BILL ANALYSIS

Senate Research Center	S.B. 1182
88R4685 CXP-F	By: Eckhardt
	Transportation
	3/20/2023
	As Filed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

Currently, there are more than 22 million registered vehicles in Texas. Every year this number rises dramatically as more and more people, and therefore vehicles, come to Texas. As a result, a significant portion of the Texas Transportation Code is dedicated to the titling of vehicles, registration of vehicles, and the issuance of license plates. Furthermore, the state collects more than $4.5 billion in registration fees, title fees, and motor vehicle sales tax. The majority of these fees are deposited into the State Highway Fund, a fund dedicated for building, maintaining, and preserving the life blood of Texas's economy. That is, the state's highways, roads, and bridges.

Although the State of Texas has a robust and comprehensive Transportation Code, like every other statutory code it is by no means perfect. There is always work that can be done to improve the code and, thereby, better serve the citizens of this state. In fact, interested parties have held that the current Transportation Code contains a number of irregularities, contradictions, and outdated provisions that need to be revised. For instance: (1) a number of state agencies have changed their names but the Code was never updated to reflect these changes; (2) there are a number of specialty license plates that, when established, were meant to be exempt from a plate fee but the exempting language was unclear or a conflict in law was not properly addressed; and (3) the license plate display requirements for temporary permits and certain vehicles are unclear.

S.B. 1182 seeks to address these issues by clarifying these contradictions and ambiguities. The bill is meant to simply conform the Transportation Code to the Texas Department of Motor Vehicles' existing titling, registration, and licensing practices. In so doing, the bill will ensure that the Transportation Code's expectations and requirements are clearly defined and easily followed.

As proposed, S.B. 1182 amends current law relating to motor vehicle registration and license plates.

RULEMAKING AUTHORITY

Rulemaking authority previously granted to the board of the Texas Department of Motor Vehicles is modified in SECTION 22 (Section 504.851, Transportation Code) of this bill.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends the heading to Section 502.094, Transportation Code, to read as follows:

Sec. 502.094. 72- or 144-HOUR TEMPORARY REGISTRATION PERMITS.

SECTION 2. Amends Section 502.094, Transportation Code, by amending Subsections (a), (b), (c), (e), (f), (g), and (h) and adding Subsection (i), as follows:

(a) Authorizes the Texas Department of Motor Vehicles (TxDMV) to issue a temporary registration permit, rather than a temporary registration permit in lieu of registration, for a commercial motor vehicle, trailer, semitrailer, or motor bus that meets certain criteria.

(b) Provides that a temporary registration permit issued under this section 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.

(1) makes no changes to this subdivision;

(2) paying a fee of $25 for a 72-hour temporary registration permit or $50 for a 144-hour temporary registration permit in the manner prescribed by TxDMV; and

(3)-(4) makes no changes to these subdivisions.

(e) Provides that a vehicle issued a temporary registration permit under this section is subject to Subchapters B (Vehicles and Equipment Subject to Inspection and Reinspection) and F (Motor Vehicle Emissions Inspection and Maintenance), Chapter 548, unless the vehicle meets certain criteria.

(f) Provides that a commercial motor vehicle, trailer, semitrailer, or motor bus apprehended for violating a registration law of this state:

(1) is prohibited from being issued a temporary registration permit under this section; and

(2) makes no changes to this subdivision.

(g) Provides that a person who operates a commercial motor vehicle, trailer, or semitrailer with an expired temporary registration permit issued under this section is considered to be operating an unregistered vehicle subject to each penalty prescribed by law.

(h) Authorizes TxDMV to establish one or more escrow accounts in the TxDMV fund for the prepayment of a 72-hour or 144-hour temporary registration permit.

(i) Requires that a temporary registration permit issued under this section be carried in the vehicle, or, if the vehicle is a trailer or semitrailer, in the motor vehicle pulling the trailer or semitrailer, at all times during the period in which the permit is valid, including when the vehicle is being operated.

SECTION 3. Amends the heading to Section 502.095, Transportation Code, to read as follows:

Sec. 502.095. ONE-TRIP OR 30-DAY TEMPORARY REGISTRATION PERMITS.

SECTION 4. Amends Section 502.095, Transportation Code, by amending Subsections (a), (b), (d), (e), (f), and (g) and adding Subsection (h), as follows:

(a) Authorizes TxDMV to issue a temporary registration permit, rather than a temporary permit in lieu of registration, for a vehicle subject to registration in this state that is not authorized to travel on a public highway because of the lack of registration in this state or lack of reciprocity with the state or country in which the vehicle is registered.

