By Alexander H.B. No. 3717
Line and page numbers may not match official copy.
Bill not drafted by TLC or Senate E&E.
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the transfer of the Motor Vehicle Board, together with
1-3 its functions and duties, from the Texas Department of
1-4 Transportation to the status of independent agency.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Section 1.03, Texas Motor Vehicle Commission Code
1-7 (Article 4413(36), Vernon's Texas Civil Statutes), is amended to
1-8 read as follows:
1-9 Sec. 1.03. DEFINITIONS. In this act:
1-10 (1) "Ambulance" means a vehicle used exclusively for
1-11 providing emergency medical care to an injured or ill person or
1-12 transporting an injured or ill person, if the vehicle provides:
1-13 (A) a driver's compartment;
1-14 (B) a compartment to accommodate an emergency
1-15 medical care technician or paramedic and two injured or ill persons
1-16 so positioned that one of the injured or ill persons can be given
1-17 intensive life-support during transit;
1-18 (C) equipment and supplies for emergency care of
1-19 an injured or ill person where the ill person is located or at the
1-20 scene of an injury-producing incident as well as in transit;
1-21 (D) two-way radio communication capability; and
2-1 (E) equipment for light rescue or extrication
2-2 procedures.
2-3 (2) "Board" means the Texas Motor Vehicle Board [of
2-4 the Texas Department of Transportation].
2-5 (3) "Broker" means a person who, for a fee,
2-6 commission, or other valuable consideration, arranges or offers to
2-7 arrange a transaction involving the sale, for purposes other than
2-8 resale, of a new motor vehicle, and who is not:
2-9 (A) a franchised dealer or bona fide employee of
2-10 a franchised dealer when acting on behalf of a franchised dealer;
2-11 (B) a representative or bona fide employee of a
2-12 representative when acting on behalf of a representative;
2-13 (C) a distributor or bona fide employee of a
2-14 distributor when acting on behalf of a distributor; or
2-15 (D) at any point in the transaction the bona
2-16 fide owner of the vehicle involved in the transaction.
2-17 (4) "Chassis manufacturer" means a person who
2-18 manufactures and produces the frame upon which is mounted the body
2-19 of a motor vehicle.
2-20 (5) "Conversion" means a motor vehicle, other than a
2-21 motor home, ambulance, or fire-fighting vehicle, which has been
2-22 substantially modified by a person other than the manufacturer or
2-23 distributor of the chassis of the motor vehicle and which has not
2-24 been the subject of a retail sale.
2-25 (6) "Converter" means a person who prior to the retail
3-1 sale of a motor vehicle, assembles, installs, or affixes a body,
3-2 cab, or special equipment to a chassis, or who substantially adds,
3-3 subtracts from, or modifies a previously assembled or manufactured
3-4 motor vehicle.
3-5 (7) "Dealer" means a person who holds a general
3-6 distinguishing number issued by the board [Department] pursuant to
3-7 the terms of Chapter 503, Transportation Code.
3-8 (8) "Dealership" means the physical premises and
3-9 business facilities on which a franchised dealer operates his
3-10 business, including the sale and repair of motor vehicles. The
3-11 term includes premises or facilities at which a person engages only
3-12 in the repair of motor vehicles if repairs are performed pursuant
3-13 to the terms of a franchise and a motor vehicle manufacturer's
3-14 warranty.
3-15 (9) "Department" means the Texas Department of
3-16 Transportation.
3-17 (10) "Director" means the director of the board.
3-18 (11) "Distributor" means any person who distributes
3-19 and/or sells new motor vehicles to franchised dealers and who is
3-20 not a manufacturer.
3-21 (12) "Executive Director" means the Executive Director
3-22 of the Texas Department of Transportation.
3-23 (13) "Fire-fighting vehicle" means a motor vehicle
3-24 which has as its sole purpose transporting fire fighters to the
3-25 scene of a fire and providing equipment to fight the fire, if the
4-1 vehicle is built on a truck chassis with a gross carrying capacity
4-2 of at least 10,000 pounds, to which the following have been
4-3 permanently affixed or mounted:
4-4 (A) a water tank with a minimum combined
4-5 capacity of 500 gallons; and
4-6 (B) a centrifugal water pump with a minimum
4-7 capacity of not less than 750 gallons per minute at 150 pounds per
4-8 square inch net pump pressure.
4-9 (14) "Franchise" means one or more contracts between a
4-10 franchised dealer as franchisee, and either a manufacturer or a
4-11 distributor as franchisor under which (A) the franchisee is granted
4-12 the right to sell and service new motor vehicles manufactured or
4-13 distributed by the franchisor or only service motor vehicles
4-14 pursuant to the terms of a franchise and a manufacturer's warranty;
4-15 (B) the franchisee as an independent business is a component of
4-16 franchisor's distribution system; (C) the franchisee is
4-17 substantially associated with franchisor's trademark, tradename and
4-18 commercial symbol; (D) the franchisee's business is substantially
4-19 reliant on franchisor for a continued supply of motor vehicles,
4-20 parts, and accessories for the conduct of its business; or (E) any
4-21 right, duty, or obligation granted or imposed by this Act is
4-22 affected. The term includes a written communication from a
4-23 franchisor to a franchisee by which a duty is imposed on the
4-24 franchisee.
4-25 (15) "Franchised dealer" means any person who holds a
5-1 franchised motor vehicle dealer's general distinguishing number
5-2 issued by the board [Department] pursuant to the terms of Chapter
5-3 503, Transportation Code, and who is engaged in the business of
5-4 buying, selling, or exchanging new motor vehicles and servicing or
5-5 repairing motor vehicles pursuant to the terms of a franchise and a
5-6 manufacturer's warranty at an established and permanent place of
5-7 business pursuant to a franchise in effect with a manufacturer or
5-8 distributor.
5-9 (16) "General distinguishing number" means a dealer
5-10 license issued by the board [Department] pursuant to the terms of
5-11 Chapter 503, Transportation Code.
