1-1 By: Alexander (Senate Sponsor - Cain) H.B. No. 1790
1-2 (In the Senate - Received from the House April 10, 1997;
1-3 April 11, 1997, read first time and referred to Committee on State
1-4 Affairs; May 16, 1997, reported favorably by the following vote:
1-5 Yeas 13, Nays 0; May 16, 1997, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to the licensing and regulation of certain motor vehicle
1-9 dealers.
1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11 SECTION 1. Section 503.026, Transportation Code, is amended
1-12 to read as follows:
1-13 Sec. 503.026. Requirement for Each Type of Dealer Vehicle.
1-14 A person must obtain a dealer general distinguishing number for
1-15 each type of vehicle [for which] the person intends to sell [issue
1-16 metal dealer's license plates under Subchapter C].
1-17 SECTION 2. Section 503.029(c), Transportation Code, is
1-18 amended to read as follows:
1-19 (c) A renewal application must be:
1-20 (1) submitted before the date the general
1-21 distinguishing number expires [not later than January 15]; and
1-22 (2) accompanied by the appropriate fee prescribed by
1-23 Section 503.007.
1-24 SECTION 3. Section 503.035, Transportation Code, is amended
1-25 to read as follows:
1-26 Sec. 503.035. ISSUANCE AND RENEWAL OF DRIVE-A-WAY IN-TRANSIT
1-27 LICENSE [AND GENERAL DISTINGUISHING NUMBER]. The department shall
1-28 issue to an applicant on the filing of the application and the
1-29 payment of the fee an annual drive-a-way in-transit license and
1-30 in-transit license plates [with the applicant's general
1-31 distinguishing number].
1-32 SECTION 4. Section 503.038(a), Transportation Code, is
1-33 amended to read as follows:
1-34 (a) The department may cancel a dealer's general
1-35 distinguishing number if the dealer:
1-36 (1) falsifies or forges [files] a [false or forged]
1-37 title document, including an affidavit making application for a
1-38 certified copy of a title;
1-39 (2) files a false or forged tax document, including a
1-40 sales tax affidavit;
1-41 (3) fails to take assignment of any basic evidence of
1-42 ownership, including a certificate of title or manufacturer's
1-43 certificate, for a vehicle the dealer acquires;
1-44 (4) fails to assign any basic evidence of ownership,
1-45 including a certificate of title or manufacturer's certificate, for
1-46 a vehicle the dealer sells;
1-47 (5) uses or permits the use of a metal dealer's
1-48 license plate or a dealer's temporary cardboard tag on a vehicle
1-49 that the dealer does not own or control or that is not in stock and
1-50 offered for sale;
1-51 (6) makes a material misrepresentation in an
1-52 application or other information filed with the department;
1-53 (7) fails to maintain the qualifications for a general
1-54 distinguishing number;
1-55 (8) fails to provide to the department within 30 days
1-56 after the date of demand by the department satisfactory and
1-57 reasonable evidence that the person is regularly and actively
1-58 engaged in business as a wholesale or retail dealer;
1-59 (9) has been licensed for at least 12 months and has
1-60 not assigned at least five vehicles during the previous 12-month
1-61 period;
1-62 (10) has failed to demonstrate compliance with
1-63 Sections 23.12, 23.121, and 23.122, Tax Code;
1-64 (11) uses or allows the use of the dealer's general
2-1 distinguishing number or the location for which the general
2-2 distinguishing number is issued to avoid the requirements of this
2-3 chapter;
2-4 (12) [(11)] misuses or allows the misuse of a
2-5 temporary cardboard tag authorized under this chapter;
2-6 (13) [(12)] refuses to show on a buyer's temporary
2-7 cardboard tag the date of sale or other reasonable information
2-8 required by the department; or
2-9 (14) [(13)] otherwise violates this chapter or a rule
2-10 adopted under this chapter.
2-11 SECTION 5. Subchapter C, Chapter 503, Transportation Code,
2-12 is amended by adding Section 503.0615 to read as follows:
2-13 Sec. 503.0615. PERSONALIZED PRESTIGE DEALER'S LICENSE
2-14 PLATES. (a) The department shall establish and issue personalized
2-15 prestige dealer's license plates. The department may not issue
2-16 identically lettered or numbered dealer's plates to more than one
2-17 dealer.
2-18 (b) The department shall establish procedures for continuous
2-19 application for and issuance of personalized prestige dealer's
2-20 license plates. A dealer must make a new application and pay a new
2-21 fee for each registration period for which the dealer seeks to
2-22 obtain personalized prestige dealer's license plates. A dealer who
2-23 obtains personalized prestige dealer's license plates has first
2-24 priority on those plates for each subsequent registration period
2-25 for which the dealer applies.
