By Alexander                                          H.B. No. 1664
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to certain regulations of the sale and operation of
 1-3     certain vehicles.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Section 501.0234(b), Transportation Code, is
 1-6     amended to read as follows:
 1-7           (b)  This section does not apply to a vehicle:
 1-8                 (1)  that has been declared a total loss by an
 1-9     insurance company in the settlement or adjustment of a claim; [or]
1-10                 (2)  for which the certificate of title has been
1-11     surrendered in exchange for:
1-12                       (A)  a salvage certificate of title issued under
1-13     this chapter;
1-14                       (B)  a nonrepairable motor vehicle certificate of
1-15     title issued under this chapter;
1-16                       (C)  a certificate of authority issued under
1-17     Subchapter D, Chapter 683; or
1-18                       (D)  an ownership document issued by another
1-19     state that is comparable to a document described by Paragraphs
1-20     (A)-(C); or
1-21                 (3)  with a gross weight in excess of 11,000 pounds.
1-22           SECTION 2. Section 501.074, Transportation Code, is amended
1-23     by adding Subsection (d) to read as follows:
1-24           (d)  Notwithstanding the terms of Section 501.005, in the
 2-1     event of a conflict between this section and other law, this
 2-2     section controls.
 2-3           SECTION 3. Section 503.001, Transportation Code, is amended
 2-4     to read as follows:
 2-5           Sec. 503.001.  DEFINITIONS. In this chapter:
 2-6                 (1)  "Board" has the meaning assigned by the Texas
 2-7     Motor Vehicle Commission Code (Article 4413(36), Vernon's Texas
 2-8     Civil Statutes).
 2-9                 (2)  "Commission" means the Texas Transportation
2-10     Commission.
2-11                 (3)  "Converter" has the meaning assigned by the Texas
2-12     Motor Vehicle Commission Code (Article 4413(36), Vernon's Texas
2-13     Civil Statutes).
2-14                 (4) [(2)]  "Dealer" means a person who regularly and
2-15     actively buys, sells, or exchanges vehicles at an established and
2-16     permanent location.  The term includes a franchised motor vehicle
2-17     dealer, an independent motor vehicle dealer, and a wholesale motor
2-18     vehicle dealer.
2-19                 (5) [(3)]  "Department" means the Texas Department of
2-20     Transportation.
2-21                 (6) [(4)]  "Drive-a-way operator" means a person who
2-22     transports and delivers a vehicle in this state from the
2-23     manufacturer or another point of origin to a location in this state
2-24     using the vehicle's own power or using the full-mount method, the
2-25     saddle-mount method, the tow-bar method, or a combination of those
2-26     methods.
2-27                 (7) [(5)]  "Franchise" has the meaning assigned by the
 3-1     Texas Motor Vehicle Commission Code (Article 4413(36), Vernon's
 3-2     Texas Civil Statutes).
 3-3                 (8) [(6)]  "Franchised motor vehicle dealer" means a
 3-4     person engaged in the business of buying, selling, or exchanging
 3-5     new motor vehicles at an established and permanent place of
 3-6     business under a franchise in effect with a motor vehicle
 3-7     manufacturer or distributor.
 3-8                 (9) [(7)]  "Independent motor vehicle dealer" means a
 3-9     dealer other than a franchised motor vehicle dealer or a wholesale
3-10     motor vehicle dealer.
3-11                 (10) [(8)]  "Manufacturer" means a person who
3-12     manufactures, distributes, or assembles new vehicles.
3-13                 (11) [(9)]  "Motorcycle" has the meaning assigned by
3-14     Section 502.001.
3-15                 (12) [(10)]  "Motor vehicle" has the meaning assigned
3-16     by Section 502.001.
3-17                 (13) [(11)]  "Semitrailer" has the meaning assigned by
3-18     Section 502.001.
3-19                 (14) [(12)]  "Trailer" has the meaning assigned by
3-20     Section 502.001.
