By: Bernsen S.B. No. 1694
Line and page numbers may not match official copy.
Bill not drafted by TLC or Senate E&E.
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the transfer of the Motor Vehicle Board, together with
1-2 its functions and duties, from the Texas Department of
1-3 Transportation to the status of independent agency.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 1.03, Texas Motor Vehicle Commission Code
1-6 (Article 4413(36), Vernon's Texas Civil Statutes), is amended to
1-7 read as follows:
1-8 Section 1.03. Definitions. In this Act:
1-9 (1) "Ambulance" means a vehicle used exclusively
1-10 for providing emergency medical care to an injured or ill person or
1-11 transporting an injured or ill person, if the vehicle provides:
1-12 (A) a driver's compartment;
1-13 (B) a compartment to accommodate an
1-14 emergency medical care technician or paramedic and two injured or
1-15 ill persons so positioned that one of the injured or ill persons
1-16 can be given intensive life-support during transit;
1-17 (C) equipment and supplies for emergency
1-18 care of an injured or ill person where the ill person is located or
1-19 at the scene of an injury-producing incident as well as in transit;
1-20 (D) two-way radio communication
1-21 capability; and
1-22 (E) equipment for light rescue or
2-1 extrication procedures.
2-2 (2) "Board" means the Texas Motor Vehicle Board
2-3 [of the Texas Department of Transportation].
2-4 (3) "Broker" means a person who, for a fee,
2-5 commission, or other valuable consideration, arranges or offers to
2-6 arrange a transaction involving the sale, for purposes other than
2-7 resale, of a new motor vehicle, and who is not:
2-8 (A) a franchised dealer or bona fide
2-9 employee of a franchised dealer when acting on behalf of a
2-10 franchised dealer;
2-11 (B) a representative or bona fide employee
2-12 of a representative when acting on behalf of a representative;
2-13 (C) a distributor or bona fide employee of
2-14 a distributor when acting on behalf of a distributor; or
2-15 (D) at any point in the transaction the
2-16 bona 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
2-21 than a motor home, ambulance, or fire-fighting vehicle, which has
2-22 been substantially modified by a person other than the manufacturer
2-23 or distributor of the chassis of the motor vehicle and which has
2-24 not been the subject of a retail sale.
2-25 (6) "Converter" means a person who prior to the
2-26 retail sale of a motor vehicle, assembles, installs, or affixes a
3-1 body, cab, or special equipment to a chassis, or who substantially
3-2 adds, subtracts from, or modifies a previously assembled or
3-3 manufactured motor vehicle.
3-4 (7) "Dealer" means a person who holds a general
3-5 distinguishing number issued by the board [Department] pursuant to
3-6 the terms of Chapter 503, Transportation Code.
3-7 (8) "Dealership" means the physical premises and
3-8 business facilities on which a franchised dealer operates his
3-9 business, including the sale and repair of motor vehicles. The
3-10 term includes premises or facilities at which a person engages only
3-11 in the repair of motor vehicles if repairs are performed pursuant
3-12 to the terms of a franchise and a motor vehicle manufacturer's
3-13 warranty.
3-14 (9) "Department" means the Texas Department of
3-15 Transportation.
3-16 (10) "Director" means the director of the board.
3-17 (11) "Distributor" means any person who
3-18 distributes and/or sells new motor vehicles to franchised dealers
3-19 and who is not a manufacturer.
3-20 (12) "Executive Director" means the Executive
3-21 Director of the Texas Department of Transportation.
3-22 (13) "Fire-fighting vehicle" means a motor
3-23 vehicle which has as its sole purpose transporting fire fighters to
3-24 the scene of a fire and providing equipment to fight the fire, if
3-25 the vehicle is built on a truck chassis with a gross carrying
3-26 capacity of at least 10,000 pounds, to which the following have
4-1 been permanently affixed or mounted:
4-2 (A) a water tank with a minimum combined
4-3 capacity of 500 gallons; and
4-4 (B) a centrifugal water pump with a
4-5 minimum capacity of not less than 750 gallons per minute at 150
4-6 pounds per square inch net pump pressure.
4-7 (14) "Franchise" means one or more contracts
4-8 between a franchised dealer as franchisee, and either a
4-9 manufacturer or a distributor as franchisor under which (A) the
4-10 franchisee is granted the right to sell and service new motor
4-11 vehicles manufactured or distributed by the franchisor or only
4-12 service motor vehicles pursuant to the terms of a franchise and a
4-13 manufacturer's warranty; (B) the franchisee as an independent
4-14 business is a component of franchisor's distribution system; (C)
4-15 the franchisee is substantially associated with franchisor's
4-16 trademark, tradename and commercial symbol; (D) the franchisee's
4-17 business is substantially reliant on franchisor for a continued
4-18 supply of motor vehicles, parts, and accessories for the conduct of
4-19 its business; or (E) any right, duty, or obligation granted or
4-20 imposed by this Act is affected. The term includes a written
4-21 communication from a franchisor to a franchisee by which a duty is
4-22 imposed on the franchisee.
4-23 (15) "Franchised dealer" means any person who
4-24 holds a franchised motor vehicle dealer's general distinguishing
4-25 number issued by the board [Department] pursuant to the terms of
4-26 Chapter 503, Transportation Code, and who is engaged in the
5-1 business of buying, selling, or exchanging new motor vehicles and
5-2 servicing or repairing motor vehicles pursuant to the terms of a
5-3 franchise and a manufacturer's warranty at an established and
5-4 permanent place of business pursuant to a franchise in effect with
5-5 a manufacturer or distributor.
5-6 (16) "General distinguishing number" means a
5-7 dealer license issued by the board [Department] pursuant to the
5-8 terms of Chapter 503, Transportation Code.
5-9 (17) "Lease" means a transfer of the right to
5-10 possession and use of a motor vehicle for a term in excess of 180
5-11 days in return for consideration.
