Texas 2011 82nd Regular

Texas House Bill HB2357 Senate Committee Report / Bill

Filed 02/01/2025

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                    By: Pickett (Senate Sponsor - Williams) H.B. No. 2357
 (In the Senate - Received from the House May 16, 2011;
 May 16, 2011, read first time and referred to Committee on
 Transportation and Homeland Security; May 20, 2011, reported
 adversely, with favorable Committee Substitute by the following
 vote:  Yeas 9, Nays 0; May 20, 2011, sent to printer.)
 COMMITTEE SUBSTITUTE FOR H.B. No. 2357 By:  Hinojosa


 A BILL TO BE ENTITLED
 AN ACT
 relating to motor vehicles; providing penalties.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 SECTION 1.  Section 501.002, Transportation Code, is amended
 to read as follows:
 Sec. 501.002.  DEFINITIONS. In this chapter:
 (1)  "Certificate of title" means a printed record of
 title [an instrument] issued under Section 501.021.
 (2)  "Credit card" means a card, plate, or similar
 device used to make a purchase or to borrow money.
 (3)  "Dealer" has the meaning assigned by Section
 503.001 [means a person who purchases motor vehicles for sale at
 retail].
 (4)  "Debit card" means a card that enables the holder
 to withdraw money or to have the cost of a purchase charged directly
 to the holder's bank account.
 (5) [(3)]  "Department" means the Texas Department of
 Motor Vehicles.
 (6) [(4)]  "Distributor" has the meaning assigned by
 Section 2301.002, Occupations Code [means a person engaged in the
 business of selling to a dealer motor vehicles purchased from a
 manufacturer].
 (7)  "Electric bicycle" has the meaning assigned by
 Section 541.201.
 (8) [(5)]  "First sale" means:
 (A)  the bargain, sale, transfer, or delivery of a
 motor vehicle that has not been previously registered or titled
 [licensed], with intent to pass an interest in the motor vehicle,
 other than a lien, regardless of where the bargain, sale, transfer,
 or delivery occurred; and
 (B)  the registration or titling [licensing] of
 that vehicle.
 (9) [(6)]  "House trailer" means a trailer designed for
 human habitation. The term does not include manufactured housing.
 (10) [(7)]  "Importer" means a person, other than a
 manufacturer, that brings a used motor vehicle into this state for
 sale in this state.
 (11) [(8)]  "Importer's certificate" means a
 certificate for a used motor vehicle brought into this state for
 sale in this state.
 (12) [(9)]  "Lien" means:
 (A)  a lien provided for by the constitution or
 statute in a motor vehicle;
 (B)  a security interest, as defined by Section
 1.201, Business & Commerce Code, in a motor vehicle, other than an
 absolute title, created by any written security agreement, as
 defined by Section 9.102, Business & Commerce Code, including a
 lease, conditional sales contract, deed of trust, chattel mortgage,
 trust receipt, or reservation of title; or
 (C)  a child support lien under Chapter 157,
 Family Code.
 (13) [(10)]  "Manufactured housing" has the meaning
 assigned by Chapter 1201, Occupations Code.
 (14) [(11)]  "Manufacturer" has the meaning assigned
 by Section 503.001 [means a person regularly engaged in the
 business of manufacturing or assembling new motor vehicles].
 (15) [(12)]  "Manufacturer's permanent vehicle
 identification number" means the number affixed by the manufacturer
 to a motor vehicle in a manner and place easily accessible for
 physical examination and die-stamped or otherwise permanently
 affixed on one or more removable parts of the vehicle.
 (16) [(13)]  "Motorcycle" has the meaning assigned by
 Section 521.001 or 541.201, as applicable [means a motor vehicle,
 other than a tractor, designed to propel itself with not more than
 three wheels in contact with the ground].
 (17) [(14)]  "Motor vehicle" means:
 (A)  any motor driven or propelled vehicle
 required to be registered under the laws of this state;
 (B)  a trailer or semitrailer, other than
 manufactured housing, that has a gross vehicle weight that exceeds
 4,000 pounds;
 (C)  a travel [house] trailer;
 (D)  an all-terrain vehicle or a recreational
 off-highway vehicle, as those terms are defined by Section 502.001,
 designed by the manufacturer for off-highway use that is not
 required to be registered under the laws of this state; or
 (E)  a motorcycle, motor-driven cycle, or moped
 that is not required to be registered under the laws of this state[,
 other than a motorcycle, motor-driven cycle, or moped designed for
 and used exclusively on a golf course].
 (18) [(15)]  "New motor vehicle" has the meaning
 assigned by Section 2301.002, Occupations Code [means a motor
 vehicle that has not been the subject of a first sale].
 (19) [(16)]  "Owner" means [includes] a person, other
 than a manufacturer, importer, distributor, or dealer, claiming
 title to or having a right to operate under a lien a motor vehicle
 that has been subject to a first sale.
 (20)  "Purchaser" means a person or entity to which a
 motor vehicle is donated, given, sold, or otherwise transferred.
 (21)  "Record of title" means an electronic record of
 motor vehicle ownership in the department's motor vehicle database
 that is created under Subchapter I.
 (22)  "Seller" means a person or entity that donates,
 gives, sells, or otherwise transfers ownership of a motor vehicle.
 (23) [(17)]  "Semitrailer" means a vehicle that is
 designed or used with a motor vehicle so that part of the weight of
 the vehicle and its load rests on or is carried by another vehicle.
 (24) [(18)]  "Serial number" means a vehicle
 identification number that is affixed to a part of a motor vehicle
 and that is:
 (A)  the manufacturer's permanent vehicle
 identification number;
 (B)  a derivative number of the manufacturer's
 permanent vehicle identification number;
 (C)  the motor number; or
 (D)  the vehicle identification number assigned
 by the department.
 (25) [(19)]  "Steal" has the meaning assigned by
 Section 31.01, Penal Code.
 (26) [(20)]  "Subsequent sale" means:
 (A)  the bargain, sale, transfer, or delivery of a
 used motor vehicle [that has been previously registered or licensed
 in this state or elsewhere], with intent to pass an interest in the
 vehicle, other than a lien[, regardless of where the bargain, sale,
 transfer, or delivery occurs]; and
 (B)  the registration of the vehicle if
 registration is required under the laws of this state.
 (27)  "Title" means a certificate or record of title
 that is issued under Section 501.021.
 (28) [(21)]  "Title receipt" means a document [an
 instrument] issued under Section 501.024.
 (29) [(22)]  "Trailer" means a vehicle that:
 (A)  is designed or used to carry a load wholly on
 the trailer's own structure; and
 (B)  is drawn or designed to be drawn by a motor
 vehicle.
 (30)  "Travel trailer" means a house trailer-type
 vehicle or a camper trailer:
 (A)  that is a recreational vehicle defined under
 24 C.F.R. Section 3282.8(g); or
 (B)  that:
 (i)  is less than eight feet in width or 40
 feet in length, exclusive of any hitch installed on the vehicle;
 (ii)  is designed primarily for use as
 temporary living quarters in connection with recreational,
 camping, travel, or seasonal use;
 (iii)  is not used as a permanent dwelling;
 and
 (iv)  is not a utility trailer, enclosed
 trailer, or other trailer that does not have human habitation as its
 primary function.
 (31) [(23)]  "Used motor vehicle" means a motor vehicle
 that has been the subject of a first sale.
 (32)  "Vehicle identification number" means:
 (A)  the manufacturer's permanent vehicle
 identification number affixed by the manufacturer to the motor
 vehicle that is easily accessible for physical examination and
 permanently affixed on one or more removable parts of the vehicle;
 or
 (B)  a serial number affixed to a part of a motor
 vehicle that is:
 (i)  a derivative number of the
 manufacturer's permanent vehicle identification number;
 (ii)  the motor number; or
 (iii)  a vehicle identification number
 assigned by the department.
 SECTION 2.  The heading to Section 501.003, Transportation
 Code, is amended to read as follows:
 Sec. 501.003.  PURPOSE [CONSTRUCTION].
 SECTION 3.  Section 501.004(a), Transportation Code, is
 amended to read as follows:
 (a)  Except as provided by this section, this [This] chapter
 applies to all motor vehicles, including a motor vehicle owned by
 the state or a political subdivision of the state.
 SECTION 4.  Section 501.131, Transportation Code, is
 transferred to Subchapter A, Chapter 501, Transportation Code,
 redesignated as Section 501.0041, Transportation Code, and amended
 to read as follows:
 Sec. 501.0041  [501.131].  RULES; FORMS. (a)  The
 department may adopt rules to administer this chapter.
 (b)  The department shall post forms on the Internet and[:
 [(1)     in addition to the forms required by this
 chapter, prescribe forms for a title receipt, manufacturer's
 certificate, and importer's certificate, and other forms the
 department determines necessary; and
 [(2)]  provide each county assessor-collector with a
 sufficient supply of any necessary [the] forms on request.
 SECTION 5.  Section 501.159, Transportation Code, is
 transferred to Subchapter A, Chapter 501, Transportation Code,
 redesignated as Section 501.006, Transportation Code, and amended
 to read as follows:
 Sec. 501.006  [501.159].  ALIAS [CERTIFICATE OF] TITLE. On
 receipt of a verified [written] request approved by the executive
 administrator of a law enforcement agency, the department may issue
 a [certificate of] title in the form requested by the executive
 administrator for a vehicle in an alias for the law enforcement
 agency's use in a covert criminal investigation.
 SECTION 6.  Section 501.021, Transportation Code, is amended
 to read as follows:
 Sec. 501.021.  [CERTIFICATE OF] TITLE FOR MOTOR VEHICLE.
 (a)  A motor vehicle [certificate of] title [is an instrument]
 issued by the department must include [that includes]:
 (1)  the name and address of each [the] purchaser and
 seller at the first sale or [the transferee and transferor at] a
 subsequent sale;
 (2)  the make of the motor vehicle;
 (3)  the body type of the vehicle;
 (4)  the manufacturer's permanent vehicle
 identification number of the vehicle or the vehicle's motor number
 if the vehicle was manufactured before the date that stamping a
 permanent identification number on a motor vehicle was universally
 adopted;
 (5)  the serial number for the vehicle;
 (6)  the [number on the vehicle's current Texas license
 plates, if any;
 [(7)  a statement:
 [(A)  that no lien on the vehicle is recorded; or
 [(B)  of the] name and address of each lienholder
 and the date of each lien on the vehicle, listed in the
 chronological order in which the lien was recorded;
 (7)  [(8)     a space for the signature of the owner of the
 vehicle;
 [(9)]  a statement indicating rights of survivorship
 under Section 501.031;
 (8) [(10)]  if the vehicle has an odometer, the
 odometer reading at the time of [indicated by the] application for
 the [certificate of] title; and
 (9) [(11)]  any other information required by the
 department.
 (b)  A printed certificate of title must bear the following
 statement on its face:
 "UNLESS OTHERWISE AUTHORIZED BY LAW, IT IS A VIOLATION OF
 STATE LAW TO SIGN THE NAME OF ANOTHER PERSON ON A CERTIFICATE OF
 TITLE OR OTHERWISE GIVE FALSE INFORMATION ON A CERTIFICATE OF
 TITLE."
 (c)  A [certificate of] title for a motor vehicle that has
 been the subject of an ordered repurchase or replacement under
 Chapter 2301, Occupations Code, must contain on its face a notice
 sufficient to inform a purchaser that the motor vehicle has been the
 subject of an ordered repurchase or replacement.
 SECTION 7.  The heading to Section 501.022, Transportation
 Code, is amended to read as follows:
 Sec. 501.022.  MOTOR VEHICLE [CERTIFICATE OF] TITLE
 REQUIRED.
 SECTION 8.  Sections 501.022(a), (b), and (c),
 Transportation Code, are amended to read as follows:
 (a)  The owner of a motor vehicle registered in this state:
 (1)  except as provided by Section 501.029, shall apply
 for title to the vehicle; and
 (2)  may not operate or permit the operation of the
 vehicle on a public highway until the owner obtains:
 (A)  [a certificate of] title and [for the vehicle
 or until the owner obtains] registration for the vehicle; or
 (B)  [if] a receipt evidencing title for
 registration purposes only [to the vehicle is issued] under Section
 501.029 [501.029(b)].
 (b)  A person may not operate a motor vehicle registered in
 this state on a public highway if the person knows or has reason to
 believe that the owner has not obtained a [certificate of] title for
 the vehicle.
 (c)  The owner of a motor vehicle that is required to be
 titled and registered in this state must obtain [apply for] a
 [certificate of] title to [of] the vehicle before selling or
 disposing of the vehicle.
 SECTION 9.  The heading to Section 501.023, Transportation
 Code, is amended to read as follows:
 Sec. 501.023.  APPLICATION FOR [CERTIFICATE OF] TITLE.
 SECTION 10.  Section 501.023, Transportation Code, is
 amended by amending Subsections (a), (b), and (c) and adding
 Subsection (e) to read as follows:
 (a)  The owner of a motor vehicle must present identification
 and apply for a [certificate of] title as prescribed by the
 department, unless otherwise exempted by law. To obtain a title,
 the owner must apply:
 (1)  to the county assessor-collector in the county in
 which:
 (A)  the owner is domiciled; or
 (B)  the motor vehicle is purchased or encumbered;
 or [and]
 (2)  if the county in which the owner resides has been
 declared by the governor as a disaster area, to the county
 assessor-collector in one of the closest unaffected counties to a
 county that asks for assistance and:
 (A)  continues to be declared by the governor as a
 disaster area because the county has been rendered inoperable by
 the disaster; and
 (B)  is inoperable for a protracted period of time
 [on a form prescribed by the department].
 (b)  The assessor-collector shall send the application to
 the department or enter it into the department's titling system
 within 72 [not later than 24] hours after receipt of [receiving] the
 application.
 (c)  The owner or a lessee of a commercial motor vehicle
 operating under the International Registration Plan or other
 agreement described by Section 502.091 [502.054] that is applying
 for a [certificate of] title for purposes of registration only may
 apply [must be made] directly to the department. Notwithstanding
 Section 501.138(a), an applicant for registration under this
 subsection shall pay [the department] the fee imposed by that
 section. The [department shall send the] fee shall be distributed
 to the appropriate county assessor-collector [for distribution] in
 the manner provided by Section 501.138.
 (e)  Applications submitted to the department electronically
 must request the purchaser's choice of county as stated in
 Subsection (a) as the recipient of all taxes, fees, and other
 revenue collected as a result of the transaction.
 SECTION 11.  Sections 501.0234(a), (b), (d), and (e),
 Transportation Code, are amended to read as follows:
 (a)  A person who sells at the first or a subsequent sale a
 motor vehicle and who holds a general distinguishing number issued
 under Chapter 503 of this code or Chapter 2301, Occupations Code,
 shall:
 (1)  except as provided by this section, in the time and
 manner provided by law, apply, in the name of the purchaser of the
 vehicle, for the registration of the vehicle, if the vehicle is to
 be registered, and a [certificate of] title for the vehicle and file
 with the appropriate designated agent each document necessary to
 transfer title to or register the vehicle; and at the same time
 (2)  remit any required motor vehicle sales tax.
 (b)  This section does not apply to a motor vehicle:
 (1)  that has been declared a total loss by an insurance
 company in the settlement or adjustment of a claim;
 (2)  for which the [certificate of] title has been
 surrendered in exchange for:
 (A)  a salvage vehicle title or salvage record of
 title issued under this chapter;
 (B)  a nonrepairable vehicle title or
 nonrepairable vehicle record of title issued under this chapter or
 Subchapter D, Chapter 683; or
 (C)  [a certificate of authority issued under
 Subchapter D, Chapter 683; or
 [(D)]  an ownership document issued by another
 state that is comparable to a document described by Paragraph (A) or
 (B) [Paragraphs (A)-(C)];
 (3)  with a gross weight in excess of 11,000 pounds; or
 (4)  purchased by a commercial fleet buyer who is a
 full-service deputy under Section 520.008 [502.114] and who
 utilizes the dealer title application process developed to provide
 a method to submit title transactions to the county in which the
 commercial fleet buyer is a full-service deputy.
 (d)  A seller who applies for the registration or a
 [certificate of] title for a motor vehicle under Subsection (a)(1)
 shall apply in the county as directed by the purchaser from the
 counties set forth in Section 501.023 [of this code].
 (e)  The department shall develop [promulgate] a form or
 electronic process in [on] which the purchaser of a motor vehicle
 shall designate the purchaser's choice as set out in Section
 501.023 as the recipient of all taxes, fees, and other revenue
 collected as a result of the transaction, which the tax
 assessor-collector is authorized by law to retain.  A seller shall
 make that form or electronic process available to the purchaser of a
 vehicle at the time of purchase.
 SECTION 12.  Subchapter B, Chapter 501, Transportation Code,
 is amended by adding Section 501.0235 to read as follows:
 Sec. 501.0235.  PERSONAL IDENTIFICATION INFORMATION FOR
 OBTAINING TITLE. (a) The department may require an applicant for a
 title to provide current personal identification as determined by
 department rule.
 (b)  Any identification number required by the department
 under this section may be entered in the department's electronic
 titling system but may not be printed on the title.
 SECTION 13.  Section 501.024, Transportation Code, is
 amended to read as follows:
 Sec. 501.024.  TITLE RECEIPT. (a)  A county
 assessor-collector who receives an application for a [certificate
 of] title shall issue a title receipt to the applicant containing
 the information concerning the motor vehicle required for issuance
 of a title under Section 501.021 or Subchapter I [,] after:
 (1)  the requirements of this chapter are met,
 including the payment of the fees required under Section 501.138;
 and
 (2)  the [, issue a title receipt on which is noted]
 information is entered into the department's titling system
 [concerning the motor vehicle required for the certificate of title
 under Section 501.021, including a statement of the existence of
 each lien as disclosed on the application or a statement that no
 lien is disclosed].
 (b)  If a lien is not disclosed on the application for a
 [certificate of] title, the assessor-collector shall issue a [mark
 the] title receipt ["original" and deliver it] to the applicant.
 (c)  If a lien is disclosed on the application for a
 [certificate of] title, the assessor-collector shall issue a
 duplicate title receipt to the lienholder [receipts. The
 assessor-collector shall:
 [(1)     mark one receipt "original" and mail or deliver
 it to the first lienholder disclosed on the application; and
 [(2)     mark the second receipt "duplicate original" and
 mail or deliver it to the address of the applicant provided on the
 application].
 (d)  A title receipt with registration or permit authorizes
 the operation of the motor vehicle on a public highway in this state
 for 10 days or until the [certificate of] title is issued, whichever
 period is shorter.
 SECTION 14.  Section 501.025, Transportation Code, is
 amended to read as follows:
 Sec. 501.025.  [TITLE RECEIPT REQUIRED ON FIRST SALE;]
 MANUFACTURER'S CERTIFICATE REQUIRED ON FIRST SALE. A county
 assessor-collector may not issue a title receipt on the first sale
 of a motor vehicle unless the applicant for the [certificate of]
 title provides [to the assessor-collector] the application for a
 [certificate of] title and a manufacturer's certificate in [, on] a
 manner [form] prescribed by the department [, that:
 [(1)     is assigned to the applicant by the manufacturer,
 distributor, or dealer shown on the manufacturer's certificate as
 the last transferee; and
 [(2)     shows the transfer of the vehicle from its
 manufacturer to the purchaser, whether a distributor, dealer, or
 owner, and each subsequent transfer from distributor to dealer,
 dealer to dealer, and dealer to applicant].
 SECTION 15.  Section 501.027, Transportation Code, is
 amended to read as follows:
 Sec. 501.027.  ISSUANCE OF [CERTIFICATE OF] TITLE. (a)  On
 the day that a county assessor-collector issues a title receipt, a
 copy of the title receipt and all evidence of title [the
 assessor-collector] shall be submitted [mail] to the department in
 the period specified in Section 501.023(b) [:
 [(1)  a copy of the receipt; and
 [(2)     the evidence of title delivered to the
 assessor-collector by the applicant].
 (b)  Not later than the fifth day after the date the
 department receives an application for a [certificate of] title and
 the department determines the requirements of this chapter are met:
 (1)  the [, the department shall issue the certificate
 of] title shall be issued to the first lienholder or to the
 applicant if [. If] a lien is not disclosed on the application; or
 (2)  [,] the department shall notify [send the
 certificate by first class mail to] the applicant that the
 department's titling system has established a record of title of
 the motor vehicle in the applicant's name if a lien is not disclosed
 [at the address provided on the application]. If a lien is
 disclosed on the application, the department shall notify [send]
 the [certificate by first class mail to the first] lienholder that
 the lien has been recorded [as disclosed on the application].
 SECTION 16.  Section 501.0275, Transportation Code, is
 amended to read as follows:
 Sec. 501.0275.  ISSUANCE OF TITLE FOR UNREGISTERED VEHICLE.
 (a)  The department shall issue a [certificate of] title for a
 motor vehicle that complies with the other requirements [for
 issuance of a certificate of title] under this chapter unless
 [except that]:
 (1)  the vehicle is not registered for a reason other
 than a reason provided by Section 501.051(a)(6) [501.051(6)]; and
 (2)  the applicant does not provide evidence of
 financial responsibility that complies with Section 502.046
 [502.153].
 (b)  On application for a [certificate of] title under this
 section, the applicant must surrender any license plates issued for
 the motor vehicle if the plates are not being transferred to another
 vehicle and any registration insignia for validation of those
 plates to the department.
 SECTION 17.  Section 501.0276, Transportation Code, is
 amended to read as follows:
 Sec. 501.0276.  DENIAL OF TITLE RECEIPT, [OR CERTIFICATE OF]
 TITLE, OR RECORD OF TITLE FOR FAILURE TO PROVIDE PROOF OF EMISSIONS
 TESTING. A county assessor-collector may not issue a title receipt
 and the department may not issue a certificate of title for a
 vehicle subject to Section 548.3011 unless proof that the vehicle
 has passed a vehicle emissions test as required by that section, in
 a manner [form] authorized by that section, is presented to the
 county assessor-collector with the application for a [certificate
 of] title.
 SECTION 18.  Section 501.029, Transportation Code, is
 amended to read as follows:
 Sec. 501.029.  ACCEPTABLE PROOF OF OWNERSHIP [USE OF
 REGISTRATION RECEIPT OR TITLE RECEIPT TO EVIDENCE TITLE]. [(a)     A
 person may use a registration receipt issued under Chapter 502 or a
 title receipt to evidence title to a motor vehicle and not to
 transfer an interest in or establish a lien on the vehicle.
 [(b)]  The board [department] by rule may provide a list of
 the documents required for the issuance of a receipt that evidences
 title to a motor vehicle for registration purposes only. The fee
 for application for the receipt is the fee applicable to
 application for a [certificate of] title.  The title receipt may not
 be used to transfer an interest in or establish a lien on the
 vehicle.
 SECTION 19.  Sections 501.030(b), (d), (e), (f), and (g),
 Transportation Code, are amended to read as follows:
 (b)  Before a motor vehicle that was not manufactured for
 sale or distribution in the United States may be titled in this
 state, the applicant must:
 (1)  provide to the assessor-collector:
 (A)  a bond release letter, with all attachments,
 issued by the United States Department of Transportation
 acknowledging:
 (i)  receipt of a statement of compliance
 submitted by the importer of the vehicle; and
 (ii)  that the statement meets the safety
 requirements of 19 C.F.R. Section 12.80(e);
 (B)  a bond release letter, with all attachments,
 issued by the United States Environmental Protection Agency stating
 that the vehicle has been tested and shown to conform to federal
 emission requirements; and
 (C)  a receipt or certificate issued by the United
 States Department of the Treasury showing that all gas guzzler
 taxes due on the vehicle under 26 U.S.C. Section 4064(a) have been
 paid; or
 (2)  provide to the assessor-collector proof,
 satisfactory to the department, [assessor-collector] that the
 vehicle was not brought into the United States from outside [of] the
 country.
 (d)  If a motor vehicle has not been titled or registered in
 the United States, the application for [certificate of] title must
 be accompanied by:
 (1)  a manufacturer's certificate of origin written in
 English issued by the vehicle manufacturer;
 (2)  the original documents that constitute valid proof
 of ownership in the country where the vehicle was originally
 purchased, with an English translation of the documents verified as
 to the accuracy of the translation by an affidavit of the
 translator; or
 (3)  if the vehicle was imported from a country that
 cancels the vehicle registration and title for export, the
 documents assigned to the vehicle after the registration and title
 were canceled, with an English translation of the documents
 verified as to the accuracy of the translation by an affidavit of
 the translator.
 (e)  Before a motor vehicle that is required to be registered
 in this state and that is brought into this state by a person other
 than a manufacturer or importer may be bargained, sold,
 transferred, or delivered with an intent to pass an interest in the
 vehicle or encumbered by a lien, the owner must apply for a
 [certificate of] title in [on] a manner [form] prescribed by the
 department to the county assessor-collector for the county in which
 the transaction is to take place. The assessor-collector may not
 issue a title receipt unless the applicant delivers to the
 assessor-collector satisfactory evidence [of title] showing that
 the applicant is the owner of the vehicle and that the vehicle is
 free of any undisclosed liens.
 (f)  A county assessor-collector may not be held liable for
 civil damages arising out of the assessor-collector's failure to
 reflect on the title receipt a lien or encumbrance on a motor
 vehicle to which Subsection (e) applies unless the
 [assessor-collector's] failure constitutes wilful or wanton
 negligence.
 (g)  Until an applicant has complied with this section:
 (1)  a county assessor-collector may not accept an
 application for [certificate of] title; and
 (2)  the applicant is not entitled to an appeal as
 provided by Sections 501.052 and 501.053.
 SECTION 20.  Section 501.031, Transportation Code, is
 amended to read as follows:
 Sec. 501.031.  RIGHTS OF SURVIVORSHIP AGREEMENT. (a)  The
 department shall include on each [certificate of] title an optional
 [a] rights of survivorship agreement that [form. The form must]:
 (1)  provides [provide] that if the agreement is
 between [signed by] two or more eligible persons, the motor vehicle
 is held jointly by those persons with the interest of a person who
 dies to transfer [survive] to the surviving person or persons; and
 (2)  provides [provide blanks] for the acknowledgment
 by signature, either electronically or by hand, [signatures] of the
 persons.
 (b)  If the vehicle is registered in the name of one or more
 of the persons who acknowledged [signed] the agreement, the
 [certificate of] title may contain a:
 (1)  rights of survivorship agreement acknowledged
 [signed] by all the persons; or
 (2)  remark if a rights of survivorship agreement is
 [surrendered with the application for certificate of title or
 otherwise] on file with the department.
 (c)  Ownership [Except as provided in Subsection (g),
 ownership] of the vehicle may be transferred only:
 (1)  by all the persons acting jointly, if all the
 persons are alive; and
 (2)  on the death of one of the persons by the surviving
 person or persons by transferring ownership of the vehicle [the
 certificate of title], in the manner otherwise required by law [for
 transfer of ownership of the vehicle], with a copy of the death
 certificate of the deceased person [attached to the certificate of
 title application].
 (d)  A rights of survivorship agreement under this section
 may be revoked only if [by surrender of the certificate of title to
 the department and joint application by] the persons named in [who
 signed] the agreement file a joint application for a new title in
 the name of the person or persons designated in the application.
 (e)  A person is eligible to file [sign] a rights of
 survivorship agreement under this section if the person:
 (1)  is married and the spouse of the [signing] person
 is the only other party to the agreement;
 (2)  is unmarried and attests to that unmarried status
 by affidavit; or
 (3)  is married and provides the department with an
 affidavit from the [signing] person's spouse that attests that the
 [signing] person's interest in the vehicle is the [signing]
 person's separate property.
 (f)  The department may develop an optional electronic [If
 the title is being issued in connection with the sale of the
 vehicle, the seller is not eligible to sign a] rights of
 survivorship agreement for public use [under this section unless
 the seller is the child, grandchild, parent, grandparent, brother,
 or sister of each other person signing the agreement. A family
 relationship required by this subsection may be a relationship
 established by adoption.
 [(g)     If an agreement, other than the agreement provided for
 in Subsection (a), providing for right of survivorship is signed by
 two or more persons, the department shall issue a new certificate of
 title to the surviving person or persons upon application
 accompanied by a copy of the death certificate of the deceased
 person. The department may develop for public use under this
 subsection an optional rights of survivorship agreement form].
 SECTION 21.  Section 501.032, Transportation Code, is
 amended to read as follows:
 Sec. 501.032.  ASSIGNMENT OF VEHICLE IDENTIFICATION
 [SERIAL] NUMBER BY DEPARTMENT. (a)  On proper application, the
 department shall assign a vehicle identification [a serial] number
 to a travel [house] trailer, a trailer or semitrailer that has a
 gross vehicle weight that exceeds 4,000 pounds, or an item of
 equipment, including a tractor, farm implement, unit of special
 mobile equipment, or unit of off-road construction equipment on
 which:
 (1)  a vehicle identification [a serial] number was not
 die-stamped by the manufacturer; or
 (2)  a vehicle identification [the serial] number
 die-stamped by the manufacturer has been lost, removed, or
 obliterated.
 (b)  The applicant shall die-stamp the assigned vehicle
 identification [serial] number at the place designated by the
 department on the travel [house] trailer, trailer, semitrailer, or
 equipment.
 (c)  The manufacturer's vehicle identification [serial]
 number or the vehicle identification [serial] number assigned by
 the department shall be affixed on the carriage or axle part of the
 travel [house] trailer, trailer, or semitrailer. The department
 shall use the number as the major identification of the vehicle in
 the issuance of a [certificate of] title.
 SECTION 22.  Sections 501.033(a), (b), and (d),
 Transportation Code, are amended to read as follows:
 (a)  A person determined by law enforcement [the department]
 or a court to be the owner of a motor vehicle, a part of a motor
 vehicle, or an item of equipment including a tractor, farm
 implement, unit of special mobile equipment, or unit of off-road
 construction equipment [that has had the serial number removed,
 altered, or obliterated] may apply to the department for an
 assigned vehicle identification number that has been removed,
 altered, or obliterated.
 (b)  An application under this section must be in [on] a
 manner [form] prescribed [and furnished] by the department and
 accompanied by [the certificate of title for the vehicle or other]
 valid evidence of ownership as required by the department [if there
 is no certificate of title].
 (d)  The assigned vehicle identification number shall be
 die-stamped or otherwise affixed [to the motor vehicle, part, or
 item of equipment at the location and] in the manner designated by
 the department.
 SECTION 23.  Section 520.011, Transportation Code, is
 transferred to Subchapter B, Chapter 501, Transportation Code,
 redesignated as Section 501.0331, Transportation Code, and amended
 to read as follows:
 Sec. 501.0331  [520.011].  MOTOR NUMBER REQUIRED FOR
 [VEHICLE] REGISTRATION [;  PENALTY]. [(a)]  A person may not apply
 to the county assessor-collector for the registration of a motor
 vehicle from which the original motor number has been removed,
 erased, or destroyed until the motor vehicle bears the motor number
 assigned by the department.
 [(b)     A person commits an offense if the person violates this
 section. An offense under this subsection is a misdemeanor
 punishable by a fine of not less than $50 and not more than $100.]
 SECTION 24.  Section 520.012, Transportation Code, is
 transferred to Subchapter B, Chapter 501, Transportation Code,
 redesignated as Section 501.0332, Transportation Code, and amended
 to read as follows:
 Sec. 501.0332  [520.012].  APPLICATION FOR MOTOR NUMBER
 RECORD[; RECORD; PENALTY]. (a)  To obtain a motor number assigned
 by the department, the owner of a motor vehicle that has had the
 original motor number removed, erased, or destroyed must file a
 sworn application with the department.
 (b)  The department shall maintain a record of [separate
 register for recording] each motor number assigned by the
 department that includes [. For each motor number assigned by the
 department, the record must indicate]:
 (1)  the motor number assigned by the department;
 (2)  the name and address of the owner of the motor
 vehicle; and
 (3)  the make, model, and year of manufacture of the
 motor vehicle.
 [(c)     A person who fails to comply with this section commits
 an offense. An offense under this subsection is a misdemeanor
 punishable by a fine of not less than $10 and not more than $100.]
 SECTION 25.  Section 501.034, Transportation Code, is
 amended to read as follows:
 Sec. 501.034.  ISSUANCE OF TITLE TO GOVERNMENT AGENCY. The
 department may issue a [certificate of] title to a government
 agency if a vehicle or part of a vehicle is:
 (1)  forfeited to the government agency;
 (2)  delivered by court order under the Code of
 Criminal Procedure to a government agency for official purposes; or
 (3)  sold as abandoned or unclaimed property under the
 Code of Criminal Procedure.
 SECTION 26.  Section 501.035, Transportation Code, is
 amended to read as follows:
 Sec. 501.035.  [CERTIFICATE OF] TITLE FOR FORMER MILITARY
 VEHICLE. (a)  Notwithstanding any other law, the department shall
 issue a [certificate of] title for a former military vehicle [that
 is not registered under the laws of this state] if all [other]
 requirements for issuance of a [certificate of] title are met.
 (b)  In this section, "former military vehicle" has the
 meaning assigned by Section 504.502(i) [502.275(o)].
 SECTION 27.  Section 501.036, Transportation Code, is
 amended to read as follows:
 Sec. 501.036.  [CERTIFICATE OF] TITLE FOR FARM SEMITRAILER.
 (a)  Notwithstanding any other provision of this chapter, the
 department may issue a [certificate of] title for a farm
 semitrailer with a gross weight of more than 4,000 pounds if:
 (1)  the farm semitrailer is eligible for registration
 under Section 502.146 [504.504];  and
 (2)  all other requirements for issuance of a
 [certificate of] title are met.
 (b)  To obtain a [certificate of] title under this section,
 the owner of the farm semitrailer must:
 (1)  apply for the [certificate of] title in the manner
 required by Section 501.023; and
 (2)  pay the fee required by Section 501.138.
 (c)  The department shall adopt rules [and forms] to
 implement and administer this section.
 SECTION 28.  Section 501.051, Transportation Code, is
 amended to read as follows:
 Sec. 501.051.  GROUNDS FOR REFUSAL TO ISSUE OR FOR
 REVOCATION OR SUSPENSION OF TITLE [CERTIFICATE]. (a) A title may
 be refused, canceled, suspended, or revoked by the [The] department
 [shall refuse to issue a certificate of title or shall suspend or
 revoke a certificate of title] if:
 (1)  the application [for the certificate] contains a
 false or fraudulent statement;
 (2)  the applicant failed to furnish required
 information requested by the department;
 (3)  the applicant is not entitled to a [certificate
 of] title;
 (4)  the department has reason to believe that the
 motor vehicle is stolen;
 (5)  the department has reason to believe that the
 issuance of a [certificate of] title would defraud the owner or a
 lienholder of the motor vehicle;
 (6)  the registration for the motor vehicle is
 suspended or revoked; or
 (7)  the required fee has not been paid.
 (b)  The department may rescind, cancel, or revoke an
 application for a title if a notarized affidavit is presented
 containing:
 (1)  a statement that the vehicle involved was a new
 motor vehicle in the process of a first sale;
 (2)  a statement that the dealer, the applicant, and
 any lienholder have canceled the sale;
 (3)  a statement that the vehicle:
 (A)  was never in the possession of the title
 applicant; or
 (B)  was in the possession of the title applicant;
 and
 (4)  the signatures of the dealer, the applicant, and
 any lienholder.
 (c)  A rescission, cancellation, or revocation containing
 the statement authorized under Subsection (b)(3)(B) does not negate
 the fact that the vehicle has been the subject of a previous retail
 sale.
 SECTION 29.  The heading to Section 501.052, Transportation
 Code, is amended to read as follows:
 Sec. 501.052.  HEARING ON REFUSAL TO ISSUE OR REVOCATION OR
 SUSPENSION OF [CERTIFICATE OF] TITLE; APPEAL.
 SECTION 30.  Sections 501.052(a), (d), and (e),
 Transportation Code, are amended to read as follows:
 (a)  An interested person aggrieved by a refusal,
