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Amend CSHB 2702 by adding the following appropriately
numbered ARTICLE and SECTIONS to the bill and renumbering
subsequent ARTICLES and SECTIONS of the bill accordingly:
ARTICLE ___. TEMPORARY VEHICLE TAGS
SECTION __.01. Section 501.022(d), Transportation Code, is
amended to read as follows:
(d) Subsection (c) does not apply to a motor vehicle
operated on a public highway in this state with a metal dealer's
license plate or a dealer's or buyer's temporary [cardboard] tag
attached to the vehicle as provided by Chapter 503.
SECTION __.02. Sections 503.038(a) and (c), Transportation
Code, are amended to read as follows:
(a) The department may cancel a dealer's general
distinguishing number if the dealer:
(1) falsifies or forges a title document, including an
affidavit making application for a certified copy of a title;
(2) files a false or forged tax document, including a
sales tax affidavit;
(3) fails to take assignment of any basic evidence of
ownership, including a certificate of title or manufacturer's
certificate, for a vehicle the dealer acquires;
(4) fails to assign any basic evidence of ownership,
including a certificate of title or manufacturer's certificate, for
a vehicle the dealer sells;
(5) uses or permits the use of a metal dealer's license
plate or a dealer's temporary [cardboard] tag on a vehicle that the
dealer does not own or control or that is not in stock and offered
for sale;
(6) makes a material misrepresentation in an
application or other information filed with the department;
(7) fails to maintain the qualifications for a general
distinguishing number;
(8) fails to provide to the department within 30 days
after the date of demand by the department satisfactory and
reasonable evidence that the person is regularly and actively
engaged in business as a wholesale or retail dealer;
(9) has been licensed for at least 12 months and has
not assigned at least five vehicles during the previous 12-month
period;
(10) has failed to demonstrate compliance with
Sections 23.12, 23.121, and 23.122, Tax Code;
(11) uses or allows the use of the dealer's general
distinguishing number or the location for which the general
distinguishing number is issued to avoid the requirements of this
chapter;
(12) misuses or allows the misuse of a temporary
[cardboard] tag authorized under this chapter;
(13) refuses to show on a buyer's temporary
[cardboard] tag the date of sale or other reasonable information
required by the department; or
(14) otherwise violates this chapter or a rule adopted
under this chapter.
(c) A person whose general distinguishing number is
canceled under this chapter shall surrender to a representative of
the department each license, license plate, temporary [cardboard]
tag, sticker, and receipt issued under this chapter not later than
the 10th day after the date the general distinguishing number is
canceled. The department shall direct any peace officer to secure
and return to the department any plate, tag, sticker, or receipt of
a person who does not comply with this subsection.
SECTION __.03. Subchapter C, Chapter 503, Transportation
Code, is amended by adding Section 503.0616 to read as follows:
Sec. 503.0616. TEMPORARY TAGS: TOLL ENFORCEMENT CAMERA
READABILITY. A temporary tag issued under this subchapter must be
designed to be readable by a toll enforcement camera system.
SECTION __.04. The heading to Section 503.062,
Transportation Code, is amended to read as follows:
Sec. 503.062. DEALER'S TEMPORARY [CARDBOARD] TAGS.
SECTION __.05. Section 503.062, Transportation Code, is
amended by amending Subsections (a) and (d) and adding Subsection
(d-1) to read as follows:
(a) A dealer may issue a temporary [cardboard] tag, as
authorized by the department, for use on a [an unregistered]
vehicle by the dealer or the dealer's employees only to:
(1) demonstrate or cause to be demonstrated to a
prospective buyer the vehicle for sale purposes only;
(2) convey or cause to be conveyed the vehicle:
(A) from one of the dealer's places of business
in this state to another of the dealer's places of business in this
state;
(B) from the dealer's place of business to a
place the vehicle is to be repaired, reconditioned, or serviced;
(C) from the state line or a location in this
state where the vehicle is unloaded to the dealer's place of
business;
(D) from the dealer's place of business to a
place of business of another dealer;
(E) from the point of purchase by the dealer to
the dealer's place of business; or
(F) to road test the vehicle; or
(3) use the vehicle for or allow its use by a
charitable organization.
(d) The department [may not issue a dealer temporary
cardboard tag or contract for the issuance of a dealer temporary
cardboard tag but] shall prescribe:
(1) the specifications, form, and color of a dealer
temporary [cardboard] tag; and
(2) the period for which a tag may be used for or by a
charitable organization.
