Texas 2017 - 85th Regular

Texas House Bill HB4014 Compare Versions

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1	1	By: Rodriguez of Travis H.B. No. 4014
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to new capital investment in the state.
7	7	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	8	SECTION 1. Subchapter C, Title 2, Tax Code, is amended by
9	9	amending Section 152.0411 and adding Section 152.0413 to read as
10	10	follows:
11	11	Sec. 152.0411. COLLECTION BY SELLERS. (a) Except as
12	12	provided by this section, a seller who makes a sale subject to the
13	13	sales tax imposed by Section 152.021 shall add the amount of the tax
14	14	to the sales price, and when the amount of the tax is added:
15	15	(1) it is a debt of the purchaser to the seller until
16	16	paid; and
17	17	(2) if unpaid, it is recoverable at law in the same
18	18	manner as the original sales price.
19	19	(b) The seller shall collect the tax from the purchaser and
20	20	remit it to the tax assessor-collector in the time and manner
21	21	provided by law.
22	22	(c) This section applies only to the sale of a vehicle that
23	23	is to be titled and registered in Texas. If a purchaser intends to
24	24	register a vehicle outside Texas, the purchaser shall comply with
25	25	the terms of Section 152.092.
26	26	(d) This section does not apply to a seller-financed sale.
27	27	(e) This section applies only to a sale in which the seller
28	28	is a motor vehicle dealer who holds a dealer license issued under
29	29	Chapter 503, Transportation Code, or Chapter 2301, Occupations
30	30	Code, except as provided by Section 152.0413.
31	31	(f) This section does not apply to the sale of a motor
32	32	vehicle with a gross weight in excess of 11,000 pounds. The seller
33	33	of a motor vehicle with a gross weight in excess of 11,000 pounds
34	34	shall maintain records of the sale in the manner and form, and
35	35	containing the information, required by the comptroller.
36	36	Sec. 152.0413. COLLECTION BY VERIFIED INVESTED SELLERS.
37	37	(a) This section applies to the sale of a motor vehicle by an entity
38	38	that is:
39	39	(1) in good standing under the laws of the state in
40	40	which the entity was formed or organized, as evidenced by a
41	41	certificate issued by the secretary of state or the state official
42	42	having custody of the records pertaining to entities or other
43	43	organizations formed under the laws of that state; and
44	44	(2) owes no delinquent taxes to a taxing unit of this
45	45	state;
46	46	(3) made a new capital investment in this state
47	47	including a place of business and a facility for the servicing,
48	48	including warranty servicing, that shall be furnished with all the
49	49	equipment required to service;
50	50	(4) generates more than 100 jobs in this state;
51	51	(5) intends to remain regularly and actively engaged
52	52	in the business at a location specified; and
53	53	(6) intends that a bona fide employee will be at the
54	54	location to buy, sell, lease, or exchange vehicles during
55	55	reasonable and lawful business hours.
56	56	(b) This section does not apply to:
57	57	(1) a franchised dealer as defined by section
58	58	2301.002(16), Occupations Code; or
59	59	(2) a manufacturer that has granted a franchise the
60	60	right to sell and service new motor vehicles manufactured or
61	61	distributed by the manufacturer.
62	62	(c) After receiving verification from the Comptroller that
63	63	an entity meets the requirements of this section, an entity to which
64	64	this section applies is exempt from Subchapter B of Chapter 503,
65	65	Transportation Code, and Chapter 2301, Occupations Code.
66	66	(d) The owner of a motor vehicle or the owner's designated
67	67	agent may make a complaint concerning the purchase of the vehicle or
68	68	a defect in a motor vehicle that is covered by a manufacturer's
69	69	warranty agreement applicable to the vehicle. The complaint must
70	70	be made in writing to the applicable entity and must specify each
71	71	defect in the vehicle that is covered by the warranty.
72	72	Notwithstanding any other law the attorney general may enforce this
73	73	subsection.
74	74	(e) The comptroller shall adopt rules and promulgate forms
75	75	necessary to implement this section.
