This website will be unavailable from Friday, April 26, 2024 at 6:00 p.m. through Monday, April 29, 2024 at 7:00 a.m. due to data center maintenance.
By: Hill H.B. No. 2394
Substitute the following for H.B. No. 2394:
By: Hamric C.S.H.B. No. 2394
A BILL TO BE ENTITLED
AN ACT
relating to the issuance of a temporary tag for use on an
unregistered motor vehicle.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. 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 2. 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 3. The heading to Section 503.062, Transportation
Code, is amended to read as follows:
Sec. 503.062. DEALER'S TEMPORARY [CARDBOARD] TAGS.
SECTION 4. 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's plan shall include the following provisions:
(1) the plan must provide for access to temporary tags
by all dealers, without regard to whether or not a dealer has access
to the internet;
(2) the plan must establish official fees for issuance
of the dealer temporary tag. Fees must be reasonable and not more
than the amount necessary to allow the department to recover all
costs to the department associated with the issuance or contract to
issue dealer temporary tags;
(3) the plan must ensure availability of the dealer
temporary tag during reasonable business hours of the dealer;
(4) if the plan includes electronic components or the
use of the internet, the plan must provide for redundancy of
processes and include an alternate procedure when the system is not
functioning;
(5) the plan must provide for access to appropriate
system information by any federal, state, or local agency; and
(6) if a dealer has a current and valid general
distinguishing number, the dealer's ability to issue temporary tags
cannot be restricted without application of the administrative
contested case process.
SECTION 5. The heading to Section 503.0625, Transportation
Code, is amended to read as follows:
Sec. 503.0625. CONVERTER'S TEMPORARY [CARDBOARD] TAGS.
SECTION 6. 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's
temporary tag or contract for the issuance of a converter's
temporary tag. If the department issues or contracts for issuance
of a converter's temporary tag, the department's plan shall include
the following provisions:
(1) the plan must provide for access to temporary tags
by all converters, without regard to whether or not a converter has
access to the internet;
(2) the plan must establish official fees for issuance
of the converter's temporary tag. Fees must be reasonable and not
more than the amount necessary to allow the department to recover
all costs to the department; associated with the issuance or
contract to issue dealer temporary tags;
(3) the plan must ensure availability of the
converter's temporary tag during reasonable business hours of the
converter;
(4) if the plan includes electronic components or the
use of the internet, the plan must provide for redundancy of
processes and include a procedure by which a temporary tag may be
issued when the system is not functioning;
(5) the plan must provide for access to appropriate
system information by any federal, state, or local agency; and
(6) if a converter has a current and valid converter's
license, the converter's ability to issue temporary tags cannot be
restricted without application of 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 7. The heading to Section 503.063, Transportation
Code, is amended to read as follows:
Sec. 503.063. BUYER'S TEMPORARY [CARDBOARD] TAGS.
SECTION 8. 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's
plan shall include the following provisions: [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.]
(1) the plan must provide for access to temporary tags
by all dealers, without regard to whether or not a dealer has access
to the internet;
(2) the plan must establish official fees for issuance
of the buyer's tag. Fees must be reasonable and not more than the
amount necessary to allow the department to recover all costs to the
department associated with the issuance or contract to issue
buyer's tags;
(3) the plan must ensure availability of the buyer's
tag during reasonable business hours of the dealer;
(4) if the plan includes electronic components or the
use of the internet, the plan must provide for redundancy of
processes and include a procedure by which a temporary tag may be
issued when the system is not functioning;
(5) the plan must provide for access to appropriate
system information by any federal, state, or local agency; and
(6) if a dealer has a current and valid general
distinguishing number, the dealer's ability to issue buyer's tags
cannot be restricted without application of the administrative
contested case process.
SECTION 9. 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 10. 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 11. 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 12. 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 13. The law applicable to the issuance of temporary
tags on January 1, 2005 remains in force and effect until the new
plan becomes functional, at which time it shall be revoked and
become invalid.
SECTION 14. This Act takes effect immediately if it
receives a vote of two-thirds of all the members elected to each
house, as provided by Section 39, Article III, Texas Constitution.
If this Act does not receive the vote necessary for immediate
effect, this Act takes effect September 1, 2005.