(d-1) The department by rule may issue a dealer temporary
tag or contract for the issuance of a dealer temporary tag. If the
department issues or contracts for issuance of a dealer temporary
tag, the department must do so under a plan that:
(1) provides for access to temporary tags by all
dealers, without regard to whether a dealer has access to the
Internet;
(2) establishes official fees for issuance of the
dealer temporary tags in amounts that are reasonable and not more
than necessary to allow the department to recover all costs to the
department associated with the issuance or contract to issue dealer
temporary tags;
(3) ensures availability of the dealer temporary tag
during reasonable business hours of the dealer;
(4) provides for redundancy of processes and includes
an alternate procedure when the system is not functioning, if the
plan includes electronic components or the use of the Internet;
(5) provides for access to appropriate system
information by any federal, state, or local agency, including the
Department of Public Safety and peace officers through the
established law enforcement communication network; and
(6) if a dealer has a current and valid general
distinguishing number, does not restrict the dealer's ability to
issue temporary tags except through the administrative contested
case process.
SECTION __.06. The heading to Section 503.0625,
Transportation Code, is amended to read as follows:
Sec. 503.0625. CONVERTER'S TEMPORARY [CARDBOARD] TAGS.
SECTION __.07. Section 503.0625, Transportation Code, is
amended by amending Subsections (b), (e), and (f) and adding
Subsection (e-1) to read as follows:
(b) A converter may issue a temporary [cardboard] tag, as
authorized by the department, for use on an unregistered vehicle by
the converter or the converter's employees only to:
(1) demonstrate or cause to be demonstrated to a
prospective buyer who is an employee of a franchised motor vehicle
dealer the vehicle; or
(2) convey or cause to be conveyed the vehicle:
(A) from one of the converter's places of
business in this state to another of the converter's places of
business in this state;
(B) from the converter's place of business to a
place the vehicle is to be assembled, repaired, reconditioned,
modified, or serviced;
(C) from the state line or a location in this
state where the vehicle is unloaded to the converter's place of
business;
(D) from the converter's place of business to a
place of business of a franchised motor vehicle dealer; or
(E) to road test the vehicle.
(e) The department [may not issue a converter temporary
cardboard tag or contract for the issuance of a converter temporary
cardboard tag but] shall prescribe the specifications, form, and
color of a converter temporary [cardboard] tag.
(e-1) The department by rule may issue a converter temporary
tag or contract for the issuance of a converter temporary tag. If
the department issues or contracts for issuance of a converter
temporary tag, the department must do so under a plan that:
(1) provides for access to temporary tags by all
converters, without regard to whether a converter has access to the
Internet;
(2) establishes official fees for issuance of the
converter temporary tags in amounts that are reasonable and not
more than necessary to allow the department to recover all costs to
the department associated with the issuance or contract to issue
converter temporary tags;
(3) ensures availability of the converter temporary
tag during reasonable business hours of the converter;
(4) provides for redundancy of processes and includes
an alternate procedure when the system is not functioning, if the
plan includes electronic components or the use of the Internet;
(5) provides for access to appropriate system
information by any federal, state, or local agency, including the
Department of Public Safety and peace officers through the
established law enforcement communication network; and
(6) if a converter has a current and valid general
distinguishing number, does not restrict the converter's ability to
issue temporary tags except through the administrative contested
case process.
(f) A converter or employee of a converter may not use a
temporary [cardboard] tag issued under this section as
authorization to operate a vehicle for the converter's or the
employee's personal use.
SECTION __.08. The heading to Section 503.063,
Transportation Code, is amended to read as follows:
Sec. 503.063. BUYER'S TEMPORARY [CARDBOARD] TAGS.
SECTION __.09. Sections 503.063(a), (b), (c), (e), and (f),
Transportation Code, are amended to read as follows:
(a) At the time of delivery of a vehicle to the vehicle buyer
or lessee, a dealer must issue:
(1) [Except as provided by this section, a dealer may
issue to a person who buys an unregistered vehicle] one temporary
[cardboard] buyer's tag for the vehicle; or
(2) if the dealer has been deputized as a deputy
assessor-collector under Section 502.112, a license plate or set of
plates or a device that, when attached to the vehicle as prescribed
by the department, is the registration insignia for the period for
which it is issued.