5-12 (18) "Lease facilitator" means a person, other
5-13 than a dealer or a bona fide employee of a dealer, or a vehicle
5-14 lessor or a bona fide employee of a vehicle lessor, who:
5-15 (A) holds himself out to any person as a
5-16 "motor vehicle leasing company" or "motor vehicle leasing agent" or
5-17 uses a similar title, for the purpose of soliciting or procuring a
5-18 person to enter into a contract or agreement to become the lessee
5-19 of a vehicle that is not, and will not be, titled in the name of
5-20 and registered to the lease facilitator; or
5-21 (B) otherwise solicits a person to enter
5-22 into a contract or agreement to become a lessee of a vehicle that
5-23 is not, and will not be, titled in the name of and registered to
5-24 the lease facilitator, or who is otherwise engaged in the business
5-25 of securing lessees or prospective lessees of motor vehicles that
5-26 are not, and will not be, titled in the name of and registered to
6-1 the facilitator.
6-2 (19) "Lessor" means a person who acquires title
6-3 to a motor vehicle for the purpose of leasing the vehicle to
6-4 another person.
6-5 (20) "Licensee" means a person who holds a
6-6 license or general distinguishing number issued by the Board under
6-7 the terms of this Act or Chapter 503, Transportation Code.
6-8 (21) "Manufacturer" means any person who
6-9 manufactures or assembles new motor vehicles either within or
6-10 without this State.
6-11 (22) "Manufacturer's statement of origin" means
6-12 a certificate on a form prescribed by the board [Department]
6-13 showing the original transfer of a new motor vehicle from the
6-14 manufacturer to the original purchaser.
6-15 (23) "Motor home" means a motor vehicle which is
6-16 designed to provide temporary living quarters and which:
6-17 (A) is built onto as an integral part of,
6-18 or is permanently attached to, a motor vehicle chassis; and
6-19 (B) contains at least four of the
6-20 following independent life support systems if each is permanently
6-21 installed and designed to be removed only for purposes of repair or
6-22 replacement and meets the standards of the American National
6-23 Standards Institute, Standards for Recreational Vehicles:
6-24 (i) a cooking facility with
6-25 an on-board fuel source;
6-26 (ii) a gas or electric
7-1 refrigerator;
7-2 (iii) a toilet with
7-3 exterior evacuation;
7-4 (iv) a heating or air
7-5 conditioning system with an on-board power or fuel source separate
7-6 from the vehicle engine;
7-7 (v) a potable water supply
7-8 system that includes at least a sink, a faucet, and a water tank
7-9 with an exterior service supply connection;
7-10 (vi) a 110-125 volt
7-11 electric power supply.
7-12 (24) "Motor home manufacturer" means a person
7-13 other than the manufacturer of the chassis of a motor vehicle who,
7-14 prior to the retail sale of the motor vehicle, performs
7-15 modifications on the chassis that result in the finished product
7-16 being classified as a motor home.
7-17 (25) "Motor vehicle" means:
7-18 (A) every fully self-propelled vehicle
7-19 which has as its primary purpose the transport of a person or
7-20 persons, or property, on a public highway, and having two or more
7-21 wheels;
7-22 (B) every two or more wheeled fully
7-23 self-propelled, titled vehicle which has as its primary purpose the
7-24 transport of a person or persons or property and is not
7-25 manufactured for use on public streets, roads, or highways;
7-26 (C) an engine, transmission, or rear axle
8-1 manufactured for installation in a vehicle having as its primary
8-2 purpose the transport of a person or persons or property on a
8-3 public highway and having a gross vehicle weight rating of more
8-4 than 16,000 pounds, whether or not attached to a vehicle chassis;
8-5 or
8-6 (D) a towable recreational vehicle.
8-7 (26) "New motor vehicle" means a motor vehicle
8-8 which has not been the subject of a "retail sale" without regard to
8-9 the mileage of the vehicle.
8-10 (27) "Nonfranchised dealer" means a person who
8-11 holds an independent motor vehicle dealer's general distinguishing
8-12 number or a wholesale motor vehicle dealer's general distinguishing
8-13 number issued by the board [Department] pursuant to the terms of
8-14 Chapter 503, Transportation Code.
8-15 (28) "Party" means each person or agency named
8-16 or admitted as a party and whose legal rights, duties, or
8-17 privileges are to be determined by the Commission after an
8-18 opportunity for adjudicative hearing.
8-19 (28) "Towable recreational vehicle" means a
8-20 nonmotorized vehicle that is designed and originally manufactured
8-21 for temporary human habitation as its primary purpose for
8-22 recreational, camping, or seasonal use and:
8-23 (A) is titled and registered with the
8-24 board [Texas Department of Transportation] as a travel trailer
8-25 through the county tax assessor-collector;
8-26 (B) is permanently built on a single
9-1 chassis;
9-2 (C) contains one or more life support
9-3 systems; and
9-4 (D) is designed to be towable by another
9-5 motor vehicle.
9-6 (29) "Person" means a natural person,
9-7 partnership, corporation, association, trust, estate, or any other
9-8 legal entity.
9-9 (30) "Relocation" means the transfer of an
9-10 existing dealership operation to facilities at a different
9-11 location, including a transfer which results in a consolidation or
9-12 dualing of an existing dealer's operation.
9-13 (31) "Representative" means any person who is or
9-14 acts as an agent, employee or representative of a manufacturer,
9-15 distributor, or converter who performs any duties in this State
9-16 relating to promoting the distribution and/or sale of new motor
9-17 vehicles or contacts dealers in this State on behalf of a
9-18 manufacturer, distributor, or converter.
9-19 (32) "Retail sale" means the sale of a motor
9-20 vehicle except:
9-21 (A) a sale in which the purchaser acquires
9-22 a vehicle for the purpose of resale; or
9-23 (B) a sale of a vehicle that is operated
9-24 under and in accordance with Section 503.061, Transportation Code.
9-25 (33) "Rule" means a statement by the Commission
9-26 of general and future applicability that implements, interprets, or
10-1 prescribes law or policy or describes the organization or
10-2 procedural practice requirements of the Commission. The term
10-3 includes the amendment or repeal of a prior rule, but does not
10-4 include statements concerning only the internal management of the
10-5 Commission which do not affect the rights of a person not connected
10-6 with the Commission.
