By: Pickett	H.B. No. 2357

	A BILL TO BE ENTITLED
	AN ACT
	relating to motor vehicles; providing penalties.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Section 501.002, Transportation Code, is amended
	to read as follows:
	Sec. 501.002.  DEFINITIONS. In this chapter:
	(1)  "Certificate of title" means a printed record of
	title [an instrument] issued under Section 501.021.
	(2)  "Credit card" means a card, plate, or similar
	device used to make a purchase or to borrow money.
	(3)  "Dealer" has the meaning assigned by Section
	503.001 [means a person who purchases motor vehicles for sale at
	retail].
	(4)  "Debit card" means a card that enables the holder
	to withdraw money or to have the cost of a purchase charged directly
	to the holder's bank account.
	(5) [(3)]  "Department" means the Texas Department of
	Motor Vehicles.
	(6) [(4)]  "Distributor" has the meaning assigned by
	Section 2301.002, Occupations Code [means a person engaged in the
	business of selling to a dealer motor vehicles purchased from a
	manufacturer].
	(7)  "Electric bicycle" has the meaning assigned by
	Section 541.201.
	(8) [(5)]  "First sale" means:
	(A)  the bargain, sale, transfer, or delivery of a
	motor vehicle that has not been previously registered or titled
	[licensed], with intent to pass an interest in the motor vehicle,
	other than a lien, regardless of where the bargain, sale, transfer,
	or delivery occurred; and
	(B)  the registration or titling [licensing] of
	that vehicle.
	(9) [(6)]  "House trailer" means a trailer designed for
	human habitation. The term does not include manufactured housing.
	(10) [(7)]  "Importer" means a person, other than a
	manufacturer, that brings a used motor vehicle into this state for
	sale in this state.
	(11) [(8)]  "Importer's certificate" means a
	certificate for a used motor vehicle brought into this state for
	sale in this state.
	(12) [(9)]  "Lien" means:
	(A)  a lien provided for by the constitution or
	statute in a motor vehicle;
	(B)  a security interest, as defined by Section
	1.201, Business & Commerce Code, in a motor vehicle, other than an
	absolute title, created by any written security agreement, as
	defined by Section 9.102, Business & Commerce Code, including a
	lease, conditional sales contract, deed of trust, chattel mortgage,
	trust receipt, or reservation of title; or
	(C)  a child support lien under Chapter 157,
	Family Code.
	(13) [(10)]  "Manufactured housing" has the meaning
	assigned by Chapter 1201, Occupations Code.
	(14) [(11)]  "Manufacturer" has the meaning assigned
	by Section 503.001 [means a person regularly engaged in the
	business of manufacturing or assembling new motor vehicles].
	(15) [(12)]  "Manufacturer's permanent vehicle
	identification number" means the number affixed by the manufacturer
	to a motor vehicle in a manner and place easily accessible for
	physical examination and die-stamped or otherwise permanently
	affixed on one or more removable parts of the vehicle.
	(16) [(13)]  "Motorcycle" has the meaning assigned by
	Section 521.001 or 541.201, as applicable [means a motor vehicle,
	other than a tractor, designed to propel itself with not more than
	three wheels in contact with the ground].
	(17) [(14)]  "Motor vehicle" means:
	(A)  any motor driven or propelled vehicle
	required to be registered under the laws of this state;
	(B)  a trailer or semitrailer, other than
	manufactured housing, that has a gross vehicle weight that exceeds
	4,000 pounds;
	(C)  a travel [house] trailer;
	(D)  an all-terrain vehicle or a recreational
	off-highway vehicle, as those terms are defined by Section 502.001,
	designed by the manufacturer for off-highway use that is not
	required to be registered under the laws of this state; or
	(E)  a motorcycle, motor-driven cycle, or moped
	that is not required to be registered under the laws of this state[,
	other than a motorcycle, motor-driven cycle, or moped designed for
	and used exclusively on a golf course].
	(18) [(15)]  "New motor vehicle" has the meaning
	assigned by Section 2301.002, Occupations Code [means a motor
	vehicle that has not been the subject of a first sale].
	(19) [(16)]  "Owner" means [includes] a person, other
	than a manufacturer, importer, distributor, or dealer, claiming
	title to or having a right to operate under a lien a motor vehicle
	that has been subject to a first sale.
	(20)  "Purchaser" means a person or entity to which a
	motor vehicle is donated, given, sold, or otherwise transferred.
	(21)  "Record of title" means an electronic record of
	motor vehicle ownership in the department's motor vehicle database
	that is created under Subchapter I.
	(22)  "Seller" means a person or entity that donates,
	gives, sells, or otherwise transfers ownership of a motor vehicle.
	(23) [(17)]  "Semitrailer" means a vehicle that is
	designed or used with a motor vehicle so that part of the weight of
	the vehicle and its load rests on or is carried by another vehicle.
	(24) [(18)]  "Serial number" means a vehicle
	identification number that is affixed to a part of a motor vehicle
	and that is:
	(A)  the manufacturer's permanent vehicle
	identification number;
	(B)  a derivative number of the manufacturer's
	permanent vehicle identification number;
	(C)  the motor number; or
	(D)  the vehicle identification number assigned
	by the department.
	(25) [(19)]  "Steal" has the meaning assigned by
	Section 31.01, Penal Code.
	(26) [(20)]  "Subsequent sale" means:
	(A)  the bargain, sale, transfer, or delivery of a
	used motor vehicle [that has been previously registered or licensed
	in this state or elsewhere], with intent to pass an interest in the
	vehicle, other than a lien[, regardless of where the bargain, sale,
	transfer, or delivery occurs]; and
	(B)  the registration of the vehicle if
	registration is required under the laws of this state.
	(27)  "Title" means a certificate or record of title
	that is issued under Section 501.021.
	(28) [(21)]  "Title receipt" means a document [an
	instrument] issued under Section 501.024.
	(29) [(22)]  "Trailer" means a vehicle that:
	(A)  is designed or used to carry a load wholly on
	the trailer's own structure; and
	(B)  is drawn or designed to be drawn by a motor
	vehicle.
	(30)  "Travel trailer" means a house trailer-type
	vehicle or a camper trailer:
	(A)  that is a recreational vehicle defined under
	24 C.F.R. Section 3282.8(g); or
	(B)  that:
	(i)  is less than eight feet in width or 40
	feet in length, exclusive of any hitch installed on the vehicle;
	(ii)  is designed primarily for use as
	temporary living quarters in connection with recreational,
	camping, travel, or seasonal use;
	(iii)  is not used as a permanent dwelling;
	and
	(iv)  is not a utility trailer, enclosed
	trailer, or other trailer that does not have human habitation as its
	primary function.
	(31) [(23)]  "Used motor vehicle" means a motor vehicle
	that has been the subject of a first sale.
	(32)  "Vehicle identification number" means:
	(A)  the manufacturer's permanent vehicle
	identification number affixed by the manufacturer to the motor
	vehicle that is easily accessible for physical examination and
	permanently affixed on one or more removable parts of the vehicle;
	or
	(B)  a serial number affixed to a part of a motor
	vehicle that is:
	(i)  a derivative number of the
	manufacturer's permanent vehicle identification number;
	(ii)  the motor number; or
	(iii)  a vehicle identification number
	assigned by the department.
	SECTION 2.  The heading to Section 501.003, Transportation
	Code, is amended to read as follows:
	Sec. 501.003.  PURPOSE [CONSTRUCTION].
	SECTION 3.  Section 501.004(a), Transportation Code, is
	amended to read as follows:
	(a)  Except as provided by this section, this [This] chapter
	applies to all motor vehicles, including a motor vehicle owned by
	the state or a political subdivision of the state.
	SECTION 4.  Section 501.131, Transportation Code, is
	transferred to Subchapter A, Chapter 501, Transportation Code,
	redesignated as Section 501.0041, Transportation Code, and amended
	to read as follows:
	Sec. 501.0041  [501.131].  RULES; FORMS. (a)  The
	department may adopt rules to administer this chapter.
	(b)  The department shall post forms on the Internet and[:
	[(1)     in addition to the forms required by this
	chapter, prescribe forms for a title receipt, manufacturer's
	certificate, and importer's certificate, and other forms the
	department determines necessary; and
	[(2)]  provide each county assessor-collector with a
	sufficient supply of any necessary [the] forms on request.
	SECTION 5.  Section 501.159, Transportation Code, is
	transferred to Subchapter A, Chapter 501, Transportation Code,
	redesignated as Section 501.006, Transportation Code, and amended
	to read as follows:
	Sec. 501.006  [501.159].  ALIAS [CERTIFICATE OF] TITLE. On
	receipt of a verified [written] request approved by the executive
	administrator of a law enforcement agency, the department may issue
	a [certificate of] title in the form requested by the executive
	administrator for a vehicle in an alias for the law enforcement
	agency's use in a covert criminal investigation.
	SECTION 6.  Section 501.021, Transportation Code, is amended
	to read as follows:
	Sec. 501.021.  [CERTIFICATE OF] TITLE FOR MOTOR VEHICLE.
	(a)  A motor vehicle [certificate of] title [is an instrument]
	issued by the department must include [that includes]:
	(1)  the name and address of each [the] purchaser and
	seller at the first sale or [the transferee and transferor at] a
	subsequent sale;
	(2)  the make of the motor vehicle;
	(3)  the body type of the vehicle;
	(4)  the manufacturer's permanent vehicle
	identification number of the vehicle or the vehicle's motor number
	if the vehicle was manufactured before the date that stamping a
	permanent identification number on a motor vehicle was universally
	adopted;
	(5)  the serial number for the vehicle;
	(6)  the [number on the vehicle's current Texas license
	plates, if any;
	[(7)  a statement:
	[(A)  that no lien on the vehicle is recorded; or
	[(B)  of the] name and address of each lienholder
	and the date of each lien on the vehicle, listed in the
	chronological order in which the lien was recorded;
	(7)  [(8)     a space for the signature of the owner of the
	vehicle;
	[(9)]  a statement indicating rights of survivorship
	under Section 501.031;
	(8) [(10)]  if the vehicle has an odometer, the
	odometer reading at the time of [indicated by the] application for
	the [certificate of] title; and
	(9) [(11)]  any other information required by the
	department.
	(b)  A printed certificate of title must bear the following
	statement on its face:
	"UNLESS OTHERWISE AUTHORIZED BY LAW, IT IS A VIOLATION OF
	STATE LAW TO SIGN THE NAME OF ANOTHER PERSON ON A CERTIFICATE OF
	TITLE OR OTHERWISE GIVE FALSE INFORMATION ON A CERTIFICATE OF
	TITLE."
	(c)  A [certificate of] title for a motor vehicle that has
	been the subject of an ordered repurchase or replacement under
	Chapter 2301, Occupations Code, must contain on its face a notice
	sufficient to inform a purchaser that the motor vehicle has been the
	subject of an ordered repurchase or replacement.
	SECTION 7.  The heading to Section 501.022, Transportation
	Code, is amended to read as follows:
	Sec. 501.022.  MOTOR VEHICLE [CERTIFICATE OF] TITLE
	REQUIRED.
	SECTION 8.  Sections 501.022(a), (b), and (c),
	Transportation Code, are amended to read as follows:
	(a)  The owner of a motor vehicle registered in this state:
	(1)  except as provided by Section 501.029, shall apply
	for title to the vehicle; and
	(2)  may not operate or permit the operation of the
	vehicle on a public highway until the owner obtains:
	(A)  [a certificate of] title and [for the vehicle
	or until the owner obtains] registration for the vehicle; or
	(B)  [if] a receipt evidencing title for
	registration purposes only [to the vehicle is issued] under Section
	501.029 [501.029(b)].
	(b)  A person may not operate a motor vehicle registered in
	this state on a public highway if the person knows or has reason to
	believe that the owner has not obtained a [certificate of] title for
	the vehicle.
	(c)  The owner of a motor vehicle that is required to be
	titled and registered in this state must obtain [apply for] a
	[certificate of] title to [of] the vehicle before selling or
	disposing of the vehicle.
	SECTION 9.  Subchapter B, Chapter 501, Transportation Code,
	is amended by adding Section 501.0225 to read as follows:
	Sec. 501.0225.  CERTIFICATE OF TITLE REQUIRED FOR OFF-ROAD
	VEHICLE.  A person who purchases, imports, or otherwise acquires an
	off-road vehicle, as defined by Section 152.001, Tax Code, that is
	not required to be registered under Chapter 502 may not operate or
	permit the operation of the vehicle in this state, or sell or
	dispose of the vehicle in this state, until the person obtains a
	certificate of title for the vehicle.  This section does not apply
	to:
	(1)  an off-road vehicle that is exempt from motor
	vehicle sales and use taxation under Section 152.091, Tax Code; or
	(2)  an off-road vehicle acquired and sold or disposed
	of by a lienholder exercising a statutory or contractual lien right
	with regard to the vehicle, except that this section does apply to
	the purchaser of that vehicle.
	SECTION 10.  The heading to Section 501.023, Transportation
	Code, is amended to read as follows:
	Sec. 501.023.  APPLICATION FOR [CERTIFICATE OF] TITLE.
	SECTION 11.  Section 501.023, Transportation Code, is
	amended by amending Subsections (a), (b), and (c) and adding
	Subsection (e) to read as follows:
	(a)  The owner of a motor vehicle must present identification
	and apply for a [certificate of] title as prescribed by the
	department, unless otherwise exempted by law. To obtain a title,
	the owner must apply:
	(1)  to the county assessor-collector in the county in
	which:
	(A)  the owner is domiciled; or
	(B)  the motor vehicle is purchased or encumbered;
	or [and]
	(2)  if the county in which the owner resides has been
	declared by the governor as a disaster area, to the county
	assessor-collector in one of the closest unaffected counties to a
	county that asks for assistance and:
	(A)  continues to be declared by the governor as a
	disaster area because the county has been rendered inoperable by
	the disaster; and
	(B)  is inoperable for a protracted period of time
	[on a form prescribed by the department].
	(b)  The assessor-collector shall send the application to
	the department or enter it into the department's titling system
	within 72 [not later than 24] hours after receipt of [receiving] the
	application.
	(c)  The owner or a lessee of a commercial motor vehicle
	operating under the International Registration Plan or other
	agreement described by Section 502.091 [502.054] that is applying
	for a [certificate of] title for purposes of registration only may
	apply [must be made] directly to the department. Notwithstanding
	Section 501.138(a), an applicant for registration under this
	subsection shall pay [the department] the fee imposed by that
	section. The [department shall send the] fee shall be distributed
	to the appropriate county assessor-collector [for distribution] in
	the manner provided by Section 501.138.
	(e)  Applications submitted to the department electronically
	must request the purchaser's choice of county as stated in
	Subsection (a) as the recipient of all taxes, fees, and other
	revenue collected as a result of the transaction.
	SECTION 12.  Sections 501.0234(a), (b), (d), and (e),
	Transportation Code, are amended to read as follows:
	(a)  A person who sells at the first or a subsequent sale a
	motor vehicle and who holds a general distinguishing number issued
	under Chapter 503 of this code or Chapter 2301, Occupations Code,
	shall:
	(1)  except as provided by this section, in the time and
	manner provided by law, apply, in the name of the purchaser of the
	vehicle, for the registration of the vehicle, if the vehicle is to
	be registered, and a [certificate of] title for the vehicle and file
	with the appropriate designated agent each document necessary to
	transfer title to or register the vehicle; and at the same time
	(2)  remit any required motor vehicle sales tax.
	(b)  This section does not apply to a motor vehicle:
	(1)  that has been declared a total loss by an insurance
	company in the settlement or adjustment of a claim;
	(2)  for which the [certificate of] title has been
	surrendered in exchange for:
	(A)  a salvage vehicle title or salvage record of
	title issued under this chapter;
	(B)  a nonrepairable vehicle title or
	nonrepairable vehicle record of title issued under this chapter or
	Subchapter D, Chapter 683; or
	(C)  [a certificate of authority issued under
	Subchapter D, Chapter 683; or
	[(D)]  an ownership document issued by another
	state that is comparable to a document described by Paragraph (A) or
	(B) [Paragraphs (A)-(C)];
	(3)  with a gross weight in excess of 11,000 pounds; or
	(4)  purchased by a commercial fleet buyer who is a
	full-service deputy under Section 520.008 [502.114] and who
	utilizes the dealer title application process developed to provide
	a method to submit title transactions to the county in which the
	commercial fleet buyer is a full-service deputy.
	(d)  A seller who applies for the registration or a
	[certificate of] title for a motor vehicle under Subsection (a)(1)
	shall apply in the county as directed by the purchaser from the
	counties set forth in Section 501.023 [of this code].
	(e)  The department shall develop [promulgate] a form or
	electronic process in [on] which the purchaser of a motor vehicle
	shall designate the purchaser's choice as set out in Section
	501.023 as the recipient of all taxes, fees, and other revenue
	collected as a result of the transaction, which the tax
	assessor-collector is authorized by law to retain.  A seller shall
	make that form or electronic process available to the purchaser of a
	vehicle at the time of purchase.
	SECTION 13.  Subchapter B, Chapter 501, Transportation Code,
	is amended by adding Section 501.0235 to read as follows:
	Sec. 501.0235.  PERSONAL IDENTIFICATION INFORMATION FOR
	OBTAINING TITLE. (a) The department may require an applicant for a
	title to provide current personal identification as determined by
	department rule.
	(b)  Any identification number required by the department
	under this section may be entered in the department's electronic
	titling system but may not be printed on the title.
	SECTION 14.  Section 501.024, Transportation Code, is
	amended to read as follows:
	Sec. 501.024.  TITLE RECEIPT. (a)  A county
	assessor-collector who receives an application for a [certificate
	of] title shall issue a title receipt to the applicant containing
	the information concerning the motor vehicle required for issuance
	of a title under Section 501.021 or Subchapter I [,] after:
	(1)  the requirements of this chapter are met,
	including the payment of the fees required under Section 501.138;
	and
	(2)  the [, issue a title receipt on which is noted]
	information is entered into the department's titling system
	[concerning the motor vehicle required for the certificate of title
	under Section 501.021, including a statement of the existence of
	each lien as disclosed on the application or a statement that no
	lien is disclosed].
	(b)  If a lien is not disclosed on the application for a
	[certificate of] title, the assessor-collector shall issue a [mark
	the] title receipt ["original" and deliver it] to the applicant.
	(c)  If a lien is disclosed on the application for a
	[certificate of] title, the assessor-collector shall issue a
	duplicate title receipt to the lienholder [receipts. The
	assessor-collector shall:
	[(1)     mark one receipt "original" and mail or deliver
	it to the first lienholder disclosed on the application; and
	[(2)     mark the second receipt "duplicate original" and
	mail or deliver it to the address of the applicant provided on the
	application].
	(d)  A title receipt with registration or permit authorizes
	the operation of the motor vehicle on a public highway in this state
	for 10 days or until the [certificate of] title is issued, whichever
	period is shorter.
	SECTION 15.  Section 501.025, Transportation Code, is
	amended to read as follows:
	Sec. 501.025.  [TITLE RECEIPT REQUIRED ON FIRST SALE;]
	MANUFACTURER'S CERTIFICATE REQUIRED ON FIRST SALE. A county
	assessor-collector may not issue a title receipt on the first sale
	of a motor vehicle unless the applicant for the [certificate of]
	title provides [to the assessor-collector] the application for a
	[certificate of] title and a manufacturer's certificate in [, on] a
	manner [form] prescribed by the department [, that:
	[(1)     is assigned to the applicant by the manufacturer,
	distributor, or dealer shown on the manufacturer's certificate as
	the last transferee; and
	[(2)     shows the transfer of the vehicle from its
	manufacturer to the purchaser, whether a distributor, dealer, or
	owner, and each subsequent transfer from distributor to dealer,
	dealer to dealer, and dealer to applicant].
	SECTION 16.  Section 501.027, Transportation Code, is
	amended to read as follows:
	Sec. 501.027.  ISSUANCE OF [CERTIFICATE OF] TITLE. (a)  On
	the day that a county assessor-collector issues a title receipt, a
	copy of the title receipt and all evidence of title [the
	assessor-collector] shall be submitted [mail] to the department in
	the period specified in Section 501.023(b) [:
	[(1)  a copy of the receipt; and
	[(2)     the evidence of title delivered to the
	assessor-collector by the applicant].
	(b)  Not later than the fifth day after the date the
	department receives an application for a [certificate of] title and
	the department determines the requirements of this chapter are met:
	(1)  the [, the department shall issue the certificate
	of] title shall be issued to the first lienholder or to the
	applicant if [. If] a lien is not disclosed on the application; or
	(2)  [,] the department shall notify [send the
	certificate by first class mail to] the applicant that the
	department's titling system has established a record of title of
	the motor vehicle in the applicant's name if a lien is not disclosed
	[at the address provided on the application]. If a lien is
	disclosed on the application, the department shall notify [send]
	the [certificate by first class mail to the first] lienholder that
	the lien has been recorded [as disclosed on the application].
	SECTION 17.  Section 501.0275, Transportation Code, is
	amended to read as follows:
	Sec. 501.0275.  ISSUANCE OF TITLE FOR UNREGISTERED VEHICLE.
	(a)  The department shall issue a [certificate of] title for a
	motor vehicle that complies with the other requirements [for
	issuance of a certificate of title] under this chapter unless
	[except that]:
	(1)  the vehicle is not registered for a reason other
	than a reason provided by Section 501.051(a)(6) [501.051(6)]; and
	(2)  the applicant does not provide evidence of
	financial responsibility that complies with Section 502.046
	[502.153].
	(b)  On application for a [certificate of] title under this
	section, the applicant must surrender any license plates issued for
	the motor vehicle if the plates are not being transferred to another
	vehicle and any registration insignia for validation of those
	plates to the department.
	SECTION 18.  Section 501.0276, Transportation Code, is
	amended to read as follows:
	Sec. 501.0276.  DENIAL OF TITLE RECEIPT, [OR CERTIFICATE OF]
	TITLE, OR RECORD OF TITLE FOR FAILURE TO PROVIDE PROOF OF EMISSIONS
	TESTING. A county assessor-collector may not issue a title receipt
	and the department may not issue a certificate of title for a
	vehicle subject to Section 548.3011 unless proof that the vehicle
	has passed a vehicle emissions test as required by that section, in
	a manner [form] authorized by that section, is presented to the
	county assessor-collector with the application for a [certificate
	of] title.
	SECTION 19.  Section 501.029, Transportation Code, is
	amended to read as follows:
	Sec. 501.029.  ACCEPTABLE PROOF OF OWNERSHIP [USE OF
	REGISTRATION RECEIPT OR TITLE RECEIPT TO EVIDENCE TITLE]. [(a)     A
	person may use a registration receipt issued under Chapter 502 or a
	title receipt to evidence title to a motor vehicle and not to
	transfer an interest in or establish a lien on the vehicle.
	[(b)]  The board [department] by rule may provide a list of
	the documents required for the issuance of a receipt that evidences
	title to a motor vehicle for registration purposes only. The fee
	for application for the receipt is the fee applicable to
	application for a [certificate of] title.  The title receipt may not
	be used to transfer an interest in or establish a lien on the
	vehicle.
	SECTION 20.  Sections 501.030(b), (d), (e), (f), and (g),
	Transportation Code, are amended to read as follows:
	(b)  Before a motor vehicle that was not manufactured for
	sale or distribution in the United States may be titled in this
	state, the applicant must:
	(1)  provide to the assessor-collector:
	(A)  a bond release letter, with all attachments,
	issued by the United States Department of Transportation
	acknowledging:
	(i)  receipt of a statement of compliance
	submitted by the importer of the vehicle; and
	(ii)  that the statement meets the safety
	requirements of 19 C.F.R. Section 12.80(e);
	(B)  a bond release letter, with all attachments,
	issued by the United States Environmental Protection Agency stating
	that the vehicle has been tested and shown to conform to federal
	emission requirements; and
	(C)  a receipt or certificate issued by the United
	States Department of the Treasury showing that all gas guzzler
	taxes due on the vehicle under 26 U.S.C. Section 4064(a) have been
	paid; or
	(2)  provide to the assessor-collector proof,
	satisfactory to the department, [assessor-collector] that the
	vehicle was not brought into the United States from outside [of] the
	country.
	(d)  If a motor vehicle has not been titled or registered in
	the United States, the application for [certificate of] title must
	be accompanied by:
	(1)  a manufacturer's certificate of origin written in
	English issued by the vehicle manufacturer;
	(2)  the original documents that constitute valid proof
	of ownership in the country where the vehicle was originally
	purchased, with an English translation of the documents verified as
	to the accuracy of the translation by an affidavit of the
	translator; or
	(3)  if the vehicle was imported from a country that
	cancels the vehicle registration and title for export, the
	documents assigned to the vehicle after the registration and title
	were canceled, with an English translation of the documents
	verified as to the accuracy of the translation by an affidavit of
	the translator.
	(e)  Before a motor vehicle that is required to be registered
	in this state and that is brought into this state by a person other
	than a manufacturer or importer may be bargained, sold,
	transferred, or delivered with an intent to pass an interest in the
	vehicle or encumbered by a lien, the owner must apply for a
	[certificate of] title in [on] a manner [form] prescribed by the
	department to the county assessor-collector for the county in which
	the transaction is to take place. The assessor-collector may not
	issue a title receipt unless the applicant delivers to the
	assessor-collector satisfactory evidence [of title] showing that
	the applicant is the owner of the vehicle and that the vehicle is
	free of any undisclosed liens.
	(f)  A county assessor-collector may not be held liable for
	civil damages arising out of the assessor-collector's failure to
	reflect on the title receipt a lien or encumbrance on a motor
	vehicle to which Subsection (e) applies unless the
	[assessor-collector's] failure constitutes wilful or wanton
	negligence.
	(g)  Until an applicant has complied with this section:
	(1)  a county assessor-collector may not accept an
	application for [certificate of] title; and
	(2)  the applicant is not entitled to an appeal as
	provided by Sections 501.052 and 501.053.
	SECTION 21.  Section 501.031, Transportation Code, is
	amended to read as follows:
	Sec. 501.031.  RIGHTS OF SURVIVORSHIP AGREEMENT. (a)  The
	department shall include on each [certificate of] title an optional
	[a] rights of survivorship agreement that [form. The form must]:
	(1)  provides [provide] that if the agreement is
	between [signed by] two or more eligible persons, the motor vehicle
	is held jointly by those persons with the interest of a person who
	dies to transfer [survive] to the surviving person or persons; and
	(2)  provides [provide blanks] for the acknowledgment
	by signature, either electronically or by hand, [signatures] of the
	persons.
	(b)  If the vehicle is registered in the name of one or more
	of the persons who acknowledged [signed] the agreement, the
	[certificate of] title may contain a:
	(1)  rights of survivorship agreement acknowledged
	[signed] by all the persons; or
	(2)  remark if a rights of survivorship agreement is
	[surrendered with the application for certificate of title or
	otherwise] on file with the department.
	(c)  Ownership [Except as provided in Subsection (g),
	ownership] of the vehicle may be transferred only:
	(1)  by all the persons acting jointly, if all the
	persons are alive; and
	(2)  on the death of one of the persons by the surviving
	person or persons by transferring ownership of the vehicle [the
	certificate of title], in the manner otherwise required by law [for
	transfer of ownership of the vehicle], with a copy of the death
	certificate of the deceased person [attached to the certificate of
	title application].
	(d)  A rights of survivorship agreement under this section
	may be revoked only if [by surrender of the certificate of title to
	the department and joint application by] the persons named in [who
	signed] the agreement file a joint application for a new title in
	the name of the person or persons designated in the application.
	(e)  A person is eligible to file [sign] a rights of
	survivorship agreement under this section if the person:
	(1)  is married and the spouse of the [signing] person
	is the only other party to the agreement;
	(2)  is unmarried and attests to that unmarried status
	by affidavit; or
	(3)  is married and provides the department with an
	affidavit from the [signing] person's spouse that attests that the
	[signing] person's interest in the vehicle is the [signing]
	person's separate property.
	(f)  The department may develop an optional electronic [If
	the title is being issued in connection with the sale of the
	vehicle, the seller is not eligible to sign a] rights of
	survivorship agreement for public use [under this section unless
	the seller is the child, grandchild, parent, grandparent, brother,
	or sister of each other person signing the agreement. A family
	relationship required by this subsection may be a relationship
	established by adoption.
	[(g)     If an agreement, other than the agreement provided for
	in Subsection (a), providing for right of survivorship is signed by
	two or more persons, the department shall issue a new certificate of
	title to the surviving person or persons upon application
	accompanied by a copy of the death certificate of the deceased
	person. The department may develop for public use under this
	subsection an optional rights of survivorship agreement form].
	SECTION 22.  Section 501.032, Transportation Code, is
	amended to read as follows:
	Sec. 501.032.  ASSIGNMENT OF VEHICLE IDENTIFICATION
	[SERIAL] NUMBER BY DEPARTMENT. (a)  On proper application, the
	department shall assign a vehicle identification [a serial] number
	to a travel [house] trailer, a trailer or semitrailer that has a
	gross vehicle weight that exceeds 4,000 pounds, or an item of
	equipment, including a tractor, farm implement, unit of special
	mobile equipment, or unit of off-road construction equipment on
	which:
	(1)  a vehicle identification [a serial] number was not
	die-stamped by the manufacturer; or
	(2)  a vehicle identification [the serial] number
	die-stamped by the manufacturer has been lost, removed, or
	obliterated.
	(b)  The applicant shall die-stamp the assigned vehicle
	identification [serial] number at the place designated by the
	department on the travel [house] trailer, trailer, semitrailer, or
	equipment.
	(c)  The manufacturer's vehicle identification [serial]
	number or the vehicle identification [serial] number assigned by
	the department shall be affixed on the carriage or axle part of the
	travel [house] trailer, trailer, or semitrailer. The department
	shall use the number as the major identification of the vehicle in
	the issuance of a [certificate of] title.
	SECTION 23.  Sections 501.033(a), (b), and (d),
	Transportation Code, are amended to read as follows:
	(a)  A person determined by law enforcement [the department]
	or a court to be the owner of a motor vehicle, a part of a motor
	vehicle, or an item of equipment including a tractor, farm
	implement, unit of special mobile equipment, or unit of off-road
	construction equipment [that has had the serial number removed,
	altered, or obliterated] may apply to the department for an
	assigned vehicle identification number that has been removed,
	altered, or obliterated.
	(b)  An application under this section must be in [on] a
	manner [form] prescribed [and furnished] by the department and
	accompanied by [the certificate of title for the vehicle or other]
	valid evidence of ownership as required by the department [if there
	is no certificate of title].
	(d)  The assigned vehicle identification number shall be
	die-stamped or otherwise affixed [to the motor vehicle, part, or
	item of equipment at the location and] in the manner designated by
	the department.
	SECTION 24.  Section 520.011, Transportation Code, is
	transferred to Subchapter B, Chapter 501, Transportation Code,
	redesignated as Section 501.0331, Transportation Code, and amended
	to read as follows:
	Sec. 501.0331  [520.011].  MOTOR NUMBER REQUIRED FOR
	[VEHICLE] REGISTRATION [;  PENALTY]. [(a)]  A person may not apply
	to the county assessor-collector for the registration of a motor
	vehicle from which the original motor number has been removed,
	erased, or destroyed until the motor vehicle bears the motor number
	assigned by the department.
	[(b)     A person commits an offense if the person violates this
	section. An offense under this subsection is a misdemeanor
	punishable by a fine of not less than $50 and not more than $100.]
	SECTION 25.  Section 520.012, Transportation Code, is
	transferred to Subchapter B, Chapter 501, Transportation Code,
	redesignated as Section 501.0332, Transportation Code, and amended
	to read as follows:
	Sec. 501.0332  [520.012].  APPLICATION FOR MOTOR NUMBER
	RECORD[; RECORD; PENALTY]. (a)  To obtain a motor number assigned
	by the department, the owner of a motor vehicle that has had the
	original motor number removed, erased, or destroyed must file a
	sworn application with the department.
	(b)  The department shall maintain a record of [separate
	register for recording] each motor number assigned by the
	department that includes [. For each motor number assigned by the
	department, the record must indicate]:
	(1)  the motor number assigned by the department;
	(2)  the name and address of the owner of the motor
	vehicle; and
	(3)  the make, model, and year of manufacture of the
	motor vehicle.
	[(c)     A person who fails to comply with this section commits
	an offense. An offense under this subsection is a misdemeanor
	punishable by a fine of not less than $10 and not more than $100.]
	SECTION 26.  Section 501.034, Transportation Code, is
	amended to read as follows:
	Sec. 501.034.  ISSUANCE OF TITLE TO GOVERNMENT AGENCY. The
	department may issue a [certificate of] title to a government
	agency if a vehicle or part of a vehicle is:
	(1)  forfeited to the government agency;
	(2)  delivered by court order under the Code of
	Criminal Procedure to a government agency for official purposes; or
	(3)  sold as abandoned or unclaimed property under the
	Code of Criminal Procedure.
	SECTION 27.  Section 501.035, Transportation Code, is
	amended to read as follows:
	Sec. 501.035.  [CERTIFICATE OF] TITLE FOR FORMER MILITARY
	VEHICLE. (a)  Notwithstanding any other law, the department shall
	issue a [certificate of] title for a former military vehicle [that
	is not registered under the laws of this state] if all [other]
	requirements for issuance of a [certificate of] title are met.
	(b)  In this section, "former military vehicle" has the
	meaning assigned by Section 504.502(i) [502.275(o)].
	SECTION 28.  Section 501.036, Transportation Code, is
	amended to read as follows:
	Sec. 501.036.  [CERTIFICATE OF] TITLE FOR FARM SEMITRAILER.
	(a)  Notwithstanding any other provision of this chapter, the
	department may issue a [certificate of] title for a farm
	semitrailer with a gross weight of more than 4,000 pounds if:
	(1)  the farm semitrailer is eligible for registration
	under Section 502.146 [504.504];  and
	(2)  all other requirements for issuance of a
	[certificate of] title are met.
	(b)  To obtain a [certificate of] title under this section,
	the owner of the farm semitrailer must:
	(1)  apply for the [certificate of] title in the manner
	required by Section 501.023; and
	(2)  pay the fee required by Section 501.138.
	(c)  The department shall adopt rules [and forms] to
	implement and administer this section.
	SECTION 29.  Section 501.051, Transportation Code, is
	amended to read as follows:
	Sec. 501.051.  GROUNDS FOR REFUSAL TO ISSUE OR FOR
	REVOCATION OR SUSPENSION OF TITLE [CERTIFICATE]. (a) A title may
	be refused, canceled, suspended, or revoked by the [The] department
	[shall refuse to issue a certificate of title or shall suspend or
	revoke a certificate of title] if:
	(1)  the application [for the certificate] contains a
	false or fraudulent statement;
	(2)  the applicant failed to furnish required
	information requested by the department;
	(3)  the applicant is not entitled to a [certificate
	of] title;
	(4)  the department has reason to believe that the
	motor vehicle is stolen;
	(5)  the department has reason to believe that the
	issuance of a [certificate of] title would defraud the owner or a
	lienholder of the motor vehicle;
	(6)  the registration for the motor vehicle is
	suspended or revoked; or
	(7)  the required fee has not been paid.
	(b)  The department may rescind, cancel, or revoke an
	application for a title if a notarized affidavit is presented
	containing:
	(1)  a statement that the vehicle involved was a new
	motor vehicle in the process of a first sale;
	(2)  a statement that the dealer, the applicant, and
	any lienholder have canceled the sale;
	(3)  a statement that the vehicle:
	(A)  was never in the possession of the title
	applicant; or
	(B)  was in the possession of the title applicant;
	and
	(4)  the signatures of the dealer, the applicant, and
	any lienholder.
	(c)  A rescission, cancellation, or revocation containing
	the statement authorized under Subsection (b)(3)(B) does not negate
	the fact that the vehicle has been the subject of a previous retail
	sale.
	SECTION 30.  The heading to Section 501.052, Transportation
	Code, is amended to read as follows:
	Sec. 501.052.  HEARING ON REFUSAL TO ISSUE OR REVOCATION OR
	SUSPENSION OF [CERTIFICATE OF] TITLE; APPEAL.
	SECTION 31.  Sections 501.052(a), (d), and (e),
	Transportation Code, are amended to read as follows:
	(a)  An interested person aggrieved by a refusal,
	rescission, cancellation, suspension, or revocation under Section
	501.051 may apply for a hearing to the county assessor-collector
	for the county in which the person is a resident [domiciled]. On
	the day an assessor-collector receives the application, the
	assessor-collector shall notify the department of the date of the
	hearing.
	(d)  A determination of the assessor-collector is binding on
	the applicant and the department as to whether the department
	correctly refused to issue or correctly rescinded, canceled,
	revoked, or suspended the [certificate of] title.
	(e)  An applicant aggrieved by the determination under
	Subsection (d) may appeal to the county court of the county of the
	applicant's residence. An applicant must file an appeal not later
	than the fifth day after the date of the assessor-collector's
	determination. The county court judge shall try the appeal in the
	manner of other civil cases. All rights and immunities granted in
	the trial of a civil case are available to the interested parties.
	If the department's action is not sustained, the department shall
	promptly issue a [certificate of] title for the vehicle.
	SECTION 32.  Section 501.053, Transportation Code, is
	amended by amending Subsections (a), (b), and (d) and adding
	Subsection (e) to read as follows:
	(a)  As an alternative to the procedure provided by Section
	501.052, the person may file a bond with the department. On the
	filing of the bond the person [department] may obtain a [issue the
	certificate of] title.
	(b)  The bond must be:
	(1)  in the manner [form] prescribed by the department;
	(2)  executed by the applicant;
	(3)  issued by a person authorized to conduct a surety
	business in this state;
	(4)  in an amount equal to one and one-half times the
	value of the vehicle as determined by the department, which may set
	an appraisal system by rule if it is unable to determine that value;
	and
	(5)  conditioned to indemnify all prior owners and
	lienholders and all subsequent purchasers of the vehicle or persons
	who acquire a security interest in the vehicle, and their
	successors in interest, against any expense, loss, or damage,
	including reasonable attorney's fees, occurring because of the
	issuance of the [certificate of] title for the vehicle or for a
	defect in or undisclosed security interest on the right, title, or
	interest of the applicant to the vehicle.
	(d)  A bond under this section expires on the third
	anniversary of the date the bond became effective. [The department
	shall return an expired bond to the person who filed the bond unless
	the department has been notified of a pending action to recover on
	the bond.]
	(e)  The board by rule may establish a fee to cover the cost
	of administering this section.
	SECTION 33.  Section 501.071, Transportation Code, is
	amended to read as follows:
	Sec. 501.071.  SALE OF VEHICLE; TRANSFER OF TITLE. (a)
	Except as provided in Section 503.039, a motor vehicle may not be
	the subject of a subsequent sale unless the owner designated on [in]
	the [certificate of] title submits a transfer of ownership of
	[transfers] the [certificate of] title [at the time of the sale].
	(b)  The transfer of the [certificate of] title must be in
	[on] a manner [form] prescribed by the department that [includes a
	statement that]:
	(1)  certifies the purchaser [signer] is the owner of
	the vehicle; and
	(2)  certifies there are no liens on the vehicle or
	provides a release of each lien [except as shown] on the vehicle
	[certificate of title or as fully described in the statement].
