Texas 2019 - 86th Regular

Texas House Bill HB1755 Latest Draft

Bill / Enrolled Version Filed 05/27/2019

                            H.B. No. 1755


 AN ACT
 relating to assembled vehicles and former military vehicles,
 including the titling and registration of those vehicles.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 SECTION 1.  Subchapter A, Chapter 2301, Occupations Code, is
 amended by adding Section 2301.0045 to read as follows:
 Sec. 2301.0045.  NONAPPLICABILITY OF CHAPTER TO ASSEMBLED
 VEHICLES AND HOBBYIST. This chapter does not apply to an assembled
 vehicle or a hobbyist, as those terms are defined by Section
 731.001, Transportation Code.
 SECTION 2.  Subchapter A, Chapter 2302, Occupations Code, is
 amended by adding Section 2302.009 to read as follows:
 Sec. 2302.009.  REBUILDING OF ASSEMBLED VEHICLE PROHIBITED.
 A salvage vehicle dealer may not, as part of engaging in a business
 or activity regulated under this chapter, rebuild an assembled
 vehicle, as defined by Section 731.001, Transportation Code.
 SECTION 3.  Subtitle J, Title 7, Transportation Code, is
 amended by adding Chapter 731 to read as follows:
 CHAPTER 731. ASSEMBLED VEHICLES
 SUBCHAPTER A. GENERAL PROVISIONS
 Sec. 731.001.  DEFINITIONS. (a) In this chapter:
 (1)  "Assembled motorcycle" means a motorcycle, as
 defined by Section 541.201, that is built or assembled by a
 hobbyist.
 (2)  "Assembled motor vehicle" means a motor vehicle,
 as defined by Section 501.002(17)(A), that:
 (A)  has a motor, body, and frame; and
 (B)  is built or assembled by a hobbyist.
 (3)  "Assembled trailer" means a trailer, semitrailer,
 or travel trailer, as those terms are defined by Section 501.002,
 that is built or assembled by a hobbyist.
 (4)  "Assembled vehicle" means:
 (A)  an assembled motor vehicle;
 (B)  an assembled motorcycle;
 (C)  an assembled trailer;
 (D)  a custom vehicle;
 (E)  a street rod;
 (F)  a replica; or
 (G)  a glider kit.
 (5)  "Board" means the board of the department.
 (6)  "Custom vehicle" and "street rod" have the
 meanings assigned by Section 504.501.
 (7)  "Department" means the Texas Department of Motor
 Vehicles.
 (8)  "Glider kit" means a truck tractor, as defined by
 Section 541.201, that is built or assembled using:
 (A)  a kit that typically consists of a new cab,
 frame, and front axle and new accessories; and
 (B)  a used powertrain.
 (9)  "Hobbyist" means a person who:
 (A)  builds or assembles an assembled vehicle for
 personal use;
 (B)  does not engage in the continuous sale of
 vehicles, as defined by the department; and
 (C)  is not the maker of a kit or a manufacturer,
 as defined by Section 2301.002, Occupations Code.
 (10)  "Master technician" means a person who holds a
 master technician certification issued by the National Institute
 for Automotive Service Excellence.
 (11)  "Owner" has the meaning assigned by Section
 541.001.
 (12)  "Replica" means a vehicle that uses a
 manufactured prefabricated body or a body constructed from
 materials not original to the vehicle and that resembles an
 established make of a previous year vehicle model. The term may
 include a custom vehicle or street rod.
 (13)  "Title" and "vehicle identification number" have
 the meanings assigned by Section 501.002.
 (14)  "Vehicle" has the meaning assigned by Section
 502.001.
 (b)  For purposes of Subsection (a)(4), the term "assembled
 vehicle" does not include a golf cart, as defined by Section
 551.401, or an off-highway vehicle, as defined by Section 663.001,
 regardless of whether the vehicle is built or assembled by a
 hobbyist.