 rescission, cancellation, suspension, or revocation under Section
 501.051 may apply for a hearing to the county assessor-collector
 for the county in which the person is a resident [domiciled]. On
 the day an assessor-collector receives the application, the
 assessor-collector shall notify the department of the date of the
 hearing.
 (d)  A determination of the assessor-collector is binding on
 the applicant and the department as to whether the department
 correctly refused to issue or correctly rescinded, canceled,
 revoked, or suspended the [certificate of] title.
 (e)  An applicant aggrieved by the determination under
 Subsection (d) may appeal to the county court of the county of the
 applicant's residence. An applicant must file an appeal not later
 than the fifth day after the date of the assessor-collector's
 determination. The county court judge shall try the appeal in the
 manner of other civil cases. All rights and immunities granted in
 the trial of a civil case are available to the interested parties.
 If the department's action is not sustained, the department shall
 promptly issue a [certificate of] title for the vehicle.
 SECTION 31.  Section 501.053, Transportation Code, is
 amended by amending Subsections (a), (b), and (d) and adding
 Subsection (e) to read as follows:
 (a)  As an alternative to the procedure provided by Section
 501.052, the person may file a bond with the department. On the
 filing of the bond the person [department] may obtain a [issue the
 certificate of] title.
 (b)  The bond must be:
 (1)  in the manner [form] prescribed by the department;
 (2)  executed by the applicant;
 (3)  issued by a person authorized to conduct a surety
 business in this state;
 (4)  in an amount equal to one and one-half times the
 value of the vehicle as determined by the department, which may set
 an appraisal system by rule if it is unable to determine that value;
 and
 (5)  conditioned to indemnify all prior owners and
 lienholders and all subsequent purchasers of the vehicle or persons
 who acquire a security interest in the vehicle, and their
 successors in interest, against any expense, loss, or damage,
 including reasonable attorney's fees, occurring because of the
 issuance of the [certificate of] title for the vehicle or for a
 defect in or undisclosed security interest on the right, title, or
 interest of the applicant to the vehicle.
 (d)  A bond under this section expires on the third
 anniversary of the date the bond became effective. [The department
 shall return an expired bond to the person who filed the bond unless
 the department has been notified of a pending action to recover on
 the bond.]
 (e)  The board by rule may establish a fee to cover the cost
 of administering this section.
 SECTION 32.  Section 501.071, Transportation Code, is
 amended to read as follows:
 Sec. 501.071.  SALE OF VEHICLE; TRANSFER OF TITLE. (a)
 Except as provided in Section 503.039, a motor vehicle may not be
 the subject of a subsequent sale unless the owner designated on [in]
 the [certificate of] title submits a transfer of ownership of
 [transfers] the [certificate of] title [at the time of the sale].
 (b)  The transfer of the [certificate of] title must be in
 [on] a manner [form] prescribed by the department that [includes a
 statement that]:
 (1)  certifies the purchaser [signer] is the owner of
 the vehicle; and
 (2)  certifies there are no liens on the vehicle or
 provides a release of each lien [except as shown] on the vehicle
 [certificate of title or as fully described in the statement].
 SECTION 33.  Section 520.022, Transportation Code, is
 transferred to Subchapter D, Chapter 501, Transportation Code,
 redesignated as Section 501.0721, Transportation Code, and amended
 to read as follows:
 Sec. 501.0721  [520.022].  DELIVERY OF RECEIPT AND TITLE TO
 PURCHASER OF USED MOTOR VEHICLE [TRANSFEREE; PENALTY]. [(a)]  A
 person, whether acting for that person or another, who sells,
 trades, or otherwise transfers a used motor vehicle shall deliver
 to the purchaser [transferee] at the time of delivery of the vehicle
 [:
 [(1)     the license receipt issued by the department for
 registration of the vehicle, if the vehicle was required to be
 registered at the time of the delivery; and
 [(2)]  a properly assigned [certificate of] title or
 other evidence of title as required under this chapter [Chapter
 501].
 [(b)     A person commits an offense if the person violates this
 section. An offense under this subsection is a misdemeanor
 punishable by a fine not to exceed $200.]
 SECTION 34.  Sections 501.074(a), (b), and (c),
 Transportation Code, are amended to read as follows:
 (a)  The department shall issue a new [certificate of] title
 for a motor vehicle registered in this state for which the ownership
 is transferred by operation of law [, including by inheritance,
 devise or bequest, bankruptcy, receivership, judicial sale,] or
 other involuntary divestiture of ownership after receiving:
 (1)  a certified copy of an [the] order appointing a
 temporary administrator or of the probate proceedings;
 (2)  letters testamentary or letters of
 administration;
 (3)  if administration of an estate is not necessary,
 an affidavit showing that administration is not necessary,
 identifying all heirs, and including a statement by the heirs of the
 name in which the certificate shall be issued;
 (4)  a court order; or
 (5)  the bill of sale from an officer making a judicial
 sale.
 (b)  If a lien is foreclosed by nonjudicial means, the
 department may issue a new [certificate of] title in the name of the
 purchaser at the foreclosure sale on receiving the affidavit of the
 lienholder of the fact of the nonjudicial foreclosure.
 (c)  If a constitutional or statutory lien is foreclosed, the
 department may issue a new [certificate of] title in the name of the
 purchaser at the foreclosure sale on receiving:
 (1)  the affidavit of the lienholder of the fact of the
 creation of the lien and of the divestiture of title according to
 law; and
 (2)  proof of notice as required by Sections 70.004 and
 70.006, Property Code.
 SECTION 35.  Section 501.076(c), Transportation Code, is
 amended to read as follows:
 (c)  The person named as the agent in the limited power of
 attorney must meet the following requirements:
 (1)  the person may be a person who has been appointed
 by the commissioners [commissioner's] court as a deputy to perform
 vehicle registration functions under Section 520.0091 [502.112], a
 licensed [license] vehicle auction company holding a wholesale
 general distinguishing number under Section 503.022, a person who
 has a permit similar to one of the foregoing that is issued by the
 state in which the owner is located, or another person authorized by
 law to execute title documents in the state in which the owner
 executes the documents; and
 (2)  the person may not be the transferee or an employee
 of the transferee. The person may not act as the agent of both the
 transferor and transferee in the transaction. For the purposes of
 this section, a person is not the agent of both the transferor and
 transferee in a transaction unless the person has the authority to
 sign the documents pertaining to the transfer of title on behalf of
 both the transferor and the transferee.
 SECTION 36.  Section 501.091, Transportation Code, is
 amended by amending Subdivisions (2), (3), (6), (7), (8), (9),
 (10), (12), (14), (15), (16), (17), and (18) and adding
 Subdivisions (10-a) and (16-a) to read as follows:
 (2)  "Casual sale" means the sale by a salvage vehicle
 dealer or an insurance company of five or fewer [not more than five]
 nonrepairable motor vehicles or salvage motor vehicles to the same
 person during a calendar year, but [. The term] does not include:
 (A)  a sale at auction to a salvage vehicle
 dealer; [or]
 (B)  a sale to an insurance company, out-of-state
 buyer, or governmental entity; or
 (C)  the sale of an export-only motor vehicle to a
 person who is not a resident of the United States.
 (3)  "Damage" means sudden damage to a motor vehicle
 caused by the motor vehicle being wrecked, burned, flooded, or
 stripped of major component parts. The term does not include:
 (A)  gradual damage from any cause;
 (B)  [,] sudden damage caused by hail;
 (C)  [, or] any damage caused only to the exterior
 paint of the motor vehicle; or
 (D)  theft, unless the motor vehicle was damaged
 during the theft and before recovery.
 (6)  "Major component part" means one of the following
 parts of a motor vehicle:
 (A)  the engine;
 (B)  the transmission;
 (C)  the frame;
 (D)  a fender;
 (E)  the hood;
 (F)  a door allowing entrance to or egress from
 the passenger compartment of the motor vehicle;
 (G)  a bumper;
 (H)  a quarter panel;
 (I)  a deck lid, tailgate, or hatchback;
 (J)  the cargo box of a vehicle with a gross
 vehicle weight of 10,000 pounds or less [one-ton or smaller truck],
 including a pickup truck;
 (K)  the cab of a truck;
 (L)  the body of a passenger motor vehicle;
 (M)  the roof or floor pan of a passenger motor
 vehicle, if separate from the body of the motor vehicle.
 (7)  "Metal recycler" means a person who:
 (A)  is [predominately] engaged in the business of
 obtaining, converting, or selling ferrous or nonferrous metal [that
 has served its original economic purpose to convert the metal, or
 sell the metal] for conversion[,] into raw material products
 consisting of prepared grades and having an existing or potential
 economic value;
 (B)  has a facility to convert ferrous or
 nonferrous metal into raw material products [consisting of prepared
 grades and having an existing or potential economic value,] by
 method other than the exclusive use of hand tools, including the
 processing, sorting, cutting, classifying, cleaning, baling,
 wrapping, shredding, shearing, or changing the physical form or
 chemical content of the metal; and
 (C)  sells or purchases the ferrous or nonferrous
 metal solely for use as raw material in the production of new
 products.
 (8)  "Motor vehicle" has the meaning assigned by
 Section 501.002 [501.002(14)].
 (9)  "Nonrepairable motor vehicle" means a motor
 vehicle that:
 (A)  is damaged, wrecked, or burned to the extent
 that the only residual value of the vehicle is as a source of parts
 or scrap metal; or
 (B)  comes into this state under a comparable
 [title or other] ownership document that indicates that the vehicle
 is nonrepairable [, junked, or for parts or dismantling only].
 (10)  "Nonrepairable vehicle title" means a printed
 document issued by the department that evidences ownership of a
 nonrepairable motor vehicle.
 (10-a)  "Nonrepairable record of title" means an
 electronic record of ownership of a nonrepairable motor vehicle.
 (12)  "Out-of-state ownership document" means a
 negotiable document issued by another state or jurisdiction that
 the department considers sufficient to prove ownership of a
 nonrepairable motor vehicle or salvage motor vehicle and to support
 the issuance of a comparable Texas [certificate of] title for the
 motor vehicle. The term does not include any [a] title or
 certificate issued by the department [, including a regular
 certificate of title, a nonrepairable vehicle title, a salvage
 vehicle title, a Texas Salvage Certificate, Certificate of
 Authority to Demolish a Motor Vehicle, or another ownership
 document issued by the department].
 (14)  "Rebuilder" means a person who acquires and
 repairs, rebuilds, or reconstructs for operation on a public
 highway, [three or] more than five salvage motor vehicles in a
 calendar year.
 (15)  "Salvage motor vehicle" [:
 [(A)] means a motor vehicle that:
 (A) [(i)]  has damage to or is missing a major
 component part to the extent that the cost of repairs, including
 parts and labor other than the cost of materials and labor for
 repainting the motor vehicle and excluding sales tax on the total
 cost of repairs, exceeds the actual cash value of the motor vehicle
 immediately before the damage; or
 (B)  [(ii) is damaged and that] comes into this
 state under an out-of-state salvage motor vehicle [certificate of]
 title or similar out-of-state ownership document [that states on
 its face "accident damage," "flood damage," "inoperable,"
 "rebuildable," "salvageable," or similar notation; and
 [(B) does not include an out-of-state motor
 vehicle with a "rebuilt," "prior salvage," "salvaged," or similar
 notation, a nonrepairable motor vehicle, or a motor vehicle for
 which an insurance company has paid a claim for:
 [(i) the cost of repairing hail damage; or
 [(ii) theft, unless the motor vehicle was
 damaged during the theft and before recovery to the extent
 described by Paragraph (A)(i)].
 (16)  "Salvage vehicle title" means a printed document
 issued by the department that evidences ownership of a salvage
 motor vehicle.
 (16-a)  "Salvage record of title" means an electronic
 record of ownership of a salvage motor vehicle.
 (17)  "Salvage vehicle dealer" means a person engaged
 in this state in the business of acquiring, selling, repairing,
 rebuilding, reconstructing, or otherwise dealing in nonrepairable
 motor vehicles, salvage motor vehicles, or, if incidental to a
 salvage motor vehicle dealer's primary business, used automotive
 parts regardless of whether the person holds a license issued by the
 department to engage in that business.  The term does not include an
 unlicensed [a] person who:
 (A)  casually repairs, rebuilds, or reconstructs
 not more [fewer] than five nonrepairable motor vehicles or salvage
 motor vehicles in the same calendar year [or, except as provided by
 Paragraph (C), a used automotive parts recycler. The term includes
 a person engaged in the business of:
 [(A)     a salvage vehicle dealer, regardless of
 whether the person holds a license issued by the department to
 engage in that business];
 (B)  buys not more than five [dealing in]
 nonrepairable motor vehicles or salvage motor vehicles in the same
 calendar year; or
 (C)  is a licensed used automotive parts recycler
 if the sale of repaired, rebuilt, or reconstructed nonrepairable
 motor vehicles or salvage motor vehicles is more than an incidental
 part of the used automotive parts recycler's business.
 (18)  "Self-insured motor vehicle" means a motor
 vehicle for which the [evidence of ownership is a manufacturer's
 certificate of origin or for which the department or another state
 or jurisdiction has issued a regular certificate of title, is
 self-insured by the] owner [, and is owned by an individual, a
 business,] or a governmental entity assumes full financial
 responsibility for motor vehicle loss claims[,] without regard to
 the number of motor vehicles they own or operate. The term does not
 include a motor vehicle that is insured by an insurance company.
 SECTION 37.  Section 501.098, Transportation Code, is
 redesignated as Section 501.09111, Transportation Code, and
 amended to read as follows:
 Sec. 501.09111 [501.098]. RIGHTS AND LIMITATIONS OF [HOLDER
 OF] NONREPAIRABLE VEHICLE TITLE, NONREPAIRABLE RECORD OF TITLE,
 [OR] SALVAGE VEHICLE TITLE, OR SALVAGE RECORD OF TITLE. (a) A
 person who owns [holds] a nonrepairable [vehicle title for a] motor
 vehicle:
 (1)  is entitled to possess, transport, dismantle,
 scrap, destroy, record a lien as provided for in Section
 501.097(a)(3)(A), and sell, transfer, or release ownership of the
 motor vehicle or a used part from the motor vehicle; and
 (2)  may not:
 (A)  operate or permit the operation of the motor
 vehicle on a public highway, in addition to any other requirement of
 law;
 (B)  repair, rebuild, or reconstruct the motor
 vehicle; or
 (C)  register the motor vehicle.
 (b)  A person who holds a nonrepairable certificate of title
 issued prior to September 1, 2003,[:
 [(1)]  is entitled to the same rights listed in
 Subsection (a) and may [:
 [(A)]  repair, rebuild, or reconstruct the motor
 vehicle [;
 [(B)     possess, transport, dismantle, scrap, or
 destroy the motor vehicle; and
 [(C)     sell, transfer, or release ownership of the
 vehicle or a used part from the motor vehicle; and
 [(2)  may not:
 [(A)     operate or permit the operation of the motor
 vehicle on a public highway, in addition to any other requirement of
 law; or
 [(B)  register the motor vehicle].
 (c)  A person who owns [holds] a salvage [vehicle title for
 a] motor vehicle:
 (1)  is entitled to possess, transport, dismantle,
 scrap, destroy, repair, rebuild, reconstruct, record a lien on, and
 sell, transfer, or release ownership of the motor vehicle or a used
 part from the motor vehicle; and
 (2)  may not operate, register, or permit the operation
 of the motor vehicle on a public highway, in addition to any other
 requirement of law.
 SECTION 38.  Section 501.103, Transportation Code, is
 redesignated as Section 501.09112, Transportation Code, and
 amended to read as follows:
 Sec. 501.09112  [501.103]. APPEARANCE [COLOR] OF
 NONREPAIRABLE VEHICLE TITLE OR SALVAGE VEHICLE TITLE. (a) The
 department's printed [department shall print a] nonrepairable
 vehicle title must[:
 [(1)     in a color that distinguishes it from a regular
 certificate of title or salvage vehicle title; and
 [(2)  so that it] clearly indicate [shows] that it is
 the negotiable ownership document for a nonrepairable motor
 vehicle.
 (b)  A nonrepairable vehicle title must clearly indicate
 [state on its face] that the motor vehicle:
 (1)  may not be:
 (A)  issued a regular [certificate of] title;
 (B)  registered in this state; or
 (C)  repaired, rebuilt, or reconstructed; and
 (2)  may be used only as a source for used parts or
 scrap metal.
 (c)  The department's printed [department shall print a]
 salvage vehicle title must [:
 [(A)     in a color that distinguishes it from a
 regular certificate of title or nonrepairable vehicle title; and
 [(B)  so that each document] clearly show [shows]
 that it is the ownership document for a salvage motor vehicle.
 (d)  A salvage vehicle title or a salvage record of title for
 a vehicle that is a salvage motor vehicle because of damage caused
 exclusively by flood must bear a notation [on its face] that the
 department considers appropriate. If the title for a motor vehicle
 reflects the notation required by this subsection, the owner may
 sell, transfer, or release the motor vehicle only as provided by
 this subchapter.
 (e)  An electronic application for a nonrepairable vehicle
 title, nonrepairable record of title, salvage vehicle title, or
 salvage record of title must clearly advise the applicant of the
 same provisions required on a printed title.
 (f)  A nonrepairable vehicle title, nonrepairable record of
 title, salvage vehicle title, or salvage record of title in the
 department's electronic database must include appropriate remarks
 so that the vehicle record clearly shows the status of the vehicle
 [(e)    The department may provide a stamp to a person who is a
 licensed salvage vehicle dealer under Chapter 2302, Occupations
 Code, to mark the face of a title under this subchapter. The
 department shall provide the stamp to the person for a fee in the
 amount determined by the department to be necessary for the
 department to recover the cost of providing the stamp].
 SECTION 39.  Section 501.101, Transportation Code, is
 redesignated as Section 501.09113, Transportation Code, and
 amended to read as follows:
 Sec. 501.09113  [501.101]. OUT-OF-STATE SALVAGE OR REBUILT
 SALVAGE VEHICLE [ISSUANCE OF TITLE TO MOTOR VEHICLE BROUGHT INTO
 STATE]. (a) This section applies only to a motor vehicle brought
 into this state from another state or jurisdiction that has on any
 [certificate of] title or comparable out-of-state ownership
 document issued by the other state or jurisdiction:
 (1)  a "rebuilt," "salvage," or similar notation; or
 (2)  a "nonrepairable," "dismantle only," "parts
 only," "junked," "scrapped," or similar notation.
 (b)  On receipt of a complete application from the owner of
 the motor vehicle, the department shall issue the applicant the
 appropriate [certificate of] title for the motor vehicle.
 [(c)     A certificate of title issued under this section must
 show on its face:
 [(1)  the date of issuance;
 [(2)  the name and address of the owner;
 [(3)     any registration number assigned to the motor
 vehicle; and
 [(4)     a description of the motor vehicle or other
 notation the department considers necessary or appropriate.]
 SECTION 40.  The heading to Section 501.095, Transportation
 Code, is amended to read as follows:
 Sec. 501.095.  SALE, TRANSFER, OR RELEASE [OF NONREPAIRABLE
 MOTOR VEHICLE OR SALVAGE MOTOR VEHICLE].
 SECTION 41.  Sections 501.095(a) and (b), Transportation
 Code, are amended to read as follows:
 (a)  If the department has not issued a nonrepairable vehicle
 title, nonrepairable record of title, [or] salvage vehicle title,
 or salvage record of title for the motor vehicle and a comparable
 [an] out-of-state ownership document for the motor vehicle has not
 been issued by another state or jurisdiction, a business or
 governmental entity described by Subdivisions (1)-(3) may sell,
 transfer, or release a nonrepairable motor vehicle or salvage motor
 vehicle only to a person who is:
 (1)  a licensed salvage vehicle dealer, a used
 automotive parts recycler under Chapter 2309, Occupations Code, or
 a metal recycler under Chapter 2302, Occupations Code;
 (2)  an insurance company that has paid a claim on the
 nonrepairable or salvage motor vehicle; or
 (3)  a governmental entity[; or
 [(4)  an out-of-state buyer].
 (b)  An owner [A person], other than a salvage vehicle
 dealer, a used automotive parts recycler, or an insurance company
 licensed to do business in this state, who acquired ownership of a
 nonrepairable or salvage motor vehicle that has not been issued a
 nonrepairable vehicle title, nonrepairable record of title,
 salvage vehicle title, salvage record of title, or a comparable
 ownership document issued by another state or jurisdiction shall,
 before selling the motor vehicle, surrender the properly assigned
 [certificate of] title for the motor vehicle to the department and
 apply to the department for the appropriate ownership document[:
 [(1)     a nonrepairable vehicle title if the vehicle is a
 nonrepairable motor vehicle; or
 [(2)     a salvage vehicle title if the vehicle is a
 salvage motor vehicle].
 SECTION 42.  Section 501.097, Transportation Code, is
 amended by amending Subsections (a) and (c) and adding Subsection
 (c-1) to read as follows:
 (a)  An application for a nonrepairable vehicle title,
 nonrepairable record of title, [or] salvage vehicle title, or
 salvage record of title must:
 (1)  be made in [on] a manner [form] prescribed by the
 department and accompanied by a $8 application fee;
 (2)  include, in addition to any other information
 required by the department:
 (A)  the name and current address of the owner;
 and
 (B)  a description of the motor vehicle, including
 the make, style of body, model year, and vehicle identification
 number[; and
 [(C)     a statement describing whether the motor
 vehicle:
 [(i)     was the subject of a total loss claim
 paid by an insurance company under Section 501.092 or 501.093;
 [(ii)     is a self-insured motor vehicle under
 Section 501.094;
 [(iii)     is an export-only motor vehicle
 under Section 501.099; or
 [(iv)     was sold, transferred, or released to
 the owner or former owner of the motor vehicle or a buyer at a casual
 sale]; and
 (3)  include the name and address of:
 (A)  any currently recorded lienholder, if the
 motor vehicle is a nonrepairable motor vehicle; or
 (B)  any currently recorded lienholder or a new
 lienholder, if the motor vehicle is a salvage motor vehicle.
 (c)  A printed nonrepairable vehicle title must state on its
 face that the motor vehicle:
 (1)  may not:
 (A)  be repaired, rebuilt, or reconstructed;
 (B)  be issued a [regular certificate of] title or
 registered in this state;
 (C)  be operated on a public highway, in addition
 to any other requirement of law; and
 (2)  may only be used as a source for used parts or
 scrap metal.
 (c-1)  The department's titling system must include a remark
 that clearly identifies the vehicle as a salvage or nonrepairable
 motor vehicle.
 SECTION 43.  Sections 501.100(a), (b), (c), and (f),
 Transportation Code, are amended to read as follows:
 (a)  A vehicle for which a nonrepairable certificate of title
 issued prior to September 1, 2003, or for which a salvage vehicle
 title or salvage record of title has been issued may obtain [be
 issued] a [regular certificate of] title after the motor vehicle
 has been repaired, rebuilt, or reconstructed [by a person described
 by Section 501.104(a)] and, in addition to any other requirement of
 law, only if the application [is accompanied by a separate form
 that]:
 (1)  describes each major component part used to repair
 the motor vehicle;
 (2)  states the name of each person from whom the parts
 used in assembling the vehicle were obtained; and
 (3) [(2)]  shows the identification number required by
 federal law to be affixed to or inscribed on the part.
 (b)  On receipt of a complete application under this section
 accompanied by the [$13] fee for the [certificate of] title, the
 department shall issue the applicant a [regular certificate of]
 title [for the motor vehicle].
 (c)  A [regular certificate of] title issued under this
 section must [:
 [(1)]  describe or disclose the motor vehicle's former
 condition in a manner reasonably understandable to a potential
 purchaser of the motor vehicle [; and
 [(2)     bear on its face the words "REBUILT SALVAGE" in
 capital letters that:
 [(A)  are red;
 [(B)     are centered on and occupy at least 15
 percent of the face of the certificate of title; and
 [(C)     do not prevent any other words on the title
 from being read or copied].
 (f)  The department may not issue a regular [certificate of]
 title for a motor vehicle based on a:
 (1)  nonrepairable vehicle title or comparable
 out-of-state ownership document;
 (2)  receipt issued under Section 501.1003(b)
 [501.096(b)]; or
 (3)  certificate of authority.
 SECTION 44.  Section 501.092, Transportation Code, is
 redesignated as Section 501.1001, Transportation Code, and amended
 to read as follows:
 Sec. 501.1001 [501.092].  [INSURANCE COMPANY TO SURRENDER
 CERTIFICATES OF TITLE TO CERTAIN] SALVAGE MOTOR VEHICLES OR
 NONREPAIRABLE MOTOR VEHICLES FOR INSURANCE COMPANIES OR
 SELF-INSURED PERSONS. (a)  An insurance company that is licensed to
 conduct business in this state and that acquires, through payment
 of a claim, ownership or possession of a salvage motor vehicle or
 nonrepairable motor vehicle covered by a [certificate of] title
 issued by this state or a manufacturer's certificate of origin
 shall surrender a properly assigned title or manufacturer's
 certificate of origin to the department, in [on] a manner [form]
 prescribed by the department, except that not earlier than the 31st
 [46th] day after the date of payment of the claim the insurance
 company may surrender a [certificate of] title, in [on] a manner
 [form] prescribed by the department, and receive a salvage vehicle
 [certificate of] title or a nonrepairable vehicle [certificate of]
 title without obtaining a properly assigned [certificate of] title
 if the insurance company:
 (1)  has obtained the release of all liens on the motor
 vehicle;
 (2)  is unable to locate one or more owners of the motor
 vehicle; and
 (3)  has provided notice to the last known address in
 the department's records to each owner that has not been located:
 (A)  by registered or certified mail, return
 receipt requested; or
 (B)  if a notice sent under Paragraph (A) is
 returned unclaimed, by publication in a newspaper of general
 circulation in the area where the unclaimed mail notice was sent.
 (b)  For a salvage motor vehicle, the insurance company shall
 apply for a salvage vehicle title or salvage record of title. For a
 nonrepairable motor vehicle, the insurance company shall apply for
 a nonrepairable vehicle title or nonrepairable record of title.
 (c)  [An insurance company may not sell a motor vehicle to
 which this section applies unless the department has issued a
 salvage vehicle title or a nonrepairable vehicle title for the
 motor vehicle or a comparable ownership document has been issued by
 another state or jurisdiction for the motor vehicle.
 [(d)     An insurance company may sell a motor vehicle to which
 this section applies, or assign a salvage vehicle title or a
 nonrepairable vehicle title for the motor vehicle, only to a
 salvage vehicle dealer, an out-of-state buyer, a buyer in a casual
 sale at auction, a metal recycler, or a used automotive parts
 recycler. If the motor vehicle is not a salvage motor vehicle or a
 nonrepairable motor vehicle, the insurance company is not required
 to surrender the regular certificate of title for the vehicle or to
 be issued a salvage vehicle title or a nonrepairable vehicle title
 for the motor vehicle.
 [(e)]  An insurance company or other person who acquires
 ownership of a motor vehicle other than a nonrepairable or salvage
 motor vehicle may voluntarily and on proper application obtain a
 salvage vehicle title, salvage record of title, [or a]
 nonrepairable vehicle title, or nonrepairable record of title for
 the vehicle.
 (d)  This section applies only to a motor vehicle in this
 state that is:
 (1)  a self-insured motor vehicle; and
 (2)  damaged to the extent it becomes a nonrepairable
 or salvage motor vehicle.
 (e)  The owner of a motor vehicle to which this section
 applies shall submit to the department before the 31st business day
 after the date of the damage, in a manner prescribed by the
 department, a statement that the motor vehicle was self-insured and
 damaged.
 (f)  When the owner submits a statement under Subsection (e),
 the owner shall surrender the ownership document and apply for a
 nonrepairable vehicle title, nonrepairable record of title,
 salvage vehicle title, or salvage record of title.
 SECTION 45.  Section 501.093, Transportation Code, is
 redesignated as Section 501.1002, Transportation Code, and amended
 to read as follows:
 Sec. 501.1002 [501.093].  OWNER-RETAINED [INSURANCE COMPANY
 REPORT ON CERTAIN] VEHICLES. (a)  If an insurance company pays a
 claim on a nonrepairable motor vehicle or salvage motor vehicle and
 the insurance company does not acquire ownership of the motor
 vehicle, the insurance company shall:
 (1)  apply on behalf of the owner for a nonrepairable
 vehicle title, nonrepairable record of title, salvage vehicle
 title, or salvage record of title; or
 (2)  notify the owner of the information contained in:
 (A)  Subsection (b); or
 (B)  Section 501.09111; and
 (3)  submit to the department, before the 31st day
 after the date of the payment of the claim, in a manner [on the
 form] prescribed by the department, a report stating that the
 insurance company:
 (A) [(1)]  has paid a claim on the motor vehicle;
 and
 (B) [(2)]  has not acquired ownership of the motor
 vehicle.
 (b)  The owner of a motor vehicle to which this section
 applies may not operate or permit operation of the motor vehicle on
 a public highway or transfer ownership of the motor vehicle by sale
 or otherwise unless the department has issued a salvage vehicle
 title, salvage record of title, [or a] nonrepairable vehicle title,
 or nonrepairable record of title for the motor vehicle or a
 comparable ownership document has been issued by another state or
 jurisdiction for the motor vehicle.
 [(c)  Subsection (b) does not apply if:
 [(1)     the department has issued a nonrepairable vehicle
 title or salvage vehicle title for the motor vehicle; or
 [(2)     another state or jurisdiction has issued a
 comparable out-of-state ownership document for the motor vehicle.]
 SECTION 46.  Section 501.096, Transportation Code, is
 redesignated as Section 501.1003, Transportation Code, and amended
 to read as follows:
 Sec. 501.1003 [501.096].  [NONREPAIRABLE MOTOR VEHICLE OR]
 SALVAGE DEALER RESPONSIBILITIES [MOTOR VEHICLE DISMANTLED,
 SCRAPPED, OR DESTROYED]. (a)  If a salvage vehicle dealer acquires
 ownership of a nonrepairable motor vehicle or salvage motor vehicle
 for the purpose of dismantling, scrapping, or destroying the motor
 vehicle, the dealer shall, before the 31st day after the date the
 dealer acquires the motor vehicle, submit to the department a
 report stating that the motor vehicle will be dismantled, scrapped,
 or destroyed. The dealer shall:
 (1)  make the report in a manner [on a form] prescribed
 by the department; and
 (2)  submit with the report a properly assigned
 manufacturer's certificate of origin, regular certificate of
 title, nonrepairable vehicle title, salvage vehicle title, or
 comparable out-of-state ownership document for the motor vehicle.
 (b)  After receiving the report and title or document, the
 department shall issue the salvage vehicle dealer a receipt for the
 manufacturer's certificate of origin, regular certificate of
 title, nonrepairable vehicle title, salvage vehicle title, or
 comparable out-of-state ownership document.
 (c)  The department shall adopt rules to notify the salvage
 [vehicle] dealer if the vehicle was not issued a printed title, but
 has a record of title in the department's titling system [shall:
 [(1)     keep on the business premises of the dealer,
 until the third anniversary of the date the report on the motor
 vehicle is submitted to the department, a record of the vehicle, its
 ownership, and its condition as dismantled, scrapped, or destroyed;
 and
 [(2)     present to the department, on the form prescribed
 by the department, evidence that the motor vehicle was dismantled,
 scrapped, or destroyed before the 61st day after the date the dealer
 completed the dismantling, scrapping, or destruction of the motor
 vehicle].
 SECTION 47.  Section 501.104, Transportation Code, is
 amended to read as follows:
 Sec. 501.104.  REBUILDER TO POSSESS TITLE OR OTHER
 DOCUMENTATION. (a) This section applies [only] to [:
 [(1)  a rebuilder licensed as a salvage vehicle dealer;
 [(2)]  a person engaged in repairing, rebuilding, or
 reconstructing more than five motor vehicles [the business of a
 rebuilder], regardless of whether the person is licensed to engage
 in that business [; or
 [(3)     a person engaged in the casual repair,
 rebuilding, or reconstruction of fewer than three motor vehicles in
 the same 12-month period].
 (b)  A person described by Subsection (a) must possess:
 (1)  an acceptable [a regular certificate of title,
 nonrepairable vehicle title, salvage vehicle title, or comparable
 out-of-state] ownership document or proof of ownership for any
 motor vehicle that is:
 (A)  owned by the person;
 (B)  in the person's inventory; and
 (C)  being offered for resale; or
 (2)  a contract entered into with the owner, a work
 order, or another document that shows the authority for the person
 to possess any motor vehicle that is:
 (A)  owned by another person;
 (B)  on the person's business or casual premises;
 and
 (C)  being repaired, rebuilt, or reconstructed
 for the other person.
 SECTION 48.  Section 501.105, Transportation Code, is
 redesignated as Section 501.108, Transportation Code, and amended
 to read as follows:
 Sec. 501.108  [501.105].  RECORD RETENTION [OF RECORDS
 RELATING TO CERTAIN CASUAL SALES].  (a)  Each licensed salvage
 vehicle dealer, used automotive parts recycler, or insurance
 company that sells a nonrepairable motor vehicle or a salvage motor
 vehicle at a casual sale shall keep on the business premises of the
 dealer or the insurance company a list of all casual sales made
 during the preceding 36-month period that contains:
 (1)  the date of the sale;
 (2)  the name of the purchaser;
 (3)  the name of the jurisdiction that issued the
 identification document provided by the purchaser, as shown on the
 document; and
 (4)  the vehicle identification number.
 (b)  A salvage vehicle dealer or used automotive parts
 recycler shall keep on the business premises of the dealer or
 recycler, until the third anniversary of the date the report on the
 motor vehicle is submitted to the department, a record of the
 vehicle, its ownership, and its condition as dismantled, scrapped,
 or destroyed as required by Section 501.1003.
 SECTION 49.  Section 501.102, Transportation Code, is
 redesignated as Section 501.109, Transportation Code, and amended
 to read as follows:
 Sec. 501.109 [501.102].  OFFENSES. (a)  A person commits an
 offense if the person:
 (1)  applies to the department for a [regular
 certificate of] title for a motor vehicle; and
 (2)  knows or reasonably should know that:
 (A)  the vehicle is a nonrepairable motor vehicle
 that has been repaired, rebuilt, or reconstructed;
 (B)  the vehicle identification number assigned
 to the motor vehicle belongs to a nonrepairable motor vehicle that
 has been repaired, rebuilt, or reconstructed;
 (C)  the title issued to the motor vehicle belongs
 to a nonrepairable motor vehicle that has been repaired, rebuilt,
 or reconstructed;
 (D)  the vehicle identification number assigned
 to the motor vehicle belongs to an export-only motor vehicle;
 (E)  the motor vehicle is an export-only motor
 vehicle; or
 (F)  the motor vehicle is a nonrepairable motor
 vehicle or salvage motor vehicle for which a nonrepairable vehicle
 title, salvage vehicle title, or comparable ownership document
 issued by another state or jurisdiction has not been issued.
 (b)  A person commits an offense if the person knowingly
 sells, transfers, or releases a salvage motor vehicle in violation
 of this subchapter.
 (c)  A person commits an offense if the person knowingly
 fails or refuses to surrender a regular certificate of title after
 the person:
 (1)  receives a notice from an insurance company that
 the motor vehicle is a nonrepairable or salvage motor vehicle; or
 (2)  knows the vehicle has become a nonrepairable motor
 vehicle or salvage motor vehicle under Section 501.1001 [501.094].
 (d)  Except as provided by Subsection (e), an offense under
 this section is a Class C misdemeanor.
 (e)  If it is shown on the trial of an offense under this
 section that the defendant has been previously convicted of:
 (1)  one offense under this section, the offense is a
 Class B misdemeanor; or
 (2)  two or more offenses under this section, the
 offense is a state jail felony.
 SECTION 50.  Section 501.106, Transportation Code, is
 redesignated as Section 501.110, Transportation Code, and amended
 to read as follows:
 Sec. 501.110 [501.106].  ENFORCEMENT OF SUBCHAPTER. (a)
 This subchapter shall be enforced by the department and any other
 governmental or law enforcement entity, including the Department of
 Public Safety, and the personnel of the entity as provided by this
 subchapter.
 (b)  The department, an agent, officer, or employee of the
 department, or another person enforcing this subchapter is not
 liable to a person damaged or injured by an act or omission relating
 to the issuance or revocation of a [regular certificate of] title,
 nonrepairable vehicle title, nonrepairable record of title, [or]
