By:  Brown                                             S.B. No. 787
         2001S0533/1                            
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to certain regulations regarding 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.  Subsection (b), Section 501.0234, Transportation
 1-6     Code, is 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)  To the extent of a conflict between this section and
1-25     another law, this section controls.
 2-1           SECTION 3.  Sections 503.001, 503.002, and 503.003,
 2-2     Transportation Code, are amended to read as follows:
 2-3           Sec. 503.001.  DEFINITIONS.  In this chapter:
 2-4                 (1)  "Board" means the Motor Vehicle Board of the Texas
 2-5     Department of Transportation.
 2-6                 (2)  "Commission" means the Texas Transportation
 2-7     Commission.
 2-8                 (3)  "Converter" has the meaning assigned by the Texas
 2-9     Motor Vehicle Commission Code (Article 4413(36), Vernon's Texas
2-10     Civil Statutes).
2-11                 (4) [(2)]  "Dealer" means a person who regularly and
2-12     actively buys, sells, or exchanges vehicles at an established and
2-13     permanent location.  The term includes a franchised motor vehicle
2-14     dealer, an independent motor vehicle dealer, and a wholesale motor
2-15     vehicle dealer.
2-16                 (5) [(3)]  "Department" means the Texas Department of
2-17     Transportation.
2-18                 (6) [(4)]  "Drive-a-way operator" means a person who
2-19     transports and delivers a vehicle in this state from the
2-20     manufacturer or another point of origin to a location in this state
2-21     using the vehicle's own power or using the full-mount method, the
2-22     saddle-mount method, the tow-bar method, or a combination of those
2-23     methods.
2-24                 (7) [(5)]  "Franchise" has the meaning assigned by the
2-25     Texas Motor Vehicle Commission Code (Article 4413(36), Vernon's
2-26     Texas Civil Statutes).
 3-1                 (8) [(6)]  "Franchised motor vehicle dealer" means a
 3-2     person engaged in the business of buying, selling, or exchanging
 3-3     new motor vehicles at an established and permanent place of
 3-4     business under a franchise in effect with a motor vehicle
 3-5     manufacturer or distributor.
 3-6                 (9) [(7)]  "Independent motor vehicle dealer" means a
 3-7     dealer other than a franchised motor vehicle dealer or a wholesale
 3-8     motor vehicle dealer.
 3-9                 (10) [(8)]  "Manufacturer" means a person who
3-10     manufactures, distributes, or assembles new vehicles.
3-11                 (11) [(9)]  "Motorcycle" has the meaning assigned by
3-12     Section 502.001.
3-13                 (12) [(10)]  "Motor vehicle" has the meaning assigned
3-14     by Section 502.001.
3-15                 (13) [(11)]  "Semitrailer" has the meaning assigned by
3-16     Section 502.001.
3-17                 (14) [(12)]  "Trailer" has the meaning assigned by
3-18     Section 502.001.
3-19                 (15) [(13)]  "Vehicle" means a motor vehicle,
3-20     motorcycle, house trailer, trailer, or semitrailer.
3-21                 (16) [(14)]  "Wholesale motor vehicle auction" means
3-22     the offering of a motor vehicle for sale to the highest bidder
3-23     during a transaction that is one of a series of regular periodic
3-24     transactions that occur at a permanent location.
3-25                 (17) [(15)]  "Wholesale motor vehicle dealer" means a
3-26     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           Sec. 503.002.  RULES.  The board [commission] may adopt rules
 4-7     for the administration of this chapter.
 4-8           Sec. 503.003.  DISPLAY OR SALE OF NONMOTORIZED VEHICLE OR
 4-9     TRAILER.  This chapter does not prohibit the display or sale of a
4-10     nonmotorized vehicle or trailer at a regularly scheduled vehicle or
4-11     boat show involving [with] multiple dealers conducted [vendors] in
4-12     accordance with board [commission] rules.
4-13           SECTION 4.  Section 503.006, Transportation Code, is amended
4-14     to read as follows:
4-15           Sec. 503.006.  NOTICE OF CHANGE OF ADDRESS.  A dealer or
4-16     manufacturer who has been issued dealer's, converter's, or
4-17     manufacturer's license plates shall notify the department of a
4-18     change to the dealer's, converter's, or manufacturer's address not
4-19     later than the 10th day after the date the change occurs.
4-20           SECTION 5.  Subsection (b), Section 503.027, Transportation
4-21     Code, is amended to read as follows:
4-22           (b)  If a person is not otherwise prohibited from doing
4-23     business as a dealer at more than one location in the territory of
4-24     a municipality, a person may buy, sell, or exchange a vehicle of
4-25     the type for which the person holds a dealer general distinguishing
4-26     number from more than one location in the territory of the
 5-1     municipality without obtaining an additional dealer general
 5-2     distinguishing number.  Each location must comply with the
 5-3     requirements prescribed by this chapter and board [commission]
 5-4     rules relating to an established and permanent place of business.
 5-5           SECTION 6.  Subsection (g), Section 503.033, Transportation
 5-6     Code, is amended to read as follows:
 5-7           (g)  This section does not apply to a person licensed as a
 5-8     franchised motor vehicle dealer by the board [department's Motor
 5-9     Vehicle Board].
5-10           SECTION 7.  Subsection (c), Section 503.034, Transportation
5-11     Code, is amended to read as follows:
5-12           (c)  A dealer's general distinguishing number expires on
5-13     March 31 of each year, unless provided otherwise by law or rule of
5-14     the board [department's Motor Vehicle Board].
5-15           SECTION 8.  Section 503.066, Transportation Code, is amended
5-16     by deleting Subsection (d) and by amending and redesignating
5-17     existing Subsection (e) as Subsection (d) to read as follows:
5-18           (d)  [License plates shall be mailed to qualified applicants
5-19     during February and March.]
5-20           [(e)]  A license plate issued under this section expires on
5-21     March 31 of the year after the year of issuance, unless provided
5-22     otherwise by law or rule of the board [department's Motor Vehicle
5-23     Board].
5-24           SECTION 9.  Subsection (a), Section 503.069, Transportation
5-25     Code, is amended to read as follows:
5-26           (a)  A license plate, other than an in-transit license plate,
 6-1     or a temporary cardboard tag issued under this chapter shall be
 6-2     displayed in accordance with board [commission] rules.
 6-3           SECTION 10.  This Act takes effect immediately if it receives
 6-4     a vote of two-thirds of all the members elected to each house, as
 6-5     provided by Section 39, Article III, Texas Constitution.  If this
 6-6     Act does not receive the vote necessary for immediate effect, this
 6-7     Act takes effect September 1, 2001.