5-12 (17) "Lease" means a transfer of the right to
5-13 possession and use of a motor vehicle for a term in excess of 180
5-14 days in return for consideration.
5-15 (18) "Lease facilitator" means a person, other than a
5-16 dealer or a bona fide employee of a dealer, or a vehicle lessor or
5-17 a bona fide employee of a vehicle lessor, who:
5-18 (A) holds himself out to any person as a "motor
5-19 vehicle leasing company" or "motor vehicle leasing agent" or uses a
5-20 similar title, for the purpose of soliciting or procuring a person
5-21 to enter into a contract or agreement to become the lessee of a
5-22 vehicle that is not, and will not be, titled in the name of and
5-23 registered to the lease facilitator; or
5-24 (B) otherwise solicits a person to enter into a
5-25 contract or agreement to become a lessee of a vehicle that is not,
6-1 and will not be, titled in the name of and registered to the lease
6-2 facilitator, or who is otherwise engaged in the business of
6-3 securing lessees or prospective lessees of motor vehicles that are
6-4 not, and will not be, titled in the name of and registered to the
6-5 facilitator.
6-6 (19) "Lessor" means a person who acquires title to a
6-7 motor vehicle for the purpose of leasing the vehicle to another
6-8 person.
6-9 (20) "Licensee" means a person who holds a license or
6-10 general distinguishing number issued by the Board under the terms
6-11 of this Act or Chapter 503, Transportation Code.
6-12 (21) "Manufacturer" means any person who manufactures
6-13 or assembles new motor vehicles either within or without this
6-14 State.
6-15 (22) "Manufacturer's statement of origin" means a
6-16 certificate on a form prescribed by the board [Department] showing
6-17 the original transfer of a new motor vehicle from the manufacturer
6-18 to the original purchaser.
6-19 (23) "Motor home" means a motor vehicle which is
6-20 designed to provide temporary living quarters and which:
6-21 (A) is built onto as an integral part of, or is
6-22 permanently attached to, a motor vehicle chassis; and
6-23 (B) contains at least four of the following
6-24 independent life support systems if each is permanently installed
6-25 and designed to be removed only for purposes of repair or
7-1 replacement and meets the standards of the American National
7-2 Standards Institute, Standards for Recreational Vehicles:
7-3 (i) a cooking facility with an on-board
7-4 fuel source;
7-5 (ii) a gas or electric refrigerator;
7-6 (iii) a toilet with exterior evacuation;
7-7 (iv) a heating or air conditioning system
7-8 with an on-board power or fuel source separate from the vehicle
7-9 engine;
7-10 (v) a potable water supply system that
7-11 includes at least a sink, a faucet, and a water tank with an
7-12 exterior service supply connection;
7-13 (vi) a 110-125 volt electric power supply.
7-14 (24) "Motor home manufacturer" means a person other
7-15 than the manufacturer of the chassis of a motor vehicle who, prior
7-16 to the retail sale of the motor vehicle, performs modifications on
7-17 the chassis that result in the finished product being classified as
7-18 a motor home.
7-19 (25) "Motor vehicle" means:
7-20 (A) every fully self-propelled vehicle which has
7-21 as its primary purpose the transport of a person or persons, or
7-22 property, on a public highway, and having two or more wheels;
7-23 (B) every two or more wheeled fully
7-24 self-propelled, titled vehicle which has as its primary purpose the
7-25 transport of a person or persons or property and is not
8-1 manufactured for use on public streets, roads, or highways;
8-2 (C) an engine, transmission, or rear axle
8-3 manufactured for installation in a vehicle having as its primary
8-4 purpose the transport of a person or persons or property on a
8-5 public highway and having a gross vehicle weight rating of more
8-6 than 16,000 pounds, whether or not attached to a vehicle chassis;
8-7 or
8-8 (D) a towable recreational vehicle.
8-9 (26) "New motor vehicle" means a motor vehicle which
8-10 has not been the subject of a "retail sale" without regard to the
8-11 mileage of the vehicle.
8-12 (27) "Nonfranchised dealer" means a person who holds
8-13 an independent motor vehicle dealer's general distinguishing number
8-14 or a wholesale motor vehicle dealer's general distinguishing number
8-15 issued by the board [Department] pursuant to the terms of Chapter
8-16 503, Transportation Code.
8-17 (28) "Party" means each person or agency named or
8-18 admitted as a party and whose legal rights, duties, or privileges
8-19 are to be determined by the Commission after an opportunity for
8-20 adjudicative hearing.
8-21 (28) "Towable recreational vehicle" means a
8-22 nonmotorized vehicle that is designed and originally manufactured
8-23 for temporary human habitation as its primary purpose for
8-24 recreational, camping, or seasonal use and:
8-25 (A) is titled and registered with the board
9-1 [Texas Department of Transportation] as a travel trailer through
9-2 the county tax assessor-collector;
9-3 (B) is permanently built on a single chassis;
9-4 (C) contains one or more life support systems;
9-5 and
9-6 (D) is designed to be towable by another motor
9-7 vehicle.
9-8 (29) "Person" means a natural person, partnership,
9-9 corporation, association, trust, estate, or any other legal entity.
9-10 (30) "Relocation" means the transfer of an existing
9-11 dealership operation to facilities at a different location,
9-12 including a transfer which results in a consolidation or dualing of
9-13 an existing dealer's operation.
9-14 (31) "Representative" means any person who is or acts
9-15 as an agent, employee or representative of a manufacturer,
9-16 distributor, or converter who performs any duties in this State
9-17 relating to promoting the distribution and/or sale of new motor
9-18 vehicles or contacts dealers in this State on behalf of a
9-19 manufacturer, distributor, or converter.
9-20 (32) "Retail sale" means the sale of a motor vehicle
9-21 except:
9-22 (A) a sale in which the purchaser acquires a
9-23 vehicle for the purpose of resale; or
9-24 (B) a sale of a vehicle that is operated under
9-25 and in accordance with Section 503.061, Transportation Code.