	SECTION 34.  Section 520.022, Transportation Code, is
	transferred to Subchapter D, Chapter 501, Transportation Code,
	redesignated as Section 501.0721, Transportation Code, and amended
	to read as follows:
	Sec. 501.0721  [520.022].  DELIVERY OF RECEIPT AND TITLE TO
	PURCHASER OF USED MOTOR VEHICLE [TRANSFEREE; PENALTY]. [(a)]  A
	person, whether acting for that person or another, who sells,
	trades, or otherwise transfers a used motor vehicle shall deliver
	to the purchaser [transferee] at the time of delivery of the vehicle
	[:
	[(1)     the license receipt issued by the department for
	registration of the vehicle, if the vehicle was required to be
	registered at the time of the delivery; and
	[(2)]  a properly assigned [certificate of] title or
	other evidence of title as required under this chapter [Chapter
	501].
	[(b)     A person commits an offense if the person violates this
	section. An offense under this subsection is a misdemeanor
	punishable by a fine not to exceed $200.]
	SECTION 35.  Sections 501.074(a), (b), and (c),
	Transportation Code, are amended to read as follows:
	(a)  The department shall issue a new [certificate of] title
	for a motor vehicle registered in this state for which the ownership
	is transferred by operation of law [, including by inheritance,
	devise or bequest, bankruptcy, receivership, judicial sale,] or
	other involuntary divestiture of ownership after receiving:
	(1)  a certified copy of an [the] order appointing a
	temporary administrator or of the probate proceedings;
	(2)  letters testamentary or letters of
	administration;
	(3)  if administration of an estate is not necessary,
	an affidavit showing that administration is not necessary,
	identifying all heirs, and including a statement by the heirs of the
	name in which the certificate shall be issued;
	(4)  a court order; or
	(5)  the bill of sale from an officer making a judicial
	sale.
	(b)  If a lien is foreclosed by nonjudicial means, the
	department may issue a new [certificate of] title in the name of the
	purchaser at the foreclosure sale on receiving the affidavit of the
	lienholder of the fact of the nonjudicial foreclosure.
	(c)  If a constitutional or statutory lien is foreclosed, the
	department may issue a new [certificate of] title in the name of the
	purchaser at the foreclosure sale on receiving:
	(1)  the affidavit of the lienholder of the fact of the
	creation of the lien and of the divestiture of title according to
	law; and
	(2)  proof of notice as required by Sections 70.004 and
	70.006, Property Code.
	SECTION 36.  Section 501.076(c), Transportation Code, is
	amended to read as follows:
	(c)  The person named as the agent in the limited power of
	attorney must meet the following requirements:
	(1)  the person may be a person who has been appointed
	by the commissioners [commissioner's] court as a deputy to perform
	vehicle registration functions under Section 520.0091 [502.112], a
	licensed [license] vehicle auction company holding a wholesale
	general distinguishing number under Section 503.022, a person who
	has a permit similar to one of the foregoing that is issued by the
	state in which the owner is located, or another person authorized by
	law to execute title documents in the state in which the owner
	executes the documents; and
	(2)  the person may not be the transferee or an employee
	of the transferee. The person may not act as the agent of both the
	transferor and transferee in the transaction. For the purposes of
	this section, a person is not the agent of both the transferor and
	transferee in a transaction unless the person has the authority to
	sign the documents pertaining to the transfer of title on behalf of
	both the transferor and the transferee.
	SECTION 37.  Section 501.091, Transportation Code, is
	amended by amending Subdivisions (2), (3), (6), (7), (8), (9),
	(10), (12), (14), (15), (16), (17), and (18) and adding
	Subdivisions (10-a) and (16-a) to read as follows:
	(2)  "Casual sale" means the sale by a salvage vehicle
	dealer or an insurance company of five or fewer [not more than five]
	nonrepairable motor vehicles or salvage motor vehicles to the same
	person during a calendar year, but [. The term] does not include:
	(A)  a sale at auction to a salvage vehicle
	dealer; [or]
	(B)  a sale to an insurance company, out-of-state
	buyer, or governmental entity; or
	(C)  the sale of an export-only motor vehicle to a
	person who is not a resident of the United States.
	(3)  "Damage" means sudden damage to a motor vehicle
	caused by the motor vehicle being wrecked, burned, flooded, or
	stripped of major component parts. The term does not include:
	(A)  gradual damage from any cause;
	(B)  [,] sudden damage caused by hail;
	(C)  [, or] any damage caused only to the exterior
	paint of the motor vehicle; or
	(D)  theft, unless the motor vehicle was damaged
	during the theft and before recovery.
	(6)  "Major component part" means one of the following
	parts of a motor vehicle:
	(A)  the engine;
	(B)  the transmission;
	(C)  the frame;
	(D)  a fender;
	(E)  the hood;
	(F)  a door allowing entrance to or egress from
	the passenger compartment of the motor vehicle;
	(G)  a bumper;
	(H)  a quarter panel;
	(I)  a deck lid, tailgate, or hatchback;
	(J)  the cargo box of a vehicle with a gross
	vehicle weight of 10,000 pounds or less [one-ton or smaller truck],
	including a pickup truck;
	(K)  the cab of a truck;
	(L)  the body of a passenger motor vehicle;
	(M)  the roof or floor pan of a passenger motor
	vehicle, if separate from the body of the motor vehicle.
	(7)  "Metal recycler" means a person who:
	(A)  is [predominately] engaged in the business of
	obtaining, converting, or selling ferrous or nonferrous metal [that
	has served its original economic purpose to convert the metal, or
	sell the metal] for conversion[,] into raw material products
	consisting of prepared grades and having an existing or potential
	economic value;
	(B)  has a facility to convert ferrous or
	nonferrous metal into raw material products [consisting of prepared
	grades and having an existing or potential economic value,] by
	method other than the exclusive use of hand tools, including the
	processing, sorting, cutting, classifying, cleaning, baling,
	wrapping, shredding, shearing, or changing the physical form or
	chemical content of the metal; and
	(C)  sells or purchases the ferrous or nonferrous
	metal solely for use as raw material in the production of new
	products.
	(8)  "Motor vehicle" has the meaning assigned by
	Section 501.002 [501.002(14)].
	(9)  "Nonrepairable motor vehicle" means a motor
	vehicle that:
	(A)  is damaged, wrecked, or burned to the extent
	that the only residual value of the vehicle is as a source of parts
	or scrap metal; or
	(B)  comes into this state under a comparable
	[title or other] ownership document that indicates that the vehicle
	is nonrepairable [, junked, or for parts or dismantling only].
	(10)  "Nonrepairable vehicle title" means a printed
	document issued by the department that evidences ownership of a
	nonrepairable motor vehicle.
	(10-a)  "Nonrepairable record of title" means an
	electronic record of ownership of a nonrepairable motor vehicle.
	(12)  "Out-of-state ownership document" means a
	negotiable document issued by another state or jurisdiction that
	the department considers sufficient to prove ownership of a
	nonrepairable motor vehicle or salvage motor vehicle and to support
	the issuance of a comparable Texas [certificate of] title for the
	motor vehicle. The term does not include any [a] title or
	certificate issued by the department [, including a regular
	certificate of title, a nonrepairable vehicle title, a salvage
	vehicle title, a Texas Salvage Certificate, Certificate of
	Authority to Demolish a Motor Vehicle, or another ownership
	document issued by the department].
	(14)  "Rebuilder" means a person who acquires and
	repairs, rebuilds, or reconstructs for operation on a public
	highway, [three or] more than five salvage motor vehicles in a
	calendar year.
	(15)  "Salvage motor vehicle" [:
	[(A)] means a motor vehicle that:
	(A) [(i)]  has damage to or is missing a major
	component part to the extent that the cost of repairs, including
	parts and labor other than the cost of materials and labor for
	repainting the motor vehicle and excluding sales tax on the total
	cost of repairs, exceeds the actual cash value of the motor vehicle
	immediately before the damage; or
	(B)  [(ii) is damaged and that] comes into this
	state under an out-of-state salvage motor vehicle [certificate of]
	title or similar out-of-state ownership document [that states on
	its face "accident damage," "flood damage," "inoperable,"
	"rebuildable," "salvageable," or similar notation; and
	[(B) does not include an out-of-state motor
	vehicle with a "rebuilt," "prior salvage," "salvaged," or similar
	notation, a nonrepairable motor vehicle, or a motor vehicle for
	which an insurance company has paid a claim for:
	[(i) the cost of repairing hail damage; or
	[(ii) theft, unless the motor vehicle was
	damaged during the theft and before recovery to the extent
	described by Paragraph (A)(i)].
	(16)  "Salvage vehicle title" means a printed document
	issued by the department that evidences ownership of a salvage
	motor vehicle.
	(16-a)  "Salvage record of title" means an electronic
	record of ownership of a salvage motor vehicle.
	(17)  "Salvage vehicle dealer" means a person engaged
	in this state in the business of acquiring, selling, repairing,
	rebuilding, reconstructing, or otherwise dealing in nonrepairable
	motor vehicles, salvage motor vehicles, or, if incidental to a
	salvage motor vehicle dealer's primary business, used automotive
	parts regardless of whether the person holds a license issued by the
	department to engage in that business.  The term does not include an
	unlicensed [a] person who:
	(A)  casually repairs, rebuilds, or reconstructs
	not more [fewer] than five nonrepairable motor vehicles or salvage
	motor vehicles in the same calendar year [or, except as provided by
	Paragraph (C), a used automotive parts recycler. The term includes
	a person engaged in the business of:
	[(A)     a salvage vehicle dealer, regardless of
	whether the person holds a license issued by the department to
	engage in that business];
	(B)  buys not more than five [dealing in]
	nonrepairable motor vehicles or salvage motor vehicles in the same
	calendar year; or
	(C)  is a licensed used automotive parts recycler
	if the sale of repaired, rebuilt, or reconstructed nonrepairable
	motor vehicles or salvage motor vehicles is more than an incidental
	part of the used automotive parts recycler's business.
	(18)  "Self-insured motor vehicle" means a motor
	vehicle for which the [evidence of ownership is a manufacturer's
	certificate of origin or for which the department or another state
	or jurisdiction has issued a regular certificate of title, is
	self-insured by the] owner [, and is owned by an individual, a
	business,] or a governmental entity assumes full financial
	responsibility for motor vehicle loss claims[,] without regard to
	the number of motor vehicles they own or operate. The term does not
	include a motor vehicle that is insured by an insurance company.
	SECTION 38.  Section 501.098, Transportation Code, is
	redesignated as Section 501.09111, Transportation Code, and
	amended to read as follows:
	Sec. 501.09111 [501.098]. RIGHTS AND LIMITATIONS OF [HOLDER
	OF] NONREPAIRABLE VEHICLE TITLE, NONREPAIRABLE RECORD OF TITLE,
	[OR] SALVAGE VEHICLE TITLE, OR SALVAGE RECORD OF TITLE. (a) A
	person who owns [holds] a nonrepairable [vehicle title for a] motor
	vehicle:
	(1)  is entitled to possess, transport, dismantle,
	scrap, destroy, record a lien as provided for in Section
	501.097(a)(3)(A), and sell, transfer, or release ownership of the
	motor vehicle or a used part from the motor vehicle; and
	(2)  may not:
	(A)  operate or permit the operation of the motor
	vehicle on a public highway, in addition to any other requirement of
	law;
	(B)  repair, rebuild, or reconstruct the motor
	vehicle; or
	(C)  register the motor vehicle.
	(b)  A person who holds a nonrepairable certificate of title
	issued prior to September 1, 2003,[:
	[(1)]  is entitled to the same rights listed in
	Subsection (a) and may [:
	[(A)]  repair, rebuild, or reconstruct the motor
	vehicle [;
	[(B)     possess, transport, dismantle, scrap, or
	destroy the motor vehicle; and
	[(C)     sell, transfer, or release ownership of the
	vehicle or a used part from the motor vehicle; and
	[(2)  may not:
	[(A)     operate or permit the operation of the motor
	vehicle on a public highway, in addition to any other requirement of
	law; or
	[(B)  register the motor vehicle].
	(c)  A person who owns [holds] a salvage [vehicle title for
	a] motor vehicle:
	(1)  is entitled to possess, transport, dismantle,
	scrap, destroy, repair, rebuild, reconstruct, record a lien on, and
	sell, transfer, or release ownership of the motor vehicle or a used
	part from the motor vehicle; and
	(2)  may not operate, register, or permit the operation
	of the motor vehicle on a public highway, in addition to any other
	requirement of law.
	SECTION 39.  Section 501.103, Transportation Code, is
	redesignated as Section 501.09112, Transportation Code, and
	amended to read as follows:
	Sec. 501.09112  [501.103]. APPEARANCE [COLOR] OF
	NONREPAIRABLE VEHICLE TITLE OR SALVAGE VEHICLE TITLE. (a) The
	department's printed [department shall print a] nonrepairable
	vehicle title must[:
	[(1)     in a color that distinguishes it from a regular
	certificate of title or salvage vehicle title; and
	[(2)  so that it] clearly indicate [shows] that it is
	the negotiable ownership document for a nonrepairable motor
	vehicle.
	(b)  A nonrepairable vehicle title must clearly indicate
	[state on its face] that the motor vehicle:
	(1)  may not be:
	(A)  issued a regular [certificate of] title;
	(B)  registered in this state; or
	(C)  repaired, rebuilt, or reconstructed; and
	(2)  may be used only as a source for used parts or
	scrap metal.
	(c)  The department's printed [department shall print a]
	salvage vehicle title must [:
	[(A)     in a color that distinguishes it from a
	regular certificate of title or nonrepairable vehicle title; and
	[(B)  so that each document] clearly show [shows]
	that it is the ownership document for a salvage motor vehicle.
	(d)  A salvage vehicle title or a salvage record of title for
	a vehicle that is a salvage motor vehicle because of damage caused
	exclusively by flood must bear a notation [on its face] that the
	department considers appropriate. If the title for a motor vehicle
	reflects the notation required by this subsection, the owner may
	sell, transfer, or release the motor vehicle only as provided by
	this subchapter.
	(e)  An electronic application for a nonrepairable vehicle
	title, nonrepairable record of title, salvage vehicle title, or
	salvage record of title must clearly advise the applicant of the
	same provisions required on a printed title.
	(f)  A nonrepairable vehicle title, nonrepairable record of
	title, salvage vehicle title, or salvage record of title in the
	department's electronic database must include appropriate remarks
	so that the vehicle record clearly shows the status of the vehicle
	[(e)   The department may provide a stamp to a person who is a
	licensed salvage vehicle dealer under Chapter 2302, Occupations
	Code, to mark the face of a title under this subchapter. The
	department shall provide the stamp to the person for a fee in the
	amount determined by the department to be necessary for the
	department to recover the cost of providing the stamp].
	SECTION 40.  Section 501.101, Transportation Code, is
	redesignated as Section 501.09113, Transportation Code, and
	amended to read as follows:
	Sec. 501.09113  [501.101]. OUT-OF-STATE SALVAGE OR REBUILT
	SALVAGE VEHICLE [ISSUANCE OF TITLE TO MOTOR VEHICLE BROUGHT INTO
	STATE]. (a) This section applies only to a motor vehicle brought
	into this state from another state or jurisdiction that has on any
	[certificate of] title or comparable out-of-state ownership
	document issued by the other state or jurisdiction:
	(1)  a "rebuilt," "salvage," or similar notation; or
	(2)  a "nonrepairable," "dismantle only," "parts
	only," "junked," "scrapped," or similar notation.
	(b)  On receipt of a complete application from the owner of
	the motor vehicle, the department shall issue the applicant the
	appropriate [certificate of] title for the motor vehicle.
	[(c)     A certificate of title issued under this section must
	show on its face:
	[(1)  the date of issuance;
	[(2)  the name and address of the owner;
	[(3)     any registration number assigned to the motor
	vehicle; and
	[(4)     a description of the motor vehicle or other
	notation the department considers necessary or appropriate.]
	SECTION 41.  The heading to Section 501.095, Transportation
	Code, is amended to read as follows:
	Sec. 501.095.  SALE, TRANSFER, OR RELEASE [OF NONREPAIRABLE
	MOTOR VEHICLE OR SALVAGE MOTOR VEHICLE].
	SECTION 42.  Sections 501.095(a) and (b), Transportation
	Code, are amended to read as follows:
	(a)  If the department has not issued a nonrepairable vehicle
	title, nonrepairable record of title, [or] salvage vehicle title,
	or salvage record of title for the motor vehicle and a comparable
	[an] out-of-state ownership document for the motor vehicle has not
	been issued by another state or jurisdiction, a business or
	governmental entity described by Subdivisions (1)-(3) may sell,
	transfer, or release a nonrepairable motor vehicle or salvage motor
	vehicle only to a person who is:
	(1)  a licensed salvage vehicle dealer, a used
	automotive parts recycler under Chapter 2309, Occupations Code, or
	a metal recycler under Chapter 2302, Occupations Code;
	(2)  an insurance company that has paid a claim on the
	nonrepairable or salvage motor vehicle; or
	(3)  a governmental entity[; or
	[(4)  an out-of-state buyer].
	(b)  An owner [A person], other than a salvage vehicle
	dealer, a used automotive parts recycler, or an insurance company
	licensed to do business in this state, who acquired ownership of a
	nonrepairable or salvage motor vehicle that has not been issued a
	nonrepairable vehicle title, nonrepairable record of title,
	salvage vehicle title, salvage record of title, or a comparable
	ownership document issued by another state or jurisdiction shall,
	before selling the motor vehicle, surrender the properly assigned
	[certificate of] title for the motor vehicle to the department and
	apply to the department for the appropriate ownership document[:
	[(1)     a nonrepairable vehicle title if the vehicle is a
	nonrepairable motor vehicle; or
	[(2)     a salvage vehicle title if the vehicle is a
	salvage motor vehicle].
	SECTION 43.  Section 501.097, Transportation Code, is
	amended by amending Subsections (a), (b), and (c) and adding
	Subsection (c-1) to read as follows:
	(a)  An application for a nonrepairable vehicle title,
	nonrepairable record of title, [or] salvage vehicle title, or
	salvage record of title must:
	(1)  be made in [on] a manner [form] prescribed by the
	department and accompanied by a $8 application fee;
	(2)  include, in addition to any other information
	required by the department:
	(A)  the name and current address of the owner;
	and
	(B)  a description of the motor vehicle, including
	the make, style of body, model year, and vehicle identification
	number[; and
	[(C)     a statement describing whether the motor
	vehicle:
	[(i)     was the subject of a total loss claim
	paid by an insurance company under Section 501.092 or 501.093;
	[(ii)     is a self-insured motor vehicle under
	Section 501.094;
	[(iii)     is an export-only motor vehicle
	under Section 501.099; or
	[(iv)     was sold, transferred, or released to
	the owner or former owner of the motor vehicle or a buyer at a casual
	sale]; and
	(3)  include the name and address of:
	(A)  any currently recorded lienholder, if the
	motor vehicle is a nonrepairable motor vehicle; or
	(B)  any currently recorded lienholder or a new
	lienholder, if the motor vehicle is a salvage motor vehicle.
	(b)  Except as provided by Sections 501.10015 and 501.10025,
	on [On] receipt of a complete application, the properly assigned
	title or manufacturer's certificate of origin, and the application
	fee, the department shall, before the sixth business day after the
	date the department receives the application, issue the applicant
	the appropriate title for the motor vehicle.
	(c)  A printed nonrepairable vehicle title must state on its
	face that the motor vehicle:
	(1)  may not:
	(A)  be repaired, rebuilt, or reconstructed;
	(B)  be issued a [regular certificate of] title or
	registered in this state;
	(C)  be operated on a public highway, in addition
	to any other requirement of law; and
	(2)  may only be used as a source for used parts or
	scrap metal.
	(c-1)  The department's titling system must include a remark
	that clearly identifies the vehicle as a salvage or nonrepairable
	motor vehicle.
	SECTION 44.  Sections 501.100(a), (b), (c), and (f),
	Transportation Code, are amended to read as follows:
	(a)  A vehicle for which a nonrepairable certificate of title
	issued prior to September 1, 2003, or for which a salvage vehicle
	title or salvage record of title has been issued may obtain [be
	issued] a [regular certificate of] title after the motor vehicle
	has been repaired, rebuilt, or reconstructed [by a person described
	by Section 501.104(a)] and, in addition to any other requirement of
	law, only if the application [is accompanied by a separate form
	that]:
	(1)  describes each major component part used to repair
	the motor vehicle;
	(2)  states the name of each person from whom the parts
	used in assembling the vehicle were obtained; and
	(3) [(2)]  shows the identification number required by
	federal law to be affixed to or inscribed on the part.
	(b)  On receipt of a complete application under this section
	accompanied by the [$13] fee for the [certificate of] title, the
	department shall issue the applicant a [regular certificate of]
	title [for the motor vehicle].
	(c)  A [regular certificate of] title issued under this
	section must [:
	[(1)]  describe or disclose the motor vehicle's former
	condition in a manner reasonably understandable to a potential
	purchaser of the motor vehicle [; and
	[(2)     bear on its face the words "REBUILT SALVAGE" in
	capital letters that:
	[(A)  are red;
	[(B)     are centered on and occupy at least 15
	percent of the face of the certificate of title; and
	[(C)     do not prevent any other words on the title
	from being read or copied].
	(f)  The department may not issue a regular [certificate of]
	title for a motor vehicle based on a:
	(1)  nonrepairable vehicle title or comparable
	out-of-state ownership document;
	(2)  receipt issued under Section 501.1003(b)
	[501.096(b)]; or
	(3)  certificate of authority.
	SECTION 45.  Section 501.092, Transportation Code, is
	redesignated as Section 501.1001, Transportation Code, and amended
	to read as follows:
	Sec. 501.1001 [501.092].  [INSURANCE COMPANY TO SURRENDER
	CERTIFICATES OF TITLE TO CERTAIN] SALVAGE MOTOR VEHICLES OR
	NONREPAIRABLE MOTOR VEHICLES FOR INSURANCE COMPANIES OR
	SELF-INSURED PERSONS. (a)  Except as provided by Section
	501.10015, an [An] insurance company that is licensed to conduct
	business in this state and that acquires, through payment of a
	claim, ownership or possession of a salvage motor vehicle or
	nonrepairable motor vehicle covered by a [certificate of] title
	issued by this state or a manufacturer's certificate of origin
	shall surrender a properly assigned title or manufacturer's
	certificate of origin to the department, in [on] a manner [form]
	prescribed by the department[, except that not earlier than the
	46th day after the date of payment of the claim the insurance
	company may surrender a certificate of title, on a form prescribed
	by the department, and receive a salvage certificate of title or a
	nonrepairable certificate of title without obtaining a properly
	assigned certificate of title if the insurance company:
	[(1)     has obtained the release of all liens on the motor
	vehicle;
	[(2)     is unable to locate one or more owners of the
	motor vehicle; and
	[(3)     has provided notice to the last known address in
	the department's records to each owner that has not been located:
	[(A)     by registered or certified mail, return
	receipt requested; or
	[(B)     if a notice sent under Paragraph (A) is
	returned unclaimed, by publication in a newspaper of general
	circulation in the area where the unclaimed mail notice was sent].
	(b)  For a salvage motor vehicle, the insurance company shall
	apply for a salvage vehicle title or salvage record of title. For a
	nonrepairable motor vehicle, the insurance company shall apply for
	a nonrepairable vehicle title or nonrepairable record of title.
	(c)  [An insurance company may not sell a motor vehicle to
	which this section applies unless the department has issued a
	salvage vehicle title or a nonrepairable vehicle title for the
	motor vehicle or a comparable ownership document has been issued by
	another state or jurisdiction for the motor vehicle.
	[(d)     An insurance company may sell a motor vehicle to which
	this section applies, or assign a salvage vehicle title or a
	nonrepairable vehicle title for the motor vehicle, only to a
	salvage vehicle dealer, an out-of-state buyer, a buyer in a casual
	sale at auction, a metal recycler, or a used automotive parts
	recycler. If the motor vehicle is not a salvage motor vehicle or a
	nonrepairable motor vehicle, the insurance company is not required
	to surrender the regular certificate of title for the vehicle or to
	be issued a salvage vehicle title or a nonrepairable vehicle title
	for the motor vehicle.
	[(e)]  An insurance company or other person who acquires
	ownership of a motor vehicle other than a nonrepairable or salvage
	motor vehicle may voluntarily and on proper application obtain a
	salvage vehicle title, salvage record of title, [or a]
	nonrepairable vehicle title, or nonrepairable record of title for
	the vehicle.
	(d)  This subsection applies only to a motor vehicle in this
	state that is a self-insured motor vehicle and that is damaged to
	the extent it becomes a nonrepairable or salvage motor vehicle. The
	owner of a motor vehicle to which this subsection applies shall
	submit to the department before the 31st business day after the date
	of the damage, in a manner prescribed by the department, a statement
	that the motor vehicle was self-insured and damaged. When the owner
	submits a report, the owner shall surrender the ownership document
	and apply for a nonrepairable vehicle title, nonrepairable record
	of title, salvage vehicle title, or salvage record of title.
	SECTION 46.  Subchapter E, Chapter 501, Transportation Code,
	is amended by adding Sections 501.10015 and 501.10025 to read as
	follows:
	Sec. 501.10015.  INSURANCE COMPANY NOT REQUIRED TO SURRENDER
	CERTIFICATES OF TITLE IN CERTAIN SITUATIONS. (a)  An insurance
	company that acquires, through payment of a claim, ownership or
	possession of a motor vehicle covered by a certificate of title that
	the company is unable to obtain may obtain from the department not
	earlier than the 30th day after the date of payment of the claim:
	(1)  a salvage vehicle title or salvage record of title
	for a salvage motor vehicle;
	(2)  a nonrepairable vehicle title or nonrepairable
	record of title for a nonrepairable motor vehicle; or
	(3)  a title for a motor vehicle other than a salvage
	motor vehicle or a nonrepairable motor vehicle.
	(b)  An application for a title under Subsection (a) must be
	submitted to the department on a form prescribed by the department
	and include:
	(1)  a statement that the insurance company has
	provided at least two written notices attempting to obtain the
	title for the motor vehicle; and
	(2)  evidence acceptable to the department that the
	insurance company has made payment of a claim involving the motor
	vehicle.
	(c)  An insurance company that acquires, through payment of a
	claim, ownership or possession of a motor vehicle covered by a title
	for which the company is unable to obtain proper assignment of the
	title may obtain from the department not earlier than the 30th day
	after the date of payment of the claim:
	(1)  a salvage vehicle title or salvage record of title
	for a salvage motor vehicle;
	(2)  a nonrepairable vehicle title or nonrepairable
	record of title for a nonrepairable motor vehicle; or
	(3)  a title for a motor vehicle other than a salvage
	motor vehicle or a nonrepairable motor vehicle.
	(d)  An application for a title under Subsection (c) must be
	submitted to the department on a form prescribed by the department
	and include:
	(1)  a statement that the insurance company has
	provided at least two written notices attempting to obtain a proper
	assignment of the title; and
	(2)  the title.
	(e)  A title issued under Subsection (a) or (c) must be
	issued in the name of the insurance company.
	(f)  An insurance company that acquires, through payment of a
	claim, ownership or possession of a salvage motor vehicle or
	nonrepairable motor vehicle covered by an out-of-state ownership
	document may obtain from the department a salvage vehicle title,
	salvage record of title, nonrepairable vehicle title, or
	nonrepairable record of title if:
	(1)  the motor vehicle was damaged, stolen, or
	recovered in this state;
	(2)  the motor vehicle owner from whom the company
	acquired ownership resides in this state; or
	(3)  otherwise allowed by department rule.
	(g)  A title may be issued under Subsection (f) if the
	insurance company:
	(1)  surrenders a properly assigned title on a form
	prescribed by the department; or
	(2)  complies with the application process for a title
	issued under Subsection (a) or (c).
	(h)  The department shall issue the appropriate title to a
	person authorized to apply for the title under this section if the
	department determines that the application is complete and complies
	with applicable law.
	(i)  The department by rule may provide that a person
	required by this section to provide notice may provide the notice
	electronically, including through the use of e-mail or an
	interactive website established by the department for that purpose.
	(j)  Sections 501.1001(c) and 501.095 apply to a motor
	vehicle acquired by an insurance company as described in Subsection
	(a), (c), or (f).
	(k)  The department may adopt rules to implement this
	section.
	Sec. 501.10025.  ISSUANCE OF TITLE TO SALVAGE POOL OPERATOR.
	(a)  In this section, "salvage pool operator" has the meaning
	assigned by Section 2302.001, Occupations Code.
	(b)  This section applies only to a salvage pool operator
	who, on request of an insurance company, takes possession of a motor
	vehicle that is the subject of an insurance claim and the insurance
	company subsequently:
	(1)  denies coverage with respect to the motor vehicle;
	or
	(2)  does not otherwise take ownership of the motor
	vehicle.
	(b-1)  An insurance company described by Subsection (b)
	shall notify the salvage pool operator of the denial of the claim
	regarding the motor vehicle or other disposition of the motor
	vehicle.  The insurance company must include in the notice the name
	and address of the owner of the motor vehicle and the lienholder, if
	any.
	(c)  Before the 31st day after receiving notice under
	Subsection (b-1), a salvage pool operator shall notify the owner of
	the motor vehicle and any lienholder that:
	(1)  the owner or lienholder must remove the motor
	vehicle from the salvage pool operator's possession at the location
	specified in the notice to the owner and any lienholder not later
	than the 30th day after the date the notice is mailed; and
	(2)  if the motor vehicle is not removed within the time
	specified in the notice, the salvage pool operator will sell the
	motor vehicle and retain from the proceeds any costs actually
	incurred by the operator in obtaining, handling, and disposing of
	the motor vehicle as described by Subsection (d).
	(d)  The salvage pool operator may include in the costs
	described by Subsection (c)(2) only costs actually incurred by the
	salvage pool operator that have not been reimbursed by a third party
	or are not subject to being reimbursed by a third party, such as
	costs of notices, title searches, and towing and other costs
	incurred with respect to the motor vehicle.  The costs described by
	Subsection (c)(2):
	(1)  may not include charges for storage or impoundment
	of the motor vehicle; and
	(2)  may be deducted only from the proceeds of a sale of
	the motor vehicle.
	(e)  The notice required of a salvage pool operator under
	this section must be sent by registered or certified mail, return
	receipt requested.
	(f)  If a motor vehicle is not removed from a salvage pool
	operator's possession before the 31st day after the date notice is
	mailed to the motor vehicle's owner and any lienholder under
	Subsection (c), the salvage pool operator may obtain from the
	department:
	(1)  a salvage vehicle title or salvage record of title
	for a salvage motor vehicle; or
	(2)  a nonrepairable vehicle title or nonrepairable
	record of title for a nonrepairable motor vehicle.
	(g)  An application for a title under Subsection (f) must:
	(1)  be submitted to the department on a form
	prescribed by the department; and
	(2)  include evidence that the notice was mailed as
	required by Subsection (c) to the motor vehicle owner and any
	lienholder.
	(h)  A title issued under this section must be issued in the
	name of the salvage pool operator.
	(i)  The department shall issue the appropriate title to a
	person authorized to apply for the title under this section if the
	department determines that the application is complete and complies
	with applicable law.
	(j)  On receipt of a title under this section, the salvage
	pool operator shall sell the motor vehicle and retain from the
	proceeds of the sale the costs incurred by the salvage pool operator
	as permitted by Subsection (d) along with the cost of titling and
	selling the motor vehicle. The salvage pool operator shall pay any
	excess proceeds from the sale to the previous owner of the motor
	vehicle and the lienholder, if any.  The excess proceeds must be
	mailed to the lienholder.
	(k)  If the previous owner of the motor vehicle and the
	lienholder, if any, cannot be identified or located, any excess
	proceeds from the sale of the motor vehicle under Subsection (j)
	shall escheat to the State of Texas. The proceeds shall be
	administered by the comptroller and shall be disposed of in the
	manner provided by Chapter 74, Property Code.
	SECTION 47.  Section 501.093, Transportation Code, is
	redesignated as Section 501.1002, Transportation Code, and amended
	to read as follows:
	Sec. 501.1002 [501.093].  OWNER-RETAINED [INSURANCE COMPANY
	REPORT ON CERTAIN] VEHICLES. (a)  If an insurance company pays a
	claim on a nonrepairable motor vehicle or salvage motor vehicle and
	the insurance company does not acquire ownership of the motor
	vehicle, the insurance company shall:
	(1)  apply on behalf of the owner for a nonrepairable
	vehicle title, nonrepairable record of title, salvage vehicle
	title, or salvage record of title; or
	(2)  notify the owner of the information contained in:
	(A)  Subsection (b); or
	(B)  Section 501.09111; and
	(3)  submit to the department, before the 31st day
	after the date of the payment of the claim, in a manner [on the
	form] prescribed by the department, a report stating that the
	insurance company:
	(A) [(1)]  has paid a claim on the motor vehicle;
	and
	(B) [(2)]  has not acquired ownership of the motor
	vehicle.
	(b)  The owner of a motor vehicle to which this section
	applies may not operate or permit operation of the motor vehicle on
	a public highway or transfer ownership of the motor vehicle by sale
	or otherwise unless the department has issued a salvage vehicle
	title, salvage record of title, [or a] nonrepairable vehicle title,
	or nonrepairable record of title for the motor vehicle or a
	comparable ownership document has been issued by another state or
	jurisdiction for the motor vehicle.
	[(c)  Subsection (b) does not apply if:
	[(1)     the department has issued a nonrepairable vehicle
	title or salvage vehicle title for the motor vehicle; or
	[(2)     another state or jurisdiction has issued a
	comparable out-of-state ownership document for the motor vehicle.]
	SECTION 48.  Section 501.096, Transportation Code, is
	redesignated as Section 501.1003, Transportation Code, and amended
	to read as follows:
	Sec. 501.1003 [501.096].  [NONREPAIRABLE MOTOR VEHICLE OR]
	SALVAGE DEALER RESPONSIBILITIES [MOTOR VEHICLE DISMANTLED,
	SCRAPPED, OR DESTROYED]. (a)  If a salvage vehicle dealer acquires
	ownership of a nonrepairable motor vehicle or salvage motor vehicle
	for the purpose of dismantling, scrapping, or destroying the motor
	vehicle, the dealer shall, before the 31st day after the date the
	dealer acquires the motor vehicle, submit to the department a
	report stating that the motor vehicle will be dismantled, scrapped,
	or destroyed. The dealer shall:
	(1)  make the report in a manner [on a form] prescribed
	by the department; and
	(2)  submit with the report a properly assigned
	manufacturer's certificate of origin, regular certificate of
	title, nonrepairable vehicle title, salvage vehicle title, or
	comparable out-of-state ownership document for the motor vehicle.
	(b)  After receiving the report and title or document, the
	department shall issue the salvage vehicle dealer a receipt for the
	manufacturer's certificate of origin, regular certificate of
	title, nonrepairable vehicle title, salvage vehicle title, or
	comparable out-of-state ownership document.
	(c)  The department shall adopt rules to notify the salvage
	[vehicle] dealer if the vehicle was not issued a printed title, but
	has a record of title in the department's titling system [shall:
	[(1)     keep on the business premises of the dealer,
	until the third anniversary of the date the report on the motor
	vehicle is submitted to the department, a record of the vehicle, its
	ownership, and its condition as dismantled, scrapped, or destroyed;
	and
	[(2)     present to the department, on the form prescribed
	by the department, evidence that the motor vehicle was dismantled,
	scrapped, or destroyed before the 61st day after the date the dealer
	completed the dismantling, scrapping, or destruction of the motor
	vehicle].
	SECTION 49.  Section 501.104, Transportation Code, is
	amended to read as follows:
	Sec. 501.104.  REBUILDER TO POSSESS TITLE OR OTHER
	DOCUMENTATION. (a) This section applies [only] to [:
	[(1)  a rebuilder licensed as a salvage vehicle dealer;
	[(2)]  a person engaged in repairing, rebuilding, or
	reconstructing more than five motor vehicles [the business of a
	rebuilder], regardless of whether the person is licensed to engage
	in that business [; or
	[(3)     a person engaged in the casual repair,
	rebuilding, or reconstruction of fewer than three motor vehicles in
	the same 12-month period].
	(b)  A person described by Subsection (a) must possess:
	(1)  an acceptable [a regular certificate of title,
	nonrepairable vehicle title, salvage vehicle title, or comparable
	out-of-state] ownership document or proof of ownership for any
	motor vehicle that is:
	(A)  owned by the person;
	(B)  in the person's inventory; and
	(C)  being offered for resale; or
	(2)  a contract entered into with the owner, a work
	order, or another document that shows the authority for the person
	to possess any motor vehicle that is:
	(A)  owned by another person;
	(B)  on the person's business or casual premises;
	and
	(C)  being repaired, rebuilt, or reconstructed
	for the other person.
	SECTION 50.  Section 501.105, Transportation Code, is
	redesignated as Section 501.108, Transportation Code, and amended
	to read as follows:
	Sec. 501.108  [501.105].  RECORD RETENTION [OF RECORDS
	RELATING TO CERTAIN CASUAL SALES].  (a)  Each licensed salvage
	vehicle dealer, used automotive parts recycler, or insurance
	company that sells a nonrepairable motor vehicle or a salvage motor
	vehicle at a casual sale shall keep on the business premises of the
	dealer or the insurance company a list of all casual sales made
	during the preceding 36-month period that contains:
	(1)  the date of the sale;
	(2)  the name of the purchaser;
	(3)  the name of the jurisdiction that issued the
	identification document provided by the purchaser, as shown on the
	document; and
	(4)  the vehicle identification number.
	(b)  A salvage vehicle dealer or used automotive parts
	recycler shall keep on the business premises of the dealer or
	recycler, until the third anniversary of the date the report on the
	motor vehicle is submitted to the department, a record of the
	vehicle, its ownership, and its condition as dismantled, scrapped,
	or destroyed as required by Section 501.1003.
	SECTION 51.  (a) Section 501.102, Transportation Code, is
	redesignated as Section 501.109, Transportation Code, and amended
	to read as follows:
	Sec. 501.109 [501.102].  OFFENSES. (a)  A person commits an
	offense if the person:
	(1)  applies to the department for a [regular
	certificate of] title for a motor vehicle; and
	(2)  knows or reasonably should know that:
	(A)  the vehicle is a nonrepairable motor vehicle
	that has been repaired, rebuilt, or reconstructed;
	(B)  the vehicle identification number assigned
	to the motor vehicle belongs to a nonrepairable motor vehicle that
	has been repaired, rebuilt, or reconstructed;
	(C)  the title issued to the motor vehicle belongs
	to a nonrepairable motor vehicle that has been repaired, rebuilt,
	or reconstructed;
	(D)  the vehicle identification number assigned
	to the motor vehicle belongs to an export-only motor vehicle;
	(E)  the motor vehicle is an export-only motor
	vehicle; or
	(F)  the motor vehicle is a nonrepairable motor
	vehicle or salvage motor vehicle for which a nonrepairable vehicle
	title, salvage vehicle title, or comparable ownership document
	issued by another state or jurisdiction has not been issued.