2-26 (c) The annual fee for personalized prestige dealer's
2-27 license plates is $40, in addition to any fee otherwise prescribed
2-28 by this chapter.
2-29 (d) The department may issue to an applicant only one set of
2-30 personalized prestige dealer's license plates for a vehicle for a
2-31 six-year period. The department may issue a new set of
2-32 personalized prestige dealer's license plates within the six-year
2-33 period if the applicant pays a fee of $50 in addition to the fees
2-34 required by Subsection (c).
2-35 (e) On application and payment of the required fee for a
2-36 registration period following the issuance of the plates, the
2-37 department shall issue a registration insignia.
2-38 (f) Of each fee collected by the department under this
2-39 section:
2-40 (1) $1.25 shall be deposited to the credit of the
2-41 state highway fund to defray the cost of administering this
2-42 section; and
2-43 (2) the remainder shall be deposited to the credit of
2-44 the general revenue fund.
2-45 SECTION 6. Section 503.062(d), Transportation Code, is
2-46 amended to read as follows:
2-47 (d) The department may not issue a dealer temporary
2-48 cardboard tag or contract for the issuance of a dealer temporary
2-49 cardboard tag but shall prescribe:
2-50 (1) the specifications, form, and color of a dealer
2-51 temporary cardboard tag; and
2-52 (2) the period for which a tag may be used for or by a
2-53 charitable organization.
2-54 SECTION 7. Section 503.063(e), Transportation Code, is
2-55 amended to read as follows:
2-56 (e) The department may not issue a buyer's tag or contract
2-57 for the issuance of a buyer's tag but shall prescribe the
2-58 specifications, color, and form of a buyer's tag.
2-59 SECTION 8. Section 503.066(c), Transportation Code, is
2-60 amended to read as follows:
2-61 (c) An application must be:
2-62 (1) submitted before the date the plate expires [not
2-63 later than January 15]; and
2-64 (2) accompanied by the appropriate fee prescribed by
2-65 Section 503.008.
2-66 SECTION 9. Section 503.093(a), Transportation Code, is
2-67 amended to read as follows:
2-68 (a) The department or any interested person may bring an
2-69 action, including an action for an injunction, to:
3-1 (1) enforce a provision of Subchapter B [relating to a
3-2 dealer or a person engaging in the business of conducting a
3-3 wholesale motor vehicle auction]; or
3-4 (2) prohibit a person from operating in violation of
3-5 the person's application for a general distinguishing number.
3-6 SECTION 10. Section 6.01(a), Texas Motor Vehicle Commission
3-7 Code (Article 4413(36), Vernon's Texas Civil Statutes), is amended
3-8 to read as follows:
3-9 (a) In the event the Commission determines, after a
3-10 proceeding conducted in accordance with this Act and the rules of
3-11 the Commission, that any person is violating or has violated any
3-12 provision of this Act, [or] any rule or order of the Commission
3-13 issued pursuant to this Act, or Section 503.038(a), Transportation
3-14 Code, the Commission may levy a civil penalty not to exceed
3-15 $10,000.00 for each day of violation and for each act of violation.
3-16 Notwithstanding a law to the contrary[, including without
3-17 limitation the provisions of Section 403.094(h), Government Code],
3-18 all civil penalties recovered under this Act shall be deposited in
3-19 the state treasury to the credit of the state highway fund.
3-20 SECTION 11. (a) In addition to the substantive changes made
3-21 by this Act, this Act conforms Section 503.038(a), Transportation
3-22 Code, to Section 3, Chapter 430, Acts of the 74th Legislature,
3-23 Regular Session, 1995.
3-24 (b) Section 3, Chapter 430, Acts of the 74th Legislature,
3-25 Regular Session, 1995, is repealed.
3-26 (c) To the extent of any conflict, this Act prevails over
3-27 another Act of the 75th Legislature, Regular Session, 1997,
3-28 relating to nonsubstantive additions to and corrections in enacted
3-29 codes.
3-30 SECTION 12. This Act takes effect September 1, 1997.
3-31 SECTION 13. The importance of this legislation and the
3-32 crowded condition of the calendars in both houses create an
3-33 emergency and an imperative public necessity that the
3-34 constitutional rule requiring bills to be read on three several
3-35 days in each house be suspended, and this rule is hereby suspended.
3-36 * * * * *