is it for this location?
- Do you tow, or do I need to arrange towing? Is towing included in the price?
- What documents do you need from me, and do you take vehicles without a title that meet the TxDMV rule?
- How and when do you pay, and will I get a receipt showing your license number and the VIN?
How to check a license and complain
- Search the business on TDLR's license search, or find it here: every listing shows the license number and expiry from TDLR's daily file.
- TDLR publishes final disciplinary orders and accepts complaints against recyclers at tdlr.texas.gov/complaints.
License numbers on paperwork
Ask for the recycler's license number on your receipt or bill of sale. It ties the transaction to a specific licensed facility, which helps if you later need TxDMV, TDLR or the police to trace the vehicle. If a yard has several locations, check that the number matches the yard you are dealing with, since each location holds its own license.
What the license does not tell you
A license shows the yard is authorized to operate. It does not rate prices, part quality or customer service, and it does not mean the yard has a particular part in stock. Call ahead, and for parts read our buying guide.
General information only, current as of the date above. The information on Texas Salvage Yard Check is not a recommendation or a guarantee of anyone's work. A license record shows registration status on the date shown, not workmanship, insurance coverage at the time of your job, or suitability for your project. Confirm license, insurance and permits directly before you hire. Rules and programs change; check the official sources linked in this guide.