	(b)  A person commits an offense if the person knowingly
	sells, transfers, or releases a salvage motor vehicle in violation
	of this subchapter.
	(c)  A person commits an offense if the person knowingly
	fails or refuses to surrender a regular certificate of title after
	the person:
	(1)  receives a notice from an insurance company that
	the motor vehicle is a nonrepairable or salvage motor vehicle; or
	(2)  knows the vehicle has become a nonrepairable motor
	vehicle or salvage motor vehicle under Section 501.1001 [501.094].
	(d)  Except as provided by Subsection (e), an offense under
	this section is a Class C misdemeanor.
	(e)  If it is shown on the trial of an offense under this
	section that the defendant has been previously convicted of:
	(1)  one offense under this section, the offense is a
	Class B misdemeanor; or
	(2)  two or more offenses under this section, the
	offense is a state jail felony.
	(f)  Subsection (c) does not apply to an applicant for a
	title under Sections 501.10015 and 501.10025.
	(b)  The change in law made by this section applies only 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 on the date the offense was committed, and the
	former law is continued in effect for that purpose. For purposes of
	this subsection, an offense was committed before the effective date
	of this Act if any element of the offense occurred before that date.
	SECTION 52.  Section 501.106, Transportation Code, is
	redesignated as Section 501.110, Transportation Code, and amended
	to read as follows:
	Sec. 501.110 [501.106].  ENFORCEMENT OF SUBCHAPTER. (a)
	This subchapter shall be enforced by the department and any other
	governmental or law enforcement entity, including the Department of
	Public Safety, and the personnel of the entity as provided by this
	subchapter.
	(b)  The department, an agent, officer, or employee of the
	department, or another person enforcing this subchapter is not
	liable to a person damaged or injured by an act or omission relating
	to the issuance or revocation of a [regular certificate of] title,
	nonrepairable vehicle title, nonrepairable record of title, [or]
	salvage vehicle title, or salvage record of title under this
	subchapter.
	SECTION 53.  Section 501.111(a), Transportation Code, is
	amended to read as follows:
	(a)  Except as provided by Subsection (b), a person may
	perfect a security interest in a motor vehicle that is the subject
	of a first or subsequent sale only by recording the security
	interest on the [certificate of] title as provided by this chapter.
	SECTION 54.  Section 501.113, Transportation Code, is
	amended to read as follows:
	Sec. 501.113.  RECORDATION OF SECURITY INTEREST.  (a)
	Recordation of a lien under this chapter is considered to occur
	when:
	(1)  the department's titling system is updated; or
	(2)  the county assessor-collector [:
	[(1)     is presented with an application for a
	certificate of title that discloses the lien with tender of the
	filing fee; or
	[(2)]  accepts the application of title that discloses
	the lien with the filing fee.
	(b)  For purposes of Chapter 9, Business & Commerce Code, the
	time of recording a lien under this chapter is considered to be the
	time of filing the security interest, and on such recordation, the
	recorded lienholder and assignees under Section 501.114 obtain
	priority over the rights of a lien creditor, as defined by Section
	9.102, Business & Commerce Code, for so long as the lien is recorded
	on the [certificate of] title.
	SECTION 55.  Sections 501.114(b), (d), (e), (f), and (g),
	Transportation Code, are amended to read as follows:
	(b)  An assignee or assignor may, but need not to retain the
	validity, perfection, and priority of the lien assigned, as
	evidence of the assignment of a lien recorded under Section
	501.113:
	(1)  apply  to the county assessor-collector for the
	assignee to be named as lienholder on the [certificate of] title;
	and
	(2)  notify  the debtor of the assignment.
	(d)  An application under Subsection (b) must be
	acknowledged[:
	[(1)  signed] by the assignee[; and
	[(2)  accompanied by:
	[(A)  the applicable fee;
	[(B)     a copy of the assignment agreement executed
	by the parties; and
	[(C)     the certificate of title on which the lien
	to be assigned is recorded].
	(e)  On receipt of the completed application and fee, the
	department may:
	(1)  [may] amend the department's records to substitute
	the assignee for the recorded lienholder; and
	(2)  [shall] issue a new [certificate of] title as
	provided by this chapter [Section 501.027].
	(f)  The issuance of a [certificate of] title under
	Subsection (e) is recordation of the assignment.
	(g)  Regardless of whether application is made for the
	assignee to be named as lienholder on the [certificate of] title,
	the time of the recordation of a lien assigned under this section is
	considered to be the time the lien was initially recorded under
	Section 501.113.
	SECTION 56.  Section 501.115, Transportation Code, is
	amended to read as follows:
	Sec. 501.115.  DISCHARGE OF LIEN. (a) When a debt or claim
	secured by a lien has been satisfied, the lienholder shall, within a
	reasonable time not to exceed the maximum time allowed by Section
	348.408, Finance Code, execute and deliver to the owner, or the
	owner's designee, a discharge of the lien in [on] a manner [form]
	prescribed by the department.
	(b)  The owner may submit [present] the discharge and
	[certificate of] title to the department for [county
	assessor-collector with an application for a new certificate of
	title and the department shall issue] a new [certificate of] title.
	SECTION 57.  Section 501.116, Transportation Code, is
	amended to read as follows:
	Sec. 501.116.  CANCELLATION OF DISCHARGED LIEN. The
	department may cancel a discharged lien that has been recorded on a
	[certificate of] title for 10 [six] years or more if the recorded
	lienholder:
	(1)  does not exist; or
	(2)  cannot be located for the owner to obtain a release
	of the lien.
	SECTION 58.  Section 501.117, Transportation Code, is
	amended by amending Subsection (a) and adding Subsections (d),
	(d-1), (d-2), (e), and (f) to read as follows:
	(a)  The department by rule shall develop a system under
	which a security interest in a motor vehicle may be perfected,
	assigned, discharged, and canceled electronically instead of by
	record maintained on a certificate of title. The department may
	establish categories of lienholders that may participate in the
	system and, except as provided by this section, may require a
	lienholder to participate in the system [Participation by a
	lienholder in the system is voluntary].
	(d)  The department may not require a depository
	institution, as defined by Section 180.002, Finance Code, to
	participate in the system if the department has issued fewer than
	100 notifications of security interests in motor vehicles to the
	depository institution during a calendar year.
	(d-1)  The department may not require a depository
	institution, as defined by Section 180.002, Finance Code, to
	participate in the system:
	(1)  during 2011, if the department issues fewer than
	200 notifications of security interests in motor vehicles to the
	depository institution between September 1, 2011, and December 31,
	2011; and
	(2)  during 2012, if the depository institution was
	exempt under Subdivision (1) and the department issues fewer than
	200 notifications of security interests in motor vehicles to the
	depository institution in 2012.
	(d-2)  This subsection and Subsection (d-1) expire January
	1, 2013.
	(e)  The department by rule shall establish a reasonable
	schedule for compliance with the requirements of Subsection (a) for
	each category of lienholder that the department requires to
	participate in the system.
	(f)  The department may not:
	(1)  prohibit a lienholder from using an intermediary
	to access the system; or
	(2)  require a lienholder to use an intermediary to
	access the system.
	SECTION 59.  Sections 501.134(a), (b), (c), (d), and (g),
	Transportation Code, are amended to read as follows:
	(a)  If a printed [certificate of] title is lost or
	destroyed, the owner or lienholder disclosed on the title
	[certificate] may obtain, in the manner provided by this section
	and department rule, a certified copy of the lost or destroyed
	[certificate of] title directly from the department by applying in
	[on] a manner [form] prescribed by the department and paying a fee
	of $2. A fee collected under this subsection shall be deposited to
	the credit of the state highway fund and may be spent only as
	provided by Section 501.138.
	(b)  If a lien is disclosed on a [certificate of] title, the
	department may issue a certified copy of the original [certificate
	of] title only to the first lienholder or the lienholder's verified
	agent.
	(c)  The department must plainly mark "certified copy" on the
	face of a certified copy issued under this section [, and each
	subsequent certificate issued for the motor vehicle until the
	vehicle is transferred]. A subsequent purchaser or lienholder of
	the vehicle only acquires the rights, title, or interest in the
	vehicle held by the holder of the certified copy.
	(d)  A purchaser or lienholder of a motor vehicle having a
	certified copy issued under this section may at the time of the
	purchase or establishment of the lien require that the seller or
	owner indemnify the purchaser or lienholder and all subsequent
	purchasers of the vehicle against any loss the person may suffer
	because of a claim presented on the original [certificate of]
	title.
	(g)  The department may issue a certified copy of a
	[certificate of] title [before the fourth business day after the
	date application is made] only if the applicant:
	(1)  is the registered owner of the vehicle, the holder
	of a recorded lien against the vehicle, or a verified agent of the
	owner or lienholder; and
	(2)  submits personal identification as required by
	department rule[, including a photograph, issued by an agency of
	this state or the United States].
	SECTION 60.  Section 501.135(a), Transportation Code, is
	amended to read as follows:
	(a)  The department shall:
	(1)  make a record of each report to the department that
	a motor vehicle registered in this state has been stolen or
	concealed in violation of Section 32.33, Penal Code; and
	(2)  note the fact of the report in the department's
	records [of the vehicle's certificate of title].
	SECTION 61.  Sections 501.138(a), (b), and (b-1),
	Transportation Code, are amended to read as follows:
	(a)  An applicant for a [certificate of] title, other than
	the state or a political subdivision of the state, must pay [the
	county assessor-collector] a fee of:
	(1)  $33 if the applicant's residence is a county
	located within a nonattainment area as defined under Section 107(d)
	of the federal Clean Air Act (42 U.S.C. Section 7407), as amended,
	or is an affected county, as defined by Section 386.001, Health and
	Safety Code; or
	(2)  $28 if the applicant's residence is any other
	county.
	(b)  The fees [county assessor-collector] shall be
	distributed as follows [send]:
	(1)  $5 of the fee to the county treasurer for deposit
	in the officers' salary fund;
	(2)  $8 of the fee to the department:
	(A)  together with the application within the time
	prescribed by Section 501.023; or
	(B)  if the fee is deposited in an
	interest-bearing account or certificate in the county depository or
	invested in an investment authorized by Subchapter A, Chapter 2256,
	Government Code, not later than the 35th day after the date on which
	the fee is received; and
	(3)  the following amount to the comptroller at the
	time and in the manner prescribed by the comptroller:
	(A)  $20 of the fee if the applicant's residence
	is a county located within a nonattainment area as defined under
	Section 107(d) of the federal Clean Air Act (42 U.S.C. Section
	7407), as amended, or is an affected county, as defined by Section
	386.001, Health and Safety Code; or
	(B)  $15 of the fee if the applicant's residence
	is any other county.
	(b-1)  Fees collected under Subsection (b) to be sent to the
	comptroller shall be deposited [as follows:
	[(1)     before September 1, 2008, to the credit of the
	Texas emissions reduction plan fund; and
	[(2)  on or after September 1, 2008,] to the credit of
	the Texas Mobility Fund, except that $5 of each fee imposed under
	Subsection (a)(1) and deposited on or after September 1, 2008, and
	before September 1, 2015, shall be deposited to the credit of the
	Texas emissions reduction plan fund.
	SECTION 62.  Section 520.031, Transportation Code, as
	amended by Chapters 836 (H.B. 1743) and 1423 (H.B. 2409), Acts of
	the 76th Legislature, Regular Session, 1999, is transferred to
	Subchapter H, Chapter 501, Transportation Code, redesignated as
	Section 501.145, Transportation Code, and reenacted and amended to
	read as follows:
	Sec. 501.145 [520.031].  FILING BY PURCHASER [TRANSFEREE];
	APPLICATION FOR TRANSFER OF TITLE [AND REGISTRATION].  (a)  Not
	later than the later of the 30th [20th working] day after the date
	of assignment on [receiving] the documents or the date provided by
	Section 152.069, Tax Code [under Section 520.022 or 520.0225], the
	purchaser [transferee] of the used motor vehicle shall file with
	the county assessor-collector:
	(1)  [the license receipt and] the certificate of title
	or other evidence of title; or
	(2)  if appropriate, a document described by Section
	502.457 [520.0225(b)(1) or (2)] and the [certificate of] title or
	other evidence of ownership [title].
	(b)  The filing under Subsection (a) is an application for
	transfer of title as required under this chapter [Chapter 501] and
	[, if the license receipt is filed,] an application for transfer of
	the registration of the motor vehicle.
	(c)  [In this section, "working day" means any day other than
	a Saturday, a Sunday, or a holiday on which county offices are
	closed.
	[(d)]  Notwithstanding Subsection (a), if the purchaser
	[transferee] is a member of the armed forces of the United States, a
	member of the Texas National Guard or of the National Guard of
	another state serving on active duty under an order of the president
	of the United States, or a member of a reserve component of the
	armed forces of the United States serving on active duty under an
	order of the president of the United States, the documents
	described by Subsection (a) must be filed with the county
	assessor-collector not later than the 60th [working] day after the
	date of assignment of ownership [their receipt by the transferee].
	SECTION 63.  Section 520.032, Transportation Code, is
	transferred to Subchapter H, Chapter 501, Transportation Code,
	redesignated as Section 501.146, Transportation Code, and amended
	to read as follows:
	Sec. 501.146 [520.032].  TITLE TRANSFER [FEE]; LATE FEE.
	(a)  [The transferee of a used motor vehicle shall pay, in addition
	to any fee required under Chapter 501 for the transfer of title, a
	transfer fee of $2.50 for the transfer of the registration of the
	motor vehicle.
	[(b)]  If the [transferee does not file the] application for
	the transfer of title is not filed during the period provided by
	Section 501.145, the [520.031, the transferee is liable for a] late
	fee is to be paid to the county assessor-collector when the
	application is filed.  If the seller [transferee] holds a general
	distinguishing number issued under Chapter 503 of this code or
	Chapter 2301, Occupations Code, the seller is liable for the late
	fee in the amount of [the late fee is] $10.  If the seller
	[transferee] does not hold a general distinguishing number, subject
	to Subsection (b) [(b-1)] the applicant's [amount of the] late fee
	is $25.
	(b) [(b-1)]  If the application is filed after the 60th [31st
	working] day after the date the purchaser was assigned ownership of
	[transferee received] the documents under Section 501.0721
	[520.022], the late fee imposed under Subsection (a) [(b)] accrues
	an additional penalty in the amount of $25 for each subsequent
	30-day period, or portion of a 30-day period, in which the
	application is not filed.
	(c)  [The county assessor-collector and the surety on the
	county assessor-collector's bond are liable for the late fee if the
	county assessor-collector does not collect the late fee.
	[(d)]  Subsections (a) and (b) [and (b-1)] do not apply if
	the motor vehicle is eligible to be issued:
	(1)  classic vehicle license plates under Section
	504.501; or
	(2)  antique vehicle license plates under Section
	504.502.
	SECTION 64.  Section 520.023, Transportation Code, is
	transferred to Subchapter H, Chapter 501, Transportation Code,
	redesignated as Section 501.147, Transportation Code, and amended
	to read as follows:
	Sec. 501.147 [520.023].  [POWERS AND DUTIES OF DEPARTMENT ON
	TRANSFER OF USED] VEHICLE TRANSFER NOTIFICATION. (a)  On receipt of
	a written notice of transfer from the seller [transferor] of a motor
	vehicle, the department shall indicate the transfer on the motor
	vehicle records maintained by the department.  As an alternative to
	a written notice of transfer, the department shall establish
	procedures that permit the seller [transferor] of a motor vehicle
	to electronically submit a notice of transfer to the department
	through the department's Internet website.  A notice of transfer
	provided through the department's Internet website is not required
	to bear the signature of the seller [transferor] or include the date
	of signing.
	(b)  [The department may design the written notice of
	transfer to be part of the certificate of title for the vehicle.]
	The notice of transfer [form] shall be provided by the department
	and must include a place for the seller [transferor] to state:
	(1)  a complete description of the vehicle as
	prescribed by the department [identification number of the
	vehicle];
	(2)  [the number of the license plate issued to the
	vehicle, if any;
	[(3)]  the full name and address of the seller
	[transferor];
	(3) [(4)]  the full name and address of the purchaser
	[transferee];
	(4) [(5)]  the date the seller [transferor] delivered
	possession of the vehicle to the purchaser [transferee];
	(5) [(6)]  the signature of the seller [transferor];
	and
	(6) [(7)]  the date the seller [transferor] signed the
	form.
	(c)  This subsection applies only if the department receives
	notice under Subsection (a) before the 30th day after the date the
	seller [transferor] delivered possession of the vehicle to the
	purchaser or in accordance with Section 152.069, Tax Code
	[transferee].  After the date of the transfer of the vehicle shown
	on the records of the department, the purchaser [transferee] of the
	vehicle shown on the records is rebuttably presumed to be:
	(1)  the owner of the vehicle; and
	(2)  subject to civil and criminal liability arising
	out of the use, operation, or abandonment of the vehicle, to the
	extent that ownership of the vehicle subjects the owner of the
	vehicle to criminal or civil liability under another provision of
	law.
	(d)  The department may adopt[:
	[(1)]  rules to implement this section [; and
	[(2)     a fee for filing a notice of transfer under this
	section in an amount not to exceed the lesser of the actual cost to
	the department of implementing this section or $5].
	(e)  This section does not impose or establish civil or
	criminal liability on the owner of a motor vehicle who transfers
	ownership of the vehicle but does not disclose the transfer to the
	department.
	(f)  [This section does not require the department to issue a
	certificate of title to a person shown on a notice of transfer as
	the transferee of a motor vehicle.] The department may not issue a
	[certificate of] title or register [for] the vehicle until the
	purchaser [transferee] applies for a title to the county
	assessor-collector as provided by this chapter [Chapter 501].
	(g)  A transferor who files the appropriate form with the
	department as provided by, and in accordance with, this section,
	whether that form is a part of a [certificate of] title or a form
	otherwise promulgated by the department to comply with the terms of
	this section, has no vicarious civil or criminal liability arising
	out of the use, operation, or abandonment of the vehicle by another
	person.  Proof by the transferor that the transferor filed a form
	under this section is a complete defense to an action brought
	against the transferor for an act or omission, civil or criminal,
	arising out of the use, operation, or abandonment of the vehicle by
	another person after the transferor filed the form.  A copy of the
	form filed under this section is proof of the filing of the form.
	SECTION 65.  Section 520.033, Transportation Code, is
	transferred to Subchapter H, Chapter 501, Transportation Code,
	redesignated as Section 501.148, Transportation Code, and amended
	to read as follows:
	Sec. 501.148 [520.033].  ALLOCATION OF FEES. (a)  The
	county assessor-collector may retain as commission for services
	provided under this subchapter [half of each transfer fee
	collected,] half of each late fee[, and half of each additional
	penalty collected under Section 520.032].
	(b)  The county assessor-collector shall report and remit
	the balance of the fees collected to the department on Monday of
	each week as other [registration] fees are required to be reported
	and remitted.
	(c)  Of each late fee collected from a person who does not
	hold a general distinguishing number by [that] the department
	[receives] under Subsection (b), $10 may be used only to fund a
	statewide public awareness campaign designed to inform and educate
	the public about the provisions of this chapter.
	SECTION 66.  Section 501.152(b), Transportation Code, is
	amended to read as follows:
	(b)  It is not a violation of this section for the beneficial
	owner of a vehicle to sell or offer to sell a vehicle without having
	possession of the [certificate of] title to the vehicle if the sole
	reason he or she does not have possession of the [certificate of]
	title is that the title is in the possession of a lienholder who has
	not complied with the terms of Section 501.115(a) [of this code].
	SECTION 67.  Section 501.153, Transportation Code, is
	amended to read as follows:
	Sec. 501.153.  APPLICATION FOR TITLE FOR STOLEN OR CONCEALED
	VEHICLE. A person commits an offense if the person applies for a
	[certificate of] title for a motor vehicle that the person knows is
	stolen or concealed in violation of Section 32.33, Penal Code.
	SECTION 68.  Section 501.154, Transportation Code, is
	amended to read as follows:
	Sec. 501.154.  ALTERATION OF CERTIFICATE OR RECEIPT. A
	person commits an offense if the person alters a manufacturer's [or
	importer's] certificate, a title receipt, or a [certificate of]
	title.
	SECTION 69.  Section 501.155(a), Transportation Code, is
	amended to read as follows:
	(a)  A person commits an offense if the person knowingly
	provides false or incorrect information or without legal authority
	signs the name of another person on:
	(1)  an application for a [certificate of] title;
	(2)  an application for a certified copy of an original
	[certificate of] title;
	(3)  an assignment of title for a motor vehicle;
	(4)  a discharge of a lien on a title for a motor
	vehicle; or
	(5)  any other document required by the department or
	necessary to the transfer of ownership of a motor vehicle.
	SECTION 70.  The heading to Section 501.158, Transportation
	Code, is amended to read as follows:
	Sec. 501.158.  SEIZURE OF STOLEN VEHICLE OR VEHICLE WITH
	ALTERED VEHICLE IDENTIFICATION [SERIAL] NUMBER.
	SECTION 71.  Section 520.035, Transportation Code, is
	transferred to Subchapter H, Chapter 501, Transportation Code,
	redesignated as Section 501.161, Transportation Code, and amended
	to read as follows:
	Sec. 501.161 [520.035].  EXECUTION OF TRANSFER DOCUMENTS;
	PENALTY. (a)  A person who transfers a motor vehicle in this state
	shall complete [execute] in full and date as of the date of the
	transfer all documents relating to the transfer of registration or
	[certificate of] title. A person who transfers a vehicle commits an
	offense if the person fails to execute the documents in full.
	(b)  A person commits an offense if the person:
	(1)  accepts a document described by Subsection (a)
	that does not contain all of the required information; or
	(2)  alters or mutilates such a document.
	(c)  An offense under this section is a misdemeanor
	punishable by a fine of not less than $50 and not more than $200.
	SECTION 72.  Subchapter H, Chapter 501, Transportation Code,
	is amended by adding Sections 501.162 and 501.163 to read as
	follows:
	Sec. 501.162. MOTOR NUMBER REQUIRED FOR REGISTRATION;
	PENALTY. A person commits an offense if the person violates Section
	501.0331. An offense under this section is a misdemeanor
	punishable by a fine of not less than $50 and not more than $100.
	Sec. 501.163.  APPLICATION FOR MOTOR NUMBER RECORD; PENALTY.
	A person who fails to comply with Section 501.0332 commits an
	offense. An offense under this section is a misdemeanor punishable
	by a fine of not less than $10 and not more than $100.
	SECTION 73.  Chapter 501, Transportation Code, is amended by
	adding Subchapter I to read as follows:
	SUBCHAPTER I. ELECTRONIC TITLING SYSTEM
	Sec. 501.171.  APPLICATION OF SUBCHAPTER. This subchapter
	applies only if the department implements a titling system under
	Section 501.173.
	Sec. 501.172.  DEFINITIONS. In this subchapter:
	(1)  "Document" means information that is inscribed on
	a tangible medium or that is stored in an electronic or other medium
	and is retrievable in perceivable form.
	(2)  "Electronic" means relating to technology having
	electrical, digital, magnetic, wireless, optical, electromagnetic,
	or similar capabilities.
	(3)  "Electronic document" means a document that is in
	an electronic form.
	(4)  "Electronic signature" means an electronic sound,
	symbol, or process attached to or logically associated with a
	document and executed or adopted by a person with the intent to sign
	the document.
	(5)  "Paper document" means a document that is in
	printed form.
	Sec. 501.173.  ELECTRONIC TITLING SYSTEM. (a) The board by
	rule may implement an electronic titling system.
	(b)  A record of title maintained electronically by the
	department in the titling system is the official record of vehicle
	ownership unless the owner requests that the department issue a
	printed title.
	Sec. 501.174.  VALIDITY OF ELECTRONIC DOCUMENTS. (a)  If
	this chapter requires that a document be an original, be on paper or
	another tangible medium, or be in writing, the requirement is met by
	an electronic document that complies with this subchapter.
	(b)  If a law requires that a document be signed, the
	requirement is satisfied by an electronic signature.
	(c)  A requirement that a document or a signature associated
	with a document be notarized, acknowledged, verified, witnessed, or
	made under oath is satisfied if the electronic signature of the
	person authorized to perform that act, and all other information
	required to be included, is attached to or logically associated
	with the document or signature. A physical or electronic image of a
	stamp, impression, or seal is not required to accompany an
	electronic signature.
	Sec. 501.175.  RECORDING OF DOCUMENTS. (a) Under the
	titling system, the department may:
	(1)  receive, index, store, archive, and transmit
	electronic documents;
	(2)  provide for access to, and for search and
	retrieval of, documents and information by electronic means; and
	(3)  convert into electronic form:
	(A)  paper documents that it accepts for the
	titling of a motor vehicle; and
	(B)  information recorded and documents that were
	accepted for the titling of a motor vehicle before the titling
	system was implemented.
	(b)  The department shall continue to accept paper documents
	after the titling system is implemented.
	Sec. 501.176.  PAYMENT OF FEES BY ELECTRONIC FUNDS TRANSFER
	OR CREDIT CARD. (a) The department may accept payment by
	electronic funds transfer, credit card, or debit card of any title
	or registration fee that the department is required or authorized
	to collect under this chapter.
	(b)  The department may collect a fee for processing a title
	or registration payment by electronic funds transfer, credit card,
	or debit card. The amount of the fee must not exceed the charges
	incurred by the state because of the use of the electronic funds
	transfer, credit card, or debit card.
	(c)  For online transactions the department may collect from
	a person making payment by electronic funds transfer, credit card,
	or debit card an amount equal to any fee charged in accordance with
	Section 2054.2591, Government Code.
	Sec. 501.177.  SERVICE CHARGE. If, for any reason, the
	payment of a fee under this chapter by electronic funds transfer,
	credit card, or debit card is not honored by the funding
	institution, or by the electronic funds transfer, credit card, or
	debit card company on which the funds are drawn, the department may
	collect from the person who owes the fee being collected a service
	charge that is for the collection of that original amount and is in
	addition to the original fee. The amount of the service charge must
	be reasonably related to the expense incurred by the department in
	collecting the original amount.
	Sec. 501.178.  DISPOSITION OF FEES. All fees collected
	under this subchapter shall be deposited to the credit of the state
	highway fund.
	Sec. 501.179.  RELATION TO ELECTRONIC SIGNATURES IN GLOBAL
	AND NATIONAL COMMERCE ACT. This subchapter modifies, limits, and
	supersedes the federal Electronic Signatures in Global and National
	Commerce Act (15 U.S.C. Section 7001 et seq.) but does not modify,
	limit, or supersede Section 101(c) of that Act (15 U.S.C. Section
	7001(c)) or authorize electronic delivery of any of the notices
	described in Section 103(b) of that Act (15 U.S.C. Section
	7003(b)).
	SECTION 74.  Section 502.001, Transportation Code, is
	amended to read as follows:
	Sec. 502.001.  DEFINITIONS. In this chapter:
	(1)  "All-terrain vehicle" means a motor vehicle that
	is:
	(A)  equipped with a saddle for the use of:
	(i)  the rider; and
	(ii)  a passenger, if the motor vehicle is
	designed by the manufacturer to transport a passenger;
	(B)  designed to propel itself with three or more
	tires in contact with the ground;
	(C)  designed by the manufacturer for off-highway
	use; and
	(D)  not designed by the manufacturer primarily
	for farming or lawn care.
	(2)  "Apportioned license plate" means a license plate
	issued in lieu of a truck license plate or combination license plate
	to a motor carrier in this state who proportionally registers a
	vehicle owned or leased by the carrier in one or more other states.
	(3) [(1-a)]  "Board" means the board of the Texas
	Department of Motor Vehicles.
	(4)  "Combination license plate" means a license plate
	issued for a truck or truck-tractor that is used or intended to be
	used in combination with a semitrailer that has a gross weight of
	more than 6,000 pounds.
	(5)  "Combined gross weight" means the empty weight of
	the truck-tractor or commercial motor vehicle combined with the
	empty weight of the heaviest semitrailer used or to be used in
	combination with the truck-tractor or commercial motor vehicle plus
	the heaviest net load to be carried on the combination during the
	registration year.
	(6) [(1-a)]  "Commercial fleet" means a group of at
	least 25 nonapportioned motor vehicles, semitrailers, or trailers
	owned, operated, or leased by a corporation, limited or general
	partnership, limited liability company, or other business entity
	and used for the business purposes of that entity.
	(7) [(2)]  "Commercial motor vehicle" means a
	commercial motor vehicle as defined by Section 644.001[, other than
	a motorcycle, designed or used primarily to transport property.
	The term includes a passenger car reconstructed and used primarily
	for delivery purposes. The term does not include a passenger car
	used to deliver the United States mail].
	(8)  "Construction machinery" means a vehicle that:
	(A)  is used for construction;
	(B)  is built from the ground up;
	(C)  is not mounted or affixed to another vehicle
	such as a trailer;
	(D)  was originally and permanently designed as
	machinery;
	(E)  was not in any way originally designed to
	transport persons or property; and
	(F)  does not carry a load, including fuel.
	(9)  "Credit card" has the meaning assigned by Section
	501.002.
	(10)  "Debit card" has the meaning assigned by Section
	501.002.
	(11) [(3)]  "Department" means the Texas Department of
	Motor Vehicles.
	(12)  "Electric bicycle" has the meaning assigned by
	Section 541.201.
	(13)  "Electric personal assistive mobility device"
	has the meaning assigned by Section 551.201.
	(14)  "Empty weight" means the unladen weight of a
	truck-tractor or commercial motor vehicle and semitrailer
	combination fully equipped, as certified by a public weigher or
	license and weight inspector of the Department of Public Safety.
	(15) [(4)]  "Farm semitrailer" or "farm trailer" means
	a vehicle [semitrailer] designed and used primarily as a farm
	vehicle.
	(16) [(5)]  "Farm tractor" has the meaning assigned by
	Section 541.201 [means a motor vehicle designed and used primarily
	as a farm implement for drawing other implements of husbandry].
	(17)  "Forestry vehicle" [(6) "Farm trailer"] means a
	vehicle [trailer] designed and used exclusively for transporting
	forest products in their natural state, including logs, debarked
	logs, untreated ties, stave bolts, plywood bolts, pulpwood billets,
	wood chips, stumps, sawdust, moss, bark, and wood shavings, and
	property used in production of those products [primarily as a farm
	vehicle].
	(18) [(7)]  "Golf cart" means a motor vehicle designed
	by the manufacturer primarily for use [transporting persons] on a
	golf course.
	(19)  "Gross vehicle weight" has the meaning assigned
	by Section 541.401.
	(20) [(8)]  "Implements of husbandry" has the meaning
	assigned by Section 541.201 [means farm implements, machinery, and
	tools as used in tilling the soil, including self-propelled
	machinery specifically designed or adapted for applying plant food
	materials or agricultural chemicals but not specifically designed
	or adapted for the sole purpose of transporting the materials or
	chemicals. The term does not include a passenger car or truck].
	(21) [(9)]  "Light truck" has the meaning assigned by
	Section 541.201 [means a commercial motor vehicle that has a
	manufacturer's rated carrying capacity of one ton or less].
	(22) [(10)]  "Moped" has the meaning assigned by
	Section 541.201.
	(23) [(11)]  "Motor bus" includes every vehicle used to
	transport persons on the public highways for compensation, other
	than:
	(A)  a vehicle operated by muscular power; or
	(B)  a municipal bus.
	(24) [(12)]  "Motorcycle" has the meaning assigned by
	Section 521.001 or 541.201, as applicable [means a motor vehicle
	designed to propel itself with not more than three wheels in contact
	with the ground. The term does not include a tractor].
	(25) [(13)]  "Motor vehicle" means a vehicle that is
	self-propelled.
	(26)  "Motorized mobility device" has the meaning
	assigned by Section 542.009.
	(27) [(14)]  "Municipal bus" includes every vehicle,
	other than a passenger car, used to transport persons for
	compensation exclusively within the limits of a municipality or a
	suburban addition to the municipality.
	(28)  "Net carrying capacity" means the heaviest net
	load that is able to be carried on a vehicle, but not less than the
	manufacturer's rated carrying capacity.
	(29)  "Oil well servicing, cleanout, or drilling
	machinery":
	(A)  has the meaning assigned by Section 623.149;
	or
	(B)  means a mobile crane:
	(i)  that is an unladen, self-propelled
	vehicle constructed as a machine and used solely to raise, shift, or
	lower heavy weights by means of a projecting, swinging mast with an
	engine for power on a chassis permanently constructed or assembled
	for that purpose; and
	(ii)  for which the owner has secured a
	permit from the department under Section 623.142.
	(30) [(15)]  "Operate temporarily on the highways"
	means to travel between:
	(A)  different farms;
	(B)  a place of supply or storage and a farm; or
	(C)  an owner's farm and the place at which the
	owner's farm produce is prepared for market or is marketed.
	(31) [(16)]  "Owner" means a person who:
	(A)  holds the legal title of a vehicle;
	(B)  has the legal right of possession of a
	vehicle; or
	(C)  has the legal right of control of a vehicle.
	(32) [(17)]  "Passenger car" has the meaning assigned
	by Section 541.201 [means a motor vehicle, other than a motorcycle,
	golf cart, light truck, or bus, designed or used primarily for the
	transportation of persons].
	(33)  "Power sweeper" means an implement, with or
	without motive power, designed for the removal by a broom, vacuum,
	or regenerative air system of debris, dirt, gravel, litter, or sand
	from asphaltic concrete or cement concrete surfaces, including
	surfaces of parking lots, roads, streets, highways, and warehouse
	floors. The term includes a vehicle on which the implement is
	permanently mounted if the vehicle is used only as a power sweeper.
	(34)  "Private bus" means a bus that:
	(A)  is not operated for hire; and
	(B)  is not a municipal bus or a motor bus.
	(35) [(18)]  "Public highway" includes a road, street,
	way, thoroughfare, or bridge:
	(A)  that is in this state;
	(B)  that is for the use of vehicles;
	(C)  that is not privately owned or controlled;
	and
	(D)  over which the state has legislative
	jurisdiction under its police power.
	(36) [(19)]  "Public property" means property owned or
	leased by this state or a political subdivision of this state.
	(37)  [(19-a)]  "Recreational off-highway vehicle"
	means a motor vehicle that is:
	(A)  equipped with a non-straddle seat for the use
	of:
	(i)  the rider; and
	(ii)  a passenger, if the vehicle is
	designed by the manufacturer to transport a passenger;
	(B)  designed to propel itself with four or more
	tires in contact with the ground;
	(C)  designed by the manufacturer for off-highway
	use by the operator only; and
	(D)  not designed by the manufacturer primarily
	for farming or lawn care.
	(38) [(20)]  "Road tractor" means a vehicle designed
	for the purpose of mowing the right-of-way of a public highway or a
	motor vehicle designed or used for drawing another vehicle or a load
	and not constructed to carry:
	(A)  an independent load; or
	(B)  a part of the weight of the vehicle and load
	to be drawn.
	(39) [(21)]  "Semitrailer" means a vehicle designed or
	used with a motor vehicle so that part of the weight of the vehicle
	and its load rests on or is carried by another vehicle.
	(40)  "Token trailer" means a semitrailer that:
	(A)  has a gross weight of more than 6,000 pounds;
	and
	(B)  is operated in combination with a truck or a
	truck-tractor that has been issued:
	(i)  an apportioned license plate;
	(ii)  a combination license plate; or
	(iii)  a forestry vehicle license plate.
	(41)  "Tow truck" means a motor vehicle adapted or used
	to tow, winch, or otherwise move another motor vehicle.
	(42) [(22)]  "Trailer" means a vehicle that:
	(A)  is designed or used to carry a load wholly on
	its own structure; and
	(B)  is drawn or designed to be drawn by a motor
	vehicle.
	(43)  "Travel trailer" has the meaning assigned by
	Section 501.002.
	(44) [(23)]  "Truck-tractor" means a motor vehicle:
	(A)  designed and used primarily for drawing
	another vehicle; and
	(B)  not constructed to carry a load other than a
	part of the weight of the vehicle and load to be drawn.
	(45) [(24)]  "Vehicle" means a device in or by which a
	person or property is or may be transported or drawn on a public
	highway, other than a device used exclusively on stationary rails
	or tracks.
	SECTION 75.  Section 502.0021, Transportation Code, is
	amended to read as follows:
	Sec. 502.0021.  RULES AND FORMS.  (a)  The department may
	adopt rules to administer this chapter.
	(b)  The department shall post forms on the Internet and[:
	[(1)     prescribe forms determined by the department to
	be necessary for the administration of this chapter; and
	[(2)]  provide each county assessor-collector with a
	sufficient [an adequate] supply of any [each form] necessary forms
	on request [for the performance of a duty under this chapter by the
	assessor-collector].
	SECTION 76.  Subchapter A, Chapter 502, Transportation Code,
	is amended by adding Section 502.011 to read as follows:
	Sec. 502.011.  REFUSAL TO REGISTER VEHICLE FOR NONPAYMENT OF
	TOLL OR ADMINISTRATIVE FEE. (a) The board shall adopt rules, with
	input from county assessor-collectors and toll project entities, to
	require the county assessor-collector and the department to refuse
	to register a motor vehicle if the motor vehicle is the subject of a
	past due toll or administrative fee owed to a toll project entity.
	The board's rules may include a time frame for implementation of the
	refusal process and a requirement for a toll project entity to enter
	into a contract with the department that includes:
	(1)  information necessary to determine that a toll or
	fee is past due;
	(2)  notification that the registration may be
	reinstated because of:
	(A)  payment or other means of discharge of the
	past due toll or fee; or
	(B)  perfection of an appeal following conviction
	of an offense related to the nonpayment of a toll, if applicable;
	(3)  compensation to the department or the county for
	reasonable expenses associated with providing services under the
	contract; and
	(4)  a time period when the toll or fee is considered
	past due.
	(b)  This section does not apply to the registration of a
	motor vehicle under Section 501.0234, unless the vehicle is titled
	and registered in the name of a person who holds a general
	distinguishing number.
	(c)  For purposes of this section "toll project entity" has
	the meaning assigned by Section 372.001, but does not include a
	county operating under Chapter 284 unless the commissioners court
	of the county adopts an order expressly electing to have this
	section apply to the county.
	SECTION 77.  Section 502.052, Transportation Code, is
	transferred to Subchapter A, Chapter 502, Transportation Code,
	redesignated as Section 502.00211, Transportation Code, and
	amended to read as follows:
	Sec. 502.00211 [502.052].  DESIGN OF [LICENSE PLATES AND]
	REGISTRATION INSIGNIA[; REFLECTORIZED MATERIAL]. [(a)] The
	department shall prepare the designs and specifications [of license
	plates and devices selected by the board] to be used as the
	registration insignia.
	[(b)     The department shall design each license plate to
	include a design at least one-half inch wide that represents in
	silhouette the shape of Texas and that appears between letters and
	numerals. The department may omit the silhouette of Texas from
	specially designed license plates.
	[(c)     To promote highway safety, each license plate shall be
	made with a reflectorized material that provides effective and
	dependable brightness for the period for which the plate is
	issued.     The purchase of reflectorized material shall be submitted
	to the comptroller for approval.]