10-1 (33) "Rule" means a statement by the Commission of
10-2 general and future applicability that implements, interprets, or
10-3 prescribes law or policy or describes the organization or
10-4 procedural practice requirements of the Commission. The term
10-5 includes the amendment or repeal of a prior rule, but does not
10-6 include statements concerning only the internal management of the
10-7 Commission which do not affect the rights of a person not connected
10-8 with the Commission.
10-9 (34) "Transportation Commission" means the Texas
10-10 Transportation Commission of the Texas Department of
10-11 Transportation.
10-12 (35) "Warranty work" means parts, labor, and any other
10-13 expenses incurred by a franchised dealer in complying with the
10-14 terms of a manufacturer's or distributor's warranty.
10-15 SECTION 2. Section 2.01(a), Texas Motor Vehicle Commission
10-16 Code (Article 4413(36), Vernon's Texas Civil Statutes), is amended
10-17 to read as follows:
10-18 Sec. 2.01. Texas Motor Vehicle Board. (a) In conducting
10-19 the policy-making and regulatory functions and duties imposed on
10-20 the board by this Act, whether mandatory or discretionary, and
10-21 unless otherwise provided by this Act, the board is an independent
10-22 entity [within the department and is not an advisory body to the
10-23 department]. The board shall carry out the functions and duties
10-24 conferred upon it by this Act and by other provision of law.
10-25 SECTION 3. Section 2.02(a), Texas Motor Vehicle Commission
11-1 Code (Article 4413(36), Vernon's Texas Civil Statutes), is amended
11-2 to read as follows:
11-3 (a) The board [Motor Vehicle Board of the Texas Department
11-4 of Transportation] consists of nine persons appointed by the
11-5 Governor with the advice and consent of the Senate.
11-6 SECTION 4. Section 2.02(b), Texas Motor Vehicle Commission
11-7 Code (Article 4413(36), Vernon's Texas Civil Statutes), is
11-8 repealed. Section 2.02(c), Texas Motor Vehicle Commission Code
11-9 (Article 4413(36), Vernon's Texas Civil Statutes) is renumbered
11-10 Subsection (b).
11-11 SECTION 5. Section 2.03A, Texas Motor Vehicle Commission
11-12 Code (Article 4413(36), Vernon's Texas Civil Statutes), is amended
11-13 to read as follows:
11-14 Sec. 2.03A. TRAINING [ON DEPARTMENT AND CERTAIN LAWS
11-15 RELATING TO DEPARTMENT]. (a) To be eligible to take office as a
11-16 member of the board [Commission], a person [appointed to the
11-17 Commission] must complete at least one course of a training program
11-18 that complies with this section.
11-19 (b) The training program must provide information to the
11-20 person regarding:
11-21 (1) this Act;
11-22 (2) the programs operated by the board [department];
11-23 (3) the role and functions of the board [department];
11-24 (4) the rules of the board [department] with an
11-25 emphasis on the rules that relate to disciplinary and investigatory
12-1 authority;
12-2 (5) the current budget for the department;
12-3 (6) the results of the most recent formal audit of the
12-4 department;
12-5 (7) the requirements of the:
12-6 (A) open meetings law, Chapter 551, Government
12-7 Code;
12-8 (B) open records law, Chapter 552, Government
12-9 Code; and
12-10 (C) administrative procedure law, Chapter 2001,
12-11 Government Code;
12-12 (8) the requirements of the conflict of interest laws
12-13 and other laws relating to public officials; and
12-14 (9) any applicable ethics policies adopted by the
12-15 Commission or the Texas Ethics Commission.
12-16 (c) A person appointed to the board [Commission] is entitled
12-17 to reimbursement for travel expenses incurred in attending the
12-18 training program, as provided by the General Appropriations Act and
12-19 as if the person were a member of the board [Commission].
12-20 SECTION 6. Section 2.08A(c), Texas Motor Vehicle Commission
12-21 Code (Article 4413(36), Vernon's Texas Civil Statutes), is amended
12-22 to read as follows:
12-23 (c) If the Director has knowledge that a potential
12-24 ground for removal exists, the Director shall notify the Chairman
12-25 of the Commission of the ground. The Chairman shall then notify
13-1 the Governor and the Attorney General that a potential ground for
13-2 removal exists. If the potential ground for removal relates to the
13-3 Chairman of the Commission, the [Executive] Director shall notify
13-4 the Vice-chairman of the Commission, who shall notify the Governor
13-5 and the Attorney General that a potential ground for removal
13-6 exists.
13-7 SECTION 7. Section 2.09(a), Texas Motor Vehicle Commission
13-8 Code (Article 4413(36), Vernon's Texas Civil Statutes), is amended
13-9 to read as follows:
13-10 (a) The board [Executive Director] shall appoint the
13-11 Director, who is the board's chief executive and administrative
13-12 officer. The Director shall administer, enforce, and carry [, who
13-13 shall be an attorney licensed to practice law in this state, is
13-14 charged with administering, enforcing, and carrying] out the
13-15 provisions of this Act. A person is eligible to serve as director
13-16 if the person is licensed to practice law in Texas. [The Director
13-17 serves at the pleasure of the Executive Director].
13-18 SECTION 8. Section 2.10, Texas Motor Vehicle Commission Code
13-19 (Article 4413(36), Vernon's Texas Civil Statutes), is amended to
13-20 read as follows:
13-21 Sec. 2.10. REVENUES. (a) Notwithstanding a law to the
13-22 contrary, including without limitation the provisions of Section
13-23 403.094(h), Government Code, all money paid to the board
13-24 [Commission] under this Act shall be deposited in the State
13-25 Treasury to the credit of the state highway fund.
14-1 (b) The board [Commission] shall file annually with the
14-2 Governor and the presiding officer of each house of the legislature
14-3 a complete and detailed written report accounting for all funds
14-4 received and disbursed by the board [Commission] during the
14-5 preceding fiscal year. The annual report must comply with each
14-6 reporting requirement applicable to financial reporting provided by
14-7 the General Appropriations Act.
