SRC-DPW H.B. 2539 76(R)   BILL ANALYSIS


Senate Research Center   H.B. 2539
76R11027 DRH-DBy: Davis, Yvonne (Cain)
State Affairs
5/5/1999
Engrossed


DIGEST 

Currently, Texas law does not provide vehicle converters with access to
special temporary license plates that allow them to drive new, untitled,
and unregistered vehicles on Texas roads.  This bill would allow converters
to obtain special temporary license plates necessary to drive newly
converted vehicles to facilities that add equipment and to new car
dealerships for warranty repairs. 

PURPOSE

As proposed, H.B. 2539 sets forth guidelines for the issuance of temporary
license plates for vehicle converters. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 503C, Transportation Code, by adding Section
503.0625, as follows: 

Sec. 503.0625. CONVERTER'S TEMPORARY CARDBOARD TAGS.  Defines "converter."
Authorizes a converter to issue a temporary cardboard tag (tag) for use on
an unregistered vehicle by the converter or the converter's employee only
to demonstrate or cause to be demonstrated to a prospective buyer who is a
dealer the vehicle; or convey the vehicle from the converter's place of
business to certain destinations, from certain locations to the converter's
place of business, or to road test the vehicle.  Provides that Subsection
(b)(1) does not prohibit a converter from permitting a prospective buyer
who is a dealer to operate a vehicle while the vehicle is being
demonstrated.  Exempts a vehicle being conveyed under this section from the
inspection requirements of Chapter 548.  Prohibits the Texas Department of
Transportation from issuing a tag or contract for the issuance of a tag but
is required to prescribe the specifications, form, and color of a tag. 

SECTION 2. Effective date: September 1, 1999.

SECTION 3. Emergency clause.