	SECTION 78.  The heading to Section 502.0023, Transportation
	Code, is amended to read as follows:
	Sec. 502.0023.  EXTENDED REGISTRATION OF COMMERCIAL FLEET
	[MOTOR] VEHICLES.
	SECTION 79.  Section 502.0023, Transportation Code, is
	amended by amending Subsections (a) and (c) and adding Subsection
	(i) to read as follows:
	(a)  Notwithstanding Section 502.044(c) [502.158(c)], the
	department shall develop and implement a system of registration to
	allow an owner of a commercial fleet to register the motor vehicles,
	semitrailers, and trailers in the commercial fleet for an extended
	registration period of not less than one year or more than eight
	years.  The owner may select the number of years for registration
	under this section within that range and register the commercial
	fleet for that period.  Payment for all registration fees for the
	entire registration period selected is due at the time of
	registration.
	(c)  In addition to the registration fees prescribed by this
	chapter [Subchapter D], an owner registering a commercial fleet
	under this section shall pay:
	(1)  an annual commercial fleet registration fee of $10
	per motor vehicle, semitrailer, or trailer in the fleet; and
	(2)  except as provided by Subsection (e), a one-time
	license plate manufacturing fee of $1.50 for each fleet motor
	vehicle, semitrailer, or trailer license plate.
	(i)  The department may provide for credits for fleet
	registration.
	SECTION 80.  Section 502.185, Transportation Code, is
	transferred to Subchapter A, Chapter 502, Transportation Code,
	redesignated as Section 502.010, Transportation Code, and amended
	to read as follows:
	Sec. 502.010  [502.185].  COUNTY SCOFFLAW [REFUSAL TO
	REGISTER VEHICLE IN CERTAIN COUNTIES]. (a) A county
	assessor-collector or the department may refuse to register a motor
	vehicle if the assessor-collector or the department receives
	information that the owner of the vehicle:
	(1)  owes the county money for a fine, fee, or tax that
	is past due; or
	(2)  failed to appear in connection with a complaint,
	citation, information, or indictment in a court in the county in
	which a criminal proceeding is pending against the owner.
	(b)  A county may contract with the department to provide
	information to the department necessary to make a determination
	under Subsection (a).
	(c)  A county that has a contract under Subsection (b) shall
	notify the department regarding a person for whom the county
	assessor-collector or the department has refused to register a
	motor vehicle on:
	(1)  the person's payment or other means of discharge of
	the past due fine, fee, or tax; or
	(2)  perfection of an appeal of the case contesting
	payment of the fine, fee, or tax.
	(d)  After notice is received under Subsection (c), the
	county assessor-collector or the department may not refuse to
	register the motor vehicle under Subsection (a).
	(e)  A contract under Subsection (b) must be entered into in
	accordance with Chapter 791, Government Code, and is subject to the
	ability of the parties to provide or pay for the services required
	under the contract.
	(f)  A county that has a contract under Subsection (b) may
	impose an additional fee to a person who:
	(1)  fails to pay [paying] a fine, fee, or tax to the
	county by the date on which the fine, fee, or tax is [after it is
	past] due; or
	(2)  fails to appear in connection with a complaint,
	citation, information, or indictment in a court in the county in
	which a criminal proceeding is pending against the owner.
	(f-1)  The additional fee may be used only to reimburse the
	department or the county for its expenses for providing services
	under the contract.
	(g)  In this section:
	(1)  a fine, fee, or tax is considered past due if it is
	unpaid 90 or more days after the date it is due; and
	(2)  registration of a motor vehicle includes renewal
	of the registration of the vehicle.
	(h)  This section does not apply to the registration of a
	motor vehicle under Section 501.0234, unless the vehicle is titled
	and registered in the name of a person who holds a general
	distinguishing number.
	SECTION 81.  The heading to Subchapter B, Chapter 502,
	Transportation Code, is amended to read as follows:
	SUBCHAPTER B. REGISTRATION REQUIREMENTS [STATE ADMINISTRATION]
	SECTION 82.  Section 502.002, Transportation Code, is
	transferred to Subchapter B, Chapter 502, Transportation Code,
	redesignated as Section 502.040, Transportation Code, and amended
	to read as follows:
	Sec. 502.040 [502.002].  REGISTRATION REQUIRED; GENERAL
	RULE. (a) Not more than 30 days after purchasing a vehicle or
	becoming a resident of this state, the [The] owner of a motor
	vehicle, trailer, or semitrailer shall apply for the registration
	of the vehicle for:
	(1)  each registration year in which the vehicle is
	used or to be used on a public highway; and
	(2)  if the vehicle is unregistered for a registration
	year that has begun and that applies to the vehicle and if the
	vehicle is used or to be used on a public highway, the remaining
	portion of that registration year.
	(b)  The application must be accompanied by personal
	identification as determined by department rule and made in a
	manner prescribed by [to] the department:
	(1)  through the county assessor-collector of the
	county in which the owner resides; or
	(2)  if the county in which the owner resides has been
	declared by the governor as a disaster area, through the county
	assessor-collector of a county that is one of the closest
	unaffected counties to a county that asks for assistance and:
	(A)  continues to be declared by the governor as a
	disaster area because the county has been rendered inoperable by
	the disaster; and
	(B)  is inoperable for a protracted period of
	time.
	(c)  A provision of this chapter that conflicts with this
	section prevails over this section to the extent of the conflict.
	(d)  A county assessor-collector, a deputy county
	assessor-collector, or a person acting on behalf of a county
	assessor-collector is not liable to any person for:
	(1)  refusing to register a motor vehicle because of
	the person's failure to submit evidence of residency that complies
	with the department's rules; or
	(2)  registering a motor vehicle under this section.
	SECTION 83.  Section 502.157, Transportation Code, is
	transferred to Subchapter B, Chapter 502, Transportation Code,
	redesignated as Section 502.041, Transportation Code, and amended
	to read as follows:
	Sec. 502.041 [502.157].  INITIAL REGISTRATION.  (a)
	Notwithstanding Section 502.040 [502.002], [when a motor vehicle
	must be registered before an application for a certificate of title
	will be accepted,] the owner of a [the] vehicle may concurrently
	apply for a [certificate of] title and for registration through the
	county assessor-collector of the county in which:
	(1)  the owner resides; or
	(2)  the vehicle is purchased or encumbered.
	(b)  The first time an owner applies for registration of a
	vehicle, the owner may demonstrate compliance with Section
	502.046(a) [502.153(a)] as to the vehicle by showing proof of
	financial responsibility in any manner specified in Section
	502.046(c) [502.153(c)] as to:
	(1)  any vehicle of the owner; or
	(2)  any vehicle used as part of the consideration for
	the purchase of the vehicle the owner applies to register.
	SECTION 84.  Section 502.152, Transportation Code, is
	transferred to Subchapter B, Chapter 502, Transportation Code,
	redesignated as Section 502.042, Transportation Code, and amended
	to read as follows:
	Sec. 502.042 [502.152].  [CERTIFICATE OF] TITLE REQUIRED
	FOR REGISTRATION.  [(a)]  The department may not register or renew
	the registration of a motor vehicle for which a [certificate of]
	title is required under Chapter 501 unless the owner:
	(1)  obtains a [certificate of] title for the vehicle;
	or
	(2)  presents satisfactory evidence that a
	[certificate of] title was previously issued to the owner by the
	department or another jurisdiction.
	[(b)     This section does not apply to an automobile that was
	purchased new before January 1, 1936.]
	SECTION 85.  Section 502.151, Transportation Code, is
	transferred to Subchapter B, Chapter 502, Transportation Code,
	redesignated as Section 502.043, Transportation Code, and amended
	to read as follows:
	Sec. 502.043 [502.151].  APPLICATION FOR REGISTRATION.  (a)
	An application for vehicle registration must:
	(1)  be made in a manner prescribed and include the
	information required [on a form furnished] by the department by
	rule; and
	(2)  contain a [the] full description [name and address
	of the owner] of the vehicle as required by department rule [;
	[(3)  contain a brief description of the vehicle;
	[(4)     contain any other information required by the
	department; and
	[(5)  be signed by the owner].
	(b)  The department shall deny the [For a new motor vehicle,
	the description of the vehicle must include the vehicle's:
	[(1)  trade name;
	[(2)  year model;
	[(3)  style and type of body;
	[(4)  weight, if the vehicle is a passenger car;
	[(5)     net carrying capacity and gross weight, if the
	vehicle is a commercial motor vehicle;
	[(6)  vehicle identification number; and
	[(7)     date of sale by the manufacturer or dealer to the
	applicant.
	[(c)  An applicant for] registration of a commercial motor
	vehicle, truck-tractor, trailer, or semitrailer if the applicant:
	(1)  has a business operated, managed, or otherwise
	controlled or affiliated with a person who is ineligible for
	registration or whose privilege to operate has been suspended,
	including the applicant entity, a relative, family member,
	corporate officer, or shareholder;
	(2)  has a vehicle that has been prohibited from
	operating by the Federal Motor Carrier Safety Administration for
	safety-related reasons;
	(3)  is a carrier whose business is operated, managed,
	or otherwise controlled or affiliated with a person who is
	ineligible for registration, including the owner, a relative, a
	family member, a corporate officer, or a shareholder; or
	(4)  fails to [must] deliver to the county
	assessor-collector proof of [an affidavit showing] the weight of
	the vehicle, the maximum load to be carried on the vehicle, and the
	gross weight for which the vehicle is to be registered. [The
	assessor-collector shall keep the affidavit on file.]
	(c) [(d)]  In lieu of filing an application during a year as
	provided by Subsection (a), the owner of a vehicle registered in any
	state for that year or the preceding year may present the
	registration receipt and transfer receipt, if any. The county
	assessor-collector shall accept the receipt as an application for
	renewal of the registration if the receipt indicates the applicant
	owns the vehicle. This section allows issuance for registration
	purposes only but does not authorize the department to issue a
	title.
	(d)  The department may require an applicant for
	registration to provide current personal identification as
	determined by department rule. Any identification number required
	by the department under this subsection may be entered into the
	department's electronic titling system but may not be printed on
	the title.
	[(e)     If an owner or claimed owner has lost or misplaced the
	registration receipt or transfer receipt for the vehicle, the
	county assessor-collector shall register the vehicle on the
	person's furnishing to the assessor-collector satisfactory
	evidence, by affidavit or otherwise, that the person owns the
	vehicle.
	[(f)     A county assessor-collector shall date each
	registration receipt issued for a vehicle with the date on which the
	application for registration is made.]
	SECTION 86.  Section 502.158, Transportation Code, is
	transferred to Subchapter B, Chapter 502, Transportation Code,
	redesignated as Section 502.044, Transportation Code, and amended
	to read as follows:
	Sec. 502.044 [502.158].  REGISTRATION PERIOD [YEAR].  (a)
	The department shall designate a vehicle registration year of 12
	consecutive months to begin on the first day of a calendar month and
	end on the last day of the 12th calendar month.
	(b)  The department shall designate vehicle registration
	years so as to distribute the work of the department and the county
	assessor-collectors as uniformly as possible throughout the year.
	The department may establish separate registration years for any
	vehicle or classification of vehicle and may adopt rules to
	administer the year-round registration system.
	(c)  The department may designate a registration period of
	less than 12 months to be [. The registration fee for a
	registration period of less than 12 months is] computed at a rate of
	one-twelfth the annual registration fee multiplied by the number of
	months in the registration period. The board by rule may allow
	payment of [department may not designate a registration period of
	more than 12 months, but:
	[(1)     with the consent of the department, an owner may
	pay] registration fees for a designated period not to exceed the
	amount of time determined by department rule [of more than 12
	months; and
	[(2)     an owner of a vehicle may pay registration fees
	for a designated period of 12, 24, or 36 months.
	[(d)     An application for registration shall be made during
	the two months preceding the date on which the registration
	expires.
	[(e)     The fee to be paid for renewing a registration is the
	fee that will be in effect on the first day of the vehicle
	registration year].
	(d) [(g)]  The department shall issue [the applicant for
	registration who pays registration fees for a designated period of
	24 or 36 months] a registration receipt and registration insignia
	that are valid until the expiration of the designated period.
	SECTION 87.  Section 502.176, Transportation Code, is
	transferred to Subchapter B, Chapter 502, Transportation Code,
	redesignated as Section 502.045, Transportation Code, and amended
	to read as follows:
	Sec. 502.045 [502.176].  DELINQUENT REGISTRATION.  (a)  A
	registration fee [prescribed by this chapter] for a vehicle becomes
	delinquent immediately if the vehicle is used on a public highway
	without the fee having been paid in accordance with this chapter.
	(b)  An [A county assessor-collector that determines that
	an] applicant for registration who provides [for which payment of
	the registration fee is delinquent has provided] evidence
	[acceptable to the assessor-collector sufficient] to establish
	good reason for delinquent registration and who [that the
	application] complies with the other requirements for registration
	under this chapter may [shall] register the vehicle for a 12-month
	period that ends on the last day of the 11th month after the month in
	which the registration occurs under this subsection. [The
	registration period for vehicles registered in accordance with
	Sections 502.164, 502.167, 502.203, 502.255, 502.267, 502.277,
	502.278, 502.293, as added by Chapter 1222, Acts of the 75th
	Legislature, Regular Session, 1997, and 502.295, as added by
	Chapter 625, Acts of the 75th Legislature, Regular Session, 1997,
	will end on the annual registration date, and the registration fees
	will be prorated.]
	(c)  An [A county assessor-collector that determines that
	an] applicant for registration who [that] is delinquent and has not
	provided evidence acceptable [to the assessor-collector
	sufficient] to establish good reason for delinquent registration
	but who [that the application] complies with the other requirements
	for registration under this chapter shall register the vehicle for
	a 12-month period without changing the initial month of
	registration.
	(d)  A person who has been arrested or received a citation
	for a violation of Section 502.472 [502.402] may register the
	vehicle being operated at the time of the offense [with the county
	assessor-collector] for a 12-month period without change to the
	initial month of registration only if the person:
	(1)  meets the other requirements for registration
	under this chapter; and
	(2)  pays an additional charge equal to 20 percent of
	the prescribed fee.
	(e)  The board by rule [county assessor-collector] shall
	adopt a list of evidentiary items sufficient to establish good
	reason for delinquent registration under Subsection (b) and provide
	for the [forms of] evidence that may be used to establish good
	reason under that subsection. [The list of evidentiary items
	adopted under this section must allow for delinquent registration
	under Subsection (b) because of:
	[(1)  extensive repairs on the vehicle;
	[(2)     the absence of the owner of the vehicle from this
	country;
	[(3)  seasonal use of the vehicle; or
	[(4)     any other reason determined by the
	assessor-collector to be a valid explanation for the delinquent
	registration.]
	(f)  The board [department] by rule shall adopt procedures to
	implement this section in connection with the delinquent
	registration of a vehicle registered directly with the department
	or through other means.
	SECTION 88.  Section 502.153, Transportation Code, is
	transferred to Subchapter B, Chapter 502, Transportation Code,
	redesignated as Section 502.046, Transportation Code, and amended
	to read as follows:
	Sec. 502.046 [502.153].  EVIDENCE OF FINANCIAL
	RESPONSIBILITY. (a)  Evidence [Except as provided by Subsection
	(j), the owner of a motor vehicle, other than a trailer or
	semitrailer, for which evidence] of financial responsibility as
	[is] required by Section 601.051 other than for a trailer or
	semitrailer [or a person who represents the owner for purposes of
	registering a motor vehicle] shall be submitted [submit evidence of
	financial responsibility] with the application for registration
	under Section 502.043 [502.151]. A county assessor-collector may
	not register the motor vehicle unless the owner or the owner's
	representative submits the evidence of financial responsibility.
	(b)  The county assessor-collector shall examine the
	evidence of financial responsibility to determine whether it
	complies with Subsection (c). After examination, [examining] the
	evidence [, the assessor-collector] shall be returned [return the
	evidence] unless it is in the form of a photocopy or an electronic
	submission.
	(c)  In this section, evidence of financial responsibility
	may be:
	(1)  a document listed under Section 601.053(a) or
	verified in compliance with Section 601.452;
	(2)  a liability self-insurance or pool coverage
	document issued by a political subdivision or governmental pool
	under the authority of Chapter 791, Government Code, Chapter 119,
	Local Government Code, or other applicable law in at least the
	minimum amounts required by Chapter 601;
	(3)  a photocopy of a document described by Subdivision
	(1) or (2); or
	(4)  an electronic submission of a document or the
	information contained in a document described by Subdivision (1) or
	(2).
	(d)  A personal automobile policy used as evidence of
	financial responsibility under this section must comply with
	Section 1952.052 et seq. and Sections 2301.051 through 2301.055
	[Article 5.06 or 5.145], Insurance Code.
	(e)  At the time of registration, the county
	assessor-collector shall provide to a person registering a motor
	vehicle a [separate] statement that the motor vehicle [being
	registered] may not be operated in this state unless:
	(1)  liability insurance coverage for the motor vehicle
	in at least the minimum amounts required by law remains in effect to
	insure against potential losses; or
	(2)  the motor vehicle is exempt from the insurance
	requirement because the person has established financial
	responsibility in a manner described by Sections [Section]
	601.051(2)-(5) or is exempt under Section 601.052.
	(f)  A county assessor-collector is not liable to any person
	for refusing to register a motor vehicle to which this section
	applies because of the person's failure to submit evidence of
	financial responsibility that complies with Subsection (c).
	(g)  A county, a county assessor-collector, a deputy county
	assessor-collector, a person acting for or on behalf of a county or
	a county assessor-collector, or a person acting on behalf of an
	owner for purposes of registering a motor vehicle is not liable to
	any person for registering a motor vehicle under this section.
	(h)  This section does not prevent a person from registering
	a motor vehicle by mail or through an electronic submission.
	(i)  To be valid under this section, an electronic submission
	must be in a format that is:
	(1)  submitted by electronic means, including a
	telephone, facsimile machine, or computer;
	(2)  approved by the department; and
	(3)  authorized by the commissioners court for use in
	the county.
	(j)  This section does not apply to a vehicle registered
	pursuant to Section 501.0234.
	SECTION 89.  Section 502.009, Transportation Code, is
	transferred to Subchapter B, Chapter 502, Transportation Code,
	redesignated as Section 502.047, Transportation Code, and amended
	to read as follows:
	Sec. 502.047 [502.009].  MOTOR VEHICLE EMISSIONS INSPECTION
	AND MAINTENANCE REQUIREMENTS. (a)  The Department of Public Safety
	shall ensure compliance with the motor vehicle emissions inspection
	and maintenance program through a vehicle inspection sticker-based
	enforcement system except as provided by this section or Section
	548.3011. Subsections (b)-(e) apply only if the United States
	Environmental Protection Agency determines that the state has not
	demonstrated, as required by 40 C.F.R. Section 51.361, that
	sticker-based enforcement of the program is more effective than
	registration-based enforcement and gives the Texas [Natural
	Resource Conservation] Commission on Environmental Quality or the
	governor written notification that the reregistration-based
	enforcement of the program, as described by those subsections, will
	be required. If Subsections (b)-(e) are made applicable as
	provided by this subsection, the department shall terminate
	reregistration-based enforcement of the program under those
	subsections on the date the United States Environmental Protection
	Agency gives the Texas [Natural Resource Conservation] Commission
	on Environmental Quality or a person the commission designates
	written notification that reregistration-based enforcement is not
	required for the state implementation plan.
	(b)  A [The department may not register a] motor vehicle may
	not be registered if the department receives from the Texas
	[Natural Resource Conservation] Commission on Environmental
	Quality or the Department of Public Safety notification that the
	registered owner of the vehicle has not complied with Subchapter F,
	Chapter 548.
	(c)  A motor vehicle [The county tax assessor-collector] may
	not be registered if the [register a] vehicle was denied
	registration under Subsection (b) unless [the tax
	assessor-collector has] verification is received that the
	registered vehicle owner is in compliance with Subchapter F,
	Chapter 548.
	(d)  The department, the Texas [Natural Resource
	Conservation] Commission on Environmental Quality, and the
	Department of Public Safety shall enter an agreement regarding the
	responsibilities for costs associated with implementing this
	section.
	(e)  A county tax assessor-collector is not liable to any
	person for refusing to register a motor vehicle because of the
	person's failure to provide verification of the person's compliance
	with Subchapter F, Chapter 548.
	SECTION 90.  Section 502.005, Transportation Code, is
	transferred to Subchapter B, Chapter 502, Transportation Code,
	redesignated as Section 502.048, Transportation Code, and amended
	to read as follows:
	Sec. 502.048 [502.005].  REFUSAL TO REGISTER UNSAFE
	VEHICLE. [(a)]  The department may refuse to register a motor
	vehicle and may cancel, suspend, or revoke a registration if the
	department determines that a motor vehicle is unsafe, improperly
	equipped, or otherwise unfit to be operated on a public highway.
	[(b)     The department may refuse to register a motorcycle and
	may suspend or revoke the registration of a motorcycle if the
	department determines that the motorcycle's braking system does not
	comply with Section 547.408.]
	SECTION 91.  Section 502.055(b), Transportation Code, is
	amended to read as follows:
	(b)  The department may require an applicant for
	registration under this chapter to provide the department with
	evidence of:
	(1)  the manufacturer's rated carrying capacity for the
	vehicle; or
	(2)  [the nominal tonnage rating of the vehicle;
	[(3)]  the gross vehicle weight rating [of the vehicle;
	or
	[(4)     any combination of information described in
	Subdivisions (1)-(3)].
	SECTION 92.  Section 502.178, Transportation Code, is
	transferred to Subchapter B, Chapter 502, Transportation Code,
	redesignated as Section 502.057, Transportation Code, and amended
	to read as follows:
	Sec. 502.057  [502.178].  REGISTRATION RECEIPT. [(a)]  The
	department shall issue or require to be issued to the owner of a
	vehicle registered under this chapter a registration receipt
	showing the information required by rule [:
	[(1)  the date of issuance;
	[(2)  the license number assigned to the vehicle;
	[(3)  the name and address of the owner; and
	[(4)     other information as determined by the
	department.
	[(b)     The registration receipt issued for a commercial motor
	vehicle, truck-tractor, trailer, or semitrailer must show the gross
	weight for which the vehicle is registered].
	SECTION 93.  Section 502.179, Transportation Code, is
	transferred to Subchapter B, Chapter 502, Transportation Code,
	redesignated as Section 502.058, Transportation Code, and amended
	to read as follows:
	Sec. 502.058  [502.179].  DUPLICATE REGISTRATION RECEIPT.
	(a)  The owner of a vehicle for which the registration receipt has
	been lost or destroyed may obtain a duplicate receipt from the
	department or the county assessor-collector who issued the original
	receipt by paying a fee of $2.
	(b)  The office issuing a duplicate receipt shall retain the
	fee received [as a fee of office].
	SECTION 94.  Section 502.180, Transportation Code, is
	transferred to Subchapter B, Chapter 502, Transportation Code,
	redesignated as Section 502.059, Transportation Code, and amended
	to read as follows:
	Sec. 502.059  [502.180].  ISSUANCE OF [LICENSE PLATE OR]
	REGISTRATION INSIGNIA. (a)  On payment of the prescribed fee [,
	the department shall issue to] an applicant for motor vehicle
	registration shall be issued a [license plate or set of plates or a
	device that, when attached to the vehicle as prescribed by the
	department, is the] registration insignia [for the period for which
	it was issued].
	(b)  [Subject to Subchapter I, the department shall issue
	only one license plate or set of plates for a vehicle during a
	five-year period.
	[(c)]  On application and payment of the prescribed fee for a
	renewal of the registration of a vehicle through the period set by
	rule [for the first, second, third, or fourth registration year
	after the issuance of a license plate or set of plates for the
	vehicle], the department shall issue a registration insignia for
	the validation of the license plate or plates to be attached as
	provided by Subsection (c) [(d)].
	(c) [(d)]  Except as provided by Subsection (f) [(h)], the
	registration insignia for validation of a license plate shall be
	attached to the inside of the vehicle's windshield, if the vehicle
	has a windshield, within six inches of the place where the motor
	vehicle inspection sticker is required to be placed. If the vehicle
	does not have a windshield, the owner, when applying for
	registration or renewal of registration, shall notify the
	department, and the department shall issue a distinctive device for
	attachment to the rear license plate of the vehicle.
	(d)  Department [(e)     The department shall adopt rules for
	the issuance and use of license plates and registration insignia
	issued under this chapter. The] rules may provide for the use of an
	automated registration process, including:
	(1)  the automated on-site production of registration
	insignia; and
	(2)  automated on-premises and off-premises
	self-service registration.
	(e)  Subsection (c) does [(f)  Subsections (b)-(d) do] not
	apply to:
	(1)  the issuance of specialized license plates as
	designated by the department, including state official license
	plates, exempt plates for governmental entities, and temporary
	registration plates; or
	(2)  the issuance or validation of replacement license
	plates, except as provided by Chapter 504 [Section 502.184].
	(f)  [(g)     The department shall provide a separate and
	distinctive tab to be affixed to the license plate of an automobile,
	pickup, or recreational vehicle that is offered for rent, as a
	business, to any part of the public.
	[(h)]  The registration insignia [for validation of a
	license plate] shall be attached to the rear license plate of the
	vehicle, if the vehicle is:
	(1)  a motorcycle;
	(2)  machinery used exclusively to drill water wells or
	construction machinery for which a distinguishing license plate has
	been issued under Section 502.146 [504.504];  or
	(3)  oil well servicing, oil clean out, or oil well
	drilling machinery or equipment for which a distinguishing license
	plate has been issued under Subchapter G, Chapter 623.
	SECTION 95.  Section 502.184, Transportation Code, as
	effective September 1, 2011, is transferred to Subchapter B,
	Chapter 502, Transportation Code, redesignated as Section 502.060,
	Transportation Code, and amended to read as follows:
	Sec. 502.060  [502.184].  REPLACEMENT OF REGISTRATION
	INSIGNIA. (a) The owner of a registered motor vehicle may obtain a
	replacement registration insignia by:
	(1)  certifying that the replacement registration
	insignia will not be used on any other vehicle owned or operated by
	the person making the statement;
	(2)  paying a fee of $6 plus the fees required by
	Section 502.356(a) [502.1705(a)] for each replacement registration
	insignia, except as provided by other law; and
	(3)  returning each replaced registration insignia in
	the owner's possession.
	(b)  No fee is required under this section if the replacement
	fee for a license plate has been paid under Section 504.007
	[502.1841].
	(c)  [The fee for replacement of license plates issued under
	Section 504.507 is the amount prescribed by the department as
	necessary to recover the cost of providing the replacement plates.
	[(d)     If license plates approved under Section 504.501(b) or
	504.502(c) are lost, stolen, or mutilated, the owner of the vehicle
	may obtain approval of another set of license plates as provided by
	Section 504.501 or 504.502, respectively.     The fee for approval of
	replacement license plates is $5.
	[(e)]  A county assessor-collector may not issue a
	replacement registration insignia without complying with this
	section.
	(d) [(f)]  A county assessor-collector shall retain $2.50 of
	each fee collected under this section and shall report and send the
	remainder to the department.
	[(g)     Replacement license plates may be used in the
	registration year in which the plates are issued and during each
	succeeding year of the five-year period as prescribed by Section
	502.180(b) if the registration insignia is properly attached.
	[(h)     Subsection (g) does not apply to the issuance of
	specialized license plates as designated by the department,
	including state official license plates, exempt plates for
	governmental entities, and temporary registration plates.
	[(i)     The owner of a vehicle listed in Section 502.180(h) may
	obtain replacement plates and a replacement registration insignia
	by paying a fee of $5 plus the fees required by Sections 502.170(a)
	and 502.1705(a).]
	SECTION 96.  The heading to Subchapter C, Chapter 502,
	Transportation Code, is amended to read as follows:
	SUBCHAPTER C. SPECIAL REGISTRATIONS [COUNTY ADMINISTRATION]
	SECTION 97.  Section 502.0025, Transportation Code, is
	transferred to Subchapter C, Chapter 502, Transportation Code,
	redesignated as Section 502.090, Transportation Code, and amended
	to read as follows:
	Sec. 502.090  [502.0025].  EFFECT OF CERTAIN MILITARY
	SERVICE ON REGISTRATION REQUIREMENT. (a)  This section applies
	only to a motor vehicle that is owned by a person who:
	(1)  is a resident of this state;
	(2)  is on active duty in the armed forces of the United
	States;
	(3)  is stationed in or has been assigned to another
	nation under military orders; and
	(4)  has registered the vehicle or been issued a
	license for the vehicle under the applicable status of forces
	agreement by:
	(A)  the appropriate branch of the armed forces of
	the United States; or
	(B)  the nation in which the person is stationed
	or to which the person has been assigned.
	(b)  Unless the registration or license issued for a vehicle
	described by Subsection (a) is suspended, canceled, or revoked by
	this state as provided by law:
	(1)  Section 502.040(a) [502.002(a)] does not apply;
	and
	(2)  the registration or license issued by the armed
	forces or host nation remains valid and the motor vehicle may be
	operated in this state under that registration or license for a
	period of not more than 90 days after the date on which the vehicle
	returns to this state.
	SECTION 98.  Section 502.054, Transportation Code, is
	transferred to Subchapter C, Chapter 502, Transportation Code,
	redesignated as Section 502.091, Transportation Code, and amended
	to read as follows:
	Sec. 502.091  [502.054].  INTERNATIONAL REGISTRATION PLAN
	[AGREEMENTS WITH OTHER JURISDICTIONS; OFFENSE]. (a)  The
	department, through its director, may enter into an agreement with
	an authorized officer of another jurisdiction, including another
	state of the United States, a foreign country or a state, province,
	territory, or possession of a foreign country, to provide for:
	(1)  the registration of vehicles by residents of this
	state and nonresidents on an allocation or mileage apportionment
	plan, as under the International Registration Plan; and
	(2)  the exemption from payment of registration fees by
	nonresidents if residents of this state are granted reciprocal
	exemptions.
	(b)  The department may adopt and enforce rules to carry out
	the International Registration Plan or other agreement under this
	section.
	(c)  To carry out the International Registration Plan or
	other agreement under this section, the department shall direct
	that fees collected for other jurisdictions under the agreement be
	deposited to the credit of the proportional registration
	distributive fund in the state treasury and distributed to the
	appropriate jurisdiction through that fund.  The department is not
	required to refund any amount less than $10 unless required by the
	plan.
	(d)  This section prevails to the extent of conflict with
	another law relating to the subject of this section.
	(e)  A person commits an offense if the person owns or
	operates a vehicle not registered in this state in violation of:
	(1)  an agreement under this section; or
	(2)  the applicable registration laws of this state, in
	the absence of an agreement under this section.
	(f)  An offense under Subsection (e) is a misdemeanor
	punishable by a fine not to exceed $200.
	SECTION 99.  Section 502.355, Transportation Code, is
	transferred to Subchapter C, Chapter 502, Transportation Code,
	redesignated as Section 502.092, Transportation Code, and amended
	to read as follows:
	Sec. 502.092  [502.355].  NONRESIDENT-OWNED VEHICLES USED
	TO TRANSPORT FARM PRODUCTS[; OFFENSE]. (a) The department may
	issue to a nonresident owner a permit for a truck, truck-tractor,
	trailer, or semitrailer that:
	(1)  is registered in the owner's home state or country;
	and
	(2)  will be used to transport:
	(A)  farm products produced in this state from the
	place of production to a place of market or storage or a railhead
	that is not more than 75 miles from the place of production;
	(B)  machinery used to harvest farm products
	produced in this state; or
	(C)  farm products produced outside this state
	from the point of entry into this state to a place of market,
	storage, or processing or a railhead or seaport that is not more
	than 80 miles from the point of entry.
	(b)  The department shall issue a distinguishing insignia
	for a vehicle issued a permit under this section. The insignia must
	be attached to the vehicle in lieu of regular license plates and
	must show the permit expiration date. A permit issued under this
	section is valid until the earlier of:
	(1)  the date the vehicle's registration in the owner's
	home state or country expires; or
	(2)  the 30th day after the date the permit is issued.
	(c)  A person may obtain a permit under this section by:
	(1)  applying to the department in a manner [on a form]
	prescribed by the department;
	(2)  paying a fee equal to 1/12 the registration fee
	prescribed by this chapter for the vehicle;
	(3)  furnishing satisfactory evidence that the motor
	vehicle is insured under an insurance policy that complies with
	Section 601.072 and that is written by:
	(A)  an insurance company or surety company
	authorized to write motor vehicle liability insurance in this
	state; or
	(B)  with the department's approval, a surplus
	lines insurer that meets the requirements of Chapter 981, Insurance
	Code, and rules adopted by the commissioner of insurance under that
	chapter, if the applicant is unable to obtain insurance from an
	insurer described by Paragraph (A); and
	(4)  furnishing evidence that the vehicle has been
	inspected as required under Chapter 548.
	(d)  A nonresident owner may not obtain more than three
	permits under this section during a registration year.
	(e)  A vehicle for which a permit is issued under this
	section may not be operated in this state after the permit expires
	unless the owner:
	(1)  obtains another temporary permit; or
	(2)  registers the vehicle under Section 502.253,
	502.254, 502.255 [502.162, 502.165, 502.166], or 502.256
	[502.167], as appropriate, for the remainder of the registration
	year.
	(f)  A vehicle for which a permit is issued under this
	section may not be registered under Section 502.433 [502.163].
	(g)  A mileage referred to in this section is a state highway
	mileage.
	[(h)     A person operating a vehicle under a permit issued
	under this section commits an offense if the person:
	[(1)     transports farm products to a place of market,
	storage, or processing or a railhead or seaport that is farther from
	the place of production or point of entry, as appropriate, than the
	distance provided for in the permit; or
	[(2)     follows a route other than that prescribed by the
	board.
	[(i)     An offense under Subsection (h) is a misdemeanor
	punishable by a fine of not less than $25 or more than $200.]
	SECTION 100.  Section 502.353, Transportation Code, is
	transferred to Subchapter C, Chapter 502, Transportation Code,
	redesignated as Section 502.093, Transportation Code, and amended
	to read as follows:
	Sec. 502.093  [502.353].  [FOREIGN COMMERCIAL VEHICLES;]
	ANNUAL PERMITS [; OFFENSE]. (a)  The department may issue an annual
	permit in lieu of registration to a foreign commercial motor
	vehicle, trailer, or semitrailer that [:
	[(1)]  is subject to registration in this state [;] and
	[(2)]  is not authorized to travel on a public highway
	because of the lack of registration in this state or the lack of
	reciprocity with the state or country in which the vehicle is
	registered.
	(b)  A permit issued under this section [:
	[(1)  is in lieu of registration; and
	[(2)]  is valid for a vehicle registration year to
	begin on the first day of a calendar month designated by the
	department and end on the last day of the last calendar month of the
	registration year.
	(c)  A permit may not be issued under this section for the
	importation of citrus fruit into this state from a foreign country
	except for foreign export or processing for foreign export.
	(d)  A person may obtain a permit under this section by:
	(1)  applying in the manner prescribed by [to] the
	department;
	(2)  paying a fee in the amount required by Subsection
	(e) in the manner prescribed by the department, including a service
	charge for a credit card payment or escrow account [cash or by
	postal money order or certified check]; and
	(3)  furnishing evidence of financial responsibility
	for the motor vehicle that complies with Sections 502.046(c)
	[502.153(c)] and 601.168(a), the policies to be written by an
	insurance company or surety company authorized to write motor
	vehicle liability insurance in this state.
	(e)  The fee for a permit under this section is the fee that
	would be required for registering the vehicle under Section 502.253
	[502.162] or 502.255 [502.167], except as provided by Subsection
	(f).
	(f)  A vehicle registered under this section is exempt from
	the token fee and is not required to display the associated
	distinguishing license plate if the vehicle:
	(1)  is a semitrailer that has a gross weight of more
	than 6,000 pounds; and
	(2)  is used or intended to be used in combination with
	a truck tractor or commercial motor vehicle with a gross vehicle
	weight [manufacturer's rated carrying capacity] of more than 10,000
	pounds [one ton].
	(g)  A vehicle registered under this section is not subject
	to the fee required by Section 502.401 [502.172] or 502.403
	[502.173].
	[(h)  The department may:
	[(1)  adopt rules to administer this section; and
	[(2)     prescribe an application for a permit and other
	forms under this section.
	[(i)     A person who violates this section commits an offense.
	An offense under this section is a misdemeanor punishable by a fine
	not to exceed $200.]
	SECTION 101.  Section 502.352, Transportation Code, is
	transferred to Subchapter C, Chapter 502, Transportation Code,
	redesignated as Section 502.094, Transportation Code, and amended
	to read as follows:
	Sec. 502.094  [502.352].  72- OR 144-HOUR PERMITS [FOREIGN
	COMMERCIAL VEHICLES]. (a)  The department may issue a temporary
	registration permit in lieu of registration for a commercial motor
	vehicle, trailer, semitrailer, or motor bus that:
	(1)  is owned by a resident of the United States,
	Canada, or the United Mexican States;
	(2)  is subject to registration in this state; and
	(3)  is not authorized to travel on a public highway
	because of the lack of registration in this state or the lack of
	reciprocity with the state or province in which the vehicle is
	registered.
	(b)  A permit issued under this section [:
	[(1)  is in lieu of registration; and
	[(2)]  is valid for the period stated on the permit,
	effective from the date and time shown on the receipt issued as
	evidence of registration under this section.
	(c)  A person may obtain a permit under this section by:
	(1)  applying to the county assessor-collector, the
	department, or the department's wire service agent, if the
	department has a wire service agent;
	(2)  paying a fee of $25 for a 72-hour permit or $50 for
	a 144-hour permit in the manner prescribed by the department that
	may include a service charge for a credit card payment or escrow
	account[:
	[(A)  in cash;
	[(B)  by postal money order;
	[(C)  by certified check;
	[(D)     by wire transfer through the department's
	wire service agent, if any;
	[(E)  by an escrow account; or
	[(F)     where the service is provided, by a credit
	card issued by:
	[(i)     a financial institution chartered by a
	state or the United States; or
	[(ii)     a nationally recognized credit
	organization approved by the board;
	[(3)     paying a discount or service charge for a credit
	card payment or escrow account, in addition to the fee];
	(3) [(4)]  furnishing to the county
	assessor-collector, the department, or the department's wire
	service agent, evidence of financial responsibility for the vehicle
	that complies with Sections 502.046(c) [502.153(c)] and 601.168(a)
	[and is written by an insurance company or surety company
	authorized to write motor vehicle liability insurance in this
	state]; and
	(4) [(5)]  submitting a copy of the applicable federal
	declaration form required by the Federal Motor Carrier Safety
	Administration or its successor in connection with the importation
	of a motor vehicle or motor vehicle equipment subject to the federal
	motor vehicle safety, bumper, and theft prevention standards.
	(d)  A county assessor-collector shall report and send a fee
	collected under this section in the manner provided by Section
	502.198 [Sections 502.102 and 502.105]. Each week, a wire service
	agent shall send to the department a report of all permits issued by
	the agent during the previous week. The board [department] by rule
	shall prescribe the format [form] and content of a report required
	by this subsection.
	(e)  [The department may:
	[(1)  adopt rules to administer this section; and
	[(2)     prescribe an application for a permit and other
	forms under this section.