(b) The [Except as provided by this section, the] buyer's
tag is valid for the operation of the vehicle until the earlier of:
(1) the date on which the vehicle is registered; or
(2) the 45th [21st] day after the date of purchase.
(c) The dealer[:
[(1) must show in ink on the buyer's tag the actual
date of sale and any other required information; and
[(2)] is responsible for affixing [displaying] the tag
to the vehicle.
(e) The department [may not issue a buyer's tag or contract
for the issuance of a buyer's tag but] shall prescribe the
specifications, color, and form of a buyer's tag.
(f) The department by rule may issue a buyer's tag or
contract for the issuance of a buyer's tag. If the department
issues or contracts for issuance of a buyer's tag, the department
must do so under a plan that:
(1) provides for access to temporary tags by all
dealers, without regard to whether a dealer has access to the
Internet;
(2) establishes official fees for issuance of the
buyer's tags in amounts that are reasonable and not more than
necessary to allow the department to recover all costs to the
department associated with the issuance or contract to issue
buyer's tags;
(3) ensures availability of the buyer's tag during
reasonable business hours of the dealer;
(4) provides for redundancy of processes and includes
an alternate procedure when the system is not functioning, if the
plan includes electronic components or the use of the Internet;
(5) provides for access to appropriate system
information by any federal, state, or local agency, including the
Department of Public Safety and peace officers through the
established law enforcement communication network; and
(6) if a dealer has a current and valid general
distinguishing number, does not restrict the dealer's ability to
issue temporary tags except through the administrative contested
case process. [A dealer may issue an additional temporary
cardboard buyer's tag to a person after the expiration of 21 days
after the issue of a temporary cardboard buyer's tag, and the person
may operate the vehicle for which the tag was issued on the
additional temporary cardboard buyer's tag if the dealer has been
unable to obtain on behalf of the vehicle's owner the necessary
documents to obtain permanent metal license plates because the
documents are in the possession of a lienholder who has not complied
with the terms of Section 501.115(a) of this code. An additional
tag issued under the terms of this subsection is valid for a maximum
of 21 days after the date of issue.]
SECTION __.10. Subchapter C, Chapter 503, Transportation
Code, is amended by adding Section 503.0635 to read as follows:
Sec. 503.0635. FEE FOR TEMPORARY TAG. The fee for a
temporary tag under Section 503.062, 503.0625, or 503.063 is
payable by the purchaser at the time of sale and may be included
with the fees for registration, certificate of title, and license.
SECTION __.11. Section 503.067, Transportation Code, is
amended to read as follows:
Sec. 503.067. UNAUTHORIZED REPRODUCTION OF TEMPORARY
[CARDBOARD] TAGS. (a) A person other than a dealer may not produce
or reproduce a buyer's or dealer's temporary [cardboard] tag.
(b) A person may not operate a vehicle that displays an
unauthorized temporary [cardboard] tag.
SECTION __.12. Sections 503.068(a), (b), and (c),
Transportation Code, are amended to read as follows:
(a) A dealer or an employee of a dealer may not use a
dealer's temporary [cardboard] tag as authorization to operate a
vehicle for the dealer's or the employee's personal use.
(b) A person may not use a metal dealer's license plate or
dealer's temporary [cardboard] tag on:
(1) a service or work vehicle; or
(2) a commercial vehicle that is carrying a load.
(c) For purposes of this section, a boat trailer carrying a
boat is not a commercial vehicle carrying a load. A dealer
complying with this chapter may affix to the rear of a boat trailer
the dealer owns or sells a metal dealer's license plate or temporary
[cardboard] tag issued under Section 503.061, 503.062, or 503.063.
SECTION __.13. Section 503.069(a), Transportation Code, is
amended to read as follows:
(a) A license plate, other than an in-transit license plate,
or a temporary [cardboard] tag issued under this chapter shall be
displayed in accordance with board rules.
SECTION __.14. Section 601.002(12), Transportation Code,
is amended to read as follows:
(12) "Vehicle registration" means:
(A) a registration certificate, registration
receipt, or number plate issued under Chapter 502; or
(B) a dealer's license plate or temporary
[cardboard] tag issued under Chapter 503.
SECTION __.15. The changes in law made by this article take
effect on the date the Texas Department of Transportation issues a
determination that the plan created by those changes is functional.
The law amended by this article as it exists immediately before the
effective date of this article continues in effect until that date.