Texas House Bill HB4219

Texas 2021 - 87th Regular

Caption

Relating to the regulation of the issuance of buyer's temporary tags.

Impact

The implementation of HB 4219 is expected to significantly enhance oversight and accountability within the dealership sector. By instituting caps on the number of temporary tags issued, the bill aims to discourage fraudulent practices which have been a concern in the past. Additionally, the requirement for prompt hearings following the temporary suspension of a dealer's license due to suspected fraudulent activities is designed to ensure that any issues are addressed swiftly, thereby protecting consumers and maintaining public confidence in the licensing process.

Summary

House Bill 4219 focuses on the regulation surrounding the issuance of buyer's temporary tags by vehicle dealers in Texas. This bill introduces stringent measures aimed at preventing fraud and misuse related to the distribution of these temporary tags. Among the key provisions is the requirement for real-time monitoring of tags issued by dealers, along with limits on the quantity of tags that can be issued both monthly and annually. These measures are intended to combat the illicit distribution of tags and enhance the integrity of the vehicle registration process.

Contention

While the bill aims to bolster regulatory measures, there could be concerns from dealers about the potential impacts on their operations, particularly regarding the limits on tag issuance. Dealers may argue that the constraints could hinder their ability to serve customers efficiently, especially in high-demand periods. There may also be debates on the balance between effective regulation and operational flexibility for dealerships, leading to discussions on whether the proposed measures are adequate or overly restrictive.