	[(f)]  A vehicle issued a permit under this section is
	subject to Subchapters B and F, Chapter 548, unless the vehicle:
	(1)  is registered in another state of the United
	States, in a province of Canada, or in a state of the United Mexican
	States; or
	(2)  is mobile drilling or servicing equipment used in
	the production of gas, crude petroleum, or oil, including a mobile
	crane or hoisting equipment, mobile lift equipment, forklift, or
	tug.
	(f) [(g)]  A commercial motor vehicle, trailer, semitrailer,
	or motor bus apprehended for violating a registration law of this
	state:
	(1)  may not be issued a permit under this section; and
	(2)  is immediately subject to registration in this
	state.
	(g) [(h)]  A person who operates a commercial motor vehicle,
	trailer, or semitrailer with an expired permit issued under this
	section is considered to be operating an unregistered vehicle
	subject to each penalty prescribed by law.
	(h) [(i)]  The department may establish one or more escrow
	accounts in the state highway fund for the prepayment of a 72-hour
	permit or a 144-hour permit. Any fee established by the department
	for the administration of this subsection shall be administered as
	required by an agreement entered into by the department.
	SECTION 102.  Section 502.354, Transportation Code, is
	transferred to Subchapter C, Chapter 502, Transportation Code,
	redesignated as Section 502.095, Transportation Code, and amended
	to read as follows:
	Sec. 502.095  [502.354].  ONE-TRIP [SINGLE] OR 30-DAY TRIP
	PERMITS [; OFFENSE]. (a)  The department may issue a temporary
	permit in lieu of registration for a vehicle [that:
	[(1)  is] subject to registration in this state that [;
	and
	[(2)]  is not authorized to travel on a public highway
	because of the lack of registration in this state or the lack of
	reciprocity with the state or country in which the vehicle is
	registered.
	(b)  A permit issued under this section [:
	[(1)  is in lieu of registration; and
	[(2)]  is valid for:
	(1) [(A)]  one trip, as provided by Subsection (c); or
	(2) [(B)]  30 days, as provided by Subsection (d).
	(c)  A one-trip permit is valid for one trip between the
	points of origin and destination and those intermediate points
	specified in the application and registration receipt. Unless the
	vehicle is a bus operating under charter that is not covered by a
	reciprocity agreement with the state or country in which the bus is
	registered, a one-trip permit is for the transit of the vehicle
	only, and the vehicle may not be used for the transportation of any
	passenger or property. A one-trip permit may not be valid for
	longer than 15 days from the effective date of registration.
	(d)  A 30-day permit may be issued only to a passenger
	vehicle, a private bus, a trailer or semitrailer with a gross weight
	of not more than 10,000 pounds, a light truck, or a light commercial
	vehicle with a gross vehicle weight [manufacturer's rated carrying
	capacity] of more than 10,000 pounds [one ton] that will operate
	unladen. A person may obtain multiple 30-day permits. The
	department may issue a single registration receipt to apply to all
	of the periods for which the vehicle is registered.
	(e)  A person may obtain a permit under this section by:
	(1)  applying as [on a form] provided by the department
	to:
	(A)  the county assessor-collector of the county
	in which the vehicle will first be operated on a public highway; or
	(B)  the department in Austin or at one of the
	department's vehicle title and registration regional offices;
	(2)  paying a fee, in the manner prescribed by the
	department including a registration service charge for a credit
	card payment or escrow account [cash or by postal money order or
	certified check,] of:
	(A)  $5 for a one-trip permit; or
	(B)  $25 for each 30-day period; and
	(3)  furnishing evidence of financial responsibility
	for the vehicle in a form listed under Section 502.046(c)
	[502.153(c)].
	(f)  A registration receipt [and temporary tag] shall be
	carried in the vehicle at all times during the period in which it is
	valid [issued on forms provided by the department]. The temporary
	tag must contain all pertinent information required by this section
	and must be displayed in the rear window of the vehicle so that the
	tag is clearly visible and legible when viewed from the rear of the
	vehicle. If the vehicle does not have a rear window, the temporary
	tag must be attached on or carried in the vehicle to allow ready
	inspection. The registration receipt must be carried in the
	vehicle at all times during the period in which it is valid.
	(g)  The department may refuse and may instruct a county
	assessor-collector to refuse to issue a temporary registration for
	any vehicle if, in the department's opinion, the vehicle or the
	owner of the vehicle has been involved in operations that
	constitute an abuse of the privilege granted by this section. A
	registration issued after notice to a county assessor-collector
	under this subsection is void.
	[(h)     A person issued a temporary registration under this
	section who operates a vehicle in violation of Subsection (f)
	commits an offense. An offense under this subsection is a Class C
	misdemeanor.
	[(i)  The department may:
	[(1)  adopt rules to administer this section; and
	[(2)     prescribe an application for a permit and other
	forms under this section.]
	SECTION 103.  The heading to Subchapter D, Chapter 502,
	Transportation Code, is amended to read as follows:
	SUBCHAPTER D. VEHICLES NOT ISSUED REGISTRATION [PROCEDURES AND
	FEES]
	SECTION 104.  Section 502.006, Transportation Code, is
	transferred to Subchapter D, Chapter 502, Transportation Code,
	redesignated as Section 502.140, Transportation Code, and amended
	to read as follows:
	Sec. 502.140  [502.006].  CERTAIN OFF-HIGHWAY VEHICLES.
	(a) Except as provided by Subsection (b), a person may not register
	an all-terrain vehicle or a recreational off-highway vehicle, with
	or without design alterations, for operation on a public highway.
	(b)  The state, a county, or a municipality may register an
	all-terrain vehicle or a recreational off-highway vehicle for
	operation on a public beach or highway to maintain public safety and
	welfare.
	(c)  A recreational off-highway vehicle registered as
	provided by Subsection (b) may be operated on a public or private
	beach in the same manner as a golf cart may be operated on a public
	or private beach under Section 551.403 [502.0071].  The operator
	must hold and have in the operator's possession a driver's license
	issued under Chapter 521 or a commercial driver's license issued
	under Chapter 522.
	(d)  Section 504.401 [502.172] does not apply to an
	all-terrain vehicle or a recreational off-highway vehicle.
	(e)  Operation of an all-terrain vehicle or recreational
	off-highway vehicle in compliance with Section 663.037 does not
	require registration under Subsection (b).
	SECTION 105.  Section 502.0072, Transportation Code, is
	transferred to Subchapter D, Chapter 502, Transportation Code, and
	redesignated as Section 502.142, Transportation Code, to read as
	follows:
	Sec. 502.142  [502.0072].  MANUFACTURED HOUSING.
	Manufactured housing, as defined by Section 1201.003, Occupations
	Code, is not a vehicle subject to this chapter.
	SECTION 106.  Section 502.0073, Transportation Code, is
	transferred to Subchapter D, Chapter 502, Transportation Code,
	redesignated as Section 502.143, Transportation Code, and amended
	to read as follows:
	Sec. 502.143  [502.0073].  OTHER VEHICLES [POWER SWEEPERS].
	[(a)]  An owner may [of a power sweeper is] not [required to]
	register the following vehicles for operation on a public highway:
	(1)  power sweepers;
	(2)  motorized mobility devices;
	(3)  electric personal assistive mobility devices; and
	(4)  electric bicycles [sweeper].
	[(b)     In this section, "power sweeper" means an implement,
	with or without motive power, designed for the removal by broom,
	vacuum, or regenerative air system of debris, dirt, gravel, litter,
	or sand from asphaltic concrete or cement concrete surfaces,
	including surfaces of parking lots, roads, streets, highways, and
	warehouse floors. The term includes a vehicle on which the
	implement is permanently mounted if the vehicle is used only as a
	power sweeper.]
	SECTION 107.  Section 502.0078, Transportation Code, is
	transferred to Subchapter D, Chapter 502, Transportation Code, and
	redesignated as Section 502.144, Transportation Code, to read as
	follows:
	Sec. 502.144  [502.0078].  VEHICLES OPERATED ON PUBLIC
	HIGHWAY SEPARATING REAL PROPERTY UNDER VEHICLE OWNER'S CONTROL.
	Where a public highway separates real property under the control of
	the owner of a motor vehicle, the operation of the motor vehicle by
	the owner or the owner's agent or employee across the highway is not
	a use of the motor vehicle on the public highway.
	SECTION 108.  Section 502.0079, Transportation Code, is
	transferred to Subchapter D, Chapter 502, Transportation Code,
	redesignated as Section 502.145, Transportation Code, and amended
	to read as follows:
	Sec. 502.145  [502.0079].  VEHICLES OPERATED BY CERTAIN
	NONRESIDENTS. (a)  [A nonresident owner of a motor vehicle,
	trailer, or semitrailer that is registered in the state or country
	in which the person resides may operate the vehicle to transport
	persons or property for compensation without being registered in
	this state, if the person does not exceed two trips in a calendar
	month and each trip does not exceed four days.
	[(b)     A nonresident owner of a privately owned vehicle that
	is not registered in this state may not make more than five
	occasional trips in any calendar month into this state using the
	vehicle. Each occasional trip into this state may not exceed five
	days.
	[(c)]  A nonresident owner of a privately owned passenger car
	that is registered in the state or country in which the person
	resides and that is not operated for compensation may operate the
	car in this state for the period in which the car's license plates
	are valid. In this subsection, "nonresident" means a resident of a
	state or country other than this state whose presence in this state
	is as a visitor and who does not engage in gainful employment or
	enter into business or an occupation, except as may otherwise be
	provided by any reciprocal agreement with another state or country.
	(b) [(d)]  This section does not prevent:
	(1)  a nonresident owner of a motor vehicle from
	operating the vehicle in this state for the sole purpose of
	marketing farm products raised exclusively by the person; or
	(2)  a resident of an adjoining state or country from
	operating in this state a privately owned and registered vehicle to
	go to and from the person's place of regular employment and to make
	trips to purchase merchandise, if the vehicle is not operated for
	compensation.
	(c) [(e)]  The privileges provided by this section may be
	allowed only if, under the laws of the appropriate state or country,
	similar privileges are granted to vehicles registered under the
	laws of this state and owned by residents of this state.
	(d) [(f)]  This section does not affect the right or status
	of a vehicle owner under any reciprocal agreement between this
	state and another state or country.
	SECTION 109.  Section 504.504, Transportation Code, is
	transferred to Subchapter D, Chapter 502, Transportation Code,
	redesignated as Section 502.146, Transportation Code, and amended
	to read as follows:
	Sec. 502.146  [504.504].  CERTAIN FARM VEHICLES AND DRILLING
	AND CONSTRUCTION EQUIPMENT. (a)  The department shall issue
	specialty license plates to a vehicle described by Subsection (b)
	or (c). The fee for the license plates is $5.
	(b)  An owner is not required to register a vehicle that is
	used only temporarily on the highways if the vehicle is:
	(1)  a farm trailer or farm semitrailer with a gross
	weight of more than 4,000 pounds but not more than 34,000 pounds
	that is  used exclusively to transport:
	(A)  seasonally harvested agricultural products
	or livestock from the place of production to the place of
	processing, market, or storage; or
	(B)  farm supplies from the place of loading to
	the farm;
	(2)  machinery used exclusively for the purpose of
	drilling water wells; [or]
	(3)  oil well servicing or drilling machinery and if at
	the time of obtaining the license plates, the applicant submits
	proof that the applicant has a permit under Section 623.142; or
	(4)  construction machinery [that is not designed to
	transport persons or property on a public highway].
	(c)  An owner is not required to register a vehicle that is:
	(1)  a farm trailer or farm semitrailer owned by a
	cotton gin and used exclusively to transport agricultural products
	without charge from the place of production to the place of
	processing, market, or storage;
	(2)  a trailer used exclusively to transport fertilizer
	without charge from a place of supply or storage to a farm; or
	(3)  a trailer used exclusively to transport cottonseed
	without charge from a place of supply or storage to a farm or place
	of processing.
	(d)  A vehicle described by Subsection (b) is exempt from the
	inspection requirements of Subchapters B and F, Chapter 548.
	(e)  This section does not apply to a farm trailer or farm
	semitrailer that:
	(1)  is used for hire;
	(2)  has metal tires operating in contact with the
	highway;
	(3)  is not equipped with an adequate hitch pinned or
	locked so that it will remain securely engaged to the towing vehicle
	while in motion; or
	(4)  is not operated and equipped in compliance with
	all other law.
	(f)  A vehicle to which this section applies that is operated
	on a public highway in violation of this section is considered to be
	operated while unregistered and is immediately subject to the
	applicable registration fees and penalties prescribed by this
	chapter [Chapter 502].
	(g)  In this section, the gross weight of a trailer or
	semitrailer is the combined weight of the vehicle and the load
	carried on the highway.
	SECTION 109A.  (a) Section 502.161, Transportation Code, is
	amended by adding Subsection (a-1) to read as follows:
	(a-1)  For purposes of Subsection (a), a light truck that
	weighs 6,000 pounds or less is considered a passenger car.
	(b)  This section takes effect August 31, 2011.
	SECTION 110.  Sections 502.180(b) and (c), Transportation
	Code, are amended to read as follows:
	(b)  Subject to Subchapter I, the department shall issue only
	one license plate or set of plates for a vehicle during a
	[five-year] period of no less than eight years.
	(c)  On application and payment of the prescribed fee for a
	renewal of the registration of a vehicle for each [the first,
	second, third, or fourth] registration year after the issuance of a
	license plate or set of plates for the vehicle, the department shall
	issue a registration insignia for the validation of the license
	plate or plates to be attached as provided by Subsection (d).
	SECTION 111.  Section 502.184(g), Transportation Code, is
	amended to read as follows:
	(g)  Replacement license plates may be used in the
	registration year in which the plates are issued and during each
	succeeding year of a [the five-year] period of no less than eight
	years as prescribed by Section 502.180(b) if the registration
	insignia is properly attached.
	SECTION 112.  The heading to Subchapter E, Chapter 502,
	Transportation Code, is amended to read as follows:
	SUBCHAPTER E. ADMINISTRATION OF FEES [SPECIALLY DESIGNATED LICENSE
	PLATES; EXEMPTIONS FOR GOVERNMENTAL AND QUASI-GOVERNMENTAL
	VEHICLES]
	SECTION 113.  Section 502.159, Transportation Code, is
	transferred to Subchapter E, Chapter 502, Transportation Code,
	redesignated as Section 502.190, Transportation Code, and amended
	to read as follows:
	Sec. 502.190  [502.159].  SCHEDULE OF REGISTRATION FEES.
	The department shall post [compile and furnish to each county
	assessor-collector] a complete schedule of registration fees on the
	Internet [to be collected on the various makes, models, and types of
	vehicles].
	SECTION 114.  Section 502.004, Transportation Code, is
	transferred to Subchapter E, Chapter 502, Transportation Code,
	redesignated as Section 502.191, Transportation Code, and amended
	to read as follows:
	Sec. 502.191  [502.004].  COLLECTION OF FEES. (a)  A person
	may not collect a registration fee under this chapter unless the
	person is:
	(1)  an officer or employee of the department; or
	(2)  a county assessor-collector or a deputy county
	assessor-collector.
	(b)  The department may accept electronic payment by
	electronic funds transfer, credit card, or debit card of any fee
	that the department is authorized to collect under this chapter.
	(c)  The department may collect a fee for processing a
	payment by electronic funds transfer, credit card, or debit card.
	The amount of the fee must not exceed the charges incurred by the
	state because of the use of the electronic funds transfer, credit
	card, or debit card.
	(d)  For online transactions the department may collect from
	a person making payment by electronic funds transfer, credit card,
	or debit card an amount equal to the amount of any fee charged in
	accordance with Section 2054.2591, Government Code.
	(e)  If, for any reason, the payment of a fee under this
	chapter by electronic funds transfer, credit card, or debit card is
	not honored by the funding institution or by the electronic funds
	transfer, credit card, or debit card company on which the funds are
	drawn, the department may collect from the person who owes the fee
	being collected a service charge that is for the collection of that
	original amount and is in addition to the original fee. The amount
	of the service charge must be reasonably related to the expense
	incurred by the department in collecting the original amount.
	SECTION 115.  Subchapter E, Chapter 502, Transportation
	Code, is amended by adding Section 502.192 to read as follows:
	Sec. 502.192.  TRANSFER FEE. The purchaser of a used motor
	vehicle shall pay, in addition to any fee required under Chapter 501
	for the transfer of title, a transfer fee of $2.50 for the transfer
	of the registration of the motor vehicle.  The county
	assessor-collector may retain as commission for services provided
	under this subchapter half of each transfer fee collected.
	SECTION 116.  Section 502.181, Transportation Code, is
	transferred to Subchapter E, Chapter 502, Transportation Code,
	redesignated as Section 502.193, Transportation Code, and amended
	to read as follows:
	Sec. 502.193 [502.181].  PAYMENT [OF REGISTRATION FEE] BY
	CHECK DRAWN AGAINST INSUFFICIENT FUNDS. (a) A county
	assessor-collector who receives from any person a check or draft
	for [drawn on a bank or trust company in] payment of a registration
	fee for a registration year that has not ended [on a motor vehicle,
	trailer, or motorcycle sidecar] that is returned unpaid because of
	insufficient funds or no funds in the bank or trust company to the
	credit of the drawer of the check or draft shall certify the fact to
	the sheriff or a constable or highway patrol officer in the county
	after attempts to contact the person fail to result in the
	collection of payment.  The certification must be made before the
	30th day after the date the check or draft is returned unpaid and:
	(1)  be under the assessor-collector's official seal;
	(2)  include the name and address of the person who gave
	the [assessor-collector the] check or draft;
	(3)  include the license plate number and make of the
	vehicle;
	(4)  be accompanied by the check or draft; and
	(5)  be accompanied by documentation of any attempt to
	contact the person and collect payment.
	(b)  On receiving a complaint under Subsection (a) from the
	county assessor-collector, the sheriff, constable, or highway
	patrol officer shall find the person who gave the
	[assessor-collector the] check or draft, if the person is in the
	county, and demand immediate redemption of the check or draft from
	the person. If the person fails or refuses to redeem the check or
	draft, the sheriff, constable, or highway patrol officer shall:
	(1)  seize and remove the license plates and
	registration insignia from the vehicle; and
	(2)  return the license plates and registration
	insignia to the county assessor-collector.
	SECTION 117.  Section 502.182, Transportation Code, is
	transferred to Subchapter E, Chapter 502, Transportation Code,
	redesignated as Section 502.194, Transportation Code, and amended
	to read as follows:
	Sec. 502.194 [502.182].  CREDIT FOR REGISTRATION FEE PAID ON
	MOTOR VEHICLE SUBSEQUENTLY DESTROYED. (a)  The owner of a motor
	vehicle that is destroyed to the extent that it cannot afterwards be
	operated on a public highway is entitled to a registration fee
	credit if the prorated portion of the registration fee for the
	remainder of the registration year is more than $15. The owner must
	claim the credit by [:
	[(1)]  sending the registration fee receipt [and the
	license plates] for the vehicle to the department [; and
	[(2)     executing a statement on a form provided by the
	department showing that the license plates have been surrendered to
	the department].
	(b)  The department, on satisfactory proof that the vehicle
	is destroyed, shall issue a registration fee credit slip to the
	owner in an amount equal to the prorated portion of the registration
	fee for the remainder of the registration year. The owner, during
	the same or the next registration year, may use the registration fee
	credit slip as payment or part payment for the registration of
	another vehicle to the extent of the credit.
	[(c)     A statement executed under Subsection (a)(2) shall be
	delivered to a purchaser of the destroyed vehicle. The purchaser
	may surrender the statement to the department in lieu of the vehicle
	license plates.
	[(d)     The department shall adopt rules to administer this
	section.]
	SECTION 118.  Section 502.183, Transportation Code, is
	transferred to Subchapter E, Chapter 502, Transportation Code,
	redesignated as Section 502.195, Transportation Code, and amended
	to read as follows:
	Sec. 502.195  [502.183].  REFUND OF OVERCHARGED
	REGISTRATION FEE. (a)  The owner of a motor vehicle [that is
	required to be registered] who pays an annual registration fee in
	excess of the statutory amount is entitled to a refund of the
	overcharge.
	(b)  The county assessor-collector who collects the
	excessive fee shall refund an overcharge on presentation to the
	assessor-collector of satisfactory evidence of the overcharge[.
	The owner must make a claim for a refund of an overcharge] not later
	than the first [fifth] anniversary of the date the excessive
	registration fee was paid.
	(c)  A refund shall be paid from the fund in which the
	county's share of registration fees is deposited.
	SECTION 119.  Section 502.051, Transportation Code, is
	transferred to Subchapter E, Chapter 502, Transportation Code, and
	redesignated as Section 502.196, Transportation Code, to read as
	follows:
	Sec. 502.196 [502.051].  DEPOSIT OF REGISTRATION FEES IN
	STATE HIGHWAY FUND. Except as otherwise provided by this chapter,
	the board and the department shall deposit all money received from
	registration fees in the state treasury to the credit of the state
	highway fund.
	SECTION 120.  Section 502.101, Transportation Code, is
	transferred to Subchapter E, Chapter 502, Transportation Code, and
	redesignated as Section 502.197, Transportation Code, to read as
	follows:
	Sec. 502.197 [502.101].  REGISTRATION BY MAIL OR ELECTRONIC
	MEANS; SERVICE CHARGE. (a)  A county assessor-collector may
	collect a service charge of $1 from each applicant registering a
	vehicle by mail. The service charge shall be used to pay the costs
	of handling and postage to mail the registration receipt and
	insignia to the applicant.
	(b)  With the approval of the commissioners court of a
	county, a county assessor-collector may contract with a private
	entity to enable an applicant for registration to use an electronic
	off-premises location. A private entity may charge an applicant
	not more than $1 for the service provided.
	(c)  The department may adopt rules to cover the timely
	application for and issuance of registration receipts and insignia
	by mail or through an electronic off-premises location.
	SECTION 121.  Section 502.102, Transportation Code, is
	transferred to Subchapter E, Chapter 502, Transportation Code,
	redesignated as Section 502.198, Transportation Code, and amended
	to read as follows:
	Sec. 502.198  [502.102].  DISPOSITION OF FEES GENERALLY.
	(a)  Except as provided by Sections 502.1982 [502.103] and 502.357
	[502.104], this section applies to all fees collected by a county
	assessor-collector under this chapter.
	(b)  Each Monday, a county assessor-collector shall credit
	to the county road and bridge fund an amount equal to the net
	collections made during the preceding week until the amount so
	credited for the calendar year equals the total of:
	(1)  $60,000;
	(2)  $350 for each mile of county road maintained by the
	county, according to the most recent information available from the
	department, not to exceed 500 miles; and
	(3)  an additional amount of fees equal to the amount
	calculated under Section 502.1981 [502.1025].
	(c)  After the credits to the county road and bridge fund
	equal the total computed under Subsection (b), each Monday the
	county assessor-collector shall:
	(1)  credit to the county road and bridge fund an amount
	equal to 50 percent of the net collections made during the preceding
	week, until the amount so credited for the calendar year equals
	$125,000; and
	(2)  send to the department an amount equal to 50
	percent of those collections.
	(d)  After the credits to the county road and bridge fund
	equal the total amounts computed under Subsections (b) and (c)(1),
	each Monday the county assessor-collector shall send to the
	department all collections made during the preceding week.
	[(e)     Each Monday the county assessor-collector shall send
	to the department a copy of each receipt issued the previous week
	for a registration fee under this chapter.]
	SECTION 122.  Section 502.1025, Transportation Code, is
	transferred to Subchapter E, Chapter 502, Transportation Code,
	redesignated as Section 502.1981, Transportation Code, and amended
	to read as follows:
	Sec. 502.1981 [502.1025].  CALCULATION OF ADDITIONAL FEE
	AMOUNTS RETAINED BY A COUNTY. (a)  The county tax
	assessor-collector each calendar year shall calculate five percent
	of the tax and penalties collected by the county tax
	assessor-collector under Chapter 152, Tax Code, in the preceding
	calendar year. In addition, the county tax assessor-collector
	shall calculate each calendar year an amount equal to five percent
	of the tax and penalties that the comptroller:
	(1)  collected under Section 152.047, Tax Code, in the
	preceding calendar year; and
	(2)  determines are attributable to sales in the
	county.
	(b)  A county tax assessor-collector shall retain under
	Section 502.198(b) [502.102(b)] fees based on the following
	percentage of the amounts calculated under Subsection [subsection]
	(a) during each of the following fiscal years:
	(1)  [in fiscal year 2006, 90 percent;
	[(2)  in fiscal year 2007, 80 percent;
	[(3)  in fiscal year 2008, 70 percent;
	[(4)  in fiscal year 2009, 60 percent;
	[(5)  in fiscal year 2010, 50 percent;
	[(6)  in fiscal year 2011, 40 percent;
	[(7)]  in fiscal year 2012, 30 percent;
	(2) [(8)]  in fiscal year 2013, 20 percent;
	(3) [(9)]  in fiscal year 2014, 10 percent;
	(4) [(10)]  in fiscal year 2015 and succeeding years, 0
	percent.
	(c)  The county shall credit the amounts retained under
	Subsection (b) to the county road and bridge fund. Money credited
	to the fund under this section may only be used for:
	(1)  county road construction, maintenance, and
	repair;
	(2)  bridge construction, maintenance, and repair;
	(3)  the purchase of right-of-way for road or highway
	purposes; or
	(4)  the relocation of utilities for road or highway
	purposes.
	SECTION 123.  Section 502.103, Transportation Code, is
	transferred to Subchapter E, Chapter 502, Transportation Code,
	redesignated as Section 502.1982, Transportation Code, and amended
	to read as follows:
	Sec. 502.1982 [502.103].  DISPOSITION OF OPTIONAL COUNTY
	ROAD AND BRIDGE FEE. Each Monday a county assessor-collector shall
	apportion the collections for the preceding week for a fee imposed
	under Section 502.401 [502.172] by:
	(1)  crediting an amount equal to 97 percent of the
	collections to the county road and bridge fund; and
	(2)  sending to the department an amount equal to three
	percent of the collections to defray the department's costs of
	administering Section 502.401 [502.172].
	SECTION 124.  Section 502.106, Transportation Code, is
	transferred to Subchapter E, Chapter 502, Transportation Code,
	redesignated as Section 502.1983, Transportation Code, and amended
	to read as follows:
	Sec. 502.1983 [502.106].  DEPOSIT OF FEES IN
	INTEREST-BEARING ACCOUNT.  (a)  Except as provided by Sections
	502.1982 [502.103] and 502.357 [502.104], a county
	assessor-collector may:
	(1)  deposit the fees in an interest-bearing account or
	certificate in the county depository; and
	(2)  send the fees to the department not later than the
	34th day after the date the fees are due under Section 502.357
	[502.104].
	(b)  The county owns all interest earned on fees deposited
	under this section. The county treasurer shall credit the interest
	to the county general fund.
	SECTION 125.  Section 502.107, Transportation Code, is
	transferred to Subchapter E, Chapter 502, Transportation Code, and
	redesignated as Section 502.1984, Transportation Code, to read as
	follows:
	Sec. 502.1984 [502.107].  INTEREST ON FEES.  (a)  A fee
	required to be sent to the department under this chapter bears
	interest for the benefit of the state highway fund at an annual rate
	of 10 percent beginning on the 60th day after the date the county
	assessor-collector collects the fee.
	(b)  The department shall audit the registration and
	transfer fees collected and disbursed by each county
	assessor-collector and shall determine the exact amount of interest
	due on any fee not sent to the department.
	(c)  The state has a claim against a county
	assessor-collector and the sureties on the assessor-collector's
	official bond for the amount of interest due on a fee.
	SECTION 126.  Section 502.108, Transportation Code, is
	transferred to Subchapter E, Chapter 502, Transportation Code,
	redesignated as Section 502.1985, Transportation Code, and amended
	to read as follows:
	Sec. 502.1985 [502.108].  USE OF REGISTRATION FEES RETAINED
	BY COUNTY.  (a)  Money credited to the county road and bridge fund
	under Section 502.198 [502.102] or 502.1982 [502.103] may not be
	used to pay the compensation of the county judge or a county
	commissioner. The money may be used only for the construction and
	maintenance of lateral roads in the county, under the supervision
	of the county engineer.
	(b)  If there is not a county engineer, the commissioners
	court of the county may require the services of the department's
	district engineer or resident engineer to supervise the
	construction and surveying of lateral roads in the county.
	(c)  A county may use money allocated to it under this
	chapter to:
	(1)  pay obligations issued in the construction or
	improvement of any roads, including state highways in the county;
	(2)  improve the roads in the county road system; or
	(3)  construct new roads.
	(d)  To the maximum extent possible, contracts for roads
	constructed by a county using funds provided under this chapter
	should be awarded by competitive bids.
	SECTION 127.  Section 502.110, Transportation Code, is
	transferred to Subchapter E, Chapter 502, Transportation Code, and
	redesignated as Section 502.1986, Transportation Code, to read as
	follows:
	Sec. 502.1986 [502.110].  CONTINGENT PROVISION FOR
	DISTRIBUTION OF FEES BETWEEN STATE AND COUNTIES.  If the method of
	distributing vehicle registration fees collected under this
	chapter between the state and counties is declared invalid because
	of inequality of collection or distribution of those fees, 60
	percent of each fee shall be distributed to the county collecting
	the fee and 40 percent shall be sent to the state in the manner
	provided by this chapter.
	SECTION 128.  The heading to Subchapter F, Chapter 502,
	Transportation Code, is amended to read as follows:
	SUBCHAPTER F.  REGULAR REGISTRATION FEES [SPECIALIZED LICENSE
	PLATES; EXEMPTIONS FOR PRIVATELY OWNED VEHICLES]
	SECTION 129.  Section 502.160, Transportation Code, as
	effective September 1, 2011, is transferred to Subchapter F,
	Chapter 502, Transportation Code, and redesignated as Section
	502.251, Transportation Code, to read as follows:
	Sec. 502.251  [502.160].  FEE: MOTORCYCLE OR MOPED. The
	fee for a registration year for registration of a motorcycle or
	moped is $30.
	SECTION 130.  Section 502.162, Transportation Code, as
	effective September 1, 2011, is transferred to Subchapter F,
	Chapter 502, Transportation Code, redesignated as Section 502.253,
	Transportation Code, and amended to read as follows:
	Sec. 502.253 [502.162].  FEE: VEHICLES THAT WEIGH MORE THAN
	6,000 POUNDS. [(a)] The fee for a registration year for
	registration of a vehicle with a gross weight of more than 6,000
	pounds is as follows unless otherwise provided in this chapter:
	Weight Classification Fee Schedule
	in pounds
	6,001-10,000 $54.00
	10,001-18,000 $110.00
	18,001-25,999 $205.00
	26,000-40,000 $340.00
	40,001-54,999 $535.00
	55,000-70,000 $740.00
	70,001-80,000 $840.00
	[(b)     The gross weight of a vehicle is the actual weight of
	the vehicle, fully equipped with a body and other equipment, as
	certified by a public weigher or a license and weight inspector of
	the Department of Public Safety, plus its net carrying capacity.
	[(c)     The net carrying capacity of a vehicle other than a bus
	is the heaviest net load to be carried on the vehicle, but not less
	than the manufacturer's rated carrying capacity.
	[(d)     The net carrying capacity of a bus is computed by
	multiplying its seating capacity by 150 pounds. The seating
	capacity of a bus is:
	[(1)     the manufacturer's rated seating capacity,
	excluding the operator's seat; or
	[(2)     if the manufacturer has not rated the vehicle for
	seating capacity, a number computed by allowing one passenger for
	each 16 inches of seating on the bus, excluding the operator's
	seat.]
	SECTION 131.  Section 502.166, Transportation Code, as
	effective September 1, 2011, is transferred to Subchapter F,
	Chapter 502, Transportation Code, redesignated as Section 502.254,
	Transportation Code, and amended to read as follows:
	Sec. 502.254 [502.166].  FEE: TRAILER, TRAVEL TRAILER, OR
	SEMITRAILER. (a) The fee for a registration year for registration
	of a trailer, travel trailer, or semitrailer with a gross weight of
	6,000 pounds or less is $45.00.
	(b) [(a-1)]  The fee for a registration year for
	registration of a trailer, travel trailer, or semitrailer with a
	gross weight of more than 6,000 pounds is calculated by gross weight
	according to Section 502.253 [502.162].
	[(b)     The gross weight of a trailer or semitrailer is the
	actual weight of the vehicle, as certified by a public weigher or a
	license and weight inspector of the Department of Public Safety,
	plus its net carrying capacity.
	[(c)     The net carrying capacity of a vehicle is the heaviest
	net load to be carried on the vehicle, but not less than the
	manufacturer's rated carrying capacity.
	[(d)     The department may issue specially designed license
	plates for rental trailers and travel trailers that include, as
	appropriate, the words "rental trailer" or "travel trailer."
	[(e)  In this section:
	[(1)     "Rental fleet" means five or more vehicles that
	are:
	[(A)  owned by the same owner;
	[(B)     offered for rent or rented without drivers;
	and
	[(C)     designated by the owner in the manner
	prescribed by the department as a rental fleet.
	[(2)  "Rental trailer" means a utility trailer that:
	[(A)     has a gross weight of 4,000 pounds or less;
	and
	[(B)  is part of a rental fleet.
	[(3)     "Travel trailer" means a house trailer-type
	vehicle or a camper trailer that is:
	[(A)     less than eight feet in width or 40 feet in
	length, exclusive of any hitch installed on the vehicle; and
	[(B)     designed primarily for use as temporary
	living quarters in connection with recreational, camping, travel,
	or seasonal use and not as a permanent dwelling; provided that
	"travel trailer" shall not include a utility trailer, enclosed
	trailer, or other trailer not having human habitation as its
	primary purpose.]
	SECTION 132.  Section 502.167, Transportation Code, as
	effective September 1, 2011, is transferred to Subchapter F,
	Chapter 502, Transportation Code, redesignated as Section 502.255,
	Transportation Code, and amended to read as follows:
	Sec. 502.255 [502.167].  TRUCK-TRACTOR OR COMMERCIAL MOTOR
	VEHICLE COMBINATION FEE; SEMITRAILER TOKEN FEE.  (a) This section
	applies only to a truck-tractor or commercial motor vehicle with a
	gross weight of more than 10,000 pounds that is used or is to be used
	in combination with a semitrailer that has a gross weight of more
	than 6,000 pounds.
	(b)  The fee for a registration year for registration of a
	truck-tractor or commercial motor vehicle is calculated by gross
	weight according to Section 502.253 [502.162].
	(c)  The fee for a registration year for registration of a
	semitrailer used in the manner described by Subsection (a),
	regardless of the date the semitrailer is registered, is:
	(1)  $30, for a semitrailer being propelled by a power
	unit for which a permit under Section 623.011 has been issued; or
	(2)  $15, for a semitrailer being propelled by a power
	unit for which a permit under Section 623.011 has not been issued.
	(d)  A registration made under Subsection (c) is valid only
	when the semitrailer is used in the manner described by Subsection
	(a).
	(e)  For registration purposes, a semitrailer converted to a
	trailer by means of an auxiliary axle assembly retains its status as
	a semitrailer.
	(f)  A combination of vehicles may not be registered under
	this section for a combined gross weight of less than 18,000 pounds.
	(g)  This section does not apply to:
	(1)  a combination of vehicles that includes a vehicle
	that has a distinguishing license plate under Section 502.146
	[504.504];
	(2)  a truck-tractor or commercial motor vehicle
	registered or to be registered with $5 distinguishing license
	plates for which the vehicle is eligible under this chapter;
	(3)  a truck-tractor or commercial motor vehicle used
	exclusively in combination with a semitrailer of the travel trailer
	[housetrailer] type; or
	(4)  a vehicle registered or to be registered:
	(A)  with a temporary registration permit;
	(B)  under Section 502.433 [502.163]; or
	(C)  under Section 502.435 [502.188].
	(h)  The department may adopt rules to administer this
	section.
	(i)  The department may issue specially designed license
	plates for token trailers.
	(j)  A person may register a semitrailer under this section
	[for a registration period of five consecutive years] if the
	person:
	(1)   applies to the department for [the five-year]
	registration;
	(2)  provides proof of the person's eligibility to
	register the vehicle under this subsection as required by the
	department; and
	(3)  pays a fee of $15, plus any applicable fee under
	Section 502.401 [502.172], for each year included in the
	registration period.
	[(k)     If during the five-year registration period for a
	vehicle registered under Subsection (j) the amount of a fee imposed
	under that subsection is increased, the owner of the vehicle is
	liable to the department for the amount of the increase. If the
	amount of a fee is decreased, the owner of the vehicle is not
	entitled to a refund.
	[(l)  In this section:
	[(1)     "Combined gross weight" means the empty weight of
	the truck-tractor or commercial motor vehicle combined with the
	empty weight of the heaviest semitrailer used or to be used in
	combination with the truck-tractor or commercial motor vehicle plus
	the heaviest net load to be carried on the combination during the
	registration year.
	[(2)     "Empty weight" means the unladen weight of the
	truck-tractor or commercial motor vehicle and semitrailer
	combination fully equipped, as certified by a public weigher or
	license and weight inspector of the Department of Public Safety.
	[(3)  "Token trailer" means a semitrailer that:
	[(A)     has a gross weight of more than 6,000
	pounds; and
	[(B)     is operated in combination with a truck or a
	truck-tractor that has been issued:
	[(i)  an apportioned license plate;
	[(ii)  a combination license plate; or
	[(iii)  a forestry vehicle license plate.
	[(4)     "Apportioned license plate" means a license plate
	issued in lieu of truck license plates or combination license
	plates to a motor carrier in this state who proportionally
	registers a vehicle owned by the carrier in one or more other
	states.
	[(5)     "Combination license plate" means a license plate
	issued for a truck or truck-tractor that:
	[(A)     has a manufacturer's rated carrying
	capacity of more than one ton; and
	[(B)     is used or intended to be used in
	combination with a semitrailer that has a gross weight of more than
	6,000 pounds.]
	SECTION 133.  Section 502.165, Transportation Code, as
	effective September 1, 2011, is transferred to Subchapter F,
	Chapter 502, Transportation Code, redesignated as Section 502.256,
	Transportation Code, and amended to read as follows:
	Sec. 502.256 [502.165].  FEE: ROAD TRACTOR. The fee for a
	registration year for registration of a road tractor is the fee
	prescribed by weight as certified by a public weigher or a license
	and weight inspector of the Department of Public Safety under
	Section 502.252 [502.161] or 502.253 [502.162], as applicable.
	SECTION 134.  The heading to Subchapter G, Chapter 502,
	Transportation Code, is amended to read as follows:
	SUBCHAPTER G. ADDITIONAL FEES [TEMPORARY REGISTRATION]
	SECTION 135.  Section 502.1705, Transportation Code, as
	effective September 1, 2011, is transferred to Subchapter G,
	Chapter 502, Transportation Code, redesignated as Section 502.356,
	Transportation Code, and amended to read as follows:
	Sec. 502.356 [502.1705].  [ADDITIONAL FEE FOR] AUTOMATED
	REGISTRATION AND TITLING [TITLE] SYSTEM. (a) In addition to other
	registration fees for a license plate or set of license plates or
	other device used as the registration insignia, a fee of $1 shall be
	collected.
