Texas 2017 - 85th Regular

Texas Senate Bill SB2184 Compare Versions

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1	1	By: Miles S.B. No. 2184
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
38	38	entity 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 be
70	70	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 Department of
81	81	Motor Vehicles.
82	82	(3) "Converter" has the meaning assigned by Chapter 2301,
83	83	Occupations Code.
84	84	(4) "Dealer" means a person who regularly and actively buys,
85	85	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 transports
92	92	and delivers a vehicle in this state from the manufacturer or
93	93	another point of origin to a location in this state using the
94	94	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 assigned
98	98	by Chapter 152, Tax Code.
99	99	(7) "Franchise" has the meaning assigned by Chapter 2301,
100	100	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 the
107	107	meaning assigned by Section 2301.002, Occupations Code.
108	108	(9) "Independent motor vehicle dealer" means a dealer other
109	109	than a franchised motor vehicle dealer, an independent mobility
110	110	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 Section
116	116	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 502.001.
120	120	(15) "Vehicle" means a motor vehicle, motorcycle, house
121	121	trailer, trailer, or semitrailer.
122	122	(16) "Wholesale motor vehicle auction" means the offering
123	123	of a motor vehicle for sale to the highest bidder during a
124	124	transaction that is one of a series of regular periodic
125	125	transactions that occur at a permanent location.
126	126	(17) "Wholesale motor vehicle dealer" means a dealer who
127	127	sells motor vehicles only to a person who is:
128	128	(A) the holder of a dealer's general distinguishing
129	129	number; or
130	130	(B) a foreign dealer authorized by a law of this state
131	131	or interstate reciprocity agreement to purchase a vehicle in this
132	132	state without remitting the motor vehicle sales tax.
133	133	Sec. 503.062. [DEALER’S] TEMPORARY TAGS. (a) A dealer or
134	134	verified invested seller may issue a temporary tag for use on an
135	135	unregistered vehicle by the dealer, or the dealer's employees, the
136	136	verified invested seller, or the invited seller’s employees only
137	137	to:
138	138	(1) demonstrate or cause to be demonstrated to a
139	139	prospective buyer the vehicle for sale purposes only;
140	140	(2) convey or cause to be conveyed the vehicle:
141	141	(A) from one of the dealer's places of business
142	142	or the place of business of a verified invested seller in this state
143	143	to another of the dealer's places of business or the place of
144	144	business of a verified invested seller in this state;
145	145	(B) from the dealer's place of business or the
146	146	place of business of a verified invested seller to a place the
147	147	vehicle is to be repaired, reconditioned, or serviced;
148	148	(C) from the state line or a location in this
149	149	state where the vehicle is unloaded to the dealer's place of
150	150	business or the place of business of a verified invested seller;
151	151	(D) from the dealer's place of business or the
152	152	place of business of a verified invested seller to a place of
153	153	business of another dealer or a verified invested seller;
154	154	(E) from the point of purchase by the dealer or a
155	155	verified invested seller to the dealer's place of business or the
156	156	place of business of a verified invested seller; or
157	157	(F) to road test the vehicle; or
158	158	(3) use the vehicle for or allow its use by a
159	159	charitable organization.
160	160	(b) Subsection (a)(1) does not prohibit a dealer or a
161	161	verified invested seller from permitting:
162	162	(1) a prospective buyer to operate a vehicle while the
163	163	vehicle is being demonstrated; or
164	164	(2) a customer to operate a vehicle temporarily while
165	165	the customer's vehicle is being repaired.
166	166	(c) A vehicle being conveyed under this section is exempt
167	167	from the inspection requirements of Chapter 548.
168	168	(d) The department may not issue a dealer or a verified
169	169	invested seller temporary tag or contract for the issuance of a
170	170	dealer or the place of business of a verified invested seller
171	171	temporary tag but shall prescribe:
172	172	(1) the specifications, form, and color of a [dealer]
173	173	temporary tag;
174	174	(2) procedures [for a dealer] to generate a
175	175	vehicle-specific number using the database developed under Section
176	176	503.0626 and assign it to each tag;
177	177	(3) procedures to clearly display the
178	178	vehicle-specific number on the tag; and
179	179	(4) the period for which a tag may be used for or by a
180	180	charitable organization.
181	181	(e) For purposes of this section, "charitable organization"
182	182	means an organization organized to relieve poverty, to advance
183	183	education, religion, or science, to promote health, governmental,
184	184	or municipal purposes, or for other purposes beneficial to the
185	185	community without financial gain.
186	186	Sec. 503.0626. [DEALER’S AND CONVERTER’S] TEMPORARY TAG
187	187	DATABASE.
188	188	(a) The department shall develop and maintain a secure,
189	189	real-time database of information on vehicles to which dealers, a
190	190	verified invested seller and converters have affixed temporary
191	191	tags. The database shall be managed by the vehicle titles and
192	192	registration division of the department.
193	193	(b) The database must allow law enforcement agencies to use
194	194	the vehicle-specific number assigned to and displayed on the tag as
195	195	required by Section 503.062(d) or Section 503.0625(e) to obtain
196	196	information about the dealer, a verified invested seller or
197	197	converter that owns the vehicle.