(b) Provides that a temporary registration permit issued under this section is valid for certain periods of time.

(d) Authorizes a 30-day temporary registration permit to 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 light commercial vehicle with a gross vehicle weight of more than 10,000 pounds that will operate unladen. Authorizes a person to obtain multiple 30-day temporary registration permits.

(e) Provides that a vehicle issued a 30-day temporary registration permit under this section is subject to Subchapters B and F, Chapter 548.

(f) Authorizes a person to obtain a temporary registration permit under this section by taking certain actions.

(g) Requires that the temporary registration permit, rather than temporary tag, contain all pertinent information required by this section and requires that it be attached to the vehicle in the license plate display area located at the rear of the vehicle, so that the entire permit is visible and legible at all times, including when the vehicle is being operated. Requires that the temporary registration permit be attached to, rather than attached on or carried in, the vehicle to allow for ready inspection if the vehicle does not have a license plate display area at the rear of the vehicle. Requires that the registration receipt be carried, in a manner prescribed by TxDMV, in the vehicle at all times during the period in which it is valid. Deletes existing text requiring that the temporary tag be displayed in the rear window of the vehicle so that the tag is clearly visible and eligible when viewed from the rear of the vehicle. Deletes existing text requiring that the temporary tag be attached on or carried in the vehicle if the vehicle does not have a rear window.

(h) Authorizes TxDMV to refuse and to instruct a county assessor-collector to refuse to issue a temporary registration permit for any vehicle if, in TxDMV'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.

SECTION 5. Amends Section 502.146(a), Transportation Code, as follows:

(a) Authorizes TxDMV to issue distinguishing license plates to a vehicle with a gross weight of 4,000 pounds or less if the vehicle otherwise meets the requirements of Section (b)(1) (relating to certain conditions under which an owner is not required to register a vehicle that is only used temporarily on the highways if the vehicle is a farm trailer or farm semitrailer).

SECTION 6. Amends Subchapter D, Chapter 502, Transportation Code, by adding Section 502.147, as follows:

Sec. 502.147. CERTAIN FARM TRAILERS, FARM SEMITRAILERS, FARM TRACTORS, AND IMPLEMENTS OF HUSBANDRY. Provides that an owner is not required to register a farm trailer or farm semitrailer with a gross weight of 4,000 pounds or less or a farm tractor or an implement of husbandry if the trailer, semitrailer, tractor, or implement is operated only temporarily on the highways.

SECTION 7. Amends Section 502.410(b), Transportation Code, by deleting existing text providing that Subsection (a) does not apply to a statement or application filed or given under Section 504.515 (Honorary Consuls).�

SECTION 8. Amends Sections 502.413(e) and (f), Transportation Code, as follows:

(e) Requires TxDMV to consult with the Health and Human Services Commission (HHSC), rather than the Department of Aging and Disability Services (DADS), in performing TxDMV's duties under Section 502.413 (Voluntary Contribution to Special Olympics Fund).

(f) Provides that the Special Olympics Texas fund is created as a trust fund outside the state treasury to be held by the Comptroller of Public Accounts of the State of Texas (comptroller) and administered by HHSC, rather than DADS, as a trustee on behalf of Special Olympics Texas.

SECTION 9. Amends Section 502.474, Transportation Code, as follows:

Sec. 502.474. OPERATION OF ONE-TRIP PERMIT VEHICLE. Provides that 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 permit, rather than temporary tag.

SECTION 10. Amends Section 504.202(e-1), Transportation Code, as follows:

(e-1) Authorizes license plates issued under Section 504.202 (Veterans with Disabilities) to include, other than license plates issued under Subsection (h) (relating to authorizing a person entitled to license plates under this section to elect to receive license plates issued under Chapter 502 (Specialty License Plates for the Military) under the same conditions for the issuance of license plates under this section), on request, one emblem or design from another license plate to which a person is entitled under Subchapter D (Vehicles Not Issued Registration), rather than under certain sections. Deletes existing text authorizing license plates issued under this section to include, on request, the emblem of the veteran's branch of service.

SECTION 11. Amends Section 504.3015(a), Transportation Code, as follows:

(a) Requires a person applying for a set of license plates under this subchapter to pay the registration fee required under Chapter 502 and the applicable special plate fee required under Section 504.3015 (Fees for Military Specialty License Plates), except that one set of license plates is required to be issued without payment of the registration fee under certain sections, including Section 504.316 (Legion of Merit Medal Recipients)

SECTION 12. Amends Section 504.414(b), Transportation Code, to provide that the fee for a set of license plates under Section 504.414 (Professional Firefighter Plates) is $30, notwithstanding Section 504.400 (Fees for Certain Restricted Plates).