	(b)  The department may use money collected under this
	section to provide for or enhance:
	(1)  automated on-premises and off-premises
	registration; and
	(2)  services related to the titling of vehicles.
	SECTION 136.  Section 502.1715, Transportation Code, as
	amended by Chapters 892 (S.B. 1670) and 1108 (H.B. 2337), Acts of
	the 79th Legislature, Regular Session, 2005, is transferred to
	Subchapter G, Chapter 502, Transportation Code, redesignated as
	Section 502.357, Transportation Code, and reenacted and amended to
	read as follows:
	Sec. 502.357 [502.1715].  FINANCIAL RESPONSIBILITY
	[ADDITIONAL FEE FOR CERTAIN DEPARTMENT] PROGRAMS.  (a)  In
	addition to other fees imposed for registration of a motor vehicle,
	at the time of application for registration or renewal of
	registration of a motor vehicle for which the owner is required to
	submit evidence of financial responsibility under Section 502.046
	[502.153], the applicant shall pay a fee of $1. In addition to other
	fees imposed for registration of a motor vehicle, at the time of
	application for registration of a motor vehicle that is subject to
	Section 501.0234, the applicant shall pay a fee of $1. Fees
	collected under this section shall be remitted weekly to the
	department.
	(b)  Fees collected under this section shall be deposited to
	the credit of the state highway fund.  Subject to appropriations,
	the money shall be used by the Department of Public Safety to:
	(1)  support the Department of Public Safety's
	reengineering of the driver's license system to provide for the
	issuance by the Department of Public Safety of a driver's license or
	personal identification certificate, to include use of image
	comparison technology;
	(2)  establish and maintain a system to support the
	driver responsibility program under Chapter 708; and
	(3)  make lease payments to the master lease purchase
	program for the financing of the driver's license reengineering
	project.
	(c)  Fees collected under this section shall be deposited to
	the credit of the state highway fund.  Subject to appropriation, the
	money may be used by the Department of Public Safety, the Texas
	Department of Insurance, the Department of Information Resources,
	and the department to carry out Subchapter N, Chapter 601.
	(d)  The Department of Public Safety, the Texas Department of
	Insurance, the Department of Information Resources, and the
	department shall jointly adopt rules and develop forms necessary to
	administer this section.
	SECTION 137.  Section 502.1675, Transportation Code, is
	transferred to Subchapter G, Chapter 502, Transportation Code,
	redesignated as Section 502.358, Transportation Code, and amended
	to read as follows:
	Sec. 502.358 [502.1675].  TEXAS EMISSIONS REDUCTION PLAN
	SURCHARGE. (a)  In addition to the registration fees charged under
	Section 502.255 [502.167], a surcharge is imposed on the
	registration of a truck-tractor or commercial motor vehicle under
	that section in an amount equal to 10 percent of the total fees due
	for the registration of the truck-tractor or commercial motor
	vehicle under that section.
	(b)  The county tax assessor-collector shall remit the
	surcharge collected under this section to the comptroller at the
	time and in the manner prescribed by the comptroller for deposit in
	the Texas emissions reduction plan fund.
	(c)  This section expires August 31, 2019.
	SECTION 138.  Section 502.171, Transportation Code, is
	transferred to Subchapter G, Chapter 502, Transportation Code,
	redesignated as Section 502.359, Transportation Code, and amended
	to read as follows:
	Sec. 502.359  [502.171].  ADDITIONAL FEE FOR CERTAIN
	VEHICLES USING DIESEL MOTOR. (a)  The registration fee under this
	chapter for a motor vehicle other than a passenger car, a truck with
	a gross vehicle weight [manufacturer's rated carrying capacity] of
	18,000 pounds [two tons] or less, or a vehicle registered in
	combination under Section 502.255 [502.167] is increased by 11
	percent if the vehicle has a diesel motor.
	(b)  The [A county assessor-collector shall show on the]
	registration receipt for a motor vehicle, other than a passenger
	car or a truck  with a gross vehicle weight [manufacturer's rated
	carrying capacity] of 18,000 pounds [two tons] or less, must show
	that the vehicle has a diesel motor.
	(c)  The department may adopt rules to administer this
	section.
	SECTION 139.  The heading to Subchapter H, Chapter 502,
	Transportation Code, is amended to read as follows:
	SUBCHAPTER H.  OPTIONAL FEES [OFFENSES AND PENALTIES]
	SECTION 140.  Section 502.172, Transportation Code, is
	transferred to Subchapter H, Chapter 502, Transportation Code,
	redesignated as Section 502.401, Transportation Code, and amended
	to read as follows:
	Sec. 502.401 [502.172].  OPTIONAL COUNTY FEE FOR ROAD AND
	BRIDGE FUND.  (a)  The commissioners court of a county by order may
	impose an additional fee, not to exceed $10, for registering a
	vehicle in the county.
	(b)  A vehicle that may be registered under this chapter
	without payment of a registration fee may be registered in a county
	imposing a fee under this section without payment of the additional
	fee.
	(c)  A fee imposed under this section may take effect only on
	January 1 of a year. The county must adopt the order and notify the
	department not later than September 1 of the year preceding the year
	in which the fee takes effect.
	(d)  A fee imposed under this section may be removed. The
	removal may take effect only on January 1 of a year. A county may
	remove the fee only by:
	(1)  rescinding the order imposing the fee; and
	(2)  notifying the department not later than September
	1 of the year preceding the year in which the removal takes effect.
	(e)  The county assessor-collector of a county imposing a fee
	under this section shall collect the additional fee for a vehicle
	when other fees imposed under this chapter are collected.
	(f)  The department shall collect the additional fee on a
	vehicle that is owned by a resident of a county imposing a fee under
	this section [and] that[, under this chapter,] must be registered
	directly with the department. The department shall send all fees
	collected for a county under this subsection to the county
	treasurer to be credited to the county road and bridge fund.
	(g)  The department shall adopt rules [and develop forms]
	necessary to administer registration [by mail] for a vehicle being
	registered in a county imposing a fee under this section.
	SECTION 141.  Section 502.1725, Transportation Code, is
	transferred to Subchapter H, Chapter 502, Transportation Code,
	redesignated as Section 502.402, Transportation Code, and amended
	to read as follows:
	Sec. 502.402 [502.1725].  OPTIONAL COUNTY FEE FOR
	TRANSPORTATION PROJECTS. (a) This section applies only to:
	(1)  a county:
	(A) [(1)]  that borders the United Mexican
	States;
	(B) [(2)]  that has a population of more than
	300,000; and
	(C) [(3)]  in which the largest municipality has a
	population of less than 300,000; and
	(2)  a county that has a population of less than 50,000
	that:
	(A)  borders the United Mexican States; and
	(B)  contains at least one federal military base.
	(b)  The commissioners court of a county by order may impose
	an additional fee, not to exceed $10, for [registering] a vehicle
	registered in the county.
	(c)  A vehicle that may be registered under this chapter
	without payment of a registration fee may be registered [in a county
	imposing a fee] under this section without payment of the
	additional fee.
	(d)  A fee imposed under this section may take effect [only
	on January 1 of a year.     The county must adopt the order] and
	[notify the department not later than September 1 of the year
	preceding the year in which the fee takes effect.
	[(e)  A fee imposed under this section may] be removed in
	accordance with the requirements of Section 502.401[.   The removal
	may take effect only on January 1 of a year.   A county may remove the
	fee only by:
	[(1)  rescinding the order imposing the fee;  and
	[(2)     notifying the department not later than September
	1 of the year preceding the year in which the removal takes effect].
	(e) [(f)]  The [county assessor-collector of a county
	imposing a fee under this section shall collect the] additional fee
	shall be collected for a vehicle when other fees imposed under this
	chapter are collected.  The [county shall send the] fee revenue
	collected shall be sent:
	(1)  to the regional mobility authority of the county
	to fund long-term transportation projects in the county if the
	county is included in an authority; or
	(2)  to the county treasurer to be credited to the
	county public transportation fund if the county is not included in
	an authority.
	(f) [(g)     The department shall collect the additional fee on
	a vehicle that is owned by a resident of a county imposing a fee
	under this section and that, under this chapter, must be registered
	directly with the department.     The department shall send all fees
	collected for a county under this subsection to the regional
	mobility authority of the county to fund long-term transportation
	projects in the county.
	[(h)]  The department shall adopt rules [and develop forms]
	necessary to administer registration [by mail] for a vehicle being
	registered in a county imposing a fee under this section.
	SECTION 142.  Section 502.173, Transportation Code, is
	transferred to Subchapter H, Chapter 502, Transportation Code,
	redesignated as Section 502.403, Transportation Code, and amended
	to read as follows:
	Sec. 502.403 [502.173].  OPTIONAL COUNTY FEE FOR CHILD
	SAFETY.  (a)  The commissioners court of a county that has a
	population greater than 1.3 million and in which a municipality
	with a population of more than one million is primarily located may
	impose by order an additional fee of not less than 50 cents or more
	than $1.50 for [registering] a vehicle registered in the county.
	The commissioners court of any other county may impose by order an
	additional fee of not more than $1.50 for registering a vehicle in
	the county.
	(b)  A vehicle that may be registered under this chapter
	without payment of a registration fee may be registered [in a county
	imposing a fee under this section] without payment of the
	additional fee.
	(c)  A fee imposed under this section may take effect [only
	on January 1 of a year. The county must adopt the order] and [notify
	the department not later than September 10 of the year preceding the
	year in which the fee takes effect.
	[(d)  A fee imposed under this section may] be removed in
	accordance with the provisions of Section 502.401. [The removal
	may take effect only on January 1 of a year. A county may remove the
	fee only by:
	[(1)  rescinding the order imposing the fee; and
	[(2)     notifying the department not later than September
	1 of the year preceding the year in which the removal takes effect.]
	(d) [(e)]  The [county assessor-collector of a county
	imposing a fee under this section shall collect the] additional fee
	shall be collected for a vehicle when other fees imposed under this
	chapter are collected.
	(e) [(f)]  A county imposing a fee under this section may
	deduct for administrative costs an amount of not more than 10
	percent of the revenue it receives from the fee. The county may
	also deduct from the fee revenue an amount proportional to the
	percentage of county residents who live in unincorporated areas of
	the county. After making the deductions provided for by this
	subsection, the county shall send the remainder of the fee revenue
	to the municipalities in the county according to their population.
	(f) [(g)]  A municipality with a population greater than
	850,000 shall deposit revenue from a fee imposed under this
	subsection to the credit of the child safety trust fund created
	under Section 106.001, Local Government Code. A municipality with a
	population less than 850,000 shall use revenue from a fee imposed
	under this section in accordance with Article 102.014(g), Code of
	Criminal Procedure.
	(g) [(h)]  After deducting administrative costs, a county
	may use revenue from a fee imposed under this section only for a
	purpose permitted by Article 102.014(g) [Subsection (g), Article
	102.014], Code of Criminal Procedure.
	SECTION 143.  Section 502.174, Transportation Code, is
	transferred to Subchapter H, Chapter 502, Transportation Code,
	redesignated as Section 502.404, Transportation Code, and amended
	to read as follows:
	Sec. 502.404  [502.174].  VOLUNTARY ASSESSMENT FOR YOUNG
	FARMER LOAN GUARANTEES.  (a)  When a person registers a commercial
	motor vehicle under Section 502.433 [502.163], the person shall pay
	a voluntary assessment of $5.
	(b)  The county assessor-collector shall send an assessment
	collected under this section to the comptroller, at the time and in
	the manner prescribed by the Texas Agricultural Finance Authority,
	for deposit in the Texas agricultural fund.
	(c)  The Texas Agricultural Finance Authority shall
	prescribe procedures under which an assessment collected under this
	section may be refunded. The county assessor-collector of the
	county in which an assessment is collected shall:
	(1)  implement the refund procedures; and
	(2)  provide notice of those procedures to a person
	paying an assessment at the time of payment.
	SECTION 144.  Section 502.1745, Transportation Code, is
	transferred to Subchapter H, Chapter 502, Transportation Code,
	redesignated as Section 502.405, Transportation Code, and amended
	to read as follows:
	Sec. 502.405 [502.1745].  DONOR EDUCATION, AWARENESS, AND
	REGISTRY PROGRAM [VOLUNTARY FEE].  (a)  The department shall
	provide to each county assessor-collector the educational
	materials for prospective donors provided as required by the Donor
	Education, Awareness, and Registry Program of Texas under Chapter
	49, Health and Safety Code.  The [A county assessor-collector shall
	make the] educational materials shall be made available in each
	office authorized to accept applications for registration of motor
	vehicles.
	(b)  A person may elect to pay [county assessor-collector
	shall collect] an additional fee of $1 for the registration or
	renewal of registration of a motor vehicle to pay the costs of the
	Donor Education, Awareness, and Registry Program of Texas,
	established under Chapter 49, Health and Safety Code, and of the
	Texas Organ, Tissue, and Eye Donor Council, established under
	Chapter 113, Health and Safety Code [, if the person registering or
	renewing the registration of a motor vehicle opts to pay the
	additional fee].  Notwithstanding any other provision of this
	chapter, [the county assessor-collector shall remit] all fees
	collected under this subsection shall be remitted to the
	comptroller, who shall maintain the identity of the source of the
	fees.
	(c)  Three percent of all money collected under this section
	may be appropriated only to the department to administer this
	section.
	SECTION 145.  The heading to Subchapter I, Chapter 502,
	Transportation Code, is amended to read as follows:
	SUBCHAPTER I.  ALTERNATE REGISTRATION FEES [TRANSFER AND REMOVAL OF
	LICENSE PLATES FOR THE SALE OR TRANSFER OF USED VEHICLES]
	SECTION 146.  Section 502.164, Transportation Code, is
	transferred to Subchapter I, Chapter 502, Transportation Code, and
	redesignated as Section 502.431, Transportation Code, to read as
	follows:
	Sec. 502.431 [502.164].  FEE: MOTOR VEHICLE USED
	EXCLUSIVELY TO TRANSPORT AND SPREAD FERTILIZER. The fee for a
	registration year for registration of a motor vehicle designed or
	modified and used exclusively to transport to the field and spread
	fertilizer, including agricultural limestone, is $75.
	SECTION 147.  Section 502.1586, Transportation Code, is
	transferred to Subchapter I, Chapter 502, Transportation Code,
	redesignated as Section 502.432, Transportation Code, and amended
	to read as follows:
	Sec. 502.432 [502.1586].  [REGISTRATION PERIOD FOR
	TRUCK-TRACTOR OR COMMERCIAL MOTOR] VEHICLE TRANSPORTING SEASONAL
	AGRICULTURAL PRODUCTS. (a)  The department shall provide for a
	monthly registration period for a truck-tractor or a commercial
	motor vehicle [that]:
	(1)  that is used exclusively to transport a seasonal
	agricultural product; [and]
	(2)  that would otherwise be registered for a vehicle
	registration year; and
	(3)  for which the owner can show proof of payment of
	the heavy vehicle use tax or exemption.
	(b)  The department shall [adopt forms for registration
	under this section. An applicant must indicate the number of months
	registration is applied for.
	[(c)  The department shall design,] prescribe [, and
	furnish] a registration receipt that is valid until the expiration
	of the designated registration period.
	(c) [(d)]  The registration fee for a registration under
	this section is computed at a rate of one-twelfth the annual
	registration fee under Section 502.253 [502.162], 502.255
	[502.163], or 502.433 [502.167], as applicable, multiplied by the
	number of months in the registration period specified in the
	application for the registration, which may not be less than one
	month or longer than six months.
	(d) [(e)     A person issued a registration under this section
	commits an offense if the person, during the registration period
	for the truck-tractor or commercial motor vehicle, uses the
	truck-tractor or commercial motor vehicle for a purpose other than
	to transport a seasonal agricultural product.
	[(f)     A truck-tractor or commercial motor vehicle may not be
	registered under this section for a registration period that is
	less than one month or longer than six months.
	[(g)]  For purposes of this section, "to transport a seasonal
	agricultural product" includes any transportation activity
	necessary for the production, harvest, or delivery of an
	agricultural product that is produced seasonally.
	SECTION 148.  Section 502.163, Transportation Code, is
	transferred to Subchapter I, Chapter 502, Transportation Code,
	redesignated as Section 502.433, Transportation Code, and amended
	to read as follows:
	Sec. 502.433 [502.163].  FEE: COMMERCIAL FARM MOTOR VEHICLE
	[USED PRIMARILY FOR FARM PURPOSES; OFFENSE].  (a)  The registration
	fee for a commercial motor vehicle as a farm vehicle is 50 percent
	of the applicable fee under Section 502.253 [502.162] if the
	vehicle's owner will use the vehicle for commercial purposes only
	to transport:
	(1)  the person's own poultry, dairy, livestock,
	livestock products, timber in its natural state, or farm products
	to market or another place for sale or processing;
	(2)  laborers from their place of residence to the
	owner's farm or ranch; or
	(3)  without charge, materials, tools, equipment, or
	supplies from the place of purchase or storage to the owner's farm
	or ranch exclusively for the owner's use or for use on the farm or
	ranch.
	(b)  A commercial motor vehicle may be registered under this
	section despite its use for transporting without charge the owner
	or a member of the owner's family:
	(1)  to attend church or school;
	(2)  to visit a doctor for medical treatment or
	supplies; or
	(3)  for other necessities of the home or family.
	(c)  Subsection (b) does not permit the use of a vehicle
	registered under this section in connection with gainful employment
	other than farming or ranching.
	(d)  The department shall provide distinguishing license
	plates for a vehicle registered under this section.
	[(e)     The owner of a commercial motor vehicle registered
	under this section commits an offense if the person uses or permits
	to be used the vehicle for a purpose other than one permitted by
	this section. Each use or permission for use in violation of this
	section is a separate offense.
	[(f)     An offense under this section is a misdemeanor
	punishable by a fine of not less than $25 or more than $200.]
	SECTION 149.  Section 502.351, Transportation Code, is
	transferred to Subchapter I, Chapter 502, Transportation Code,
	redesignated as Section 502.434, Transportation Code, and amended
	to read as follows:
	Sec. 502.434 [502.351].  FARM VEHICLES: EXCESS WEIGHT. (a)
	The owner of a registered commercial motor vehicle, truck-tractor,
	trailer, or semitrailer may obtain a short-term permit to haul
	loads of a weight more than that for which the vehicle is registered
	by paying an additional fee before the additional weight is hauled
	to transport:
	(1)  the person's own seasonal agricultural products to
	market or another point for sale or processing;
	(2)  seasonal laborers from their place of residence to
	a farm or ranch; or
	(3)  materials, tools, equipment, or supplies, without
	charge, from the place of purchase or storage to a farm or ranch
	exclusively for use on the farm or ranch.
	(b)  A permit may not be issued under this section for a
	period that is less than one month or that:
	(1)  is greater than one year; or
	(2)  extends beyond the expiration of the registration
	year for the vehicle.
	(c)  A permit issued under this section for a quarter must be
	for a calendar quarter.
	(d)  The fee for a permit under this section is a percentage
	of the difference between the registration fee otherwise prescribed
	[by this chapter] for the vehicle and the annual fee for the desired
	weight, as follows:
	One month (30 consecutive days) 10 percent
	One quarter 30 percent
	Two quarters 60 percent
	Three quarters 90 percent
	(e)  The department shall design, prescribe, and furnish a
	sticker, plate, or other means of indicating the additional weight
	and the registration period for each vehicle registered under this
	section.
	SECTION 150.  Section 502.188, Transportation Code, is
	transferred to Subchapter I, Chapter 502, Transportation Code,
	redesignated as Section 502.435, Transportation Code, and amended
	to read as follows:
	Sec. 502.435 [502.188].  CERTAIN SOIL CONSERVATION
	EQUIPMENT. (a)  The owner of a truck-tractor, semitrailer, or
	low-boy trailer used on a highway exclusively to transport the
	owner's soil conservation machinery or equipment used in clearing
	real property, terracing, or building farm ponds, levees, or
	ditches may register the vehicle for a fee equal to 50 percent of
	the fee otherwise prescribed by this chapter for the vehicle.
	(b)  An owner may register only one truck-tractor and only
	one semitrailer or low-boy trailer under this section.
	(c)  An owner [applying for registration under this section]
	must certify [submit a statement] that the vehicle is to be used
	only as provided by Subsection (a).
	(d)  The registration receipt issued for a vehicle
	registered under this section must be carried in or on the vehicle
	and [shall] state the nature of the operation for which the vehicle
	may be used. [The receipt must be carried at all times in or on the
	vehicle to permit ready inspection.]
	(e)  A vehicle to which this section applies that is operated
	on a public highway in violation of this section is considered to be
	operated while unregistered and is immediately subject to the
	applicable registration fees and penalties prescribed by this
	chapter.
	SECTION 151.  Chapter 502, Transportation Code, is amended
	by adding Subchapter J to read as follows:
	SUBCHAPTER J.  REGISTRATIONS EXEMPT FROM FEES
	SECTION 152.  Section 502.201, Transportation Code, as
	effective September 1, 2011, is transferred to Subchapter J,
	Chapter 502, Transportation Code, as added by this Act,
	redesignated as Section 502.451, Transportation Code, and amended
	to read as follows:
	Sec. 502.451 [502.201].  [LICENSE PLATES FOR] EXEMPT
	VEHICLES.  (a)  Before license plates are issued or delivered to
	the owner of a vehicle that is exempt by law from payment of
	registration fees, the department must approve the application for
	registration. The department may not approve an application if
	there is the appearance that:
	(1)  the vehicle was transferred to the owner or
	purported owner:
	(A)  for the sole purpose of evading the payment
	of registration fees; or
	(B)  in bad faith; or
	(2)  the vehicle is not being used in accordance with
	the exemption requirements.
	(b)  The department shall revoke the registration of a
	vehicle issued license plates under this section and may recall the
	plates if the vehicle is no longer:
	(1)  owned and operated by the person whose ownership
	of the vehicle qualified the vehicle for the exemption; or
	(2)  used in accordance with the exemption
	requirements.
	(c) [(d)]  The department shall provide by rule for the
	issuance of specially designated license plates for vehicles that
	are exempt by law. Except as provided by Subsection (f) [(g)], the
	license plates must bear the word "exempt."
	(d) [(e)]  A license plate under Subsection (c) [(d)] is not
	issued annually, but remains on the vehicle until:
	(1)  the registration is revoked as provided by
	Subsection (b); or
	(2)  the plate is lost, stolen, or mutilated.
	(e) [(f)]  A person who operates on a public highway a
	vehicle after the registration has been revoked is liable for the
	penalties for failing to register a vehicle.
	(f) [(g)]  The department shall provide by rule for the
	issuance of regularly designed license plates not bearing the word
	"exempt" for a vehicle that is exempt by law and that is:
	(1)  a law enforcement vehicle, if the agency certifies
	to the department that the vehicle will be dedicated to law
	enforcement activities;
	(2)  a vehicle exempt from inscription requirements
	under a rule adopted as provided by Section 721.003; or
	(3)  a vehicle exempt from inscription requirements
	under an order or ordinance adopted by a governing body of a
	municipality or commissioners court of a county as provided by
	Section 721.005, if the applicant presents a copy of the order or
	ordinance.
	SECTION 153.  Section 502.2015, Transportation Code, is
	transferred to Subchapter J, Chapter 502, Transportation Code, as
	added by this Act, redesignated as Section 502.452, Transportation
	Code, and amended to read as follows:
	Sec. 502.452 [502.2015].  LIMITATION ON ISSUANCE OF EXEMPT
	LICENSE PLATES; SEIZURE OF CERTAIN VEHICLES.  (a)  The department
	may not issue exempt license plates for a vehicle owned by the
	United States, this state, or a political subdivision of this state
	unless when application is made for registration of the vehicle,
	the person who under Section 502.453 [502.202] has authority to
	certify to the department that the vehicle qualifies for
	registration under that section also certifies in writing to the
	department that there is printed on each side of the vehicle, in
	letters that are at least two inches high or in an emblem that is at
	least 100 square inches in size, the name of the agency, department,
	bureau, board, commission, or officer of the United States, this
	state, or the political subdivision of this state that has custody
	of the vehicle. The letters or emblem must be of a color
	sufficiently different from the body of the vehicle to be clearly
	legible from a distance of 100 feet.
	(b)  The department may not issue exempt license plates for a
	vehicle owned by a person other than the United States, this state,
	or a political subdivision of this state unless, when application
	is made for registration of the vehicle, the person who under
	Section 502.453 [502.202] has authority to certify to the
	department that the vehicle qualifies for registration under that
	section also certifies in writing to the department that the name of
	the owner of the vehicle is printed on the vehicle in the manner
	prescribed by Subsection (a).
	(c)  A peace officer listed in Article 2.12, Code of Criminal
	Procedure, may seize a motor vehicle displaying exempt license
	plates if the vehicle is:
	(1)  operated on a public highway; and
	(2)  not identified in the manner prescribed by
	Subsection (a) or (b), unless the vehicle is covered by Subsection
	(f).
	(d)  A peace officer who seizes a motor vehicle under
	Subsection (c) may require that the vehicle be:
	(1)  moved to the nearest place of safety off the
	main-traveled part of the highway; or
	(2)  removed and placed in the nearest vehicle storage
	facility designated or maintained by the law enforcement agency
	that employs the peace officer.
	(e)  To obtain the release of the vehicle, in addition to any
	other requirement of law, the owner of a vehicle seized under
	Subsection (c) must:
	(1)  remedy the defect by identifying the vehicle as
	required by Subsection (a) or (b); or
	(2)  agree in writing with the law enforcement agency
	to provide evidence to that agency, before the 10th day after the
	date the vehicle is released, that the defect has been remedied by
	identifying the vehicle as required by Subsection (a) or (b).
	(f)  Subsections (a) and (b) do not apply to a vehicle to
	which Section 502.451(f) [502.201(g) or 502.206] applies.
	(g)  For purposes of this section, an exempt license plate is
	a license plate issued by the department that is plainly marked with
	the word "exempt."
	SECTION 154.  Section 502.202, Transportation Code, is
	transferred to Subchapter J, Chapter 502, Transportation Code, as
	added by this Act, redesignated as Section 502.453, Transportation
	Code, and amended to read as follows:
	Sec. 502.453 [502.202].  GOVERNMENT-OWNED VEHICLES; PUBLIC
	SCHOOL BUSES; FIRE-FIGHTING VEHICLES; COUNTY MARINE LAW
	ENFORCEMENT VEHICLES.  (a)  The owner of a motor vehicle, trailer,
	or semitrailer may annually apply for registration under Section
	502.451 [502.201] and is exempt from the payment of a registration
	fee under this chapter if the vehicle is:
	(1)  owned by and used exclusively in the service of:
	(A)  the United States;
	(B)  this state; or
	(C)  a county, municipality, or school district in
	this state;
	(2)  owned by a commercial transportation company and
	used exclusively to provide public school transportation services
	to a school district under Section 34.008, Education Code;
	(3)  designed and used exclusively for fire fighting;
	(4)  owned by a volunteer fire department and used
	exclusively in the conduct of department business; [or]
	(5)  privately owned and used by a volunteer
	exclusively in county marine law enforcement activities, including
	rescue operations, under the direction of the sheriff's department;
	or
	(6)  used by law enforcement under an alias for covert
	criminal investigations.
	(b)  An application for registration under this section must
	be made by a person having the authority to certify that the vehicle
	meets the exemption requirements prescribed by Subsection (a). An
	application for registration under this section of a fire-fighting
	vehicle described by Subsection (a)(3) must include a reasonable
	description of the vehicle and of any fire-fighting equipment
	mounted on the vehicle. An application for registration under this
	section of a vehicle described by Subsection (a)(5) must include a
	statement signed by a person having the authority to act for a
	sheriff's department that the vehicle is used exclusively in marine
	law enforcement activities under the direction of the sheriff's
	department.
	SECTION 155.  Section 502.203, Transportation Code, is
	transferred to Subchapter J, Chapter 502, Transportation Code, as
	added by this Act, redesignated as Section 502.454, Transportation
	Code, and amended to read as follows:
	Sec. 502.454 [502.203].  VEHICLES USED BY NONPROFIT DISASTER
	RELIEF ORGANIZATIONS.  (a)  The owner of a commercial motor vehicle,
	trailer, or semitrailer may apply for registration under Section
	502.451 [502.201] and is exempt from the payment of the
	registration fee that would otherwise be required by this chapter
	if the vehicle is owned and used exclusively for emergencies by a
	nonprofit disaster relief organization.
	(b)  An application for registration under this section must
	include:
	(1)  a statement by the owner of the vehicle that the
	vehicle is used exclusively for emergencies and has not been used
	for any other purpose;
	(2)  a statement signed by an officer of the nonprofit
	disaster relief organization that the vehicle has not been used for
	any purpose other than emergencies and qualifies for registration
	under this section; and
	(3)  a reasonable description of the vehicle and the
	emergency equipment included in the vehicle.
	(c)  An applicant for registration under this section must
	pay a fee of $5.
	(d)  A commercial motor vehicle registered under this
	section must display the name of the organization that owns it on
	each front door.
	(e)  A vehicle registered under this section must display at
	all times an appropriate license plate showing the vehicle's
	status.
	(f)  A vehicle registered under this section that is used for
	any purpose other than an emergency may not again be registered
	under this section.
	SECTION 156.  Section 502.2035, Transportation Code, is
	transferred to Subchapter J, Chapter 502, Transportation Code, as
	added by this Act, and redesignated as Section 502.455,
	Transportation Code, to read as follows:
	Sec. 502.455 [502.2035].  TRAILERS AND SEMITRAILERS OWNED BY
	RELIGIOUS ORGANIZATIONS.  (a)  A trailer or semitrailer may be
	registered without payment if the trailer or semitrailer is:
	(1)  owned by an organization that qualifies as a
	religious organization under Section 11.20, Tax Code; and
	(2)  used primarily for the purpose of transporting
	property in connection with the charitable activities and functions
	of the organization.
	(b)  An application for registration under this section must
	include a statement signed by an officer of the religious
	organization stating that the trailer or semitrailer qualifies for
	registration under this section.
	SECTION 157.  Section 502.204, Transportation Code, is
	transferred to Subchapter J, Chapter 502, Transportation Code, as
	added by this Act, redesignated as Section 502.456, Transportation
	Code, and amended to read as follows:
	Sec. 502.456 [502.204].  EMERGENCY SERVICES VEHICLES.  (a)  A
	vehicle may be registered without payment if:
	(1)  the vehicle is owned or leased by an emergency
	medical services provider that:
	(A)  is a nonprofit entity; or
	(B)  is created and operated by:
	(i)  a county;
	(ii)  a municipality; or
	(iii)  any combination of counties and
	municipalities through a contract, joint agreement, or other method
	provided by Chapter 791, Government Code, or other law authorizing
	counties and municipalities to provide joint programs; and
	(2)  the vehicle:
	(A)  is authorized under an emergency medical
	services provider license issued by the Department of State [Texas
	Board of] Health Services under Chapter 773, Health and Safety
	Code, and is used exclusively as an emergency medical services
	vehicle; or
	(B)  is an emergency medical services chief or
	supervisor vehicle and is used exclusively as an emergency services
	vehicle.
	(b)  A vehicle may be registered without payment of a
	registration fee if the vehicle:
	(1)  is owned by the Civil Air Patrol, Texas Wing; and
	(2)  is used exclusively as an emergency services
	vehicle by members of the Civil Air Patrol, Texas Wing.
	(c)  An application for registration under Subsection (a)
	must be accompanied by a copy of the license issued by the
	Department of State [Texas Board of] Health Services. An
	application for registration of an emergency medical services
	vehicle must include a statement signed by an officer of the
	emergency medical services provider that the vehicle is used
	exclusively as an emergency response vehicle and qualifies for
	registration under this section. An application for registration
	of an emergency medical services chief or supervisor vehicle must
	include a statement signed by an officer of the emergency medical
	services provider stating that the vehicle qualifies for
	registration under this section.
	(d)  An application for registration under Subsection (b)
	must include a statement signed by an officer of the Civil Air
	Patrol, Texas Wing, that the vehicle is used exclusively as an
	emergency services vehicle by members of the Civil Air Patrol,
	Texas Wing.
	(e)  The department must approve an application for
	registration under this section as provided by Section 502.451
	[502.201].
	SECTION 158.  Section 520.0225, Transportation Code, is
	transferred to Subchapter J, Chapter 502, Transportation Code, as
	added by this Act, redesignated as Section 502.457, Transportation
	Code, and amended to read as follows:
	Sec. 502.457 [520.0225].  PERSONS ON ACTIVE DUTY IN ARMED
	FORCES OF UNITED STATES. (a)  This section applies only to a used
	motor vehicle that is owned by a person who:
	(1)  is on active duty in the armed forces of the United
	States;
	(2)  is stationed in or has been assigned to another
	nation under military orders; and
	(3)  has registered the vehicle or been issued a
	license for the vehicle under the applicable status of forces
	agreement by:
	(A)  the appropriate branch of the armed forces of
	the United States; or
	(B)  the nation in which the person is stationed
	or to which the person has been assigned.
	(b)  The requirement [in Section 520.021] that a used vehicle
	be registered under the law of this state does not apply to a
	vehicle described by Subsection (a). In lieu of delivering the
	license receipt to the transferee of the vehicle, as required by
	Section 501.0721 [520.022], the person selling, trading, or
	otherwise transferring a used motor vehicle described by Subsection
	(a) shall deliver to the transferee:
	(1)  a letter written on official letterhead by the
	owner's unit commander attesting to the registration of the vehicle
	under Subsection (a)(3); or
	(2)  the registration receipt issued by the appropriate
	branch of the armed forces or host nation.
	(c)  A registration receipt issued by a host nation that is
	not written in the English language must be accompanied by:
	(1)  a written translation of the registration receipt
	in English; and
	(2)  an affidavit, in English and signed by the person
	translating the registration receipt, attesting to the person's
	ability to translate the registration receipt into English.
	SECTION 159.  Chapter 502, Transportation Code, is amended
	by adding Subchapter K to read as follows:
	SUBCHAPTER K.  OFFENSES AND PENALTIES
	SECTION 160.  Section 502.401, Transportation Code, is
	transferred to Subchapter K, Chapter 502, Transportation Code, as
	added by this Act, redesignated as Section 502.471, Transportation
	Code, and amended to read as follows:
	Sec. 502.471 [502.401].  GENERAL PENALTY.  (a)  A person
	commits an offense if the person violates a provision of this
	chapter and no other penalty is prescribed for the violation.
	(b)  This section does not apply to a violation of Section
	502.003, 502.042, 502.197 [502.101, 502.109, 502.112, 502.113,
	502.114, 502.152, 502.164], or 502.431 [502.282].
	(c)  Unless otherwise specified, an [An] offense under this
	section is a misdemeanor punishable by a fine not to exceed $200.
	SECTION 161.  Section 502.402, Transportation Code, is
	transferred to Subchapter K, Chapter 502, Transportation Code, as
	added by this Act, redesignated as Section 502.472, Transportation
	Code, and amended to read as follows:
	Sec. 502.472 [502.402].  OPERATION OF VEHICLE UNDER IMPROPER
	REGISTRATION [UNREGISTERED MOTOR VEHICLE].  [(a)]  A person commits
	an offense if the person operates a motor vehicle that has not been
	registered or registered for a class other than that to which the
	vehicle belongs as required by law. [An offense under this
	subsection is a misdemeanor punishable by a fine not to exceed
	$200.]
	SECTION 162.  Section 502.404, Transportation Code, is
	transferred to Subchapter K, Chapter 502, Transportation Code, as
	added by this Act, redesignated as Section 502.473, Transportation
	Code, and amended to read as follows:
	Sec. 502.473 [502.404].  OPERATION OF VEHICLE WITHOUT
	[LICENSE PLATE OR] REGISTRATION INSIGNIA. (a) [A person commits an
	offense if the person operates on a public highway during a
	registration period a passenger car or commercial motor vehicle
	that does not display two license plates, at the front and rear of
	the vehicle, that have been:
	[(1)  assigned by the department for the period; or
	[(2)     validated by a registration insignia issued by
	the department that establishes that the vehicle is registered for
	the period.
	[(b)]  A person commits an offense if the person operates on
	a public highway during a registration period a [passenger car or
	commercial] motor vehicle[, other than a vehicle assigned license
	plates for the registration period,] that does not properly display
	the registration insignia issued by the department that establishes
	that the license plates have been validated for the period.
	(b) [(c)]  A person commits an offense if the person operates
	on a public highway during a registration period a road tractor,
	motorcycle, trailer, or semitrailer that does not display [a
	license plate, attached to the rear of the vehicle, that has been:
	[(1)  assigned by the department for the period; or
	[(2)  validated by] a registration insignia issued by
	the department that establishes that the vehicle is registered for
	the period.
	(c)  This section does [(d)  Subsections (a) and (b) do] not
	apply to a dealer operating a vehicle as provided by law.
	(d) [(e)     An offense under this section is a misdemeanor
	punishable by a fine not to exceed $200.
	[(f)     A court may dismiss a charge brought under Subsection
	(a) if the defendant:
	[(1)     remedies the defect before the defendant's first
	court appearance; and
	[(2)  pays an administrative fee not to exceed $10.
	[(g)]  A court may dismiss a charge brought under Subsection
	(a) [(b)] if the defendant:
	(1)  shows that[:
	[(A)]  the [passenger car or commercial] motor
	vehicle was issued a registration insignia by the department that
	was attached to the motor vehicle, establishing that [establishes
	that] the vehicle was registered for the period during which the
	offense was committed; and
	[(B)     the registration insignia described in
	Paragraph (A) was attached to the passenger car or commercial motor
	vehicle before the defendant's first court appearance; and]
	(2)  pays an administrative fee not to exceed $10.
	SECTION 163.  Subchapter K, Chapter 502, Transportation
	Code, as added by this Act, is amended by adding Section 502.474 to
	read as follows:
	Sec. 502.474.  OPERATION OF ONE-TRIP PERMIT VEHICLE. A
	person commits an offense if the person operates a vehicle for which
	a one-trip permit is required without the registration receipt and
	properly displayed temporary tag.
	SECTION 164.  Section 502.409, Transportation Code, is
	transferred to Subchapter K, Chapter 502, Transportation Code, as
	added by this Act, redesignated as Section 502.475, Transportation
	Code, and amended to read as follows:
	Sec. 502.475  [502.409].  WRONG, FICTITIOUS, ALTERED, OR
	OBSCURED INSIGNIA [LICENSE PLATE]. (a) A person commits an offense
	if the person attaches to or displays on a motor vehicle a [number
	plate or] registration insignia that:
	(1)  is assigned to a different motor vehicle;
	(2)  is assigned to the vehicle under any other motor
	vehicle law other than by the department;
	(3)  is assigned for a registration period other than
	the registration period in effect; or
	(4)  is fictitious[;
	[(5)     has blurring or reflective matter that
	significantly impairs the readability of the name of the state in
	which the vehicle is registered or the letters or numbers of the
	license plate number at any time;
	[(6)     has an attached illuminated device or sticker,
	decal, emblem, or other insignia that is not authorized by law and
	that interferes with the readability of the letters or numbers of
	the license plate number or the name of the state in which the
	vehicle is registered; or
	[(7)     has a coating, covering, protective material, or
	other apparatus that:
	[(A)     distorts angular visibility or
	detectability;
	[(B)     alters or obscures one-half or more of the
	name of the state in which the vehicle is registered; or
	[(C)     alters or obscures the letters or numbers of
	the license plate number or the color of the plate].