14-8 (c) The financial transactions of the board [Commission] are
14-9 subject to audit by the state auditor in accordance with Chapter
14-10 321, Government Code.
14-11 SECTION 9. Section 2.13, Texas Motor Vehicle Commission Code
14-12 (Article 4413(36), Vernon's Texas Civil Statutes), is amended to
14-13 read as follows:
14-14 Sec. 2.13. Intraagency career ladder program; annual
14-15 performance evaluations; information; equal opportunity
14-16 implementation plan; public information. (a) The [Executive]
14-17 Director or his designee shall develop an intraagency career ladder
14-18 program that addresses opportunities for mobility and advancement
14-19 of employees in the board [Commission]. The program shall require
14-20 intraagency postings of all positions concurrently with any public
14-21 posting.
14-22 (b) The [Executive] Director or his designee shall develop a
14-23 system of annual performance evaluations that are based on
14-24 documented employee performance. All merit pay for board
14-25 [Commission] employees must be based on the system established
15-1 under this subsection.
15-2 (c) The [Executive] Director or his designee shall prepare
15-3 information describing the functions of the board [Commission] and
15-4 describing the procedures by which complaints or protests are filed
15-5 with and resolved by the board [Commission]. The board
15-6 [Commission] shall make the information available to the general
15-7 public and appropriate state agencies.
15-8 (d) The [Executive] Director or his designee shall prepare
15-9 and maintain a written policy statement to assure implementation of
15-10 a program of equal employment opportunity under which all personnel
15-11 transactions are made without regard to race, color, disability,
15-12 sex, religion, age, or national origin. The policy statement must
15-13 include:
15-14 (1) personnel policies, including policies relating to
15-15 recruitment, evaluation, selection, appointment, training, and
15-16 promotion of personnel that comply with Chapter 21, Labor Code;
15-17 (2) a comprehensive analysis of the board's
15-18 [Commission] work force that meets federal and state laws, rules,
15-19 and regulations and instructions directly adopted under those laws,
15-20 rules, or regulations;
15-21 (3) procedures by which a determination can be made of
15-22 significant underuse in the board [Commission] work force of all
15-23 persons for whom federal or state laws, rules, and regulations and
15-24 instructions directly adopted under those laws, rules, or
15-25 regulations, encourage a more equitable balance; and
16-1 (4) reasonable methods to appropriately address those
16-2 areas of significant underuse.
16-3 A policy statement prepared under this subsection must cover an
16-4 annual period, be updated at least annually, be reviewed by the
16-5 Texas Commission on Human Rights for compliance with Subdivision
16-6 (1) of this subsection, and be filed with the Governor's office.
16-7 The Governor's office shall deliver a biennial report to the
16-8 legislature based on the information received under this
16-9 subsection. The report may be made separately or as a part of
16-10 other biennial reports made to the legislature.
16-11 (e) The board [Commission] shall comply with Chapter 2001,
16-12 Government Code [Section 4(a)(2), Administrative Procedure and
16-13 Texas Register Act (Article 6252-13a, Vernon's Texas Civil
16-14 Statutes),] by indexing and making available for public inspection
16-15 all:
16-16 (1) rules and all other written statements of policy
16-17 or interpretations formulated, adopted, or used by the board
16-18 [Commission] in the discharge of its functions; and
16-19 (2) [. (f) The Commission shall comply with Section
16-20 4(a)(3), Administrative Procedure and Texas Register Act (Article
16-21 6252-13a, Vernon's Texas Civil Statutes), by indexing and making
16-22 available for public inspection all of] the board's [Commission's]
16-23 final orders, decisions, and opinions.
16-24 SECTION 10. Section 3.01A, Texas Motor Vehicle Commission
16-25 Code (Article 4413(36), Vernon's Texas Civil Statutes), is
17-1 repealed.
17-2 SECTION 11. Subsections (a) and (c), Section 6.07, Texas
17-3 Motor Vehicle Commission Code (Article 4413(36), Vernon's Texas
17-4 Civil Statutes) are amended to read as follows:
17-5 (a) In addition to the other powers and duties provided for
17-6 in this Act, the board [Commission] shall cause manufacturers,
17-7 converters, and distributors to perform the obligations imposed by
17-8 this section. For purposes of this section, the term "owner" means
17-9 a retail purchaser, lessor, lessee other than a sublessee, or the
17-10 person so designated on the certificate of title to a motor vehicle
17-11 issued by the board [Texas Department of Transportation,] or an
17-12 equivalent document issued by the duly authorized agency of any
17-13 other state, or any person to whom such motor vehicle is legally
17-14 transferred during the duration of a manufacturer's or
17-15 distributor's express warranty applicable to such motor vehicle,
17-16 and any other person entitled by the terms of the manufacturer's,
17-17 converter's, or distributor's express warranty to enforce the
17-18 obligations thereof.
