1-1 By: Davis of Dallas (Senate Sponsor - Cain) H.B. No. 2539 1-2 (In the Senate - Received from the House April 26, 1999; 1-3 April 27, 1999, read first time and referred to Committee on State 1-4 Affairs; May 14, 1999, reported adversely, with favorable Committee 1-5 Substitute by the following vote: Yeas 8, Nays 0; May 14, 1999, 1-6 sent to printer.) 1-7 COMMITTEE SUBSTITUTE FOR H.B. No. 2539 By: Cain 1-8 A BILL TO BE ENTITLED 1-9 AN ACT 1-10 relating to the issuance of license plates for vehicle converters. 1-11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-12 SECTION 1. Subchapter C, Chapter 503, Transportation Code, 1-13 is amended by adding Section 503.0618 to read as follows: 1-14 Sec. 503.0618. CONVERTER'S LICENSE PLATES. (a) In this 1-15 section, "converter" means a person who holds a converter's license 1-16 issued under the Texas Motor Vehicle Commission Code (Article 1-17 4413(36), Vernon's Texas Civil Statutes). 1-18 (b) Instead of registering under Chapter 502 a vehicle that 1-19 a converter operates or permits to be operated on a public street 1-20 or highway, the converter may apply for, receive, and attach metal 1-21 converter's license plates to the vehicle if it is the type of 1-22 vehicle that the converter is engaged in the business of assembling 1-23 or modifying. 1-24 (c) The fee for a metal converter's license plate is $20. 1-25 (d) The department shall prescribe the form of an 1-26 application under this section. 1-27 SECTION 2. Subchapter C, Chapter 503, Transportation Code, 1-28 is amended by adding Section 503.0625 to read as follows: 1-29 Sec. 503.0625. CONVERTER'S TEMPORARY CARDBOARD TAGS. (a) 1-30 In this section, "converter" means a person who holds a converter's 1-31 license issued under the Texas Motor Vehicle Commission Code 1-32 (Article 4413(36), Vernon's Texas Civil Statutes). 1-33 (b) A converter may issue a temporary cardboard tag for use 1-34 on an unregistered vehicle by the converter or the converter's 1-35 employees only to: 1-36 (1) demonstrate or cause to be demonstrated to a 1-37 prospective buyer who is an employee of a franchised motor vehicle 1-38 dealer the vehicle; or 1-39 (2) convey or cause to be conveyed the vehicle: 1-40 (A) from one of the converter's places of 1-41 business in this state to another of the converter's places of 1-42 business in this state; 1-43 (B) from the converter's place of business to a 1-44 place the vehicle is to be assembled, repaired, reconditioned, 1-45 modified, or serviced; 1-46 (C) from the state line or a location in this 1-47 state where the vehicle is unloaded to the converter's place of 1-48 business; 1-49 (D) from the converter's place of business to a 1-50 place of business of a franchised motor vehicle dealer; or 1-51 (E) to road test the vehicle. 1-52 (c) Subsection (b)(1) does not prohibit a converter from 1-53 permitting a prospective buyer who is an employee of a franchised 1-54 motor vehicle dealer to operate a vehicle while the vehicle is 1-55 being demonstrated. 1-56 (d) A vehicle being conveyed while displaying a temporary 1-57 tag issued under this section is exempt from the inspection 1-58 requirements of Chapter 548. 1-59 (e) The department may not issue a converter temporary 1-60 cardboard tag or contract for the issuance of a converter temporary 1-61 cardboard tag but shall prescribe the specifications, form, and 1-62 color of a converter temporary cardboard tag. 1-63 (f) A converter or employee of a converter may not use a 1-64 temporary cardboard tag issued under this section as authorization 2-1 to operate a vehicle for the converter's or the employee's personal 2-2 use. 2-3 SECTION 3. This Act takes effect September 1, 1999. 2-4 SECTION 4. The importance of this legislation and the 2-5 crowded condition of the calendars in both houses create an 2-6 emergency and an imperative public necessity that the 2-7 constitutional rule requiring bills to be read on three several 2-8 days in each house be suspended, and this rule is hereby suspended. 2-9 * * * * *