10-7 (34) "Transportation Commission" means the Texas
10-8 Transportation Commission of the Texas Department of
10-9 Transportation.
10-10 (35) "Warranty work" means parts, labor, and any
10-11 other expenses incurred by a franchised dealer in complying with
10-12 the terms of a manufacturer's or distributor's warranty.
10-13 SECTION 2. Section 2.01(a), Texas Motor Vehicle Commission
10-14 Code (Article 4413(36), Vernon's Texas Civil Statutes), is amended
10-15 to read as follows:
10-16 Section. 2.01. TEXAS MOTOR VEHICLE BOARD. (a) In
10-17 conducting the policy-making and regulatory functions and duties
10-18 imposed on the board by this Act, whether mandatory or
10-19 discretionary, and unless otherwise provided by this Act, the board
10-20 is an independent entity [within the department and is not an
10-21 advisory body to the department]. The board shall carry out the
10-22 functions and duties conferred upon it by this Act and by other
10-23 provision of law.
10-24 SECTION 3. Section 2.02(a), Texas Motor Vehicle Commission
10-25 Code (Article 4413(36), Vernon's Texas Civil Statutes), is amended
10-26 to read as follows:
11-1 (a) The board [Motor Vehicle Board of the Texas
11-2 Department of Transportation] consists of nine persons appointed by
11-3 the Governor with the advice and consent of the Senate.
11-4 SECTION 4. Section 2.02(b), Texas Motor Vehicle Commission
11-5 Code (Article 4413(36), Vernon's Texas Civil Statutes), is
11-6 repealed. Section 2.02(c), Texas Motor Vehicle Commission Code
11-7 (Article 4413(36), Vernon's Texas Civil Statutes) is renumbered
11-8 Subsection (b).
11-9 SECTION 5. Section 2.03A, Texas Motor Vehicle Commission
11-10 Code (Article 4413(36), Vernon's Texas Civil Statutes), is amended
11-11 to read as follows:
11-12 Sec. 2.03A. Training [ON DEPARTMENT AND CERTAIN LAWS
11-13 RELATING TO DEPARTMENT]. (a) To be eligible to take office as a
11-14 member of the board [Commission], a person [appointed to the
11-15 Commission] must complete at least one course of a training program
11-16 that complies with this section.
11-17 (b) The training program must provide information to
11-18 the person regarding:
11-19 (1) this Act;
11-20 (2) the programs operated by the board
11-21 [department];
11-22 (3) the role and functions of the board
11-23 [department];
11-24 (4) the rules of the board [department] with an
11-25 emphasis on the rules that relate to disciplinary and investigatory
11-26 authority;
12-1 (5) the current budget for the department;
12-2 (6) the results of the most recent formal audit
12-3 of the department;
12-4 (7) the requirements of the:
12-5 (A) open meetings law, Chapter 551,
12-6 Government Code;
12-7 (B) open records law, Chapter 552,
12-8 Government Code; and
12-9 (C) administrative procedure law, Chapter
12-10 2001, Government Code;
12-11 (8) the requirements of the conflict of interest
12-12 laws and other laws relating to public officials; and
12-13 (9) any applicable ethics policies adopted by
12-14 the Commission or the Texas Ethics Commission.
12-15 (c) A person appointed to the board [Commission] is
12-16 entitled to reimbursement for travel expenses incurred in attending
12-17 the training program, as provided by the General Appropriations Act
12-18 and as if the person were a member of the board [Commission].
12-19 SECTION 6. Section 2.08A(c), Texas Motor Vehicle Commission
12-20 Code (Article 4413(36), Vernon's Texas Civil Statutes), is amended
12-21 to read as follows:
12-22 (c) If the Director has knowledge that a
12-23 potential ground for removal exists, the Director shall notify the
12-24 Chairman of the Commission of the ground. The Chairman shall then
12-25 notify the Governor and the Attorney General that a potential
12-26 ground for removal exists. If the potential ground for removal
13-1 relates to the Chairman of the Commission, the [Executive] Director
13-2 shall notify the Vice-chairman of the Commission, who shall notify
13-3 the Governor and the Attorney General that a potential ground for
13-4 removal exists.
13-5 SECTION 7. Section 2.09(a), Texas Motor Vehicle Commission
13-6 Code (Article 4413(36), Vernon's Texas Civil Statutes), is amended
13-7 to read as follows:
13-8 (a) The board [Executive Director] shall appoint the
13-9 Director, who is the board's chief executive and administrative
13-10 officer. The Director shall administer, enforce, and carry [, who
13-11 shall be an attorney licensed to practice law in this state, is
13-12 charged with administering, enforcing, and carrying] out the
13-13 provisions of this Act. A person is eligible to serve as director
13-14 if the person is licensed to practice law in Texas. [The Director
13-15 serves at the pleasure of the Executive Director].
13-16 SECTION 8. Section 2.10, Texas Motor Vehicle Commission Code
13-17 (Article 4413(36), Vernon's Texas Civil Statutes), is amended to
13-18 read as follows:
13-19 Sec. 2.10. Revenues. (a) Notwithstanding a law to the
13-20 contrary, including without limitation the provisions of Section
13-21 403.094(h), Government Code, all money paid to the board
13-22 [Commission] under this Act shall be deposited in the State
13-23 Treasury to the credit of the state highway fund.
13-24 (b) The board [Commission] shall file annually with
13-25 the Governor and the presiding officer of each house of the
13-26 legislature a complete and detailed written report accounting for
14-1 all funds received and disbursed by the board [Commission] during
14-2 the preceding fiscal year. The annual report must comply with each
14-3 reporting requirement applicable to financial reporting provided by
14-4 the General Appropriations Act.
14-5 (c) The financial transactions of the board
14-6 [Commission] are subject to audit by the state auditor in
14-7 accordance with Chapter 321, Government Code.