76	76	SECTION 2. Section 503.001, 503,062, 503.0626, 503.063, and
77	77	503.0631, Transportation Code, are amended to read as follows:
78	78	Sec. 503.001. DEFINITIONS. In this chapter: (1) "Board"
79	79	has the meaning assigned by Chapter 2301, Occupations Code.
80	80	(2) "Commission" means the board of the Texas
81	81	Department of Motor Vehicles.
82	82	(3) "Converter" has the meaning assigned by Chapter
83	83	2301, Occupations Code.
84	84	(4) "Dealer" means a person who regularly and actively
85	85	buys, sells, or exchanges vehicles at an established and permanent
86	86	location. The term includes a franchised motor vehicle dealer, an
87	87	independent motor vehicle dealer, an independent mobility motor
88	88	vehicle dealer, and a wholesale motor vehicle dealer.
89	89	(5) "Department" means the Texas Department of Motor
90	90	Vehicles.
91	91	(6) "Drive-a-way operator" means a person who
92	92	transports and delivers a vehicle in this state from the
93	93	manufacturer or another point of origin to a location in this state
94	94	using the vehicle's own power or using the full-mount method, the
95	95	saddle-mount method, the tow-bar method, or a combination of those
96	96	methods.
97	97	(6-a) "Verified Invested Seller" has the meaning
98	98	assigned by Chapter 152, Tax Code.
99	99	(7) "Franchise" has the meaning assigned by Chapter
100	100	2301, Occupations Code.
101	101	(8) "Franchised motor vehicle dealer" means a person
102	102	engaged in the business of buying, selling, or exchanging new motor
103	103	vehicles at an established and permanent place of business under a
104	104	franchise in effect with a motor vehicle manufacturer or
105	105	distributor.
106	106	(8-a) "Independent mobility motor vehicle dealer" has
107	107	the meaning assigned by Section 2301.002, Occupations Code.
108	108	(9) "Independent motor vehicle dealer" means a dealer
109	109	other than a franchised motor vehicle dealer, an independent
110	110	mobility motor vehicle dealer, or a wholesale motor vehicle dealer.
111	111	(10) "Manufacturer" means a person who manufactures,
112	112	distributes, or assembles new vehicles.
113	113	(11) "Motorcycle" has the meaning assigned by Section
114	114	502.001.
115	115	(12) "Motor vehicle" has the meaning assigned by
116	116	Section 502.001.
117	117	(13) "Semitrailer" has the meaning assigned by Section
118	118	502.001.
119	119	(14) "Trailer" has the meaning assigned by Section
120	120	502.001.
121	121	(15) "Vehicle" means a motor vehicle, motorcycle,
122	122	house trailer, trailer, or semitrailer.
123	123	(16) "Wholesale motor vehicle auction" means the
124	124	offering of a motor vehicle for sale to the highest bidder during a
125	125	transaction that is one of a series of regular periodic
126	126	transactions that occur at a permanent location.
127	127	(17) "Wholesale motor vehicle dealer" means a dealer
128	128	who sells motor vehicles only to a person who is:
129	129	(A) the holder of a dealer's general
130	130	distinguishing number; or
131	131	(B) a foreign dealer authorized by a law of this
132	132	state or interstate reciprocity agreement to purchase a vehicle in
133	133	this state without remitting the motor vehicle sales tax.
134	134	Sec. 503.062. [DEALER'S] TEMPORARY TAGS. (a) A dealer or
135	135	verified invested seller may issue a temporary tag for use on an
136	136	unregistered vehicle by the dealer, or the dealer's employees, the
137	137	verified invested seller, or the invited seller's employees only
138	138	to:
139	139	(1) demonstrate or cause to be demonstrated to a
140	140	prospective buyer the vehicle for sale purposes only;
141	141	(2) convey or cause to be conveyed the vehicle:
142	142	(A) from one of the dealer's places of business
143	143	or the place of business of a verified invested seller in this state
144	144	to another of the dealer's places of business or the place of
145	145	business of a verified invested seller in this state;
146	146	(B) from the dealer's place of business or the
147	147	place of business of a verified invested seller to a place the
148	148	vehicle is to be repaired, reconditioned, or serviced;
149	149	(C) from the state line or a location in this
150	150	state where the vehicle is unloaded to the dealer's place of
151	151	business or the place of business of a verified invested seller;
152	152	(D) from the dealer's place of business or the
153	153	place of business of a verified invested seller to a place of
154	154	business of another dealer or a verified invested seller;
155	155	(E) from the point of purchase by the dealer or a
156	156	verified invested seller to the dealer's place of business or the
157	157	place of business of a verified invested seller; or
158	158	(F) to road test the vehicle; or
159	159	(3) use the vehicle for or allow its use by a
160	160	charitable organization.
