By: Harless H.B. No. 2651

A BILL TO BE ENTITLED

AN ACT

relating to the terms of certain motor vehicle dealer licenses, motor vehicle license plates, and general distinguishing numbers.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 2301.257(b), Occupations Code, is amended to read as follows:

(b) If a material change occurs in the information included in an application for a dealer's license, the dealer shall notify the board of the change within a reasonable time [but not later than the next annual renewal]. The board shall prescribe a form for the disclosure of the change.

SECTION 2. Section 2301.264, Occupations Code, is amended to read as follows:

Sec. 2301.264. LICENSE FEES. (a) The annual rates of the fees for a license issued under this chapter are:

(1) $900 for a manufacturer or distributor, plus $20 for each dealer franchised by the manufacturer or distributor;

(2) for a franchised dealer:

(A) $175, if the dealer sold fewer than 201 new motor vehicles during the preceding calendar year;

(B) $275, if the dealer sold more than 200 but fewer than 401 new motor vehicles during the preceding calendar year;

(C) $400, if the dealer sold more than 400 but fewer than 801 new motor vehicles during the preceding calendar year;

(D) $500, if the dealer sold more than 800 but fewer than 1,201 new motor vehicles during the preceding calendar year;

(E) $625, if the dealer sold more than 1,200 but fewer than 1,601 new motor vehicles during the preceding calendar year;

(F) $750, if the dealer sold more than 1,600 new motor vehicles during the preceding calendar year; and

(G) $100 for each location separate from the dealership at which the dealer does not offer motor vehicles for sale but performs warranty service work on vehicles the dealer is franchised and licensed to sell;

(3) [$25 for an amendment to a license;

[(4)] $100 for a representative;

(4) [(5)] $375 for a converter;

(5) [(6)] for a vehicle lessor:

(A) $175, if the lessor leased 200 or fewer motor vehicles during the preceding calendar year;

(B) $275, if the lessor leased more than 200 but fewer than 401 motor vehicles during the preceding calendar year;

(C) $400, if the lessor leased more than 400 but fewer than 801 motor vehicles during the preceding calendar year;

(D) $500, if the lessor leased more than 800 but fewer than 1,201 motor vehicles during the preceding calendar year;

(E) $625, if the lessor leased more than 1,200 but fewer than 1,601 motor vehicles during the preceding calendar year; and

(F) $750, if the lessor leased more than 1,600 motor vehicles during the preceding calendar year; and

(6) [(7)] $375 for a vehicle lease facilitator[; and

(8)$50 for a duplicate license].

(b) The fee for an amendment to a license issued under this chapter is $25. The fee for a duplicate license is $50.

(c) A person who fails to apply for a license required under this chapter or fails to pay a fee within the required time must pay a penalty equal to 50 percent of the amount of the fee for each 30 days after the date the license is required or the fee is due.

(d) [(c)] The board may prorate the fee for a representative's license to allow the representative's license and the license of the manufacturer or distributor who employs the representative to expire on the same day.

(e) [(d)] The board may refund from funds appropriated to the board for that purpose a fee collected under this chapter that is not due or that exceeds the amount due.

SECTION 3. Section 2301.301, Occupations Code, is amended to read as follows:

Sec. 2301.301. LICENSE TERM; [ANNUAL] RENEWAL [REQUIRED]. (a) A license issued under this chapter is valid for the period set by the department [expires on the first anniversary of the date the license is issued].

(b) The department [board] may issue a license for a term of less than the period set under Subsection (a) [one year] to coordinate the expiration dates of licenses held by a person that is required to obtain more than one license to perform activities under this chapter.

(c) The department [board by rule] may implement a system under which licenses expire on various dates during the year.

(d) If a license is issued or renewed for a term that is less than the period set under Subsection (a), the department shall prorate the fee [For a year in which a license expiration date is changed, the fee for the license shall be prorated] so that the license holder pays only that portion of the fee that is allocable to the number of months during which the license is valid. On renewal of the license on the new expiration date, the entire license renewal fee is payable.

(e) [(d)] A license renewal may be administratively granted unless a protest is made to the department [board].

