(a) This chapter applies only to a business machine that has previously been sold at retail.
(b) This chapter does not apply to a business machine:
(1) acquired in good faith in a transaction involving the stock in trade of another secondhand dealer who previously made the reports on the machine required by this chapter if:
(A) the selling dealer delivers to the acquiring dealer a written document stating that the reports have been made;
(B) the acquiring dealer submits a copy of the statement to the chief of police of the municipality or the sheriff of the county in which the selling dealer is located; and
(C) each secondhand dealer involved in the transaction retains a copy of the statement required by this subdivision for three years after the date of the transaction;
(2) acquired in a nonjudicial sale, transfer, assignment, assignment for the benefit of creditors, or consignment of the assets or stock in trade, in bulk, or a substantial part of those assets, of an industrial or commercial enterprise, other than a secondhand dealer, for the voluntary dissolution or liquidation of the seller’s business, or for disposing of an excessive quantity of personal property, or property that has been acquired in a nonjudicial sale or transfer from an owner other than a secondhand dealer, the seller’s entire household of personal property, or a substantial part of that property, if the secondhand dealer:
(A) gives written notice to the chief of police of the municipality or the sheriff of the county in which the dealer’s business is located that a reporting exemption is being claimed under this subdivision;
(B) retains in the dealer’s place of business, for three years after the date of the transaction, a copy of the bill of sale, receipt, inventory list, or other transfer document; and
(C) makes the record retained available for inspection by any peace officer;
(3) acquired in a sale made:
(A) by any public officer in the officer’s official capacity as a trustee in bankruptcy, executor, administrator, receiver, or public official acting under judicial process or authority; or
(B) on the execution of, or by virtue of, any process issued by a court;
(4) acquired as surplus property from the United States, a state, a subdivision of a state, or a municipal corporation;
(5) reported by a secondhand dealer as an acquisition or a purchase, or reported as destroyed or otherwise disposed of, to:
(A) a state agency under another law of this state; or
(B) a municipal or county officer or agency under another law of this state or a municipal ordinance; or
(6) acquired by a person licensed under Chapter 371, Finance Code.