 salvage vehicle title, or salvage record of title under this
 subchapter.
 SECTION 51.  Section 501.111(a), Transportation Code, is
 amended to read as follows:
 (a)  Except as provided by Subsection (b), a person may
 perfect a security interest in a motor vehicle that is the subject
 of a first or subsequent sale only by recording the security
 interest on the [certificate of] title as provided by this chapter.
 SECTION 52.  Section 501.113, Transportation Code, is
 amended to read as follows:
 Sec. 501.113.  RECORDATION OF SECURITY INTEREST.  (a)
 Recordation of a lien under this chapter is considered to occur
 when:
 (1)  the department's titling system is updated; or
 (2)  the county assessor-collector [:
 [(1)     is presented with an application for a
 certificate of title that discloses the lien with tender of the
 filing fee; or
 [(2)]  accepts the application of title that discloses
 the lien with the filing fee.
 (b)  For purposes of Chapter 9, Business & Commerce Code, the
 time of recording a lien under this chapter is considered to be the
 time of filing the security interest, and on such recordation, the
 recorded lienholder and assignees under Section 501.114 obtain
 priority over the rights of a lien creditor, as defined by Section
 9.102, Business & Commerce Code, for so long as the lien is recorded
 on the [certificate of] title.
 SECTION 53.  Sections 501.114(b), (d), (e), (f), and (g),
 Transportation Code, are amended to read as follows:
 (b)  An assignee or assignor may, but need not to retain the
 validity, perfection, and priority of the lien assigned, as
 evidence of the assignment of a lien recorded under Section
 501.113:
 (1)  apply  to the county assessor-collector for the
 assignee to be named as lienholder on the [certificate of] title;
 and
 (2)  notify  the debtor of the assignment.
 (d)  An application under Subsection (b) must be
 acknowledged[:
 [(1)  signed] by the assignee[; and
 [(2)  accompanied by:
 [(A)  the applicable fee;
 [(B)     a copy of the assignment agreement executed
 by the parties; and
 [(C)     the certificate of title on which the lien
 to be assigned is recorded].
 (e)  On receipt of the completed application and fee, the
 department may:
 (1)  [may] amend the department's records to substitute
 the assignee for the recorded lienholder; and
 (2)  [shall] issue a new [certificate of] title as
 provided by this chapter [Section 501.027].
 (f)  The issuance of a [certificate of] title under
 Subsection (e) is recordation of the assignment.
 (g)  Regardless of whether application is made for the
 assignee to be named as lienholder on the [certificate of] title,
 the time of the recordation of a lien assigned under this section is
 considered to be the time the lien was initially recorded under
 Section 501.113.
 SECTION 54.  Section 501.115, Transportation Code, is
 amended to read as follows:
 Sec. 501.115.  DISCHARGE OF LIEN. (a) When a debt or claim
 secured by a lien has been satisfied, the lienholder shall, within a
 reasonable time not to exceed the maximum time allowed by Section
 348.408, Finance Code, execute and deliver to the owner, or the
 owner's designee, a discharge of the lien in [on] a manner [form]
 prescribed by the department.
 (b)  The owner may submit [present] the discharge and
 [certificate of] title to the department for [county
 assessor-collector with an application for a new certificate of
 title and the department shall issue] a new [certificate of] title.
 SECTION 55.  Section 501.116, Transportation Code, is
 amended to read as follows:
 Sec. 501.116.  CANCELLATION OF DISCHARGED LIEN. The
 department may cancel a discharged lien that has been recorded on a
 [certificate of] title for 10 [six] years or more if the recorded
 lienholder:
 (1)  does not exist; or
 (2)  cannot be located for the owner to obtain a release
 of the lien.
 SECTION 56.  Sections 501.134(a), (b), (c), (d), and (g),
 Transportation Code, are amended to read as follows:
 (a)  If a printed [certificate of] title is lost or
 destroyed, the owner or lienholder disclosed on the title
 [certificate] may obtain, in the manner provided by this section
 and department rule, a certified copy of the lost or destroyed
 [certificate of] title directly from the department by applying in
 [on] a manner [form] prescribed by the department and paying a fee
 of $2. A fee collected under this subsection shall be deposited to
 the credit of the state highway fund and may be spent only as
 provided by Section 501.138.
 (b)  If a lien is disclosed on a [certificate of] title, the
 department may issue a certified copy of the original [certificate
 of] title only to the first lienholder or the lienholder's verified
 agent.
 (c)  The department must plainly mark "certified copy" on the
 face of a certified copy issued under this section [, and each
 subsequent certificate issued for the motor vehicle until the
 vehicle is transferred]. A subsequent purchaser or lienholder of
 the vehicle only acquires the rights, title, or interest in the
 vehicle held by the holder of the certified copy.
 (d)  A purchaser or lienholder of a motor vehicle having a
 certified copy issued under this section may at the time of the
 purchase or establishment of the lien require that the seller or
 owner indemnify the purchaser or lienholder and all subsequent
 purchasers of the vehicle against any loss the person may suffer
 because of a claim presented on the original [certificate of]
 title.
 (g)  The department may issue a certified copy of a
 [certificate of] title [before the fourth business day after the
 date application is made] only if the applicant:
 (1)  is the registered owner of the vehicle, the holder
 of a recorded lien against the vehicle, or a verified agent of the
 owner or lienholder; and
 (2)  submits personal identification as required by
 department rule[, including a photograph, issued by an agency of
 this state or the United States].
 SECTION 57.  Section 501.135(a), Transportation Code, is
 amended to read as follows:
 (a)  The department shall:
 (1)  make a record of each report to the department that
 a motor vehicle registered in this state has been stolen or
 concealed in violation of Section 32.33, Penal Code; and
 (2)  note the fact of the report in the department's
 records [of the vehicle's certificate of title].
 SECTION 58.  Sections 501.138(a), (b), and (b-1),
 Transportation Code, are amended to read as follows:
 (a)  An applicant for a [certificate of] title, other than
 the state or a political subdivision of the state, must pay [the
 county assessor-collector] a fee of:
 (1)  $33 if the applicant's residence is a county
 located within a nonattainment area as defined under Section 107(d)
 of the federal Clean Air Act (42 U.S.C. Section 7407), as amended,
 or is an affected county, as defined by Section 386.001, Health and
 Safety Code; or
 (2)  $28 if the applicant's residence is any other
 county.
 (b)  The fees [county assessor-collector] shall be
 distributed as follows [send]:
 (1)  $5 of the fee to the county treasurer for deposit
 in the officers' salary fund;
 (2)  $8 of the fee to the department:
 (A)  together with the application within the time
 prescribed by Section 501.023; or
 (B)  if the fee is deposited in an
 interest-bearing account or certificate in the county depository or
 invested in an investment authorized by Subchapter A, Chapter 2256,
 Government Code, not later than the 35th day after the date on which
 the fee is received; and
 (3)  the following amount to the comptroller at the
 time and in the manner prescribed by the comptroller:
 (A)  $20 of the fee if the applicant's residence
 is a county located within a nonattainment area as defined under
 Section 107(d) of the federal Clean Air Act (42 U.S.C. Section
 7407), as amended, or is an affected county, as defined by Section
 386.001, Health and Safety Code; or
 (B)  $15 of the fee if the applicant's residence
 is any other county.
 (b-1)  Fees collected under Subsection (b) to be sent to the
 comptroller shall be deposited [as follows:
 [(1)     before September 1, 2008, to the credit of the
 Texas emissions reduction plan fund; and
 [(2)  on or after September 1, 2008,] to the credit of
 the Texas Mobility Fund, except that $5 of each fee imposed under
 Subsection (a)(1) and deposited on or after September 1, 2008, and
 before September 1, 2015, shall be deposited to the credit of the
 Texas emissions reduction plan fund.
 SECTION 59.  Section 520.031, Transportation Code, as
 amended by Chapters 836 (H.B. 1743) and 1423 (H.B. 2409), Acts of
 the 76th Legislature, Regular Session, 1999, is transferred to
 Subchapter H, Chapter 501, Transportation Code, redesignated as
 Section 501.145, Transportation Code, and reenacted and amended to
 read as follows:
 Sec. 501.145 [520.031].  FILING BY PURCHASER [TRANSFEREE];
 APPLICATION FOR TRANSFER OF TITLE [AND REGISTRATION].  (a)  Not
 later than the later of the 30th [20th working] day after the date
 of assignment on [receiving] the documents or the date provided by
 Section 152.069, Tax Code [under Section 520.022 or 520.0225], the
 purchaser [transferee] of the used motor vehicle shall file with
 the county assessor-collector:
 (1)  [the license receipt and] the certificate of title
 or other evidence of title; or
 (2)  if appropriate, a document described by Section
 502.457 [520.0225(b)(1) or (2)] and the [certificate of] title or
 other evidence of ownership [title].
 (b)  The filing under Subsection (a) is an application for
 transfer of title as required under this chapter [Chapter 501] and
 [, if the license receipt is filed,] an application for transfer of
 the registration of the motor vehicle.
 (c)  [In this section, "working day" means any day other than
 a Saturday, a Sunday, or a holiday on which county offices are
 closed.
 [(d)]  Notwithstanding Subsection (a), if the purchaser
 [transferee] is a member of the armed forces of the United States, a
 member of the Texas National Guard or of the National Guard of
 another state serving on active duty under an order of the president
 of the United States, or a member of a reserve component of the
 armed forces of the United States serving on active duty under an
 order of the president of the United States, the documents
 described by Subsection (a) must be filed with the county
 assessor-collector not later than the 60th [working] day after the
 date of assignment of ownership [their receipt by the transferee].
 SECTION 60.  Section 520.032, Transportation Code, is
 transferred to Subchapter H, Chapter 501, Transportation Code,
 redesignated as Section 501.146, Transportation Code, and amended
 to read as follows:
 Sec. 501.146 [520.032].  TITLE TRANSFER [FEE]; LATE FEE.
 (a)  [The transferee of a used motor vehicle shall pay, in addition
 to any fee required under Chapter 501 for the transfer of title, a
 transfer fee of $2.50 for the transfer of the registration of the
 motor vehicle.
 [(b)]  If the [transferee does not file the] application for
 the transfer of title is not filed during the period provided by
 Section 501.145, the [520.031, the transferee is liable for a] late
 fee is to be paid to the county assessor-collector when the
 application is filed.  If the seller [transferee] holds a general
 distinguishing number issued under Chapter 503 of this code or
 Chapter 2301, Occupations Code, the seller is liable for the late
 fee in the amount of [the late fee is] $10.  If the seller
 [transferee] does not hold a general distinguishing number, subject
 to Subsection (b) [(b-1)] the applicant's [amount of the] late fee
 is $25.
 (b) [(b-1)]  If the application is filed after the 60th [31st
 working] day after the date the purchaser was assigned ownership of
 [transferee received] the documents under Section 501.0721
 [520.022], the late fee imposed under Subsection (a) [(b)] accrues
 an additional penalty in the amount of $25 for each subsequent
 30-day period, or portion of a 30-day period, in which the
 application is not filed.
 (c)  [The county assessor-collector and the surety on the
 county assessor-collector's bond are liable for the late fee if the
 county assessor-collector does not collect the late fee.
 [(d)]  Subsections (a) and (b) [and (b-1)] do not apply if
 the motor vehicle is eligible to be issued:
 (1)  classic vehicle license plates under Section
 504.501; or
 (2)  antique vehicle license plates under Section
 504.502.
 SECTION 61.  Section 520.023, Transportation Code, is
 transferred to Subchapter H, Chapter 501, Transportation Code,
 redesignated as Section 501.147, Transportation Code, and amended
 to read as follows:
 Sec. 501.147 [520.023].  [POWERS AND DUTIES OF DEPARTMENT ON
 TRANSFER OF USED] VEHICLE TRANSFER NOTIFICATION. (a)  On receipt of
 a written notice of transfer from the seller [transferor] of a motor
 vehicle, the department shall indicate the transfer on the motor
 vehicle records maintained by the department.  As an alternative to
 a written notice of transfer, the department shall establish
 procedures that permit the seller [transferor] of a motor vehicle
 to electronically submit a notice of transfer to the department
 through the department's Internet website.  A notice of transfer
 provided through the department's Internet website is not required
 to bear the signature of the seller [transferor] or include the date
 of signing.
 (b)  [The department may design the written notice of
 transfer to be part of the certificate of title for the vehicle.]
 The notice of transfer [form] shall be provided by the department
 and must include a place for the seller [transferor] to state:
 (1)  a complete description of the vehicle as
 prescribed by the department [identification number of the
 vehicle];
 (2)  [the number of the license plate issued to the
 vehicle, if any;
 [(3)]  the full name and address of the seller
 [transferor];
 (3) [(4)]  the full name and address of the purchaser
 [transferee];
 (4) [(5)]  the date the seller [transferor] delivered
 possession of the vehicle to the purchaser [transferee];
 (5) [(6)]  the signature of the seller [transferor];
 and
 (6) [(7)]  the date the seller [transferor] signed the
 form.
 (c)  This subsection applies only if the department receives
 notice under Subsection (a) before the 30th day after the date the
 seller [transferor] delivered possession of the vehicle to the
 purchaser or in accordance with Section 152.069, Tax Code
 [transferee].  After the date of the transfer of the vehicle shown
 on the records of the department, the purchaser [transferee] of the
 vehicle shown on the records is rebuttably presumed to be:
 (1)  the owner of the vehicle; and
 (2)  subject to civil and criminal liability arising
 out of the use, operation, or abandonment of the vehicle, to the
 extent that ownership of the vehicle subjects the owner of the
 vehicle to criminal or civil liability under another provision of
 law.
 (d)  The department may adopt[:
 [(1)]  rules to implement this section [; and
 [(2)     a fee for filing a notice of transfer under this
 section in an amount not to exceed the lesser of the actual cost to
 the department of implementing this section or $5].
 (e)  This section does not impose or establish civil or
 criminal liability on the owner of a motor vehicle who transfers
 ownership of the vehicle but does not disclose the transfer to the
 department.
 (f)  [This section does not require the department to issue a
 certificate of title to a person shown on a notice of transfer as
 the transferee of a motor vehicle.] The department may not issue a
 [certificate of] title or register [for] the vehicle until the
 purchaser [transferee] applies for a title to the county
 assessor-collector as provided by this chapter [Chapter 501].
 (g)  A transferor who files the appropriate form with the
 department as provided by, and in accordance with, this section,
 whether that form is a part of a [certificate of] title or a form
 otherwise promulgated by the department to comply with the terms of
 this section, has no vicarious civil or criminal liability arising
 out of the use, operation, or abandonment of the vehicle by another
 person.  Proof by the transferor that the transferor filed a form
 under this section is a complete defense to an action brought
 against the transferor for an act or omission, civil or criminal,
 arising out of the use, operation, or abandonment of the vehicle by
 another person after the transferor filed the form.  A copy of the
 form filed under this section is proof of the filing of the form.
 SECTION 62.  Section 520.033, Transportation Code, is
 transferred to Subchapter H, Chapter 501, Transportation Code,
 redesignated as Section 501.148, Transportation Code, and amended
 to read as follows:
 Sec. 501.148 [520.033].  ALLOCATION OF FEES. (a)  The
 county assessor-collector may retain as commission for services
 provided under this subchapter [half of each transfer fee
 collected,] half of each late fee[, and half of each additional
 penalty collected under Section 520.032].
 (b)  The county assessor-collector shall report and remit
 the balance of the fees collected to the department on Monday of
 each week as other [registration] fees are required to be reported
 and remitted.
 (c)  Of each late fee collected from a person who does not
 hold a general distinguishing number by [that] the department
 [receives] under Subsection (b), $10 may be used only to fund a
 statewide public awareness campaign designed to inform and educate
 the public about the provisions of this chapter.
 SECTION 63.  Section 501.152(b), Transportation Code, is
 amended to read as follows:
 (b)  It is not a violation of this section for the beneficial
 owner of a vehicle to sell or offer to sell a vehicle without having
 possession of the [certificate of] title to the vehicle if the sole
 reason he or she does not have possession of the [certificate of]
 title is that the title is in the possession of a lienholder who has
 not complied with the terms of Section 501.115(a) [of this code].
 SECTION 64.  Section 501.153, Transportation Code, is
 amended to read as follows:
 Sec. 501.153.  APPLICATION FOR TITLE FOR STOLEN OR CONCEALED
 VEHICLE. A person commits an offense if the person applies for a
 [certificate of] title for a motor vehicle that the person knows is
 stolen or concealed in violation of Section 32.33, Penal Code.
 SECTION 65.  Section 501.154, Transportation Code, is
 amended to read as follows:
 Sec. 501.154.  ALTERATION OF CERTIFICATE OR RECEIPT. A
 person commits an offense if the person alters a manufacturer's [or
 importer's] certificate, a title receipt, or a [certificate of]
 title.
 SECTION 66.  Section 501.155(a), Transportation Code, is
 amended to read as follows:
 (a)  A person commits an offense if the person knowingly
 provides false or incorrect information or without legal authority
 signs the name of another person on:
 (1)  an application for a [certificate of] title;
 (2)  an application for a certified copy of an original
 [certificate of] title;
 (3)  an assignment of title for a motor vehicle;
 (4)  a discharge of a lien on a title for a motor
 vehicle; or
 (5)  any other document required by the department or
 necessary to the transfer of ownership of a motor vehicle.
 SECTION 67.  The heading to Section 501.158, Transportation
 Code, is amended to read as follows:
 Sec. 501.158.  SEIZURE OF STOLEN VEHICLE OR VEHICLE WITH
 ALTERED VEHICLE IDENTIFICATION [SERIAL] NUMBER.
 SECTION 68.  Section 520.035, Transportation Code, is
 transferred to Subchapter H, Chapter 501, Transportation Code,
 redesignated as Section 501.161, Transportation Code, and amended
 to read as follows:
 Sec. 501.161 [520.035].  EXECUTION OF TRANSFER DOCUMENTS;
 PENALTY. (a)  A person who transfers a motor vehicle in this state
 shall complete [execute] in full and date as of the date of the
 transfer all documents relating to the transfer of registration or
 [certificate of] title. A person who transfers a vehicle commits an
 offense if the person fails to execute the documents in full.
 (b)  A person commits an offense if the person:
 (1)  accepts a document described by Subsection (a)
 that does not contain all of the required information; or
 (2)  alters or mutilates such a document.
 (c)  An offense under this section is a misdemeanor
 punishable by a fine of not less than $50 and not more than $200.
 SECTION 69.  Subchapter H, Chapter 501, Transportation Code,
 is amended by adding Sections 501.162 and 501.163 to read as
 follows:
 Sec. 501.162. MOTOR NUMBER REQUIRED FOR REGISTRATION;
 PENALTY. A person commits an offense if the person violates Section
 501.0331. An offense under this section is a misdemeanor
 punishable by a fine of not less than $50 and not more than $100.
 Sec. 501.163.  APPLICATION FOR MOTOR NUMBER RECORD; PENALTY.
 A person who fails to comply with Section 501.0332 commits an
 offense. An offense under this section is a misdemeanor punishable
 by a fine of not less than $10 and not more than $100.
 SECTION 70.  Chapter 501, Transportation Code, is amended by
 adding Subchapter I to read as follows:
 SUBCHAPTER I. ELECTRONIC TITLING SYSTEM
 Sec. 501.171.  APPLICATION OF SUBCHAPTER. This subchapter
 applies only if the department implements a titling system under
 Section 501.173.
 Sec. 501.172.  DEFINITIONS. In this subchapter:
 (1)  "Document" means information that is inscribed on
 a tangible medium or that is stored in an electronic or other medium
 and is retrievable in perceivable form.
 (2)  "Electronic" means relating to technology having
 electrical, digital, magnetic, wireless, optical, electromagnetic,
 or similar capabilities.
 (3)  "Electronic document" means a document that is in
 an electronic form.
 (4)  "Electronic signature" means an electronic sound,
 symbol, or process attached to or logically associated with a
 document and executed or adopted by a person with the intent to sign
 the document.
 (5)  "Paper document" means a document that is in
 printed form.
 Sec. 501.173.  ELECTRONIC TITLING SYSTEM. (a) The board by
 rule may implement an electronic titling system.
 (b)  A record of title maintained electronically by the
 department in the titling system is the official record of vehicle
 ownership unless the owner requests that the department issue a
 printed title.
 Sec. 501.174.  VALIDITY OF ELECTRONIC DOCUMENTS. (a)  If
 this chapter requires that a document be an original, be on paper or
 another tangible medium, or be in writing, the requirement is met by
 an electronic document that complies with this subchapter.
 (b)  If a law requires that a document be signed, the
 requirement is satisfied by an electronic signature.
 (c)  A requirement that a document or a signature associated
 with a document be notarized, acknowledged, verified, witnessed, or
 made under oath is satisfied if the electronic signature of the
 person authorized to perform that act, and all other information
 required to be included, is attached to or logically associated
 with the document or signature. A physical or electronic image of a
 stamp, impression, or seal is not required to accompany an
 electronic signature.
 Sec. 501.175.  RECORDING OF DOCUMENTS. (a) Under the
 titling system, the department may:
 (1)  receive, index, store, archive, and transmit
 electronic documents;
 (2)  provide for access to, and for search and
 retrieval of, documents and information by electronic means; and
 (3)  convert into electronic form:
 (A)  paper documents that it accepts for the
 titling of a motor vehicle; and
 (B)  information recorded and documents that were
 accepted for the titling of a motor vehicle before the titling
 system was implemented.
 (b)  The department shall continue to accept paper documents
 after the titling system is implemented.
 Sec. 501.176.  PAYMENT OF FEES BY ELECTRONIC FUNDS TRANSFER
 OR CREDIT CARD. (a) The department may accept payment by
 electronic funds transfer, credit card, or debit card of any title
 or registration fee that the department is required or authorized
 to collect under this chapter.
 (b)  The department may collect a fee for processing a title
 or registration payment by electronic funds transfer, credit card,
 or debit card. The amount of the fee must be reasonably related to
 the expense incurred by the department in processing the payment by
 electronic funds transfer, credit card, or debit card and may not be
 more than five percent of the amount of the fee being paid.
 (c)  In addition to the fee authorized by Subsection (b), the
 department may collect from a person making payment by electronic
 funds transfer, credit card, or debit card an amount equal to the
 amount of any transaction fee charged to the department by a vendor
 providing services in connection with payments made by electronic
 funds transfer, credit card, or debit card. The limitation
 prescribed by Subsection (b) on the amount of a fee does not apply
 to a fee collected under this subsection.
 Sec. 501.177.  SERVICE CHARGE. If, for any reason, the
 payment of a fee under this chapter by electronic funds transfer,
 credit card, or debit card is not honored by the funding
 institution, or by the electronic funds transfer, credit card, or
 debit card company on which the funds are drawn, the department may
 collect from the person who owes the fee being collected a service
 charge that is for the collection of that original amount and is in
 addition to the original fee. The amount of the service charge must
 be reasonably related to the expense incurred by the department in
 collecting the original amount.
 Sec. 501.178.  DISPOSITION OF FEES. All fees collected
 under this subchapter shall be deposited to the credit of the state
 highway fund.
 Sec. 501.179.  RELATION TO ELECTRONIC SIGNATURES IN GLOBAL
 AND NATIONAL COMMERCE ACT. This subchapter modifies, limits, and
 supersedes the federal Electronic Signatures in Global and National
 Commerce Act (15 U.S.C. Section 7001 et seq.) but does not modify,
 limit, or supersede Section 101(c) of that Act (15 U.S.C. Section
 7001(c)) or authorize electronic delivery of any of the notices
 described in Section 103(b) of that Act (15 U.S.C. Section
 7003(b)).
 SECTION 71.  Section 502.001, Transportation Code, is
 amended to read as follows:
 Sec. 502.001.  DEFINITIONS. In this chapter:
 (1)  "All-terrain vehicle" means a motor vehicle that
 is:
 (A)  equipped with a saddle for the use of:
 (i)  the rider; and
 (ii)  a passenger, if the motor vehicle is
 designed by the manufacturer to transport a passenger;
 (B)  designed to propel itself with three or more
 tires in contact with the ground;
 (C)  designed by the manufacturer for off-highway
 use; and
 (D)  not designed by the manufacturer primarily
 for farming or lawn care.
 (2)  "Apportioned license plate" means a license plate
 issued in lieu of a truck license plate or combination license plate
 to a motor carrier in this state who proportionally registers a
 vehicle owned or leased by the carrier in one or more other states.
 (3) [(1-a)]  "Board" means the board of the Texas
 Department of Motor Vehicles.
 (4)  "Combination license plate" means a license plate
 issued for a truck or truck-tractor that is used or intended to be
 used in combination with a semitrailer that has a gross weight of
 more than 6,000 pounds.
 (5)  "Combined gross weight" means the empty weight of
 the truck-tractor or commercial motor vehicle combined with the
 empty weight of the heaviest semitrailer used or to be used in
 combination with the truck-tractor or commercial motor vehicle plus
 the heaviest net load to be carried on the combination during the
 registration year.
 (6) [(1-a)]  "Commercial fleet" means a group of at
 least 25 nonapportioned motor vehicles, semitrailers, or trailers
 owned, operated, or leased by a corporation, limited or general
 partnership, limited liability company, or other business entity
 and used for the business purposes of that entity.
 (7) [(2)]  "Commercial motor vehicle" means a
 commercial motor vehicle as defined by Section 644.001[, other than
 a motorcycle, designed or used primarily to transport property.
 The term includes a passenger car reconstructed and used primarily
 for delivery purposes. The term does not include a passenger car
 used to deliver the United States mail].
 (8)  "Construction machinery" means a vehicle that:
 (A)  is used for construction;
 (B)  is built from the ground up;
 (C)  is not mounted or affixed to another vehicle
 such as a trailer;
 (D)  was originally and permanently designed as
 machinery;
 (E)  was not in any way originally designed to
 transport persons or property; and
 (F)  does not carry a load, including fuel.
 (9)  "Credit card" has the meaning assigned by Section
 501.002.
 (10)  "Debit card" has the meaning assigned by Section
 501.002.
 (11) [(3)]  "Department" means the Texas Department of
 Motor Vehicles.
 (12)  "Electric bicycle" has the meaning assigned by
 Section 541.201.
 (13)  "Electric personal assistive mobility device"
 has the meaning assigned by Section 551.201.
 (14)  "Empty weight" means the unladen weight of a
 truck-tractor or commercial motor vehicle and semitrailer
 combination fully equipped, as certified by a public weigher or
 license and weight inspector of the Department of Public Safety.
 (15) [(4)]  "Farm semitrailer" or "farm trailer" means
 a vehicle [semitrailer] designed and used primarily as a farm
 vehicle.
 (16) [(5)]  "Farm tractor" has the meaning assigned by
 Section 541.201 [means a motor vehicle designed and used primarily
 as a farm implement for drawing other implements of husbandry].
 (17)  "Forestry vehicle" [(6) "Farm trailer"] means a
 vehicle [trailer] designed and used exclusively for transporting
 forest products in their natural state, including logs, debarked
 logs, untreated ties, stave bolts, plywood bolts, pulpwood billets,
 wood chips, stumps, sawdust, moss, bark, and wood shavings, and
 property used in production of those products [primarily as a farm
 vehicle].
 (18) [(7)]  "Golf cart" means a motor vehicle designed
 by the manufacturer primarily for use [transporting persons] on a
 golf course.
 (19)  "Gross vehicle weight" has the meaning assigned
 by Section 541.401.
 (20) [(8)]  "Implements of husbandry" has the meaning
 assigned by Section 541.201 [means farm implements, machinery, and
 tools as used in tilling the soil, including self-propelled
 machinery specifically designed or adapted for applying plant food
 materials or agricultural chemicals but not specifically designed
 or adapted for the sole purpose of transporting the materials or
 chemicals. The term does not include a passenger car or truck].
 (21) [(9)]  "Light truck" has the meaning assigned by
 Section 541.201 [means a commercial motor vehicle that has a
 manufacturer's rated carrying capacity of one ton or less].
 (22) [(10)]  "Moped" has the meaning assigned by
 Section 541.201.
 (23) [(11)]  "Motor bus" includes every vehicle used to
 transport persons on the public highways for compensation, other
 than:
 (A)  a vehicle operated by muscular power; or
 (B)  a municipal bus.
 (24) [(12)]  "Motorcycle" has the meaning assigned by
 Section 521.001 or 541.201, as applicable [means a motor vehicle
 designed to propel itself with not more than three wheels in contact
 with the ground. The term does not include a tractor].
 (25) [(13)]  "Motor vehicle" means a vehicle that is
 self-propelled.
 (26)  "Motorized mobility device" has the meaning
 assigned by Section 542.009.
 (27) [(14)]  "Municipal bus" includes every vehicle,
 other than a passenger car, used to transport persons for
 compensation exclusively within the limits of a municipality or a
 suburban addition to the municipality.
 (28)  "Net carrying capacity" means the heaviest net
 load that is able to be carried on a vehicle, but not less than the
 manufacturer's rated carrying capacity.
 (29)  "Oil well servicing, cleanout, or drilling
 machinery":
 (A)  has the meaning assigned by Section 623.149;
 or
 (B)  means a mobile crane:
 (i)  that is an unladen, self-propelled
 vehicle constructed as a machine and used solely to raise, shift, or
 lower heavy weights by means of a projecting, swinging mast with an
 engine for power on a chassis permanently constructed or assembled
 for that purpose; and
 (ii)  for which the owner has secured a
 permit from the department under Section 623.142.
 (30) [(15)]  "Operate temporarily on the highways"
 means to travel between:
 (A)  different farms;
 (B)  a place of supply or storage and a farm; or
 (C)  an owner's farm and the place at which the
 owner's farm produce is prepared for market or is marketed.
 (31) [(16)]  "Owner" means a person who:
 (A)  holds the legal title of a vehicle;
 (B)  has the legal right of possession of a
 vehicle; or
 (C)  has the legal right of control of a vehicle.
 (32) [(17)]  "Passenger car" has the meaning assigned
 by Section 541.201 [means a motor vehicle, other than a motorcycle,
 golf cart, light truck, or bus, designed or used primarily for the
 transportation of persons].
 (33)  "Power sweeper" means an implement, with or
 without motive power, designed for the removal by a broom, vacuum,
 or regenerative air system of debris, dirt, gravel, litter, or sand
 from asphaltic concrete or cement concrete surfaces, including
 surfaces of parking lots, roads, streets, highways, and warehouse
 floors. The term includes a vehicle on which the implement is
 permanently mounted if the vehicle is used only as a power sweeper.
 (34)  "Private bus" means a bus that:
 (A)  is not operated for hire; and
 (B)  is not a municipal bus or a motor bus.
 (35) [(18)]  "Public highway" includes a road, street,
 way, thoroughfare, or bridge:
 (A)  that is in this state;
 (B)  that is for the use of vehicles;
 (C)  that is not privately owned or controlled;
 and
 (D)  over which the state has legislative
 jurisdiction under its police power.
 (36) [(19)]  "Public property" means property owned or
 leased by this state or a political subdivision of this state.
 (37)  [(19-a)]  "Recreational off-highway vehicle"
 means a motor vehicle that is:
 (A)  equipped with a non-straddle seat for the use
 of:
 (i)  the rider; and
 (ii)  a passenger, if the vehicle is
 designed by the manufacturer to transport a passenger;
 (B)  designed to propel itself with four or more
 tires in contact with the ground;
 (C)  designed by the manufacturer for off-highway
 use by the operator only; and
 (D)  not designed by the manufacturer primarily
 for farming or lawn care.
 (38) [(20)]  "Road tractor" means a vehicle designed
 for the purpose of mowing the right-of-way of a public highway or a
 motor vehicle designed or used for drawing another vehicle or a load
 and not constructed to carry:
 (A)  an independent load; or
 (B)  a part of the weight of the vehicle and load
 to be drawn.
 (39) [(21)]  "Semitrailer" means a vehicle designed or
 used with a motor vehicle so that part of the weight of the vehicle
 and its load rests on or is carried by another vehicle.
 (40)  "Token trailer" means a semitrailer that:
 (A)  has a gross weight of more than 6,000 pounds;
 and
 (B)  is operated in combination with a truck or a
 truck-tractor that has been issued:
 (i)  an apportioned license plate;
 (ii)  a combination license plate; or
 (iii)  a forestry vehicle license plate.
 (41)  "Tow truck" means a motor vehicle adapted or used
 to tow, winch, or otherwise move another motor vehicle.
 (42) [(22)]  "Trailer" means a vehicle that:
 (A)  is designed or used to carry a load wholly on
 its own structure; and
 (B)  is drawn or designed to be drawn by a motor
 vehicle.
 (43)  "Travel trailer" has the meaning assigned by
 Section 501.002.
 (44) [(23)]  "Truck-tractor" means a motor vehicle:
 (A)  designed and used primarily for drawing
 another vehicle; and
 (B)  not constructed to carry a load other than a
 part of the weight of the vehicle and load to be drawn.
 (45) [(24)]  "Vehicle" means a device in or by which a
 person or property is or may be transported or drawn on a public
 highway, other than a device used exclusively on stationary rails
 or tracks.
 SECTION 72.  Section 502.0021, Transportation Code, is
 amended to read as follows:
 Sec. 502.0021.  RULES AND FORMS.  (a)  The department may
 adopt rules to administer this chapter.
 (b)  The department shall post forms on the Internet and[:
 [(1)     prescribe forms determined by the department to
 be necessary for the administration of this chapter; and
 [(2)]  provide each county assessor-collector with a
 sufficient [an adequate] supply of any [each form] necessary forms
 on request [for the performance of a duty under this chapter by the
 assessor-collector].
 SECTION 73.  Section 502.052, Transportation Code, is
 transferred to Subchapter A, Chapter 502, Transportation Code,
 redesignated as Section 502.00211, Transportation Code, and
 amended to read as follows:
 Sec. 502.00211 [502.052].  DESIGN OF [LICENSE PLATES AND]
 REGISTRATION INSIGNIA[; REFLECTORIZED MATERIAL]. [(a)] The
 department shall prepare the designs and specifications [of license
 plates and devices selected by the board] to be used as the
 registration insignia.
 [(b)     The department shall design each license plate to
 include a design at least one-half inch wide that represents in
 silhouette the shape of Texas and that appears between letters and
 numerals. The department may omit the silhouette of Texas from
 specially designed license plates.
 [(c)     To promote highway safety, each license plate shall be
 made with a reflectorized material that provides effective and
 dependable brightness for the period for which the plate is
 issued.     The purchase of reflectorized material shall be submitted
 to the comptroller for approval.]
 SECTION 74.  The heading to Section 502.0023, Transportation
 Code, is amended to read as follows:
 Sec. 502.0023.  EXTENDED REGISTRATION OF COMMERCIAL FLEET
 [MOTOR] VEHICLES.
 SECTION 75.  Section 502.0023, Transportation Code, is
 amended by amending Subsections (a) and (c) and adding Subsection
 (i) to read as follows:
 (a)  Notwithstanding Section 502.044(c) [502.158(c)], the
 department shall develop and implement a system of registration to
 allow an owner of a commercial fleet to register the motor vehicles,
 semitrailers, and trailers in the commercial fleet for an extended
 registration period of not less than one year or more than eight
 years.  The owner may select the number of years for registration
 under this section within that range and register the commercial
 fleet for that period.  Payment for all registration fees for the
 entire registration period selected is due at the time of
 registration.
 (c)  In addition to the registration fees prescribed by this
 chapter [Subchapter D], an owner registering a commercial fleet
 under this section shall pay:
 (1)  an annual commercial fleet registration fee of $10
 per motor vehicle, semitrailer, or trailer in the fleet; and
 (2)  except as provided by Subsection (e), a one-time
 license plate manufacturing fee of $1.50 for each fleet motor
 vehicle, semitrailer, or trailer license plate.
