Texas 2009 - 81st Regular

Texas House Bill HB3088 Compare Versions

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1	1	81R4307 JAM-F
2	2	By: Veasey H.B. No. 3088
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. The heading to Section 503.062, Transportation
66	66	Code, is amended to read as follows:
67	67	Sec. 503.062. DEALER'S TEMPORARY [CARDBOARD] TAGS.
68	68	SECTION 4. Sections 503.062(a), (b), and (d),
69	69	Transportation Code, are amended to read as follows:
70	70	(a) A dealer may issue a temporary [cardboard] tag for use
71	71	on an unregistered vehicle by the dealer or the dealer's employees
72	72	only to:
73	73	(1) demonstrate or cause to be demonstrated to a
74	74	prospective buyer the vehicle for sale purposes only;
75	75	(2) convey or cause to be conveyed the vehicle:
76	76	(A) from one of the dealer's places of business
77	77	in this state to another of the dealer's places of business in this
78	78	state;
79	79	(B) from the dealer's place of business to a
80	80	place the vehicle is to be repaired, reconditioned, or serviced;
81	81	(C) from the state line or a location in this
82	82	state where the vehicle is unloaded to the dealer's place of
83	83	business;
84	84	(D) from the dealer's place of business to a
85	85	place of business of another dealer;
86	86	(E) from the point of purchase by the dealer to
87	87	the dealer's place of business; or
88	88	(F) to road test the vehicle; or
89	89	(3) use the vehicle for or allow its use by a
90	90	charitable organization.
91	91	(b) Subsection (a)(1) does not prohibit a dealer from
92	92	permitting:
93	93	(1) a prospective buyer to operate a vehicle while the
94	94	vehicle is being demonstrated; or
95	95	(2) a customer to operate a vehicle temporarily while
96	96	the customer's vehicle is being repaired.
97	97	(d) The department may not issue a dealer temporary
98	98	[cardboard] tag or contract for the issuance of a dealer temporary
99	99	[cardboard] tag but shall prescribe:
100	100	(1) the specifications, form, and color of a dealer
101	101	temporary [cardboard] tag;
102	102	(2) procedures for a dealer to generate a
103	103	vehicle-specific number using the database developed under Section
104	104	503.0626 and assign it to each tag;
105	105	(3) procedures to clearly display the
106	106	vehicle-specific number on the tag; and
107	107	(4) the period for which a tag may be used for or by a
108	108	charitable organization.
109	109	SECTION 5. The heading to Section 503.0625, Transportation
110	110	Code, is amended to read as follows:
111	111	Sec. 503.0625. CONVERTER'S TEMPORARY [CARDBOARD] TAGS.
112	112	SECTION 6. Sections 503.0625(b), (e), and (f),
113	113	Transportation Code, are amended to read as follows:
114	114	(b) A converter may issue a temporary [cardboard] tag for
115	115	use on an unregistered vehicle by the converter or the converter's
116	116	employees only to:
117	117	(1) demonstrate or cause to be demonstrated to a
118	118	prospective buyer who is an employee of a franchised motor vehicle
119	119	dealer the vehicle; or
120	120	(2) convey or cause to be conveyed the vehicle:
121	121	(A) from one of the converter's places of
122	122	business in this state to another of the converter's places of
123	123	business in this state;
124	124	(B) from the converter's place of business to a
125	125	place the vehicle is to be assembled, repaired, reconditioned,
126	126	modified, or serviced;
127	127	(C) from the state line or a location in this
128	128	state where the vehicle is unloaded to the converter's place of
129	129	business;
130	130	(D) from the converter's place of business to a
131	131	place of business of a franchised motor vehicle dealer; or
132	132	(E) to road test the vehicle.
