BILL ANALYSIS

H.B. 3861

By: Goldman

Transportation

Committee Report (Unamended)

BACKGROUND AND PURPOSE

Under current law, tax assessors-collectors are required to provide an online database and system, webDEALER, for auto dealerships to use; however, dealers are not required to participate in this system. The webDEALER system is used to manage buyers tags and process title applications. This system is designed to make processing dealer tags and titles fast and easy for dealerships throughout the state. Additionally, the system makes tag information easily available to law enforcement and supervising agencies. By processing applications digitally, tax assessors-collectors are able to process a greater amount per day and per employee. Additionally, webDEALER already has an inventory management system for dealers who are deputized by the tax assessors-collectors to distribute permanent metal licenses plates. Using this system allows for easy audits and tracking of inventory and helps law enforcement by providing for a coordinated and complete database of plate numbers, associated titles, and locations. Although tax assessors-collectors are required to offer the system, dealers are not required to use it, and as a result, dealers must go to the tax assessor-collector office, wait in line, and complete paperwork. This creates gridlock in the office, at the dealer, and for the buyer by delaying their title application. H.B. 3861 seeks to address this issue by requiring motor vehicle dealers to use the webDEALER system. 

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

H.B. 3861 amends the Transportation Code to require a motor vehicle dealer to use the electronic system designed by the Texas Department of Motor Vehicles and made available by a county assessor-collector to submit a title and registration application online in the name of the purchaser of a motor vehicle.

EFFECTIVE DATE

September 1, 2023.