SECTION 4. Section 2301.303, Occupations Code, is amended to read as follows:

Sec. 2301.303. RENEWAL OF DEALER'S LICENSE. A dealer shall renew the dealer's license [annually] on an application prescribed by the board. The board shall include in the renewal application a request for disclosure of material changes described by Section 2301.257.

SECTION 5. Section 503.007, Transportation Code, is amended to read as follows:

Sec. 503.007. FEES FOR GENERAL DISTINGUISHING NUMBER. (a) The rate of the fee for an original general distinguishing number is $500 for the first year and $200 for each subsequent year of validity.

(b) The rate of the fee for the renewal of a general distinguishing number is $200 a year.

(c) The rate of the registration fee for a drive-a-way in-transit license is $50 a year.

(d) Money [A fee] collected for a fee to which [under] this section applies shall be deposited to the credit of the state highway fund.

SECTION 6. Section 503.008, Transportation Code, is amended to read as follows:

Sec. 503.008. FEES FOR LICENSE PLATES. (a) The rate of the fee for a metal dealer's license plate is $20 a year.

(b) The rate of the fee for a manufacturer's license plate is $40 a year.

(c) The rate of the fee for an additional set of drive-a-way in-transit license plates is $5 a year.

(d) Money [A fee] collected for a fee to which [under] this section applies shall be deposited to the credit of the state highway fund.

SECTION 7. Subchapter A, Chapter 503, Transportation Code, is amended by adding Sections 503.010 and 503.011 to read as follows:

Sec. 503.010. TERM OF GENERAL DISTINGUISHING NUMBER, LICENSE, OR LICENSE PLATE. A general distinguishing number, license, or license plate issued under this chapter is valid for the period set by the department.

Sec. 503.011. COLLECTED FUNDS. Money received by the department and deposited to the credit of the state highway fund in accordance with this chapter is exempt from the application of Section 403.095, Government Code.

SECTION 8. Section 503.032, Transportation Code, is amended to read as follows:

Sec. 503.032. ESTABLISHED AND PERMANENT PLACE OF BUSINESS. (a) An applicant for a dealer general distinguishing number or wholesale motor vehicle auction general distinguishing number must demonstrate that the location for which the applicant requests the number is an established and permanent place of business. A location is considered to be an established and permanent place of business if the applicant:

(1) owns the real property on which the business is situated or has a written lease for the property that has a term of not less than the term of the license [one year];

(2) maintains on the location:

(A) a permanent furnished office that is equipped as required by the department for the sale of the vehicles of the type specified in the application; and

(B) a conspicuous sign with letters at least six inches high showing the name of the applicant's business; and

(3) has sufficient space on the location to display at least five vehicles of the type specified in the application.

(b) An applicant for a general distinguishing number as a wholesale motor vehicle dealer is not required to maintain display space in accordance with Subsection (a)(3).

(c) The applicant must demonstrate that:

(1) the applicant intends to remain regularly and actively engaged in the business specified in the application for at least the term of the license [one year] at the location specified in the application; and

(2) the applicant or a bona fide employee of the applicant will be:

(A) at the location to buy, sell, lease, or exchange vehicles; and

(B) available to the public or the department at that location during reasonable and lawful business hours.

SECTION 9. Section 503.035, Transportation Code, is amended to read as follows:

Sec. 503.035. ISSUANCE AND RENEWAL OF DRIVE-A-WAY IN-TRANSIT LICENSE. The department shall issue to an applicant on the filing of the application and the payment of the fee a [an annual] drive-a-way in-transit license and in-transit license plates.

SECTION 10. Section 503.0615(c), Transportation Code, is amended to read as follows:

(c) The annual rate of the fee for personalized prestige dealer's license plates is $40, in addition to any fee otherwise prescribed by this chapter.

SECTION 11. Section 503.0618(c), Transportation Code, is amended to read as follows:

(c) The rate of the fee for a metal converter's license plate is $20 a year.

SECTION 12. Section 503.066(d), Transportation Code, is amended to read as follows:

(d) A metal license plate issued under this chapter expires on the same date as the expiration of the [dealer] license under [to] which it is issued.

SECTION 13. 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, 2007.