 (i)  The department may provide for credits for fleet
 registration.
 SECTION 76.  Section 502.185, Transportation Code, is
 transferred to Subchapter A, Chapter 502, Transportation Code,
 redesignated as Section 502.010, Transportation Code, and amended
 to read as follows:
 Sec. 502.010 [502.185].  COUNTY SCOFFLAW [REFUSAL TO
 REGISTER VEHICLE IN CERTAIN COUNTIES]. (a)  A county
 assessor-collector or the department may refuse to register a motor
 vehicle if the assessor-collector or the department receives
 information that the owner of the vehicle owes the county money for
 a fine, fee, or tax that is past due.
 (b)  A county may contract with the department to provide
 information to the department necessary to make a determination
 under Subsection (a).
 (c)  A county that has a contract under Subsection (b) shall
 notify the department regarding a person for whom the county
 assessor-collector or the department has refused to register a
 motor vehicle on:
 (1)  the person's payment or other means of discharge of
 the past due fine, fee, or tax; or
 (2)  perfection of an appeal of the case contesting
 payment of the fine, fee, or tax.
 (d)  After notice is received under Subsection (c), the
 county assessor-collector or the department may not refuse to
 register the motor vehicle under Subsection (a).
 (e)  A contract under Subsection (b) must be entered into in
 accordance with Chapter 791, Government Code, and is subject to the
 ability of the parties to provide or pay for the services required
 under the contract.
 (f)  A county that has a contract under Subsection (b) may
 impose an additional fee to a person paying a fine, fee, or tax to
 the county after it is past due. The additional fee may be used only
 to reimburse the department or the county for its expenses for
 providing services under the contract.
 (g)  In this section:
 (1)  a fine, fee, or tax is considered past due if it is
 unpaid 90 or more days after the date it is due; and
 (2)  registration of a motor vehicle includes renewal
 of the registration of the vehicle.
 (h)  This section does not apply to the registration of a
 motor vehicle under Section 501.0234, unless the vehicle is titled
 and registered in the name of a person who holds a general
 distinguishing number.
 SECTION 77.  The heading to Subchapter B, Chapter 502,
 Transportation Code, is amended to read as follows:
 SUBCHAPTER B. REGISTRATION REQUIREMENTS [STATE ADMINISTRATION]
 SECTION 78.  Section 502.002, Transportation Code, is
 transferred to Subchapter B, Chapter 502, Transportation Code,
 redesignated as Section 502.040, Transportation Code, and amended
 to read as follows:
 Sec. 502.040 [502.002].  REGISTRATION REQUIRED; GENERAL
 RULE. (a) Not more than 30 days after purchasing a vehicle or
 becoming a resident of this state, the [The] owner of a motor
 vehicle, trailer, or semitrailer shall apply for the registration
 of the vehicle for:
 (1)  each registration year in which the vehicle is
 used or to be used on a public highway; and
 (2)  if the vehicle is unregistered for a registration
 year that has begun and that applies to the vehicle and if the
 vehicle is used or to be used on a public highway, the remaining
 portion of that registration year.
 (b)  The application must be accompanied by personal
 identification as determined by department rule and made in a
 manner prescribed by [to] the department:
 (1)  through the county assessor-collector of the
 county in which the owner resides; or
 (2)  if the county in which the owner resides has been
 declared by the governor as a disaster area, through the county
 assessor-collector of a county that is one of the closest
 unaffected counties to a county that asks for assistance and:
 (A)  continues to be declared by the governor as a
 disaster area because the county has been rendered inoperable by
 the disaster; and
 (B)  is inoperable for a protracted period of
 time.
 (c)  A provision of this chapter that conflicts with this
 section prevails over this section to the extent of the conflict.
 (d)  A county assessor-collector, a deputy county
 assessor-collector, or a person acting on behalf of a county
 assessor-collector is not liable to any person for:
 (1)  refusing to register a motor vehicle because of
 the person's failure to submit evidence of residency that complies
 with the department's rules; or
 (2)  registering a motor vehicle under this section.
 SECTION 79.  Section 502.157, Transportation Code, is
 transferred to Subchapter B, Chapter 502, Transportation Code,
 redesignated as Section 502.041, Transportation Code, and amended
 to read as follows:
 Sec. 502.041 [502.157].  INITIAL REGISTRATION.  (a)
 Notwithstanding Section 502.040 [502.002], [when a motor vehicle
 must be registered before an application for a certificate of title
 will be accepted,] the owner of a [the] vehicle may concurrently
 apply for a [certificate of] title and for registration through the
 county assessor-collector of the county in which:
 (1)  the owner resides; or
 (2)  the vehicle is purchased or encumbered.
 (b)  The first time an owner applies for registration of a
 vehicle, the owner may demonstrate compliance with Section
 502.046(a) [502.153(a)] as to the vehicle by showing proof of
 financial responsibility in any manner specified in Section
 502.046(c) [502.153(c)] as to:
 (1)  any vehicle of the owner; or
 (2)  any vehicle used as part of the consideration for
 the purchase of the vehicle the owner applies to register.
 SECTION 80.  Section 502.152, Transportation Code, is
 transferred to Subchapter B, Chapter 502, Transportation Code,
 redesignated as Section 502.042, Transportation Code, and amended
 to read as follows:
 Sec. 502.042 [502.152].  [CERTIFICATE OF] TITLE REQUIRED
 FOR REGISTRATION.  [(a)]  The department may not register or renew
 the registration of a motor vehicle for which a [certificate of]
 title is required under Chapter 501 unless the owner:
 (1)  obtains a [certificate of] title for the vehicle;
 or
 (2)  presents satisfactory evidence that a
 [certificate of] title was previously issued to the owner by the
 department or another jurisdiction.
 [(b)     This section does not apply to an automobile that was
 purchased new before January 1, 1936.]
 SECTION 81.  Section 502.151, Transportation Code, is
 transferred to Subchapter B, Chapter 502, Transportation Code,
 redesignated as Section 502.043, Transportation Code, and amended
 to read as follows:
 Sec. 502.043 [502.151].  APPLICATION FOR REGISTRATION.  (a)
 An application for vehicle registration must:
 (1)  be made in a manner prescribed and include the
 information required [on a form furnished] by the department by
 rule; and
 (2)  contain a [the] full description [name and address
 of the owner] of the vehicle as required by department rule [;
 [(3)  contain a brief description of the vehicle;
 [(4)     contain any other information required by the
 department; and
 [(5)  be signed by the owner].
 (b)  The department shall deny the [For a new motor vehicle,
 the description of the vehicle must include the vehicle's:
 [(1)  trade name;
 [(2)  year model;
 [(3)  style and type of body;
 [(4)  weight, if the vehicle is a passenger car;
 [(5)     net carrying capacity and gross weight, if the
 vehicle is a commercial motor vehicle;
 [(6)  vehicle identification number; and
 [(7)     date of sale by the manufacturer or dealer to the
 applicant.
 [(c)  An applicant for] registration of a commercial motor
 vehicle, truck-tractor, trailer, or semitrailer if the applicant:
 (1)  has a business operated, managed, or otherwise
 controlled or affiliated with a person who is ineligible for
 registration or whose privilege to operate has been suspended,
 including the applicant entity, a relative, family member,
 corporate officer, or shareholder;
 (2)  has a vehicle that has been prohibited from
 operating by the Federal Motor Carrier Safety Administration for
 safety-related reasons;
 (3)  is a carrier whose business is operated, managed,
 or otherwise controlled or affiliated with a person who is
 ineligible for registration, including the owner, a relative, a
 family member, a corporate officer, or a shareholder; or
 (4)  fails to [must] deliver to the county
 assessor-collector proof of [an affidavit showing] the weight of
 the vehicle, the maximum load to be carried on the vehicle, and the
 gross weight for which the vehicle is to be registered. [The
 assessor-collector shall keep the affidavit on file.]
 (c) [(d)]  In lieu of filing an application during a year as
 provided by Subsection (a), the owner of a vehicle registered in any
 state for that year or the preceding year may present the
 registration receipt and transfer receipt, if any. The county
 assessor-collector shall accept the receipt as an application for
 renewal of the registration if the receipt indicates the applicant
 owns the vehicle. This section allows issuance for registration
 purposes only but does not authorize the department to issue a
 title.
 (d)  The department may require an applicant for
 registration to provide current personal identification as
 determined by department rule. Any identification number required
 by the department under this subsection may be entered into the
 department's electronic titling system but may not be printed on
 the title.
 [(e)     If an owner or claimed owner has lost or misplaced the
 registration receipt or transfer receipt for the vehicle, the
 county assessor-collector shall register the vehicle on the
 person's furnishing to the assessor-collector satisfactory
 evidence, by affidavit or otherwise, that the person owns the
 vehicle.
 [(f)     A county assessor-collector shall date each
 registration receipt issued for a vehicle with the date on which the
 application for registration is made.]
 SECTION 82.  Section 502.158, Transportation Code, is
 transferred to Subchapter B, Chapter 502, Transportation Code,
 redesignated as Section 502.044, Transportation Code, and amended
 to read as follows:
 Sec. 502.044 [502.158].  REGISTRATION PERIOD [YEAR].  (a)
 The department shall designate a vehicle registration year of 12
 consecutive months to begin on the first day of a calendar month and
 end on the last day of the 12th calendar month.
 (b)  The department shall designate vehicle registration
 years so as to distribute the work of the department and the county
 assessor-collectors as uniformly as possible throughout the year.
 The department may establish separate registration years for any
 vehicle or classification of vehicle and may adopt rules to
 administer the year-round registration system.
 (c)  The department may designate a registration period of
 less than 12 months to be [. The registration fee for a
 registration period of less than 12 months is] computed at a rate of
 one-twelfth the annual registration fee multiplied by the number of
 months in the registration period. The board by rule may allow
 payment of [department may not designate a registration period of
 more than 12 months, but:
 [(1)     with the consent of the department, an owner may
 pay] registration fees for a designated period not to exceed the
 amount of time determined by department rule [of more than 12
 months; and
 [(2)     an owner of a vehicle may pay registration fees
 for a designated period of 12, 24, or 36 months.
 [(d)     An application for registration shall be made during
 the two months preceding the date on which the registration
 expires.
 [(e)     The fee to be paid for renewing a registration is the
 fee that will be in effect on the first day of the vehicle
 registration year].
 (d) [(g)]  The department shall issue [the applicant for
 registration who pays registration fees for a designated period of
 24 or 36 months] a registration receipt and registration insignia
 that are valid until the expiration of the designated period.
 SECTION 83.  Section 502.176, Transportation Code, is
 transferred to Subchapter B, Chapter 502, Transportation Code,
 redesignated as Section 502.045, Transportation Code, and amended
 to read as follows:
 Sec. 502.045 [502.176].  DELINQUENT REGISTRATION.  (a)  A
 registration fee [prescribed by this chapter] for a vehicle becomes
 delinquent immediately if the vehicle is used on a public highway
 without the fee having been paid in accordance with this chapter.
 (b)  An [A county assessor-collector that determines that
 an] applicant for registration who provides [for which payment of
 the registration fee is delinquent has provided] evidence
 [acceptable to the assessor-collector sufficient] to establish
 good reason for delinquent registration and who [that the
 application] complies with the other requirements for registration
 under this chapter may [shall] register the vehicle for a 12-month
 period that ends on the last day of the 11th month after the month in
 which the registration occurs under this subsection. [The
 registration period for vehicles registered in accordance with
 Sections 502.164, 502.167, 502.203, 502.255, 502.267, 502.277,
 502.278, 502.293, as added by Chapter 1222, Acts of the 75th
 Legislature, Regular Session, 1997, and 502.295, as added by
 Chapter 625, Acts of the 75th Legislature, Regular Session, 1997,
 will end on the annual registration date, and the registration fees
 will be prorated.]
 (c)  An [A county assessor-collector that determines that
 an] applicant for registration who [that] is delinquent and has not
 provided evidence acceptable [to the assessor-collector
 sufficient] to establish good reason for delinquent registration
 but who [that the application] complies with the other requirements
 for registration under this chapter shall register the vehicle for
 a 12-month period without changing the initial month of
 registration.
 (d)  A person who has been arrested or received a citation
 for a violation of Section 502.472 [502.402] may register the
 vehicle being operated at the time of the offense [with the county
 assessor-collector] for a 12-month period without change to the
 initial month of registration only if the person:
 (1)  meets the other requirements for registration
 under this chapter; and
 (2)  pays an additional charge equal to 20 percent of
 the prescribed fee.
 (e)  The board by rule [county assessor-collector] shall
 adopt a list of evidentiary items sufficient to establish good
 reason for delinquent registration under Subsection (b) and provide
 for the [forms of] evidence that may be used to establish good
 reason under that subsection. [The list of evidentiary items
 adopted under this section must allow for delinquent registration
 under Subsection (b) because of:
 [(1)  extensive repairs on the vehicle;
 [(2)     the absence of the owner of the vehicle from this
 country;
 [(3)  seasonal use of the vehicle; or
 [(4)     any other reason determined by the
 assessor-collector to be a valid explanation for the delinquent
 registration.]
 (f)  The board [department] by rule shall adopt procedures to
 implement this section in connection with the delinquent
 registration of a vehicle registered directly with the department
 or through other means.
 SECTION 84.  Section 502.153, Transportation Code, is
 transferred to Subchapter B, Chapter 502, Transportation Code,
 redesignated as Section 502.046, Transportation Code, and amended
 to read as follows:
 Sec. 502.046 [502.153].  EVIDENCE OF FINANCIAL
 RESPONSIBILITY. (a)  Evidence [Except as provided by Subsection
 (j), the owner of a motor vehicle, other than a trailer or
 semitrailer, for which evidence] of financial responsibility as
 [is] required by Section 601.051 other than for a trailer or
 semitrailer [or a person who represents the owner for purposes of
 registering a motor vehicle] shall be submitted [submit evidence of
 financial responsibility] with the application for registration
 under Section 502.043 [502.151]. A county assessor-collector may
 not register the motor vehicle unless the owner or the owner's
 representative submits the evidence of financial responsibility.
 (b)  The county assessor-collector shall examine the
 evidence of financial responsibility to determine whether it
 complies with Subsection (c). After examination, [examining] the
 evidence [, the assessor-collector] shall be returned [return the
 evidence] unless it is in the form of a photocopy or an electronic
 submission.
 (c)  In this section, evidence of financial responsibility
 may be:
 (1)  a document listed under Section 601.053(a) or
 verified in compliance with Section 601.452;
 (2)  a liability self-insurance or pool coverage
 document issued by a political subdivision or governmental pool
 under the authority of Chapter 791, Government Code, Chapter 119,
 Local Government Code, or other applicable law in at least the
 minimum amounts required by Chapter 601;
 (3)  a photocopy of a document described by Subdivision
 (1) or (2); or
 (4)  an electronic submission of a document or the
 information contained in a document described by Subdivision (1) or
 (2).
 (d)  A personal automobile policy used as evidence of
 financial responsibility under this section must comply with
 Section 1952.052 et seq. and Sections 2301.051 through 2301.055
 [Article 5.06 or 5.145], Insurance Code.
 (e)  At the time of registration, the county
 assessor-collector shall provide to a person registering a motor
 vehicle a [separate] statement that the motor vehicle [being
 registered] may not be operated in this state unless:
 (1)  liability insurance coverage for the motor vehicle
 in at least the minimum amounts required by law remains in effect to
 insure against potential losses; or
 (2)  the motor vehicle is exempt from the insurance
 requirement because the person has established financial
 responsibility in a manner described by Sections [Section]
 601.051(2)-(5) or is exempt under Section 601.052.
 (f)  A county assessor-collector is not liable to any person
 for refusing to register a motor vehicle to which this section
 applies because of the person's failure to submit evidence of
 financial responsibility that complies with Subsection (c).
 (g)  A county, a county assessor-collector, a deputy county
 assessor-collector, a person acting for or on behalf of a county or
 a county assessor-collector, or a person acting on behalf of an
 owner for purposes of registering a motor vehicle is not liable to
 any person for registering a motor vehicle under this section.
 (h)  This section does not prevent a person from registering
 a motor vehicle by mail or through an electronic submission.
 (i)  To be valid under this section, an electronic submission
 must be in a format that is:
 (1)  submitted by electronic means, including a
 telephone, facsimile machine, or computer;
 (2)  approved by the department; and
 (3)  authorized by the commissioners court for use in
 the county.
 (j)  This section does not apply to a vehicle registered
 pursuant to Section 501.0234.
 SECTION 85.  Section 502.009, Transportation Code, is
 transferred to Subchapter B, Chapter 502, Transportation Code,
 redesignated as Section 502.047, Transportation Code, and amended
 to read as follows:
 Sec. 502.047 [502.009].  MOTOR VEHICLE EMISSIONS INSPECTION
 AND MAINTENANCE REQUIREMENTS. (a)  The Department of Public Safety
 shall ensure compliance with the motor vehicle emissions inspection
 and maintenance program through a vehicle inspection sticker-based
 enforcement system except as provided by this section or Section
 548.3011. Subsections (b)-(e) apply only if the United States
 Environmental Protection Agency determines that the state has not
 demonstrated, as required by 40 C.F.R. Section 51.361, that
 sticker-based enforcement of the program is more effective than
 registration-based enforcement and gives the Texas [Natural
 Resource Conservation] Commission on Environmental Quality or the
 governor written notification that the reregistration-based
 enforcement of the program, as described by those subsections, will
 be required. If Subsections (b)-(e) are made applicable as
 provided by this subsection, the department shall terminate
 reregistration-based enforcement of the program under those
 subsections on the date the United States Environmental Protection
 Agency gives the Texas [Natural Resource Conservation] Commission
 on Environmental Quality or a person the commission designates
 written notification that reregistration-based enforcement is not
 required for the state implementation plan.
 (b)  A [The department may not register a] motor vehicle may
 not be registered if the department receives from the Texas
 [Natural Resource Conservation] Commission on Environmental
 Quality or the Department of Public Safety notification that the
 registered owner of the vehicle has not complied with Subchapter F,
 Chapter 548.
 (c)  A motor vehicle [The county tax assessor-collector] may
 not be registered if the [register a] vehicle was denied
 registration under Subsection (b) unless [the tax
 assessor-collector has] verification is received that the
 registered vehicle owner is in compliance with Subchapter F,
 Chapter 548.
 (d)  The department, the Texas [Natural Resource
 Conservation] Commission on Environmental Quality, and the
 Department of Public Safety shall enter an agreement regarding the
 responsibilities for costs associated with implementing this
 section.
 (e)  A county tax assessor-collector is not liable to any
 person for refusing to register a motor vehicle because of the
 person's failure to provide verification of the person's compliance
 with Subchapter F, Chapter 548.
 SECTION 86.  Section 502.005, Transportation Code, is
 transferred to Subchapter B, Chapter 502, Transportation Code,
 redesignated as Section 502.048, Transportation Code, and amended
 to read as follows:
 Sec. 502.048 [502.005].  REFUSAL TO REGISTER UNSAFE
 VEHICLE. [(a)]  The department may refuse to register a motor
 vehicle and may cancel, suspend, or revoke a registration if the
 department determines that a motor vehicle is unsafe, improperly
 equipped, or otherwise unfit to be operated on a public highway.
 [(b)     The department may refuse to register a motorcycle and
 may suspend or revoke the registration of a motorcycle if the
 department determines that the motorcycle's braking system does not
 comply with Section 547.408.]
 SECTION 87.  Section 502.055(b), Transportation Code, is
 amended to read as follows:
 (b)  The department may require an applicant for
 registration under this chapter to provide the department with
 evidence of:
 (1)  the manufacturer's rated carrying capacity for the
 vehicle; or
 (2)  [the nominal tonnage rating of the vehicle;
 [(3)]  the gross vehicle weight rating [of the vehicle;
 or
 [(4)     any combination of information described in
 Subdivisions (1)-(3)].
 SECTION 88.  Section 502.178, Transportation Code, is
 transferred to Subchapter B, Chapter 502, Transportation Code,
 redesignated as Section 502.057, Transportation Code, and amended
 to read as follows:
 Sec. 502.057  [502.178].  REGISTRATION RECEIPT. [(a)]  The
 department shall issue or require to be issued to the owner of a
 vehicle registered under this chapter a registration receipt
 showing the information required by rule [:
 [(1)  the date of issuance;
 [(2)  the license number assigned to the vehicle;
 [(3)  the name and address of the owner; and
 [(4)     other information as determined by the
 department.
 [(b)     The registration receipt issued for a commercial motor
 vehicle, truck-tractor, trailer, or semitrailer must show the gross
 weight for which the vehicle is registered].
 SECTION 89.  Section 502.179, Transportation Code, is
 transferred to Subchapter B, Chapter 502, Transportation Code,
 redesignated as Section 502.058, Transportation Code, and amended
 to read as follows:
 Sec. 502.058  [502.179].  DUPLICATE REGISTRATION RECEIPT.
 (a)  The owner of a vehicle for which the registration receipt has
 been lost or destroyed may obtain a duplicate receipt from the
 department or the county assessor-collector who issued the original
 receipt by paying a fee of $2.
 (b)  The office issuing a duplicate receipt shall retain the
 fee received [as a fee of office].
 SECTION 90.  Section 502.180, Transportation Code, is
 transferred to Subchapter B, Chapter 502, Transportation Code,
 redesignated as Section 502.059, Transportation Code, and amended
 to read as follows:
 Sec. 502.059  [502.180].  ISSUANCE OF [LICENSE PLATE OR]
 REGISTRATION INSIGNIA. (a)  On payment of the prescribed fee [,
 the department shall issue to] an applicant for motor vehicle
 registration shall be issued a [license plate or set of plates or a
 device that, when attached to the vehicle as prescribed by the
 department, is the] registration insignia [for the period for which
 it was issued].
 (b)  [Subject to Subchapter I, the department shall issue
 only one license plate or set of plates for a vehicle during a
 five-year period.
 [(c)]  On application and payment of the prescribed fee for a
 renewal of the registration of a vehicle through the period set by
 rule [for the first, second, third, or fourth registration year
 after the issuance of a license plate or set of plates for the
 vehicle], the department shall issue a registration insignia for
 the validation of the license plate or plates to be attached as
 provided by Subsection (c) [(d)].
 (c) [(d)]  Except as provided by Subsection (f) [(h)], the
 registration insignia for validation of a license plate shall be
 attached to the inside of the vehicle's windshield, if the vehicle
 has a windshield, within six inches of the place where the motor
 vehicle inspection sticker is required to be placed. If the vehicle
 does not have a windshield, the owner, when applying for
 registration or renewal of registration, shall notify the
 department, and the department shall issue a distinctive device for
 attachment to the rear license plate of the vehicle.
 (d)  Department [(e)     The department shall adopt rules for
 the issuance and use of license plates and registration insignia
 issued under this chapter. The] rules may provide for the use of an
 automated registration process, including:
 (1)  the automated on-site production of registration
 insignia; and
 (2)  automated on-premises and off-premises
 self-service registration.
 (e)  Subsection (c) does [(f)  Subsections (b)-(d) do] not
 apply to:
 (1)  the issuance of specialized license plates as
 designated by the department, including state official license
 plates, exempt plates for governmental entities, and temporary
 registration plates; or
 (2)  the issuance or validation of replacement license
 plates, except as provided by Chapter 504 [Section 502.184].
 (f)  [(g)     The department shall provide a separate and
 distinctive tab to be affixed to the license plate of an automobile,
 pickup, or recreational vehicle that is offered for rent, as a
 business, to any part of the public.
 [(h)]  The registration insignia [for validation of a
 license plate] shall be attached to the rear license plate of the
 vehicle, if the vehicle is:
 (1)  a motorcycle;
 (2)  machinery used exclusively to drill water wells or
 construction machinery for which a distinguishing license plate has
 been issued under Section 502.146 [504.504];  or
 (3)  oil well servicing, oil clean out, or oil well
 drilling machinery or equipment for which a distinguishing license
 plate has been issued under Subchapter G, Chapter 623.
 SECTION 91.  Section 502.184, Transportation Code, as
 effective September 1, 2011, is transferred to Subchapter B,
 Chapter 502, Transportation Code, redesignated as Section 502.060,
 Transportation Code, and amended to read as follows:
 Sec. 502.060  [502.184].  REPLACEMENT OF REGISTRATION
 INSIGNIA. (a) The owner of a registered motor vehicle may obtain a
 replacement registration insignia by:
 (1)  certifying that the replacement registration
 insignia will not be used on any other vehicle owned or operated by
 the person making the statement;
 (2)  paying a fee of $6 plus the fees required by
 Section 502.356(a) [502.1705(a)] for each replacement registration
 insignia, except as provided by other law; and
 (3)  returning each replaced registration insignia in
 the owner's possession.
 (b)  No fee is required under this section if the replacement
 fee for a license plate has been paid under Section 504.007
 [502.1841].
 (c)  [The fee for replacement of license plates issued under
 Section 504.507 is the amount prescribed by the department as
 necessary to recover the cost of providing the replacement plates.
 [(d)     If license plates approved under Section 504.501(b) or
 504.502(c) are lost, stolen, or mutilated, the owner of the vehicle
 may obtain approval of another set of license plates as provided by
 Section 504.501 or 504.502, respectively.     The fee for approval of
 replacement license plates is $5.
 [(e)]  A county assessor-collector may not issue a
 replacement registration insignia without complying with this
 section.
 (d) [(f)]  A county assessor-collector shall retain $2.50 of
 each fee collected under this section and shall report and send the
 remainder to the department.
 [(g)     Replacement license plates may be used in the
 registration year in which the plates are issued and during each
 succeeding year of the five-year period as prescribed by Section
 502.180(b) if the registration insignia is properly attached.
 [(h)     Subsection (g) does not apply to the issuance of
 specialized license plates as designated by the department,
 including state official license plates, exempt plates for
 governmental entities, and temporary registration plates.
 [(i)     The owner of a vehicle listed in Section 502.180(h) may
 obtain replacement plates and a replacement registration insignia
 by paying a fee of $5 plus the fees required by Sections 502.170(a)
 and 502.1705(a).]
 SECTION 92.  The heading to Subchapter C, Chapter 502,
 Transportation Code, is amended to read as follows:
 SUBCHAPTER C. SPECIAL REGISTRATIONS [COUNTY ADMINISTRATION]
 SECTION 93.  Section 502.0025, Transportation Code, is
 transferred to Subchapter C, Chapter 502, Transportation Code,
 redesignated as Section 502.090, Transportation Code, and amended
 to read as follows:
 Sec. 502.090  [502.0025].  EFFECT OF CERTAIN MILITARY
 SERVICE ON REGISTRATION REQUIREMENT. (a)  This section applies
 only to a motor vehicle that is owned by a person who:
 (1)  is a resident of this state;
 (2)  is on active duty in the armed forces of the United
 States;
 (3)  is stationed in or has been assigned to another
 nation under military orders; and
 (4)  has registered the vehicle or been issued a
 license for the vehicle under the applicable status of forces
 agreement by:
 (A)  the appropriate branch of the armed forces of
 the United States; or
 (B)  the nation in which the person is stationed
 or to which the person has been assigned.
 (b)  Unless the registration or license issued for a vehicle
 described by Subsection (a) is suspended, canceled, or revoked by
 this state as provided by law:
 (1)  Section 502.040(a) [502.002(a)] does not apply;
 and
 (2)  the registration or license issued by the armed
 forces or host nation remains valid and the motor vehicle may be
 operated in this state under that registration or license for a
 period of not more than 90 days after the date on which the vehicle
 returns to this state.
 SECTION 94.  Section 502.054, Transportation Code, is
 transferred to Subchapter C, Chapter 502, Transportation Code,
 redesignated as Section 502.091, Transportation Code, and amended
 to read as follows:
 Sec. 502.091  [502.054].  INTERNATIONAL REGISTRATION PLAN
 [AGREEMENTS WITH OTHER JURISDICTIONS; OFFENSE]. (a)  The
 department, through its director, may enter into an agreement with
 an authorized officer of another jurisdiction, including another
 state of the United States, a foreign country or a state, province,
 territory, or possession of a foreign country, to provide for:
 (1)  the registration of vehicles by residents of this
 state and nonresidents on an allocation or mileage apportionment
 plan, as under the International Registration Plan; and
 (2)  the exemption from payment of registration fees by
 nonresidents if residents of this state are granted reciprocal
 exemptions.
 (b)  The department may adopt and enforce rules to carry out
 the International Registration Plan or other agreement under this
 section.
 (c)  To carry out the International Registration Plan or
 other agreement under this section, the department shall direct
 that fees collected for other jurisdictions under the agreement be
 deposited to the credit of the proportional registration
 distributive fund in the state treasury and distributed to the
 appropriate jurisdiction through that fund.  The department is not
 required to refund any amount less than $10 unless required by the
 plan.
 (d)  This section prevails to the extent of conflict with
 another law relating to the subject of this section.
 (e)  A person commits an offense if the person owns or
 operates a vehicle not registered in this state in violation of:
 (1)  an agreement under this section; or
 (2)  the applicable registration laws of this state, in
 the absence of an agreement under this section.
 (f)  An offense under Subsection (e) is a misdemeanor
 punishable by a fine not to exceed $200.
 SECTION 95.  Section 502.355, Transportation Code, is
 transferred to Subchapter C, Chapter 502, Transportation Code,
 redesignated as Section 502.092, Transportation Code, and amended
 to read as follows:
 Sec. 502.092  [502.355].  NONRESIDENT-OWNED VEHICLES USED
 TO TRANSPORT FARM PRODUCTS[; OFFENSE]. (a) The department may
 issue to a nonresident owner a permit for a truck, truck-tractor,
 trailer, or semitrailer that:
 (1)  is registered in the owner's home state or country;
 and
 (2)  will be used to transport:
 (A)  farm products produced in this state from the
 place of production to a place of market or storage or a railhead
 that is not more than 75 miles from the place of production;
 (B)  machinery used to harvest farm products
 produced in this state; or
 (C)  farm products produced outside this state
 from the point of entry into this state to a place of market,
 storage, or processing or a railhead or seaport that is not more
 than 80 miles from the point of entry.
 (b)  The department shall issue a distinguishing insignia
 for a vehicle issued a permit under this section. The insignia must
 be attached to the vehicle in lieu of regular license plates and
 must show the permit expiration date. A permit issued under this
 section is valid until the earlier of:
 (1)  the date the vehicle's registration in the owner's
 home state or country expires; or
 (2)  the 30th day after the date the permit is issued.
 (c)  A person may obtain a permit under this section by:
 (1)  applying to the department in a manner [on a form]
 prescribed by the department;
 (2)  paying a fee equal to 1/12 the registration fee
 prescribed by this chapter for the vehicle;
 (3)  furnishing satisfactory evidence that the motor
 vehicle is insured under an insurance policy that complies with
 Section 601.072 and that is written by:
 (A)  an insurance company or surety company
 authorized to write motor vehicle liability insurance in this
 state; or
 (B)  with the department's approval, a surplus
 lines insurer that meets the requirements of Chapter 981, Insurance
 Code, and rules adopted by the commissioner of insurance under that
 chapter, if the applicant is unable to obtain insurance from an
 insurer described by Paragraph (A); and
 (4)  furnishing evidence that the vehicle has been
 inspected as required under Chapter 548.
 (d)  A nonresident owner may not obtain more than three
 permits under this section during a registration year.
 (e)  A vehicle for which a permit is issued under this
 section may not be operated in this state after the permit expires
 unless the owner:
 (1)  obtains another temporary permit; or
 (2)  registers the vehicle under Section 502.253,
 502.254, 502.255 [502.162, 502.165, 502.166], or 502.256
 [502.167], as appropriate, for the remainder of the registration
 year.
 (f)  A vehicle for which a permit is issued under this
 section may not be registered under Section 502.433 [502.163].
 (g)  A mileage referred to in this section is a state highway
 mileage.
 [(h)     A person operating a vehicle under a permit issued
 under this section commits an offense if the person:
 [(1)     transports farm products to a place of market,
 storage, or processing or a railhead or seaport that is farther from
 the place of production or point of entry, as appropriate, than the
 distance provided for in the permit; or
 [(2)     follows a route other than that prescribed by the
 board.
 [(i)     An offense under Subsection (h) is a misdemeanor
 punishable by a fine of not less than $25 or more than $200.]
 SECTION 96.  Section 502.353, Transportation Code, is
 transferred to Subchapter C, Chapter 502, Transportation Code,
 redesignated as Section 502.093, Transportation Code, and amended
 to read as follows:
 Sec. 502.093  [502.353].  [FOREIGN COMMERCIAL VEHICLES;]
 ANNUAL PERMITS [; OFFENSE]. (a)  The department may issue an annual
 permit in lieu of registration to a foreign commercial motor
 vehicle, trailer, or semitrailer that [:
 [(1)]  is subject to registration in this state [;] and
 [(2)]  is not authorized to travel on a public highway
 because of the lack of registration in this state or the lack of
 reciprocity with the state or country in which the vehicle is
 registered.
 (b)  A permit issued under this section [:
 [(1)  is in lieu of registration; and
 [(2)]  is valid for a vehicle registration year to
 begin on the first day of a calendar month designated by the
 department and end on the last day of the last calendar month of the
 registration year.
 (c)  A permit may not be issued under this section for the
 importation of citrus fruit into this state from a foreign country
 except for foreign export or processing for foreign export.
 (d)  A person may obtain a permit under this section by:
 (1)  applying in the manner prescribed by [to] the
 department;
 (2)  paying a fee in the amount required by Subsection
 (e) in the manner prescribed by the department, including a service
 charge for a credit card payment or escrow account [cash or by
 postal money order or certified check]; and
 (3)  furnishing evidence of financial responsibility
 for the motor vehicle that complies with Sections 502.046(c)
 [502.153(c)] and 601.168(a), the policies to be written by an
 insurance company or surety company authorized to write motor
 vehicle liability insurance in this state.
 (e)  The fee for a permit under this section is the fee that
 would be required for registering the vehicle under Section 502.253
 [502.162] or 502.255 [502.167], except as provided by Subsection
 (f).
 (f)  A vehicle registered under this section is exempt from
 the token fee and is not required to display the associated
 distinguishing license plate if the vehicle:
 (1)  is a semitrailer that has a gross weight of more
 than 6,000 pounds; and
 (2)  is used or intended to be used in combination with
