| 1 | 1 | | 87R10022 BEE-D |
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| 2 | 2 | | By: Raymond H.B. No. 4219 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the regulation of the issuance of buyer's temporary |
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| 8 | 8 | | tags. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Section 2301.651(d), Occupations Code, is |
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| 11 | 11 | | amended to read as follows: |
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| 12 | 12 | | (d) Except as provided by Section 2301.6515, a [A] license |
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| 13 | 13 | | may not be denied, revoked, or suspended, and disciplinary action |
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| 14 | 14 | | may not be taken under this subchapter, unless the respondent is |
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| 15 | 15 | | given an opportunity for a hearing. The board may deny, revoke, or |
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| 16 | 16 | | suspend a license or take disciplinary action by order only after |
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| 17 | 17 | | the department grants the respondent an opportunity for a hearing. |
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| 18 | 18 | | SECTION 2. Subchapter N, Chapter 2301, Occupations Code, is |
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| 19 | 19 | | amended by adding Section 2301.6515 to read as follows: |
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| 20 | 20 | | Sec. 2301.6515. EMERGENCY SUSPENSION. (a) The board shall |
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| 21 | 21 | | temporarily suspend a dealer's license issued under this chapter if |
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| 22 | 22 | | the director determines from the evidence or information presented |
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| 23 | 23 | | to the director by a law enforcement officer or department employee |
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| 24 | 24 | | that the license holder has fraudulently distributed buyer's |
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| 25 | 25 | | temporary tags under Section 503.063, Transportation Code. |
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| 26 | 26 | | (b) The board may suspend a dealer's license under this |
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| 27 | 27 | | section without notice or hearing on the complaint if: |
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| 28 | 28 | | (1) action is taken to initiate proceedings for a |
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| 29 | 29 | | hearing before the State Office of Administrative Hearings |
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| 30 | 30 | | simultaneously with the temporary suspension; and |
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| 31 | 31 | | (2) a hearing is held as soon as practicable under this |
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| 32 | 32 | | chapter and Chapter 2001, Government Code. |
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| 33 | 33 | | (c) The State Office of Administrative Hearings shall hold a |
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| 34 | 34 | | preliminary hearing not later than the 14th day after the date of |
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| 35 | 35 | | the temporary suspension to determine if there is probable cause to |
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| 36 | 36 | | believe that the holder of a dealer's license has fraudulently |
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| 37 | 37 | | distributed buyer's temporary tags. A final hearing on the matter |
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| 38 | 38 | | shall be held not later than the 61st day after the date of the |
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| 39 | 39 | | temporary suspension. |
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| 40 | 40 | | (d) The board by rule shall establish procedures for: |
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| 41 | 41 | | (1) the presentation to the director by a law |
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| 42 | 42 | | enforcement officer or department employee of evidence or |
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| 43 | 43 | | information regarding the fraudulent issuance of buyer's temporary |
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| 44 | 44 | | tags by the holder of a dealer's license; and |
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| 45 | 45 | | (2) the director's expedited determination regarding |
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| 46 | 46 | | whether the license holder has fraudulently distributed buyer's |
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| 47 | 47 | | temporary tags. |
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| 48 | 48 | | SECTION 3. Subchapter C, Chapter 503, Transportation Code, |
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| 49 | 49 | | is amended by adding Section 503.0632 to read as follows: |
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| 50 | 50 | | Sec. 503.0632. DEPARTMENT MONITORING OF AND LIMITS ON |
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| 51 | 51 | | DEALER ISSUANCE OF BUYER'S TEMPORARY TAGS. (a) The department |
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| 52 | 52 | | shall establish: |
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| 53 | 53 | | (1) the reasonable number of buyer's temporary tags |
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| 54 | 54 | | that each dealer may issue in a calendar month; and |
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| 55 | 55 | | (2) the maximum number of buyer's temporary tags that |
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| 56 | 56 | | each dealer may issue in a calendar year. |
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| 57 | 57 | | (b) The department shall monitor in real time the number of |
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| 58 | 58 | | buyer's temporary tags issued by a dealer. The department shall |
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| 59 | 59 | | immediately review the sales records of a dealer who issues buyer's |
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| 60 | 60 | | temporary tags in excess of the number determined by the department |
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| 61 | 61 | | under Subsection (a)(1) to determine whether the dealer has |
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| 62 | 62 | | fraudulently distributed buyer's temporary tags. |
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| 63 | 63 | | (c) Notwithstanding Section 503.0631(c), the department may |
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| 64 | 64 | | immediately suspend the access to the buyer's temporary tag |
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| 65 | 65 | | database of a dealer who issues buyer's temporary tags in excess of |
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| 66 | 66 | | the number determined by the department under Subsection (a)(2). |
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| 67 | 67 | | The department by rule shall establish procedures for the |
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| 68 | 68 | | reinstatement of access to the buyer's temporary tag database for a |
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| 69 | 69 | | dealer whose access is suspended under this subsection. |
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| 70 | 70 | | SECTION 4. This Act takes effect September 1, 2021. |
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