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A BILL TO BE ENTITLED
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AN ACT
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relating to assembled vehicles, including the titling and |
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registration of those vehicles. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter A, Chapter 2301, Occupations Code, is |
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amended by adding Section 2301.0045 to read as follows: |
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Sec. 2301.0045. NONAPPLICABILITY OF CHAPTER TO ASSEMBLED |
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VEHICLES AND HOBBYIST. This chapter does not apply to an assembled |
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vehicle or a hobbyist, as those terms are defined by Section |
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731.001, Transportation Code. |
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SECTION 2. Subtitle J, Title 7, Transportation Code, is |
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amended by adding Chapter 731 to read as follows: |
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CHAPTER 731. ASSEMBLED VEHICLES |
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SUBCHAPTER A. GENERAL PROVISIONS |
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Sec. 731.001. DEFINITIONS. (a) In this chapter: |
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(1) "Assembled vehicle" means a vehicle that: |
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(A) is assembled from the following three basic |
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component parts: |
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(i) motor; |
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(ii) frame; and |
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(iii) body; and |
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(B) is: |
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(i) built, assembled, constructed, or |
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reconstructed from new or used materials and parts by a hobbyist; |
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(ii) altered or modified to the extent that |
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the vehicle no longer reflects the original manufacturer's |
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configuration; or |
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(iii) assembled from a kit. |
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(2) "Board" means the board of the Texas Department of |
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Motor Vehicles. |
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(3) "Hobbyist" means a person who: |
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(A) assembles, constructs, or reconstructs an |
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assembled vehicle; and |
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(B) is the owner of the assembled vehicle. |
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(4) "Master technician" means a person who holds a |
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master technician certification issued by the National Institute |
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for Automotive Service Excellence. |
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(5) "Owner" has the meaning assigned by Section |
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541.001. |
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(6) "Title" has the meaning assigned by Section |
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501.002. |
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(b) For purposes of Subsection (a)(1), the term "assembled |
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vehicle" includes the following types of assembled vehicles: |
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(1) kit vehicles; |
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(2) dune buggies; |
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(3) sand rails; |
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(4) glider kits; |
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(5) replicas; and |
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(6) custom vehicles and street rods, as those terms |
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are defined by Section 504.501. |
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Sec. 731.002. RULES. The board may adopt rules as necessary |
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to implement and administer this chapter. |
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Sec. 731.003. CONFLICT OF LAW. To the extent of a conflict |
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between this chapter, including a rule adopted under this chapter, |
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and another law, this chapter controls. |
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SUBCHAPTER B. TITLE AND REGISTRATION |
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Sec. 731.051. ELIGIBILITY FOR TITLE AND REGISTRATION. (a) |
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Except as provided by Subsection (b), an owner of an assembled |
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vehicle shall title and register the vehicle as provided by |
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Chapters 501 and 502, as applicable, and in accordance with rules |
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adopted under this chapter, regardless of whether the vehicle has a |
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manufacturer's statement of origin, as defined by Section 2301.002, |
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Occupations Code, or manufacturer's certificate of origin. |
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(b) An assembled vehicle may not be titled or registered in |
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this state if the vehicle: |
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(1) is assembled, constructed, or reconstructed from |
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the merging of two or more vehicle classes; |
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(2) uses the frame or body of a vehicle that has been |
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declared nonrepairable or junked; |
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(3) contains any electrical or mechanical components |
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from a flood-damaged vehicle; |
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(4) is designed for off-highway use only; |
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(5) is designed by the manufacturer for on-track |
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racing; |
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(6) has been stripped to the extent that the vehicle |
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loses its original identity; or |
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(7) uses any parts that do not meet federal motor |
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vehicle safety standards, if standards have been developed for |
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those parts. |
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Sec. 731.052. PROCEDURES AND REQUIREMENTS FOR TITLE AND |
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REGISTRATION. (a) The board by rule shall establish procedures and |
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requirements for: |
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(1) issuance of a title for an assembled vehicle; and |
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(2) registration of an assembled vehicle. |
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(b) Rules adopted under Subsection (a): |
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(1) may not exclude a type of assembled vehicle, other |
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than an assembled vehicle described by Section 731.051(b), from |
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eligibility for title and registration; |
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(2) must establish the form of a title issued for an |
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assembled vehicle, including the information contained on the |
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title; |
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(3) must exempt an assembled vehicle or a type of |
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assembled vehicle from any provision of Chapter 501 or 502 that an |
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assembled vehicle or type of assembled vehicle, by its nature, |
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cannot comply with or otherwise meet the requirements of; and |
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(4) may require the owner of an assembled vehicle to |
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provide proof that the vehicle passed an inspection or reinspection |
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conducted by a master technician in addition to passing any |
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inspection or reinspection required under Chapter 548. |
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(c) A rule described by Subsection (b)(4): |
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(1) may apply to all assembled vehicles or may apply |
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only to certain types of assembled vehicles; |
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(2) must specify the items of equipment that must be |
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inspected by a master technician and may specify different items of |
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equipment that must be inspected based on the type of assembled |
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vehicle; |
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(3) must require a master technician conducting the |
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inspection to evaluate the structural integrity of the assembled |
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vehicle, including the connection points of the: |
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(A) frame, chassis, or body; |
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(B) steering system; |
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(C) drive train; and |
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(D) suspension; and |
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(4) must require an owner of an assembled vehicle that |
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is required to have the vehicle inspected or reinspected by a master |
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technician to pay all fees required for the inspection or |
