Texas Scrap Metal Dealer Registration

Texas regulates scrap metal dealers under Occupations Code Chapter 1956 — the Metal Recycling Entity (MRE) Act. Any person or business that purchases regulated materials (scrap metal, catalytic converters, copper wire) from the public must register with the Texas Department of Motor Vehicles (TxDMV) before operating.

Registration Requirements at a Glance

How to Register Step by Step

1. 1
   Gather required information — Business legal name, physical address of each location, EIN or SSN, names and contact information of all owners with 10%+ ownership interest, and any criminal history disclosures.
2. 2
   Create a TxDMV webDEALER account — Go to webdealer.txdmv.gov and create a new business account. Select "Metal Recycling Entity" as the license type.
3. 3
   Complete the application — Fill in all required fields. Each physical location requires a separate application and $50 fee. Mobile operations require registration at your home base address.
4. 4
   Pay the fee — $50 per location payable by credit card through the webDEALER portal. Processing typically takes 5–10 business days.
5. 5
   Post your license — Once approved, print your MRE license and post it conspicuously at each registered location. Texas law requires the license to be visibly posted during all business hours.
6. 6
   Renew annually by December 31 — Renewal notices are sent to your webDEALER account email. The $25 renewal fee must be paid before December 31 or your license lapses.

What Texas Requires at Each Transaction

For every purchase of regulated materials from an individual seller, Texas requires dealers to record and retain:

• Seller's full legal name, current residential address, and date of birth
• Type and number of government-issued photo ID (driver's license preferred)
• A description of the material purchased (type, weight, approximate value)
• Date and time of the transaction
• Amount paid and payment method
• For catalytic converters: the VIN of the source vehicle and proof of ownership (title or current registration)

Records must be retained for a minimum of 2 years and must be made available to law enforcement upon request during business hours.

Texas Prohibited Items

Texas dealers may NOT purchase the following, regardless of what documentation the seller provides:

• Manhole covers, water meter covers, or storm drain grates
• Guard rails or highway barrier cable
• Cemetery vases, plaques, or memorial markers
• Traffic signs or regulatory signs of any kind
• Railroad track, rail spikes, or railroad hardware
• Beer kegs with a brewery's name or trademark
• Copper wire still attached to electrical infrastructure or on utility spools
• Live or cut electrical wire from a construction site

Texas Catalytic Converter Requirements

Texas has some of the most detailed catalytic converter purchasing requirements in the nation. In addition to standard ID collection, Texas requires:

• The VIN of the vehicle the converter was removed from
• A signed, dated statement from the seller affirming they own the vehicle identified by that VIN
• Payment by check or electronic funds transfer only — no cash
• Copies of the seller's vehicle registration or title retained with transaction records
• Dealers may NOT purchase from persons under 18 years of age

See the catalytic converter laws guide for more detail on how Texas's requirements compare to other states.

Penalties for Non-Compliance in Texas

Texas scrap metal dealer requirements are set by the Texas Department of Motor Vehicles under Occupations Code Chapter 1956. Requirements change — verify current rules at txdmv.gov. This is not legal advice.