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By: Staples S.B. No. 1073
(In the Senate - Filed March 7, 2005; March 21, 2005, read
first time and referred to Committee on Transportation and Homeland
Security; May 6, 2005, reported adversely, with favorable
Committee Substitute by the following vote: Yeas 7, Nays 0;
May 6, 2005, sent to printer.)
COMMITTEE SUBSTITUTE FOR S.B. No. 1073 By: Staples
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 503.062, Transportation Code, is amended
by amending Subsections (a) and (d) and by adding Subsection (d-1)
to read as follows:
(a) Except as provided by this section, a [A] dealer may
issue a temporary cardboard tag for use on 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) Except as provided by Subsection (d-1), the [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) Notwithstanding the terms of this chapter, and to the
extent that the plan complies with the terms of this subsection and
other applicable law, the department may issue a dealer temporary
tag or contract for the issuance of a dealer temporary tag pursuant
to a plan adopted by the department. The department shall include
the following provisions in a plan adopted under this subsection:
(1) the plan must provide for equal access to
temporary tags by all dealers, without regard to whether or not a
dealer has access to electronic equipment or the Internet;
(2) the plan must provide that no dealer or other
person be required to purchase equipment or software in order to
have access to the system;
(3) the plan must provide that a fee, if any, charged
for temporary tags may not exceed $2 per transaction and that the
fee charged for the temporary tag is payable by the purchaser of a
vehicle at the time of sale as a separate contract item;
(4) the plan must provide that temporary tags are
immediately available to a dealer during the dealer's regular
business hours;
(5) if the plan includes electronic components, the
plan must provide for redundancy of processes;
(6) if the plan includes electronic components or the
use of the Internet, it must include a procedure by which a
temporary tag may be issued immediately when the system is not
functioning;
(7) if the plan includes a provision by which the
department is authorized or required to enter into a contract with a
non-department entity for the provision of equipment or services
related to the issuance of temporary tags, the plan must be written
so that the provision of equipment or services is subject to a
bidding process and multiple entities may reasonably qualify to
provide the equipment or services;
(8) the plan must provide for immediate access by law
enforcement officers and dealers to a real-time data base that is
maintained by the department or other appropriate entity and that
contains all appropriate information relating to temporary tags;
and
(9) the plan must provide that access to temporary
tags not be conditioned on compliance with another provision of law
or rule by a dealer whose general distinguishing number is current
and valid.
SECTION 2. Section 503.0625, Transportation Code, is
amended by amending Subsections (b) and (e) and by adding
Subsection (e-1) to read as follows:
(b) Except as provided by this section, a [A] converter may
issue a temporary cardboard tag 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) Except as provided by Subsection (e-1), the [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) Notwithstanding the terms of this chapter, and to the
extent that the plan complies with the terms of this subsection and
other applicable law, the department may issue a converter
temporary tag or contract for the issuance of a converter temporary
tag pursuant to a plan adopted by the department. The department
shall include the following provisions in a plan adopted under this
subsection:
(1) the plan must provide for equal access to
temporary tags by all converters, without regard to whether or not a
converter has access to electronic equipment or the Internet;
(2) the plan must provide that no converter or other
person be required to purchase equipment or software in order to
have access to the system;
(3) the plan must provide that a fee, if any, charged
for temporary tags may not exceed $2 per transaction and that the
fee charged for the temporary tag is payable by the purchaser of a
vehicle at the time of sale as a separate contract item;
(4) the plan must provide that temporary tags are
immediately available to a converter during the converter's regular
business hours;
(5) if the plan includes electronic components, the
plan must provide for redundancy of processes;
(6) if the plan includes electronic components or the
use of the Internet, it must include a procedure by which a
temporary tag may be issued immediately when the system is not
functioning;
(7) if the plan includes a provision by which the
department is authorized or required to enter into a contract with a
non-department entity for the provision of equipment or services
related to the issuance of temporary tags, the plan must be written
so that the provision of the equipment or services is subject to a
bidding process and multiple entities may reasonably qualify to
provide the equipment or services;
(8) the plan must provide for immediate access by law
enforcement officers and converters to a real-time data base that
is maintained by the department or other appropriate entity and
that contains all appropriate information relating to temporary
tags; and
(9) the plan must provide that access to temporary tags
not be subject to compliance with another provision of law or rule
by a converter whose license is current and valid.
SECTION 3. Section 503.063, Transportation Code, is amended
by amending Subsection (e) and adding Subsection (e-1) to read as
follows:
(e) Except as provided by this section, the [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.
(e-1) Notwithstanding the terms of this chapter, and to the
extent that the plan complies with the terms of this subsection and
other applicable law, the department may issue a buyer's temporary
tag or contract for the issuance of a buyer's temporary tag pursuant
to a plan adopted by the department. The department shall include
the following provisions in a plan adopted under this subsection:
(1) the plan must provide for equal access to
temporary tags by all dealers, without regard to whether or not a
dealer has access to electronic equipment or the Internet;
(2) the plan must provide that no dealer or other
person be required to purchase equipment or software in order to
have access to the system;
(3) the plan must provide that a fee, if any, charged
for temporary buyer's tags may not exceed $2 per transaction and
that the fee charged for the temporary tag is payable by the
purchaser of a vehicle at the time of sale as a separate contract
item;
(4) the plan must provide that temporary buyer's tags
are immediately available to a dealer during the dealer's regular
business hours;
(5) if the plan includes electronic components, the
plan must provide for redundancy of processes;
(6) if the plan includes electronic components or the
use of the Internet, it must include a procedure by which a
temporary buyer's tag may be issued by a dealer immediately when the
system is not functioning;
(7) if the plan includes a provision by which the
department is authorized or required to enter into a contract with a
non-department entity for the provision of equipment or services
related to the issuance of temporary buyer's tags, the plan must be
written so that the provision of the equipment or services is
subject to a bidding process and multiple entities may reasonably
qualify to provide the services;
(8) the plan must provide for immediate access by law
enforcement officers and dealers to a real-time data base that is
maintained by the department or other appropriate entity and that
contains all appropriate information relating to temporary tags;
and
(9) the plan must provide that access to temporary
buyer's tags not be subject to compliance with another provision of
law or rule by a dealer whose general distinguishing number is
current and valid.
SECTION 4. (a) Notwithstanding the terms of Sections 1 and
2 of this Act, neither the Texas Department of Transportation nor
the Motor Vehicle Board of the Texas Department of Transportation
may adopt a plan for the issuance of a temporary tag for use on an
unregistered motor vehicle:
(1) until the department has conducted a thorough
study comparing the current system to other potential systems and
eliciting evidence and opinions from all parties interested in the
issue; and
(2) unless a proposed system, from the standpoint of
the public, dealers, converters, and law enforcement interests, is
demonstrably and substantially more efficient and reliable than the
system in place on January 1, 2005.
(b) A plan adopted as provided by this Act may include tags
made of material other than cardboard.
(c) A plan that does not comply with the terms of this
section and other provisions of this Act is invalid. A plan that is
not fully functional by February 15, 2007, is invalid.
(d) Until a plan adopted pursuant to, and in full compliance
with, the terms of this Act is fully functional, the law applicable
to the issuance of temporary tags on January 1, 2005, remains in
force and effect.
SECTION 5. This Act takes effect September 1, 2005.
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