	(b)  Except as provided by Subsection (d) [(f)], an offense
	under Subsection (a) is a misdemeanor punishable by a fine of not
	more than $200, unless it is shown at the trial of the offense that
	the owner knowingly altered or made illegible the letters, numbers,
	and other identification marks, in which case the offense is a Class
	B misdemeanor.
	(c)  [Subsection (a)(7) may not be construed to apply to:
	[(1)     a trailer hitch installed on a vehicle in a normal
	or customary manner;
	[(2)     a transponder, as defined by Section 228.057,
	that is attached to a vehicle in the manner required by the issuing
	authority;
	[(3)     a wheelchair lift or wheelchair carrier that is
	attached to a vehicle in a normal or customary manner;
	[(4)  a trailer being towed by a vehicle; or
	[(5)     a bicycle rack that is attached to a vehicle in a
	normal or customary manner.
	[(d)]  A court may dismiss a charge brought under Subsection
	(a)(3)[, (5), (6), or (7)] if the defendant:
	(1)  remedies the defect before the defendant's first
	court appearance; and
	(2)  pays an administrative fee not to exceed $10.
	(d) [(f)]  An offense under Subsection (a)(4) is a Class B
	misdemeanor.
	SECTION 165.  Subchapter K, Chapter 502, Transportation
	Code, as added by this Act, is amended by adding Sections 502.476,
	502.477, 502.478, and 502.479 to read as follows:
	Sec. 502.476.  ANNUAL PERMITS; OFFENSE. A person who
	violates Section 502.093 commits an offense.
	Sec. 502.477.  NONRESIDENT-OWNED VEHICLES USED TO TRANSPORT
	AGRICULTURAL PRODUCT; OFFENSE. (a)  A person operating a vehicle
	under a permit issued under Section 502.092 commits an offense if
	the person transports farm products to a place of market, storage,
	or processing or a railhead or seaport that is farther from the
	place of production or point of entry, as appropriate, than the
	distance provided for in the permit.
	(b)  An offense under this section is a misdemeanor
	punishable by a fine of not less than $25 or more than $200.
	Sec. 502.478.  COMMERCIAL MOTOR VEHICLE USED PRIMARILY FOR
	AGRICULTURAL PURPOSES; OFFENSE.  (a)  The owner of a commercial
	motor vehicle registered under Section 502.433 commits an offense
	if the person uses or permits the use of the vehicle for a purpose
	other than one allowed under Section 502.433. Each use or
	permission of use in violation of this section is a separate
	offense.
	(b)  An offense under this section is a misdemeanor
	punishable by a fine of not less than $25 or more than $200.
	Sec. 502.479.  SEASONAL AGRICULTURAL VEHICLE; OFFENSE. A
	person issued a registration under Section 502.432 commits an
	offense if the person, during the registration period, uses the
	truck-tractor or commercial motor vehicle for a purpose other than
	to transport a seasonal agricultural product.
	SECTION 166.  Section 520.014, Transportation Code, is
	transferred to Subchapter K, Chapter 502, Transportation Code, as
	added by this Act, redesignated as Section 502.480, Transportation
	Code, and amended to read as follows:
	Sec. 502.480  [520.014].  VIOLATION BY COUNTY
	ASSESSOR-COLLECTOR; PENALTY. (a)  A county assessor-collector
	commits an offense if the county assessor-collector knowingly
	accepts an application for the registration of a motor vehicle
	that:
	(1)  has had the original motor number or vehicle
	identification number removed, erased, or destroyed; and
	(2)  does not bear a motor number or vehicle
	identification number assigned by the department.
	(b)  An offense under this section is a misdemeanor
	punishable by a fine of not less than $10 and not more than $50.
	SECTION 167.  Chapter 502, Transportation Code, is amended
	by adding Subchapter L to read as follows:
	SUBCHAPTER L.  REGISTRATION AND TRANSFER OF USED VEHICLES
	SECTION 168.  Section 502.451, Transportation Code, is
	transferred to Subchapter L, Chapter 502, Transportation Code, as
	added by this Act, redesignated as Section 502.491, Transportation
	Code, and amended to read as follows:
	Sec. 502.491 [502.451].  TRANSFER OF VEHICLE REGISTRATION
	[AND REMOVAL OF LICENSE PLATES].  (a)  On the sale or transfer of a
	motor vehicle [to a dealer], [as defined by Section 503.001, who
	holds a general distinguishing number issued under Chapter 503, the
	dealer shall remove each license plate and] the registration
	insignia issued for the motor vehicle shall be removed.
	[(a-1)     On a sale or transfer of a motor vehicle to a person
	that does not hold a general distinguishing number issued under
	Chapter 503, the seller or transferor may remove each license plate
	and the registration insignia issued for the motor vehicle.]
	(b)  [A license plate removed from a motor vehicle under
	Subsection (a) or (a-1) must be:
	[(1)     disposed of in the manner specified by the
	department; or
	[(2)     transferred to another vehicle owned by the
	seller or transferor as provided by Section 502.452.
	[(c)]  The part of the registration period remaining at the
	time of the sale or transfer shall continue with the vehicle being
	sold or transferred and does not transfer with the license plates or
	registration validation insignia.  To continue the remainder of
	the registration period, the purchaser or transferee must file the
	documents required under Section 501.145 [520.031].
	SECTION 169.  Section 502.454, Transportation Code, is
	transferred to Subchapter L, Chapter 502, Transportation Code, as
	added by this Act, redesignated as Section 502.492, Transportation
	Code, and amended to read as follows:
	Sec. 502.492 [502.454].  TEMPORARY TRANSIT PERMIT FOR A
	VEHICLE PURCHASED [IN A PRIVATE PARTY TRANSACTION]. (a)  A
	purchaser [or transferee] may obtain from the department a
	temporary transit [single-trip] permit to operate a motor vehicle:
	(1)  that is subject to registration in this state;
	(2)  from which the license plates and the registration
	insignia have been removed as authorized by Section 502.491 or
	504.901 [502.451(a-1)]; and
	(3)  that is not authorized to travel on a public
	roadway because the required license plates and the registration
	insignia are not attached to the vehicle.
	(b)  The department may issue the permit in accordance with
	this section.
	(c)  A permit issued under this section is valid for one trip
	between the point of origin and the destination and those
	intermediate points specified in the permit.
	(d)  A permit issued under this section may not be valid for
	longer than a five-day period.
	(e)  A person may obtain a permit under this section by
	applying, as [on a form] provided by the department, to the
	department.  Application may be made using the department's
	Internet website.
	(f)  A person is eligible to receive only one permit under
	this section for a motor vehicle.
	(g)  A permit receipt issued under this section must be in
	[on] a manner [form] provided by the department. The receipt must
	contain the information required by this section and shall be
	carried in the vehicle at all times during which it is valid.
	(h)  The department may refuse to issue a permit under this
	section for any vehicle if in the department's opinion the
	applicant has been involved in operations that constitute an abuse
	of the privilege granted under this section.
	SECTION 170.  The heading to Chapter 504, Transportation
	Code, is amended to read as follows:
	CHAPTER 504. [SPECIALTY] LICENSE PLATES
	SECTION 171.  Section 504.001(a), Transportation Code, is
	amended by adding Subdivision (3) to read as follows:
	(3)  "Purchaser" and "seller" have the meanings
	assigned by Section 501.002.
	SECTION 172.  Section 504.004, Transportation Code, is
	redesignated as Section 504.0011, Transportation Code, and amended
	to read as follows:
	Sec. 504.0011  [504.004].  RULES [AND FORMS]. The board may
	adopt rules [and the department may issue forms] to implement and
	administer this chapter.
	SECTION 173.  Section 504.002, Transportation Code, is
	amended to read as follows:
	Sec. 504.002.  [PROVISIONS OF] GENERAL PROVISIONS
	[APPLICABILITY]. Unless expressly provided by this chapter or by
	department rule:
	(1)  except for license plates specified as exempt,
	[any vehicle is eligible to be issued specialty license plates,
	provided that the department may vary the design of a license plate
	to accommodate or reflect its use on a motor vehicle other than a
	passenger car or light truck;
	[(2)     an application for specialty license plates must
	be submitted in the manner specified by the department, provided
	that if issuance of a specialty license plate is limited to
	particular persons or motor vehicles, the application must be
	accompanied by evidence satisfactory to the department that the
	applicant or the applicant's vehicle is eligible;
	[(3)]  the fee for issuance of a [specialty] license
	plate, including replacement plates, is in addition to each other
	fee that is paid for [or] at the time of the registration of the
	motor vehicle and shall be deposited to the credit of the state
	highway fund;
	(2)  if the registration period is greater than 12
	months, the expiration date of a specialty license plate, symbol,
	tab, or other device shall be aligned with the registration period,
	and the specialty plate fee shall be adjusted pro rata, except that
	if the statutory annual fee for a specialty license plate is $5 or
	less, it may not be prorated;
	(3)  [(4)     each fee described by this chapter is an
	annual fee, provided that the department may prorate the fee for a
	specialty license plate fee on a monthly basis to align the license
	plate fee to the registration period for the motor vehicle for which
	the license plate was issued, and if a fee is prorated the
	allocation of the fee by this chapter to an account or fund shall be
	prorated in proportion;
	[(5)]  the department is the exclusive owner of the
	design of each [specialty] license plate;
	(4)  [(6)     the director may refuse to issue a specialty
	license plate with a design or alphanumeric pattern that the
	director considers potentially objectionable to one or more members
	of the public and the director's refusal may not be overturned in
	the absence of an abuse of discretion;
	[(7)     for each specialty license plate that is issued
	through a county tax assessor-collector and for which the
	department is allocated a portion of a fee for administrative
	costs, the department shall credit 50 cents from its administrative
	costs to the county treasurer of the applicable county, who shall
	credit the money to the general fund of the county to defray the
	costs to the county of administering this chapter;
	[(8)]  if a [specialty] license plate is lost, stolen,
	or mutilated, an application for a replacement plate must be
	accompanied by the fee prescribed by Section 502.060
	[502.184(a)(2);
	[(9)     if the owner of a motor vehicle for which a
	specialty license plate is issued disposes of the vehicle or for any
	reason ceases to be eligible for that specialty license plate, the
	owner shall return the specialty license plate to the department];
	and
	(5)  the department shall prepare the designs and
	specifications of license plates [(10)     a person who is issued a
	specialty license plate may not transfer it to another person or
	vehicle without first receiving approval from the department].
	SECTION 174.  Section 504.103, Transportation Code, is
	transferred to Subchapter A, Chapter 504, Transportation Code,
	redesignated as Section 504.005, Transportation Code, and amended
	to read as follows:
	Sec. 504.005  [504.103].  DESIGN AND ALPHANUMERIC PATTERN.
	(a) The department has sole control over the design, typeface,
	color, and alphanumeric pattern for all [a personalized] license
	plates [plate].
	(b)  The department shall prepare the designs and
	specifications of license plates and devices selected by the board
	to be used as a unique identifier.
	(c)  The department shall design each license plate to
	include a design at least one-half inch wide that represents in
	silhouette the shape of Texas and that appears between letters and
	numerals. The department may omit the silhouette of Texas from
	specially designed license plates.
	(d)  To promote highway safety, each license plate shall be
	made with a reflectorized material that provides effective and
	dependable brightness for the period for which the plate is issued.
	SECTION 175.  Subchapter A, Chapter 504, Transportation
	Code, is amended by adding Section 504.0051 to read as follows:
	Sec. 504.0051.  PERSONALIZED LICENSE PLATES. (a) The
	department shall issue personalized license plates, including
	those issued in accordance with the marketing vendor as provided in
	Subchapter J. The department may not issue more than one set of
	license plates with the same alphanumeric pattern.
	(b)  The department may not issue a replacement set of
	personalized plates to the same person before the period set by rule
	unless the applicant for issuance of replacement plates pays the
	fee required by Section 504.007.
	SECTION 176.  Section 502.053, Transportation Code, is
	transferred to Subchapter A, Chapter 504, Transportation Code,
	redesignated as Section 504.006, Transportation Code, and amended
	to read as follows:
	Sec. 504.006  [502.053].  COST OF MANUFACTURING [LICENSE
	PLATES OR REGISTRATION INSIGNIA]. (a)  The department shall
	reimburse the Texas Department of Criminal Justice for the cost of
	manufacturing license plates [or registration insignia] as [the
	license plates or insignia and] the invoices [invoice] for the
	license plates [or insignia] are delivered to the department.
	(b)  When manufacturing is started, the Texas Department of
	Criminal Justice and [,] the department, [and the comptroller,]
	after negotiation, shall set the price to be paid for each license
	plate [or insignia].  The price must be determined from:
	(1)  the cost of metal, paint, and other materials
	purchased;
	(2)  the inmate maintenance cost per shift [day];
	(3)  overhead expenses;
	(4)  miscellaneous charges; and
	(5)  a previously agreed upon [approved] amount of
	profit for the work.
	[(c)     The annual profit received by the Texas Department of
	Criminal Justice from all contracts for the manufacturing of
	license plates or related manufacturing may not be less than the
	profit received by the Texas Department of Corrections for
	manufacturing license plates for use in 1974.]
	SECTION 177.  Section 502.1841, Transportation Code, as
	effective September 1, 2011, is transferred to Subchapter A,
	Chapter 504, Transportation Code, redesignated as Section 504.007,
	Transportation Code, and amended to read as follows:
	Sec. 504.007  [502.1841].  REPLACEMENT LICENSE PLATES. (a)
	The owner of a registered motor vehicle may obtain replacement
	license plates for the vehicle by:
	(1)  certifying that the replacement plates will not be
	used on any other vehicle owned or operated by the person making the
	statement;
	(2)  paying a fee of $6 plus the fee required by Section
	502.356(a) [502.1705(a)] for each set of replacement license
	plates, unless otherwise specified by law; and
	(3)  returning to the department each license plate in
	the owner's possession for which a replacement license plate is
	obtained.
	(b)  Replacement license plates may not be issued except as
	provided by this section.
	(c)  A county assessor-collector shall retain $2.50 of each
	fee collected under this section and forward the remainder of the
	fee to the department.
	(d)  The fee required by this section applies to the issuance
	of license plates for a transferred used vehicle for which the
	registration and license plates were not transferred under Section
	504.901 [Subchapter I].
	(e)  Replacement license plates may be used in the
	registration year in which the plates are issued and during each
	succeeding year of the registration period as set by rule if the
	registration insignia is properly displayed on the vehicle.
	(f)  Subsection (e) does not apply to the issuance of
	specialized license plates for limited distribution, including
	exempt plates for governmental entities and temporary registration
	plates.
	SECTION 178.  Subchapter A, Chapter 504, Transportation
	Code, is amended by adding Section 504.008 to read as follows:
	Sec. 504.008.  SPECIALTY LICENSE PLATES.  (a)  The
	department shall prepare the designs and specifications of
	specialty license plates.
	(b)  Any motor vehicle other than a vehicle manufactured for
	off-highway use only is eligible to be issued specialty license
	plates, provided that the department may vary the design of a
	license plate to accommodate or reflect its use on a motor vehicle
	other than a passenger car or light truck.
	(c)  An application for specialty license plates must be
	submitted in the manner specified by the department, provided that
	if issuance of a specialty license plate is limited to particular
	persons or motor vehicles, the application must be accompanied by
	evidence satisfactory to the department that the applicant or the
	applicant's vehicle is eligible.
	(d)  Each fee described by this chapter is an annual fee,
	provided that the department may prorate the fee for a specialty
	license plate fee on a monthly basis to align the license plate fee
	to the registration month for the motor vehicle for which the
	license plate was issued, and if a fee is prorated the allocation of
	the fee by this chapter to an account or fund shall be prorated in
	proportion.
	(e) The director or the director's designee may refuse to
	issue a specialty license plate with a design or alphanumeric
	pattern that the director or designee considers potentially
	objectionable to one or more members of the public and the director
	or designee's refusal may not be overturned in the absence of an
	abuse of discretion.
	(f)  For each specialty license plate that is issued by a
	county assessor-collector and for which the department is allocated
	a portion of the fee for administrative costs, the department shall
	credit 50 cents from its administrative costs to the county
	treasurer of the applicable county, who shall credit the money to
	the general fund of the county to defray the costs to the county of
	administering this chapter.
	(g)  If the owner of a motor vehicle for which a specialty
	license plate is issued disposes of the vehicle or for any reason
	ceases to be eligible for that specialty license plate, the owner
	shall return the specialty license plate to the department.
	(h)  A person who is issued a specialty license plate may not
	transfer the plate to another person or vehicle unless the
	department approves the transfer.
	SECTION 179.  Section 504.003, Transportation Code, is
	redesignated as Section 504.009, Transportation Code, and amended
	to read as follows:
	Sec. 504.009  [504.003].  SOUVENIR LICENSE PLATES. (a) The
	department may issue a souvenir version of any specialty license
	plate for any vehicle[, including a motorcycle].
	(b)  The fee for a single souvenir license plate is $20.  The
	fee shall be deposited to the credit of the state highway fund
	unless the souvenir license plate is a replica of a specialty
	license plate issued under Subchapter G or I for which the fee is
	deposited to an account other than the state highway fund, in which
	case:
	(1)  $10 of the fee for the souvenir license plate shall
	be deposited to the credit of the designated account; and
	(2)  $10 of the fee for the souvenir license plate shall
	be deposited to the credit of the state highway fund.
	(c)  If a souvenir license plate issued before November 19
	[September 1], 2009, is personalized, the fee for the plate is
	$40.  Of the fee:
	(1)  $20 shall be deposited to the credit of the state
	highway fund;
	(2)  $10 shall be deposited to the credit of the
	designated account if the souvenir license plate is a replica of a
	specialty license plate issued under Subchapter G or I for which the
	fee is deposited to a designated account other than the state
	highway fund; and
	(3)  the remainder shall be deposited to the credit of
	the general revenue fund.
	(c-1)  The fee for a souvenir license plate issued on or
	after November 19 [September 1], 2009, is the amount established
	under Section 504.851(c).
	(d)  A souvenir license plate may not be used on a motor
	vehicle[, including a motorcycle,] and is not an insignia of
	registration for a motor vehicle. Each souvenir license plate must
	be identified by the department in a way that identifies it to law
	enforcement officers and others as a souvenir license plate.
	(e)  A beneficiary of a specialty license plate issued under
	Subchapter G or I, as designated by the applicable section of those
	subchapters, may purchase the specialty license plates, in minimum
	amounts determined by the department [boxes of 25], for use or
	resale by the beneficiary.  The beneficiary shall pay the required
	fee per plate, less the amount of the fee that would be deposited to
	the credit of the designated account.
	SECTION 180.  Subchapter A, Chapter 504, Transportation
	Code, is amended by adding Section 504.010 to read as follows:
	Sec. 504.010.  ISSUANCE AND PLACEMENT OF LICENSE PLATE. (a)
	On payment of the prescribed fee, an applicant for motor vehicle
	registration shall be issued a license plate or set of plates.
	(b)  Subject to Section 504.901, the department shall issue
	only one license plate or set of plates for a vehicle during the
	registration period set by rule.
	(c)  The board may adopt rules regarding the placement of
	license plates for a motor vehicle, road tractor, motorcycle,
	trailer, or semitrailer.
	SECTION 181.  Subchapter B, Chapter 504, Transportation
	Code, is amended by adding Section 504.101 to read as follows:
	Sec. 504.101.  PERSONALIZED LICENSE PLATES. The department
	shall issue personalized license plates, including those sold by
	the private vendor under a contract with the department as provided
	by Section 504.851.
	SECTION 182.  Sections 504.201(b), (d), and (g),
	Transportation Code, are amended to read as follows:
	(b)  The department shall issue specialty license plates for
	a motor vehicle that:
	(1)  has a gross vehicle weight [manufacturer's rated
	carrying capacity] of 18,000 pounds [two tons] or less; and
	(2)  is regularly operated for noncommercial use by or
	for the transportation of a person with a permanent disability.
	(d)  Except as provided by Subsection (d-1), the initial
	application for specialty license plates under this section must be
	accompanied by a written statement from a physician who is licensed
	to practice medicine in this state or in a state adjacent to this
	state or who is authorized by applicable law to practice medicine in
	a hospital or other health facility of the Department of Veterans
	Affairs. If the applicant has a mobility problem caused by a
	disorder of the foot, the written statement may be issued by a
	person licensed to practice podiatry in this state or a state
	adjacent to this state. In this subsection, "podiatry" has the
	meaning assigned by Section 681.001. The statement must certify
	that the person making the application or on whose behalf the
	application is made is legally blind or has a mobility problem that
	substantially impairs the person's ability to ambulate. The
	statement must also certify whether a mobility problem is temporary
	or permanent. A written statement is not required as acceptable
	medical proof if:
	(1)  the person with a disability:
	(A)  has had a limb, hand, or foot amputated; or
	(B)  must use a wheelchair; and
	(2)  the applicant executes a statement [and the county
	assessor-collector processing the application execute an
	affidavit] attesting to the person's disability before the county
	assessor-collector.
	(g)  In addition to a license plate issued under this
	section, an eligible person is entitled to be issued a set of the
	license plates for each motor vehicle owned by the person that has a
	gross vehicle weight [carrying capacity] of 18,000 pounds [two
	tons] or less and is equipped with special equipment that:
	(1)  is designed to allow a person who has lost the use
	of one or both of the person's legs to operate the vehicle; and
	(2)  is not standard equipment on that type of vehicle
	for use by a person who has use of both legs.
	SECTION 183.  Section 504.202, Transportation Code, is
	amended by amending Subsections (b) and (f) and adding Subsection
	(i) to read as follows:
	(b)  A veteran of the United States armed forces is entitled
	to register, for the person's own use, motor vehicles under this
	section if:
	(1)  the person has suffered, as a result of military
	service:
	(A)  at least a 50 percent service-connected
	disability; or
	(B)  a 40 percent service-connected disability
	because of the amputation of a lower extremity;
	(2)  the person receives compensation from the United
	States because of the disability; and
	(3)  the motor vehicle:
	(A)  is owned by the person; and
	(B)  has a gross vehicle weight [manufacturer's
	rated carrying capacity] of 18,000 pounds [two tons] or less.
	(f)  The fee for the first set of license plates is $3. There
	is no fee for each additional set of license plates. [If a license
	plate is lost, stolen, or mutilated, on payment of a $1 fee the
	department shall issue a set of replacement plates.]
	(i)  A license plate with the letters "DV" may be
	personalized with up to four characters.
	SECTION 184.  Section 504.203(b), Transportation Code, is
	amended to read as follows:
	(b)  An application for license plates under this section
	must be accompanied by a written statement acknowledged [signed] by
	the administrator or manager of the institution, facility, or
	retirement community certifying that the institution, facility, or
	retirement community regularly transports, as a part of the
	services that the institution, facility, or retirement community
	provides, one or more eligible persons who reside in the
	institution, facility, or retirement community. The department
	shall determine the eligibility of the institution, facility, or
	retirement community on the evidence the applicant provides.
	SECTION 185.  Section 504.301, Transportation Code, is
	amended to read as follows:
	Sec. 504.301.  PROVISIONS GENERALLY APPLICABLE TO MILITARY
	SPECIALTY LICENSE PLATES. (a) Unless expressly provided by this
	subchapter or department rule:
	(1)  the department shall design specialty license
	plates for the military; and
	(2)  a person is not eligible to be issued a specialty
	license plate under this subchapter if the person was discharged
	from the armed forces under conditions less than honorable.
	(b)  Notwithstanding any other provision of this subchapter,
	the department may design the wording on the specialty license
	plates to accommodate legibility and reflectivity.
	SECTION 186.  Section 504.3011, Transportation Code, is
	amended to read as follows:
	Sec. 504.3011.  DESIGN OF CERTAIN LICENSE PLATES FOR THE
	MILITARY. [(a)     License plates issued under Section 504.303 must
	at a minimum bear a color depiction of the emblem of the appropriate
	branch of the United States armed forces.
	[(b)     License plates issued under Section 504.308(a) or
	504.315(e), (f), or (g) must at a minimum bear a color depiction of
	the appropriate medal.
	[(c)]  The department shall design military license plates
	that:
	(1)  bear a color depiction of the emblem of the
	appropriate branch of the United States armed forces or a color
	depiction of the appropriate medal as provided by the United States
	Department of Defense; and
	(2)  include the words "Honorably Discharged" for
	license plates issued to former members of the United States armed
	forces [to which this section applies in consultation with veterans
	organizations].
	SECTION 187.  Section 504.315(d), Transportation Code, is
	amended to read as follows:
	(d)  The department shall issue specialty license plates for
	survivors of the attack on Pearl Harbor on December 7, 1941. The
	license plates must include the words "Pearl Harbor Survivor." [and
	must be consecutively numbered.] A person is eligible if the
	person:
	(1)  served in the United States armed forces;
	(2)  was stationed in the Hawaiian Islands on December
	7, 1941; and
	(3)  survived the attack on Pearl Harbor on December 7,
	1941.
	SECTION 188.  Subchapter D, Chapter 504, Transportation
	Code, is amended by adding Section 504.317 to read as follows:
	Sec. 504.317.  SURVIVING SPOUSES OF DISABLED VETERANS
	SPECIALTY LICENSE PLATES. (a)  In this section, "surviving spouse"
	means the individual married to a disabled veteran at the time of
	the veteran's death.
	(b)  The department shall issue specialty license plates for
	surviving spouses of disabled veterans of the United States armed
	forces.
	SECTION 189.  Subchapter E, Chapter 504, Transportation
	Code, is amended by adding Section 504.400 to read as follows:
	Sec. 504.400.  FEES FOR CERTAIN RESTRICTED PLATES. The
	department shall issue, without charge, not more than three sets of
	specialty license plates under this subchapter.
	SECTION 190.  Sections 504.401(a) and (c), Transportation
	Code, are amended to read as follows:
	(a)  The department shall issue [without charge] specialty
	license plates that include the words "State Official" to a state
	official. [The license plates must include the words "State
	Official."]
	(c)  The registration remains [license plates remain] valid
	until December 31 of each year.
	SECTION 191.  Section 504.402(a), Transportation Code, is
	amended to read as follows:
	(a)  The department shall issue [without charge] specialty
	license plates to [for] members of congress, which [. License
	plates issued under this section] must include the words "U.S.
	Congress."
	SECTION 192.  Section 504.403(a), Transportation Code, is
	amended to read as follows:
	(a)  The department shall issue [without charge] specialty
	license plates for a current or visiting state or federal judge.
	The license plates must include the words "State Judge" or "U.S.
	Judge," as appropriate.
	SECTION 193.  Section 504.403(d)(2), Transportation Code,
	is amended to read as follows:
	(2)  "State judge" means:
	(A)  a justice of the supreme court;
	(B)  a judge of the court of criminal appeals;
	(C)  a judge of a court of appeals of this state;
	(D)  a district court judge;
	(E)  a presiding judge of an administrative
	judicial district; or
	(F)  a statutory county court judge.
	SECTION 194.  Section 504.404(a), Transportation Code, is
	amended to read as follows:
	(a)  The department shall issue [without charge] specialty
	license plates to [for] current federal administrative law judges
	that [. The license plates shall] bear the words "U.S. A. L.
	Judge."
	SECTION 195.  Section 504.405(a), Transportation Code, is
	amended to read as follows:
	(a)  The department shall issue [without charge] specialty
	license plates for current county judges of this state that[. The
	license plates shall] bear the words "County Judge."
	SECTION 196.  Section 504.406, Transportation Code, is
	amended to read as follows:
	Sec. 504.406.  TEXAS CONSTABLES. The department shall issue
	[without charge] specialty license plates for Texas constables
	that[. The license plates shall] bear the words "Texas Constable."
	SECTION 197.  Section 504.412, Transportation Code, is
	redesignated as Section 504.4061, Transportation Code, and amended
	to read as follows:
	Sec. 504.4061  [504.412].  FOREIGN ORGANIZATION VEHICLES.
	(a)  The department shall issue specialty license plates for an
	instrumentality established by a foreign government recognized by
	the United States before January 1, 1979, that is without official
	representation or diplomatic relations with the United States. The
	license plates must include the words "Foreign Organization" and
	shall remain valid for seven [five] years.
	(b)  A person entitled to specialty license plates under this
	section may register the vehicle without payment of any fee paid for
	or at the time of registration.
	SECTION 198.  Section 504.509, Transportation Code, as
	effective September 1, 2011, is transferred to Subchapter E,
	Chapter 504, Transportation Code, and redesignated as Section
	504.415, Transportation Code, to read as follows:
	Sec. 504.415  [504.509].  VEHICLES CARRYING MOBILE AMATEUR
	RADIO EQUIPMENT. The department shall issue specialty license
	plates for a person who holds an amateur radio station license
	issued by the Federal Communications Commission and who operates
	receiving and transmitting mobile amateur radio equipment. The
	license plates shall include the person's amateur call letters as
	assigned by the Federal Communications Commission. A person may
	register more than one vehicle equipped with mobile amateur radio
	equipment under this section, and the department shall issue
	license plates that include the same amateur call letters for each
	vehicle.
	SECTION 199.  Section 504.501(b), Transportation Code, is
	amended to read as follows:
	(b)  A person eligible for the license plates may instead use
	license plates that were issued by this state in the same year as
	the model year of the vehicle and are approved by the department [if
	the plates are approved for the vehicle before January 1, 2011]. The
	department may require the attachment of a registration insignia to
	the license plate in a manner that does not affect the display of
	information originally on the license plate.
	SECTION 200.  The heading to Subchapter F, Chapter 504,
	Transportation Code, is amended to read as follows:
	SUBCHAPTER F. SPECIALTY LICENSE PLATES WITH RESTRICTED
	DISTRIBUTION AND REGULAR LICENSE PLATE FEES [FOR CERTAIN VEHICLES]
	SECTION 201.  Section 504.502(g), Transportation Code, is
	amended to read as follows:
	(g)  A person entitled to specialty license plates or to
	department approval under this section may register the vehicle
	without payment of any fees paid for or at the time of registration
	except the fee for the license plate. [An owner of a vehicle
	registered under this subsection who violates this section commits
	an offense. An offense under this section is a misdemeanor
	punishable by a fine of not less than $5 or more than $200.]
	SECTION 202.  Section 504.503, Transportation Code, is
	amended to read as follows:
	Sec. 504.503.  MUNICIPAL, MOTOR, AND PRIVATE BUSES.
	[(a)]  The department shall issue without charge specialty license
	plates for municipal buses, motor buses, and private buses. The
	license plates must include the words "City Bus," "Motor Bus," or
	"Private Bus," as appropriate.
	[(b)  In this section, "private bus" means a bus that:
	[(1)  is not operated for hire; and
	[(2)     is not classified as a municipal bus or a motor
	bus.]
	SECTION 203.  The heading to Section 504.506, Transportation
	Code, is amended to read as follows:
	Sec. 504.506.  [CERTAIN] LOG LOADER VEHICLES.
	SECTION 204.  Sections 504.407 and 504.408, Transportation
	Code, are transferred to Subchapter F, Chapter 504, Transportation
	Code, and redesignated as Sections 504.511 and 504.512,
	Transportation Code, to read as follows:
	Sec. 504.511  [504.407].  PEACE OFFICERS WOUNDED OR KILLED
	IN LINE OF DUTY. (a)  The department shall issue specialty license
	plates for:
	(1)  a person wounded in the line of duty as a peace
	officer; or
	(2)  a surviving spouse, parent, brother, sister, or
	adult child, including an adopted child or stepchild, of a person
	killed in the line of duty as a peace officer.
	(b)  License plates issued under this section must include
	the words "To Protect and Serve" above an insignia depicting a
	yellow rose superimposed over the outline of a badge.
	(c)  The fee for issuance of the license plates is $20.
	(d)  In this section, "peace officer" has the meaning
	assigned by Section 1.07, Penal Code.
	Sec. 504.512  [504.408].  GOLD STAR MOTHER, SPOUSE, OR
	FAMILY MEMBER. (a)  The department shall issue a specialty license
	plate for the mother, surviving spouse, or immediate family member
	of a person who died while serving in the United States armed
	forces.  License plates issued under this section must include the
	words "Gold Star Mother," "Gold Star Spouse," or "Gold Star Family"
	and a gold star.  A person may not be issued more than one set of the
	license plates at a time.
	(a-1)  In this section "immediate family member" means the
	parent, child, or sibling of a person who died while serving in the
	United States armed forces.
	(b)  The fee for issuance of the license plates is $10.
	SECTION 205.  Section 504.409, Transportation Code, as
	effective September 1, 2011, and as amended by Chapters 1136 (H.B.
	2553) and 1381 (S.B. 1616), Acts of the 81st Legislature, Regular
	Session, 2009, is transferred to Subchapter F, Chapter 504,
	Transportation Code, redesignated as Section 504.513,
	Transportation Code, and reenacted and amended to read as follows:
	Sec. 504.513  [504.409].  FIREFIGHTERS. (a) The department
	shall issue specialty license plates for:
	(1)  volunteer firefighters certified by:
	(A)  the Texas Commission on Fire Protection; or
	(B)  the State Firemen's and Fire Marshals'
	Association of Texas; and
	(2)  fire protection personnel as that term is defined
	by Section 419.021, Government Code.
	(b) [(c)]  A person may be issued not more than three sets of
	license plates.
	SECTION 206.  Sections 504.410 and 504.411, Transportation
	Code, are transferred to Subchapter F, Chapter 504, Transportation
	Code, redesignated as Sections 504.514 and 504.515, Transportation
	Code, and amended to read as follows:
	Sec. 504.514  [504.410].  EMERGENCY MEDICAL SERVICES
	PERSONNEL. (a)  The department shall issue specialty license
	plates for emergency medical services personnel certified by the
	[Texas] Department of State Health Services under Subchapter C,
	Chapter 773, Health and Safety Code.
	(b)  The fee for issuance of the license plates is $8.
	(c)  A person may be issued only one set of the license
	plates.
	Sec. 504.515  [504.411].  HONORARY CONSULS. (a)  The
	department shall issue specialty license plates for a person who is
	an honorary consul authorized by the United States to perform
	consular duties. License plates issued under this section must
	include the words "Honorary Consul."
	(b)  The fee for issuance of the license plates is $40.
	SECTION 207.  Subchapter F, Chapter 504, Transportation
	Code, is amended by adding Section 504.516 to read as follows:
	Sec. 504.516.  RENTAL TRAILER OR TRAVEL TRAILER FEE:
	TRAILER OR SEMITRAILER. (a) The department may issue specially
	designed license plates for rental trailers and travel trailers
	that include, as appropriate, the words "rental trailer" or "travel
	trailer."
	(b)  In this section:
	(1)  "Rental fleet" means vehicles that are designated
	in the manner prescribed by the department as a rental fleet.
	(2)  "Rental trailer" means a utility trailer.
	(3)  "Travel trailer" has the meaning assigned by
	Section 501.002.
	SECTION 208.  Section 504.6011, Transportation Code, is
	amended by amending Subsection (a) and adding Subsection (d) to
	read as follows:
	(a)  The sponsor of a specialty license plate [authorized to
	be issued under this subchapter before September 1, 2009,] may
	contract with the private vendor authorized under Subchapter J for
	the marketing and sale of the specialty license plate.
	(d)  A sponsor of a specialty license plate authorized to be
	issued under this subchapter before November 19, 2009, may
	reestablish its specialty license plate under Sections 504.601 and
	504.702 and be credited its previous deposit with the department if
	a contract entered into by the sponsor under Subsection (a)
	terminates.
	SECTION 209.  Section 504.614, Transportation Code, is
	amended by amending Subsection (a) and adding Subsection (b-1) to
	read as follows:
	(a)  The department may issue specialty license plates that
	include the name and insignia of a professional sports team located
	in this state. The department shall design the license plates in
	consultation with the professional sports team and may enter a
	trademark license with the professional sports team or its league
	to implement this section. A license plate may be issued under this
	section only for a professional sports team that:
	(1)  certifies to the department that the requirements
	of Section 504.702 are met [it has determined that at least 3,500
	persons will apply for the plates]; and
	(2)  plays its home games in a facility constructed or
	operated, in whole or in part, with public funds.
	(b-1)  A public entity that receives money under Subsection
	(b) may contract with the private vendor under Section 504.6011 to
	distribute the entity's portion of the money in a manner other than
	that described by Subsection (b).
	SECTION 210.  Section 504.615, Transportation Code, is
	amended by amending Subsections (a) and (e) and adding Subsection
	(d-1) to read as follows:
	(a)  The department shall issue specialty license plates
	that include the name and insignia of a college. The department
	shall design the license plates in consultation with the applicable
	college. The department may issue a license plate under this
	section only for a college that certifies to the department that the
	requirements of Section 504.702 are met [it has determined that at
	least 1,500 persons will apply for the plates].
	(d-1)  If the fee is for the issuance of license plates for a
	college described by Subsection (e)(3), the money:
	(1)  shall be deposited to the credit of the Texas
	Higher Education Coordinating Board; and
	(2)  is supplementary and is not income for purposes of
	reducing general revenue appropriations to that board.
	(e)  In this section, "college" means:
	(1)  an institution of higher education as defined by
	Section 61.003, Education Code; [or]
	(2)  a private college or university described by
	Section 61.222, Education Code; or
	(3)  a college or university that is not located in this
	state.
	SECTION 211.  Section 504.616(a), Transportation Code, is
	amended to read as follows:
	(a)  The department shall issue specialty license plates
	including the words "Texas Reads" that ["Texas Reads." The
	department shall design the license plates to] incorporate one or
	more submissions from middle school students in a competition
	conducted by the department.
	SECTION 212.  The heading to Section 504.642, Transportation
	Code, is amended to read as follows:
	Sec. 504.642.  TEXAS COUNCIL OF [COUNTY] CHILD WELFARE
	BOARDS [BOARD] LICENSE PLATES.
	SECTION 213.  Section 504.642(a), Transportation Code, is
	amended to read as follows:
	(a)  The department shall issue Texas Council of [County]
	Child Welfare Boards specialty license plates. The department
	shall design the license plates in consultation with the Texas
	Council of Child Welfare Boards, Inc.
	SECTION 214.  Section 504.647(a), Transportation Code, is
	amended to read as follows:
	(a)  The department shall issue Fight Terrorism specialty
	license plates that [. The license plates shall] include a
	pentagon-shaped border surrounding:
	(1)  the date "9-11-01" with the likeness of the World
	Trade Center towers forming the "11";
	(2)  the likeness of the United States flag; and
	(3)  the words "Fight Terrorism."
	SECTION 215.  Section 504.413, Transportation Code, is
	transferred to Subchapter G, Chapter 504, Transportation Code, and
	redesignated as Section 504.659, Transportation Code, to read as
	follows:
	Sec. 504.659  [504.413].  MEMBERS OF AMERICAN LEGION.
	(a)  The department shall issue specialty license plates for
	members of the American Legion. The license plates shall include
	the words "Still Serving America" and the emblem of the American
	Legion. The department shall design the license plates in
	consultation with the American Legion.