17-19 (c) If the manufacturer, converter, or distributor is unable
17-20 to conform the motor vehicle to an applicable express warranty by
17-21 repairing or correcting any defect or condition which creates a
17-22 serious safety hazard or substantially impairs the use or market
17-23 value of the motor vehicle after a reasonable number of attempts,
17-24 the manufacturer, converter, or distributor shall (1) replace the
17-25 motor vehicle with a comparable motor vehicle; or (2) accept return
18-1 of the vehicle from the owner and refund to the owner the full
18-2 purchase price less a reasonable allowance for the owner's use of
18-3 the vehicle and any other allowances or refunds payable to the
18-4 owner. In this section, "impairment of market value" means a
18-5 substantial loss in market value caused by a defect specific to the
18-6 vehicle. In addition to replacing the vehicle or refunding the
18-7 purchase price, the manufacturer, converter, or distributor shall
18-8 reimburse the owner for reasonable incidental costs resulting from
18-9 loss of use of the motor vehicle because of the nonconformity or
18-10 defect. As necessary to promote the public interest, the board
18-11 [Commission] by rule shall define the incidental costs that are
18-12 eligible for reimbursement, shall specify other requirements
18-13 necessary to determine an eligible cost, and may set a maximum
18-14 amount that is eligible for reimbursement, either by type of
18-15 eligible cost or a total for all costs. Refunds shall be made to
18-16 the owner and lienholder, if any, as their interests may appear. A
18-17 reasonable allowance for use shall be that amount directly
18-18 attributable to use of the motor vehicle when the vehicle is not
18-19 out of service for repair. An order to refund or to replace may
18-20 not be issued by the [Executive] Director against a manufacturer,
18-21 converter, or distributor unless the manufacturer, converter, or
18-22 distributor has been mailed prior written notification of the
18-23 alleged nonconformity or defect from or on behalf of the owner and
18-24 has been given an opportunity to cure the alleged defect or
18-25 nonconformity. In any hearing before the [Executive] Director
19-1 under this section, a manufacturer, converter, or distributor may
19-2 plead and prove as an affirmative defense to the remedies provided
19-3 hereunder that (1) the nonconformity is the result of abuse,
19-4 neglect, or unauthorized modifications or alterations of the motor
19-5 vehicle; or (2) the nonconformity does not substantially impair the
19-6 use or market value of the motor vehicle. In this section, "serious
19-7 safety hazard" means a life-threatening malfunction or
19-8 nonconformity that substantially impedes a person's ability to
19-9 control or operate a motor vehicle for ordinary use or intended
19-10 purposes or that creates a substantial risk of fire or explosion.
19-11 SECTION 12. Section 7.01(b), Texas Motor Vehicle Commission
19-12 Code (Article 4413(36), Vernon's Texas Civil Statutes), is amended
19-13 to read as follows:
19-14 (b) A final action, ruling, order, or decision of the board
19-15 [Motor Vehicle Board of the Texas Department of Transportation, or
19-16 the Director of the Motor Vehicle Division of the Texas Department
19-17 of Transportation, as appropriate] under the terms of this Act or
19-18 other law, is the final action with respect to a matter arising
19-19 under this Act, and is subject to review only by judicial review as
19-20 provided by this Act. The petition for judicial review must be
19-21 filed within 30 days of the date on which an action, ruling, order,
19-22 or decision of the board [Board] or the director first becomes
19-23 final and appealable.
19-24 SECTION 13. Section 503.001, Transportation Code, is amended
19-25 to read as follows:
20-1 Sec. 503.001. DEFINITIONS. In this chapter:
20-2 (1) "Commission" means the Texas Transportation
20-3 Commission.
20-4 (2) "Board" means the Texas Motor Vehicle Board
20-5 created by the Texas Motor Vehicle Commission Code.
20-6 (3) [(2)] "Dealer" means a person who regularly and
20-7 actively buys, sells, or exchanges vehicles at an established and
20-8 permanent location. The term includes a franchised motor vehicle
20-9 dealer, an independent motor vehicle dealer, and a wholesale motor
20-10 vehicle dealer.
20-11 (4) [(3)] "Department" means the Texas Department of
20-12 Transportation.
20-13 (5) [(4)] "Drive-a-way operator" means a person who
20-14 transports and delivers a vehicle in this state from the
20-15 manufacturer or another point of origin to a location in this state
20-16 using the vehicle's own power or using the full-mount method, the
20-17 saddle-mount method, the tow-bar method, or a combination of those
20-18 methods.
20-19 (6) [(5)] "Franchise" has the meaning assigned by the
20-20 Texas Motor Vehicle Commission Code (Article 4413(36), Vernon's
20-21 Texas Civil Statutes).
20-22 (7) [(6)] "Franchised motor vehicle dealer" means a
20-23 person engaged in the business of buying, selling, or exchanging
20-24 new motor vehicles at an established and permanent place of
20-25 business under a franchise in effect with a motor vehicle
21-1 manufacturer or distributor.
21-2 (8) [(7)] "Independent motor vehicle dealer" means a
21-3 dealer other than a franchised motor vehicle dealer or a wholesale
21-4 motor vehicle dealer.
21-5 (9) [(8)] "Manufacturer" means a person who
21-6 manufacturers, distributes, or assembles new vehicles.
21-7 (10) [(9)] "Motorcycle" has the meaning assigned by
21-8 Section 502.001.
21-9 (11) [(10)] "Motor vehicle" has the meaning assigned
21-10 by Section 502.001.
21-11 (12) [(11)] "Semitrailer" has the meaning assigned by
21-12 Section 502.001.
21-13 (13) [(12)] "Trailer" has the meaning assigned by
21-14 Section 502.001.
21-15 (14) [(13)] "Vehicle" means a motor vehicle,
21-16 motorcycle, house trailer, trailer, or semitrailer.
21-17 (15) [(14)] "Wholesale motor vehicle auction" means
21-18 the offering of a motor vehicle for sale to the highest bidder
21-19 during a transaction that is one of a series of regular periodic
21-20 transactions that occur at a permanent location.
21-21 (16) [(15)] "Wholesale motor vehicle dealer" means a
21-22 dealer who sells motor vehicles only to a person who is:
21-23 (A) the holder of a dealer's general
21-24 distinguishing number; or
21-25 (B) a foreign dealer authorized by a law of this
22-1 state or interstate reciprocity agreement to purchase a vehicle in
22-2 this state without remitting the motor vehicle sales tax.
22-3 SECTION 14. Section 503.002, Transportation Code, is amended
22-4 to read as follows:
22-5 Sec. 503.002. Rules. The commission or the board may adopt
22-6 rules for the administration of this chapter.
22-7 SECTION 13. Section 503.003, Transportation Code, is amended
22-8 to read as follows:
22-9 Sec. 503.003. Display or Sale of Nonmotorized Vehicle or
22-10 Trailer. This chapter does not prohibit the display or sale of a
22-11 nonmotorized vehicle or trailer at a regularly scheduled vehicle or
22-12 boat show with multiple vendors in accordance with board
22-13 [commission] rules.