14-8 SECTION 9. Section 2.13, Texas Motor Vehicle Commission Code
14-9 (Article 4413(36), Vernon's Texas Civil Statutes), is amended to
14-10 read as follows:
14-11 Section 2.13. Intraagency career ladder program; annual
14-12 performance evaluations; information; equal opportunity
14-13 implementation plan; public information. (a) The [Executive]
14-14 Director or his designee shall develop an intraagency career ladder
14-15 program that addresses opportunities for mobility and advancement
14-16 of employees in the board [Commission]. The program shall require
14-17 intraagency postings of all positions concurrently with any public
14-18 posting.
14-19 (b) The [Executive] Director or his designee shall
14-20 develop a system of annual performance evaluations that are based
14-21 on documented employee performance. All merit pay for board
14-22 [Commission] employees must be based on the system established
14-23 under this subsection.
14-24 (c) The [Executive] Director or his designee shall
14-25 prepare information describing the functions of the board
14-26 [Commission] and describing the procedures by which complaints or
15-1 protests are filed with and resolved by the board [Commission].
15-2 The board [Commission] shall make the information available to the
15-3 general public and appropriate state agencies.
15-4 (d) The [Executive] Director or his designee shall
15-5 prepare and maintain a written policy statement to assure
15-6 implementation of a program of equal employment opportunity under
15-7 which all personnel transactions are made without regard to race,
15-8 color, disability, sex, religion, age, or national origin. The
15-9 policy statement must include:
15-10 (1) personnel policies, including policies
15-11 relating to recruitment, evaluation, selection, appointment,
15-12 training, and promotion of personnel that comply with Chapter 21,
15-13 Labor Code;
15-14 (2) a comprehensive analysis of the board's
15-15 [Commission] work force that meets federal and state laws, rules,
15-16 and regulations and instructions directly adopted under those laws,
15-17 rules, or regulations;
15-18 (3) procedures by which a determination can be
15-19 made of significant underuse in the board [Commission] work force
15-20 of all persons for whom federal or state laws, rules, and
15-21 regulations and instructions directly adopted under those laws,
15-22 rules, or regulations, encourage a more equitable balance; and
15-23 (4) reasonable methods to appropriately address
15-24 those areas of significant underuse.
15-25 A policy statement prepared under this subsection must cover an
15-26 annual period, be updated at least annually, be reviewed by the
16-1 Texas Commission on Human Rights for compliance with Subdivision
16-2 (1) of this subsection, and be filed with the Governor's office.
16-3 The Governor's office shall deliver a biennial report to the
16-4 legislature based on the information received under this
16-5 subsection. The report may be made separately or as a part of
16-6 other biennial reports made to the legislature.
16-7 (e) The board [Commission] shall comply with Chapter
16-8 2001, Government Code [Section 4(a)(2), Administrative Procedure
16-9 and Texas Register Act (Article 6252-13a, Vernon's Texas Civil
16-10 Statutes), ] by indexing and making available for public inspection
16-11 all:
16-12 (1) rules and all other written statements of
16-13 policy or interpretations formulated, adopted, or used by the board
16-14 [Commission] in the discharge of its functions; and
16-15 (2) [.(f) The Commission shall comply with
16-16 Section 4(a)(3), Administrative Procedure and Texas Register Act
16-17 (Article 6252-13a, Vernon's Texas Civil Statutes), by indexing and
16-18 making available for public inspection all of] the board's
16-19 [Commission's] final orders, decisions, and opinions.
16-20 SECTION 10. Section 3.01A, Texas Motor Vehicle Commission
16-21 Code (Article 4413(36), Vernon's Texas Civil Statutes), is
16-22 repealed.
16-23 SECTION 11. Subsections (a) and (c), Section 6.07, Texas
16-24 Motor Vehicle Commission Code (Article 4413(36), Vernon's Texas
16-25 Civil Statutes) are amended to read as follows:
16-26 (a) In addition to the other powers and duties
17-1 provided for in this Act, the board [Commission] shall cause
17-2 manufacturers, converters, and distributors to perform the
17-3 obligations imposed by this section. For purposes of this section,
17-4 the term "owner" means a retail purchaser, lessor, lessee other
17-5 than a sublessee, or the person so designated on the certificate of
17-6 title to a motor vehicle issued by the board [Texas Department of
17-7 Transportation,] or an equivalent document issued by the duly
17-8 authorized agency of any other state, or any person to whom such
17-9 motor vehicle is legally transferred during the duration of a
17-10 manufacturer's or distributor's express warranty applicable to such
17-11 motor vehicle, and any other person entitled by the terms of the
17-12 manufacturer's, converter's, or distributor's express warranty to
17-13 enforce the obligations thereof.
17-14 (c) If the manufacturer, converter, or distributor is
17-15 unable to conform the motor vehicle to an applicable express
17-16 warranty by repairing or correcting any defect or condition which
17-17 creates a serious safety hazard or substantially impairs the use or
17-18 market value of the motor vehicle after a reasonable number of
17-19 attempts, the manufacturer, converter, or distributor shall (1)
17-20 replace the motor vehicle with a comparable motor vehicle; or (2)
17-21 accept return of the vehicle from the owner and refund to the owner
17-22 the full purchase price less a reasonable allowance for the owner's
17-23 use of the vehicle and any other allowances or refunds payable to
17-24 the owner. In this section, "impairment of market value" means a
17-25 substantial loss in market value caused by a defect specific to the
17-26 vehicle. In addition to replacing the vehicle or refunding the
18-1 purchase price, the manufacturer, converter, or distributor shall
18-2 reimburse the owner for reasonable incidental costs resulting from
18-3 loss of use of the motor vehicle because of the nonconformity or
18-4 defect. As necessary to promote the public interest, the board
18-5 [Commission] by rule shall define the incidental costs that are
18-6 eligible for reimbursement, shall specify other requirements
18-7 necessary to determine an eligible cost, and may set a maximum
18-8 amount that is eligible for reimbursement, either by type of
18-9 eligible cost or a total for all costs. Refunds shall be made to
18-10 the owner and lienholder, if any, as their interests may appear. A
18-11 reasonable allowance for use shall be that amount directly
18-12 attributable to use of the motor vehicle when the vehicle is not
18-13 out of service for repair. An order to refund or to replace may
18-14 not be issued by the [Executive] Director against a manufacturer,
18-15 converter, or distributor unless the manufacturer, converter, or
18-16 distributor has been mailed prior written notification of the
18-17 alleged nonconformity or defect from or on behalf of the owner and
18-18 has been given an opportunity to cure the alleged defect or
18-19 nonconformity. In any hearing before the [Executive] Director
18-20 under this section, a manufacturer, converter, or distributor may
18-21 plead and prove as an affirmative defense to the remedies provided
18-22 hereunder that (1) the nonconformity is the result of abuse,
18-23 neglect, or unauthorized modifications or alterations of the motor
18-24 vehicle; or (2) the nonconformity does not substantially impair the
18-25 use or market value of the motor vehicle. In this section, "serious
18-26 safety hazard" means a life-threatening malfunction or
19-1 nonconformity that substantially impedes a person's ability to
19-2 control or operate a motor vehicle for ordinary use or intended
19-3 purposes or that creates a substantial risk of fire or explosion.