	(b)  The fee for the license plates is $30.
	(c)  After deduction of $8 to reimburse the department for
	its administrative costs, the remainder of the fee for issuance of
	the license plates shall be deposited to the credit of the American
	Legion, Department of Texas account in the state treasury. Money in
	the account may be used only by the Texas Veterans Commission in
	making grants to the American Legion Endowment Fund for
	scholarships and youth programs sponsored by the American Legion,
	Department of Texas.
	SECTION 216.  Section 504.702, Transportation Code, is
	amended by amending Subsection (b) and adding Subsections (e) and
	(f) to read as follows:
	(b)  The department may manufacture the specialty license
	plates only if a request for manufacture of the license plates is
	filed with the department.  The request must be:
	(1)  made in [on] a manner prescribed [form adopted] by
	the department;
	(2)  filed before the fifth anniversary of the
	effective date of the law that authorizes the issuance of the
	specialty license plates; and
	(3)  accompanied by[:
	[(A)]  a deposit of $8,000[; or
	[(B)     applications for issuance of at least 1,900
	sets of the license plates plus the fees for issuance of that number
	of sets].
	(e)  The department may issue license plates under:
	(1)  Section 504.614 for a particular professional
	sports team only if $8,000 has been deposited with the department
	for that sports team; or
	(2)  Section 504.615 for a particular institution of
	higher education or private college or university only if $8,000
	has been deposited with the department for that institution,
	college, or university.
	(f)  Money deposited with the department under Subsection
	(b)(3) or (e) shall be returned by the department to the person who
	made the deposit after 800 sets of plates have been issued.
	SECTION 217.  Sections 504.801(a), (b), (d), and (d-1),
	Transportation Code, as effective September 1, 2011, are amended to
	read as follows:
	(a)  The department may create new specialty license plates
	on its own initiative or on receipt of an application from a
	potential sponsor. A new specialty license plate created under
	this section must comply with each requirement of Section 504.702
	unless the license is created by the department on its own
	initiative. The department may permit a specialty license plate
	created under this section to be personalized. The redesign of an
	existing specialty license plate at the request of a sponsor shall
	be treated like the issuance of a new specialty license plate[,
	except that the department may require a nonrefundable design fee].
	(b)  Any nonprofit entity [person] may submit an application
	to the department to sponsor a new specialty license plate [by
	submitting an application to the department]. An application may
	nominate a state agency to receive funds derived from the issuance
	of the license plates. The application may also identify uses to
	which those funds should be appropriated.
	(d)  The fee for issuance of license plates created under
	this subchapter before November 19 [September 1], 2009, is $30
	unless the department sets a higher fee.  This subsection does not
	apply to a specialty license plate marketed and sold by a private
	vendor at the request of the specialty license plate sponsor.
	(d-1)  The fee for issuance of license plates created under
	this subchapter on or after November 19 [September 1], 2009, is the
	amount established under Section 504.851.
	SECTION 218.  The heading to Section 504.802, Transportation
	Code, is amended to read as follows:
	Sec. 504.802.  MARKETING AND SALE BY PRIVATE VENDOR OF
	SPECIALTY LICENSE PLATES [CREATED BEFORE SEPTEMBER 1, 2009].
	SECTION 219.  Section 504.802, Transportation Code, is
	amended by amending Subsections (a) and (c) and adding Subsection
	(d) to read as follows:
	(a)  A sponsor of a specialty license plate created under
	this subchapter [before September 1, 2009,] may contract with the
	private vendor authorized under Subchapter J for the marketing and
	sale of the specialty license plate.
	(c)  Notwithstanding any other law, from each fee received
	from the issuance of a specialty license plate marketed and sold by
	the private vendor under this section, the department shall:
	(1)  deduct the administrative costs described by
	Section 504.801(e)(1);
	(2)  deposit the portion of the fee for the sale of the
	plate that the state would ordinarily receive under the contract
	described by Section 504.851(a) to the credit of:
	(A)  the specialty license plate fund, if the
	sponsor nominated a state agency to receive the funds; [or]
	(B)  the general revenue fund, if the sponsor did
	not nominate a state agency to receive the funds or if there is no
	sponsor; or
	(C)  for a license plate issued under Section
	504.614, the public entity that provides or provided funds for the
	professional sports team's facility; and
	(3)  pay to the private vendor the remainder of the fee.
	(d)  A sponsor of a specialty license plate may reestablish
	its specialty license plate under Sections 504.601 and 504.702 and
	be credited its previous deposit with the department if a contract
	entered into by the sponsor under Subsection (a) terminates.
	SECTION 220.  Section 504.851, Transportation Code, is
	amended by amending Subsections (a-2), (c), (e), (f), and (h) and
	adding Subsections (a-3) and (m) to read as follows:
	(a-2)  Specialty license plates authorized for marketing and
	sale under Subsection (a) may be personalized and must include:
	(1)  specialty license plates created under
	Subchapters G and I on or after November 19 [September 1], 2009; and
	(2)  at the request of the specialty license plate
	sponsor, an existing specialty license plate created under
	Subchapters G and I before November 19 [September 1], 2009.
	(a-3)  The department may contract with the private vendor
	for the vendor to:
	(1)  host all or some of the specialty license plates on
	the vendor's website;
	(2)  process the purchase of specialty license plates
	hosted on the vendor's website and pay any additional transaction
	cost; and
	(3)  share in the personalization fee for the license
	plates hosted on the vendor's website.
	(c)  The board by rule shall establish the fees for the
	issuance or renewal of souvenir license plates, specialty license
	plates, or souvenir or specialty license plates that are
	personalized that are marketed and sold by the private vendor or
	hosted on the private vendor's website. The state's portion of the
	personalization fee may not be less than $40 for each year issued.
	Other fees [Fees] must be reasonable and not less than the amounts
	necessary to allow the department to recover all reasonable costs
	to the department associated with the evaluation of the competitive
	sealed proposals received by the department and with the
	implementation and enforcement of the contract, including direct,
	indirect, and administrative costs.  A fee established under this
	subsection is in addition to:
	(1)  the registration fee and any optional registration
	fee prescribed by this chapter for the vehicle for which specialty
	license plates are issued;
	(2)  any additional fee prescribed by this subchapter
	for the issuance of specialty license plates for that vehicle; and
	(3)  any additional fee prescribed by this subchapter
	for the issuance of personalized license plates for that vehicle.
	(e)  The portion of a contract with a private vendor
	regarding the marketing and sale of personalized license plates is
	payable only from amounts derived from the collection of the fee
	established under Subsection (b).  The portion of a contract with a
	private vendor regarding the marketing, hosting, and sale of
	souvenir license plates, specialty license plates, or souvenir or
	specialty license plates that are personalized under Section
	504.102 is payable only from amounts derived from the collection of
	the fee established under Subsection (c).
	(f)  The department may approve new design and color
	combinations for personalized or specialty license plates that are
	marketed and sold by a private vendor under a contract entered into
	with the private vendor.  Each approved license plate design and
	color combination remains the property of the department.
	(h)  Subject to the limitations provided by Subsections (g)
	and (g-1), the department may disapprove a design, cancel a license
	plate, or require the discontinuation of a license plate design or
	color combination that is marketed, hosted, or [and] sold by a
	private vendor under contract at any time if the department
	determines that the disapproval, cancellation, or discontinuation
	is in the best interest of this state or the motoring public.
	(m)  If the private vendor ceases operation:
	(1)  the program may be operated temporarily by the
	department under new agreements with the license plate sponsors
	until another vendor is selected and begins operation; and
	(2)  the private vendor's share of the revenue is
	deposited to the credit of the general revenue fund.
	SECTION 221.  Section 504.853, Transportation Code, is
	amended to read as follows:
	Sec. 504.853.  SPECIALTY AND PERSONALIZED LICENSE PLATES
	ISSUED BEFORE NOVEMBER 19 [SEPTEMBER 1], 2009. (a) A specialty or
	personalized license plate issued before November 19 [September 1],
	2009, may be issued for a subsequent registration period only if the
	applicant submits an application and pays the required fee for the
	applicable registration period.  A person who is issued a
	personalized license plate has first priority on that license plate
	for each subsequent registration period for which the person
	submits a new application for that plate.
	(b)  Unless the board by rule adopts a higher fee or the
	license plate is not renewed annually, the [The] fee for issuance of
	a [personalized] license plate issued before November 19 [September
	1], 2009, is:
	(1)  the fee provided for in Section 504.601 for a
	specialty license plate; and
	(2)  $40 for a personalized license plate[, unless the
	director adopts by rule a higher fee].
	(c)  A person who is issued a specialty or personalized
	license plate by the department before November 19 [September 1],
	2009, may:
	(1)  submit an application for the plate under
	Subsection (a) and pay the required fee for each subsequent
	registration period under Subsection (b); or
	(2)  purchase through the private vendor a license to
	display the alphanumeric pattern on a license plate for any term
	allowed by law.
	(d)  The department may not issue a replacement set of
	personalized license plates to the same person before the period
	set by rule [sixth anniversary of the date of issuance] unless the
	applicant for issuance of replacement plates pays an additional fee
	of $30.
	(e)  Of each fee collected by the department under Subsection
	(b)(2) [this section]:
	(1)  $1.25 shall be used by the department to defray the
	cost of administering this section; and
	(2)  the remainder shall be deposited to the credit of
	the general revenue fund.
	SECTION 222.  Sections 504.854(a) and (b), Transportation
	Code, are amended to read as follows:
	(a)  The board by rule [private vendor] may provide for the
	private vendor to:
	(1)  sell at auction a license to display a unique
	alphanumeric pattern on a license plate for a period set by board
	rule;
	(2)  reserve an unissued alphanumeric pattern from the
	department for purposes of auctioning a license to display the
	pattern for a period set by board rule; and
	(3)  purchase from a customer an unexpired license to
	display an alphanumeric pattern for purposes of auction by the
	vendor.
	(b)  A [Only a] license to display an alphanumeric pattern
	purchased under this section [or a license to display an
	alphanumeric pattern sold by the private vendor under Section
	504.853] may be transferred to another person without payment of
	the fee provided by Section 504.855.  [The transferee is entitled to
	the same rights and privileges as the transferor.]
	SECTION 223.  Subchapter J, Chapter 504, Transportation
	Code, is amended by adding Section 504.855 to read as follows:
	Sec. 504.855.  TRANSFERABILITY OF CERTAIN PATTERNS. The
	board by rule may:
	(1)  authorize a person who purchases a license to
	display an alphanumeric pattern for a period of five years or more
	to transfer the license; and
	(2)  establish a transfer fee to be distributed in
	accordance with the contract with the private vendor.
	SECTION 224.  Chapter 504, Transportation Code, is amended
	by adding Subchapter K to read as follows:
	SUBCHAPTER K. TRANSFER AND REMOVAL OF LICENSE PLATES
	Sec. 504.901.  TRANSFER AND REMOVAL OF LICENSE PLATES. (a)
	On the sale or transfer of a motor vehicle to a dealer who holds a
	general distinguishing number issued under Chapter 503, the dealer
	shall remove each license plate issued for the motor vehicle. A
	person may use the license plates removed from a motor vehicle on a
	new motor vehicle purchased from a dealer after the person obtains
	the department's approval of a title and registration application.
	(b)  On the sale or transfer of a motor vehicle to a person
	who does not hold a general distinguishing number issued under
	Chapter 503, the seller may remove each license plate issued for the
	motor vehicle. The license plates may be transferred to another
	vehicle titled in the seller's name if the seller obtains:
	(1)  the department's approval of an application to
	transfer the license plates; and
	(2)  a new registration insignia for the motor vehicle.
	(c)  A license plate removed from a motor vehicle that is not
	transferred to another motor vehicle must be disposed of in a manner
	specified by the department.
	(d)  To be eligible for transfer, license plates must be
	appropriate for the class of vehicle to which the plates are being
	transferred.
	SECTION 225.  Chapter 504, Transportation Code, is amended
	by adding Subchapter L to read as follows:
	SUBCHAPTER L. OFFENSES AND PENALTIES
	Sec. 504.941.  ANTIQUE VEHICLES; OFFENSE. (a) A person who
	violates Section 504.502 commits an offense. An offense under this
	section is a misdemeanor punishable by a fine of not less than $5 or
	more than $200.
	(b)  It is an affirmative defense to prosecution under this
	section that at the time of the offense the vehicle was en route to
	or from a location for the purpose of routine maintenance of the
	vehicle.
	Sec. 504.942.  LOG LOADER VEHICLES; PENALTIES. A vehicle
	operated in violation of Section 504.506 is considered to be
	operated or moved while unregistered and is immediately subject to
	the applicable fees and penalties prescribed by this chapter.
	Sec. 504.943.  OPERATION OF VEHICLE WITHOUT LICENSE PLATE.
	(a)  Except as provided by Subsection (b), a person commits an
	offense if the person operates on a public highway, during a
	registration period, a motor vehicle that does not display two
	license plates that:
	(1)  have been assigned by the department for the
	period; and
	(2)  comply with department rules regarding the
	placement of license plates.
	(b)  A person commits an offense if the person operates on a
	public highway during a registration period a road tractor,
	motorcycle, trailer, or semitrailer that does not display a license
	plate that:
	(1)  has been assigned by the department for the
	period; and
	(2)  complies with department rules regarding the
	placement of license plates.
	(c)  This section does not apply to a dealer operating a
	vehicle as provided by law.
	(d)  A court may dismiss a charge brought under Subsection
	(a)(1) if the defendant:
	(1)  remedies the defect before the defendant's first
	court appearance; and
	(2)  pays an administrative fee not to exceed $10.
	SECTION 226.  Section 502.408, Transportation Code, is
	transferred to Subchapter L, Chapter 504, Transportation Code, as
	added by this Act, redesignated as Section 504.944, Transportation
	Code, and amended to read as follows:
	Sec. 504.944  [502.408].  OPERATION OF VEHICLE WITH WRONG
	LICENSE PLATE. [(a)]  A person commits an offense if the person
	operates, or as the owner permits another to operate, on a public
	highway a motor vehicle that has attached to it a number plate or
	registration insignia issued for a different vehicle. An offense
	under this section [subsection] is a misdemeanor punishable by a
	fine not to exceed $200.
	SECTION 227.  Subchapter L, Chapter 504, Transportation
	Code, as added by this Act, is amended by adding Section 504.945 to
	read as follows:
	Sec. 504.945.  WRONG, FICTITIOUS, ALTERED, OR OBSCURED
	LICENSE PLATE. (a) A person commits an offense if the person
	attaches to or displays on a motor vehicle a license plate that:
	(1)  is issued for a different motor vehicle;
	(2)  is issued for the vehicle under any other motor
	vehicle law other than by the department;
	(3)  is assigned for a registration period other than
	the registration period in effect;
	(4)  is fictitious;
	(5)  has blurring or reflective matter that
	significantly impairs the readability of the name of the state in
	which the vehicle is registered or the letters or numbers of the
	license plate number at any time;
	(6)  has an attached illuminated device or sticker,
	decal, emblem, or other insignia that is not authorized by law and
	that interferes with the readability of the letters or numbers of
	the license plate number or the name of the state in which the
	vehicle is registered; or
	(7)  has a coating, covering, protective substance, or
	other material that:
	(A)  distorts angular visibility or
	detectability;
	(B)  alters or obscures one-half or more of the
	name of the state in which the vehicle is registered; or
	(C)  alters or obscures the letters or numbers of
	the license plate number or the color of the plate.
	(b)  Except as provided by Subsection (e), an offense under
	Subsection (a) is a misdemeanor punishable by a fine of not more
	than $200, unless it is shown at the trial of the offense that the
	owner knowingly altered or made illegible the letters, numbers, and
	other identification marks, in which case the offense is a Class B
	misdemeanor.
	(c)  Subsection (a)(7) may not be construed to apply to:
	(1)  a trailer hitch installed on a vehicle in a normal
	or customary manner;
	(2)  a transponder, as defined by Section 228.057, that
	is attached to a vehicle in the manner required by the issuing
	authority;
	(3)  a wheelchair lift or wheelchair carrier that is
	attached to a vehicle in a normal or customary manner;
	(4)  a trailer being towed by a vehicle; or
	(5)  a bicycle or motorcycle rack that is attached to a
	vehicle in a normal or customary manner.
	(d)  A court may dismiss a charge brought under Subsection
	(a)(3), (5), (6), or (7) if the defendant:
	(1)  remedies the defect before the defendant's first
	court appearance; and
	(2)  pays an administrative fee not to exceed $10.
	(e)  An offense under Subsection (a)(4) is a Class B
	misdemeanor.
	SECTION 228.  Subchapter A, Chapter 520, Transportation
	Code, is amended by adding Sections 520.003 and 520.004 to read as
	follows:
	Sec. 520.003.  RULES; WAIVER OF FEES. The department may
	adopt rules to administer this chapter, including rules that waive
	the payment of fees if a dealer has gone out of business and the
	applicant can show that fees were paid to the dealer.
	Sec. 520.004.  DEPARTMENT RESPONSIBILITIES. The department
	has jurisdiction over the registration and titling of, and the
	issuance of license plates to, motor vehicles in compliance with
	the applicable statutes.  The board by rule:
	(1)  shall provide services that are reasonable,
	adequate, and efficient;
	(2)  shall establish standards for uniformity and
	service quality for counties and dealers licensed under Section
	520.005; and
	(3)  may conduct public service education campaigns
	related to the department's functions.
	SECTION 229.  Section 501.137, Transportation Code, is
	transferred to Subchapter A, Chapter 520, Transportation Code,
	redesignated as Section 520.005, Transportation Code, and amended
	to read as follows:
	Sec. 520.005  [501.137].  DUTY AND RESPONSIBILITIES OF
	COUNTY ASSESSOR-COLLECTOR. (a)  Each county assessor-collector
	shall comply with Chapter 501 [this chapter].
	(b)  An assessor-collector who fails or refuses to comply
	with Chapter 501 [this chapter] is liable on the
	assessor-collector's official bond for resulting damages suffered
	by any person.
	(c)  Notwithstanding the requirements of Sections 520.008
	and 520.0091, the assessor-collector may license franchised and
	non-franchised motor vehicle dealers to title and register motor
	vehicles in accordance with rules adopted under Section 520.004.
	The county assessor-collector may pay a fee to a motor vehicle
	dealer independent of or as part of the portion of the fees that
	would be collected by the county for each title and registration
	receipt issued.
	SECTION 230.  Section 502.109, Transportation Code, is
	transferred to Subchapter A, Chapter 520, Transportation Code,
	redesignated as Section 520.006, Transportation Code, and amended
	to read as follows:
	Sec. 520.006 [502.109].  COMPENSATION OF ASSESSOR-COLLECTOR.
	(a)  A county assessor-collector shall receive a fee of $1.90 for
	each receipt issued under Chapter 502 [this chapter. If the
	assessor-collector may be compensated by fees, a fee received is
	compensation for services under this chapter. The
	assessor-collector shall deduct the fee weekly from the gross
	collections made under this chapter].
	(a-1)  A county collecting fees on behalf of a county that
	has been declared as a disaster area for purposes of Section 501.023
	or 502.040 may retain the commission for fees collected, but shall
	allocate the fees to the county declared as a disaster area.
	(b)  A county assessor-collector who is compensated under
	this section shall pay the entire expense of issuing registration
	receipts and license plates under Chapter 501 or 502 [this chapter]
	from the compensation allowed under this section.
	SECTION 231.  Section 502.111, Transportation Code, is
	transferred to Subchapter A, Chapter 520, Transportation Code,
	redesignated as Section 520.007, Transportation Code, and amended
	to read as follows:
	Sec. 520.007  [502.111].  COUNTY BRANCH OFFICES. (a)  The
	commissioners court of a county may authorize the county
	assessor-collector to:
	(1)  establish a suboffice or branch office for vehicle
	registration at one or more locations in the county other than the
	county courthouse; or
	(2)  appoint a deputy to register vehicles in the same
	manner and with the same authority as though done in the office of
	the assessor-collector.
	(b)  The report of vehicles registered through a suboffice or
	branch office shall be made through the office of the county
	assessor-collector.
	SECTION 232.  Section 502.114, Transportation Code, is
	transferred to Subchapter A, Chapter 520, Transportation Code,
	redesignated as Section 520.008, Transportation Code, and amended
	to read as follows:
	Sec. 520.008  [502.114].  FULL-SERVICE DEPUTIES. (a)  A
	full-service deputy appointed under Section 520.0091 [502.112]
	shall accept any application for registration, registration
	renewal, or title transfer that the county assessor-collector may
	accept.
	(b)  A full-service deputy may charge and retain an
	additional motor vehicle registration fee not to exceed $5 for each
	motor vehicle registration issued.
	(c)  A county assessor-collector may delegate to a
	full-service deputy, in the manner selected by the
	assessor-collector, the authority to use data processing equipment
	and software provided by the department for use in the titling and
	registration of motor vehicles. The department may not limit a
	county assessor-collector's ability to delegate the
	assessor-collector's functions regarding the titling and
	registration of motor vehicles to a qualified full-service deputy
	in the manner the assessor-collector considers appropriate.
	SECTION 233.  Section 502.113, Transportation Code, is
	transferred to Subchapter A, Chapter 520, Transportation Code,
	redesignated as Section 520.009, Transportation Code, and amended
	to read as follows:
	Sec. 520.009  [502.113].  LIMITED-SERVICE DEPUTIES. (a)  A
	limited-service deputy appointed under Section 520.0091 [502.112]
	may only accept registration renewals [renewal cards] provided by
	the department and may not prepare or accept an application for
	title transfer.
	(b)  The county assessor-collector may pay a limited-service
	deputy an amount not to exceed the fee the assessor-collector could
	collect under Section 520.006(a) [502.109(a)] for each
	registration receipt issued. The commissioners court of the county
	may permit a limited-service deputy to charge and retain an
	additional fee not to exceed $1 for each registration receipt
	issued by the deputy.
	SECTION 234.  Section 502.112, Transportation Code, is
	transferred to Subchapter A, Chapter 520, Transportation Code, and
	redesignated as Section 520.0091, Transportation Code, to read as
	follows:
	Sec. 520.0091  [502.112].  DEPUTY ASSESSOR-COLLECTORS.
	(a)  A county assessor-collector, with the approval of the
	commissioners court of the county, may deputize an individual or
	business entity to:
	(1)  issue motor vehicle registration receipts as a
	limited-service deputy; or
	(2)  issue motor vehicle registration receipts and
	prepare or accept applications for title transfers as a
	full-service deputy.
	(b)  An individual or business entity is eligible to be
	deputized as a limited-service deputy if the person:
	(1)  is trained to issue registration receipts by the
	county assessor-collector; and
	(2)  posts a bond payable to the county
	assessor-collector:
	(A)  in an amount determined by the
	assessor-collector; and
	(B)  conditioned on the person's proper
	accounting and remittance of all fees the person collects.
	(c)  An individual or business entity is eligible to be
	deputized as a full-service deputy if the person:
	(1)  meets the requirements of Subsection (b); and
	(2)  has experience in title transfers.
	(d)  A person deputized under this section shall keep a
	separate account of the fees collected and a record of daily
	receipts.
	SECTION 235.  Section 501.136, Transportation Code, is
	transferred to Subchapter A, Chapter 520, Transportation Code,
	redesignated as Section 520.0092, Transportation Code, and amended
	to read as follows:
	Sec. 520.0092  [501.136].  ACTS BY DEPUTY COUNTY
	ASSESSOR-COLLECTOR. A deputy county assessor-collector, other
	than a limited service deputy appointed under Section 520.0091
	[502.112], may perform the duties of an assessor-collector under
	Chapter 501 [this chapter].
	SECTION 236.  Section 520.002, Transportation Code, is
	redesignated as Section 520.0093, Transportation Code, and amended
	to read as follows:
	Sec. 520.0093  [520.002].  LEASE OF ADDITIONAL COMPUTER
	EQUIPMENT. (a)  This section applies only to the lease of equipment
	to a county for the operation of the automated registration and
	titling [title] system in addition to the equipment provided by the
	department at no cost to the county under a formula prescribed by
	the department.
	(b)  On the request of the tax assessor-collector of a
	county, the department may enter into an agreement with the
	commissioners court of that county under which the department
	leases additional equipment to the county for the use of the tax
	assessor-collector in operating the automated registration and
	titling [title] system in that county.
	(c)  A county may install equipment leased under this section
	at offices of the county or of an agent of the county.
	(d)  Equipment leased under this section:
	(1)  remains the property of the department; and
	(2)  must be used primarily for the automated
	registration and titling [title] system.
	(e)  Under the agreement, the department shall charge [the
	county] an amount not less than the amount of the cost to the
	department to provide the additional equipment and any related
	services under the lease. All money collected under the lease shall
	be deposited to the credit of the state highway fund.
	SECTION 237.  The heading to Subchapter B, Chapter 520,
	Transportation Code, is amended to read as follows:
	SUBCHAPTER B. ADMINISTRATIVE PROVISIONS [MOTOR NUMBER RECORD
	REQUIREMENTS]
	SECTION 238.  Subchapter B, Chapter 520, Transportation
	Code, is amended by adding Section 520.015 to read as follows:
	Sec. 520.015.  INFORMATION CONSOLIDATION STUDY. (a)  In
	consultation with the Department of Public Safety, the department
	shall conduct a study on the consolidation of similar information
	that is collected separately by each agency. The study should
	include recommendations that sufficiently protect the privacy of
	the public and the security and integrity of information provided.
	(b)  The study must be completed not later than September 1,
	2012.
	SECTION 239.  Section 520.036, Transportation Code, is
	transferred to Subchapter B, Chapter 520, Transportation Code,
	redesignated as Section 520.016, Transportation Code, and amended
	to read as follows:
	Sec. 520.016  [520.036].  GENERAL PENALTY. (a)  A person
	commits an offense if the person violates this subchapter in a
	manner for which a specific penalty is not provided.
	(b)  An offense under this section is a misdemeanor
	punishable by a fine of not less than $50 and not more than $200.
	(c)  This section does not apply to a violation of Section
	520.006, 520.008, 520.009, 520.0091, or 520.0092.
	SECTION 240.  Section 520.051(5), Transportation Code, is
	amended to read as follows:
	(5)  "Title service record" means the written or
	electronic record for each transaction in which a motor vehicle
	title service receives compensation.
	SECTION 241.  Section 548.052, Transportation Code, is
	amended to read as follows:
	Sec. 548.052.  VEHICLES NOT SUBJECT TO INSPECTION. This
	chapter does not apply to:
	(1)  a trailer, semitrailer, pole trailer, or mobile
	home moving under or bearing a current factory-delivery license
	plate or current in-transit license plate;
	(2)  a vehicle moving under or bearing a paper dealer
	in-transit tag, machinery license, disaster license, parade
	license, prorate tab, one-trip permit, vehicle temporary transit
	permit, antique license, temporary 24-hour permit, or permit
	license;
	(3)  a trailer, semitrailer, pole trailer, or mobile
	home having an actual gross weight or registered gross weight of
	4,500 pounds or less;
	(4)  farm machinery, road-building equipment, a farm
	trailer, or a vehicle required to display a slow-moving-vehicle
	emblem under Section 547.703;
	(5)  a former military vehicle, as defined by Section
	504.502 [502.275];
	(6)  a vehicle qualified for a tax exemption under
	Section 152.092, Tax Code; or
	(7)  a vehicle for which a certificate of title has been
	issued but that is not required to be registered.
	SECTION 242.  Section 681.012(a-1), Transportation Code, is
	amended to read as follows:
	(a-1)  A peace officer may seize a disabled parking placard
	from a person who operates a vehicle on which a disabled parking
	placard is displayed if the peace officer determines by inspecting
	the person's driver's license or personal identification
	certificate that the disabled parking placard does not contain the
	first four digits of the driver's license number or personal
	identification certificate number and the initials of:
	(1)  the person operating the vehicle; [or]
	(2)  the applicant on behalf of a person being
	transported by the vehicle; or
	(3)  a person being transported by the vehicle.
	SECTION 243.  Subchapter B, Chapter 372, Transportation
	Code, is amended by adding Section 372.054 to read as follows:
	Sec. 372.054.  REPORTING FAILURE TO PAY TOLL OR
	ADMINISTRATIVE FEE. (a) A toll project entity may report the
	failure to pay a toll or administrative fee to a county
	assessor-collector or the Texas Department of Motor Vehicles in
	order to deny registration of the nonpaying vehicle, as provided in
	Section 502.011.
	(b)  For purposes of this section "toll project entity" has
	the meaning assigned by Section 372.001, but does not include a
	county operating under Chapter 284 unless the commissioners court
	of the county adopts an order expressly electing to have this
	section apply to the county.
	SECTION 244.  Section 681.005, Transportation Code, is
	amended to read as follows:
	Sec. 681.005.  DUTIES OF COUNTY ASSESSOR-COLLECTOR. Each
	county assessor-collector shall send to the department[:
	[(1)]  each fee collected under Section 681.003, to be
	deposited in the state highway fund to defray the cost of providing
	the disabled parking placard[; and
	[(2)     a copy of each application for a disabled parking
	placard].
	SECTION 245.  Section 728.002, Transportation Code, is
	amended by adding Subsection (d) to read as follows:
	(d)  This section does not prohibit the quoting of a price
	for a motor home, tow truck, or towable recreational vehicle at a
	show or exhibition described by Section 2301.358, Occupations Code.
	SECTION 246.  Section 386.251(c), Health and Safety Code, is
	amended to read as follows:
	(c)  The fund consists of:
	(1)  the amount of money deposited to the credit of the
	fund under:
	(A)  Section 386.056;
	(B)  Sections 151.0515 and 152.0215, Tax Code; and
	(C)  Sections 501.138, 502.358 [502.1675], and
	548.5055, Transportation Code; and
	(2)  grant money recaptured under Section 386.111(d)
	and Chapter 391.
	SECTION 247.  Section 2302.201(a), Occupations Code, is
	amended to read as follows:
	(a)  Except as provided by Section 501.10025, Transportation
	Code, a [A] salvage vehicle dealer who acquires ownership of a
	salvage motor vehicle from an owner must receive from the owner a
	properly assigned title.
	SECTION 248.  Section 2302.204, Occupations Code, is amended
	to read as follows:
	Sec. 2302.204.  CASUAL SALES. This chapter does not apply to
	a person who purchases fewer than five [three] nonrepairable motor
	vehicles or salvage motor vehicles from a salvage vehicle dealer,
	an insurance company or salvage pool operator in a casual sale at
	auction, except that:
	(1)  the board shall adopt rules as necessary to
	regulate casual sales by salvage vehicle dealers, insurance
	companies, or salvage pool operators and to enforce this section;
	and
	(2)  a salvage vehicle dealer, insurance company, or
	salvage pool operator who sells a motor vehicle in a casual sale
	shall comply with those rules and Subchapter E, Chapter 501,
	Transportation Code.
	SECTION 249.  Subchapter H, Chapter 2302, Occupations Code,
	is amended by adding Section 2302.354 to read as follows:
	Sec. 2302.354.  ADMINISTRATIVE PENALTY. (a) The department
	may impose an administrative penalty against a person licensed
	under this chapter who violates this chapter or a rule or order
	adopted under this chapter.
	(b)  The penalty may not be less than $50 or more than $1,000,
	and each day a violation continues or occurs is a separate violation
	for the purpose of imposing a penalty. The amount of the penalty
	shall be based on:
	(1)  the seriousness of the violation, including the
	nature, circumstances, extent, and gravity of the violation;
	(2)  the economic harm caused by the violation;
	(3)  the history of previous violations;
	(4)  the amount necessary to deter a future violation;
	(5)  efforts to correct the violation; and
	(6)  any other matter that justice requires.
	(c)  The person may stay enforcement during the time the
	order is under judicial review if the person pays the penalty to the
	court clerk or files a supersedeas bond with the court in the amount
	of the penalty. A person who cannot afford to pay the penalty or
	file the bond may stay enforcement by filing an affidavit in the
	manner required by the Texas Rules of Civil Procedure for a party
	who cannot afford to file security for costs, subject to the right
	of the department to contest the affidavit as provided by those
	rules.
	(d)  A proceeding to impose an administrative penalty is
	subject to Chapter 2001, Government Code.
	SECTION 250.  Section 152.001, Tax Code, is amended by
	amending Subdivision (3) and adding Subdivision (20) to read as
	follows:
	(3)  "Motor vehicle [Vehicle]" includes:
	(A)  a self-propelled vehicle designed to
	transport persons or property on a public highway;
	(B)  a trailer and semitrailer, including a van,
	flatbed, tank, dumpster, dolly, jeep, stinger, auxiliary axle, or
	converter gear; [and]
	(C)  a house trailer as defined by Chapter 501,
	Transportation Code; and
	(D)  an off-road vehicle that is not required to
	be registered under Chapter 502, Transportation Code.
	(20)  "Off-road vehicle" means:
	(A)  an all-terrain vehicle or a recreational
	off-highway vehicle, as those terms are defined by Section 502.001,
	Transportation Code, provided that the vehicle may be designed by
	the manufacturer primarily for farming; or
	(B)  a motorcycle designed by the manufacturer for
	off-highway use.
	SECTION 251.  Section 152.091, Tax Code, is amended to read
	as follows:
	Sec. 152.091.  FARM OR TIMBER USE. (a) The taxes imposed by
	this chapter do not apply to the sale or use of [a]:
	(1)  a farm machine, a trailer, a [or] semitrailer, or
	an off-road vehicle for use primarily for farming and ranching,
	including the rearing of poultry, and use in feedlots; or
	(2)  a machine, a trailer, a [or] semitrailer, or an
	off-road vehicle for use primarily for timber operations.
	(b)(1)  The taxes imposed by this chapter do not apply to the
	purchase of [a]:
	(A)  a farm machine, a trailer, a [or]
	semitrailer, or an off-road vehicle that is to be leased for use
	primarily for farming and ranching, including the rearing of
	poultry, and use in feedlots; or
	(B)  a machine, a trailer, a [or] semitrailer, or
	an off-road vehicle that is to be leased for use primarily for
	timber operations.
	(2)  The exemption provided by this subsection applies
	only if the person purchasing the machine, trailer, [or]
	semitrailer, or off-road vehicle to be leased presents the tax
	assessor-collector a form prescribed and provided by the
	comptroller showing:
	(A)  the identification of the motor vehicle;
	(B)  the name and address of the lessor and the
	lessee; and
	(C)  verification by the lessee that the machine,
	trailer, [or] semitrailer, or off-road vehicle will be used
	primarily for:
	(i)  farming and ranching, including the
	rearing of poultry, and use in feedlots; or
	(ii)  timber operations.
	(3)  If a motor vehicle for which the tax has not been
	paid ceases to be leased for use primarily for farming and ranching,
	including the rearing of poultry, and use in feedlots or timber
	operations, the owner shall notify the comptroller on a form
	provided by the comptroller and shall pay the sales or use tax on
	the motor vehicle based on the owner's book value of the motor
	vehicle. The tax is imposed at the same percentage rate that is
	provided by Section 152.021(b).
	(c)  The taxes imposed by this chapter do not apply to the
	rental of a farm machine, a trailer, [or] a semitrailer, or an
	off-road vehicle for use primarily for farming and ranching,
	including the rearing of poultry, and use in feedlots, or a machine,
	a trailer, [or] a semitrailer, or an off-road vehicle for use
	primarily for timber operations. The tax that would have been
	remitted on gross rental receipts without this exemption shall be
	deemed to have been remitted for the purpose of calculating the
	minimum gross rental receipts imposed by Section 152.026. The
	exemption provided by this subsection applies only if the owner of
	the motor vehicle obtains in good faith an exemption certificate
	from the person to whom the vehicle is being rented.
	(d)  For purposes of this section, a machine or an off-road
	vehicle is used "primarily for timber operations" if the machine or
	off-road vehicle is a self-propelled motor vehicle that is
	specially adapted to perform a specialized function in the
	production of timber, including land preparation, planting,
	maintenance, and gathering of trees commonly grown for commercial
	timber. The term does not include a self-propelled motor vehicle
	used to transport timber or timber products.
	SECTION 252.  The following provisions of the Transportation
	Code are repealed:
	(1)  Sections 501.026 and 501.075;
	(2)  Sections 501.094 and 501.133;
	(3)  Sections 501.134(e), (f), and (i);
	(4)  Sections 502.0074, 502.0075, 502.008, 502.104,
	502.105, 502.1535, 502.154, 502.175, 502.177, 502.206, 502.271,
	502.2862, and 502.2971;
	(5)  Sections 502.403 and 502.405;
	(6)  Section 502.407(c);
	(7)  Section 502.412(c);
	(8)  Sections 502.452, 502.453, 502.455, and 502.456;
	(9)  Section 504.201(h);
	(10)  Section 504.316(b);
	(11)  Section 504.401(b);
	(12)  Section 504.402(b);
	(13)  Section 504.403(b);
	(14)  Section 504.404(b);
	(15)  Section 504.405(b);
	(16)  Section 504.502(j);
	(17)  Section 504.506(f);
	(18)  Section 504.507(c);
	(19)  Section 504.508(d);
	(20)  Sections 504.624, 504.629, 504.634, 504.643,
	504.649, 504.650, 504.653, 504.655, and 504.701;
	(21)  Section 504.702(c);
	(22)  Section 504.851(k);
	(23)  Section 504.854(c);
	(24)  Sections 520.013 and 520.034; and
	(25)  the headings to Subchapters C and D, Chapter 520.
	SECTION 253.  (a)  Section 19, Chapter 1136, Acts of the 81st
	Legislature, Regular Session, 2009, is repealed.
	(b)  This section takes effect August 31, 2011.
	SECTION 254.  Section 501.0225, Transportation Code, as
	added by this Act, applies only to a person who purchases, imports,
	or otherwise acquires an off-road vehicle on or after the effective
	date of this Act. A person who purchases, imports, or otherwise
	acquires an off-road vehicle before the effective date of this Act
	is governed by the law in effect immediately before the effective
	date of this Act, and the former law is continued in effect for that
	purpose.
	SECTION 255.  Sections 152.001 and 152.091, Tax Code, as
	amended by this Act, do not affect tax liability accruing before the
	effective date of this Act. That liability continues in effect as
	if this Act had not been enacted, and the former law is continued in
	effect for the collection of taxes due and for civil and criminal
	enforcement of the liability for those taxes.
	SECTION 256.  Section 2302.354, Occupations Code, as added
	by this Act, applies only to a violation of Chapter 2302,
	Occupations Code, or a rule or order of the Texas Department of
	Motor Vehicles adopted under that chapter, committed on or after
	the effective date of this Act. A violation committed before the
	effective date of this Act is governed by the law in effect when the
	violation was committed, and the former law is continued in effect
	for that purpose.
	SECTION 257.  (a) The change in law made by this Act applies
	only to an offense committed on or after January 1, 2012.
	(b)  An offense committed before January 1, 2012, is covered
	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
	subsection, an offense was committed before January 1, 2012, if any
	element of the offense was committed before that date.
	SECTION 258.  To the extent of any conflict, this Act
	prevails over another Act of the 82nd Legislature, Regular Session,
	2011, relating to nonsubstantive additions to and corrections in
	enacted codes.
	SECTION 259.  Except as otherwise provided by this Act, this
	Act takes effect January 1, 2012.