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