3-21                 (15) [(13)]  "Vehicle" means a motor vehicle,
3-22     motorcycle, house trailer, trailer, or semitrailer.
3-23                 (16) [(14)]  "Wholesale motor vehicle auction" means
3-24     the offering of a motor vehicle for sale to the highest bidder
3-25     during a transaction that is one of a series of regular periodic
3-26     transactions that occur at a permanent location.
3-27                 (17) [(15)]  "Wholesale motor vehicle dealer" means a
 4-1     dealer who sells motor vehicles only to a person who is:
 4-2                       (A)  the holder of a dealer's general
 4-3     distinguishing number; or
 4-4                       (B)  a foreign dealer authorized by a law of this
 4-5     state or interstate reciprocity agreement to purchase a vehicle in
 4-6     this state without remitting the motor vehicle sales tax.
 4-7           SECTION 4. Section 503.002, Transportation Code, is amended
 4-8     to read as follows:
 4-9           Sec. 503.002.  RULES. The board [commission] may adopt rules
4-10     for the administration of this chapter.
4-11           SECTION 5. Section 503.003, Transportation Code, is amended
4-12     to read as follows:
4-13           Sec. 503.003.  DISPLAY OR SALE OF NONMOTORIZED VEHICLE OR
4-14     TRAILER. This chapter does not prohibit the display or sale of a
4-15     nonmotorized vehicle or trailer at a regularly scheduled vehicle or
4-16     boat show involving [with] multiple dealers [vendors] conducted in
4-17     accordance with board [commission] rules.
4-18           SECTION 6. Section 503.006, Transportation Code, is amended
4-19     to read as follows:
4-20           Sec. 503.006.  NOTICE OF CHANGE OF ADDRESS. A dealer or
4-21     manufacturer who has been issued dealer's, converter's, or
4-22     manufacturer's license plates shall notify the department of a
4-23     change to the dealer's, converter's, or manufacturer's address not
4-24     later than the 10th day after the date the change occurs.
4-25           SECTION 7. Section 503.027(b), Transportation Code, is
4-26     amended to read as follows:
4-27           (b)  If a person is not otherwise prohibited from doing
 5-1     business as a dealer at more than one location in the territory of
 5-2     a municipality, a person may buy, sell, or exchange a vehicle of
 5-3     the type for which the person holds a dealer general distinguishing
 5-4     number from more than one location in the territory of the
 5-5     municipality without obtaining an additional dealer general
 5-6     distinguishing number.  Each location must comply with the
 5-7     requirements prescribed by this chapter and board [commission]
 5-8     rules relating to an established and permanent place of business.
 5-9           SECTION 8. Section 503.034(c), Transportation Code, is
5-10     amended to read as follows:
5-11           (c)  A dealer's general distinguishing number expires on
5-12     March 31 of each year, unless provided otherwise by law or rule of
5-13     the board [department's Motor Vehicle Board].
5-14           SECTION 9.  Sections 503.066(d) and (e), Transportation Code,
5-15     are amended to read as follows:
5-16           (d)  [License plates shall be mailed to qualified applicants
5-17     during February and March.]
5-18           [(e)]  A license plate issued under this section expires on
5-19     March 31 of the year after the year of issuance, unless provided
5-20     otherwise by law or rule of the department's Motor Vehicle Board.
5-21           SECTION 10. Section 503.069(a), Transportation Code, is
5-22     amended to read as follows:
5-23           (a)  A license plate, other than an in-transit license plate,
5-24     or a temporary cardboard tag issued under this chapter shall be
5-25     displayed in accordance with board [commission] rules.
5-26           SECTION 11. This Act takes effect immediately if it receives
5-27     a vote of two-thirds of all the members elected to each house, as
 6-1     provided by Section 39, Article III, Texas Constitution.  If this
 6-2     Act does not receive the vote necessary for immediate effect, this
 6-3     Act takes effect September 1, 2001.