 Sec. 731.002.  RULES. The board may adopt rules as necessary
 to implement and administer this chapter.
 Sec. 731.003.  CONFLICT OF LAW. To the extent of a conflict
 between this chapter, including a rule adopted under this chapter,
 and another law, this chapter controls.
 SUBCHAPTER B. TITLE AND REGISTRATION
 Sec. 731.051.  ELIGIBILITY FOR TITLE AND REGISTRATION. (a)
 Except as provided by Subsection (b), an owner of an assembled
 vehicle shall apply for a title for the vehicle and register the
 vehicle as provided by Chapters 501 and 502, as applicable, and in
 accordance with rules adopted under this chapter, regardless of
 whether the assembled vehicle was built or assembled using a
 vehicle that was previously titled in this state or another
 jurisdiction.
 (b)  An assembled vehicle may not be titled or registered in
 this state if the vehicle:
 (1)  is built or assembled from the merging of two or
 more vehicle classes, provided that component parts from the
 following vehicle classes may be interchanged:
 (A)  two-axle, four-tire passenger cars;
 (B)  two-axle, four-tire pickups, panels, and
 vans; and
 (C)  six-tire dually pickups, of which the rear
 tires are dual tires;
 (2)  uses the frame or body of a nonrepairable motor
 vehicle, as defined by Section 501.091;
 (3)  contains any electrical or mechanical components
 from a flood-damaged vehicle;
 (4)  is designed for off-highway use only;
 (5)  is designed by the manufacturer for on-track
 racing only;
 (6)  has been stripped to the extent that the vehicle
 loses its original identity; or
 (7)  uses any parts that do not meet federal motor
 vehicle safety standards, if standards have been developed for
 those parts.
 Sec. 731.052.  PROCEDURES AND REQUIREMENTS FOR TITLE AND
 REGISTRATION. (a) The board by rule shall establish procedures and
 requirements for:
 (1)  issuance of a title for an assembled vehicle; and
 (2)  registration of an assembled vehicle.
 (b)  Rules adopted under Subsection (a):
 (1)  may not exclude a type of assembled vehicle, other
 than an assembled vehicle described by Section 731.051(b), from
 eligibility for title and registration;
 (2)  must establish the form of a title issued for an
 assembled vehicle; and
 (3)  must exempt an assembled vehicle or a type of
 assembled vehicle from any provision of Chapter 501 or 502 that an
 assembled vehicle or type of assembled vehicle, by its nature,
 cannot comply with or otherwise meet the requirements of.
 Sec. 731.053.  CERTIFICATE OF TITLE REQUIREMENTS. (a) The
 title for an assembled vehicle that has never been titled in this
 state or any other jurisdiction must:
 (1)  list the owner of the assembled vehicle as the
 purchaser;
 (2)  contain the notation "NONE" in the space for the
 seller's name;
 (3)  list the municipality and state in which the
 vehicle was completed in the space for the seller's municipality
 and state; and
 (4)  contain the odometer reading and the notation "NOT
 ACTUAL MILEAGE".
 (b)  Except as provided by Subsection (a), a title issued for
 an assembled vehicle must contain all of the information required
 under Section 501.021.
 Sec. 731.054.  ASSIGNMENT OF VEHICLE IDENTIFICATION NUMBER.
 The department shall assign a vehicle identification number under
 Section 501.033 to an assembled vehicle unless the vehicle has a
 discernible vehicle identification number assigned by:
 (1)  the manufacturer of the component part by which
 the vehicle may be identified; or
 (2)  the maker of the kit from which the vehicle is
 built or assembled.
 SUBCHAPTER C. INSPECTION BY MASTER TECHNICIAN
 Sec. 731.101.  INSPECTION REQUIRED FOR ISSUANCE OF TITLE.
 (a) In addition to the inspection required under Chapter 548, an
 assembled vehicle must pass an inspection conducted by a master
 technician for the type of assembled vehicle being inspected. The
 inspection must be conducted before issuance of a title for the
 assembled vehicle.