198	198	(c) Before a dealer’s, a verified invested seller’s or
199	199	converter's temporary tag may be displayed on a vehicle, the
200	200	dealer, a verified invested seller or converter must enter into the
201	201	database through the Internet information on the vehicle and
202	202	information about the dealer, a verified invested seller or
203	203	converter as prescribed by the department. The department may not
204	204	deny access to the database to any dealer who holds a general
205	205	distinguishing number issued under this chapter or who is licensed
206	206	under Chapter 2301, Occupations Code, [or] to any converter
207	207	licensed under Chapter 2301, Occupations Code, or to any verified
208	208	invested seller.
209	209	(d) The department shall adopt rules and prescribe
210	210	procedures as necessary to implement this section.
211	211	Sec. 503.063. BUYER'S TEMPORARY TAGS. (a) Except as
212	212	provided by this section, a dealer or a verified invested seller
213	213	shall issue to a person who buys a vehicle one temporary buyer's tag
214	214	for the vehicle.
215	215	(b) Except as provided by this section, the buyer's tag is
216	216	valid for the operation of the vehicle until the earlier of:
217	217	(1) the date on which the vehicle is registered; or
218	218	(2) the 60th day after the date of purchase.
219	219	(c) The dealer:
220	220	(1) must show in ink on the buyer's tag the actual date
221	221	of sale and any other required information; and
222	222	(2) is responsible for displaying the tag.
223	223	(d) The dealer or a verified invested seller is responsible
224	224	for the safekeeping and distribution of each buyer's tag the dealer
225	225	or a verified invested seller obtains.
226	226	(e) The department may not issue a buyer's tag or contract
227	227	for the issuance of a buyer's tag but shall prescribe:
228	228	(1) the specifications, color, and form of a buyer's
229	229	tag; and
230	230	(2) procedures for a dealer or a verified invested
231	231	seller to:
232	232	(A) generate a vehicle-specific number using the
233	233	database developed under Section 503.0631 and assign it to each
234	234	tag;
235	235	(B) generate a vehicle-specific number using the
236	236	database developed under Section 503.0631 for future use for when a
237	237	dealer or a verified invested seller is unable to access the
238	238	Internet at the time of sale; and
239	239	(C) clearly display the vehicle-specific number
240	240	on the tag.
241	241	(f) The department shall ensure that a dealer or a verified
242	242	invested seller may generate in advance a sufficient amount of
243	243	vehicle-specific numbers under Subsection (e)(2)(B) in order to
244	244	continue selling vehicles for a period of up to one week in which a
245	245	dealer or a verified invested seller is unable to access the
246	246	Internet due to an emergency. The department shall establish an
247	247	expedited procedure to allow affected dealers or a verified
248	248	invested sellers to apply for additional vehicle-specific numbers
249	249	so they may remain in business during an emergency.
250	250	(g) For each buyer's temporary tag, a dealer or a verified
251	251	invested seller shall charge the buyer a registration fee of not
252	252	more than $5 as prescribed by the department to be sent to the
253	253	comptroller for deposit to the credit of the Texas Department of
254	254	Motor Vehicles fund.
255	255	Sec. 503.0631. BUYER'S TEMPORARY TAG DATABASE. (a) The
256	256	department shall develop and maintain a secure, real-time database
257	257	of information on persons to whom temporary buyer's tags are issued
258	258	that may be used by a law enforcement agency in the same manner that
259	259	the agency uses vehicle registration information. The database
260	260	shall be managed by the vehicle titles and registration division of
261	261	the department.
262	262	(b) The database must allow law enforcement agencies to use
263	263	a vehicle-specific number assigned to and displayed on the tag as
264	264	required by Section 503.063(e)(2) to obtain information about the
265	265	person to whom the tag was issued.
266	266	(c) Except as provided by Subsection (d), before a buyer's
267	267	temporary tag may be displayed on a vehicle, a dealer or a verified
268	268	invested seller must enter into the database through the Internet
269	269	information about the buyer of the vehicle for which the tag was
270	270	issued as prescribed by the department and generate a
271	271	vehicle-specific number for the tag as required by Section
272	272	503.063(e). The department may not deny access to the database to a
273	273	a verified invested seller or to any dealer who holds a general
274	274	distinguishing number issued under this chapter or who is licensed
275	275	under Chapter 2301, Occupations Code.
276	276	(d) A dealer or a verified invested seller shall obtain
277	277	24-hour Internet access at its place of business, but if the dealer
278	278	or a verified invested seller is unable to access the Internet at
279	279	the time of the sale of a vehicle, the dealer or a verified invested
280	280	seller shall complete and sign a form, as prescribed by the
281	281	department, that states the dealer or a verified invested seller
282	282	has Internet access, but was unable to access the Internet at the
283	283	time of sale. The buyer shall keep the original copy of the form in
284	284	the vehicle until the vehicle is registered to the buyer. Not later
285	285	than the next business day after the time of sale, the dealer shall
286	286	submit the information required under Subsection (c).
287	287	(e) The department shall adopt rules and prescribe
288	288	procedures as necessary to implement this section.
289	289	(f) The dealer or verified invested seller may charge a
290	290	reasonable fee not to exceed $20 for costs associated with
291	291	complying with this section.
292	292	SECTION 3. Not later than September 1, 2017, the
293	293	comptroller shall adopt or modify any rules necessary to implement
294	294	the changes in law made by this Act.
295	295	SECTION 4. Not later than September 1, 2017, the Department
296	296	of Motor Vehicles shall adopt or modify any rules necessary to
297	297	implement the changes in law made by this Act.
298	298	SECTION 5. EFFECTIVE DATE. This Act takes effect September
299	299	1, 2017.