SECTION 13. Amends Section 504.507(b), Transportation Code, as follows:

(b) Requires TxDMV to:

(1) collect any fee that a county imposes under Chapter 502, rather than Chapter 504 (License Plates), for registration of a forestry vehicle; and

(2) makes no changes to this subdivision.

SECTION 14. Amends Section 504.512, Transportation Code, by adding Subsection (b), to provide that there is no fee for issuance of the license plates.

SECTION 15. Amends Section 504.513, Transportation Code, by amending Subsection (a) and adding Subsection (c), as follows:

(a) Requires TxDMV to issue specialty license plates for:

(1) volunteer firefighters certified by:

(A) makes no changes to this paragraph;

(B) the State Firefighters' and Fire Marshals' Association of Texas, rather than the State Firemen's and Fire Marshals' Association of Texas; and

(2) makes no changes to this subdivision.

SECTION 16. Amends Section 504.516, Transportation Code, by adding Subsection (c), to provide that there is no fee for issuance of the license plates.

SECTION 17. Amends Section 504.602(b), Transportation Code, as follows:

(b) Requires that the remainder of the fee for issuance of license plates, after deduction of TxDMV's administrative costs, be used in connection with the Texas Department of Transportation's, rather than TxDMV's, litter prevention and community beautification programs.

SECTION 18. Amends the heading to Section 504.610, Transportation Code, to read as follows:

Sec. 504.610. TEXAS AEROSPACE AND AVIATION LICENSE PLATES.

SECTION 19. Amends Section 504.610(a), Transportation Code, as follows:

(a) Authorizes TxDMV to issue specialty license plates in recognition of Texas aerospace and aviation, rather than the Texas Aerospace Commission. Requires TxDMV to design the license plates in consultation with the aerospace and aviation office of the Texas Economic Development and Tourism Office, rather than with the Texas Aerospace Commission.

SECTION 20. Amends Section 504.619, Transportation Code, as follows:

Sec. 504.619. New heading: DEAF AND HARD OF HEARING SERVICES LICENSE PLATES. (a) Requires TxDMV to issue license plates in support of services for persons who are deaf and hard of hearing, rather than in support of the Texas Commission for the Deaf and Hard of Hearing (TCDHH). Requires TxDMV to design the license plates in consultation with HHSC, rather than with TCDHH.

(b) Provides that the remainder of the fee for issuance of the license plates, after deduction of TxDMV's administrative costs:

(1) makes no changes to this subdivision; and

(2) is authorized to be appropriated only to HHSC, rather than to TCDHH, for direct services programs, training, and education for persons who are deaf and hard of hearing.

SECTION 21. Amends Section 504.642(b), Transportation Code, as follows:

(b) Requires that the remainder of the fee for issuance of license plates, after deduction of TxDMV's administrative costs, be deposited to the credit of an account created by the comptroller in the manner provided by Section 504.6012(b) (relating to requiring certain fees to be paid into trust funds instead of dedicated accounts). Authorizes money deposited to that account to be used only by the Department of Family and Protective Services, rather than by the Department of Protective and Regulatory Services (DPRS) to fund programs and services supporting abused and neglected children under Section 264.004 (Allocation of State Funds), Family Code. Deletes existing text requiring the remainder of the fee to be deposited to the credit of a special account for abused and neglected children established at DPRS.

SECTION 22. Amends Section 504.851(c), Transportation Code, as follows:

(c) Requires the board of TxDMV by rule to 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, except as otherwise provided by law.

SECTION 23. Amends Section 504.943(b), Transportation Code, as follows:

(b) Provides that a person commits an offense if the person operates on a public highway during a registration period a road tractor, truck tractor, motorcycle, trailer, or semitrailer that does not display a license plate that meet certain requirements.

SECTION 24. Repealer: Section 504.515 (Honorary Consuls), Transportation Code.

SECTION 25. Makes application of Section 504.943, Transportation Code, as amended by this Act prospective.

SECTION 26. Provides that to the extent of any conflict, this Act prevails over another Act of the 88th Legislature, Regular Session, 2023, relating to nonsubstantive additions to and corrections in enacted codes.

SECTION 27. Effective date: September 1, 2023.

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