19-4 SECTION 12. Section 7.01(b), Texas Motor Vehicle Commission
19-5 Code (Article 4413(36), Vernon's Texas Civil Statutes), is amended
19-6 to read as follows:
19-7 (b) A final action, ruling, order, or decision of the
19-8 Motor Vehicle Board of the board [Texas Department of
19-9 Transportation, or the Director of the Motor Vehicle Division of
19-10 the Texas Department of Transportation, as appropriate] under the
19-11 terms of this Act or other law, is the final action with respect to
19-12 a matter arising under this Act, and is subject to review only by
19-13 judicial review as provided by this Act. The petition for judicial
19-14 review must be filed within 30 days of the date on which an action,
19-15 ruling, order, or decision of the board [Board] or the director
19-16 first becomes final and appealable.
19-17 SECTION 13. Section 503.001, Transportation Code, is amended
19-18 to read as follows:
19-19 Section 503.001. Definitions. In this chapter:
19-20 (1) "Commission" means the Texas Transportation
19-21 Commission.
19-22 (2) "Board" means the Texas Motor Vehicle Board
19-23 created by the Texas Motor Vehicle Commission Code.
19-24 (3) [(2)] "Dealer" means a person who regularly
19-25 and actively buys, sells, or exchanges vehicles at an established
19-26 and permanent location. The term includes a franchised motor
20-1 vehicle dealer, an independent motor vehicle dealer, and a
20-2 wholesale motor vehicle dealer.
20-3 (4) [(3)] "Department" means the Texas
20-4 Department of Transportation.
20-5 (5) [(4)] "Drive-a-way operator" means a person
20-6 who transports and delivers a vehicle in this state from the
20-7 manufacturer or another point of origin to a location in this state
20-8 using the vehicle's own power or using the full-mount method, the
20-9 saddle-mount method, the tow-bar method, or a combination of those
20-10 methods.
20-11 (6) [(5)] "Franchise" has the meaning assigned
20-12 by the Texas Motor Vehicle Commission Code (Article 4413(36),
20-13 Vernon's Texas Civil Statutes).
20-14 (7) [(6)] "Franchised motor vehicle dealer"
20-15 means a person engaged in the business of buying, selling, or
20-16 exchanging new motor vehicles at an established and permanent place
20-17 of business under a franchise in effect with a motor vehicle
20-18 manufacturer or distributor.
20-19 (8) [(7)] "Independent motor vehicle dealer"
20-20 means a dealer other than a franchised motor vehicle dealer or a
20-21 wholesale motor vehicle dealer.
20-22 (9) [(8)] "Manufacturer" means a person who
20-23 manufactures, distributes, or assembles new vehicles.
20-24 (10) [(9)] "Motorcycle" has the meaning assigned
20-25 by Section 502.001.
20-26 (11) [(10)] "Motor vehicle" has the meaning
21-1 assigned by Section 502.001.
21-2 (12) [(11)] "Semitrailer" has the meaning
21-3 assigned by Section 502.001.
21-4 (13) [(12)] "Trailer" has the meaning assigned
21-5 by Section 502.001.
21-6 (14) [(13)] "Vehicle" means a motor vehicle,
21-7 motorcycle, house trailer, trailer, or semitrailer.
21-8 (15) [(14)] "Wholesale motor vehicle auction"
21-9 means the offering of a motor vehicle for sale to the highest
21-10 bidder during a transaction that is one of a series of regular
21-11 periodic transactions that occur at a permanent location.
21-12 (16) [(15)] "Wholesale motor vehicle dealer"
21-13 means a dealer who sells motor vehicles only to a person who is:
21-14 (A) the holder of a dealer's general
21-15 distinguishing number; or
21-16 (B) a foreign dealer authorized by a law
21-17 of this state or interstate reciprocity agreement to purchase a
21-18 vehicle in this state without remitting the motor vehicle sales
21-19 tax.
21-20 SECTION 14. Section 503.002, Transportation Code, is amended
21-21 to read as follows:
21-22 Section 503.002. Rules. The commission or the board
21-23 may adopt rules for the administration of this chapter.
21-24 SECTION 15. Section 503.003, Transportation Code, is amended
21-25 to read as follows:
21-26 Section 503.003. Display or Sale of Nonmotorized
22-1 Vehicle or Trailer. This chapter does not prohibit the display or
22-2 sale of a nonmotorized vehicle or trailer at a regularly scheduled
22-3 vehicle or boat show with multiple vendors in accordance with board
22-4 [commission] rules.
22-5 SECTION 16. Section 503.005, Transportation Code, is amended
22-6 to read as follows:
22-7 Section 503.005. Notice of Sale or Transfer. (a) A
22-8 manufacturer or dealer shall immediately notify the board
22-9 [department] if the manufacturer or dealer transfers, including by
22-10 sale or lease, a motor vehicle, trailer, or semitrailer to a person
22-11 other than a manufacturer or dealer.
