Texas 2009 - 81st Regular

Texas House Bill HB1251 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	81R5985 JAM-F
2	2	By: Corte H.B. No. 1251
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the issuance and use of temporary tags on vehicles.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Section 501.022(d), Transportation Code, is
10	10	amended to read as follows:
11	11	(d) Subsection (c) does not apply to a motor vehicle
12	12	operated on a public highway in this state with a metal dealer's
13	13	license plate or a dealer's or buyer's temporary [cardboard] tag
14	14	attached to the vehicle as provided by Chapter 503.
15	15	SECTION 2. Sections 503.038(a) and (c), Transportation
16	16	Code, are amended to read as follows:
17	17	(a) The department may cancel a dealer's general
18	18	distinguishing number if the dealer:
19	19	(1) falsifies or forges a title document, including an
20	20	affidavit making application for a certified copy of a title;
21	21	(2) files a false or forged tax document, including a
22	22	sales tax affidavit;
23	23	(3) fails to take assignment of any basic evidence of
24	24	ownership, including a certificate of title or manufacturer's
25	25	certificate, for a vehicle the dealer acquires;
26	26	(4) fails to assign any basic evidence of ownership,
27	27	including a certificate of title or manufacturer's certificate, for
28	28	a vehicle the dealer sells;
29	29	(5) uses or permits the use of a metal dealer's license
30	30	plate or a dealer's temporary [cardboard] tag on a vehicle that the
31	31	dealer does not own or control or that is not in stock and offered
32	32	for sale;
33	33	(6) makes a material misrepresentation in an
34	34	application or other information filed with the department;
35	35	(7) fails to maintain the qualifications for a general
36	36	distinguishing number;
37	37	(8) fails to provide to the department within 30 days
38	38	after the date of demand by the department satisfactory and
39	39	reasonable evidence that the person is regularly and actively
40	40	engaged in business as a wholesale or retail dealer;
41	41	(9) has been licensed for at least 12 months and has
42	42	not assigned at least five vehicles during the previous 12-month
43	43	period;
44	44	(10) has failed to demonstrate compliance with
45	45	Sections 23.12, 23.121, and 23.122, Tax Code;
46	46	(11) uses or allows the use of the dealer's general
47	47	distinguishing number or the location for which the general
48	48	distinguishing number is issued to avoid the requirements of this
49	49	chapter;
50	50	(12) misuses or allows the misuse of a temporary
51	51	[cardboard] tag authorized under this chapter;
52	52	(13) refuses to show on a buyer's temporary
53	53	[cardboard] tag the date of sale or other reasonable information
54	54	required by the department; or
55	55	(14) otherwise violates this chapter or a rule adopted
56	56	under this chapter.
57	57	(c) A person whose general distinguishing number is
58	58	canceled under this chapter shall surrender to a representative of
59	59	the department each license, license plate, temporary [cardboard]
60	60	tag, sticker, and receipt issued under this chapter not later than
61	61	the 10th day after the date the general distinguishing number is
62	62	canceled. The department shall direct any peace officer to secure
63	63	and return to the department any plate, tag, sticker, or receipt of
64	64	a person who does not comply with this subsection.
65	65	SECTION 3. Subchapter C, Chapter 503, Tansportation Code,
66	66	is amended by adding Section 503.0619 to read as follows:
67	67	Sec. 503.0619. TEMPORARY TAGS; MATERIALS. (a) A temporary
68	68	tag issued under this chapter must be made of a non-permeable
69	69	material that, in all weather conditions:
70	70	(1) resists deterioration and fading for the period
71	71	that the tag is displayed on the vehicle; and
72	72	(2) maintains structural integrity, including graphic
73	73	and data adhesion, for the period that the tag is displayed on the
74	74	vehicle.
