1-1 AN ACT
1-2 relating to the licensing and regulation of certain motor vehicle
1-3 dealers.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 503.026, Transportation Code, is amended
1-6 to read as follows:
1-7 Sec. 503.026. Requirement for Each Type of Dealer Vehicle.
1-8 A person must obtain a dealer general distinguishing number for
1-9 each type of vehicle [for which] the person intends to sell [issue
1-10 metal dealer's license plates under Subchapter C].
1-11 SECTION 2. Section 503.029(c), Transportation Code, is
1-12 amended to read as follows:
1-13 (c) A renewal application must be:
1-14 (1) submitted before the date the general
1-15 distinguishing number expires [not later than January 15]; and
1-16 (2) accompanied by the appropriate fee prescribed by
1-17 Section 503.007.
1-18 SECTION 3. Section 503.035, Transportation Code, is amended
1-19 to read as follows:
1-20 Sec. 503.035. ISSUANCE AND RENEWAL OF DRIVE-A-WAY IN-TRANSIT
1-21 LICENSE [AND GENERAL DISTINGUISHING NUMBER]. The department shall
1-22 issue to an applicant on the filing of the application and the
1-23 payment of the fee an annual drive-a-way in-transit license and
1-24 in-transit license plates [with the applicant's general
2-1 distinguishing number].
2-2 SECTION 4. Section 503.038(a), Transportation Code, is
2-3 amended to read as follows:
2-4 (a) The department may cancel a dealer's general
2-5 distinguishing number if the dealer:
2-6 (1) falsifies or forges [files] a [false or forged]
2-7 title document, including an affidavit making application for a
2-8 certified copy of a title;
2-9 (2) files a false or forged tax document, including a
2-10 sales tax affidavit;
2-11 (3) fails to take assignment of any basic evidence of
2-12 ownership, including a certificate of title or manufacturer's
2-13 certificate, for a vehicle the dealer acquires;
2-14 (4) fails to assign any basic evidence of ownership,
2-15 including a certificate of title or manufacturer's certificate, for
2-16 a vehicle the dealer sells;
2-17 (5) uses or permits the use of a metal dealer's
2-18 license plate or a dealer's temporary cardboard tag on a vehicle
2-19 that the dealer does not own or control or that is not in stock and
2-20 offered for sale;
2-21 (6) makes a material misrepresentation in an
2-22 application or other information filed with the department;
2-23 (7) fails to maintain the qualifications for a general
2-24 distinguishing number;
2-25 (8) fails to provide to the department within 30 days
2-26 after the date of demand by the department satisfactory and
2-27 reasonable evidence that the person is regularly and actively
3-1 engaged in business as a wholesale or retail dealer;
3-2 (9) has been licensed for at least 12 months and has
3-3 not assigned at least five vehicles during the previous 12-month
3-4 period;
3-5 (10) has failed to demonstrate compliance with
3-6 Sections 23.12, 23.121, and 23.122, Tax Code;
3-7 (11) uses or allows the use of the dealer's general
3-8 distinguishing number or the location for which the general
3-9 distinguishing number is issued to avoid the requirements of this
3-10 chapter;
3-11 (12) [(11)] misuses or allows the misuse of a
3-12 temporary cardboard tag authorized under this chapter;
3-13 (13) [(12)] refuses to show on a buyer's temporary
3-14 cardboard tag the date of sale or other reasonable information
3-15 required by the department; or
3-16 (14) [(13)] otherwise violates this chapter or a rule
3-17 adopted under this chapter.
3-18 SECTION 5. Subchapter C, Chapter 503, Transportation Code,
3-19 is amended by adding Section 503.0615 to read as follows:
3-20 Sec. 503.0615. PERSONALIZED PRESTIGE DEALER'S LICENSE
3-21 PLATES. (a) The department shall establish and issue personalized
3-22 prestige dealer's license plates. The department may not issue
3-23 identically lettered or numbered dealer's plates to more than one
3-24 dealer.
3-25 (b) The department shall establish procedures for continuous
3-26 application for and issuance of personalized prestige dealer's
3-27 license plates. A dealer must make a new application and pay a new
4-1 fee for each registration period for which the dealer seeks to
4-2 obtain personalized prestige dealer's license plates. A dealer who
4-3 obtains personalized prestige dealer's license plates has first
4-4 priority on those plates for each subsequent registration period
4-5 for which the dealer applies.
4-6 (c) The annual fee for personalized prestige dealer's
4-7 license plates is $40, in addition to any fee otherwise prescribed
4-8 by this chapter.