22-12 (b) The notice must be in writing using the form
22-13 provided by the board [department] and must include:
22-14 (1) the date of the transfer;
22-15 (2) the names and addresses of the transferrer
22-16 and transferee; and
22-17 (3) a description of the vehicle.
22-18 SECTION 17. Section 503.006, Transportation Code, is amended
22-19 to read as follows:
22-20 Section 503.006. Notice of Change of Address. A dealer or
22-21 manufacturer who has been issued dealer's or manufacturer's license
22-22 plates shall notify the board [department] of a change to the
22-23 dealer's or manufacturer's address not later than the 10th day
22-24 after the date the change occurs.
22-25 SECTION 18. Section 503.007(d), Transportation Code, is
22-26 amended to read as follows:
23-1 (d) A fee collected under this section shall be
23-2 deposited to the credit of the state highway fund.
23-3 SECTION 19. Section 503.008(d), Transportation Code, is
23-4 amended to read as follows:
23-5 (d) A fee collected under this section shall be
23-6 deposited to the credit of the state highway fund.
23-7 SECTION 20. Section 503.024(c), Transportation Code, is
23-8 amended to read as follows:
23-9 (c) For the purposes of Section 503.021, a domiciliary
23-10 of another state who holds a dealer license and bond, if
23-11 applicable, issued by the other state is not engaging in business
23-12 as a dealer by buying a vehicle from, selling a vehicle to, or
23-13 exchanging a vehicle with a person who:
23-14 (1) holds a general distinguishing number issued
23-15 by the board [department], if the transaction is not intended to
23-16 avoid a requirement of this chapter; or
23-17 (2) is a domiciliary of another state who holds
23-18 a dealer license and bond, if applicable, issued by the other state
23-19 and the transaction is not intended to avoid a requirement of this
23-20 chapter.
23-21 SECTION 21. Section 503.027(b), Transportation Code, is
23-22 amended to read as follows:
23-23 (b) If a person is not otherwise prohibited from doing
23-24 business as a dealer at more than one location in the territory of
23-25 a municipality, a person may buy, sell, or exchange a vehicle of
23-26 the type for which the person holds a dealer general distinguishing
24-1 number from more than one location in the territory of the
24-2 municipality without obtaining an additional dealer general
24-3 distinguishing number. Each location must comply with the
24-4 requirements prescribed by this chapter and board [commission]
24-5 rules relating to an established and permanent place of business.
24-6 SECTION 22. Section 503.028(a), Transportation Code, is
24-7 amended to read as follows:
24-8 (a) Except as provided by Subsection (b), the board
24-9 [department] may not issue more than one general distinguishing
24-10 number for a location for which the wholesale motor vehicle auction
24-11 general distinguishing number has been issued.
24-12 SECTION 23. Section 503.029(a), Transportation Code, is
24-13 amended to read as follows:
24-14 (a) An applicant for an original or renewal dealer
24-15 general distinguishing number must submit to the department a
24-16 written application on a form that:
24-17 (1) is provided by the board [department];
24-18 (2) contains the information required by the
24-19 board [department];
24-20 (3) contains information that demonstrates the
24-21 person meets the requirements prescribed by Section 503.032;
24-22 (4) contains information that demonstrates the
24-23 applicant has complied with all applicable state laws and municipal
24-24 ordinances;
24-25 (5) states that the applicant agrees to allow
24-26 the board reasonable access [department to examine] during working
25-1 hours, to the ownership papers for each registered or unregistered
25-2 vehicle in the applicant's possession or control in the manner and
25-3 subject to the procedures set forth in the Texas Motor Vehicle
25-4 Commission Code; and
25-5 (6) specifies whether the applicant proposes to
25-6 be [a]:
25-7 (A) a franchised motor vehicle dealer;
25-8 (B) a independent motor vehicle dealer;
25-9 (C) a wholesale motor vehicle dealer;
25-10 (D) a motorcycle dealer;
25-11 (E) a house trailer dealer; or
25-12 (F) a trailer or semitrailer dealer.
25-13 SECTION 24. Section 503.030(a), Transportation Code, is
25-14 amended to read as follows:
25-15 (a) An applicant for an original or renewal wholesale
25-16 motor vehicle auction general distinguishing number must submit to
25-17 the board [department] an application that contains:
25-18 (1) the information required by the department;
25-19 (2) information that demonstrates the person
25-20 meets the requirements prescribed by Section 503.032; and
25-21 (3) information that demonstrates the applicant
25-22 has complied with all applicable state laws and municipal
25-23 ordinances.
25-24 SECTION 25. Section 503.031(a), Transportation Code, is
25-25 amended to read as follows:
25-26 (a) An applicant for a drive-a-way in-transit license
26-1 must submit to the board [commission] an application containing the
26-2 information required by the board [commission].
26-3 SECTION 26. Section 503.032(a), Transportation Code, is
26-4 amended to read as follows:
26-5 (a) An applicant for a dealer general distinguishing
26-6 number or wholesale motor vehicle auction general distinguishing
26-7 number must demonstrate that the location for which the applicant
26-8 requests the number is an established and permanent place of
26-9 business. A location is considered to be an established and
26-10 permanent place of business if the applicant:
26-11 (1) owns the real property on which the business
26-12 is situated or has a written lease for the property that has a term
26-13 of not less than one year;
26-14 (2) maintains on the location:
26-15 (A) a permanent furnished office that is
26-16 equipped as required by the board [department] for the sale of the
26-17 vehicles of the type specified in the application; and
26-18 (B) a conspicuous sign with letters at
26-19 least six inches high showing the name of the applicant's business;
26-20 and
26-21 (3) has sufficient space on the location to
26-22 display at least five vehicles of the type specified in the
26-23 application.