 a truck tractor or commercial motor vehicle with a gross vehicle
 weight [manufacturer's rated carrying capacity] of more than 10,000
 pounds [one ton].
 (g)  A vehicle registered under this section is not subject
 to the fee required by Section 502.401 [502.172] or 502.403
 [502.173].
 [(h)  The department may:
 [(1)  adopt rules to administer this section; and
 [(2)     prescribe an application for a permit and other
 forms under this section.
 [(i)     A person who violates this section commits an offense.
 An offense under this section is a misdemeanor punishable by a fine
 not to exceed $200.]
 SECTION 97.  Section 502.352, Transportation Code, is
 transferred to Subchapter C, Chapter 502, Transportation Code,
 redesignated as Section 502.094, Transportation Code, and amended
 to read as follows:
 Sec. 502.094  [502.352].  72- OR 144-HOUR PERMITS [FOREIGN
 COMMERCIAL VEHICLES]. (a)  The department may issue a temporary
 registration permit in lieu of registration for a commercial motor
 vehicle, trailer, semitrailer, or motor bus that:
 (1)  is owned by a resident of the United States,
 Canada, or the United Mexican States;
 (2)  is subject to registration in this state; and
 (3)  is not authorized to travel on a public highway
 because of the lack of registration in this state or the lack of
 reciprocity with the state or province in which the vehicle is
 registered.
 (b)  A permit issued under this section [:
 [(1)  is in lieu of registration; and
 [(2)]  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.
 (c)  A person may obtain a permit under this section by:
 (1)  applying to the county assessor-collector, the
 department, or the department's wire service agent, if the
 department has a wire service agent;
 (2)  paying a fee of $25 for a 72-hour permit or $50 for
 a 144-hour permit in the manner prescribed by the department that
 may include a service charge for a credit card payment or escrow
 account[:
 [(A)  in cash;
 [(B)  by postal money order;
 [(C)  by certified check;
 [(D)     by wire transfer through the department's
 wire service agent, if any;
 [(E)  by an escrow account; or
 [(F)     where the service is provided, by a credit
 card issued by:
 [(i)     a financial institution chartered by a
 state or the United States; or
 [(ii)     a nationally recognized credit
 organization approved by the board;
 [(3)     paying a discount or service charge for a credit
 card payment or escrow account, in addition to the fee];
 (3) [(4)]  furnishing to the county
 assessor-collector, the department, or the department's wire
 service agent, evidence of financial responsibility for the vehicle
 that complies with Sections 502.046(c) [502.153(c)] and 601.168(a)
 [and is written by an insurance company or surety company
 authorized to write motor vehicle liability insurance in this
 state]; and
 (4) [(5)]  submitting a copy of the applicable federal
 declaration form required by the Federal Motor Carrier Safety
 Administration or its successor in connection with the importation
 of a motor vehicle or motor vehicle equipment subject to the federal
 motor vehicle safety, bumper, and theft prevention standards.
 (d)  A county assessor-collector shall report and send a fee
 collected under this section in the manner provided by Section
 502.198 [Sections 502.102 and 502.105]. Each week, a wire service
 agent shall send to the department a report of all permits issued by
 the agent during the previous week. The board [department] by rule
 shall prescribe the format [form] and content of a report required
 by this subsection.
 (e)  [The department may:
 [(1)  adopt rules to administer this section; and
 [(2)     prescribe an application for a permit and other
 forms under this section.
 [(f)]  A vehicle issued a permit under this section is
 subject to Subchapters B and F, Chapter 548, unless the vehicle:
 (1)  is registered in another state of the United
 States, in a province of Canada, or in a state of the United Mexican
 States; or
 (2)  is mobile drilling or servicing equipment used in
 the production of gas, crude petroleum, or oil, including a mobile
 crane or hoisting equipment, mobile lift equipment, forklift, or
 tug.
 (f) [(g)]  A commercial motor vehicle, trailer, semitrailer,
 or motor bus apprehended for violating a registration law of this
 state:
 (1)  may not be issued a permit under this section; and
 (2)  is immediately subject to registration in this
 state.
 (g) [(h)]  A person who operates a commercial motor vehicle,
 trailer, or semitrailer with an expired permit issued under this
 section is considered to be operating an unregistered vehicle
 subject to each penalty prescribed by law.
 (h) [(i)]  The department may establish one or more escrow
 accounts in the state highway fund for the prepayment of a 72-hour
 permit or a 144-hour permit. Any fee established by the department
 for the administration of this subsection shall be administered as
 required by an agreement entered into by the department.
 SECTION 98.  Section 502.354, Transportation Code, is
 transferred to Subchapter C, Chapter 502, Transportation Code,
 redesignated as Section 502.095, Transportation Code, and amended
 to read as follows:
 Sec. 502.095  [502.354].  ONE-TRIP [SINGLE] OR 30-DAY TRIP
 PERMITS [; OFFENSE]. (a)  The department may issue a temporary
 permit in lieu of registration for a vehicle [that:
 [(1)  is] subject to registration in this state that [;
 and
 [(2)]  is not authorized to travel on a public highway
 because of the lack of registration in this state or the lack of
 reciprocity with the state or country in which the vehicle is
 registered.
 (b)  A permit issued under this section [:
 [(1)  is in lieu of registration; and
 [(2)]  is valid for:
 (1) [(A)]  one trip, as provided by Subsection (c); or
 (2) [(B)]  30 days, as provided by Subsection (d).
 (c)  A one-trip permit is valid for one trip between the
 points of origin and destination and those intermediate points
 specified in the application and registration receipt. Unless the
 vehicle is a bus operating under charter that is not covered by a
 reciprocity agreement with the state or country in which the bus is
 registered, a one-trip permit is for the transit of the vehicle
 only, and the vehicle may not be used for the transportation of any
 passenger or property. A one-trip permit may not be valid for
 longer than 15 days from the effective date of registration.
 (d)  A 30-day permit may 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 a light commercial
 vehicle with a gross vehicle weight [manufacturer's rated carrying
 capacity] of more than 10,000 pounds [one ton] that will operate
 unladen. A person may obtain multiple 30-day permits. The
 department may issue a single registration receipt to apply to all
 of the periods for which the vehicle is registered.
 (e)  A person may obtain a permit under this section by:
 (1)  applying as [on a form] provided by the department
 to:
 (A)  the county assessor-collector of the county
 in which the vehicle will first be operated on a public highway; or
 (B)  the department in Austin or at one of the
 department's vehicle title and registration regional offices;
 (2)  paying a fee, in the manner prescribed by the
 department including a registration service charge for a credit
 card payment or escrow account [cash or by postal money order or
 certified check,] of:
 (A)  $5 for a one-trip permit; or
 (B)  $25 for each 30-day period; and
 (3)  furnishing evidence of financial responsibility
 for the vehicle in a form listed under Section 502.046(c)
 [502.153(c)].
 (f)  A registration receipt [and temporary tag] shall be
 carried in the vehicle at all times during the period in which it is
 valid [issued on forms provided by the department]. The temporary
 tag must contain all pertinent information required by this section
 and must be displayed in the rear window of the vehicle so that the
 tag is clearly visible and legible when viewed from the rear of the
 vehicle. If the vehicle does not have a rear window, the temporary
 tag must be attached on or carried in the vehicle to allow ready
 inspection. The registration receipt must be carried in the
 vehicle at all times during the period in which it is valid.
 (g)  The department may refuse and may instruct a county
 assessor-collector to refuse to issue a temporary registration for
 any vehicle if, in the department'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. A
 registration issued after notice to a county assessor-collector
 under this subsection is void.
 [(h)     A person issued a temporary registration under this
 section who operates a vehicle in violation of Subsection (f)
 commits an offense. An offense under this subsection is a Class C
 misdemeanor.
 [(i)  The department may:
 [(1)  adopt rules to administer this section; and
 [(2)     prescribe an application for a permit and other
 forms under this section.]
 SECTION 99.  The heading to Subchapter D, Chapter 502,
 Transportation Code, is amended to read as follows:
 SUBCHAPTER D. VEHICLES NOT ISSUED REGISTRATION [PROCEDURES AND
 FEES]
 SECTION 100.  Section 502.006, Transportation Code, is
 transferred to Subchapter D, Chapter 502, Transportation Code,
 redesignated as Section 502.140, Transportation Code, and amended
 to read as follows:
 Sec. 502.140  [502.006].  CERTAIN OFF-HIGHWAY VEHICLES.
 (a) Except as provided by Subsection (b), a person may not register
 an all-terrain vehicle or a recreational off-highway vehicle, with
 or without design alterations, for operation on a public highway.
 (b)  The state, a county, or a municipality may register an
 all-terrain vehicle or a recreational off-highway vehicle for
 operation on a public beach or highway to maintain public safety and
 welfare.
 (c)  A recreational off-highway vehicle registered as
 provided by Subsection (b) may be operated on a public or private
 beach in the same manner as a golf cart may be operated on a public
 or private beach under Section 551.403 [502.0071].  The operator
 must hold and have in the operator's possession a driver's license
 issued under Chapter 521 or a commercial driver's license issued
 under Chapter 522.
 (d)  Section 504.401 [502.172] does not apply to an
 all-terrain vehicle or a recreational off-highway vehicle.
 (e)  Operation of an all-terrain vehicle or recreational
 off-highway vehicle in compliance with Section 663.037 does not
 require registration under Subsection (b).
 SECTION 101.  Section 502.0072, Transportation Code, is
 transferred to Subchapter D, Chapter 502, Transportation Code, and
 redesignated as Section 502.142, Transportation Code, to read as
 follows:
 Sec. 502.142  [502.0072].  MANUFACTURED HOUSING.
 Manufactured housing, as defined by Section 1201.003, Occupations
 Code, is not a vehicle subject to this chapter.
 SECTION 102.  Section 502.0073, Transportation Code, is
 transferred to Subchapter D, Chapter 502, Transportation Code,
 redesignated as Section 502.143, Transportation Code, and amended
 to read as follows:
 Sec. 502.143  [502.0073].  OTHER VEHICLES [POWER SWEEPERS].
 [(a)]  An owner may [of a power sweeper is] not [required to]
 register the following vehicles for operation on a public highway:
 (1)  power sweepers;
 (2)  motorized mobility devices;
 (3)  electric personal assistive mobility devices; and
 (4)  electric bicycles [sweeper].
 [(b)     In this section, "power sweeper" means an implement,
 with or without motive power, designed for the removal by broom,
 vacuum, or regenerative air system of debris, dirt, gravel, litter,
 or sand from asphaltic concrete or cement concrete surfaces,
 including surfaces of parking lots, roads, streets, highways, and
 warehouse floors. The term includes a vehicle on which the
 implement is permanently mounted if the vehicle is used only as a
 power sweeper.]
 SECTION 103.  Section 502.0078, Transportation Code, is
 transferred to Subchapter D, Chapter 502, Transportation Code, and
 redesignated as Section 502.144, Transportation Code, to read as
 follows:
 Sec. 502.144  [502.0078].  VEHICLES OPERATED ON PUBLIC
 HIGHWAY SEPARATING REAL PROPERTY UNDER VEHICLE OWNER'S CONTROL.
 Where a public highway separates real property under the control of
 the owner of a motor vehicle, the operation of the motor vehicle by
 the owner or the owner's agent or employee across the highway is not
 a use of the motor vehicle on the public highway.
 SECTION 104.  Section 502.0079, Transportation Code, is
 transferred to Subchapter D, Chapter 502, Transportation Code,
 redesignated as Section 502.145, Transportation Code, and amended
 to read as follows:
 Sec. 502.145  [502.0079].  VEHICLES OPERATED BY CERTAIN
 NONRESIDENTS. (a)  [A nonresident owner of a motor vehicle,
 trailer, or semitrailer that is registered in the state or country
 in which the person resides may operate the vehicle to transport
 persons or property for compensation without being registered in
 this state, if the person does not exceed two trips in a calendar
 month and each trip does not exceed four days.
 [(b)     A nonresident owner of a privately owned vehicle that
 is not registered in this state may not make more than five
 occasional trips in any calendar month into this state using the
 vehicle. Each occasional trip into this state may not exceed five
 days.
 [(c)]  A nonresident owner of a privately owned passenger car
 that is registered in the state or country in which the person
 resides and that is not operated for compensation may operate the
 car in this state for the period in which the car's license plates
 are valid. In this subsection, "nonresident" means a resident of a
 state or country other than this state whose presence in this state
 is as a visitor and who does not engage in gainful employment or
 enter into business or an occupation, except as may otherwise be
 provided by any reciprocal agreement with another state or country.
 (b) [(d)]  This section does not prevent:
 (1)  a nonresident owner of a motor vehicle from
 operating the vehicle in this state for the sole purpose of
 marketing farm products raised exclusively by the person; or
 (2)  a resident of an adjoining state or country from
 operating in this state a privately owned and registered vehicle to
 go to and from the person's place of regular employment and to make
 trips to purchase merchandise, if the vehicle is not operated for
 compensation.
 (c) [(e)]  The privileges provided by this section may be
 allowed only if, under the laws of the appropriate state or country,
 similar privileges are granted to vehicles registered under the
 laws of this state and owned by residents of this state.
 (d) [(f)]  This section does not affect the right or status
 of a vehicle owner under any reciprocal agreement between this
 state and another state or country.
 SECTION 105.  Section 504.504, Transportation Code, is
 transferred to Subchapter D, Chapter 502, Transportation Code,
 redesignated as Section 502.146, Transportation Code, and amended
 to read as follows:
 Sec. 502.146  [504.504].  CERTAIN FARM VEHICLES AND DRILLING
 AND CONSTRUCTION EQUIPMENT. (a)  The department shall issue
 specialty license plates to a vehicle described by Subsection (b)
 or (c). The fee for the license plates is $5.
 (b)  An owner is not required to register a vehicle that is
 used only temporarily on the highways if the vehicle is:
 (1)  a farm trailer or farm semitrailer with a gross
 weight of more than 4,000 pounds but not more than 34,000 pounds
 that is  used exclusively to transport:
 (A)  seasonally harvested agricultural products
 or livestock from the place of production to the place of
 processing, market, or storage; or
 (B)  farm supplies from the place of loading to
 the farm;
 (2)  machinery used exclusively for the purpose of
 drilling water wells; [or]
 (3)  oil well servicing or drilling machinery and if at
 the time of obtaining the license plates, the applicant submits
 proof that the applicant has a permit under Section 623.142; or
 (4)  construction machinery [that is not designed to
 transport persons or property on a public highway].
 (c)  An owner is not required to register a vehicle that is:
 (1)  a farm trailer or farm semitrailer owned by a
 cotton gin and used exclusively to transport agricultural products
 without charge from the place of production to the place of
 processing, market, or storage;
 (2)  a trailer used exclusively to transport fertilizer
 without charge from a place of supply or storage to a farm; or
 (3)  a trailer used exclusively to transport cottonseed
 without charge from a place of supply or storage to a farm or place
 of processing.
 (d)  A vehicle described by Subsection (b) is exempt from the
 inspection requirements of Subchapters B and F, Chapter 548.
 (e)  This section does not apply to a farm trailer or farm
 semitrailer that:
 (1)  is used for hire;
 (2)  has metal tires operating in contact with the
 highway;
 (3)  is not equipped with an adequate hitch pinned or
 locked so that it will remain securely engaged to the towing vehicle
 while in motion; or
 (4)  is not operated and equipped in compliance with
 all other law.
 (f)  A vehicle to which this section applies that is operated
 on a public highway in violation of this section is considered to be
 operated while unregistered and is immediately subject to the
 applicable registration fees and penalties prescribed by this
 chapter [Chapter 502].
 (g)  In this section, the gross weight of a trailer or
 semitrailer is the combined weight of the vehicle and the load
 carried on the highway.
 SECTION 106.  The heading to Subchapter E, Chapter 502,
 Transportation Code, is amended to read as follows:
 SUBCHAPTER E. ADMINISTRATION OF FEES [SPECIALLY DESIGNATED LICENSE
 PLATES; EXEMPTIONS FOR GOVERNMENTAL AND QUASI-GOVERNMENTAL
 VEHICLES]
 SECTION 107.  Section 502.159, Transportation Code, is
 transferred to Subchapter E, Chapter 502, Transportation Code,
 redesignated as Section 502.190, Transportation Code, and amended
 to read as follows:
 Sec. 502.190  [502.159].  SCHEDULE OF REGISTRATION FEES.
 The department shall post [compile and furnish to each county
 assessor-collector] a complete schedule of registration fees on the
 Internet [to be collected on the various makes, models, and types of
 vehicles].
 SECTION 108.  Section 502.004, Transportation Code, is
 transferred to Subchapter E, Chapter 502, Transportation Code,
 redesignated as Section 502.191, Transportation Code, and amended
 to read as follows:
 Sec. 502.191  [502.004].  COLLECTION OF FEES. (a)  A person
 may not collect a registration fee under this chapter unless the
 person is:
 (1)  an officer or employee of the department; or
 (2)  a county assessor-collector or a deputy county
 assessor-collector.
 (b)  The department may accept electronic payment by
 electronic funds transfer, credit card, or debit card of any fee
 that the department is authorized to collect under this chapter.
 (c)  The department may collect a fee for processing a
 payment by electronic funds transfer, credit card, or debit card.
 The amount of the fee must be reasonably related to the expense
 incurred by the department in processing the payment by electronic
 funds transfer, credit card, or debit card and may not be more than
 five percent of the amount of the fee being paid.
 (d)  In addition to the fee authorized by Subsection (c), the
 department may collect from a person making payment by electronic
 funds transfer, credit card, or debit card an amount equal to the
 amount of any transaction fee charged to the department by a vendor
 providing services in connection with payments made by electronic
 funds transfer, credit card, or debit card. The limitation
 prescribed by Subsection (c) on the amount of a fee does not apply
 to a fee collected under this subsection.
 (e)  If, for any reason, the payment of a fee under this
 chapter by electronic funds transfer, credit card, or debit card is
 not honored by the funding institution or by the electronic funds
 transfer, credit card, or debit card company on which the funds are
 drawn, the department may collect from the person who owes the fee
 being collected a service charge that is for the collection of that
 original amount and is in addition to the original fee. The amount
 of the service charge must be reasonably related to the expense
 incurred by the department in collecting the original amount.
 SECTION 109.  Subchapter E, Chapter 502, Transportation
 Code, is amended by adding Section 502.192 to read as follows:
 Sec. 502.192.  TRANSFER FEE. The purchaser of a used motor
 vehicle shall pay, in addition to any fee required under Chapter 501
 for the transfer of title, a transfer fee of $2.50 for the transfer
 of the registration of the motor vehicle.  The county
 assessor-collector may retain as commission for services provided
 under this subchapter half of each transfer fee collected.
 SECTION 110.  Section 502.181, Transportation Code, is
 transferred to Subchapter E, Chapter 502, Transportation Code,
 redesignated as Section 502.193, Transportation Code, and amended
 to read as follows:
 Sec. 502.193 [502.181].  PAYMENT [OF REGISTRATION FEE] BY
 CHECK DRAWN AGAINST INSUFFICIENT FUNDS. (a) A county
 assessor-collector who receives from any person a check or draft
 for [drawn on a bank or trust company in] payment of a registration
 fee for a registration year that has not ended [on a motor vehicle,
 trailer, or motorcycle sidecar] that is returned unpaid because of
 insufficient funds or no funds in the bank or trust company to the
 credit of the drawer of the check or draft shall certify the fact to
 the sheriff or a constable or highway patrol officer in the county
 after attempts to contact the person fail to result in the
 collection of payment.  The certification must be made before the
 30th day after the date the check or draft is returned unpaid and:
 (1)  be under the assessor-collector's official seal;
 (2)  include the name and address of the person who gave
 the [assessor-collector the] check or draft;
 (3)  include the license plate number and make of the
 vehicle;
 (4)  be accompanied by the check or draft; and
 (5)  be accompanied by documentation of any attempt to
 contact the person and collect payment.
 (b)  On receiving a complaint under Subsection (a) from the
 county assessor-collector, the sheriff, constable, or highway
 patrol officer shall find the person who gave the
 [assessor-collector the] check or draft, if the person is in the
 county, and demand immediate redemption of the check or draft from
 the person. If the person fails or refuses to redeem the check or
 draft, the sheriff, constable, or highway patrol officer shall:
 (1)  seize and remove the license plates and
 registration insignia from the vehicle; and
 (2)  return the license plates and registration
 insignia to the county assessor-collector.
 SECTION 111.  Section 502.182, Transportation Code, is
 transferred to Subchapter E, Chapter 502, Transportation Code,
 redesignated as Section 502.194, Transportation Code, and amended
 to read as follows:
 Sec. 502.194 [502.182].  CREDIT FOR REGISTRATION FEE PAID ON
 MOTOR VEHICLE SUBSEQUENTLY DESTROYED. (a)  The owner of a motor
 vehicle that is destroyed to the extent that it cannot afterwards be
 operated on a public highway is entitled to a registration fee
 credit if the prorated portion of the registration fee for the
 remainder of the registration year is more than $15. The owner must
 claim the credit by [:
 [(1)]  sending the registration fee receipt [and the
 license plates] for the vehicle to the department [; and
 [(2)     executing a statement on a form provided by the
 department showing that the license plates have been surrendered to
 the department].
 (b)  The department, on satisfactory proof that the vehicle
 is destroyed, shall issue a registration fee credit slip to the
 owner in an amount equal to the prorated portion of the registration
 fee for the remainder of the registration year. The owner, during
 the same or the next registration year, may use the registration fee
 credit slip as payment or part payment for the registration of
 another vehicle to the extent of the credit.
 [(c)     A statement executed under Subsection (a)(2) shall be
 delivered to a purchaser of the destroyed vehicle. The purchaser
 may surrender the statement to the department in lieu of the vehicle
 license plates.
 [(d)     The department shall adopt rules to administer this
 section.]
 SECTION 112.  Section 502.183, Transportation Code, is
 transferred to Subchapter E, Chapter 502, Transportation Code,
 redesignated as Section 502.195, Transportation Code, and amended
 to read as follows:
 Sec. 502.195  [502.183].  REFUND OF OVERCHARGED
 REGISTRATION FEE. (a)  The owner of a motor vehicle [that is
 required to be registered] who pays an annual registration fee in
 excess of the statutory amount is entitled to a refund of the
 overcharge.
 (b)  The county assessor-collector who collects the
 excessive fee shall refund an overcharge on presentation to the
 assessor-collector of satisfactory evidence of the overcharge[.
 The owner must make a claim for a refund of an overcharge] not later
 than the first [fifth] anniversary of the date the excessive
 registration fee was paid.
 (c)  A refund shall be paid from the fund in which the
 county's share of registration fees is deposited.
 SECTION 113.  Section 502.051, Transportation Code, is
 transferred to Subchapter E, Chapter 502, Transportation Code, and
 redesignated as Section 502.196, Transportation Code, to read as
 follows:
 Sec. 502.196 [502.051].  DEPOSIT OF REGISTRATION FEES IN
 STATE HIGHWAY FUND. Except as otherwise provided by this chapter,
 the board and the department shall deposit all money received from
 registration fees in the state treasury to the credit of the state
 highway fund.
 SECTION 114.  Section 502.101, Transportation Code, is
 transferred to Subchapter E, Chapter 502, Transportation Code, and
 redesignated as Section 502.197, Transportation Code, to read as
 follows:
 Sec. 502.197 [502.101].  REGISTRATION BY MAIL OR ELECTRONIC
 MEANS; SERVICE CHARGE. (a)  A county assessor-collector may
 collect a service charge of $1 from each applicant registering a
 vehicle by mail. The service charge shall be used to pay the costs
 of handling and postage to mail the registration receipt and
 insignia to the applicant.
 (b)  With the approval of the commissioners court of a
 county, a county assessor-collector may contract with a private
 entity to enable an applicant for registration to use an electronic
 off-premises location. A private entity may charge an applicant
 not more than $1 for the service provided.
 (c)  The department may adopt rules to cover the timely
 application for and issuance of registration receipts and insignia
 by mail or through an electronic off-premises location.
 SECTION 115.  Section 502.102, Transportation Code, is
 transferred to Subchapter E, Chapter 502, Transportation Code,
 redesignated as Section 502.198, Transportation Code, and amended
 to read as follows:
 Sec. 502.198  [502.102].  DISPOSITION OF FEES GENERALLY.
 (a)  Except as provided by Sections 502.1982 [502.103] and 502.357
 [502.104], this section applies to all fees collected by a county
 assessor-collector under this chapter.
 (b)  Each Monday, a county assessor-collector shall credit
 to the county road and bridge fund an amount equal to the net
 collections made during the preceding week until the amount so
 credited for the calendar year equals the total of:
 (1)  $60,000;
 (2)  $350 for each mile of county road maintained by the
 county, according to the most recent information available from the
 department, not to exceed 500 miles; and
 (3)  an additional amount of fees equal to the amount
 calculated under Section 502.1981 [502.1025].
 (c)  After the credits to the county road and bridge fund
 equal the total computed under Subsection (b), each Monday the
 county assessor-collector shall:
 (1)  credit to the county road and bridge fund an amount
 equal to 50 percent of the net collections made during the preceding
 week, until the amount so credited for the calendar year equals
 $125,000; and
 (2)  send to the department an amount equal to 50
 percent of those collections.
 (d)  After the credits to the county road and bridge fund
 equal the total amounts computed under Subsections (b) and (c)(1),
 each Monday the county assessor-collector shall send to the
 department all collections made during the preceding week.
 [(e)     Each Monday the county assessor-collector shall send
 to the department a copy of each receipt issued the previous week
 for a registration fee under this chapter.]
 SECTION 116.  Section 502.1025, Transportation Code, is
 transferred to Subchapter E, Chapter 502, Transportation Code,
 redesignated as Section 502.1981, Transportation Code, and amended
 to read as follows:
 Sec. 502.1981 [502.1025].  CALCULATION OF ADDITIONAL FEE
 AMOUNTS RETAINED BY A COUNTY. (a)  The county tax
 assessor-collector each calendar year shall calculate five percent
 of the tax and penalties collected by the county tax
 assessor-collector under Chapter 152, Tax Code, in the preceding
 calendar year. In addition, the county tax assessor-collector
 shall calculate each calendar year an amount equal to five percent
 of the tax and penalties that the comptroller:
 (1)  collected under Section 152.047, Tax Code, in the
 preceding calendar year; and
 (2)  determines are attributable to sales in the
 county.
 (b)  A county tax assessor-collector shall retain under
 Section 502.198(b) [502.102(b)] fees based on the following
 percentage of the amounts calculated under Subsection [subsection]
 (a) during each of the following fiscal years:
 (1)  [in fiscal year 2006, 90 percent;
 [(2)  in fiscal year 2007, 80 percent;
 [(3)  in fiscal year 2008, 70 percent;
 [(4)  in fiscal year 2009, 60 percent;
 [(5)  in fiscal year 2010, 50 percent;
 [(6)  in fiscal year 2011, 40 percent;
 [(7)]  in fiscal year 2012, 30 percent;
 (2) [(8)]  in fiscal year 2013, 20 percent;
 (3) [(9)]  in fiscal year 2014, 10 percent;
 (4) [(10)]  in fiscal year 2015 and succeeding years, 0
 percent.
 (c)  The county shall credit the amounts retained under
 Subsection (b) to the county road and bridge fund. Money credited
 to the fund under this section may only be used for:
 (1)  county road construction, maintenance, and
 repair;
 (2)  bridge construction, maintenance, and repair;
 (3)  the purchase of right-of-way for road or highway
 purposes; or
 (4)  the relocation of utilities for road or highway
 purposes.
 SECTION 117.  Section 502.103, Transportation Code, is
 transferred to Subchapter E, Chapter 502, Transportation Code,
 redesignated as Section 502.1982, Transportation Code, and amended
 to read as follows:
 Sec. 502.1982 [502.103].  DISPOSITION OF OPTIONAL COUNTY
 ROAD AND BRIDGE FEE. Each Monday a county assessor-collector shall
 apportion the collections for the preceding week for a fee imposed
 under Section 502.401 [502.172] by:
 (1)  crediting an amount equal to 97 percent of the
 collections to the county road and bridge fund; and
 (2)  sending to the department an amount equal to three
 percent of the collections to defray the department's costs of
 administering Section 502.401 [502.172].
 SECTION 118.  Section 502.106, Transportation Code, is
 transferred to Subchapter E, Chapter 502, Transportation Code,
 redesignated as Section 502.1983, Transportation Code, and amended
 to read as follows:
 Sec. 502.1983 [502.106].  DEPOSIT OF FEES IN
 INTEREST-BEARING ACCOUNT.  (a)  Except as provided by Sections
 502.1982 [502.103] and 502.357 [502.104], a county
 assessor-collector may:
 (1)  deposit the fees in an interest-bearing account or
 certificate in the county depository; and
 (2)  send the fees to the department not later than the
 34th day after the date the fees are due under Section 502.357
 [502.104].
 (b)  The county owns all interest earned on fees deposited
 under this section. The county treasurer shall credit the interest
 to the county general fund.
 SECTION 119.  Section 502.107, Transportation Code, is
 transferred to Subchapter E, Chapter 502, Transportation Code, and
 redesignated as Section 502.1984, Transportation Code, to read as
 follows:
 Sec. 502.1984 [502.107].  INTEREST ON FEES.  (a)  A fee
 required to be sent to the department under this chapter bears
 interest for the benefit of the state highway fund at an annual rate
 of 10 percent beginning on the 60th day after the date the county
 assessor-collector collects the fee.
 (b)  The department shall audit the registration and
 transfer fees collected and disbursed by each county
 assessor-collector and shall determine the exact amount of interest
 due on any fee not sent to the department.
 (c)  The state has a claim against a county
 assessor-collector and the sureties on the assessor-collector's
 official bond for the amount of interest due on a fee.
 SECTION 120.  Section 502.108, Transportation Code, is
 transferred to Subchapter E, Chapter 502, Transportation Code,
 redesignated as Section 502.1985, Transportation Code, and amended
 to read as follows:
 Sec. 502.1985 [502.108].  USE OF REGISTRATION FEES RETAINED
 BY COUNTY.  (a)  Money credited to the county road and bridge fund
 under Section 502.198 [502.102] or 502.1982 [502.103] may not be
 used to pay the compensation of the county judge or a county
 commissioner. The money may be used only for the construction and
 maintenance of lateral roads in the county, under the supervision
 of the county engineer.
 (b)  If there is not a county engineer, the commissioners
 court of the county may require the services of the department's
 district engineer or resident engineer to supervise the
 construction and surveying of lateral roads in the county.
 (c)  A county may use money allocated to it under this
 chapter to:
 (1)  pay obligations issued in the construction or
 improvement of any roads, including state highways in the county;
 (2)  improve the roads in the county road system; or
 (3)  construct new roads.
 (d)  To the maximum extent possible, contracts for roads
 constructed by a county using funds provided under this chapter
 should be awarded by competitive bids.
 SECTION 121.  Section 502.110, Transportation Code, is
 transferred to Subchapter E, Chapter 502, Transportation Code, and
 redesignated as Section 502.1986, Transportation Code, to read as
 follows:
 Sec. 502.1986 [502.110].  CONTINGENT PROVISION FOR
 DISTRIBUTION OF FEES BETWEEN STATE AND COUNTIES.  If the method of
 distributing vehicle registration fees collected under this
 chapter between the state and counties is declared invalid because
 of inequality of collection or distribution of those fees, 60
 percent of each fee shall be distributed to the county collecting
 the fee and 40 percent shall be sent to the state in the manner
 provided by this chapter.
 SECTION 122.  The heading to Subchapter F, Chapter 502,
 Transportation Code, is amended to read as follows:
 SUBCHAPTER F.  REGULAR REGISTRATION FEES [SPECIALIZED LICENSE
 PLATES; EXEMPTIONS FOR PRIVATELY OWNED VEHICLES]
 SECTION 123.  Section 502.160, Transportation Code, as
 effective September 1, 2011, is transferred to Subchapter F,
 Chapter 502, Transportation Code, and redesignated as Section
 502.251, Transportation Code, to read as follows:
 Sec. 502.251  [502.160].  FEE: MOTORCYCLE OR MOPED. The
 fee for a registration year for registration of a motorcycle or
 moped is $30.
 SECTION 124.  Section 502.161, Transportation Code, as
 effective September 1, 2011, is transferred to Subchapter F,
 Chapter 502, Transportation Code, redesignated as Section 502.252,
 Transportation Code, and amended to read as follows:
 Sec. 502.252 [502.161].  FEE: VEHICLES THAT WEIGH 6,000
 POUNDS OR LESS. (a) The fee for a registration year for
 registration of a vehicle with a gross weight of 6,000 pounds or
 less is $50.75, unless otherwise provided in this chapter.
 (b) [(c)]  For registration purposes, the weight of a
 passenger car, a municipal bus, or a private bus is the weight
 generally accepted as its correct shipping weight plus 100 pounds.
 [(d)     In this section, "private bus" has the meaning assigned
 by Section 502.294.]
 SECTION 125.  Section 502.162, Transportation Code, as
 effective September 1, 2011, is transferred to Subchapter F,
 Chapter 502, Transportation Code, redesignated as Section 502.253,
 Transportation Code, and amended to read as follows:
 Sec. 502.253 [502.162].  FEE: VEHICLES THAT WEIGH MORE THAN
 6,000 POUNDS. [(a)] The fee for a registration year for
 registration of a vehicle with a gross weight of more than 6,000
 pounds is as follows unless otherwise provided in this chapter:
 Weight Classification Fee Schedule Weight Classification Fee Schedule
Weight Classification Fee Schedule
 in pounds in pounds
in pounds
 6,001-10,000 $54.00 6,001-10,000 $54.00
6,001-10,000 $54.00
 10,001-18,000 $110.00 10,001-18,000 $110.00
10,001-18,000 $110.00
 18,001-25,999 $205.00 18,001-25,999 $205.00
18,001-25,999 $205.00
 26,000-40,000 $340.00 26,000-40,000 $340.00
26,000-40,000 $340.00
 40,001-54,999 $535.00 40,001-54,999 $535.00
40,001-54,999 $535.00
 55,000-70,000 $740.00 55,000-70,000 $740.00
55,000-70,000 $740.00
 70,001-80,000 $840.00 70,001-80,000 $840.00
70,001-80,000 $840.00
 [(b)     The gross weight of a vehicle is the actual weight of
 the vehicle, fully equipped with a body and other equipment, as
 certified by a public weigher or a license and weight inspector of
 the Department of Public Safety, plus its net carrying capacity.
 [(c)     The net carrying capacity of a vehicle other than a bus
 is the heaviest net load to be carried on the vehicle, but not less
 than the manufacturer's rated carrying capacity.
 [(d)     The net carrying capacity of a bus is computed by
 multiplying its seating capacity by 150 pounds. The seating
 capacity of a bus is:
 [(1)     the manufacturer's rated seating capacity,
 excluding the operator's seat; or
 [(2)     if the manufacturer has not rated the vehicle for
 seating capacity, a number computed by allowing one passenger for
 each 16 inches of seating on the bus, excluding the operator's
 seat.]
 SECTION 126.  Section 502.166, Transportation Code, as
 effective September 1, 2011, is transferred to Subchapter F,
 Chapter 502, Transportation Code, redesignated as Section 502.254,
 Transportation Code, and amended to read as follows:
 Sec. 502.254 [502.166].  FEE: TRAILER, TRAVEL TRAILER, OR
 SEMITRAILER. (a) The fee for a registration year for registration
 of a trailer, travel trailer, or semitrailer with a gross weight of
 6,000 pounds or less is $45.00.
 (b) [(a-1)]  The fee for a registration year for
 registration of a trailer, travel trailer, or semitrailer with a
 gross weight of more than 6,000 pounds is calculated by gross weight
 according to Section 502.253 [502.162].
 [(b)     The gross weight of a trailer or semitrailer is the
 actual weight of the vehicle, as certified by a public weigher or a
 license and weight inspector of the Department of Public Safety,
 plus its net carrying capacity.
