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                                  * * * * *