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A BILL TO BE ENTITLED
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AN ACT
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relating to temporary cardboard tags on vehicles; providing |
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penalties. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 501.021(a), Transportation Code, is |
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amended to read as follows: |
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(a) A motor vehicle certificate of title is an instrument |
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issued by the department that includes: |
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(1) the name and address of the purchaser and seller at |
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the first sale or the transferee and transferor at a subsequent |
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sale; |
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(2) the make of the motor vehicle; |
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(3) the body type of the vehicle; |
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(4) the manufacturer's permanent vehicle |
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identification number of the vehicle or the vehicle's motor number |
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if the vehicle was manufactured before the date that stamping a |
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permanent identification number on a motor vehicle was universally |
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adopted; |
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(5) the serial number for the vehicle; |
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(6) the number on the vehicle's current Texas license |
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plates, if any; |
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(7) a statement: |
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(A) that no lien on the vehicle is recorded; or |
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(B) of the name and address of each lienholder |
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and the date of each lien on the vehicle, listed in the |
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chronological order in which the lien was recorded; |
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(8) a space for the signature of the owner of the |
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vehicle; |
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(9) a statement indicating rights of survivorship |
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under Section 501.031; |
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(10) if the vehicle has an odometer, the odometer |
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reading indicated by the application for the certificate of title; |
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[and] |
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(11) a statement that the purchaser received the |
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notice required under Section 503.0632; and |
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(12) any other information required by the department. |
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SECTION 2. Section 503.005, Transportation Code, is amended |
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by adding Subsections (c) and (d) to read as follows: |
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(c) A dealer who submits information to the database under |
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Section 503.0631 satisfies the requirement for the dealer to notify |
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the department of the sale or transfer of a motor vehicle, trailer, |
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or semitrailer under this section. |
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(d) The notice required under this section is in addition to |
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the application for vehicle registration a dealer is required to |
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submit under Section 501.0234. |
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SECTION 3. Section 503.062(d), Transportation Code, is |
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amended to read as follows: |
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(d) The department may not issue a dealer temporary |
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cardboard tag or contract for the issuance of a dealer temporary |
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cardboard tag but shall prescribe: |
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(1) the specifications, form, and color of a dealer |
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temporary cardboard tag; [and] |
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(2) procedures for a dealer to generate a |
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vehicle-specific number using the database developed under Section |
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503.0626 and assign it to each tag; |
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(3) procedures to clearly display the |
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vehicle-specific number on the tag; and |
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(4) the period for which a tag may be used for or by a |
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charitable organization. |
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SECTION 4. Section 503.0625(e), Transportation Code, is |
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amended to read as follows: |
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(e) The department may not issue a converter temporary |
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cardboard tag or contract for the issuance of a converter temporary |
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cardboard tag but shall prescribe: |
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(1) the specifications, form, and color of a converter |
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temporary cardboard tag; |
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(2) procedures for a converter to generate a |
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vehicle-specific number using the database developed under Section |
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503.0626 and assign it to each tag; and |
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(3) procedures to clearly display the |
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vehicle-specific number on the tag. |
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SECTION 5. Subchapter C, Chapter 503, Transportation Code, |
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is amended by adding Section 503.0626 to read as follows: |
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Sec. 503.0626. DEALER'S AND CONVERTER'S TEMPORARY TAG |
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DATABASE. (a) The department shall develop and maintain a secure, |
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real-time database of information on vehicles to which dealers and |
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converters have affixed temporary cardboard tags. The database |
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shall be managed by the vehicle titles and registration division of |
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the department. |
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(b) The database must allow law enforcement agencies to use |
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the vehicle-specific number assigned to and displayed on the tag as |
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required by Section 503.062(d) or Section 503.0625(e) to obtain |
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information about the dealer or converter that owns the vehicle. |
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(c) A dealer or converter shall determine and enter the time |
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that a dealer's or converter's temporary tag is to expire but may |
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change this expiration date in the database at its discretion. A |
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dealer or converter may enter information into fields prescribed by |
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the department relating to any bailment agreements the dealer or |
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converter has entered into with potential buyers. |
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(d) Before a dealer's or converter's temporary cardboard tag |
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may be displayed on a vehicle, the dealer or converter must enter |
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into the database through the Internet information on the vehicle |
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and information about the dealer or converter as prescribed by the |
