1-1                                   AN ACT
 1-2     relating to the issuance of license plates for vehicle converters.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Subchapter C, Chapter 503, Transportation Code,
 1-5     is amended by adding Section 503.0618 to read as follows:
 1-6           Sec. 503.0618.  CONVERTER'S LICENSE PLATES.  (a)  In this
 1-7     section, "converter" means a person who holds a converter's license
 1-8     issued under the Texas Motor Vehicle Commission Code (Article
 1-9     4413(36), Vernon's Texas Civil Statutes).
1-10           (b)  Instead of registering under Chapter 502 a vehicle that
1-11     a converter operates or permits to be operated on a public street
1-12     or highway, the converter may apply for, receive, and attach metal
1-13     converter's license plates to the vehicle if it is the type of
1-14     vehicle that the converter is engaged in the business of assembling
1-15     or modifying.
1-16           (c)  The fee for a metal converter's license plate is $20.
1-17           (d)  The department shall prescribe the form of an
1-18     application under this section.
1-19           SECTION 2.  Subchapter C, Chapter 503, Transportation Code,
1-20     is amended by adding Section 503.0625 to read as follows:
1-21           Sec. 503.0625.  CONVERTER'S TEMPORARY CARDBOARD TAGS.  (a)
1-22     In this section, "converter" means a person who holds a converter's
1-23     license issued under the Texas Motor Vehicle  Commission Code
1-24     (Article 4413(36), Vernon's Texas Civil Statutes).
 2-1           (b)  A converter may issue a temporary cardboard tag for use
 2-2     on an unregistered vehicle by the converter or the converter's
 2-3     employees only to:
 2-4                 (1)  demonstrate or cause to be demonstrated to a
 2-5     prospective buyer who is an employee of a franchised motor vehicle
 2-6     dealer the vehicle; or
 2-7                 (2)  convey or cause to be conveyed the vehicle:
 2-8                       (A)  from one of the converter's places of
 2-9     business in this state to another of the converter's places of
2-10     business in this state;
2-11                       (B)  from the converter's place of business to a
2-12     place the vehicle is to be assembled, repaired, reconditioned,
2-13     modified, or serviced;
2-14                       (C)  from the state line or a location in this
2-15     state where the vehicle is unloaded to the converter's place of
2-16     business;
2-17                       (D)  from the converter's place of business to a
2-18     place of business of a franchised motor vehicle dealer; or
2-19                       (E)  to road test the vehicle.
2-20           (c)  Subsection (b)(1) does not prohibit a converter from
2-21     permitting a prospective buyer who is an employee of a franchised
2-22     motor vehicle dealer to operate a vehicle while the vehicle is
2-23     being demonstrated.
2-24           (d)  A vehicle being conveyed while displaying a temporary
2-25     tag issued under this section is exempt from the inspection
2-26     requirements of Chapter 548.
2-27           (e)  The department may not issue a converter temporary
 3-1     cardboard tag or contract for the issuance of a converter temporary
 3-2     cardboard tag but shall prescribe the specifications, form, and
 3-3     color of a converter temporary cardboard tag.
 3-4           (f)  A converter or employee of a converter may not use a
 3-5     temporary cardboard tag issued under this section as authorization
 3-6     to operate a vehicle for the converter's or the employee's personal
 3-7     use.
 3-8           SECTION 3.  This Act takes effect September 1, 1999.
 3-9           SECTION 4.  The importance of this legislation and the
3-10     crowded condition of the calendars in both houses create an
3-11     emergency and an imperative public necessity that the
3-12     constitutional rule requiring bills to be read on three several
3-13     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. 2539 was passed by the House on April
         23, 1999, by a non-record vote; and that the House concurred in
         Senate amendments to H.B. No. 2539 on May 26, 1999, by a non-record
         vote.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 2539 was passed by the Senate, with
         amendments, on May 24, 1999, by the following vote:  Yeas 30, Nays
         0.
                                             _______________________________
                                                 Secretary of the Senate
         APPROVED:  _____________________
                            Date
                    _____________________
                          Governor