75	75	(b) Temporary tag materials that satisfy the requirements
76	76	of Subsection (a) include:
77	77	(1) plastic or other weather-resistant materials;
78	78	(2) label stock that is wrapped around a
79	79	weather-resistant cardboard base that is at least 0.024 inches
80	80	thick; or
81	81	(3) non-weather-resistant cardstock or cardboard that
82	82	is at least 0.024 inches thick and is sealed in a two-millimeter
83	83	polyethylene bag.
84	84	SECTION 4. The heading to Section 503.062, Transportation
85	85	Code, is amended to read as follows:
86	86	Sec. 503.062. DEALER'S TEMPORARY [CARDBOARD] TAGS.
87	87	SECTION 5. Sections 503.062(a) and (d), Transportation
88	88	Code, are amended to read as follows:
89	89	(a) A dealer may issue a temporary [cardboard] tag for use
90	90	on an unregistered vehicle by the dealer or the dealer's employees
91	91	only to:
92	92	(1) demonstrate or cause to be demonstrated to a
93	93	prospective buyer the vehicle for sale purposes only;
94	94	(2) convey or cause to be conveyed the vehicle:
95	95	(A) from one of the dealer's places of business
96	96	in this state to another of the dealer's places of business in this
97	97	state;
98	98	(B) from the dealer's place of business to a
99	99	place the vehicle is to be repaired, reconditioned, or serviced;
100	100	(C) from the state line or a location in this
101	101	state where the vehicle is unloaded to the dealer's place of
102	102	business;
103	103	(D) from the dealer's place of business to a
104	104	place of business of another dealer;
105	105	(E) from the point of purchase by the dealer to
106	106	the dealer's place of business; or
107	107	(F) to road test the vehicle; or
108	108	(3) use the vehicle for or allow its use by a
109	109	charitable organization.
110	110	(d) The department may not issue a dealer temporary
111	111	[cardboard] tag or contract for the issuance of a dealer temporary
112	112	[cardboard] tag but shall prescribe:
113	113	(1) the specifications, form, and color of a dealer
114	114	temporary [cardboard] tag;
115	115	(2) procedures for a dealer to generate a
116	116	vehicle-specific number using the database developed under Section
117	117	503.0626 and assign it to each tag;
118	118	(3) procedures to clearly display the
119	119	vehicle-specific number on the tag; and
120	120	(4) the period for which a tag may be used for or by a
121	121	charitable organization.
122	122	SECTION 6. The heading to Section 503.0625, Transportation
123	123	Code, is amended to read as follows:
124	124	Sec. 503.0625. CONVERTER'S TEMPORARY [CARDBOARD] TAGS.
125	125	SECTION 7. Sections 503.0625(b), (e), and (f),
126	126	Transportation Code, are amended to read as follows:
127	127	(b) A converter may issue a temporary [cardboard] tag for
128	128	use on an unregistered vehicle by the converter or the converter's
129	129	employees only to:
130	130	(1) demonstrate or cause to be demonstrated to a
131	131	prospective buyer who is an employee of a franchised motor vehicle
132	132	dealer the vehicle; or
133	133	(2) convey or cause to be conveyed the vehicle:
134	134	(A) from one of the converter's places of
135	135	business in this state to another of the converter's places of
136	136	business in this state;
137	137	(B) from the converter's place of business to a
138	138	place the vehicle is to be assembled, repaired, reconditioned,
139	139	modified, or serviced;
140	140	(C) from the state line or a location in this
141	141	state where the vehicle is unloaded to the converter's place of
142	142	business;
143	143	(D) from the converter's place of business to a
144	144	place of business of a franchised motor vehicle dealer; or
145	145	(E) to road test the vehicle.
146	146	(e) The department may not issue a converter temporary
147	147	[cardboard] tag or contract for the issuance of a converter
148	148	temporary [cardboard] tag but shall prescribe:
149	149	(1) the specifications, form, and color of a converter
150	150	temporary [cardboard] tag;
151	151	(2) procedures for a converter to generate a
152	152	vehicle-specific number using the database developed under Section
153	153	503.0626 and assign it to each tag; and
154	154	(3) procedures to clearly display the
155	155	vehicle-specific number on the tag.
