AN ACT

 1-1     relating to issuance of exempt license plates.

 1-2           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-3           SECTION 1.  Section 502.201, Transportation Code, is amended

 1-4     by amending Subsections (d) and (f) and adding Subsection (g) to

 1-5     read as follows:

 1-6           (d)  The department shall [may] provide by rule for the

 1-7     issuance of specially designated license plates for vehicles that

 1-8     are exempt by law.  Except as provided by Subsection (g), the

 1-9     license plates must bear the word "exempt."

1-10           (f)  A person who operates on a public highway a vehicle

1-11     after the registration [license] has been revoked is liable for the

1-12     penalties for failing to register a vehicle.

1-13           (g)  The department shall provide by rule for the issuance of

1-14     regularly designed license plates not bearing the word "exempt" for

1-15     a vehicle that is exempt by law and that is:

1-16                 (1)  a law enforcement vehicle, if the agency certifies

1-17     to the department that the vehicle will be dedicated to law

1-18     enforcement activities;

1-19                 (2)  a vehicle exempt from inscription requirements

1-20     under a rule adopted as provided by Section 721.003; or

1-21                 (3)  a vehicle exempt from inscription requirements

1-22     under an order or ordinance adopted by a governing body of a

1-23     municipality or commissioners court of a county as provided by

 2-1     Section 721.005, if the applicant presents a copy of the order or

 2-2     ordinance.

 2-3           SECTION 2.  Subchapter E, Chapter 502, Transportation Code,

 2-4     is amended by adding Section 502.2015 to read as follows:

 2-5           Sec. 502.2015.  LIMITATION ON ISSUANCE OF EXEMPT LICENSE

 2-6     PLATES; SEIZURE OF CERTAIN VEHICLES.  (a)  The department may not

 2-7     issue exempt license plates for a vehicle owned by the United

 2-8     States, this state, or a political subdivision of this state unless

 2-9     when application is made for registration of the vehicle, the

2-10     person who under Section 502.202 has authority to certify to the

2-11     department that the vehicle qualifies for registration under that

2-12     section also certifies in writing to the department that there is

2-13     printed on each side of the vehicle, in letters that are at least

2-14     two inches high or in an emblem that is at least 100 square inches

2-15     in size, the name of the agency, department, bureau, board,

2-16     commission, or officer of the United States, this state, or the

2-17     political subdivision of this state that has custody of the

2-18     vehicle.  The letters or emblem must be of a color sufficiently

2-19     different from the body of the vehicle to be clearly legible from a

2-20     distance of 100 feet.

2-21           (b)  The department may not issue exempt license plates for a

2-22     vehicle owned by a person other than the United States, this state,

2-23     or a political subdivision of this state unless, when application

2-24     is made for registration of the vehicle, the person who under

2-25     Section 502.202 has authority to certify to the department that the

 3-1     vehicle qualifies for registration under that section also

 3-2     certifies in writing to the department that the name of the owner

 3-3     of the vehicle is printed on the vehicle in the manner prescribed

 3-4     by Subsection (a).

 3-5           (c)  A peace officer listed in Article 2.12, Code of Criminal

 3-6     Procedure, may seize a motor vehicle displaying exempt license

 3-7     plates if the vehicle is:

 3-8                 (1)  operated on a public highway; and

 3-9                 (2)  not identified in the manner prescribed by

3-10     Subsection (a) or (b), unless the vehicle is covered by Subsection

3-11     (f).

3-12           (d)  A peace officer who seizes a motor vehicle under

3-13     Subsection (c) may require that the vehicle be:

3-14                 (1)  moved to the nearest place of safety off the

3-15     main-traveled part of the highway; or

3-16                 (2)  removed and placed in the nearest vehicle storage

3-17     facility designated or maintained by the law enforcement agency

3-18     that employs the peace officer.

3-19           (e)  To obtain the release of the vehicle, in addition to any

3-20     other requirement of law, the owner of a vehicle seized under

3-21     Subsection (c) must:

3-22                 (1)  remedy the defect by identifying the vehicle as

3-23     required by Subsection (a) or (b); or

3-24                 (2)  agree in writing with the law enforcement agency

3-25     to provide evidence to that agency, before the 10th day after the

 4-1     date the vehicle is released, that the defect has been remedied by

 4-2     identifying the vehicle as required by Subsection (a) or (b).

 4-3           (f)  Subsections (a) and (b) do not apply to a vehicle to

 4-4     which Section 502.201(g) or 502.206 applies.

 4-5           (g)  For purposes of this section, an exempt license plate is

 4-6     a license plate issued by the department that is plainly marked

 4-7     with the word "exempt."

 4-8           SECTION 3.  (a)  In addition to the new changes in law made

 4-9     by this Act, this Act conforms the Transportation Code to the

4-10     changes in law made by Chapter 453, Acts of the 74th Legislature,

4-11     1995.

4-12           (b)  Chapter 453, Acts of the 74th Legislature, 1995, is

4-13     repealed.

4-14           (c)  To the extent of any conflict, this Act prevails over

4-15     another Act of the 75th Legislature, Regular Session, 1997,

4-16     relating to nonsubstantive additions to and corrections in enacted

4-17     codes.

4-18           SECTION 4.  This Act takes effect September 1, 1997.

4-19           SECTION 5.  The importance of this legislation and the

4-20     crowded condition of the calendars in both houses create an

4-21     emergency and an imperative public necessity that the

4-22     constitutional rule requiring bills to be read on three several

4-23     days in each house be suspended, and this rule is hereby suspended.

         _______________________________     _______________________________

             President of the Senate              Speaker of the House

               I hereby certify that S.B. No. 557 passed the Senate on

         March 13, 1997, by the following vote:  Yeas 31, Nays 0; and that

         the Senate concurred in House amendment on May 17, 1997, by a

         viva-voce vote.

                                             _______________________________

                                                 Secretary of the Senate

               I hereby certify that S.B. No. 557 passed the House, with

         amendment, on May 13, 1997, by a non-record vote.

                                             _______________________________

                                                 Chief Clerk of the House

         Approved:

         _______________________________

                     Date

         _______________________________

                   Governor