26-24 SECTION 27. Subsections (a), (c), and (g), Section 503.033,
26-25 Transportation Code, are amended to read as follows:
26-26 (a) The board [department] may not issue or renew a
27-1 motor vehicle dealer general distinguishing number or a wholesale
27-2 motor vehicle auction general distinguishing number unless the
27-3 applicant provides to the board [department]:
27-4 (1) satisfactory proof that the applicant has
27-5 purchased a properly executed surety bond in the amount of $25,000
27-6 with a good and sufficient surety approved by the board
27-7 [department]; or
27-8 (2) other security under Subsection (c).
27-9 (c) In lieu of the surety bond, the board [department]
27-10 may accept and receive for the surety obligation:
27-11 (1) a pledge of cash;
27-12 (2) a cash deposit;
27-13 (3) a certificate of deposit; or
27-14 (4) another instrument the board [department]
27-15 determines to be adequate security.
27-16 (g) This section does not apply to a person licensed
27-17 as a franchised motor vehicle dealer [by the department's Motor
27-18 Vehicle Board].
27-19 SECTION 28. Section 503.034, Transportation Code, is amended
27-20 to read as follows:
27-21 Section 503.034. Issuance and Renewal or Denial of Dealer or
27-22 Wholesale Motor Vehicle Auction General Distinguishing Number.
27-23 (a) The board [department] shall deny an application
27-24 for the issuance or renewal of a dealer general distinguishing
27-25 number or a wholesale motor vehicle auction general distinguishing
27-26 number if the board [department] is satisfied from the application
28-1 or from other information before it that:
28-2 (1) information in the application is not true;
28-3 or
28-4 (2) the applicant is guilty of conduct that
28-5 would result in the cancellation of the general distinguishing
28-6 number under Section 503.038.
28-7 (b) The board [department] may not issue a dealer
28-8 general distinguishing number until the applicant complies with the
28-9 requirements of this chapter.
28-10 (c) A dealer's general distinguishing number expires
28-11 on March 31 of each year, unless provided otherwise by law or rule
28-12 of the board [department's Motor Vehicle Board].
28-13 SECTION 29. Section 503.035, Transportation Code, is amended
28-14 to read as follows:
28-15 Section 503.035. Issuance and Renewal of Drive-A-Way
28-16 In-Transit License. The board [department] shall issue to an
28-17 applicant on the filing of the application and the payment of the
28-18 fee an annual drive-a-way in-transit license and in-transit license
28-19 plates.
28-20 SECTION 30. Subsections (a), (b), and (c), Section 503.038,
28-21 Transportation Code, are amended to read as follows:
28-22 (a) The board [department] may cancel a dealer's
28-23 general distinguishing number if the dealer:
28-24 (1) falsifies or forges a title document,
28-25 including an affidavit making application for a certified copy of a
28-26 title;
29-1 (2) files a false or forged tax document,
29-2 including a sales tax affidavit;
29-3 (3) fails to take assignment of any basic
29-4 evidence of ownership, including a certificate of title or
29-5 manufacturer's certificate, for a vehicle the dealer acquires;
29-6 (4) fails to assign any basic evidence of
29-7 ownership, including a certificate of title or manufacturer's
29-8 certificate, for a vehicle the dealer sells;
29-9 (5) uses or permits the use of a metal dealer's
29-10 license plate or a dealer's temporary cardboard tag on a vehicle
29-11 that the dealer does not own or control or that is not in stock and
29-12 offered for sale;
29-13 (6) makes a material misrepresentation in an
29-14 application or other information filed with the board [department];
29-15 (7) fails to maintain the qualifications for a
29-16 general distinguishing number;
29-17 (8) fails to provide to the board [department]
29-18 within 30 days after the date of demand by the board [department]
29-19 satisfactory and reasonable evidence that the person is regularly
29-20 and actively engaged in business as a wholesale or retail dealer;
29-21 (9) has been licensed for at least 12 months and
29-22 has not assigned at least five vehicles during the previous
29-23 12-month period;
29-24 (10) has failed to demonstrate compliance with
29-25 Sections 23.12, 23.121, and 23.122, Tax Code;
29-26 (11) uses or allows the use of the dealer's
30-1 general distinguishing number or the location for which the general
30-2 distinguishing number is issued to avoid the requirements of this
30-3 chapter;
30-4 (12) misuses or allows the misuse of a temporary
30-5 cardboard tag authorized under this chapter;
30-6 (13) refuses to show on a buyer's temporary
30-7 cardboard tag the date of sale or other reasonable information
30-8 required by the board [department]; or
30-9 (14) otherwise violates this chapter or a rule
30-10 adopted under this chapter.
30-11 (b) The board [department] shall cancel a dealer's
30-12 general distinguishing number if the dealer obtains the number by
30-13 submitting false or misleading information.
30-14 (c) A person whose general distinguishing number is
30-15 canceled under this chapter shall surrender to a representative of
30-16 the board [department] each license plate, temporary cardboard tag,
30-17 sticker, and receipt issued under this chapter not later than the
30-18 10th day after the date the general distinguishing number is
30-19 canceled. The board [department] shall direct any peace officer to
30-20 secure and return to the board [department] any plate, tag,
30-21 sticker, or receipt of a person who does not comply with this
30-22 subsection.
30-23 SECTION 31. Section 503.0615, Transportation Code, is
30-24 amended to read as follows:
30-25 Section 503.0615. PERSONALIZED PRESTIGE DEALER'S LICENSE
30-26 PLATES. (a) The board [department] shall establish and issue
31-1 personalized prestige dealer's license plates. The board
31-2 [department] may not issue identically lettered or numbered
31-3 dealer's plates to more than one dealer.
31-4 (b) The board [department] shall establish procedures
31-5 for continuous application for and issuance of personalized
31-6 prestige dealer's license plates. A dealer must make a new
31-7 application and pay a new fee for each registration period for
31-8 which the dealer seeks to obtain personalized prestige dealer's
31-9 license plates. A dealer who obtains personalized prestige
31-10 dealer's license plates has first priority on those plates for each
31-11 subsequent registration period for which the dealer applies.