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department. The department may not deny access to the database to |
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any dealer who holds a general distinguishing number issued under |
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this chapter or who is licensed under Chapter 2301, Occupations |
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Code, or to any converter licensed under Chapter 2301, Occupations |
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Code. |
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(e) The department shall adopt rules and prescribe |
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procedures as necessary to implement this section. |
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SECTION 6. Section 503.063, Transportation Code, is amended |
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by amending Subsections (a), (e), and (f) and adding Subsections |
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(g) and (h) to read as follows: |
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(a) Except as provided by this section, a dealer shall [may] |
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issue to a person who buys a [an unregistered] vehicle one temporary |
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cardboard buyer's tag for the vehicle. |
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(e) The department may not issue a buyer's tag or contract |
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for the issuance of a buyer's tag but shall prescribe: |
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(1) the specifications, color, and form of a buyer's |
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tag; and |
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(2) procedures for a dealer to: |
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(A) generate a vehicle-specific number using the |
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database developed under Section 503.0631 and assign it to each |
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tag; |
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(B) generate a vehicle-specific number using the |
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database developed under Section 503.0631 for future use for when a |
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dealer is unable to access the Internet at the time of sale; and |
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(C) clearly display the vehicle-specific number |
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on the tag. |
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(f) The department shall ensure that a dealer may generate |
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in advance a sufficient amount of vehicle-specific numbers under |
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Subsection (e)(2)(B) in order to continue selling vehicles for a |
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period of up to two weeks in which a dealer is unable to access the |
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Internet due to an emergency. |
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(g) A dealer may issue an additional temporary cardboard |
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buyer's tag to a person after the expiration of 21 days after the |
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issue of a temporary cardboard buyer's tag, and the person may |
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operate the vehicle for which the tag was issued on the additional |
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temporary cardboard buyer's tag if the dealer has been unable to |
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obtain on behalf of the vehicle's owner the necessary documents to |
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obtain permanent metal license plates because the documents are in |
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the possession of a lienholder who has not complied with the terms |
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of Section 501.115(a) of this code. An additional tag issued under |
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the terms of this subsection is valid for a maximum of 45 [21] days |
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after the date of issue. |
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(h) For each buyer's temporary cardboard tag other than an |
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additional temporary cardboard buyer's tag under Subsection (g), a |
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dealer shall charge the buyer a fee of not more than $5 as |
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prescribed by the department to be sent to the comptroller for |
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deposit to the credit of the temporary tag database account in the |
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general revenue fund. Money deposited to the credit of that account |
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may be appropriated only to the department to administer this |
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section. |
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SECTION 7. Subchapter C, Chapter 503, Transportation Code, |
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is amended by adding Sections 503.0631 and 503.0632 to read as |
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follows: |
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Sec. 503.0631. BUYER'S TEMPORARY TAG DATABASE. (a) The |
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department shall develop and maintain a secure, real-time database |
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of information on persons to whom temporary buyer's tags are issued |
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that may be used by a law enforcement agency in the same manner that |
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the agency uses vehicle registration information. The database |
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shall be managed by the vehicle titles and registration division of |
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the department. |
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(b) The database must allow law enforcement agencies to use |
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a vehicle-specific number assigned to and displayed on the tag as |
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required by Section 503.063(e)(2) to obtain information about the |
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person to whom the tag was issued. |
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(c) Except as provided by Subsection (d), before a buyer's |
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temporary cardboard tag may be displayed on a vehicle, a dealer must |
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enter into the database through the Internet information about the |
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buyer of the vehicle for which the tag was issued as prescribed by |
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the department and generate a vehicle-specific number for the tag |
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as required by Section 503.063(e). The department may not deny |
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access to the database to any dealer who holds a general |
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distinguishing number issued under this chapter or who is licensed |
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under Chapter 2301, Occupations Code. |
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(d) A dealer shall obtain 24-hour Internet access at its |
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place of business, but if the dealer is unable to access the |
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Internet at the time of the sale of a vehicle, the dealer shall |
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complete and sign a form, as prescribed by the department, that |
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states the dealer has Internet access, but was unable to access the |
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Internet at the time of sale. The buyer shall keep the original |
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copy of the form in the vehicle until the vehicle is registered to |
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the buyer. Not later than five hours after the time of sale, the |
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dealer shall submit the information required under Subsection (c). |
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(e) The department shall adopt rules and prescribe |
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procedures as necessary to implement this section. |
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Sec. 503.0632. NOTICE TO BUYER. (a) Each dealer shall |
