By: Harless Senate Sponsor-Ellis H.B. No. 2651
       (In the Senate - Received from the House May 9, 2007;
May 10, 2007, read first time and referred to Committee on
Transportation and Homeland Security; May 16, 2007, reported
favorably by the following vote:  Yeas 8, Nays 0; May 16, 2007, sent
to printer.)
 
 
A BILL TO BE ENTITLED
AN ACT
relating to the issuance and renewal 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 director [board] of the change within a reasonable time [but not
later than the next annual renewal]. The director [board] shall
prescribe a form for the disclosure of the change.
       SECTION 2.  Section 2301.264, Occupations Code, is amended
by amending Subsection (a) and adding Subsections (e) and (f) to
read as follows:
       (a)  The annual 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].
       (e)  The fee for an amendment to a license under this chapter
is $25.
       (f)  The fee for a duplicate license under this chapter is
$50.
       SECTION 3.  The heading to Section 2301.301, Occupations
Code, is amended to read as follows:
       Sec. 2301.301.  LICENSE TERM AND [ANNUAL] RENEWAL
[REQUIRED].
       SECTION 4.  Section 2301.301, Occupations Code, is amended
by amending Subsections (a), (b), and (c) and adding Subsection (e)
to read as follows:
       (a)  Licenses [A license] issued under this chapter are valid
for the period prescribed by the commission [expires on the first
anniversary of the date the license is issued].
       (b)  The director [board] may issue a license for a term of
less than the period prescribed 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 commission [board] by rule may implement a system
under which licenses expire on various dates during the year. If a
license is issued or renewed for a term that is less than the period
set under Subsection (a) [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)  If the commission prescribes the term of a license under
this chapter for a period other than one year, the commission shall
prorate the applicable annual fee required under this chapter as
necessary to reflect the term of the license.
       SECTION 5.  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 director [board]. The director [board] shall include in the
renewal application a request for disclosure of material changes
described by Section 2301.257.
       SECTION 6.  Sections 503.007(a), (b), and (c),
Transportation Code, are amended to read as follows:
       (a)  The fee for an original general distinguishing number is
$500 for the first year and $200 for each subsequent year for which
the number is valid.
       (b)  The fee for the renewal of a general distinguishing
number is $200 a year.
       (c)  The registration fee for a drive-a-way in-transit
license is $50 a year.
       SECTION 7.  Sections 503.008(a), (b), and (c),
Transportation Code, are amended to read as follows:
       (a)  The fee for a metal dealer's license plate is $20 a year.
       (b)  The fee for a manufacturer's license plate is $40 a
year.
       (c)  The fee for an additional set of drive-a-way in-transit
license plates is $5 a year.
       SECTION 8.  Subchapter A, Chapter 503, Transportation Code,
is amended by adding Sections 503.010, 503.011, and 503.012 to read
as follows:
       Sec. 503.010.  TERM OF GENERAL DISTINGUISHING NUMBER,
LICENSE, OR LICENSE PLATE. Each general distinguishing number,
license, or license plate issued under this chapter is valid for the
period prescribed by the commission.
       Sec. 503.011.  PRORATING FEES.  If the commission prescribes
the term of a general distinguishing number, license, or license
plate under this chapter for a period other than one year, the
commission shall prorate the applicable annual fee required under
this chapter as necessary to reflect the term of the number,
license, or license plate.
       Sec. 503.012.  COLLECTED MONEY. Section 403.095, Government
Code, does not apply to money received by the department and
deposited to the credit of the state highway fund in accordance with
this chapter.
       SECTION 9.  Sections 503.032(a) and (c), Transportation
Code, are amended to read as follows:
       (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 general distinguishing number [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.
       (c)  The applicant must demonstrate that:
             (1)  the applicant intends to remain regularly and
actively engaged in the business specified in the application for a
time equal to at least the term of the general distinguishing number
[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 10.  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 11.  Section 503.0618(c), Transportation Code, is
amended to read as follows:
       (c)  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.  The changes in law made by this Act to the
issuance and renewal of a license under Chapter 2301, Occupations
Code, and a license, general distinguishing number, or license
plate under Chapter 503, Transportation Code, apply only to a
license, general distinguishing number, or license plate that is
originally issued or is renewed on or after the effective date of
this Act.  A license, general distinguishing number, or license
plate that is issued or renewed before that date is governed by the
law in effect on the date of issuance or renewal, and the former law
is continued in effect for that purpose.
       SECTION 14.  This Act takes effect September 1, 2007.
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