161	161	(b) Subsection (a)(1) does not prohibit a dealer or a
162	162	verified invested seller from permitting:
163	163	(1) a prospective buyer to operate a vehicle while the
164	164	vehicle is being demonstrated; or
165	165	(2) a customer to operate a vehicle temporarily while
166	166	the customer's vehicle is being repaired.
167	167	(c) A vehicle being conveyed under this section is exempt
168	168	from the inspection requirements of Chapter 548.
169	169	(d) The department may not issue a dealer or a verified
170	170	invested seller temporary tag or contract for the issuance of a
171	171	dealer or the place of business of a verified invested seller
172	172	temporary tag but shall prescribe:
173	173	(1) the specifications, form, and color of a [dealer]
174	174	temporary tag;
175	175	(2) procedures [for a dealer]to generate a
176	176	vehicle-specific number using the database developed under Section
177	177	503.0626 and assign it to each tag;
178	178	(3) procedures to clearly display the
179	179	vehicle-specific number on the tag; and
180	180	(4) the period for which a tag may be used for or by a
181	181	charitable organization.
182	182	(e) For purposes of this section, "charitable organization"
183	183	means an organization organized to relieve poverty, to advance
184	184	education, religion, or science, to promote health, governmental,
185	185	or municipal purposes, or for other purposes beneficial to the
186	186	community without financial gain.
187	187	Sec. 503.0626. [DEALER'S AND CONVERTER'S] TEMPORARY TAG
188	188	DATABASE.
189	189	(a) The department shall develop and maintain a secure,
190	190	real-time database of information on vehicles to which dealers, a
191	191	verified invested seller and converters have affixed temporary
192	192	tags. The database shall be managed by the vehicle titles and
193	193	registration division of the department.
194	194	(b) The database must allow law enforcement agencies to use
195	195	the vehicle-specific number assigned to and displayed on the tag as
196	196	required by Section 503.062(d) or Section 503.0625(e) to obtain
197	197	information about the dealer, a verified invested seller or
198	198	converter that owns the vehicle.
199	199	(c) Before a dealer's, a verified invested seller's or
200	200	converter's temporary tag may be displayed on a vehicle, the
201	201	dealer, a verified invested seller or converter must enter into the
202	202	database through the Internet information on the vehicle and
203	203	information about the dealer, a verified invested seller or
204	204	converter as prescribed by the department. The department may not
205	205	deny access to the database to any dealer who holds a general
206	206	distinguishing number issued under this chapter or who is licensed
207	207	under Chapter 2301, Occupations Code, [or] to any converter
208	208	licensed under Chapter 2301, Occupations Code, or to any verified
209	209	invested seller.
210	210	(d) The department shall adopt rules and prescribe
211	211	procedures as necessary to implement this section.
212	212	Sec. 503.063. BUYER'S TEMPORARY TAGS. (a) Except as
213	213	provided by this section, a dealer or a verified invested seller
214	214	shall issue to a person who buys a vehicle one temporary buyer's tag
215	215	for the vehicle.
216	216	(b) Except as provided by this section, the buyer's tag is
217	217	valid for the operation of the vehicle until the earlier of:
218	218	(1) the date on which the vehicle is registered; or
219	219	(2) the 60th day after the date of purchase.
220	220	(c) The dealer:
221	221	(1) must show in ink on the buyer's tag the actual date
222	222	of sale and any other required information; and
223	223	(2) is responsible for displaying the tag.
224	224	(d) The dealer or a verified invested seller is responsible
225	225	for the safekeeping and distribution of each buyer's tag the dealer
226	226	or a verified invested seller obtains.