 [(c)     The net carrying capacity of a vehicle is the heaviest
 net load to be carried on the vehicle, but not less than the
 manufacturer's rated carrying capacity.
 [(d)     The department may issue specially designed license
 plates for rental trailers and travel trailers that include, as
 appropriate, the words "rental trailer" or "travel trailer."
 [(e)  In this section:
 [(1)     "Rental fleet" means five or more vehicles that
 are:
 [(A)  owned by the same owner;
 [(B)     offered for rent or rented without drivers;
 and
 [(C)     designated by the owner in the manner
 prescribed by the department as a rental fleet.
 [(2)  "Rental trailer" means a utility trailer that:
 [(A)     has a gross weight of 4,000 pounds or less;
 and
 [(B)  is part of a rental fleet.
 [(3)     "Travel trailer" means a house trailer-type
 vehicle or a camper trailer that is:
 [(A)     less than eight feet in width or 40 feet in
 length, exclusive of any hitch installed on the vehicle; and
 [(B)     designed primarily for use as temporary
 living quarters in connection with recreational, camping, travel,
 or seasonal use and not as a permanent dwelling; provided that
 "travel trailer" shall not include a utility trailer, enclosed
 trailer, or other trailer not having human habitation as its
 primary purpose.]
 SECTION 127.  Section 502.167, Transportation Code, as
 effective September 1, 2011, is transferred to Subchapter F,
 Chapter 502, Transportation Code, redesignated as Section 502.255,
 Transportation Code, and amended to read as follows:
 Sec. 502.255 [502.167].  TRUCK-TRACTOR OR COMMERCIAL MOTOR
 VEHICLE COMBINATION FEE; SEMITRAILER TOKEN FEE.  (a) This section
 applies only to a truck-tractor or commercial motor vehicle with a
 gross weight of more than 10,000 pounds that is used or is to be used
 in combination with a semitrailer that has a gross weight of more
 than 6,000 pounds.
 (b)  The fee for a registration year for registration of a
 truck-tractor or commercial motor vehicle is calculated by gross
 weight according to Section 502.253 [502.162].
 (c)  The fee for a registration year for registration of a
 semitrailer used in the manner described by Subsection (a),
 regardless of the date the semitrailer is registered, is:
 (1)  $30, for a semitrailer being propelled by a power
 unit for which a permit under Section 623.011 has been issued; or
 (2)  $15, for a semitrailer being propelled by a power
 unit for which a permit under Section 623.011 has not been issued.
 (d)  A registration made under Subsection (c) is valid only
 when the semitrailer is used in the manner described by Subsection
 (a).
 (e)  For registration purposes, a semitrailer converted to a
 trailer by means of an auxiliary axle assembly retains its status as
 a semitrailer.
 (f)  A combination of vehicles may not be registered under
 this section for a combined gross weight of less than 18,000 pounds.
 (g)  This section does not apply to:
 (1)  a combination of vehicles that includes a vehicle
 that has a distinguishing license plate under Section 502.146
 [504.504];
 (2)  a truck-tractor or commercial motor vehicle
 registered or to be registered with $5 distinguishing license
 plates for which the vehicle is eligible under this chapter;
 (3)  a truck-tractor or commercial motor vehicle used
 exclusively in combination with a semitrailer of the travel trailer
 [housetrailer] type; or
 (4)  a vehicle registered or to be registered:
 (A)  with a temporary registration permit;
 (B)  under Section 502.433 [502.163]; or
 (C)  under Section 502.435 [502.188].
 (h)  The department may adopt rules to administer this
 section.
 (i)  The department may issue specially designed license
 plates for token trailers.
 (j)  A person may register a semitrailer under this section
 [for a registration period of five consecutive years] if the
 person:
 (1)   applies to the department for [the five-year]
 registration;
 (2)  provides proof of the person's eligibility to
 register the vehicle under this subsection as required by the
 department; and
 (3)  pays a fee of $15, plus any applicable fee under
 Section 502.401 [502.172], for each year included in the
 registration period.
 [(k)     If during the five-year registration period for a
 vehicle registered under Subsection (j) the amount of a fee imposed
 under that subsection is increased, the owner of the vehicle is
 liable to the department for the amount of the increase. If the
 amount of a fee is decreased, the owner of the vehicle is not
 entitled to a refund.
 [(l)  In this section:
 [(1)     "Combined gross weight" means the empty weight of
 the truck-tractor or commercial motor vehicle combined with the
 empty weight of the heaviest semitrailer used or to be used in
 combination with the truck-tractor or commercial motor vehicle plus
 the heaviest net load to be carried on the combination during the
 registration year.
 [(2)     "Empty weight" means the unladen weight of the
 truck-tractor or commercial motor vehicle and semitrailer
 combination fully equipped, as certified by a public weigher or
 license and weight inspector of the Department of Public Safety.
 [(3)  "Token trailer" means a semitrailer that:
 [(A)     has a gross weight of more than 6,000
 pounds; and
 [(B)     is operated in combination with a truck or a
 truck-tractor that has been issued:
 [(i)  an apportioned license plate;
 [(ii)  a combination license plate; or
 [(iii)  a forestry vehicle license plate.
 [(4)     "Apportioned license plate" means a license plate
 issued in lieu of truck license plates or combination license
 plates to a motor carrier in this state who proportionally
 registers a vehicle owned by the carrier in one or more other
 states.
 [(5)     "Combination license plate" means a license plate
 issued for a truck or truck-tractor that:
 [(A)     has a manufacturer's rated carrying
 capacity of more than one ton; and
 [(B)     is used or intended to be used in
 combination with a semitrailer that has a gross weight of more than
 6,000 pounds.]
 SECTION 128.  Section 502.165, Transportation Code, as
 effective September 1, 2011, is transferred to Subchapter F,
 Chapter 502, Transportation Code, redesignated as Section 502.256,
 Transportation Code, and amended to read as follows:
 Sec. 502.256 [502.165].  FEE: ROAD TRACTOR. The fee for a
 registration year for registration of a road tractor is the fee
 prescribed by weight as certified by a public weigher or a license
 and weight inspector of the Department of Public Safety under
 Section 502.252 [502.161] or 502.253 [502.162], as applicable.
 SECTION 129.  The heading to Subchapter G, Chapter 502,
 Transportation Code, is amended to read as follows:
 SUBCHAPTER G. ADDITIONAL FEES [TEMPORARY REGISTRATION]
 SECTION 130.  Section 502.1705, Transportation Code, as
 effective September 1, 2011, is transferred to Subchapter G,
 Chapter 502, Transportation Code, redesignated as Section 502.356,
 Transportation Code, and amended to read as follows:
 Sec. 502.356 [502.1705].  [ADDITIONAL FEE FOR] AUTOMATED
 REGISTRATION AND TITLING [TITLE] SYSTEM. (a) In addition to other
 registration fees for a license plate or set of license plates or
 other device used as the registration insignia, a fee of $1 shall be
 collected.
 (b)  The department may use money collected under this
 section to provide for or enhance:
 (1)  automated on-premises and off-premises
 registration; and
 (2)  services related to the titling of vehicles.
 SECTION 131.  Section 502.1715, Transportation Code, as
 amended by Chapters 892 (S.B. 1670) and 1108 (H.B. 2337), Acts of
 the 79th Legislature, Regular Session, 2005, is transferred to
 Subchapter G, Chapter 502, Transportation Code, redesignated as
 Section 502.357, Transportation Code, and reenacted and amended to
 read as follows:
 Sec. 502.357 [502.1715].  FINANCIAL RESPONSIBILITY
 [ADDITIONAL FEE FOR CERTAIN DEPARTMENT] PROGRAMS.  (a)  In
 addition to other fees imposed for registration of a motor vehicle,
 at the time of application for registration or renewal of
 registration of a motor vehicle for which the owner is required to
 submit evidence of financial responsibility under Section 502.046
 [502.153], the applicant shall pay a fee of $1. In addition to other
 fees imposed for registration of a motor vehicle, at the time of
 application for registration of a motor vehicle that is subject to
 Section 501.0234, the applicant shall pay a fee of $1. Fees
 collected under this section shall be remitted weekly to the
 department.
 (b)  Fees collected under this section shall be deposited to
 the credit of the state highway fund.  Subject to appropriations,
 the money shall be used by the Department of Public Safety to:
 (1)  support the Department of Public Safety's
 reengineering of the driver's license system to provide for the
 issuance by the Department of Public Safety of a driver's license or
 personal identification certificate, to include use of image
 comparison technology;
 (2)  establish and maintain a system to support the
 driver responsibility program under Chapter 708; and
 (3)  make lease payments to the master lease purchase
 program for the financing of the driver's license reengineering
 project.
 (c)  Fees collected under this section shall be deposited to
 the credit of the state highway fund.  Subject to appropriation, the
 money may be used by the Department of Public Safety, the Texas
 Department of Insurance, the Department of Information Resources,
 and the department to carry out Subchapter N, Chapter 601.
 (d)  The Department of Public Safety, the Texas Department of
 Insurance, the Department of Information Resources, and the
 department shall jointly adopt rules and develop forms necessary to
 administer this section.
 SECTION 132.  Section 502.1675, Transportation Code, is
 transferred to Subchapter G, Chapter 502, Transportation Code,
 redesignated as Section 502.358, Transportation Code, and amended
 to read as follows:
 Sec. 502.358 [502.1675].  TEXAS EMISSIONS REDUCTION PLAN
 SURCHARGE. (a)  In addition to the registration fees charged under
 Section 502.255 [502.167], a surcharge is imposed on the
 registration of a truck-tractor or commercial motor vehicle under
 that section in an amount equal to 10 percent of the total fees due
 for the registration of the truck-tractor or commercial motor
 vehicle under that section.
 (b)  The county tax assessor-collector shall remit the
 surcharge collected under this section to the comptroller at the
 time and in the manner prescribed by the comptroller for deposit in
 the Texas emissions reduction plan fund.
 (c)  This section expires August 31, 2019.
 SECTION 133.  Section 502.171, Transportation Code, is
 transferred to Subchapter G, Chapter 502, Transportation Code,
 redesignated as Section 502.359, Transportation Code, and amended
 to read as follows:
 Sec. 502.359  [502.171].  ADDITIONAL FEE FOR CERTAIN
 VEHICLES USING DIESEL MOTOR. (a)  The registration fee under this
 chapter for a motor vehicle other than a passenger car, a truck with
 a gross vehicle weight [manufacturer's rated carrying capacity] of
 18,000 pounds [two tons] or less, or a vehicle registered in
 combination under Section 502.255 [502.167] is increased by 11
 percent if the vehicle has a diesel motor.
 (b)  The [A county assessor-collector shall show on the]
 registration receipt for a motor vehicle, other than a passenger
 car or a truck  with a gross vehicle weight [manufacturer's rated
 carrying capacity] of 18,000 pounds [two tons] or less, must show
 that the vehicle has a diesel motor.
 (c)  The department may adopt rules to administer this
 section.
 SECTION 134.  The heading to Subchapter H, Chapter 502,
 Transportation Code, is amended to read as follows:
 SUBCHAPTER H.  OPTIONAL FEES [OFFENSES AND PENALTIES]
 SECTION 135.  Section 502.172, Transportation Code, is
 transferred to Subchapter H, Chapter 502, Transportation Code,
 redesignated as Section 502.401, Transportation Code, and amended
 to read as follows:
 Sec. 502.401 [502.172].  OPTIONAL COUNTY FEE FOR ROAD AND
 BRIDGE FUND.  (a)  The commissioners court of a county by order may
 impose an additional fee, not to exceed $10, for registering a
 vehicle in the county.
 (b)  A vehicle that may be registered under this chapter
 without payment of a registration fee may be registered in a county
 imposing a fee under this section without payment of the additional
 fee.
 (c)  A fee imposed under this section may take effect only on
 January 1 of a year. The county must adopt the order and notify the
 department not later than September 1 of the year preceding the year
 in which the fee takes effect.
 (d)  A fee imposed under this section may be removed. The
 removal may take effect only on January 1 of a year. A county may
 remove the fee only by:
 (1)  rescinding the order imposing the fee; and
 (2)  notifying the department not later than September
 1 of the year preceding the year in which the removal takes effect.
 (e)  The county assessor-collector of a county imposing a fee
 under this section shall collect the additional fee for a vehicle
 when other fees imposed under this chapter are collected.
 (f)  The department shall collect the additional fee on a
 vehicle that is owned by a resident of a county imposing a fee under
 this section [and] that[, under this chapter,] must be registered
 directly with the department. The department shall send all fees
 collected for a county under this subsection to the county
 treasurer to be credited to the county road and bridge fund.
 (g)  The department shall adopt rules [and develop forms]
 necessary to administer registration [by mail] for a vehicle being
 registered in a county imposing a fee under this section.
 SECTION 136.  Section 502.1725, Transportation Code, is
 transferred to Subchapter H, Chapter 502, Transportation Code,
 redesignated as Section 502.402, Transportation Code, and amended
 to read as follows:
 Sec. 502.402 [502.1725].  OPTIONAL COUNTY FEE FOR
 TRANSPORTATION PROJECTS.  (a)  This section applies only to a
 county:
 (1)  that borders the United Mexican States;
 (2)  that has a population of more than 300,000; and
 (3)  in which the largest municipality has a population
 of less than 300,000.
 (b)  The commissioners court of a county by order may impose
 an additional fee, not to exceed $10, for [registering] a vehicle
 registered in the county.
 (c)  A vehicle that may be registered under this chapter
 without payment of a registration fee may be registered [in a county
 imposing a fee] under this section without payment of the
 additional fee.
 (d)  A fee imposed under this section may take effect [only
 on January 1 of a year.     The county must adopt the order] and
 [notify the department not later than September 1 of the year
 preceding the year in which the fee takes effect.
 [(e)  A fee imposed under this section may] be removed in
 accordance with the requirements of Section 502.401[.    The removal
 may take effect only on January 1 of a year.    A county may remove the
 fee only by:
 [(1)  rescinding the order imposing the fee;  and
 [(2)     notifying the department not later than September
 1 of the year preceding the year in which the removal takes effect].
 (e) [(f)]  The [county assessor-collector of a county
 imposing a fee under this section shall collect the] additional fee
 shall be collected for a vehicle when other fees imposed under this
 chapter are collected.  The [county shall send the] fee revenue
 collected shall be sent to the regional mobility authority of the
 county to fund long-term transportation projects in the county.
 (f) [(g)     The department shall collect the additional fee on
 a vehicle that is owned by a resident of a county imposing a fee
 under this section and that, under this chapter, must be registered
 directly with the department.     The department shall send all fees
 collected for a county under this subsection to the regional
 mobility authority of the county to fund long-term transportation
 projects in the county.
 [(h)]  The department shall adopt rules [and develop forms]
 necessary to administer registration [by mail] for a vehicle being
 registered in a county imposing a fee under this section.
 SECTION 137.  Section 502.173, Transportation Code, is
 transferred to Subchapter H, Chapter 502, Transportation Code,
 redesignated as Section 502.403, Transportation Code, and amended
 to read as follows:
 Sec. 502.403 [502.173].  OPTIONAL COUNTY FEE FOR CHILD
 SAFETY.  (a)  The commissioners court of a county that has a
 population greater than 1.3 million and in which a municipality
 with a population of more than one million is primarily located may
 impose by order an additional fee of not less than 50 cents or more
 than $1.50 for [registering] a vehicle registered in the county.
 The commissioners court of any other county may impose by order an
 additional fee of not more than $1.50 for registering a vehicle in
 the county.
 (b)  A vehicle that may be registered under this chapter
 without payment of a registration fee may be registered [in a county
 imposing a fee under this section] without payment of the
 additional fee.
 (c)  A fee imposed under this section may take effect [only
 on January 1 of a year. The county must adopt the order] and [notify
 the department not later than September 10 of the year preceding the
 year in which the fee takes effect.
 [(d)  A fee imposed under this section may] be removed in
 accordance with the provisions of Section 502.401. [The removal
 may take effect only on January 1 of a year. A county may remove the
 fee only by:
 [(1)  rescinding the order imposing the fee; and
 [(2)     notifying the department not later than September
 1 of the year preceding the year in which the removal takes effect.]
 (d) [(e)]  The [county assessor-collector of a county
 imposing a fee under this section shall collect the] additional fee
 shall be collected for a vehicle when other fees imposed under this
 chapter are collected.
 (e) [(f)]  A county imposing a fee under this section may
 deduct for administrative costs an amount of not more than 10
 percent of the revenue it receives from the fee. The county may
 also deduct from the fee revenue an amount proportional to the
 percentage of county residents who live in unincorporated areas of
 the county. After making the deductions provided for by this
 subsection, the county shall send the remainder of the fee revenue
 to the municipalities in the county according to their population.
 (f) [(g)]  A municipality with a population greater than
 850,000 shall deposit revenue from a fee imposed under this
 subsection to the credit of the child safety trust fund created
 under Section 106.001, Local Government Code. A municipality with a
 population less than 850,000 shall use revenue from a fee imposed
 under this section in accordance with Article 102.014(g), Code of
 Criminal Procedure.
 (g) [(h)]  After deducting administrative costs, a county
 may use revenue from a fee imposed under this section only for a
 purpose permitted by Article 102.014(g) [Subsection (g), Article
 102.014], Code of Criminal Procedure.
 SECTION 138.  Section 502.174, Transportation Code, is
 transferred to Subchapter H, Chapter 502, Transportation Code,
 redesignated as Section 502.404, Transportation Code, and amended
 to read as follows:
 Sec. 502.404  [502.174].  VOLUNTARY ASSESSMENT FOR YOUNG
 FARMER LOAN GUARANTEES.  (a)  When a person registers a commercial
 motor vehicle under Section 502.433 [502.163], the person shall pay
 a voluntary assessment of $5.
 (b)  The county assessor-collector shall send an assessment
 collected under this section to the comptroller, at the time and in
 the manner prescribed by the Texas Agricultural Finance Authority,
 for deposit in the Texas agricultural fund.
 (c)  The Texas Agricultural Finance Authority shall
 prescribe procedures under which an assessment collected under this
 section may be refunded. The county assessor-collector of the
 county in which an assessment is collected shall:
 (1)  implement the refund procedures; and
 (2)  provide notice of those procedures to a person
 paying an assessment at the time of payment.
 SECTION 139.  Section 502.1745, Transportation Code, is
 transferred to Subchapter H, Chapter 502, Transportation Code,
 redesignated as Section 502.405, Transportation Code, and amended
 to read as follows:
 Sec. 502.405 [502.1745].  DONOR EDUCATION, AWARENESS, AND
 REGISTRY PROGRAM [VOLUNTARY FEE].  (a)  The department shall
 provide to each county assessor-collector the educational
 materials for prospective donors provided as required by the Donor
 Education, Awareness, and Registry Program of Texas under Chapter
 49, Health and Safety Code.  The [A county assessor-collector shall
 make the] educational materials shall be made available in each
 office authorized to accept applications for registration of motor
 vehicles.
 (b)  A person may elect to pay [county assessor-collector
 shall collect] an additional fee of $1 for the registration or
 renewal of registration of a motor vehicle to pay the costs of the
 Donor Education, Awareness, and Registry Program of Texas,
 established under Chapter 49, Health and Safety Code, and of the
 Texas Organ, Tissue, and Eye Donor Council, established under
 Chapter 113, Health and Safety Code [, if the person registering or
 renewing the registration of a motor vehicle opts to pay the
 additional fee].  Notwithstanding any other provision of this
 chapter, [the county assessor-collector shall remit] all fees
 collected under this subsection shall be remitted to the
 comptroller, who shall maintain the identity of the source of the
 fees.
 (c)  Three percent of all money collected under this section
 may be appropriated only to the department to administer this
 section.
 SECTION 140.  The heading to Subchapter I, Chapter 502,
 Transportation Code, is amended to read as follows:
 SUBCHAPTER I.  ALTERNATE REGISTRATION FEES [TRANSFER AND REMOVAL OF
 LICENSE PLATES FOR THE SALE OR TRANSFER OF USED VEHICLES]
 SECTION 141.  Section 502.164, Transportation Code, is
 transferred to Subchapter I, Chapter 502, Transportation Code, and
 redesignated as Section 502.431, Transportation Code, to read as
 follows:
 Sec. 502.431 [502.164].  FEE: MOTOR VEHICLE USED
 EXCLUSIVELY TO TRANSPORT AND SPREAD FERTILIZER. The fee for a
 registration year for registration of a motor vehicle designed or
 modified and used exclusively to transport to the field and spread
 fertilizer, including agricultural limestone, is $75.
 SECTION 142.  Section 502.1586, Transportation Code, is
 transferred to Subchapter I, Chapter 502, Transportation Code,
 redesignated as Section 502.432, Transportation Code, and amended
 to read as follows:
 Sec. 502.432 [502.1586].  [REGISTRATION PERIOD FOR
 TRUCK-TRACTOR OR COMMERCIAL MOTOR] VEHICLE TRANSPORTING SEASONAL
 AGRICULTURAL PRODUCTS. (a)  The department shall provide for a
 monthly registration period for a truck-tractor or a commercial
 motor vehicle [that]:
 (1)  that is used exclusively to transport a seasonal
 agricultural product; [and]
 (2)  that would otherwise be registered for a vehicle
 registration year; and
 (3)  for which the owner can show proof of payment of
 the heavy vehicle use tax or exemption.
 (b)  The department shall [adopt forms for registration
 under this section. An applicant must indicate the number of months
 registration is applied for.
 [(c)  The department shall design,] prescribe [, and
 furnish] a registration receipt that is valid until the expiration
 of the designated registration period.
 (c) [(d)]  The registration fee for a registration under
 this section is computed at a rate of one-twelfth the annual
 registration fee under Section 502.253 [502.162], 502.255
 [502.163], or 502.433 [502.167], as applicable, multiplied by the
 number of months in the registration period specified in the
 application for the registration, which may not be less than one
 month or longer than six months.
 (d) [(e)     A person issued a registration under this section
 commits an offense if the person, during the registration period
 for the truck-tractor or commercial motor vehicle, uses the
 truck-tractor or commercial motor vehicle for a purpose other than
 to transport a seasonal agricultural product.
 [(f)     A truck-tractor or commercial motor vehicle may not be
 registered under this section for a registration period that is
 less than one month or longer than six months.
 [(g)]  For purposes of this section, "to transport a seasonal
 agricultural product" includes any transportation activity
 necessary for the production, harvest, or delivery of an
 agricultural product that is produced seasonally.
 SECTION 143.  Section 502.163, Transportation Code, is
 transferred to Subchapter I, Chapter 502, Transportation Code,
 redesignated as Section 502.433, Transportation Code, and amended
 to read as follows:
 Sec. 502.433 [502.163].  FEE: COMMERCIAL FARM MOTOR VEHICLE
 [USED PRIMARILY FOR FARM PURPOSES; OFFENSE].  (a)  The registration
 fee for a commercial motor vehicle as a farm vehicle is 50 percent
 of the applicable fee under Section 502.253 [502.162] if the
 vehicle's owner will use the vehicle for commercial purposes only
 to transport:
 (1)  the person's own poultry, dairy, livestock,
 livestock products, timber in its natural state, or farm products
 to market or another place for sale or processing;
 (2)  laborers from their place of residence to the
 owner's farm or ranch; or
 (3)  without charge, materials, tools, equipment, or
 supplies from the place of purchase or storage to the owner's farm
 or ranch exclusively for the owner's use or for use on the farm or
 ranch.
 (b)  A commercial motor vehicle may be registered under this
 section despite its use for transporting without charge the owner
 or a member of the owner's family:
 (1)  to attend church or school;
 (2)  to visit a doctor for medical treatment or
 supplies; or
 (3)  for other necessities of the home or family.
 (c)  Subsection (b) does not permit the use of a vehicle
 registered under this section in connection with gainful employment
 other than farming or ranching.
 (d)  The department shall provide distinguishing license
 plates for a vehicle registered under this section.
 [(e)     The owner of a commercial motor vehicle registered
 under this section commits an offense if the person uses or permits
 to be used the vehicle for a purpose other than one permitted by
 this section. Each use or permission for use in violation of this
 section is a separate offense.
 [(f)     An offense under this section is a misdemeanor
 punishable by a fine of not less than $25 or more than $200.]
 SECTION 144.  Section 502.351, Transportation Code, is
 transferred to Subchapter I, Chapter 502, Transportation Code,
 redesignated as Section 502.434, Transportation Code, and amended
 to read as follows:
 Sec. 502.434 [502.351].  FARM VEHICLES: EXCESS WEIGHT. (a)
 The owner of a registered commercial motor vehicle, truck-tractor,
 trailer, or semitrailer may obtain a short-term permit to haul
 loads of a weight more than that for which the vehicle is registered
 by paying an additional fee before the additional weight is hauled
 to transport:
 (1)  the person's own seasonal agricultural products to
 market or another point for sale or processing;
 (2)  seasonal laborers from their place of residence to
 a farm or ranch; or
 (3)  materials, tools, equipment, or supplies, without
 charge, from the place of purchase or storage to a farm or ranch
 exclusively for use on the farm or ranch.
 (b)  A permit may not be issued under this section for a
 period that is less than one month or that:
 (1)  is greater than one year; or
 (2)  extends beyond the expiration of the registration
 year for the vehicle.
 (c)  A permit issued under this section for a quarter must be
 for a calendar quarter.
 (d)  The fee for a permit under this section is a percentage
 of the difference between the registration fee otherwise prescribed
 [by this chapter] for the vehicle and the annual fee for the desired
 weight, as follows:
 One month (30 consecutive days) 10 percent  One month (30 consecutive days) 10 percent
 One month (30 consecutive days) 10 percent
 One quarter 30 percent  One quarter 30 percent
 One quarter 30 percent
 Two quarters 60 percent  Two quarters 60 percent
 Two quarters 60 percent
 Three quarters 90 percent  Three quarters 90 percent
 Three quarters 90 percent
 (e)  The department shall design, prescribe, and furnish a
 sticker, plate, or other means of indicating the additional weight
 and the registration period for each vehicle registered under this
 section.
 SECTION 145.  Section 502.188, Transportation Code, is
 transferred to Subchapter I, Chapter 502, Transportation Code,
 redesignated as Section 502.435, Transportation Code, and amended
 to read as follows:
 Sec. 502.435 [502.188].  CERTAIN SOIL CONSERVATION
 EQUIPMENT. (a)  The owner of a truck-tractor, semitrailer, or
 low-boy trailer used on a highway exclusively to transport the
 owner's soil conservation machinery or equipment used in clearing
 real property, terracing, or building farm ponds, levees, or
 ditches may register the vehicle for a fee equal to 50 percent of
 the fee otherwise prescribed by this chapter for the vehicle.
 (b)  An owner may register only one truck-tractor and only
 one semitrailer or low-boy trailer under this section.
 (c)  An owner [applying for registration under this section]
 must certify [submit a statement] that the vehicle is to be used
 only as provided by Subsection (a).
 (d)  The registration receipt issued for a vehicle
 registered under this section must be carried in or on the vehicle
 and [shall] state the nature of the operation for which the vehicle
 may be used. [The receipt must be carried at all times in or on the
 vehicle to permit ready inspection.]
 (e)  A vehicle to which this section applies that is operated
 on a public highway in violation of this section is considered to be
 operated while unregistered and is immediately subject to the
 applicable registration fees and penalties prescribed by this
 chapter.
 SECTION 146.  Chapter 502, Transportation Code, is amended
 by adding Subchapter J to read as follows:
 SUBCHAPTER J.  REGISTRATIONS EXEMPT FROM FEES
 SECTION 147.  Section 502.201, Transportation Code, as
 effective September 1, 2011, is transferred to Subchapter J,
 Chapter 502, Transportation Code, as added by this Act,
 redesignated as Section 502.451, Transportation Code, and amended
 to read as follows:
 Sec. 502.451 [502.201].  [LICENSE PLATES FOR] EXEMPT
 VEHICLES.  (a)  Before license plates are issued or delivered to
 the owner of a vehicle that is exempt by law from payment of
 registration fees, the department must approve the application for
 registration. The department may not approve an application if
 there is the appearance that:
 (1)  the vehicle was transferred to the owner or
 purported owner:
 (A)  for the sole purpose of evading the payment
 of registration fees; or
 (B)  in bad faith; or
 (2)  the vehicle is not being used in accordance with
 the exemption requirements.
 (b)  The department shall revoke the registration of a
 vehicle issued license plates under this section and may recall the
 plates if the vehicle is no longer:
 (1)  owned and operated by the person whose ownership
 of the vehicle qualified the vehicle for the exemption; or
 (2)  used in accordance with the exemption
 requirements.
 (c) [(d)]  The department shall provide by rule for the
 issuance of specially designated license plates for vehicles that
 are exempt by law. Except as provided by Subsection (f) [(g)], the
 license plates must bear the word "exempt."
 (d) [(e)]  A license plate under Subsection (c) [(d)] is not
 issued annually, but remains on the vehicle until:
 (1)  the registration is revoked as provided by
 Subsection (b); or
 (2)  the plate is lost, stolen, or mutilated.
 (e) [(f)]  A person who operates on a public highway a
 vehicle after the registration has been revoked is liable for the
 penalties for failing to register a vehicle.
 (f) [(g)]  The department shall provide by rule for the
 issuance of regularly designed license plates not bearing the word
 "exempt" for a vehicle that is exempt by law and that is:
 (1)  a law enforcement vehicle, if the agency certifies
 to the department that the vehicle will be dedicated to law
 enforcement activities;
 (2)  a vehicle exempt from inscription requirements
 under a rule adopted as provided by Section 721.003; or
 (3)  a vehicle exempt from inscription requirements
 under an order or ordinance adopted by a governing body of a
 municipality or commissioners court of a county as provided by
 Section 721.005, if the applicant presents a copy of the order or
 ordinance.
 SECTION 148.  Section 502.2015, Transportation Code, is
 transferred to Subchapter J, Chapter 502, Transportation Code, as
 added by this Act, redesignated as Section 502.452, Transportation
 Code, and amended to read as follows:
 Sec. 502.452 [502.2015].  LIMITATION ON ISSUANCE OF EXEMPT
 LICENSE PLATES; SEIZURE OF CERTAIN VEHICLES.  (a)  The department
 may not issue exempt license plates for a vehicle owned by the
 United States, this state, or a political subdivision of this state
 unless when application is made for registration of the vehicle,
 the person who under Section 502.453 [502.202] has authority to
 certify to the department that the vehicle qualifies for
 registration under that section also certifies in writing to the
 department that there is printed on each side of the vehicle, in
 letters that are at least two inches high or in an emblem that is at
 least 100 square inches in size, the name of the agency, department,
 bureau, board, commission, or officer of the United States, this
 state, or the political subdivision of this state that has custody
 of the vehicle. The letters or emblem must be of a color
 sufficiently different from the body of the vehicle to be clearly
 legible from a distance of 100 feet.
 (b)  The department may not issue exempt license plates for a
 vehicle owned by a person other than the United States, this state,
 or a political subdivision of this state unless, when application
 is made for registration of the vehicle, the person who under
 Section 502.453 [502.202] has authority to certify to the
 department that the vehicle qualifies for registration under that
 section also certifies in writing to the department that the name of
 the owner of the vehicle is printed on the vehicle in the manner
 prescribed by Subsection (a).
 (c)  A peace officer listed in Article 2.12, Code of Criminal
 Procedure, may seize a motor vehicle displaying exempt license
 plates if the vehicle is:
 (1)  operated on a public highway; and
 (2)  not identified in the manner prescribed by
 Subsection (a) or (b), unless the vehicle is covered by Subsection
 (f).
 (d)  A peace officer who seizes a motor vehicle under
 Subsection (c) may require that the vehicle be:
 (1)  moved to the nearest place of safety off the
 main-traveled part of the highway; or
 (2)  removed and placed in the nearest vehicle storage
 facility designated or maintained by the law enforcement agency
 that employs the peace officer.
 (e)  To obtain the release of the vehicle, in addition to any
 other requirement of law, the owner of a vehicle seized under
 Subsection (c) must:
 (1)  remedy the defect by identifying the vehicle as
 required by Subsection (a) or (b); or
 (2)  agree in writing with the law enforcement agency
 to provide evidence to that agency, before the 10th day after the
 date the vehicle is released, that the defect has been remedied by
 identifying the vehicle as required by Subsection (a) or (b).
 (f)  Subsections (a) and (b) do not apply to a vehicle to
 which Section 502.451(f) [502.201(g) or 502.206] applies.
 (g)  For purposes of this section, an exempt license plate is
 a license plate issued by the department that is plainly marked with
 the word "exempt."
 SECTION 149.  Section 502.202, Transportation Code, is
 transferred to Subchapter J, Chapter 502, Transportation Code, as
 added by this Act, redesignated as Section 502.453, Transportation
 Code, and amended to read as follows:
 Sec. 502.453 [502.202].  GOVERNMENT-OWNED VEHICLES; PUBLIC
 SCHOOL BUSES; FIRE-FIGHTING VEHICLES; COUNTY MARINE LAW
 ENFORCEMENT VEHICLES.  (a)  The owner of a motor vehicle, trailer,
 or semitrailer may annually apply for registration under Section
 502.451 [502.201] and is exempt from the payment of a registration
 fee under this chapter if the vehicle is:
 (1)  owned by and used exclusively in the service of:
 (A)  the United States;
 (B)  this state; or
 (C)  a county, municipality, or school district in
 this state;
 (2)  owned by a commercial transportation company and
 used exclusively to provide public school transportation services
 to a school district under Section 34.008, Education Code;
 (3)  designed and used exclusively for fire fighting;
 (4)  owned by a volunteer fire department and used
 exclusively in the conduct of department business; [or]
 (5)  privately owned and used by a volunteer
 exclusively in county marine law enforcement activities, including
 rescue operations, under the direction of the sheriff's department;
 or
 (6)  used by law enforcement under an alias for covert
 criminal investigations.
 (b)  An application for registration under this section must
 be made by a person having the authority to certify that the vehicle
 meets the exemption requirements prescribed by Subsection (a). An
 application for registration under this section of a fire-fighting
 vehicle described by Subsection (a)(3) must include a reasonable
 description of the vehicle and of any fire-fighting equipment
 mounted on the vehicle. An application for registration under this
 section of a vehicle described by Subsection (a)(5) must include a
 statement signed by a person having the authority to act for a
 sheriff's department that the vehicle is used exclusively in marine
 law enforcement activities under the direction of the sheriff's
 department.
 SECTION 150.  Section 502.203, Transportation Code, is
 transferred to Subchapter J, Chapter 502, Transportation Code, as
 added by this Act, redesignated as Section 502.454, Transportation
 Code, and amended to read as follows:
 Sec. 502.454 [502.203].  VEHICLES USED BY NONPROFIT DISASTER
 RELIEF ORGANIZATIONS.  (a)  The owner of a commercial motor vehicle,
 trailer, or semitrailer may apply for registration under Section
 502.451 [502.201] and is exempt from the payment of the
 registration fee that would otherwise be required by this chapter
 if the vehicle is owned and used exclusively for emergencies by a
 nonprofit disaster relief organization.
 (b)  An application for registration under this section must
 include:
 (1)  a statement by the owner of the vehicle that the
 vehicle is used exclusively for emergencies and has not been used
 for any other purpose;
 (2)  a statement signed by an officer of the nonprofit
 disaster relief organization that the vehicle has not been used for