4-9 (d) The department may issue to an applicant only one set of
4-10 personalized prestige dealer's license plates for a vehicle for a
4-11 six-year period. The department may issue a new set of
4-12 personalized prestige dealer's license plates within the six-year
4-13 period if the applicant pays a fee of $50 in addition to the fees
4-14 required by Subsection (c).
4-15 (e) On application and payment of the required fee for a
4-16 registration period following the issuance of the plates, the
4-17 department shall issue a registration insignia.
4-18 (f) Of each fee collected by the department under this
4-19 section:
4-20 (1) $1.25 shall be deposited to the credit of the
4-21 state highway fund to defray the cost of administering this
4-22 section; and
4-23 (2) the remainder shall be deposited to the credit of
4-24 the general revenue fund.
4-25 SECTION 6. Section 503.062(d), Transportation Code, is
4-26 amended to read as follows:
4-27 (d) The department may not issue a dealer temporary
5-1 cardboard tag or contract for the issuance of a dealer temporary
5-2 cardboard tag but shall prescribe:
5-3 (1) the specifications, form, and color of a dealer
5-4 temporary cardboard tag; and
5-5 (2) the period for which a tag may be used for or by a
5-6 charitable organization.
5-7 SECTION 7. Section 503.063(e), Transportation Code, is
5-8 amended to read as follows:
5-9 (e) The department may not issue a buyer's tag or contract
5-10 for the issuance of a buyer's tag but shall prescribe the
5-11 specifications, color, and form of a buyer's tag.
5-12 SECTION 8. Section 503.066(c), Transportation Code, is
5-13 amended to read as follows:
5-14 (c) An application must be:
5-15 (1) submitted before the date the plate expires [not
5-16 later than January 15]; and
5-17 (2) accompanied by the appropriate fee prescribed by
5-18 Section 503.008.
5-19 SECTION 9. Section 503.093(a), Transportation Code, is
5-20 amended to read as follows:
5-21 (a) The department or any interested person may bring an
5-22 action, including an action for an injunction, to:
5-23 (1) enforce a provision of Subchapter B [relating to a
5-24 dealer or a person engaging in the business of conducting a
5-25 wholesale motor vehicle auction]; or
5-26 (2) prohibit a person from operating in violation of
5-27 the person's application for a general distinguishing number.
6-1 SECTION 10. Section 6.01(a), Texas Motor Vehicle Commission
6-2 Code (Article 4413(36), Vernon's Texas Civil Statutes), is amended
6-3 to read as follows:
6-4 (a) In the event the Commission determines, after a
6-5 proceeding conducted in accordance with this Act and the rules of
6-6 the Commission, that any person is violating or has violated any
6-7 provision of this Act, [or] any rule or order of the Commission
6-8 issued pursuant to this Act, or Section 503.038(a), Transportation
6-9 Code, the Commission may levy a civil penalty not to exceed
6-10 $10,000.00 for each day of violation and for each act of violation.
6-11 Notwithstanding a law to the contrary[, including without
6-12 limitation the provisions of Section 403.094(h), Government Code],
6-13 all civil penalties recovered under this Act shall be deposited in
6-14 the state treasury to the credit of the state highway fund.
6-15 SECTION 11. (a) In addition to the substantive changes made
6-16 by this Act, this Act conforms Section 503.038(a), Transportation
6-17 Code, to Section 3, Chapter 430, Acts of the 74th Legislature,
6-18 Regular Session, 1995.
6-19 (b) Section 3, Chapter 430, Acts of the 74th Legislature,
6-20 Regular Session, 1995, is repealed.
6-21 (c) To the extent of any conflict, this Act prevails over
6-22 another Act of the 75th Legislature, Regular Session, 1997,
6-23 relating to nonsubstantive additions to and corrections in enacted
6-24 codes.
6-25 SECTION 12. This Act takes effect September 1, 1997.
6-26 SECTION 13. The importance of this legislation and the
6-27 crowded condition of the calendars in both houses create an
7-1 emergency and an imperative public necessity that the
7-2 constitutional rule requiring bills to be read on three several
7-3 days in each house be suspended, and this rule is hereby suspended.
_______________________________ _______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 1790 was passed by the House on April
9, 1997, by a non-record vote.
_______________________________
Chief Clerk of the House
I certify that H.B. No. 1790 was passed by the Senate on May
26, 1997, by the following vote: Yeas 31, Nays 0.
_______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor