81R5985 JAM-F
By: Corte H.B. No. 1251
A BILL TO BE ENTITLED
AN ACT
relating to the issuance and use of temporary tags on vehicles.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 501.022(d), Transportation Code, is
amended to read as follows:
(d) Subsection (c) does not apply to a motor vehicle
operated on a public highway in this state with a metal dealer's
license plate or a dealer's or buyer's temporary [cardboard] tag
attached to the vehicle as provided by Chapter 503.
SECTION 2. Sections 503.038(a) and (c), Transportation
Code, are amended to read as follows:
(a) The department may cancel a dealer's general
distinguishing number if the dealer:
(1) falsifies or forges a title document, including an
affidavit making application for a certified copy of a title;
(2) files a false or forged tax document, including a
sales tax affidavit;
(3) fails to take assignment of any basic evidence of
ownership, including a certificate of title or manufacturer's
certificate, for a vehicle the dealer acquires;
(4) fails to assign any basic evidence of ownership,
including a certificate of title or manufacturer's certificate, for
a vehicle the dealer sells;
(5) uses or permits the use of a metal dealer's license
plate or a dealer's temporary [cardboard] tag on a vehicle that the
dealer does not own or control or that is not in stock and offered
for sale;
(6) makes a material misrepresentation in an
application or other information filed with the department;
(7) fails to maintain the qualifications for a general
distinguishing number;
(8) fails to provide to the department within 30 days
after the date of demand by the department satisfactory and
reasonable evidence that the person is regularly and actively
engaged in business as a wholesale or retail dealer;
(9) has been licensed for at least 12 months and has
not assigned at least five vehicles during the previous 12-month
period;
(10) has failed to demonstrate compliance with
Sections 23.12, 23.121, and 23.122, Tax Code;
(11) uses or allows the use of the dealer's general
distinguishing number or the location for which the general
distinguishing number is issued to avoid the requirements of this
chapter;
(12) misuses or allows the misuse of a temporary
[cardboard] tag authorized under this chapter;
(13) refuses to show on a buyer's temporary
[cardboard] tag the date of sale or other reasonable information
required by the department; or
(14) otherwise violates this chapter or a rule adopted
under this chapter.
(c) A person whose general distinguishing number is
canceled under this chapter shall surrender to a representative of
the department each license, license plate, temporary [cardboard]
tag, sticker, and receipt issued under this chapter not later than
the 10th day after the date the general distinguishing number is
canceled. The department shall direct any peace officer to secure
and return to the department any plate, tag, sticker, or receipt of
a person who does not comply with this subsection.
SECTION 3. Subchapter C, Chapter 503, Tansportation Code,
is amended by adding Section 503.0619 to read as follows:
Sec. 503.0619. TEMPORARY TAGS; MATERIALS. (a) A temporary
tag issued under this chapter must be made of a non-permeable
material that, in all weather conditions:
(1) resists deterioration and fading for the period
that the tag is displayed on the vehicle; and
(2) maintains structural integrity, including graphic
and data adhesion, for the period that the tag is displayed on the
vehicle.
(b) Temporary tag materials that satisfy the requirements
of Subsection (a) include:
(1) plastic or other weather-resistant materials;
(2) label stock that is wrapped around a
weather-resistant cardboard base that is at least 0.024 inches
thick; or
(3) non-weather-resistant cardstock or cardboard that
is at least 0.024 inches thick and is sealed in a two-millimeter
polyethylene bag.
SECTION 4. The heading to Section 503.062, Transportation
Code, is amended to read as follows:
Sec. 503.062. DEALER'S TEMPORARY [CARDBOARD] TAGS.
SECTION 5. Sections 503.062(a) and (d), Transportation
Code, are amended to read as follows:
(a) A dealer may issue a temporary [cardboard] tag for use
on an unregistered vehicle by the dealer or the dealer's employees
only to:
(1) demonstrate or cause to be demonstrated to a
prospective buyer the vehicle for sale purposes only;
(2) convey or cause to be conveyed the vehicle:
(A) from one of the dealer's places of business
in this state to another of the dealer's places of business in this
state;
(B) from the dealer's place of business to a
place the vehicle is to be repaired, reconditioned, or serviced;
(C) from the state line or a location in this
state where the vehicle is unloaded to the dealer's place of
business;
(D) from the dealer's place of business to a
place of business of another dealer;
(E) from the point of purchase by the dealer to
the dealer's place of business; or
(F) to road test the vehicle; or
(3) use the vehicle for or allow its use by a
charitable organization.
(d) The department may not issue a dealer temporary
[cardboard] tag or contract for the issuance of a dealer temporary
[cardboard] tag but shall prescribe:
(1) the specifications, form, and color of a dealer
temporary [cardboard] tag;
(2) procedures for a dealer to generate a
vehicle-specific number using the database developed under Section
503.0626 and assign it to each tag;
(3) procedures to clearly display the
vehicle-specific number on the tag; and
(4) the period for which a tag may be used for or by a
charitable organization.
SECTION 6. The heading to Section 503.0625, Transportation
Code, is amended to read as follows:
Sec. 503.0625. CONVERTER'S TEMPORARY [CARDBOARD] TAGS.
SECTION 7. Sections 503.0625(b), (e), and (f),
Transportation Code, are amended to read as follows:
(b) A converter may issue a temporary [cardboard] tag for
use on an unregistered vehicle by the converter or the converter's
employees only to:
(1) demonstrate or cause to be demonstrated to a
prospective buyer who is an employee of a franchised motor vehicle
dealer the vehicle; or
(2) convey or cause to be conveyed the vehicle:
(A) from one of the converter's places of
business in this state to another of the converter's places of
business in this state;
(B) from the converter's place of business to a
place the vehicle is to be assembled, repaired, reconditioned,
modified, or serviced;
(C) from the state line or a location in this
state where the vehicle is unloaded to the converter's place of
business;
(D) from the converter's place of business to a
place of business of a franchised motor vehicle dealer; or
(E) to road test the vehicle.
(e) The department may not issue a converter temporary
[cardboard] tag or contract for the issuance of a converter
temporary [cardboard] tag but shall prescribe:
(1) the specifications, form, and color of a converter
temporary [cardboard] tag;
(2) procedures for a converter to generate a
vehicle-specific number using the database developed under Section
503.0626 and assign it to each tag; and
(3) procedures to clearly display the
vehicle-specific number on the tag.
(f) A converter or employee of a converter may not use a
temporary [cardboard] tag issued under this section as
authorization to operate a vehicle for the converter's or the
employee's personal use.
SECTION 8. Sections 503.0626(a) and (c), Transportation
Code, are amended to read as follows:
(a) The department shall develop and maintain a secure,
real-time database of information on vehicles to which dealers and
converters have affixed temporary [cardboard] tags. The database
shall be managed by the vehicle titles and registration division of
the department.
(c) Before a dealer's or converter's temporary [cardboard]
tag may be displayed on a vehicle, the dealer or converter must
enter into the database through the Internet information on the
vehicle and information about the dealer or converter as prescribed
by the department. The department may not deny access to the
database to any dealer who holds a general distinguishing number
issued under this chapter or who is licensed under Chapter 2301,
Occupations Code, or to any converter licensed under Chapter 2301,
Occupations Code.
SECTION 9. The heading to Section 503.063, Transportation
Code, is amended to read as follows:
Sec. 503.063. BUYER'S TEMPORARY [CARDBOARD] TAGS.
SECTION 10. Sections 503.063(a), (g), and (h),
Transportation Code, are amended to read as follows:
(a) Except as provided by this section, a dealer shall issue
to a person who buys an unregistered vehicle one temporary
[cardboard] buyer's tag for the vehicle.
(g) Using the same vehicle-specific number generated under
Subsection (e)(2)(A), a dealer may issue an additional temporary
[cardboard] buyer's tag to a person after the expiration of 20
working days after the issue of a temporary [cardboard] buyer's
tag, and the person may operate the vehicle for which the tag was
issued on the additional temporary [cardboard] buyer's tag if the
dealer has been unable to obtain on behalf of the vehicle's owner
the necessary documents to obtain permanent metal license plates
because the documents are in the possession of a lienholder who has
not complied with the terms of Section 501.115(a). An additional
tag issued under the terms of this subsection is valid for a maximum
of 20 working days after the date of issue.
(h) For each buyer's temporary [cardboard] tag other than an
additional temporary [cardboard] buyer's tag under Subsection (g),
a dealer shall charge the buyer a registration fee of not more than
$5 as prescribed by the department to be sent to the comptroller for
deposit to the credit of the state highway fund.
SECTION 11. Section 503.0631(c), Transportation Code, is
amended to read as follows:
(c) Except as provided by Subsection (d), before a buyer's
temporary [cardboard] tag may be displayed on a vehicle, a dealer
must enter into the database through the Internet information about
the buyer of the vehicle for which the tag was issued as prescribed
by the department and generate a vehicle-specific number for the
tag as required by Section 503.063(e). The department may not deny
access to the database to any dealer who holds a general
distinguishing number issued under this chapter or who is licensed
under Chapter 2301, Occupations Code.
SECTION 12. Section 503.0632(a), Transportation Code, is
amended to read as follows:
(a) Each dealer shall provide a one-page written notice to a
buyer that explains:
(1) the requirements of the law regarding a buyer's
temporary [cardboard] tag;
(2) any criminal penalties relating to a buyer's
temporary [cardboard] tag;
(3) any action the buyer is required to take
concerning a buyer's temporary [cardboard] tag; and
(4) any other information related to the process of
purchasing and registering a vehicle as prescribed by the
department.
SECTION 13. Section 503.065(a), Transportation Code, is
amended to read as follows:
(a) The department may issue or cause to be issued to a
person a temporary license plate [made of cardboard or similar
material] authorizing the person to operate a new unregistered
vehicle on a public highway of this state if the person:
(1) buys the vehicle from a dealer outside this state
and intends to drive the vehicle from the dealer's place of
business; or
(2) buys the vehicle from a dealer in this state but
intends to drive the vehicle from the manufacturer's place of
business outside this state.
SECTION 14. Section 503.067, Transportation Code, is
amended to read as follows:
Sec. 503.067. UNAUTHORIZED REPRODUCTION, PURCHASE, USE, OR
SALE OF TEMPORARY [CARDBOARD] TAGS. (a) A person may not produce
or reproduce a temporary [cardboard] tag or an item represented to
be a temporary [cardboard] tag for the purpose of distributing the
tag to someone other than a dealer or converter.
(b) A person may not operate a vehicle that displays an
unauthorized temporary [cardboard] tag.
(c) A person other than a dealer or converter may not
purchase a temporary [cardboard] tag.
(d) A person may not sell or distribute a temporary
[cardboard] tag or an item represented to be a temporary
[cardboard] tag unless the person is:
(1) a dealer issuing the tag in connection with the
sale of a vehicle; or
(2) a printer or distributor engaged in the business
of selling temporary [cardboard] tags solely for uses authorized
under this chapter.
SECTION 15. Sections 503.068(a), (b), and (c),
Transportation Code, are amended to read as follows:
(a) A dealer or an employee of a dealer may not use a
dealer's temporary [cardboard] tag as authorization to operate a
vehicle for the dealer's or the employee's personal use.
(b) A person may not use a metal dealer's license plate or
dealer's temporary [cardboard] tag on:
(1) a service or work vehicle; or
(2) a commercial vehicle that is carrying a load.
(c) For purposes of this section, a boat trailer carrying a
boat is not a commercial vehicle carrying a load. A dealer
complying with this chapter may affix to the rear of a boat trailer
the dealer owns or sells a metal dealer's license plate or temporary
[cardboard] tag issued under Section 503.061, 503.062, or 503.063.
SECTION 16. Section 503.069(a), Transportation Code, is
amended to read as follows:
(a) A license plate, other than an in-transit license plate,
or a temporary [cardboard] tag issued under this chapter shall be
displayed in accordance with commission [board] rules.
SECTION 17. Section 601.002(12), Transportation Code, is
amended to read as follows:
(12) "Vehicle registration" means:
(A) a registration certificate, registration
receipt, or number plate issued under Chapter 502; or
(B) a dealer's license plate or temporary
[cardboard] tag issued under Chapter 503.
SECTION 18. The changes in law made by this Act to Section
503.067, Transportation Code, apply to an offense committed on or
after the effective date of this Act. An offense committed before
the effective date of this Act is governed by the law in effect when
the offense was committed, and the former law is continued in effect
for that purpose. For purposes of this section, an offense was
committed before the effective date of this Act if any element of
the offense was committed before that date.
SECTION 19. This Act takes effect September 1, 2009.