81R5985 JAM-F

By: Corte H.B. No. 1251

A BILL TO BE ENTITLED

AN ACT

relating to the issuance and use of temporary tags on vehicles.

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. Subchapter C, Chapter 503, Tansportation Code, is amended by adding Section 503.0619 to read as follows:

Sec. 503.0619. TEMPORARY TAGS; MATERIALS. (a) A temporary tag issued under this chapter must be made of a non-permeable material that, in all weather conditions:

(1) resists deterioration and fading for the period that the tag is displayed on the vehicle; and

(2) maintains structural integrity, including graphic and data adhesion, for the period that the tag is displayed on the vehicle.

(b) Temporary tag materials that satisfy the requirements of Subsection (a) include:

(1) plastic or other weather-resistant materials;

(2) label stock that is wrapped around a weather-resistant cardboard base that is at least 0.024 inches thick; or

(3) non-weather-resistant cardstock or cardboard that is at least 0.024 inches thick and is sealed in a two-millimeter polyethylene bag.

SECTION 4. The heading to Section 503.062, Transportation Code, is amended to read as follows:

Sec. 503.062. DEALER'S TEMPORARY [CARDBOARD] TAGS.

SECTION 5. Sections 503.062(a) and (d), Transportation Code, are amended to read as follows:

(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) 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;

(2) procedures for a dealer to generate a vehicle-specific number using the database developed under Section 503.0626 and assign it to each tag;

(3) procedures to clearly display the vehicle-specific number on the tag; and

(4) the period for which a tag may be used for or by a charitable organization.

SECTION 6. The heading to Section 503.0625, Transportation Code, is amended to read as follows:

Sec. 503.0625. CONVERTER'S TEMPORARY [CARDBOARD] TAGS.

SECTION 7. Sections 503.0625(b), (e), and (f), Transportation Code, are amended to read as follows:

(b) 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) The department may not issue a converter temporary [cardboard] tag or contract for the issuance of a converter temporary [cardboard] tag but shall prescribe:

(1) the specifications, form, and color of a converter temporary [cardboard] tag;

(2) procedures for a converter to generate a vehicle-specific number using the database developed under Section 503.0626 and assign it to each tag; and

(3) procedures to clearly display the vehicle-specific number on the tag.

(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 8. Sections 503.0626(a) and (c), Transportation Code, are amended to read as follows:

(a) The department shall develop and maintain a secure, real-time database of information on vehicles to which dealers and converters have affixed temporary [cardboard] tags. The database shall be managed by the vehicle titles and registration division of the department.

(c) Before a dealer's or converter's temporary [cardboard] tag may be displayed on a vehicle, the dealer or converter must enter into the database through the Internet information on the vehicle and information about the dealer or converter as prescribed by the department. The department may not deny access to the database to any dealer who holds a general distinguishing number issued under this chapter or who is licensed under Chapter 2301, Occupations Code, or to any converter licensed under Chapter 2301, Occupations Code.

SECTION 9. The heading to Section 503.063, Transportation Code, is amended to read as follows:

Sec. 503.063. BUYER'S TEMPORARY [CARDBOARD] TAGS.

SECTION 10. Sections 503.063(a), (g), and (h), Transportation Code, are amended to read as follows:

(a) Except as provided by this section, a dealer shall issue to a person who buys an unregistered vehicle one temporary [cardboard] buyer's tag for the vehicle.

(g) Using the same vehicle-specific number generated under Subsection (e)(2)(A), a dealer may issue an additional temporary [cardboard] buyer's tag to a person after the expiration of 20 working 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). An additional tag issued under the terms of this subsection is valid for a maximum of 20 working days after the date of issue.

(h) For each buyer's temporary [cardboard] tag other than an additional temporary [cardboard] buyer's tag under Subsection (g), a dealer shall charge the buyer a registration fee of not more than $5 as prescribed by the department to be sent to the comptroller for deposit to the credit of the state highway fund.

SECTION 11. Section 503.0631(c), Transportation Code, is amended to read as follows:

(c) Except as provided by Subsection (d), before a buyer's temporary [cardboard] tag may be displayed on a vehicle, a dealer must enter into the database through the Internet information about the buyer of the vehicle for which the tag was issued as prescribed by the department and generate a vehicle-specific number for the tag as required by Section 503.063(e). The department may not deny access to the database to any dealer who holds a general distinguishing number issued under this chapter or who is licensed under Chapter 2301, Occupations Code.

SECTION 12. Section 503.0632(a), Transportation Code, is amended to read as follows:

(a) Each dealer shall provide a one-page written notice to a buyer that explains:

(1) the requirements of the law regarding a buyer's temporary [cardboard] tag;

(2) any criminal penalties relating to a buyer's temporary [cardboard] tag;

(3) any action the buyer is required to take concerning a buyer's temporary [cardboard] tag; and

(4) any other information related to the process of purchasing and registering a vehicle as prescribed by the department.

SECTION 13. Section 503.065(a), Transportation Code, is amended to read as follows:

(a) The department may issue or cause to be issued to a person a temporary license plate [made of cardboard or similar material] authorizing the person to operate a new unregistered vehicle on a public highway of this state if the person:

(1) buys the vehicle from a dealer outside this state and intends to drive the vehicle from the dealer's place of business; or

(2) buys the vehicle from a dealer in this state but intends to drive the vehicle from the manufacturer's place of business outside this state.

SECTION 14. Section 503.067, Transportation Code, is amended to read as follows:

Sec. 503.067. UNAUTHORIZED REPRODUCTION, PURCHASE, USE, OR SALE OF TEMPORARY [CARDBOARD] TAGS. (a) A person may not produce or reproduce a temporary [cardboard] tag or an item represented to be a temporary [cardboard] tag for the purpose of distributing the tag to someone other than a dealer or converter.

(b) A person may not operate a vehicle that displays an unauthorized temporary [cardboard] tag.

(c) A person other than a dealer or converter may not purchase a temporary [cardboard] tag.

(d) A person may not sell or distribute a temporary [cardboard] tag or an item represented to be a temporary [cardboard] tag unless the person is:

(1) a dealer issuing the tag in connection with the sale of a vehicle; or

(2) a printer or distributor engaged in the business of selling temporary [cardboard] tags solely for uses authorized under this chapter.

SECTION 15. 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 16. 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 commission [board] rules.

SECTION 17. 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 18. The changes in law made by this Act to Section 503.067, Transportation Code, apply to an offense committed on or after the effective date of this Act. An offense committed before the effective date of this Act is governed by the law in effect when the offense was committed, and the former law is continued in effect for that purpose. For purposes of this section, an offense was committed before the effective date of this Act if any element of the offense was committed before that date.

SECTION 19. This Act takes effect September 1, 2009.