 (b)  On application for title for an assembled vehicle, the
 owner of the assembled vehicle must provide:
 (1)  proof acceptable to the department that the
 vehicle passed an inspection conducted under this section; and
 (2)  a copy of the master technician's Automobile and
 Light Truck certification or a successor certification.
 (c)  The board by rule shall establish procedures and
 requirements for the inspection required by this section. Rules
 adopted under this subsection:
 (1)  must establish inspection criteria;
 (2)  may specify additional items of equipment that
 must be inspected by a master technician and may specify different
 items of equipment that must be inspected based on the type of
 assembled vehicle; and
 (3)  must require an owner of an assembled vehicle that
 is being inspected under this section to pay all fees required for
 the inspection, including any reinspection, in addition to all
 applicable fees required under Chapter 548 for an inspection or
 reinspection conducted under that chapter.
 Sec. 731.102.  EQUIPMENT SUBJECT TO INSPECTION. An
 inspection conducted under Section 731.101 must:
 (1)  as applicable, include the following items of an
 assembled vehicle:
 (A)  frame, chassis, and any structural
 components of the vehicle;
 (B)  wheel assembly;
 (C)  brake system, including each brake and power
 brake unit;
 (D)  steering system, including power steering;
 and
 (E)  front seat belts in vehicles that contain
 seat belt anchorages; and
 (2)  include an evaluation of the structural integrity
 of the assembled vehicle and, as applicable, the connection points
 of the:
 (A)  frame, chassis, or body;
 (B)  steering system;
 (C)  drive train; and
 (D)  suspension.
 SECTION 4.  Section 501.002, Transportation Code, is amended
 by amending Subdivisions (1), (8), (24), (31), and (32) and adding
 Subdivision (1-a) to read as follows:
 (1)  "Assembled vehicle" has the meaning assigned by
 Section 731.001.
 (1-a)  "Certificate of title" means a printed record of
 title issued under Section 501.021.
 (8)  "First sale" means:
 (A)  the bargain, sale, transfer, or delivery of a
 motor vehicle, other than an assembled vehicle, that has not been
 previously registered or titled, 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 of that vehicle.
 (24)  "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; or
 (E)  the vehicle identification number assigned
 by the maker of a kit, if the vehicle is an assembled vehicle that is
 assembled from a kit.
 (31)  "Used motor vehicle" means:
 (A)  a motor vehicle that has been the subject of a
 first sale; or
 (B)  an assembled vehicle that has been issued a
 title.
 (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; or
 (iv)  the vehicle identification number
 assigned by the maker of a kit, if the vehicle is an assembled
 vehicle that is assembled from a kit.
 SECTION 5.  Section 501.035(b), Transportation Code, is
 amended to read as follows:
 (b)  In this section, "former military vehicle" has the
 meaning assigned by Section 502.001 [504.502(i)].
 SECTION 6.  Section 502.001, Transportation Code, is amended
 by adding Subdivision (17-a) to read as follows:
 (17-a)  "Former military vehicle" means a vehicle,
 including a trailer, that:
 (A)  was manufactured for use in any country's
 military forces; and
 (B)  is not operated on continuous tracks.
 SECTION 7.  Subchapter D, Chapter 502, Transportation Code,
 is amended by adding Section 502.141 to read as follows:
 Sec. 502.141.  OFF-HIGHWAY FORMER MILITARY VEHICLES. (a)
 Except as provided by Subsections (b) and (c), a person may not
 register a former military vehicle designated for off-highway use,
 with or without design alterations, for operation on a public
 highway.
 (b)  A former military vehicle may be registered for on-road
 use if the vehicle:
 (1)  is a high mobility multipurpose wheeled vehicle
 designated for off-highway use; and
 (2)  has a gross vehicle weight rating of less than
 10,000 pounds.