31-12 (c) The annual fee for personalized prestige dealer's
31-13 license plates is $40, in addition to any fee otherwise prescribed
31-14 by this chapter.
31-15 (d) The board [department] may issue to an applicant
31-16 only one set of personalized prestige dealer's license plates for a
31-17 vehicle for a six-year period. The board [department] may issue a
31-18 new set of personalized prestige dealer's license plates within the
31-19 six-year period if the applicant pays a fee of $50 in addition to
31-20 the fees required by Subsection (c).
31-21 (e) On application and payment of the required fee for
31-22 a registration period following the issuance of the plates, the
31-23 board [department] shall issue a registration insignia.
31-24 (f) Of each fee collected by the board [department]
31-25 under this section:
31-26 (1) $1.25 shall be deposited to the credit of
32-1 the state highway fund to defray the cost of administering this
32-2 section; and
32-3 (2) the remainder shall be deposited to the
32-4 credit of the general revenue fund.
32-5 SECTION 32. Section 503.062(d), Transportation Code, is
32-6 amended to read as follows:
32-7 (d) The board [department] may not issue a dealer
32-8 temporary cardboard tag or contract for the issuance of a dealer
32-9 temporary cardboard tag but shall prescribe:
32-10 (1) the specifications, form, and color of a
32-11 dealer temporary cardboard tag; and
32-12 (2) the period for which a tag may be used for
32-13 or by a charitable organization.
32-14 SECTION 33. Section 503.063(e), Transportation Code, is
32-15 amended to read as follows:
32-16 (e) The board [department] may not issue a buyer's tag
32-17 or contract for the issuance of a buyer's tag but shall prescribe
32-18 the specifications, color, and form of a buyer's tag.
32-19 SECTION 34. Subsections (a), (b), and (d), Section 503.065,
32-20 Transportation Code, are amended to read as follows:
32-21 (a) The board [department] may issue or cause to be
32-22 issued to a person a temporary license plate made of cardboard or
32-23 similar material authorizing the person to operate a new
32-24 unregistered vehicle on a public highway of this state if the
32-25 person:
32-26 (1) buys the vehicle from a dealer outside this
33-1 state and intends to drive the vehicle from the dealer's place of
33-2 business; or
33-3 (2) buys the vehicle from a dealer in this state
33-4 but intends to drive the vehicle from the manufacturer's place of
33-5 business outside this state.
33-6 (b) The board [department] may not issue a temporary
33-7 license plate under this section to a manufacturer or dealer of a
33-8 motor vehicle, trailer, or semitrailer or to a representative of
33-9 such a dealer.
33-10 (d) A temporary license plate issued under this
33-11 section expires not later than the 30th day after the date on which
33-12 it is issued. The board [department] shall place or cause to be
33-13 placed on the license plate at the time of issuance the date of
33-14 expiration and the type of vehicle for which the license plate is
33-15 issued.
33-16 SECTION 35. Subsections (a) and (e), Section 503.066,
33-17 Transportation Code, are amended to read as follows:
33-18 (a) An applicant for one or more original or renewal
33-19 dealer's or manufacturer's license plates must submit to the board
33-20 [department] a written application on a form that:
33-21 (1) is provided by the board [department]; and
33-22 (2) contains a statement that the applicant
33-23 agrees to allow the board reasonable access [department to examine]
33-24 during working hours, to the ownership papers for each registered
33-25 or unregistered vehicle in the applicant's possession or control in
33-26 the manner and subject to the procedures set forth in the Texas
34-1 Motor Vehicle Commission Code.
34-2 (e) A license plate issued under this section expires
34-3 on March 31 of the year after the year of issuance, unless provided
34-4 otherwise by law or rule of the board[department's Motor Vehicle
34-5 Board].
34-6 SECTION 36. Section 503.069(a), Transportation Code, is
34-7 amended to read as follows:
34-8 (a) A license plate, other than an in-transit license
34-9 plate, or a temporary cardboard tag issued under this chapter shall
34-10 be displayed in accordance with board [commission] rules.
34-11 SECTION 37. Section 503.091, Transportation Code, is amended
34-12 to read as follows:
34-13 Section 503.091. Enforcement Agreement. The board
34-14 [department] may agree with an authorized official of another
34-15 jurisdiction to regulate activities and exchange information
34-16 relating to the wholesale operations of nonresident vehicle
34-17 dealers.
34-18 SECTION 38. Section 503.093, Transportation Code, is amended
34-19 to read as follows:
34-20 Section 503.093. Action to Enforce Subchapter. (a) The
34-21 board [department] or any interested person may bring an action,
34-22 including an action for an injunction, to:
34-23 (1) enforce a provision of Subchapter B; or
34-24 (2) prohibit a person from operating in
34-25 violation of the person's application for a general distinguishing
34-26 number.
35-1 (b) A plaintiff other than the board [department] may
35-2 recover the plaintiff's attorney's fees.
35-3 SECTION 39. TRANSITION. (a) Beginning September 1, 2001
35-4 the duties and functions of the Texas Motor Vehicle Board assigned
35-5 to or performed by the Texas Department of Transportation are
35-6 transferred to the Texas Motor Vehicle Board.
35-7 (b) The Texas Motor Vehicle Board and the Texas
35-8 Department of Transportation shall develop a plan for the
35-9 implementation of this Act and for the transition of the Texas
35-10 Motor Vehicle Board from the Texas Department of Transportation to
35-11 the status of independent agency. That plan may include any aspect
35-12 of the orderly transfer of duties, property and obligations of the
35-13 parties.
35-14 (c) As of September 1, 2001, the Texas Motor Vehicle
35-15 Board is an independent agency of the state.
35-16 SECTION 40. EFFECTIVE DATE. This Act takes effect September
35-17 1, 1999.
35-18 SECTION 41. EMERGENCY. The importance of this legislation
35-19 and the crowded condition of the calendars in both houses create an
35-20 emergency and an imperative public necessity that the
35-21 constitutional rule requiring bills to be read on three several
35-22 days in each house be suspended, and this rule is hereby suspended.