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Texas Metal Regulations

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  1. #1
    thomaslpup started this thread.
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    Texas Metal Regulations

    I've been searching low and high trying to get a definitive answer for what level (if any) of licensing I need to acquire in my great state. For the past few years, I've been scrapping catalytic converters after having fallen into the business as a way to supplement income. I built up a small route of auto repair shops and small time junk car lots that will sell me their units. I in turn take these items directly to a refiner who pays on the spot.



    Recently, I've decided to attempt a scaling up of my business, while maintaining it's current structure. To be clear I won't be opening a scrap lot, or place where the general public can come and sell their items. I do however want to expand my route and client base through being proactive with marketing. In my research I've come across some seemingly restrictive, costly and honestly burdensome for businesses classified as "auto recyclers" by the TxDLR and "metal recycling entities" by the TxDPS. My refiner, of course is an approved MRE and does abides by all of these restrictions when I go sell a load. Maybe I'm foolish, but it never really crossed my mind that I too may be affected by these regulations.

    My question(s) are as follows:

    1) Am I classified as either an auto recycler or metal recycling entity? I never physically take possession of any junk car. When I buy catalytic converters they have already been removed from the vehicle. I do not have a physical location open to the public that one can come and receive payment for catalytic converters. (so I'm not a yard) I am simply the middle man between auto repair shops and the end user refinery and of course my profit is derived from this spread. Or am I free to continue to purchase and resell as I have been doing and attempt to scale up?

    If you are familiar with Texas in particular, I would especially appreciate any input. I've tried contacting the state directly and the "help" was very unhelpful in clarifying things. I've also come across a few threads on this board, but they didn't provide concrete answers for my gray area. Thank you guys in advance...
    Last edited by thomaslpup; 02-21-2015 at 01:20 PM.

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  3. #2
    Mechanic688's Avatar
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    Kind of sounds like to me that you have graduated up to being a core buyer. That's all I know about it.
    P & M Recycling - Specializing in E-Waste Recycling.
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    This is probably the wrong answer and I may get flamed, sent to the corner, or worse yet sent off to re-education camp.

    That being said, I would make sure your truck(s) are up to snuff with all TX DOT regs, register your business with the Great State of Texas, pay taxes to whom taxes are due, and keep flying from point A to point B under the radar.
    Money is not the root of all evil, the love of money is.

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  7. #4
    ScrappinRed's Avatar
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    Just curious... but where in Texas?
    ~You have to start somewhere to get anywhere~

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    thomaslpup started this thread.
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    Montgomery County

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    Quote Originally Posted by ScrappinRed View Post
    Just curious... but where in Texas?
    ...........
    "anyone who thinks scrappin is easy money ain't doin it right!"

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  13. #7
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    ...wait why is Olddude deviling me?! I am also a Texan and just wondered if we were neighbors

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    I'm an MRE in Texas. I'm not a lawyer or DPS agent, but I'm pretty sure you have to register as one of these in order to purchase cars or regulated scrap metal from the general public. You can make business to business purchases without registering. You can also purchase cans and/or most post consumer steel scrap (not cars) as they are not regulated. You do not have to register to sell material, but other proof of ownership may be needed on some items like ac reefers. Being a registered entity may prevent you from having to show this every time, basically because you are considered legitimate and you are expected to handle this when you make the purchase.

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  17. #9
    thomaslpup started this thread.
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    Quote Originally Posted by ccantu View Post
    I'm an MRE in Texas. I'm not a lawyer or DPS agent, but I'm pretty sure you have to register as one of these in order to purchase cars or regulated scrap metal from the general public. You can make business to business purchases without registering. You can also purchase cans and/or most post consumer steel scrap (not cars) as they are not regulated. You do not have to register to sell material, but other proof of ownership may be needed on some items like ac reefers. Being a registered entity may prevent you from having to show this every time, basically because you are considered legitimate and you are expected to handle this when you make the purchase.
    Thank you, I appreciate your insight!


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