22-14 SECTION 15. Section 503.005, Transportation Code, is amended
22-15 to read as follows:
22-16 Sec. 503.005. Notice of Sale or Transfer. (a) A
22-17 manufacturer or dealer shall immediately notify the board
22-18 [department] if the manufacturer or dealer transfers, including by
22-19 sale or lease, a motor vehicle, trailer, or semitrailer to a person
22-20 other than a manufacturer or dealer.
22-21 (b) The notice must be in writing using the form provided by
22-22 the board [department] and must include:
22-23 (1) the date of the transfer;
22-24 (2) the names and addresses of the transferrer and
22-25 transferee; and
23-1 (3) a description of the vehicle.
23-2 SECTION 16. Section 503.006, Transportation Code, is amended
23-3 to read as follows:
23-4 Sec. 503.006. Notice of Change of Address. A dealer or
23-5 manufacturer who has been issued dealer's or manufacturer's license
23-6 plates shall notify the board [department] of a change to the
23-7 dealer's or manufacturer's address not later than the 10th day
23-8 after the date the change occurs.
23-9 SECTION 17. Section 503.007(d), Transportation Code, is
23-10 amended to read as follows:
23-11 (d) A fee collected under this section shall be deposited to
23-12 the credit of the state highway fund.
23-13 SECTION 18. Sec. 503.008(d), Transportation Code, is amended
23-14 to read as follows:
23-15 (d) A fee collected under this section shall be deposited to
23-16 the credit of the state highway fund.
23-17 SECTION 19. Sec. 503.024(c), Transportation Code, is amended
23-18 to read as follows:
23-19 (c) For the purposes of Section 503.021, a domiciliary of
23-20 another state who holds a dealer license and bond, if applicable,
23-21 issued by the other state is not engaging in business as a dealer
23-22 by buying a vehicle from, selling a vehicle to, or exchanging a
23-23 vehicle with a person who:
23-24 (1) holds a general distinguishing number issued by
23-25 the board [department], if the transaction is not intended to avoid
24-1 a requirement of this chapter; or
24-2 (2) is a domiciliary of another state who holds a
24-3 dealer license and bond, if applicable, issued by the other state
24-4 and the transaction is not intended to avoid a requirement of this
24-5 chapter.
24-6 SECTION 20. Section 503.027(b), Transportation Code, is
24-7 amended to read as follows:
24-8 (b) If a person is not otherwise prohibited from doing
24-9 business as a dealer at more than one location in the territory of
24-10 a municipality, a person may buy, sell, or exchange a vehicle of
24-11 the type for which the person holds a dealer general distinguishing
24-12 number from more than one location in the territory of the
24-13 municipality without obtaining an additional dealer general
24-14 distinguishing number. Each location must comply with the
24-15 requirements prescribed by this chapter and board [commission]
24-16 rules relating to an established and permanent place of business.
24-17 SECTION 21. Section 503.028(a), Transportation Code, is
24-18 amended to read as follows:
24-19 (a) Except as provided by Subsection (b), the board
24-20 [department] may not issue more than one general distinguishing
24-21 number for a location for which the wholesale motor vehicle auction
24-22 general distinguishing number has been issued.
24-23 SECTION 22. Section 503.029(a), Transportation Code, is
24-24 amended to read as follows:
24-25 (a) An applicant for an original or renewal dealer general
25-1 distinguishing number must submit to the department a written
25-2 application on a form that:
25-3 (1) is provided by the board [department];
25-4 (2) contains the information required by the board
25-5 [department];
25-6 (3) contains information that demonstrates the person
25-7 meets the requirements prescribed by Section 503.032;
25-8 (4) contains information that demonstrates the
25-9 applicant has complied with all applicable state laws and municipal
25-10 ordinances;
25-11 (5) states that the applicant agrees to allow the
25-12 board reasonable access [department to examine] during working
25-13 hours, to the ownership papers for each registered or unregistered
25-14 vehicle in the applicant's possession or control in the manner and
25-15 subject to the procedures set forth in the Texas Motor Vehicle
25-16 Commission Codes; and
25-17 (6) specifies whether the applicant proposes to be
25-18 [a]:
25-19 (A) a franchised motor vehicle dealer;
25-20 (B) an independent motor vehicle dealer;
25-21 (C) a wholesale motor vehicle dealer;
25-22 (D) a motorcycle dealer;
25-23 (E) a house trailer dealer; or
25-24 (F) a trailer or semitrailer dealer.
25-25 SECTION 23. Section 503.030(a), Transportation Code, is
26-1 amended to read as follows:
26-2 (a) An applicant for an original or renewal wholesale motor
26-3 vehicle auction general distinguishing number must submit to the
26-4 board [department] an application that contains:
26-5 (1) the information required by the department;
26-6 (2) information that demonstrates the person meets the
26-7 requirements prescribed by Section 503.032; and
26-8 (3) information that demonstrates the applicant has
26-9 complied with all applicable state laws and municipal ordinances.
26-10 SECTION 24. Section 503.031(a), Transportation Code, is
26-11 amended to read as follows:
26-12 (a) An applicant for a drive-a-way in-transit license must
26-13 submit to the board [commission] an application containing the
26-14 information required by the board [commission].
26-15 SECTION 25. Section 503.032(a), Transportation Code, is
26-16 amended to read as follows:
26-17 (a) An applicant for a dealer general distinguishing number
26-18 or wholesale motor vehicle auction general distinguishing number
26-19 must demonstrate that the location for which the applicant requests
26-20 the number is an established and permanent place of business. A
26-21 location is considered to be an established and permanent place of
26-22 business if the applicant:
26-23 (1) owns the real property on which the business is
26-24 situated or has a written lease for the property that has a term of
26-25 not less than one year;
27-1 (2) maintains on the location:
27-2 (A) a permanent furnished office that is
27-3 equipped as required by the board [department] for the sale of the
27-4 vehicles of the type specified in the application; and
27-5 (B) a conspicuous sign with letters at least six
27-6 inches high showing the name of the applicant's business; and
27-7 (3) has sufficient space on the location to display at
27-8 least five vehicles of the type specified in the application.