133	133	(e) The department may not issue a converter temporary
134	134	[cardboard] tag or contract for the issuance of a converter
135	135	temporary [cardboard] tag but shall prescribe:
136	136	(1) the specifications, form, and color of a converter
137	137	temporary [cardboard] tag;
138	138	(2) procedures for a converter to generate a
139	139	vehicle-specific number using the database developed under Section
140	140	503.0626 and assign it to each tag; and
141	141	(3) procedures to clearly display the
142	142	vehicle-specific number on the tag.
143	143	(f) A converter or employee of a converter may not use a
144	144	temporary [cardboard] tag issued under this section as
145	145	authorization to operate a vehicle for the converter's or the
146	146	employee's personal use.
147	147	SECTION 7. Sections 503.0626(a) and (c), Transportation
148	148	Code, are amended to read as follows:
149	149	(a) The department shall develop and maintain a secure,
150	150	real-time database of information on vehicles to which dealers and
151	151	converters have affixed temporary [cardboard] tags. The database
152	152	shall be managed by the vehicle titles and registration division of
153	153	the department.
154	154	(c) Before a dealer's or converter's temporary [cardboard]
155	155	tag may be displayed on a vehicle, the dealer or converter must
156	156	enter into the database through the Internet information on the
157	157	vehicle and information about the dealer or converter as prescribed
158	158	by the department. The department may not deny access to the
159	159	database to any dealer who holds a general distinguishing number
160	160	issued under this chapter or who is licensed under Chapter 2301,
161	161	Occupations Code, or to any converter licensed under Chapter 2301,
162	162	Occupations Code.
163	163	SECTION 8. The heading to Section 503.063, Transportation
164	164	Code, is amended to read as follows:
165	165	Sec. 503.063. BUYER'S TEMPORARY [CARDBOARD] TAGS.
166	166	SECTION 9. Sections 503.063(a), (b), (g), and (h),
167	167	Transportation Code, are amended to read as follows:
168	168	(a) Except as provided by this section, a dealer shall issue
169	169	to a person who buys an unregistered vehicle one temporary
170	170	[cardboard] buyer's tag for the vehicle.
171	171	(b) Except as provided by this section, the buyer's tag is
172	172	valid for the operation of the vehicle until the earlier of:
173	173	(1) the date on which the vehicle is registered; or
174	174	(2) the 60th [21st] day after the date of purchase.
175	175	(g) [Using the same vehicle-specific number generated under
176	176	Subsection (e)(2)(A), a dealer may issue an additional temporary
177	177	cardboard buyer's tag to a person after the expiration of 20 working
178	178	days after the issue of a temporary cardboard buyer's tag, and the
179	179	person may operate the vehicle for which the tag was issued on the
180	180	additional temporary cardboard buyer's tag if the dealer has been
181	181	unable to obtain on behalf of the vehicle's owner the necessary
182	182	documents to obtain permanent metal license plates because the
183	183	documents are in the possession of a lienholder who has not complied
184	184	with the terms of Section 501.115(a). An additional tag issued
185	185	under the terms of this subsection is valid for a maximum of 20
186	186	working days after the date of issue.
187	187	[(h)] For each buyer's temporary [cardboard] tag [other
188	188	than an additional temporary cardboard buyer's tag under Subsection
189	189	(g)], a dealer shall charge the buyer a registration fee of not more
190	190	than $5 as prescribed by the department to be sent to the
191	191	comptroller for deposit to the credit of the state highway fund.
192	192	SECTION 10. Section 503.0631(c), Transportation Code, is
193	193	amended to read as follows:
194	194	(c) Except as provided by Subsection (d), before a buyer's
195	195	temporary [cardboard] tag may be displayed on a vehicle, a dealer
196	196	must enter into the database through the Internet information about
197	197	the buyer of the vehicle for which the tag was issued as prescribed
198	198	by the department and generate a vehicle-specific number for the
199	199	tag as required by Section 503.063(e). The department may not deny
200	200	access to the database to any dealer who holds a general
201	201	distinguishing number issued under this chapter or who is licensed
202	202	under Chapter 2301, Occupations Code.