 any purpose other than emergencies and qualifies for registration
 under this section; and
 (3)  a reasonable description of the vehicle and the
 emergency equipment included in the vehicle.
 (c)  An applicant for registration under this section must
 pay a fee of $5.
 (d)  A commercial motor vehicle registered under this
 section must display the name of the organization that owns it on
 each front door.
 (e)  A vehicle registered under this section must display at
 all times an appropriate license plate showing the vehicle's
 status.
 (f)  A vehicle registered under this section that is used for
 any purpose other than an emergency may not again be registered
 under this section.
 SECTION 151.  Section 502.2035, Transportation Code, is
 transferred to Subchapter J, Chapter 502, Transportation Code, as
 added by this Act, and redesignated as Section 502.455,
 Transportation Code, to read as follows:
 Sec. 502.455 [502.2035].  TRAILERS AND SEMITRAILERS OWNED BY
 RELIGIOUS ORGANIZATIONS.  (a)  A trailer or semitrailer may be
 registered without payment if the trailer or semitrailer is:
 (1)  owned by an organization that qualifies as a
 religious organization under Section 11.20, Tax Code; and
 (2)  used primarily for the purpose of transporting
 property in connection with the charitable activities and functions
 of the organization.
 (b)  An application for registration under this section must
 include a statement signed by an officer of the religious
 organization stating that the trailer or semitrailer qualifies for
 registration under this section.
 SECTION 152.  Section 502.204, Transportation Code, is
 transferred to Subchapter J, Chapter 502, Transportation Code, as
 added by this Act, redesignated as Section 502.456, Transportation
 Code, and amended to read as follows:
 Sec. 502.456 [502.204].  EMERGENCY SERVICES VEHICLES.  (a)  A
 vehicle may be registered without payment if:
 (1)  the vehicle is owned or leased by an emergency
 medical services provider that:
 (A)  is a nonprofit entity; or
 (B)  is created and operated by:
 (i)  a county;
 (ii)  a municipality; or
 (iii)  any combination of counties and
 municipalities through a contract, joint agreement, or other method
 provided by Chapter 791, Government Code, or other law authorizing
 counties and municipalities to provide joint programs; and
 (2)  the vehicle:
 (A)  is authorized under an emergency medical
 services provider license issued by the Department of State [Texas
 Board of] Health Services under Chapter 773, Health and Safety
 Code, and is used exclusively as an emergency medical services
 vehicle; or
 (B)  is an emergency medical services chief or
 supervisor vehicle and is used exclusively as an emergency services
 vehicle.
 (b)  A vehicle may be registered without payment of a
 registration fee if the vehicle:
 (1)  is owned by the Civil Air Patrol, Texas Wing; and
 (2)  is used exclusively as an emergency services
 vehicle by members of the Civil Air Patrol, Texas Wing.
 (c)  An application for registration under Subsection (a)
 must be accompanied by a copy of the license issued by the
 Department of State [Texas Board of] Health Services. An
 application for registration of an emergency medical services
 vehicle must include a statement signed by an officer of the
 emergency medical services provider that the vehicle is used
 exclusively as an emergency response vehicle and qualifies for
 registration under this section. An application for registration
 of an emergency medical services chief or supervisor vehicle must
 include a statement signed by an officer of the emergency medical
 services provider stating that the vehicle qualifies for
 registration under this section.
 (d)  An application for registration under Subsection (b)
 must include a statement signed by an officer of the Civil Air
 Patrol, Texas Wing, that the vehicle is used exclusively as an
 emergency services vehicle by members of the Civil Air Patrol,
 Texas Wing.
 (e)  The department must approve an application for
 registration under this section as provided by Section 502.451
 [502.201].
 SECTION 153.  Section 520.0225, Transportation Code, is
 transferred to Subchapter J, Chapter 502, Transportation Code, as
 added by this Act, redesignated as Section 502.457, Transportation
 Code, and amended to read as follows:
 Sec. 502.457 [520.0225].  PERSONS ON ACTIVE DUTY IN ARMED
 FORCES OF UNITED STATES. (a)  This section applies only to a used
 motor vehicle that is owned by a person who:
 (1)  is on active duty in the armed forces of the United
 States;
 (2)  is stationed in or has been assigned to another
 nation under military orders; and
 (3)  has registered the vehicle or been issued a
 license for the vehicle under the applicable status of forces
 agreement by:
 (A)  the appropriate branch of the armed forces of
 the United States; or
 (B)  the nation in which the person is stationed
 or to which the person has been assigned.
 (b)  The requirement [in Section 520.021] that a used vehicle
 be registered under the law of this state does not apply to a
 vehicle described by Subsection (a). In lieu of delivering the
 license receipt to the transferee of the vehicle, as required by
 Section 501.0721 [520.022], the person selling, trading, or
 otherwise transferring a used motor vehicle described by Subsection
 (a) shall deliver to the transferee:
 (1)  a letter written on official letterhead by the
 owner's unit commander attesting to the registration of the vehicle
 under Subsection (a)(3); or
 (2)  the registration receipt issued by the appropriate
 branch of the armed forces or host nation.
 (c)  A registration receipt issued by a host nation that is
 not written in the English language must be accompanied by:
 (1)  a written translation of the registration receipt
 in English; and
 (2)  an affidavit, in English and signed by the person
 translating the registration receipt, attesting to the person's
 ability to translate the registration receipt into English.
 SECTION 154.  Chapter 502, Transportation Code, is amended
 by adding Subchapter K to read as follows:
 SUBCHAPTER K.  OFFENSES AND PENALTIES
 SECTION 155.  Section 502.401, Transportation Code, is
 transferred to Subchapter K, Chapter 502, Transportation Code, as
 added by this Act, redesignated as Section 502.471, Transportation
 Code, and amended to read as follows:
 Sec. 502.471 [502.401].  GENERAL PENALTY.  (a)  A person
 commits an offense if the person violates a provision of this
 chapter and no other penalty is prescribed for the violation.
 (b)  This section does not apply to a violation of Section
 502.003, 502.042, 502.197 [502.101, 502.109, 502.112, 502.113,
 502.114, 502.152, 502.164], or 502.431 [502.282].
 (c)  Unless otherwise specified, an [An] offense under this
 section is a misdemeanor punishable by a fine not to exceed $200.
 SECTION 156.  Section 502.402, Transportation Code, is
 transferred to Subchapter K, Chapter 502, Transportation Code, as
 added by this Act, redesignated as Section 502.472, Transportation
 Code, and amended to read as follows:
 Sec. 502.472 [502.402].  OPERATION OF VEHICLE UNDER IMPROPER
 REGISTRATION [UNREGISTERED MOTOR VEHICLE].  [(a)]  A person commits
 an offense if the person operates a motor vehicle that has not been
 registered or registered for a class other than that to which the
 vehicle belongs as required by law. [An offense under this
 subsection is a misdemeanor punishable by a fine not to exceed
 $200.]
 SECTION 157.  Section 502.404, Transportation Code, is
 transferred to Subchapter K, Chapter 502, Transportation Code, as
 added by this Act, redesignated as Section 502.473, Transportation
 Code, and amended to read as follows:
 Sec. 502.473 [502.404].  OPERATION OF VEHICLE WITHOUT
 [LICENSE PLATE OR] REGISTRATION INSIGNIA. (a) [A person commits an
 offense if the person operates on a public highway during a
 registration period a passenger car or commercial motor vehicle
 that does not display two license plates, at the front and rear of
 the vehicle, that have been:
 [(1)  assigned by the department for the period; or
 [(2)     validated by a registration insignia issued by
 the department that establishes that the vehicle is registered for
 the period.
 [(b)]  A person commits an offense if the person operates on
 a public highway during a registration period a [passenger car or
 commercial] motor vehicle[, other than a vehicle assigned license
 plates for the registration period,] that does not properly display
 the registration insignia issued by the department that establishes
 that the license plates have been validated for the period.
 (b) [(c)]  A person commits an offense if the person operates
 on a public highway during a registration period a road tractor,
 motorcycle, trailer, or semitrailer that does not display [a
 license plate, attached to the rear of the vehicle, that has been:
 [(1)  assigned by the department for the period; or
 [(2)  validated by] a registration insignia issued by
 the department that establishes that the vehicle is registered for
 the period.
 (c)  This section does [(d)  Subsections (a) and (b) do] not
 apply to a dealer operating a vehicle as provided by law.
 (d) [(e)     An offense under this section is a misdemeanor
 punishable by a fine not to exceed $200.
 [(f)     A court may dismiss a charge brought under Subsection
 (a) if the defendant:
 [(1)     remedies the defect before the defendant's first
 court appearance; and
 [(2)  pays an administrative fee not to exceed $10.
 [(g)]  A court may dismiss a charge brought under Subsection
 (a) [(b)] if the defendant:
 (1)  shows that[:
 [(A)]  the [passenger car or commercial] motor
 vehicle was issued a registration insignia by the department that
 was attached to the motor vehicle, establishing that [establishes
 that] the vehicle was registered for the period during which the
 offense was committed; and
 [(B)     the registration insignia described in
 Paragraph (A) was attached to the passenger car or commercial motor
 vehicle before the defendant's first court appearance; and]
 (2)  pays an administrative fee not to exceed $10.
 SECTION 158.  Subchapter K, Chapter 502, Transportation
 Code, as added by this Act, is amended by adding Section 502.474 to
 read as follows:
 Sec. 502.474.  OPERATION OF ONE-TRIP PERMIT VEHICLE. 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 temporary tag.
 SECTION 159.  Section 502.409, Transportation Code, is
 transferred to Subchapter K, Chapter 502, Transportation Code, as
 added by this Act, redesignated as Section 502.475, Transportation
 Code, and amended to read as follows:
 Sec. 502.475  [502.409].  WRONG, FICTITIOUS, ALTERED, OR
 OBSCURED INSIGNIA [LICENSE PLATE]. (a) A person commits an offense
 if the person attaches to or displays on a motor vehicle a [number
 plate or] registration insignia that:
 (1)  is assigned to a different motor vehicle;
 (2)  is assigned to the vehicle under any other motor
 vehicle law other than by the department;
 (3)  is assigned for a registration period other than
 the registration period in effect; or
 (4)  is fictitious[;
 [(5)     has blurring or reflective matter that
 significantly impairs the readability of the name of the state in
 which the vehicle is registered or the letters or numbers of the
 license plate number at any time;
 [(6)     has an attached illuminated device or sticker,
 decal, emblem, or other insignia that is not authorized by law and
 that interferes with the readability of the letters or numbers of
 the license plate number or the name of the state in which the
 vehicle is registered; or
 [(7)     has a coating, covering, protective material, or
 other apparatus that:
 [(A)     distorts angular visibility or
 detectability;
 [(B)     alters or obscures one-half or more of the
 name of the state in which the vehicle is registered; or
 [(C)     alters or obscures the letters or numbers of
 the license plate number or the color of the plate].
 (b)  Except as provided by Subsection (d) [(f)], an offense
 under Subsection (a) is a misdemeanor punishable by a fine of not
 more than $200, unless it is shown at the trial of the offense that
 the owner knowingly altered or made illegible the letters, numbers,
 and other identification marks, in which case the offense is a Class
 B misdemeanor.
 (c)  [Subsection (a)(7) may not be construed to apply to:
 [(1)     a trailer hitch installed on a vehicle in a normal
 or customary manner;
 [(2)     a transponder, as defined by Section 228.057,
 that is attached to a vehicle in the manner required by the issuing
 authority;
 [(3)     a wheelchair lift or wheelchair carrier that is
 attached to a vehicle in a normal or customary manner;
 [(4)  a trailer being towed by a vehicle; or
 [(5)     a bicycle rack that is attached to a vehicle in a
 normal or customary manner.
 [(d)]  A court may dismiss a charge brought under Subsection
 (a)(3)[, (5), (6), or (7)] if the defendant:
 (1)  remedies the defect before the defendant's first
 court appearance; and
 (2)  pays an administrative fee not to exceed $10.
 (d) [(f)]  An offense under Subsection (a)(4) is a Class B
 misdemeanor.
 SECTION 160.  Subchapter K, Chapter 502, Transportation
 Code, as added by this Act, is amended by adding Sections 502.476,
 502.477, 502.478, and 502.479 to read as follows:
 Sec. 502.476.  ANNUAL PERMITS; OFFENSE. A person who
 violates Section 502.093 commits an offense.
 Sec. 502.477.  NONRESIDENT-OWNED VEHICLES USED TO TRANSPORT
 AGRICULTURAL PRODUCT; OFFENSE. (a)  A person operating a vehicle
 under a permit issued under Section 502.092 commits an offense if
 the person transports farm products to a place of market, storage,
 or processing or a railhead or seaport that is farther from the
 place of production or point of entry, as appropriate, than the
 distance provided for in the permit.
 (b)  An offense under this section is a misdemeanor
 punishable by a fine of not less than $25 or more than $200.
 Sec. 502.478.  COMMERCIAL MOTOR VEHICLE USED PRIMARILY FOR
 AGRICULTURAL PURPOSES; OFFENSE.  (a)  The owner of a commercial
 motor vehicle registered under Section 502.433 commits an offense
 if the person uses or permits the use of the vehicle for a purpose
 other than one allowed under Section 502.433. Each use or
 permission of use in violation of this section is a separate
 offense.
 (b)  An offense under this section is a misdemeanor
 punishable by a fine of not less than $25 or more than $200.
 Sec. 502.479.  SEASONAL AGRICULTURAL VEHICLE; OFFENSE. A
 person issued a registration under Section 502.432 commits an
 offense if the person, during the registration period, uses the
 truck-tractor or commercial motor vehicle for a purpose other than
 to transport a seasonal agricultural product.
 SECTION 161.  Section 520.014, Transportation Code, is
 transferred to Subchapter K, Chapter 502, Transportation Code, as
 added by this Act, redesignated as Section 502.480, Transportation
 Code, and amended to read as follows:
 Sec. 502.480  [520.014].  VIOLATION BY COUNTY
 ASSESSOR-COLLECTOR; PENALTY. (a)  A county assessor-collector
 commits an offense if the county assessor-collector knowingly
 accepts an application for the registration of a motor vehicle
 that:
 (1)  has had the original motor number or vehicle
 identification number removed, erased, or destroyed; and
 (2)  does not bear a motor number or vehicle
 identification number assigned by the department.
 (b)  An offense under this section is a misdemeanor
 punishable by a fine of not less than $10 and not more than $50.
 SECTION 162.  Chapter 502, Transportation Code, is amended
 by adding Subchapter L to read as follows:
 SUBCHAPTER L.  REGISTRATION AND TRANSFER OF USED VEHICLES
 SECTION 163.  Section 502.451, Transportation Code, is
 transferred to Subchapter L, Chapter 502, Transportation Code, as
 added by this Act, redesignated as Section 502.491, Transportation
 Code, and amended to read as follows:
 Sec. 502.491 [502.451].  TRANSFER OF VEHICLE REGISTRATION
 [AND REMOVAL OF LICENSE PLATES].  (a)  On the sale or transfer of a
 motor vehicle [to a dealer], [as defined by Section 503.001, who
 holds a general distinguishing number issued under Chapter 503, the
 dealer shall remove each license plate and] the registration
 insignia issued for the motor vehicle shall be removed.
 [(a-1)     On a sale or transfer of a motor vehicle to a person
 that does not hold a general distinguishing number issued under
 Chapter 503, the seller or transferor may remove each license plate
 and the registration insignia issued for the motor vehicle.]
 (b)  [A license plate removed from a motor vehicle under
 Subsection (a) or (a-1) must be:
 [(1)     disposed of in the manner specified by the
 department; or
 [(2)     transferred to another vehicle owned by the
 seller or transferor as provided by Section 502.452.
 [(c)]  The part of the registration period remaining at the
 time of the sale or transfer shall continue with the vehicle being
 sold or transferred and does not transfer with the license plates or
 registration validation insignia.  To continue the remainder of
 the registration period, the purchaser or transferee must file the
 documents required under Section 501.145 [520.031].
 SECTION 164.  Section 502.454, Transportation Code, is
 transferred to Subchapter L, Chapter 502, Transportation Code, as
 added by this Act, redesignated as Section 502.492, Transportation
 Code, and amended to read as follows:
 Sec. 502.492 [502.454].  TEMPORARY TRANSIT PERMIT FOR A
 VEHICLE PURCHASED [IN A PRIVATE PARTY TRANSACTION]. (a)  A
 purchaser [or transferee] may obtain from the department a
 temporary transit [single-trip] permit to operate a motor vehicle:
 (1)  that is subject to registration in this state;
 (2)  from which the license plates and the registration
 insignia have been removed as authorized by Section 502.491 or
 504.901 [502.451(a-1)]; and
 (3)  that is not authorized to travel on a public
 roadway because the required license plates and the registration
 insignia are not attached to the vehicle.
 (b)  The department may issue the permit in accordance with
 this section.
 (c)  A permit issued under this section is valid for one trip
 between the point of origin and the destination and those
 intermediate points specified in the permit.
 (d)  A permit issued under this section may not be valid for
 longer than a five-day period.
 (e)  A person may obtain a permit under this section by
 applying, as [on a form] provided by the department, to the
 department.  Application may be made using the department's
 Internet website.
 (f)  A person is eligible to receive only one permit under
 this section for a motor vehicle.
 (g)  A permit receipt issued under this section must be in
 [on] a manner [form] provided by the department. The receipt must
 contain the information required by this section and shall be
 carried in the vehicle at all times during which it is valid.
 (h)  The department may refuse to issue a permit under this
 section for any vehicle if in the department's opinion the
 applicant has been involved in operations that constitute an abuse
 of the privilege granted under this section.
 SECTION 165.  The heading to Chapter 504, Transportation
 Code, is amended to read as follows:
 CHAPTER 504. [SPECIALTY] LICENSE PLATES
 SECTION 166.  Section 504.001(a), Transportation Code, is
 amended by adding Subdivision (3) to read as follows:
 (3)  "Purchaser" and "seller" have the meanings
 assigned by Section 501.002.
 SECTION 167.  Section 504.004, Transportation Code, is
 redesignated as Section 504.0011, Transportation Code, and amended
 to read as follows:
 Sec. 504.0011  [504.004].  RULES [AND FORMS]. The board may
 adopt rules [and the department may issue forms] to implement and
 administer this chapter.
 SECTION 168.  Section 504.002, Transportation Code, is
 amended to read as follows:
 Sec. 504.002.  [PROVISIONS OF] GENERAL PROVISIONS
 [APPLICABILITY]. Unless expressly provided by this chapter or by
 department rule:
 (1)  except for license plates specified as exempt,
 [any vehicle is eligible to be issued specialty license plates,
 provided that the department may vary the design of a license plate
 to accommodate or reflect its use on a motor vehicle other than a
 passenger car or light truck;
 [(2)     an application for specialty license plates must
 be submitted in the manner specified by the department, provided
 that if issuance of a specialty license plate is limited to
 particular persons or motor vehicles, the application must be
 accompanied by evidence satisfactory to the department that the
 applicant or the applicant's vehicle is eligible;
 [(3)]  the fee for issuance of a [specialty] license
 plate, including replacement plates, is in addition to each other
 fee that is paid for [or] at the time of the registration of the
 motor vehicle and shall be deposited to the credit of the state
 highway fund;
 (2)  if the registration period is greater than 12
 months, the expiration date of a specialty license plate, symbol,
 tab, or other device shall be aligned with the registration period,
 and the specialty plate fee shall be adjusted pro rata, except that
 if the statutory annual fee for a specialty license plate is $5 or
 less, it may not be prorated;
 (3)  [(4)     each fee described by this chapter is an
 annual fee, provided that the department may prorate the fee for a
 specialty license plate fee on a monthly basis to align the license
 plate fee to the registration period for the motor vehicle for which
 the license plate was issued, and if a fee is prorated the
 allocation of the fee by this chapter to an account or fund shall be
 prorated in proportion;
 [(5)]  the department is the exclusive owner of the
 design of each [specialty] license plate;
 (4)  [(6)     the director may refuse to issue a specialty
 license plate with a design or alphanumeric pattern that the
 director considers potentially objectionable to one or more members
 of the public and the director's refusal may not be overturned in
 the absence of an abuse of discretion;
 [(7)     for each specialty license plate that is issued
 through a county tax assessor-collector and for which the
 department is allocated a portion of a fee for administrative
 costs, the department shall credit 50 cents from its administrative
 costs to the county treasurer of the applicable county, who shall
 credit the money to the general fund of the county to defray the
 costs to the county of administering this chapter;
 [(8)]  if a [specialty] license plate is lost, stolen,
 or mutilated, an application for a replacement plate must be
 accompanied by the fee prescribed by Section 502.060
 [502.184(a)(2);
 [(9)     if the owner of a motor vehicle for which a
 specialty license plate is issued disposes of the vehicle or for any
 reason ceases to be eligible for that specialty license plate, the
 owner shall return the specialty license plate to the department];
 and
 (5)  the department shall prepare the designs and
 specifications of license plates [(10)     a person who is issued a
 specialty license plate may not transfer it to another person or
 vehicle without first receiving approval from the department].
 SECTION 169.  Section 504.103, Transportation Code, is
 transferred to Subchapter A, Chapter 504, Transportation Code,
 redesignated as Section 504.005, Transportation Code, and amended
 to read as follows:
 Sec. 504.005  [504.103].  DESIGN AND ALPHANUMERIC PATTERN.
 (a) The department has sole control over the design, typeface,
 color, and alphanumeric pattern for all [a personalized] license
 plates [plate].
 (b)  The department shall prepare the designs and
 specifications of license plates and devices selected by the board
 to be used as a unique identifier.
 (c)  The department shall design each license plate to
 include a design at least one-half inch wide that represents in
 silhouette the shape of Texas and that appears between letters and
 numerals. The department may omit the silhouette of Texas from
 specially designed license plates.
 (d)  To promote highway safety, each license plate shall be
 made with a reflectorized material that provides effective and
 dependable brightness for the period for which the plate is issued.
 SECTION 170.  Subchapter A, Chapter 504, Transportation
 Code, is amended by adding Section 504.0051 to read as follows:
 Sec. 504.0051.  PERSONALIZED LICENSE PLATES. (a) The
 department shall issue personalized license plates, including
 those issued in accordance with the marketing vendor as provided in
 Subchapter J. The department may not issue more than one set of
 license plates with the same alphanumeric pattern.
 (b)  The department may not issue a replacement set of
 personalized plates to the same person before the period set by rule
 unless the applicant for issuance of replacement plates pays the
 fee required by Section 504.007.
 SECTION 171.  Section 502.053, Transportation Code, is
 transferred to Subchapter A, Chapter 504, Transportation Code,
 redesignated as Section 504.006, Transportation Code, and amended
 to read as follows:
 Sec. 504.006  [502.053].  COST OF MANUFACTURING [LICENSE
 PLATES OR REGISTRATION INSIGNIA]. (a)  The department shall
 reimburse the Texas Department of Criminal Justice for the cost of
 manufacturing license plates [or registration insignia] as [the
 license plates or insignia and] the invoices [invoice] for the
 license plates [or insignia] are delivered to the department.
 (b)  When manufacturing is started, the Texas Department of
 Criminal Justice and [,] the department, [and the comptroller,]
 after negotiation, shall set the price to be paid for each license
 plate [or insignia].  The price must be determined from:
 (1)  the cost of metal, paint, and other materials
 purchased;
 (2)  the inmate maintenance cost per shift [day];
 (3)  overhead expenses;
 (4)  miscellaneous charges; and
 (5)  a previously agreed upon [approved] amount of
 profit for the work.
 [(c)     The annual profit received by the Texas Department of
 Criminal Justice from all contracts for the manufacturing of
 license plates or related manufacturing may not be less than the
 profit received by the Texas Department of Corrections for
 manufacturing license plates for use in 1974.]
 SECTION 172.  Section 502.1841, Transportation Code, as
 effective September 1, 2011, is transferred to Subchapter A,
 Chapter 504, Transportation Code, redesignated as Section 504.007,
 Transportation Code, and amended to read as follows:
 Sec. 504.007  [502.1841].  REPLACEMENT LICENSE PLATES. (a)
 The owner of a registered motor vehicle may obtain replacement
 license plates for the vehicle by:
 (1)  certifying that the replacement plates will not be
 used on any other vehicle owned or operated by the person making the
 statement;
 (2)  paying a fee of $6 plus the fee required by Section
 502.356(a) [502.1705(a)] for each set of replacement license
 plates, unless otherwise specified by law; and
 (3)  returning to the department each license plate in
 the owner's possession for which a replacement license plate is
 obtained.
 (b)  Replacement license plates may not be issued except as
 provided by this section.
 (c)  A county assessor-collector shall retain $2.50 of each
 fee collected under this section and forward the remainder of the
 fee to the department.
 (d)  The fee required by this section applies to the issuance
 of license plates for a transferred used vehicle for which the
 registration and license plates were not transferred under Section
 504.901 [Subchapter I].
 (e)  Replacement license plates may be used in the
 registration year in which the plates are issued and during each
 succeeding year of the registration period as set by rule if the
 registration insignia is properly displayed on the vehicle.
 (f)  Subsection (e) does not apply to the issuance of
 specialized license plates for limited distribution, including
 exempt plates for governmental entities and temporary registration
 plates.
 SECTION 173.  Subchapter A, Chapter 504, Transportation
 Code, is amended by adding Section 504.008 to read as follows:
 Sec. 504.008.  SPECIALTY LICENSE PLATES.  (a)  The
 department shall prepare the designs and specifications of
 specialty license plates.
 (b)  Any motor vehicle other than a vehicle manufactured for
 off-highway use only is eligible to be issued specialty license
 plates, provided that the department may vary the design of a
 license plate to accommodate or reflect its use on a motor vehicle
 other than a passenger car or light truck.
 (c)  An application for specialty license plates must be
 submitted in the manner specified by the department, provided that
 if issuance of a specialty license plate is limited to particular
 persons or motor vehicles, the application must be accompanied by
 evidence satisfactory to the department that the applicant or the
 applicant's vehicle is eligible.
 (d)  Each fee described by this chapter is an annual fee,
 provided that the department may prorate the fee for a specialty
 license plate fee on a monthly basis to align the license plate fee
 to the registration month for the motor vehicle for which the
 license plate was issued, and if a fee is prorated the allocation of
 the fee by this chapter to an account or fund shall be prorated in
 proportion.
 (e) The director or the director's designee may refuse to
 issue a specialty license plate with a design or alphanumeric
 pattern that the director or designee considers potentially
 objectionable to one or more members of the public and the director
 or designee's refusal may not be overturned in the absence of an
 abuse of discretion.
 (f)  For each specialty license plate that is issued by a
 county assessor-collector and for which the department is allocated
 a portion of the fee for administrative costs, the department shall
 credit 50 cents from its administrative costs to the county
 treasurer of the applicable county, who shall credit the money to
 the general fund of the county to defray the costs to the county of
 administering this chapter.
 (g)  If the owner of a motor vehicle for which a specialty
 license plate is issued disposes of the vehicle or for any reason
 ceases to be eligible for that specialty license plate, the owner
 shall return the specialty license plate to the department.
 (h)  A person who is issued a specialty license plate may not
 transfer the plate to another person or vehicle unless the
 department approves the transfer.
 SECTION 174.  Section 504.003, Transportation Code, is
 redesignated as Section 504.009, Transportation Code, and amended
 to read as follows:
 Sec. 504.009  [504.003].  SOUVENIR LICENSE PLATES. (a) The
 department may issue a souvenir version of any specialty license
 plate for any vehicle[, including a motorcycle].
 (b)  The fee for a single souvenir license plate is $20.  The
 fee shall be deposited to the credit of the state highway fund
 unless the souvenir license plate is a replica of a specialty
 license plate issued under Subchapter G or I for which the fee is
 deposited to an account other than the state highway fund, in which
 case:
 (1)  $10 of the fee for the souvenir license plate shall
 be deposited to the credit of the designated account; and
 (2)  $10 of the fee for the souvenir license plate shall
 be deposited to the credit of the state highway fund.
 (c)  If a souvenir license plate issued before September 1,
 2009, is personalized, the fee for the plate is $40.  Of the fee:
 (1)  $20 shall be deposited to the credit of the state
 highway fund;
 (2)  $10 shall be deposited to the credit of the
 designated account if the souvenir license plate is a replica of a
 specialty license plate issued under Subchapter G or I for which the
 fee is deposited to a designated account other than the state
 highway fund; and
 (3)  the remainder shall be deposited to the credit of
 the general revenue fund.
 (c-1)  The fee for a souvenir license plate issued on or
 after September 1, 2009, is the amount established under Section
 504.851(c).
 (d)  A souvenir license plate may not be used on a motor
 vehicle[, including a motorcycle,] and is not an insignia of
 registration for a motor vehicle. Each souvenir license plate must
 be identified by the department in a way that identifies it to law
 enforcement officers and others as a souvenir license plate.
 (e)  A beneficiary of a specialty license plate issued under
 Subchapter G or I, as designated by the applicable section of those
 subchapters, may purchase the specialty license plates, in minimum
 amounts determined by the department [boxes of 25], for use or
 resale by the beneficiary.  The beneficiary shall pay the required
 fee per plate, less the amount of the fee that would be deposited to
 the credit of the designated account.
 SECTION 175.  Subchapter A, Chapter 504, Transportation
 Code, is amended by adding Section 504.010 to read as follows:
 Sec. 504.010.  ISSUANCE AND PLACEMENT OF LICENSE PLATE. (a)
 On payment of the prescribed fee, an applicant for motor vehicle
 registration shall be issued a license plate or set of plates.
 (b)  Subject to Section 504.901, the department shall issue
 only one license plate or set of plates for a vehicle during the
 registration period set by rule.
 (c)  The board may adopt rules regarding the placement of
 license plates for a motor vehicle, road tractor, motorcycle,
 trailer, or semitrailer.
 SECTION 176.  Sections 504.201(b), (d), and (g),
 Transportation Code, are amended to read as follows:
 (b)  The department shall issue specialty license plates for
 a motor vehicle that:
 (1)  has a gross vehicle weight [manufacturer's rated
 carrying capacity] of 18,000 pounds [two tons] or less; and
 (2)  is regularly operated for noncommercial use by or
 for the transportation of a person with a permanent disability.
 (d)  Except as provided by Subsection (d-1), the initial
 application for specialty license plates under this section must be
 accompanied by a written statement from a physician who is licensed
 to practice medicine in this state or in a state adjacent to this
 state or who is authorized by applicable law to practice medicine in
 a hospital or other health facility of the Department of Veterans
 Affairs. If the applicant has a mobility problem caused by a
 disorder of the foot, the written statement may be issued by a
 person licensed to practice podiatry in this state or a state
 adjacent to this state. In this subsection, "podiatry" has the
 meaning assigned by Section 681.001. The statement must certify
 that the person making the application or on whose behalf the
 application is made is legally blind or has a mobility problem that
 substantially impairs the person's ability to ambulate. The
 statement must also certify whether a mobility problem is temporary
 or permanent. A written statement is not required as acceptable
 medical proof if:
 (1)  the person with a disability:
 (A)  has had a limb, hand, or foot amputated; or
 (B)  must use a wheelchair; and
 (2)  the applicant executes a statement [and the county
 assessor-collector processing the application execute an
 affidavit] attesting to the person's disability before the county
 assessor-collector.
 (g)  In addition to a license plate issued under this
 section, an eligible person is entitled to be issued a set of the
 license plates for each motor vehicle owned by the person that has a
 gross vehicle weight [carrying capacity] of 18,000 pounds [two
 tons] or less and is equipped with special equipment that:
 (1)  is designed to allow a person who has lost the use
 of one or both of the person's legs to operate the vehicle; and
 (2)  is not standard equipment on that type of vehicle
 for use by a person who has use of both legs.
 SECTION 177.  Section 504.202, Transportation Code, is
 amended by amending Subsections (b) and (f) and adding Subsection
 (i) to read as follows:
 (b)  A veteran of the United States armed forces is entitled
 to register, for the person's own use, motor vehicles under this
 section if:
 (1)  the person has suffered, as a result of military
 service:
 (A)  at least a 50 percent service-connected
 disability; or
 (B)  a 40 percent service-connected disability
 because of the amputation of a lower extremity;
 (2)  the person receives compensation from the United
 States because of the disability; and
 (3)  the motor vehicle:
 (A)  is owned by the person; and
 (B)  has a gross vehicle weight [manufacturer's
 rated carrying capacity] of 18,000 pounds [two tons] or less.
 (f)  The fee for the first set of license plates is $3. There
 is no fee for each additional set of license plates. [If a license
 plate is lost, stolen, or mutilated, on payment of a $1 fee the
 department shall issue a set of replacement plates.]
 (i)  A license plate with the letters "DV" may be
 personalized with up to four characters.
 SECTION 178.  Section 504.203(b), Transportation Code, is
 amended to read as follows:
 (b)  An application for license plates under this section
 must be accompanied by a written statement acknowledged [signed] by
 the administrator or manager of the institution, facility, or
 retirement community certifying that the institution, facility, or
 retirement community regularly transports, as a part of the
 services that the institution, facility, or retirement community
 provides, one or more eligible persons who reside in the
 institution, facility, or retirement community. The department
 shall determine the eligibility of the institution, facility, or
 retirement community on the evidence the applicant provides.
 SECTION 179.  Section 504.3011, Transportation Code, is
 amended to read as follows:
 Sec. 504.3011.  DESIGN OF CERTAIN LICENSE PLATES FOR THE
 MILITARY. [(a)     License plates issued under Section 504.303 must
 at a minimum bear a color depiction of the emblem of the appropriate
 branch of the United States armed forces.
 [(b)     License plates issued under Section 504.308(a) or
 504.315(e), (f), or (g) must at a minimum bear a color depiction of
 the appropriate medal.
 [(c)]  The department shall design military license plates
 that bear a color depiction of the emblem of the appropriate branch
 of the United States armed forces or a color depiction of the
 appropriate medal as provided by the United States Department of
 Defense [to which this section applies in consultation with
 veterans organizations].
 SECTION 180.  Section 504.315(d), Transportation Code, is
 amended to read as follows:
 (d)  The department shall issue specialty license plates for
 survivors of the attack on Pearl Harbor on December 7, 1941. The
 license plates must include the words "Pearl Harbor Survivor." [and
 must be consecutively numbered.] A person is eligible if the
 person:
 (1)  served in the United States armed forces;
 (2)  was stationed in the Hawaiian Islands on December
 7, 1941; and
 (3)  survived the attack on Pearl Harbor on December 7,
 1941.
 SECTION 181.  Subchapter E, Chapter 504, Transportation
 Code, is amended by adding Section 504.400 to read as follows:
 Sec. 504.400.  FEES FOR CERTAIN RESTRICTED PLATES. The
 department shall issue, without charge, not more than three sets of
