BILL ANALYSIS

Senate Research Center	H.B. 3861
88R12028 MZM-D	By: Goldman (King)
	Transportation
	5/18/2023
	Engrossed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

Under current law, tax assessor-collectors are required to provide an online database and system, webDEALER, for automobile dealerships to use; however, dealers are not required to participate in this system.

The webDEALER system is used to manage buyers tags and to process title applications. The system is designed to make processing dealer tags and titles fast and easy for dealerships throughout the state. Additionally, the system makes tag information easily available to law enforcement and supervising agencies. By processing applications digitally, tax assessor-collectors are able to process a greater amount per day and per employee. Additionally, webDEALER already has an inventory management system for dealers who are deputized by the tax assessor-collectors to distribute permanent metal licenses plates. Using this system allows for easy audits and tracking of inventory and helps law enforcement by providing for a coordinated and complete database of plate numbers, associated titles, and locations.����������

Although tax assessor-collectors are required to offer the system, dealers are not required to use it, and as a result, dealers must go to the tax assessor-collector's office, wait in line, and complete paperwork. This creates gridlock in the office, at the dealership, and for the buyer by delaying the title application. H.B. 3861 seeks to address this issue by requiring motor vehicle dealers to use the webDEALER system. �����

H.B. 3861 amends the Transportation Code to require a motor vehicle dealer to use the electronic system designed by the Texas Department of Motor Vehicles and made available by a county assessor-collector to submit a title and registration application online in the name of the purchaser of a motor vehicle.

H.B. 3861 amends current law relating to the titling and registration of motor vehicles by motor vehicle dealers.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 520, Transportation Code, by adding Section 520.0055, as follows:

Sec. 520.0055.  DUTIES OF MOTOR VEHICLE DEALERS. Requires a motor vehicle dealer to use the electronic system designed by the Texas Department of Motor Vehicles and made available by a county assessor-collector under Section 520.005 (Duty and Responsibilities of County Assessor-Collector) to submit a title and registration application in the name of the purchaser of a motor vehicle.

SECTION 2. Effective date: September 1, 2023.