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reinspection in addition to all applicable fees required under |
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Chapter 548 for an inspection or reinspection conducted under that |
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chapter. |
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SECTION 3. Section 501.002, Transportation Code, is amended |
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by amending Subdivisions (1), (8), (15), (24), (31), and (32) and |
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adding Subdivision (1-a) to read as follows: |
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(1) "Assembled vehicle" has the meaning assigned by |
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Section 731.001. |
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(1-a) "Certificate of title" means a printed record of |
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title issued under Section 501.021. |
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(8) "First sale" means: |
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(A) the bargain, sale, transfer, or delivery of a |
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motor vehicle, other than an assembled vehicle, that has not been |
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previously registered or titled, with intent to pass an interest in |
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the motor vehicle, other than a lien, regardless of where the |
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bargain, sale, transfer, or delivery occurred; and |
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(B) the registration or titling of that vehicle. |
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(15) "Manufacturer's permanent vehicle identification |
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number" means the number affixed by the manufacturer to a motor |
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vehicle, other than an assembled vehicle, in a manner and place |
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easily accessible for physical examination and die-stamped or |
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otherwise permanently affixed on one or more removable parts of the |
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vehicle. |
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(24) "Serial number" means a vehicle identification |
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number that is affixed to a part of a motor vehicle and that is: |
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(A) the manufacturer's permanent vehicle |
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identification number; |
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(B) a derivative number of the manufacturer's |
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permanent vehicle identification number; |
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(C) the motor number; [or] |
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(D) the vehicle identification number assigned |
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by the department; or |
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(E) the vehicle identification number assigned |
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by the maker of a kit, if the vehicle is an assembled vehicle that is |
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assembled from a kit. |
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(31) "Used motor vehicle" means a motor vehicle, other |
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than an assembled vehicle, that has been the subject of a first |
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sale. |
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(32) "Vehicle identification number" means: |
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(A) the manufacturer's permanent vehicle |
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identification number affixed by the manufacturer to the motor |
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vehicle that is easily accessible for physical examination and |
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permanently affixed on one or more removable parts of the vehicle; |
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or |
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(B) a serial number affixed to a part of a motor |
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vehicle that is: |
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(i) a derivative number of the |
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manufacturer's permanent vehicle identification number; |
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(ii) the motor number; [or] |
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(iii) a vehicle identification number |
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assigned by the department; or |
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(iv) the vehicle identification number |
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assigned by the maker of a kit, if the vehicle is an assembled |
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vehicle that is assembled from a kit. |
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SECTION 4. Section 501.0721, Transportation Code, is |
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amended to read as follows: |
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Sec. 501.0721. DELIVERY OF RECEIPT AND TITLE TO PURCHASER |
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OF USED MOTOR VEHICLE OR ASSEMBLED VEHICLE. A person, whether |
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acting for that person or another, who sells, trades, or otherwise |
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transfers a used motor vehicle or an assembled vehicle shall |
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deliver to the purchaser at the time of delivery of the vehicle a |
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properly assigned title or other evidence of title as required |
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under this chapter. |
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SECTION 5. Section 501.145(a), Transportation Code, is |
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amended to read as follows: |
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(a) Not later than the later of the 30th day after the date |
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of assignment on the documents or the date provided by Section |
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152.069, Tax Code, the purchaser of the used motor vehicle or |
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assembled vehicle shall file with the county assessor-collector: |
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(1) the certificate of title or other evidence of |
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title; or |
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(2) if appropriate, a document described by Section |
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502.457 and the title or other evidence of ownership. |
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SECTION 6. Subchapter A, Chapter 503, Transportation Code, |
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is amended by adding Section 503.013 to read as follows: |
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Sec. 503.013. DEALER TRANSFER OF CERTAIN ASSEMBLED VEHICLES |
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PROHIBITED. (a) In this section: |
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(1) "Assembled vehicle" has the meaning assigned by |
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Section 731.001. |
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(2) "Replica" means an assembled vehicle that uses a |
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manufactured prefabricated body or a body constructed from |
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materials not original to the vehicle and that resembles an |
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established make of a previous year vehicle model. The term may |
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include a custom vehicle or street rod, as those terms are defined |
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by Section 504.501. |
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(b) Ownership of an assembled vehicle, other than a replica, |
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may not be transferred to or by a dealer under this chapter. |
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SECTION 7. Subchapter C, Chapter 547, Transportation Code, |
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is amended by adding Section 547.209 to read as follows: |
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Sec. 547.209. NONAPPLICABILITY OF SUBCHAPTER TO ASSEMBLED |
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VEHICLES. This subchapter does not apply to an item of vehicle |
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equipment intended for an assembled vehicle, as defined by Section |
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731.001. |
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SECTION 8. Subchapter A, Chapter 548, Transportation Code, |
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is amended by adding Section 548.009 to read as follows: |
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Sec. 548.009. ASSEMBLED VEHICLES. (a) In this section, |
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"assembled vehicle" has the meaning assigned by Section 731.001. |
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(b) A provision of this chapter does not apply to an |
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assembled vehicle if the provision: |
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(1) conflicts with Chapter 731 or a rule adopted under |
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that chapter; or |
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(2) is a provision that an assembled vehicle, by its |
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nature, cannot comply with or otherwise meet. |
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SECTION 9. As soon as practicable after the effective date |
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of this Act, the board of the Texas Department of Motor Vehicles |
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shall: |
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(1) adopt the rules required by Chapter 731, |
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Transportation Code, as added by this Act; and |
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(2) adopt or modify any rules necessary to implement |
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the changes in law made by this Act. |
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SECTION 10. This Act takes effect September 1, 2019. |