227	227	(e) The department may not issue a buyer's tag or contract
228	228	for the issuance of a buyer's tag but shall prescribe:
229	229	(1) the specifications, color, and form of a buyer's
230	230	tag; and
231	231	(2) procedures for a dealer or a verified invested
232	232	seller to:
233	233	(A) generate a vehicle-specific number using the
234	234	database developed under Section 503.0631 and assign it to each
235	235	tag;
236	236	(B) generate a vehicle-specific number using the
237	237	database developed under Section 503.0631 for future use for when a
238	238	dealer or a verified invested seller is unable to access the
239	239	Internet at the time of sale; and
240	240	(C) clearly display the vehicle-specific number
241	241	on the tag.
242	242	(f) The department shall ensure that a dealer or a verified
243	243	invested seller may generate in advance a sufficient amount of
244	244	vehicle-specific numbers under Subsection (e)(2)(B) in order to
245	245	continue selling vehicles for a period of up to one week in which a
246	246	dealer or a verified invested seller is unable to access the
247	247	Internet due to an emergency. The department shall establish an
248	248	expedited procedure to allow affected dealers or a verified
249	249	invested sellers to apply for additional vehicle-specific numbers
250	250	so they may remain in business during an emergency.
251	251	(g) For each buyer's temporary tag, a dealer or a verified
252	252	invested seller shall charge the buyer a registration fee of not
253	253	more than $5 as prescribed by the department to be sent to the
254	254	comptroller for deposit to the credit of the Texas Department of
255	255	Motor Vehicles fund.
256	256	Sec. 503.0631. BUYER'S TEMPORARY TAG DATABASE. (a) The
257	257	department shall develop and maintain a secure, real-time database
258	258	of information on persons to whom temporary buyer's tags are issued
259	259	that may be used by a law enforcement agency in the same manner that
260	260	the agency uses vehicle registration information. The database
261	261	shall be managed by the vehicle titles and registration division of
262	262	the department.
263	263	(b) The database must allow law enforcement agencies to use
264	264	a vehicle-specific number assigned to and displayed on the tag as
265	265	required by Section 503.063(e)(2) to obtain information about the
266	266	person to whom the tag was issued.
267	267	(c) Except as provided by Subsection (d), before a buyer's
268	268	temporary tag may be displayed on a vehicle, a dealer or a verified
269	269	invested seller must enter into the database through the Internet
270	270	information about the buyer of the vehicle for which the tag was
271	271	issued as prescribed by the department and generate a
272	272	vehicle-specific number for the tag as required by Section
273	273	503.063(e). The department may not deny access to the database to a
274	274	a verified invested seller or to any dealer who holds a general
275	275	distinguishing number issued under this chapter or who is licensed
276	276	under Chapter 2301, Occupations Code.
277	277	(d) A dealer or a verified invested seller shall obtain
278	278	24-hour Internet access at its place of business, but if the dealer
279	279	or a verified invested seller is unable to access the Internet at
280	280	the time of the sale of a vehicle, the dealer or a verified invested
281	281	seller shall complete and sign a form, as prescribed by the
282	282	department, that states the dealer or a verified invested seller
283	283	has Internet access, but was unable to access the Internet at the
284	284	time of sale. The buyer shall keep the original copy of the form in
285	285	the vehicle until the vehicle is registered to the buyer. Not later
286	286	than the next business day after the time of sale, the dealer shall
287	287	submit the information required under Subsection (c).
288	288	(e) The department shall adopt rules and prescribe
289	289	procedures as necessary to implement this section.
290	290	(f) The dealer or verified invested seller may charge a
291	291	reasonable fee not to exceed $20 for costs associated with
292	292	complying with this section.
293	293	SECTION 3. Not later than September 1, 2017, the
294	294	comptroller shall adopt or modify any rules necessary to implement
295	295	the changes in law made by this Act.
296	296	SECTION 4. Not later than September 1, 2017, the Department
297	297	of Motor Vehicles shall adopt or modify any rules necessary to
298	298	implement the changes in law made by this Act.
299	299	SECTION 5. EFFECTIVE DATE. This Act takes effect September
300	300	1, 2017.