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provide a one-page written notice to a buyer that explains: |
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(1) the requirements of the law regarding a buyer's |
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temporary cardboard tag; |
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(2) any criminal penalties relating to a buyer's |
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temporary cardboard tag; |
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(3) any action the buyer is required to take |
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concerning a buyer's temporary cardboard tag; and |
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(4) any other information related to the process of |
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purchasing and registering a vehicle as prescribed by the |
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department. |
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(b) The dealer shall require the buyer to sign a statement |
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indicating the buyer received the notice under this section. |
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(c) The department shall adopt rules to: |
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(1) prescribe the language of the written notice and |
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statement used under this section; and |
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(2) establish a procedure to determine dealer |
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compliance with this section. |
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SECTION 8. The heading to Section 503.067, Transportation |
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Code, is amended to read as follows: |
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Sec. 503.067. UNAUTHORIZED REPRODUCTION, PURCHASE, USE, OR |
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SALE OF TEMPORARY CARDBOARD TAGS. |
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SECTION 9. Section 503.067, Transportation Code, is amended |
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by amending Subsection (a) and adding Subsections (c) and (d) to |
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read as follows: |
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(a) A person [other than a dealer] may not produce or |
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reproduce a [buyer's or dealer's] temporary cardboard tag or an item |
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represented to be a temporary cardboard tag for the purpose of |
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distributing the tag to someone other than a dealer or converter. |
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(c) A person other than a dealer or converter may not |
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purchase a temporary cardboard tag. |
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(d) A person may not sell or distribute a temporary |
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cardboard tag or an item represented to be a temporary cardboard tag |
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unless the person is: |
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(1) a dealer issuing the tag in connection with the |
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sale of a vehicle; or |
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(2) a printer or distributor engaged in the business |
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of selling temporary cardboard tags solely for uses authorized |
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under this chapter. |
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SECTION 10. Section 503.094, Transportation Code, is |
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amended by amending Subsection (b) and adding Subsection (d) to |
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read as follows: |
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(b) Except as otherwise provided by this section, an [An] |
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offense under this section is a misdemeanor punishable by a fine of |
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not less than $50 or more than $5,000. |
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(d) An offense involving a violation of: |
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(1) Section 503.067(b) or (c) is a Class C |
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misdemeanor; |
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(2) Section 503.067(d) is a Class A misdemeanor; |
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(3) Section 503.067(a) is a state jail felony; and |
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(4) Section 503.067(b), (c), or (d) is a state jail |
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felony if the person who committed the offense criminally conspired |
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to engage in organized criminal activity. |
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SECTION 11. Section 2301.651(a), Occupations Code, is |
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amended to read as follows: |
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(a) The board may deny an application for a license, revoke |
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or suspend a license, place on probation a person whose license has |
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been suspended, or reprimand a license holder if the applicant or |
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license holder: |
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(1) is unfit under standards described in this chapter |
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or board rules; |
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(2) makes a material misrepresentation in any |
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application or other information filed under this chapter or board |
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rules; |
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(3) violates this chapter or a board rule or order; |
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(4) violates any law relating to the sale, |
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distribution, financing, or insuring of motor vehicles; |
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(5) fails to maintain the qualifications for a |
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license; |
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(6) wilfully defrauds a purchaser; [or] |
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(7) fails to fulfill a written agreement with a retail |
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purchaser of a motor vehicle; or |
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(8) violates the requirements of Section 503.0631, |
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Transportation Code. |
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SECTION 12. (a) As soon as practicable after the effective |
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date of this Act, the Texas Department of Transportation shall |
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adopt rules to implement Sections 503.0626 and 503.0631, |
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Transportation Code, as added by this Act. |
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(b) The Texas Department of Transportation may not enforce |
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Section 503.0626 or 503.0631, Transportation Code, as added by this |
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Act, until the rules adopted under Subsection (a) of this section |
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take effect and the databases are operational and available to |
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dealers with a general distinguishing number or a converter's |
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license issued under Chapter 2301, Occupations Code. |
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SECTION 13. The changes in law made by this Act to Sections |
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503.067 and 503.094, Transportation Code, apply to an offense |
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committed on or after the effective date of this Act. An offense |
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committed before the effective date of this Act is governed by the |
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law in effect when the offense was committed, and the former law is |
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continued in effect for that purpose. For purposes of this section, |
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an offense was committed before the effective date of this Act if |
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any element of the offense was committed before that date. |
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SECTION 14. This Act takes effect September 1, 2007. |