156	156	(f) A converter or employee of a converter may not use a
157	157	temporary [cardboard] tag issued under this section as
158	158	authorization to operate a vehicle for the converter's or the
159	159	employee's personal use.
160	160	SECTION 8. Sections 503.0626(a) and (c), Transportation
161	161	Code, are amended to read as follows:
162	162	(a) The department shall develop and maintain a secure,
163	163	real-time database of information on vehicles to which dealers and
164	164	converters have affixed temporary [cardboard] tags. The database
165	165	shall be managed by the vehicle titles and registration division of
166	166	the department.
167	167	(c) Before a dealer's or converter's temporary [cardboard]
168	168	tag may be displayed on a vehicle, the dealer or converter must
169	169	enter into the database through the Internet information on the
170	170	vehicle and information about the dealer or converter as prescribed
171	171	by the department. The department may not deny access to the
172	172	database to any dealer who holds a general distinguishing number
173	173	issued under this chapter or who is licensed under Chapter 2301,
174	174	Occupations Code, or to any converter licensed under Chapter 2301,
175	175	Occupations Code.
176	176	SECTION 9. The heading to Section 503.063, Transportation
177	177	Code, is amended to read as follows:
178	178	Sec. 503.063. BUYER'S TEMPORARY [CARDBOARD] TAGS.
179	179	SECTION 10. Sections 503.063(a), (g), and (h),
180	180	Transportation Code, are amended to read as follows:
181	181	(a) Except as provided by this section, a dealer shall issue
182	182	to a person who buys an unregistered vehicle one temporary
183	183	[cardboard] buyer's tag for the vehicle.
184	184	(g) Using the same vehicle-specific number generated under
185	185	Subsection (e)(2)(A), a dealer may issue an additional temporary
186	186	[cardboard] buyer's tag to a person after the expiration of 20
187	187	working days after the issue of a temporary [cardboard] buyer's
188	188	tag, and the person may operate the vehicle for which the tag was
189	189	issued on the additional temporary [cardboard] buyer's tag if the
190	190	dealer has been unable to obtain on behalf of the vehicle's owner
191	191	the necessary documents to obtain permanent metal license plates
192	192	because the documents are in the possession of a lienholder who has
193	193	not complied with the terms of Section 501.115(a). An additional
194	194	tag issued under the terms of this subsection is valid for a maximum
195	195	of 20 working days after the date of issue.
196	196	(h) For each buyer's temporary [cardboard] tag other than an
197	197	additional temporary [cardboard] buyer's tag under Subsection (g),
198	198	a dealer shall charge the buyer a registration fee of not more than
199	199	$5 as prescribed by the department to be sent to the comptroller for
200	200	deposit to the credit of the state highway fund.
201	201	SECTION 11. Section 503.0631(c), Transportation Code, is
202	202	amended to read as follows:
203	203	(c) Except as provided by Subsection (d), before a buyer's
204	204	temporary [cardboard] tag may be displayed on a vehicle, a dealer
205	205	must enter into the database through the Internet information about
206	206	the buyer of the vehicle for which the tag was issued as prescribed
207	207	by the department and generate a vehicle-specific number for the
208	208	tag as required by Section 503.063(e). The department may not deny
209	209	access to the database to any dealer who holds a general
210	210	distinguishing number issued under this chapter or who is licensed
211	211	under Chapter 2301, Occupations Code.
212	212	SECTION 12. Section 503.0632(a), Transportation Code, is
213	213	amended to read as follows:
214	214	(a) Each dealer shall provide a one-page written notice to a
215	215	buyer that explains:
216	216	(1) the requirements of the law regarding a buyer's
217	217	temporary [cardboard] tag;
218	218	(2) any criminal penalties relating to a buyer's
219	219	temporary [cardboard] tag;
220	220	(3) any action the buyer is required to take
221	221	concerning a buyer's temporary [cardboard] tag; and
222	222	(4) any other information related to the process of
223	223	purchasing and registering a vehicle as prescribed by the
224	224	department.