203	203	SECTION 11. Section 503.065(a), Transportation Code, is
204	204	amended to read as follows:
205	205	(a) The department may issue or cause to be issued to a
206	206	person a temporary license plate [made of cardboard or similar
207	207	material] authorizing the person to operate a new unregistered
208	208	vehicle on a public highway of this state if the person:
209	209	(1) buys the vehicle from a dealer outside this state
210	210	and intends to drive the vehicle from the dealer's place of
211	211	business; or
212	212	(2) buys the vehicle from a dealer in this state but
213	213	intends to drive the vehicle from the manufacturer's place of
214	214	business outside this state.
215	215	SECTION 12. Section 503.067, Transportation Code, is
216	216	amended to read as follows:
217	217	Sec. 503.067. UNAUTHORIZED REPRODUCTION, PURCHASE, USE, OR
218	218	SALE OF TEMPORARY [CARDBOARD] TAGS. (a) A person may not produce
219	219	or reproduce a temporary [cardboard] tag or an item represented to
220	220	be a temporary [cardboard] tag for the purpose of distributing the
221	221	tag to someone other than a dealer or converter.
222	222	(b) A person may not operate a vehicle that displays an
223	223	unauthorized temporary [cardboard] tag.
224	224	(c) A person other than a dealer or converter may not
225	225	purchase a temporary [cardboard] tag.
226	226	(d) A person may not sell or distribute a temporary
227	227	[cardboard] tag or an item represented to be a temporary
228	228	[cardboard] tag unless the person is:
229	229	(1) a dealer issuing the tag in connection with the
230	230	sale of a vehicle; or
231	231	(2) a printer or distributor engaged in the business
232	232	of selling temporary [cardboard] tags solely for uses authorized
233	233	under this chapter.
234	234	SECTION 13. Sections 503.068(a), (b), and (c),
235	235	Transportation Code, are amended to read as follows:
236	236	(a) A dealer or an employee of a dealer may not use a
237	237	dealer's temporary [cardboard] tag as authorization to operate a
238	238	vehicle for the dealer's or the employee's personal use.
239	239	(b) A person may not use a metal dealer's license plate or
240	240	dealer's temporary [cardboard] tag on:
241	241	(1) a service or work vehicle; or
242	242	(2) a commercial vehicle that is carrying a load.
243	243	(c) For purposes of this section, a boat trailer carrying a
244	244	boat is not a commercial vehicle carrying a load. A dealer
245	245	complying with this chapter may affix to the rear of a boat trailer
246	246	the dealer owns or sells a metal dealer's license plate or temporary
247	247	[cardboard] tag issued under Section 503.061, 503.062, or 503.063.
248	248	SECTION 14. Section 503.069(a), Transportation Code, is
249	249	amended to read as follows:
250	250	(a) A license plate, other than an in-transit license plate,
251	251	or a temporary [cardboard] tag issued under this chapter shall be
252	252	displayed in accordance with commission [board] rules.
253	253	SECTION 15. Section 601.002(12), Transportation Code, is
254	254	amended to read as follows:
255	255	(12) "Vehicle registration" means:
256	256	(A) a registration certificate, registration
257	257	receipt, or number plate issued under Chapter 502; or
258	258	(B) a dealer's license plate or temporary
259	259	[cardboard] tag issued under Chapter 503.
260	260	SECTION 16. Section 503.0632, Transportation Code, is
261	261	repealed.
262	262	SECTION 17. The changes in law made by this Act to Section
263	263	503.067, Transportation Code, apply to an offense committed on or
264	264	after the effective date of this Act. An offense committed before
265	265	the effective date of this Act is governed by the law in effect when
266	266	the offense was committed, and the former law is continued in effect
267	267	for that purpose. For purposes of this section, an offense was
268	268	committed before the effective date of this Act if any element of
269	269	the offense was committed before that date.
270	270	SECTION 18. This Act takes effect September 1, 2009.