27-9 SECTION 26. Subsections (a), (c), and (g), Section 503.033,
27-10 Transportation Code, are amended to read as follows:
27-11 (a) The board [department] may not issue or renew a motor
27-12 vehicle dealer general distinguishing number or a wholesale motor
27-13 vehicle auction general distinguishing number unless the applicant
27-14 provides to the board [department]:
27-15 (1) satisfactory proof that the applicant has
27-16 purchased a properly executed surety bond in the amount of $25,000
27-17 with a good and sufficient surety approved by the board
27-18 [department]; or
27-19 (2) other security under Subsection (c).
27-20 (c) In lieu of the surety bond, the board [department] may
27-21 accept and receive for the surety obligation:
27-22 (1) a pledge of cash;
27-23 (2) a cash deposit;
27-24 (3) a certificate of deposit; or
27-25 (4) another instrument the board [department]
28-1 determines to be adequate security.
28-2 (g) This section does not apply to a person licensed as a
28-3 franchised motor vehicle dealer [by the department's Motor Vehicle
28-4 Board].
28-5 SECTION 27. Section 503.034, Transportation Code, is amended
28-6 to read as follows:
28-7 Sec. 503.034. Issuance and Renewal or Denial of Dealer or
28-8 Wholesale Motor Vehicle Auction General Distinguishing Number. (a)
28-9 The board [department] shall deny an application for the issuance
28-10 or renewal of a dealer general distinguishing number or a wholesale
28-11 motor vehicle auction general distinguishing number if the board
28-12 [department] is satisfied from the application or from other
28-13 information before it that:
28-14 (1) information in the application is not true; or
28-15 (2) the applicant is guilty of conduct that would
28-16 result in the cancellation of the general distinguishing number
28-17 under Section 503.038.
28-18 (b) The board [department] may not issue a dealer general
28-19 distinguishing number until the applicant complies with the
28-20 requirements of this chapter.
28-21 (c) A dealer's general distinguishing number expires on
28-22 March 31 of each year, unless provided otherwise by law or rule of
28-23 the board [department's Motor Vehicle Board].
28-24 SECTION 28. Section 503.035, Transportation Code, is amended
28-25 to read as follows:
29-1 Sec. 503.035. Issuance and Renewal of Drive-A-Way In-Transit
29-2 License. The board [department] shall issue to an applicant on the
29-3 filing of the application and the payment of the fee an annual
29-4 drive-a-way in-transit license and in-transit license plates.
29-5 SECTION 29. Subsections (a), (b), and (c), Section 503.038,
29-6 Transportation Code, are amended to read as follows:
29-7 (a) The board [department] may cancel a dealer's general
29-8 distinguishing number if the dealer:
29-9 (1) falsifies or forges a title document, including an
29-10 affidavit making application for a certified copy of a title;
29-11 (2) files a false or forged tax document, including a
29-12 sales tax affidavit;
29-13 (3) fails to take assignment of any basic evidence of
29-14 ownership, including a certificate of title or manufacturer's
29-15 certificate, for a vehicle the dealer acquires;
29-16 (4) fails to assign any basic evidence of ownership,
29-17 including a certificate of title or manufacturer's certificate, for
29-18 a vehicle the dealer sells;
29-19 (5) uses or permits the use of a metal dealer's
29-20 license plate or a dealer's temporary cardboard tag on a vehicle
29-21 that the dealer does not own or control or that is not in stock and
29-22 offered for sale;
29-23 (6) makes a material misrepresentation in an
29-24 application or other information filed with the board [department];
29-25 (7) fails to maintain the qualifications for a general
30-1 distinguishing number;
30-2 (8) fails to provide to the board [department] within
30-3 30 days after the date of demand by the board [department]
30-4 satisfactory and reasonable evidence that the person is regularly
30-5 and actively engaged in business as a wholesale or retail dealer;
30-6 (9) has been licensed for at least 12 months and has
30-7 not assigned at least five vehicles during the previous 12-month
30-8 period;
30-9 (10) has failed to demonstrate compliance with
30-10 Sections 23.12, 23.121, and 23.122, Tax Code;
30-11 (11) uses or allows the use of the dealer's general
30-12 distinguishing number or the location for which the general
30-13 distinguishing number is issued to avoid the requirements of this
30-14 chapter;
30-15 (12) misuses or allows the misuse of a temporary
30-16 cardboard tag authorized under this chapter;
30-17 (13) refuses to show on a buyer's temporary cardboard
30-18 tag the date of sale or other reasonable information required by
30-19 the board [department]; or
30-20 (14) otherwise violates this chapter or a rule adopted
30-21 under this chapter.
30-22 (b) The board [department] shall cancel a dealer's general
30-23 distinguishing number if the dealer obtains the number by
30-24 submitting false or misleading information.
30-25 (c) A person whose general distinguishing number is canceled
31-1 under this chapter shall surrender to a representative of the board
31-2 [department] each license plate, temporary cardboard tag, sticker,
31-3 and receipt issued under this chapter not later than the 10th day
31-4 after the date the general distinguishing number is canceled. The
31-5 board [department] shall direct any peace officer to secure and
31-6 return to the board [department] any plate, tag, sticker, or
31-7 receipt of a person who does not comply with this subsection.
31-8 SECTION 30. Section 503.0615, Transportation Code, is
31-9 amended to read as follows:
31-10 Sec. 503.0615. Personalized Prestige Dealer's License
31-11 Plates. (a) The board [department] shall establish and issue
31-12 personalized prestige dealer's license plates. The department may
31-13 not issue identically lettered or numbered dealer's plates to more
31-14 than one dealer.
31-15 (b) The board [department] shall establish procedures for
31-16 continuous application for and issuance of personalized prestige
31-17 dealer's license plates. A dealer must make a new application and
31-18 pay a new fee for each registration period for which the dealer
31-19 seeks to obtain personalized prestige dealer's license plates. A
31-20 dealer who obtains personalized prestige dealer's license plates
31-21 has first priority on those plates for each subsequent registration
31-22 period for which the dealer applies.