 (c)  A former military vehicle issued specialty license
 plates under Section 504.502 may be operated on a public highway in
 accordance with that section.
 SECTION 8.  Subchapter A, Chapter 503, Transportation Code,
 is amended by adding Section 503.013 to read as follows:
 Sec. 503.013.  DEALER TRANSFER OF CERTAIN ASSEMBLED VEHICLES
 PROHIBITED. (a) In this section, "assembled vehicle" and
 "replica" have the meanings assigned by Section 731.001.
 (b)  Ownership of an assembled vehicle, other than a replica,
 may not be transferred to or by a dealer under this chapter.
 SECTION 9.  Section 504.502(i), Transportation Code, is
 amended to read as follows:
 (i)  In this section, "former military vehicle" means a
 vehicle, including a trailer, regardless of the vehicle's size,
 weight, or year of manufacture, that:
 (1)  was manufactured for use in any country's military
 forces; [and]
 (2)  is maintained to represent its military design and
 markings accurately; and
 (3)  is not operated on continuous tracks.
 SECTION 10.  Subchapter A, Chapter 548, Transportation Code,
 is amended by adding Section 548.009 to read as follows:
 Sec. 548.009.  ASSEMBLED VEHICLES. (a) In this section,
 "assembled vehicle" has the meaning assigned by Section 731.001.
 (b)  A provision of this chapter does not apply to an
 assembled vehicle if the provision:
 (1)  conflicts with Chapter 731 or a rule adopted under
 that chapter; or
 (2)  is a provision that an assembled vehicle, by its
 nature, cannot comply with or otherwise meet.
 SECTION 11.  Section 663.001, Transportation Code, is
 amended by amending Subdivision (1-b) and adding Subdivision (3) to
 read as follows:
 (1-b)  "Off-highway vehicle" means:
 (A)  an all-terrain vehicle or recreational
 off-highway vehicle, as those terms are defined by Section 502.001;
 [or]
 (B)  a sand rail; or
 (C)  a utility vehicle.
 (3)  "Sand rail" means a vehicle, as defined by Section
 502.001, that:
 (A)  is designed or built primarily for
 off-highway use in sandy terrains, including for use on sand dunes;
 (B)  has a tubular frame, an integrated roll cage,
 and an engine that is rear-mounted or placed midway between the
 front and rear axles of the vehicle; and
 (C)  has a gross vehicle weight, as defined by
 Section 541.401, of:
 (i)  not less than 700 pounds; and
 (ii)  not more than 2,000 pounds.
 SECTION 12.  As soon as practicable after the effective date
 of this Act, the board of the Texas Department of Motor Vehicles
 shall:
 (1)  adopt the rules required by Chapter 731,
 Transportation Code, as added by this Act; and
 (2)  adopt or modify any rules necessary to implement
 the changes in law made by this Act.
 SECTION 13.  This Act takes effect September 1, 2019.
 ______________________________ ______________________________
 President of the Senate Speaker of the House
 I certify that H.B. No. 1755 was passed by the House on April
 11, 2019, by the following vote:  Yeas 144, Nays 0, 3 present, not
 voting; and that the House concurred in Senate amendments to H.B.
 No. 1755 on May 24, 2019, by the following vote:  Yeas 138, Nays 0,
 2 present, not voting; and that the House adopted H.C.R. No. 183
 authorizing certain corrections in H.B. No. 1755 on May 24, 2019, by
 the following vote: Yeas 140, Nays 0, 2 present, not voting.
 ______________________________
 Chief Clerk of the House
 I certify that H.B. No. 1755 was passed by the Senate, with
 amendments, on May 22, 2019, by the following vote:  Yeas 31, Nays
 0; and that the Senate adopted H.C.R. No. 183 authorizing certain
 corrections in H.B. No. 1755 on May 26, 2019, by the following vote:
 Yeas 31, Nays 0.
 ______________________________
 Secretary of the Senate
 APPROVED: __________________
 Date
 __________________
 Governor