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