 specialty license plates under this subchapter.
 SECTION 182.  Sections 504.401(a) and (c), Transportation
 Code, are amended to read as follows:
 (a)  The department shall issue [without charge] specialty
 license plates that include the words "State Official" to a state
 official. [The license plates must include the words "State
 Official."]
 (c)  The registration remains [license plates remain] valid
 until December 31 of each year.
 SECTION 183.  Section 504.402(a), Transportation Code, is
 amended to read as follows:
 (a)  The department shall issue [without charge] specialty
 license plates to [for] members of congress, which [. License
 plates issued under this section] must include the words "U.S.
 Congress."
 SECTION 184.  Section 504.403(a), Transportation Code, is
 amended to read as follows:
 (a)  The department shall issue [without charge] specialty
 license plates for a current or visiting state or federal judge.
 The license plates must include the words "State Judge" or "U.S.
 Judge," as appropriate.
 SECTION 185.  Section 504.403(d)(2), Transportation Code,
 is amended to read as follows:
 (2)  "State judge" means:
 (A)  a justice of the supreme court;
 (B)  a judge of the court of criminal appeals;
 (C)  a judge of a court of appeals of this state;
 (D)  a district court judge;
 (E)  a presiding judge of an administrative
 judicial district; or
 (F)  a statutory county court judge.
 SECTION 186.  Section 504.404(a), Transportation Code, is
 amended to read as follows:
 (a)  The department shall issue [without charge] specialty
 license plates to [for] current federal administrative law judges
 that [. The license plates shall] bear the words "U.S. A. L.
 Judge."
 SECTION 187.  Section 504.405(a), Transportation Code, is
 amended to read as follows:
 (a)  The department shall issue [without charge] specialty
 license plates for current county judges of this state that[. The
 license plates shall] bear the words "County Judge."
 SECTION 188.  Section 504.406, Transportation Code, is
 amended to read as follows:
 Sec. 504.406.  TEXAS CONSTABLES. The department shall issue
 [without charge] specialty license plates for Texas constables
 that[. The license plates shall] bear the words "Texas Constable."
 SECTION 189.  Section 504.412, Transportation Code, is
 redesignated as Section 504.4061, Transportation Code, and amended
 to read as follows:
 Sec. 504.4061  [504.412].  FOREIGN ORGANIZATION VEHICLES.
 (a)  The department shall issue specialty license plates for an
 instrumentality established by a foreign government recognized by
 the United States before January 1, 1979, that is without official
 representation or diplomatic relations with the United States. The
 license plates must include the words "Foreign Organization" and
 shall remain valid for seven [five] years.
 (b)  A person entitled to specialty license plates under this
 section may register the vehicle without payment of any fee paid for
 or at the time of registration.
 SECTION 190.  Section 504.509, Transportation Code, as
 effective September 1, 2011, is transferred to Subchapter E,
 Chapter 504, Transportation Code, and redesignated as Section
 504.415, Transportation Code, to read as follows:
 Sec. 504.415  [504.509].  VEHICLES CARRYING MOBILE AMATEUR
 RADIO EQUIPMENT. The department shall issue specialty license
 plates for a person who holds an amateur radio station license
 issued by the Federal Communications Commission and who operates
 receiving and transmitting mobile amateur radio equipment. The
 license plates shall include the person's amateur call letters as
 assigned by the Federal Communications Commission. A person may
 register more than one vehicle equipped with mobile amateur radio
 equipment under this section, and the department shall issue
 license plates that include the same amateur call letters for each
 vehicle.
 SECTION 191.  The heading to Subchapter F, Chapter 504,
 Transportation Code, is amended to read as follows:
 SUBCHAPTER F. SPECIALTY LICENSE PLATES WITH RESTRICTED
 DISTRIBUTION AND REGULAR LICENSE PLATE FEES [FOR CERTAIN VEHICLES]
 SECTION 192.  Section 504.502(g), Transportation Code, is
 amended to read as follows:
 (g)  A person entitled to specialty license plates or to
 department approval under this section may register the vehicle
 without payment of any fees paid for or at the time of registration
 except the fee for the license plate. [An owner of a vehicle
 registered under this subsection who violates this section commits
 an offense. An offense under this section is a misdemeanor
 punishable by a fine of not less than $5 or more than $200.]
 SECTION 193.  Section 504.503, Transportation Code, is
 amended to read as follows:
 Sec. 504.503.  MUNICIPAL, MOTOR, AND PRIVATE BUSES.
 [(a)]  The department shall issue without charge specialty license
 plates for municipal buses, motor buses, and private buses. The
 license plates must include the words "City Bus," "Motor Bus," or
 "Private Bus," as appropriate.
 [(b)  In this section, "private bus" means a bus that:
 [(1)  is not operated for hire; and
 [(2)     is not classified as a municipal bus or a motor
 bus.]
 SECTION 194.  The heading to Section 504.506, Transportation
 Code, is amended to read as follows:
 Sec. 504.506.  [CERTAIN] LOG LOADER VEHICLES.
 SECTION 195.  Sections 504.407 and 504.408, Transportation
 Code, are transferred to Subchapter F, Chapter 504, Transportation
 Code, and redesignated as Sections 504.511 and 504.512,
 Transportation Code, to read as follows:
 Sec. 504.511  [504.407].  PEACE OFFICERS WOUNDED OR KILLED
 IN LINE OF DUTY. (a)  The department shall issue specialty license
 plates for:
 (1)  a person wounded in the line of duty as a peace
 officer; or
 (2)  a surviving spouse, parent, brother, sister, or
 adult child, including an adopted child or stepchild, of a person
 killed in the line of duty as a peace officer.
 (b)  License plates issued under this section must include
 the words "To Protect and Serve" above an insignia depicting a
 yellow rose superimposed over the outline of a badge.
 (c)  The fee for issuance of the license plates is $20.
 (d)  In this section, "peace officer" has the meaning
 assigned by Section 1.07, Penal Code.
 Sec. 504.512  [504.408].  GOLD STAR MOTHER, SPOUSE, OR
 FAMILY MEMBER. (a)  The department shall issue a specialty license
 plate for the mother, surviving spouse, or immediate family member
 of a person who died while serving in the United States armed
 forces.  License plates issued under this section must include the
 words "Gold Star Mother," "Gold Star Spouse," or "Gold Star Family"
 and a gold star.  A person may not be issued more than one set of the
 license plates at a time.
 (a-1)  In this section "immediate family member" means the
 parent, child, or sibling of a person who died while serving in the
 United States armed forces.
 (b)  The fee for issuance of the license plates is $10.
 SECTION 196.  Section 504.409, Transportation Code, as
 effective September 1, 2011, and as amended by Chapters 1136 (H.B.
 2553) and 1381 (S.B. 1616), Acts of the 81st Legislature, Regular
 Session, 2009, is transferred to Subchapter F, Chapter 504,
 Transportation Code, redesignated as Section 504.513,
 Transportation Code, and reenacted and amended to read as follows:
 Sec. 504.513  [504.409].  FIREFIGHTERS. (a) The department
 shall issue specialty license plates for:
 (1)  volunteer firefighters certified by:
 (A)  the Texas Commission on Fire Protection; or
 (B)  the State Firemen's and Fire Marshals'
 Association of Texas; and
 (2)  fire protection personnel as that term is defined
 by Section 419.021, Government Code.
 (b) [(c)]  A person may be issued not more than three sets of
 license plates.
 SECTION 197.  Sections 504.410 and 504.411, Transportation
 Code, are transferred to Subchapter F, Chapter 504, Transportation
 Code, redesignated as Sections 504.514 and 504.515, Transportation
 Code, and amended to read as follows:
 Sec. 504.514  [504.410].  EMERGENCY MEDICAL SERVICES
 PERSONNEL. (a)  The department shall issue specialty license
 plates for emergency medical services personnel certified by the
 [Texas] Department of State Health Services under Subchapter C,
 Chapter 773, Health and Safety Code.
 (b)  The fee for issuance of the license plates is $8.
 (c)  A person may be issued only one set of the license
 plates.
 Sec. 504.515  [504.411].  HONORARY CONSULS. (a)  The
 department shall issue specialty license plates for a person who is
 an honorary consul authorized by the United States to perform
 consular duties. License plates issued under this section must
 include the words "Honorary Consul."
 (b)  The fee for issuance of the license plates is $40.
 SECTION 198.  Subchapter F, Chapter 504, Transportation
 Code, is amended by adding Section 504.516 to read as follows:
 Sec. 504.516.  RENTAL TRAILER OR TRAVEL TRAILER FEE:
 TRAILER OR SEMITRAILER. (a) The department may issue specially
 designed license plates for rental trailers and travel trailers
 that include, as appropriate, the words "rental trailer" or "travel
 trailer."
 (b)  In this section:
 (1)  "Rental fleet" means vehicles that are designated
 in the manner prescribed by the department as a rental fleet.
 (2)  "Rental trailer" means a utility trailer.
 (3)  "Travel trailer" has the meaning assigned by
 Section 501.002.
 SECTION 199.  Section 504.614(a), Transportation Code, is
 amended to read as follows:
 (a)  The department may issue specialty license plates that
 include the name and insignia of a professional sports team located
 in this state. The department shall design the license plates in
 consultation with the professional sports team and may enter a
 trademark license with the professional sports team or its league
 to implement this section. A license plate may be issued under this
 section only for a professional sports team that:
 (1)  certifies to the department that the requirements
 of Section 504.702 are met [it has determined that at least 3,500
 persons will apply for the plates]; and
 (2)  plays its home games in a facility constructed or
 operated, in whole or in part, with public funds.
 SECTION 200.  Section 504.615, Transportation Code, is
 amended by amending Subsections (a) and (e) and adding Subsection
 (d-1) to read as follows:
 (a)  The department shall issue specialty license plates
 that include the name and insignia of a college. The department
 shall design the license plates in consultation with the applicable
 college. The department may issue a license plate under this
 section only for a college that certifies to the department that the
 requirements of Section 504.702 are met [it has determined that at
 least 1,500 persons will apply for the plates].
 (d-1)  If the fee is for the issuance of license plates for a
 college described by Subsection (e)(3), the money:
 (1)  shall be deposited to the credit of the Texas
 Higher Education Coordinating Board; and
 (2)  is supplementary and is not income for purposes of
 reducing general revenue appropriations to that board.
 (e)  In this section, "college" means:
 (1)  an institution of higher education as defined by
 Section 61.003, Education Code; [or]
 (2)  a private college or university described by
 Section 61.222, Education Code; or
 (3)  a college or university that is not located in this
 state.
 SECTION 201.  Section 504.616(a), Transportation Code, is
 amended to read as follows:
 (a)  The department shall issue specialty license plates
 including the words "Texas Reads" that ["Texas Reads." The
 department shall design the license plates to] incorporate one or
 more submissions from middle school students in a competition
 conducted by the department.
 SECTION 202.  The heading to Section 504.642, Transportation
 Code, is amended to read as follows:
 Sec. 504.642.  TEXAS COUNCIL OF [COUNTY] CHILD WELFARE
 BOARDS [BOARD] LICENSE PLATES.
 SECTION 203.  Section 504.642(a), Transportation Code, is
 amended to read as follows:
 (a)  The department shall issue Texas Council of [County]
 Child Welfare Boards specialty license plates. The department
 shall design the license plates in consultation with the Texas
 Council of Child Welfare Boards, Inc.
 SECTION 204.  Section 504.647(a), Transportation Code, is
 amended to read as follows:
 (a)  The department shall issue Fight Terrorism specialty
 license plates that [. The license plates shall] include a
 pentagon-shaped border surrounding:
 (1)  the date "9-11-01" with the likeness of the World
 Trade Center towers forming the "11";
 (2)  the likeness of the United States flag; and
 (3)  the words "Fight Terrorism."
 SECTION 205.  Section 504.413, Transportation Code, is
 transferred to Subchapter G, Chapter 504, Transportation Code, and
 redesignated as Section 504.659, Transportation Code, to read as
 follows:
 Sec. 504.659  [504.413].  MEMBERS OF AMERICAN LEGION.
 (a)  The department shall issue specialty license plates for
 members of the American Legion. The license plates shall include
 the words "Still Serving America" and the emblem of the American
 Legion. The department shall design the license plates in
 consultation with the American Legion.
 (b)  The fee for the license plates is $30.
 (c)  After deduction of $8 to reimburse the department for
 its administrative costs, the remainder of the fee for issuance of
 the license plates shall be deposited to the credit of the American
 Legion, Department of Texas account in the state treasury. Money in
 the account may be used only by the Texas Veterans Commission in
 making grants to the American Legion Endowment Fund for
 scholarships and youth programs sponsored by the American Legion,
 Department of Texas.
 SECTION 206.  Section 504.702, Transportation Code, is
 amended by amending Subsection (b) and adding Subsections (e) and
 (f) to read as follows:
 (b)  The department may manufacture the specialty license
 plates only if a request for manufacture of the license plates is
 filed with the department.  The request must be:
 (1)  made in [on] a manner prescribed [form adopted] by
 the department;
 (2)  filed before the fifth anniversary of the
 effective date of the law that authorizes the issuance of the
 specialty license plates; and
 (3)  accompanied by[:
 [(A)]  a deposit of $8,000[; or
 [(B)     applications for issuance of at least 1,900
 sets of the license plates plus the fees for issuance of that number
 of sets].
 (e)  The department may issue license plates under:
 (1)  Section 504.614 for a particular professional
 sports team only if $8,000 has been deposited with the department
 for that sports team; or
 (2)  Section 504.615 for a particular institution of
 higher education or private college or university only if $8,000
 has been deposited with the department for that institution,
 college, or university.
 (f)  Money deposited with the department under Subsection
 (b)(3) or (e) shall be returned by the department to the person who
 made the deposit after 800 sets of plates have been issued.
 SECTION 207.  Sections 504.801(a) and (b), Transportation
 Code, as effective September 1, 2011, are amended to read as
 follows:
 (a)  The department may create new specialty license plates
 on its own initiative or on receipt of an application from a
 potential sponsor. A new specialty license plate created under
 this section must comply with each requirement of Section 504.702
 unless the license is created by the department on its own
 initiative. The department may permit a specialty license plate
 created under this section to be personalized. The redesign of an
 existing specialty license plate at the request of a sponsor shall
 be treated like the issuance of a new specialty license plate[,
 except that the department may require a nonrefundable design fee].
 (b)  Any nonprofit entity [person] may submit an application
 to the department to sponsor a new specialty license plate [by
 submitting an application to the department]. An application may
 nominate a state agency to receive funds derived from the issuance
 of the license plates. The application may also identify uses to
 which those funds should be appropriated.
 SECTION 208.  Section 504.851, Transportation Code, is
 amended by adding Subsection (m) to read as follows:
 (m)  If the vendor ceases operation:
 (1)  the program may be operated temporarily by the
 department under new agreements with the plate sponsors until
 another vendor is selected and commences operation; and
 (2)  the vendor's share of the revenue shall be
 deposited to the credit of the general revenue fund.
 SECTION 209.  Section 504.853(d), Transportation Code, is
 amended to read as follows:
 (d)  The department may not issue a replacement set of
 personalized license plates to the same person before the period
 set by rule [sixth anniversary of the date of issuance] unless the
 applicant for issuance of replacement plates pays an additional fee
 of $30.
 SECTION 210.  Chapter 504, Transportation Code, is amended
 by adding Subchapter K to read as follows:
 SUBCHAPTER K. TRANSFER AND REMOVAL OF LICENSE PLATES
 Sec. 504.901.  TRANSFER AND REMOVAL OF LICENSE PLATES. (a)
 On the sale or transfer of a motor vehicle to a dealer who holds a
 general distinguishing number issued under Chapter 503, the dealer
 shall remove each license plate issued for the motor vehicle. A
 person may use the license plates removed from a motor vehicle on a
 new motor vehicle purchased from a dealer after the person obtains
 the department's approval of a title and registration application.
 (b)  On the sale or transfer of a motor vehicle to a person
 who does not hold a general distinguishing number issued under
 Chapter 503, the seller may remove each license plate issued for the
 motor vehicle. The license plates may be transferred to another
 vehicle titled in the seller's name if the seller obtains:
 (1)  the department's approval of an application to
 transfer the license plates; and
 (2)  a new registration insignia for the motor vehicle.
 (c)  A license plate removed from a motor vehicle that is not
 transferred to another motor vehicle must be disposed of in a manner
 specified by the department.
 (d)  To be eligible for transfer, license plates must be
 appropriate for the class of vehicle to which the plates are being
 transferred.
 SECTION 211.  Chapter 504, Transportation Code, is amended
 by adding Subchapter L to read as follows:
 SUBCHAPTER L. OFFENSES AND PENALTIES
 Sec. 504.941.  ANTIQUE VEHICLES; OFFENSE. (a) A person who
 violates Section 504.502 commits an offense. An offense under this
 section is a misdemeanor punishable by a fine of not less than $5 or
 more than $200.
 (b)  It is an affirmative defense to prosecution under this
 section that at the time of the offense the vehicle was en route to
 or from a location for the purpose of routine maintenance of the
 vehicle.
 Sec. 504.942.  LOG LOADER VEHICLES; PENALTIES. A vehicle
 operated in violation of Section 504.506 is considered to be
 operated or moved while unregistered and is immediately subject to
 the applicable fees and penalties prescribed by this chapter.
 Sec. 504.943.  OPERATION OF VEHICLE WITHOUT LICENSE PLATE.
 (a)  Except as provided by Subsection (b), a person commits an
 offense if the person operates on a public highway, during a
 registration period, a motor vehicle that does not display two
 license plates that:
 (1)  have been assigned by the department for the
 period; and
 (2)  comply with department rules regarding the
 placement of license plates.
 (b)  A person commits an offense if the person operates on a
 public highway during a registration period a road tractor,
 motorcycle, trailer, or semitrailer that does not display a license
 plate that:
 (1)  has been assigned by the department for the
 period; and
 (2)  complies with department rules regarding the
 placement of license plates.
 (c)  This section does not apply to a dealer operating a
 vehicle as provided by law.
 (d)  A court may dismiss a charge brought under Subsection
 (a)(1) if the defendant:
 (1)  remedies the defect before the defendant's first
 court appearance; and
 (2)  pays an administrative fee not to exceed $10.
 SECTION 212.  Section 502.408, Transportation Code, is
 transferred to Subchapter L, Chapter 504, Transportation Code, as
 added by this Act, redesignated as Section 504.944, Transportation
 Code, and amended to read as follows:
 Sec. 504.944  [502.408].  OPERATION OF VEHICLE WITH WRONG
 LICENSE PLATE. [(a)]  A person commits an offense if the person
 operates, or as the owner permits another to operate, on a public
 highway a motor vehicle that has attached to it a number plate or
 registration insignia issued for a different vehicle. An offense
 under this section [subsection] is a misdemeanor punishable by a
 fine not to exceed $200.
 SECTION 213.  Subchapter L, Chapter 504, Transportation
 Code, as added by this Act, is amended by adding Section 504.945 to
 read as follows:
 Sec. 504.945.  WRONG, FICTITIOUS, ALTERED, OR OBSCURED
 LICENSE PLATE. (a) A person commits an offense if the person
 attaches to or displays on a motor vehicle a license plate that:
 (1)  is issued for a different motor vehicle;
 (2)  is issued for the vehicle under any other motor
 vehicle law other than by the department;
 (3)  is assigned for a registration period other than
 the registration period in effect;
 (4)  is fictitious;
 (5)  has blurring or reflective matter that
 significantly impairs the readability of the name of the state in
 which the vehicle is registered or the letters or numbers of the
 license plate number at any time;
 (6)  has an attached illuminated device or sticker,
 decal, emblem, or other insignia that is not authorized by law and
 that interferes with the readability of the letters or numbers of
 the license plate number or the name of the state in which the
 vehicle is registered; or
 (7)  has a coating, covering, protective substance, or
 other material that:
 (A)  distorts angular visibility or
 detectability;
 (B)  alters or obscures one-half or more of the
 name of the state in which the vehicle is registered; or
 (C)  alters or obscures the letters or numbers of
 the license plate number or the color of the plate.
 (b)  Except as provided by Subsection (e), an offense under
 Subsection (a) is a misdemeanor punishable by a fine of not more
 than $200, unless it is shown at the trial of the offense that the
 owner knowingly altered or made illegible the letters, numbers, and
 other identification marks, in which case the offense is a Class B
 misdemeanor.
 (c)  Subsection (a)(7) may not be construed to apply to:
 (1)  a trailer hitch installed on a vehicle in a normal
 or customary manner;
 (2)  a transponder, as defined by Section 228.057, that
 is attached to a vehicle in the manner required by the issuing
 authority;
 (3)  a wheelchair lift or wheelchair carrier that is
 attached to a vehicle in a normal or customary manner;
 (4)  a trailer being towed by a vehicle; or
 (5)  a bicycle or motorcycle rack that is attached to a
 vehicle in a normal or customary manner.
 (d)  A court may dismiss a charge brought under Subsection
 (a)(3), (5), (6), or (7) if the defendant:
 (1)  remedies the defect before the defendant's first
 court appearance; and
 (2)  pays an administrative fee not to exceed $10.
 (e)  An offense under Subsection (a)(4) is a Class B
 misdemeanor.
 SECTION 214.  Subchapter A, Chapter 520, Transportation
 Code, is amended by adding Sections 520.003 and 520.004 to read as
 follows:
 Sec. 520.003.  RULES; WAIVER OF FEES. The department may
 adopt rules to administer this chapter, including rules that waive
 the payment of fees if a dealer has gone out of business and the
 applicant can show that fees were paid to the dealer.
 Sec. 520.004.  DEPARTMENT RESPONSIBILITIES. The department
 has jurisdiction over the registration and titling of, and the
 issuance of license plates to, motor vehicles in compliance with
 the applicable statutes.  The board by rule:
 (1)  shall provide services that are reasonable,
 adequate, and efficient;
 (2)  shall establish standards for uniformity and
 service quality for counties and dealers licensed under Section
 520.005; and
 (3)  may conduct public service education campaigns
 related to the department's functions.
 SECTION 215.  Section 501.137, Transportation Code, is
 transferred to Subchapter A, Chapter 520, Transportation Code,
 redesignated as Section 520.005, Transportation Code, and amended
 to read as follows:
 Sec. 520.005  [501.137].  DUTY AND RESPONSIBILITIES OF
 COUNTY ASSESSOR-COLLECTOR. (a)  Each county assessor-collector
 shall comply with Chapter 501 [this chapter].
 (b)  An assessor-collector who fails or refuses to comply
 with Chapter 501 [this chapter] is liable on the
 assessor-collector's official bond for resulting damages suffered
 by any person.
 (c)  Notwithstanding the requirements of Sections 520.008
 and 520.0091, the assessor-collector may license franchised and
 non-franchised motor vehicle dealers to title and register motor
 vehicles in accordance with rules adopted under Section 520.004.
 The county assessor-collector may pay a fee to a motor vehicle
 dealer independent of or as part of the portion of the fees that
 would be collected by the county for each title and registration
 receipt issued.
 SECTION 216.  Section 502.109, Transportation Code, is
 transferred to Subchapter A, Chapter 520, Transportation Code,
 redesignated as Section 520.006, Transportation Code, and amended
 to read as follows:
 Sec. 520.006 [502.109].  COMPENSATION OF ASSESSOR-COLLECTOR.
 (a)  A county assessor-collector shall receive a fee of $1.90 for
 each receipt issued under Chapter 502 [this chapter. If the
 assessor-collector may be compensated by fees, a fee received is
 compensation for services under this chapter. The
 assessor-collector shall deduct the fee weekly from the gross
 collections made under this chapter].
 (a-1)  A county collecting fees on behalf of a county that
 has been declared as a disaster area for purposes of Section 501.023
 or 502.040 may retain the commission for fees collected, but shall
 allocate the fees to the county declared as a disaster area.
 (b)  A county assessor-collector who is compensated under
 this section shall pay the entire expense of issuing registration
 receipts and license plates under Chapter 501 or 502 [this chapter]
 from the compensation allowed under this section.
 SECTION 217.  Section 502.111, Transportation Code, is
 transferred to Subchapter A, Chapter 520, Transportation Code,
 redesignated as Section 520.007, Transportation Code, and amended
 to read as follows:
 Sec. 520.007  [502.111].  COUNTY BRANCH OFFICES. (a)  The
 commissioners court of a county may authorize the county
 assessor-collector to:
 (1)  establish a suboffice or branch office for vehicle
 registration at one or more locations in the county other than the
 county courthouse; or
 (2)  appoint a deputy to register vehicles in the same
 manner and with the same authority as though done in the office of
 the assessor-collector.
 (b)  The report of vehicles registered through a suboffice or
 branch office shall be made through the office of the county
 assessor-collector.
 SECTION 218.  Section 502.114, Transportation Code, is
 transferred to Subchapter A, Chapter 520, Transportation Code,
 redesignated as Section 520.008, Transportation Code, and amended
 to read as follows:
 Sec. 520.008  [502.114].  FULL-SERVICE DEPUTIES. (a)  A
 full-service deputy appointed under Section 520.0091 [502.112]
 shall accept any application for registration, registration
 renewal, or title transfer that the county assessor-collector may
 accept.
 (b)  A full-service deputy may charge and retain an
 additional motor vehicle registration fee not to exceed $5 for each
 motor vehicle registration issued.
 (c)  A county assessor-collector may delegate to a
 full-service deputy, in the manner selected by the
 assessor-collector, the authority to use data processing equipment
 and software provided by the department for use in the titling and
 registration of motor vehicles. The department may not limit a
 county assessor-collector's ability to delegate the
 assessor-collector's functions regarding the titling and
 registration of motor vehicles to a qualified full-service deputy
 in the manner the assessor-collector considers appropriate.
 SECTION 219.  Section 502.113, Transportation Code, is
 transferred to Subchapter A, Chapter 520, Transportation Code,
 redesignated as Section 520.009, Transportation Code, and amended
 to read as follows:
 Sec. 520.009  [502.113].  LIMITED-SERVICE DEPUTIES. (a)  A
 limited-service deputy appointed under Section 520.0091 [502.112]
 may only accept registration renewals [renewal cards] provided by
 the department and may not prepare or accept an application for
 title transfer.
 (b)  The county assessor-collector may pay a limited-service
 deputy an amount not to exceed the fee the assessor-collector could
 collect under Section 520.006(a) [502.109(a)] for each
 registration receipt issued. The commissioners court of the county
 may permit a limited-service deputy to charge and retain an
 additional fee not to exceed $1 for each registration receipt
 issued by the deputy.
 SECTION 220.  Section 502.112, Transportation Code, is
 transferred to Subchapter A, Chapter 520, Transportation Code, and
 redesignated as Section 520.0091, Transportation Code, to read as
 follows:
 Sec. 520.0091  [502.112].  DEPUTY ASSESSOR-COLLECTORS.
 (a)  A county assessor-collector, with the approval of the
 commissioners court of the county, may deputize an individual or
 business entity to:
 (1)  issue motor vehicle registration receipts as a
 limited-service deputy; or
 (2)  issue motor vehicle registration receipts and
 prepare or accept applications for title transfers as a
 full-service deputy.
 (b)  An individual or business entity is eligible to be
 deputized as a limited-service deputy if the person:
 (1)  is trained to issue registration receipts by the
 county assessor-collector; and
 (2)  posts a bond payable to the county
 assessor-collector:
 (A)  in an amount determined by the
 assessor-collector; and
 (B)  conditioned on the person's proper
 accounting and remittance of all fees the person collects.
 (c)  An individual or business entity is eligible to be
 deputized as a full-service deputy if the person:
 (1)  meets the requirements of Subsection (b); and
 (2)  has experience in title transfers.
 (d)  A person deputized under this section shall keep a
 separate account of the fees collected and a record of daily
 receipts.
 SECTION 221.  Section 501.136, Transportation Code, is
 transferred to Subchapter A, Chapter 520, Transportation Code,
 redesignated as Section 520.0092, Transportation Code, and amended
 to read as follows:
 Sec. 520.0092  [501.136].  ACTS BY DEPUTY COUNTY
 ASSESSOR-COLLECTOR. A deputy county assessor-collector, other
 than a limited service deputy appointed under Section 520.0091
 [502.112], may perform the duties of an assessor-collector under
 Chapter 501 [this chapter].
 SECTION 222.  Section 520.002, Transportation Code, is
 redesignated as Section 520.0093, Transportation Code, and amended
 to read as follows:
 Sec. 520.0093  [520.002].  LEASE OF ADDITIONAL COMPUTER
 EQUIPMENT. (a)  This section applies only to the lease of equipment
 to a county for the operation of the automated registration and
 titling [title] system in addition to the equipment provided by the
 department at no cost to the county under a formula prescribed by
 the department.
 (b)  On the request of the tax assessor-collector of a
 county, the department may enter into an agreement with the
 commissioners court of that county under which the department
 leases additional equipment to the county for the use of the tax
 assessor-collector in operating the automated registration and
 titling [title] system in that county.
 (c)  A county may install equipment leased under this section
 at offices of the county or of an agent of the county.
 (d)  Equipment leased under this section:
 (1)  remains the property of the department; and
 (2)  must be used primarily for the automated
 registration and titling [title] system.
 (e)  Under the agreement, the department shall charge [the
 county] an amount not less than the amount of the cost to the
 department to provide the additional equipment and any related
 services under the lease. All money collected under the lease shall
 be deposited to the credit of the state highway fund.
 SECTION 223.  The heading to Subchapter B, Chapter 520,
 Transportation Code, is amended to read as follows:
 SUBCHAPTER B. ADMINISTRATIVE PROVISIONS [MOTOR NUMBER RECORD
 REQUIREMENTS]
 SECTION 224.  Subchapter B, Chapter 520, Transportation
 Code, is amended by adding Section 520.015 to read as follows:
 Sec. 520.015.  INFORMATION CONSOLIDATION STUDY. (a)  In
 consultation with the Department of Public Safety, the department
 shall conduct a study on the consolidation of similar information
 that is collected separately by each agency. The study should
 include recommendations that sufficiently protect the privacy of
 the public and the security and integrity of information provided.
 (b)  The study must be completed not later than September 1,
 2012.
 SECTION 225.  Section 520.036, Transportation Code, is
 transferred to Subchapter B, Chapter 520, Transportation Code,
 redesignated as Section 520.016, Transportation Code, and amended
 to read as follows:
 Sec. 520.016  [520.036].  GENERAL PENALTY. (a)  A person
 commits an offense if the person violates this subchapter in a
 manner for which a specific penalty is not provided.
 (b)  An offense under this section is a misdemeanor
 punishable by a fine of not less than $50 and not more than $200.
 (c)  This section does not apply to a violation of Section
 520.006, 520.008, 520.009, 520.0091, or 520.0092.
 SECTION 226.  Section 520.051(5), Transportation Code, is
 amended to read as follows:
 (5)  "Title service record" means the written or
 electronic record for each transaction in which a motor vehicle
 title service receives compensation.
 SECTION 227.  Section 548.052, Transportation Code, is
 amended to read as follows:
 Sec. 548.052.  VEHICLES NOT SUBJECT TO INSPECTION. This
 chapter does not apply to:
 (1)  a trailer, semitrailer, pole trailer, or mobile
 home moving under or bearing a current factory-delivery license
 plate or current in-transit license plate;
 (2)  a vehicle moving under or bearing a paper dealer
 in-transit tag, machinery license, disaster license, parade
 license, prorate tab, one-trip permit, vehicle temporary transit
 permit, antique license, temporary 24-hour permit, or permit
 license;
 (3)  a trailer, semitrailer, pole trailer, or mobile
 home having an actual gross weight or registered gross weight of
 4,500 pounds or less;
 (4)  farm machinery, road-building equipment, a farm
 trailer, or a vehicle required to display a slow-moving-vehicle
 emblem under Section 547.703;
 (5)  a former military vehicle, as defined by Section
 504.502 [502.275];
 (6)  a vehicle qualified for a tax exemption under
 Section 152.092, Tax Code; or
 (7)  a vehicle for which a certificate of title has been
 issued but that is not required to be registered.
 SECTION 228.  Section 681.012(a-1), Transportation Code, is
 amended to read as follows:
 (a-1)  A peace officer may seize a disabled parking placard
 from a person who operates a vehicle on which a disabled parking
 placard is displayed if the peace officer determines by inspecting
 the person's driver's license or personal identification
 certificate that the disabled parking placard does not contain the
 first four digits of the driver's license number or personal
 identification certificate number and the initials of:
 (1)  the person operating the vehicle; [or]
 (2)  the applicant on behalf of a person being
 transported by the vehicle; or
 (3)  a person being transported by the vehicle.
 SECTION 229.  Section 386.251(c), Health and Safety Code, is
 amended to read as follows:
 (c)  The fund consists of:
 (1)  the amount of money deposited to the credit of the
 fund under:
 (A)  Section 386.056;
 (B)  Sections 151.0515 and 152.0215, Tax Code; and
 (C)  Sections 501.138, 502.358 [502.1675], and
 548.5055, Transportation Code; and
 (2)  grant money recaptured under Section 386.111(d)
 and Chapter 391.
 SECTION 230.  Section 2302.204, Occupations Code, is amended
 to read as follows:
 Sec. 2302.204.  CASUAL SALES. This chapter does not apply to
 a person who purchases fewer than five [three] nonrepairable motor
 vehicles or salvage motor vehicles from a salvage vehicle dealer,
 an insurance company or salvage pool operator in a casual sale at
 auction, except that:
 (1)  the board shall adopt rules as necessary to
 regulate casual sales by salvage vehicle dealers, insurance
 companies, or salvage pool operators and to enforce this section;
 and
 (2)  a salvage vehicle dealer, insurance company, or
 salvage pool operator who sells a motor vehicle in a casual sale
 shall comply with those rules and Subchapter E, Chapter 501,
 Transportation Code.
 SECTION 231.  The following provisions of the Transportation
 Code are repealed:
 (1)  Sections 501.026 and 501.075;
 (2)  Sections 501.094 and 501.133;
 (3)  Sections 501.134(e), (f), and (i);
 (4)  Sections 502.0074, 502.0075, 502.008, 502.104,
 502.105, 502.1535, 502.154, 502.175, 502.177, 502.206, 502.271,
 502.2862, and 502.2971;
 (5)  Sections 502.403 and 502.405;
 (6)  Section 502.407(c);
 (7)  Section 502.412(c);
 (8)  Sections 502.452, 502.453, 502.455, and 502.456;
 (9)  Section 504.201(h);
 (10)  Section 504.316(b);
 (11)  Section 504.401(b);
 (12)  Section 504.402(b);
 (13)  Section 504.403(b);
 (14)  Section 504.404(b);
 (15)  Section 504.405(b);
 (16)  Section 504.502(j);
 (17)  Section 504.506(f);
 (18)  Section 504.507(c);
 (19)  Section 504.508(d);
 (20)  Sections 504.624, 504.629, 504.634, 504.643,
 504.649, 504.650, 504.653, 504.655, and 504.701;
 (21)  Section 504.702(c);
 (22)  Sections 520.013 and 520.034;
 (23)  the headings to Subchapters C and D, Chapter 520;
 and
 (24)  Section 681.005(2).
 SECTION 232.  (a) The change in law made by this Act applies
 only to an offense committed on or after January 1, 2012.
 (b)  An offense committed before January 1, 2012, is covered
 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
 subsection, an offense was committed before January 1, 2012, if any
 element of the offense was committed before that date.
 SECTION 233.  To the extent of any conflict, this Act
 prevails over another Act of the 82nd Legislature, Regular Session,
 2011, relating to nonsubstantive additions to and corrections in
 enacted codes.
 SECTION 234.  This Act takes effect January 1, 2012.
 * * * * *

Weight Classification Fee Schedule

in pounds

6,001-10,000 $54.00

10,001-18,000 $110.00

18,001-25,999 $205.00

26,000-40,000 $340.00

40,001-54,999 $535.00

55,000-70,000 $740.00

70,001-80,000 $840.00

 One month (30 consecutive days) 10 percent

 One quarter 30 percent

 Two quarters 60 percent

 Three quarters 90 percent