225	225	SECTION 13. Section 503.065(a), Transportation Code, is
226	226	amended to read as follows:
227	227	(a) The department may issue or cause to be issued to a
228	228	person a temporary license plate [made of cardboard or similar
229	229	material] authorizing the person to operate a new unregistered
230	230	vehicle on a public highway of this state if the person:
231	231	(1) buys the vehicle from a dealer outside this state
232	232	and intends to drive the vehicle from the dealer's place of
233	233	business; or
234	234	(2) buys the vehicle from a dealer in this state but
235	235	intends to drive the vehicle from the manufacturer's place of
236	236	business outside this state.
237	237	SECTION 14. Section 503.067, Transportation Code, is
238	238	amended to read as follows:
239	239	Sec. 503.067. UNAUTHORIZED REPRODUCTION, PURCHASE, USE, OR
240	240	SALE OF TEMPORARY [CARDBOARD] TAGS. (a) A person may not produce
241	241	or reproduce a temporary [cardboard] tag or an item represented to
242	242	be a temporary [cardboard] tag for the purpose of distributing the
243	243	tag to someone other than a dealer or converter.
244	244	(b) A person may not operate a vehicle that displays an
245	245	unauthorized temporary [cardboard] tag.
246	246	(c) A person other than a dealer or converter may not
247	247	purchase a temporary [cardboard] tag.
248	248	(d) A person may not sell or distribute a temporary
249	249	[cardboard] tag or an item represented to be a temporary
250	250	[cardboard] tag unless the person is:
251	251	(1) a dealer issuing the tag in connection with the
252	252	sale of a vehicle; or
253	253	(2) a printer or distributor engaged in the business
254	254	of selling temporary [cardboard] tags solely for uses authorized
255	255	under this chapter.
256	256	SECTION 15. Sections 503.068(a), (b), and (c),
257	257	Transportation Code, are amended to read as follows:
258	258	(a) A dealer or an employee of a dealer may not use a
259	259	dealer's temporary [cardboard] tag as authorization to operate a
260	260	vehicle for the dealer's or the employee's personal use.
261	261	(b) A person may not use a metal dealer's license plate or
262	262	dealer's temporary [cardboard] tag on:
263	263	(1) a service or work vehicle; or
264	264	(2) a commercial vehicle that is carrying a load.
265	265	(c) For purposes of this section, a boat trailer carrying a
266	266	boat is not a commercial vehicle carrying a load. A dealer
267	267	complying with this chapter may affix to the rear of a boat trailer
268	268	the dealer owns or sells a metal dealer's license plate or temporary
269	269	[cardboard] tag issued under Section 503.061, 503.062, or 503.063.
270	270	SECTION 16. Section 503.069(a), Transportation Code, is
271	271	amended to read as follows:
272	272	(a) A license plate, other than an in-transit license plate,
273	273	or a temporary [cardboard] tag issued under this chapter shall be
274	274	displayed in accordance with commission [board] rules.
275	275	SECTION 17. Section 601.002(12), Transportation Code, is
276	276	amended to read as follows:
277	277	(12) "Vehicle registration" means:
278	278	(A) a registration certificate, registration
279	279	receipt, or number plate issued under Chapter 502; or
280	280	(B) a dealer's license plate or temporary
281	281	[cardboard] tag issued under Chapter 503.
282	282	SECTION 18. The changes in law made by this Act to Section
283	283	503.067, Transportation Code, apply to an offense committed on or
284	284	after the effective date of this Act. An offense committed before
285	285	the effective date of this Act is governed by the law in effect when
286	286	the offense was committed, and the former law is continued in effect
287	287	for that purpose. For purposes of this section, an offense was
288	288	committed before the effective date of this Act if any element of
289	289	the offense was committed before that date.
290	290	SECTION 19. This Act takes effect September 1, 2009.