31-23 (c) The annual fee for personalized prestige dealer's
31-24 license plates is $40, in addition to any fee otherwise prescribed
31-25 by this chapter.
32-1 (d) The board [department] may issue to an applicant only
32-2 one set of personalized prestige dealer's license plates for a
32-3 vehicle for a six-year period. The board [department] may issue a
32-4 new set of personalized prestige dealer's license plates within the
32-5 six-year period if the applicant pays a fee of $50 in addition to
32-6 the fees required by Subsection (c).
32-7 (e) On application and payment of the required fee for a
32-8 registration period following the issuance of the plates, the board
32-9 [department] shall issue a registration insignia.
32-10 (f) Of each fee collected by the board [department] under
32-11 this section:
32-12 (1) $1.25 shall be deposited to the credit of the
32-13 state highway fund to defray the cost of administering this
32-14 section; and
32-15 (2) the remainder shall be deposited to the credit of
32-16 the general revenue fund.
32-17 SECTION 31. Section 503.062(d), Transportation Code, is
32-18 amended to read as follows:
32-19 (d) The board [department] may not issue a dealer temporary
32-20 cardboard tag or contract for the issuance of a dealer temporary
32-21 cardboard tag but shall prescribe:
32-22 (1) the specifications, form, and color of a dealer
32-23 temporary cardboard tag; and
32-24 (2) the period for which a tag may be used for or by a
32-25 charitable organization.
33-1 SECTION 32. Section 503.063(e), Transportation Code, is
33-2 amended to read as follows:
33-3 (e) The board [department] may not issue a buyer's tag or
33-4 contract for the issuance of a buyer's tag but shall prescribe the
33-5 specifications, color, and form of a buyer's tag.
33-6 SECTION 33. Subsections (a), (b), and (d), Section 503.065,
33-7 Transportation Code, are amended to read as follows:
33-8 (a) The board [department] may issue or cause to be issued
33-9 to a person a temporary license plate made of cardboard or similar
33-10 material authorizing the person to operate a new unregistered
33-11 vehicle on a public highway of this state if the person:
33-12 (1) buys the vehicle from a dealer outside this state
33-13 and intends to drive the vehicle from the dealer's place of
33-14 business; or
33-15 (2) buys the vehicle from a dealer in this state but
33-16 intends to drive the vehicle from the manufacturer's place of
33-17 business outside this state.
33-18 (b) The board [department] may not issue a temporary license
33-19 plate under this section to a manufacturer or dealer of a motor
33-20 vehicle, trailer, or semitrailer or to a representative of such a
33-21 dealer.
33-22 (d) A temporary license plate issued under this section
33-23 expires not later than the 30th day after the date on which it is
33-24 issued. The board [department] shall place or cause to be placed
33-25 on the license plate at the time of issuance the date of expiration
34-1 and the type of vehicle for which the license plate is issued.
34-2 SECTION 34. Subsections (a) and (e), Section 503.066,
34-3 Transportation Code, are amended to read as follows:
34-4 (a) An applicant for one or more original or renewal
34-5 dealer's or manufacturer's license plates must submit to the board
34-6 [department] a written application on a form that:
34-7 (1) is provided by the board [department]; and
34-8 (2) contains a statement that the applicant agrees to
34-9 allow the board reasonable access [department to examine] during
34-10 working hours, to the ownership papers for each registered or
34-11 unregistered vehicle in the applicant's possession or control in
34-12 the manner and subject to the procedures set forth in the Texas
34-13 Motor Vehicle Commission Code.
34-14 (e) A license plate issued under this section expires on
34-15 March 31 of the year after the year of issuance, unless provided
34-16 otherwise by law or rule of the board [department's Motor Vehicle
34-17 Board].
34-18 SECTION 35. Section 503.069(a), Transportation Code, is
34-19 amended to read as follows:
34-20 (a) A license plate, other than an in-transit license plate,
34-21 or a temporary cardboard tag issued under this chapter shall be
34-22 displayed in accordance with board [commission] rules.
34-23 SECTION 36. Section 503.091, Transportation Code, is amended
34-24 to read as follows:
34-25 Sec. 503.091. ENFORCEMENT AGREEMENT. The board [department]
35-1 may agree with an authorized official of another jurisdiction to
35-2 regulate activities and exchange information relating to the
35-3 wholesale operations of nonresident vehicle dealers.
35-4 SECTION 37. Section 503.093, Transportation Code, is amended
35-5 to read as follows:
35-6 Sec. 503.093. Action to Enforce Subchapter. (a) The board
35-7 [department] or any interested person may bring an action,
35-8 including an action for an injunction, to:
35-9 (1) enforce a provision of Subchapter B; or
35-10 (2) prohibit a person from operating in violation of
35-11 the person's application for a general distinguishing number.
35-12 (b) A plaintiff other than the board [department] may
35-13 recover the plaintiff's attorney's fees.
35-14 SECTION 38. TRANSITION. (a) Beginning September 1, 2001
35-15 the duties and functions of the Texas Motor Vehicle Board assigned
35-16 to or performed by the Texas Department of Transportation are
35-17 transferred to the Texas Motor Vehicle Board.
35-18 (b) The Texas Motor Vehicle Board and the Texas Department
35-19 of Transportation shall develop a plan for the implementation of
35-20 this Act and for the transition of the Texas Motor Vehicle Board
35-21 from the Texas Department of Transportation to the status of
35-22 independent agency. That plan may include any aspect of the
35-23 orderly transfer of duties, property and obligations of the
35-24 parties.
35-25 (c) As of September 1, 2001, the Texas Motor Vehicle Board
36-1 is an independent agency of the state.
36-2 SECTION 39. EFFECTIVE DATE. This Act takes effect September
36-3 1, 1999.
36-4 SECTION 40. EMERGENCY. The importance of this legislation
36-5 and the crowded condition of the calendars in both houses create an
36-6 emergency and an imperative public necessity that the
36-7 constitutional rule requiring bills to be read on three several
36-8 days in each house be suspended, and this rule is hereby suspended.