87R10571 DRS-F By: Thompson of Brazoria H.B. No. 4276 A BILL TO BE ENTITLED AN ACT relating to establishing the maximum number of temporary tags that may be obtained by a motor vehicle dealer or converter. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter C, Chapter 503, Transportation Code, is amended by adding Section 503.0632 to read as follows: Sec. 503.0632. MAXIMUM NUMBER OF TEMPORARY TAGS. (a) The department by rule may establish the maximum number of temporary tags that a dealer or converter may obtain under Section 503.062, 503.0625, 503.0626, 503.063, or 503.0631. (b) The maximum number of temporary tags that the department determines a dealer or converter may obtain under this section must be based on the dealer's or converter's anticipated need for temporary tags, taking into consideration: (1) the dealer's or converter's: (A) time in operation; (B) sales data; and (C) expected growth; (2) expected changes in the dealer's or converter's market; and (3) temporary conditions that may affect sales by the dealer or converter. (c) At the request of a dealer or converter before exceeding the maximum number of temporary tags established under this section, the director or the director's designee may authorize additional temporary tags of any type for the dealer or converter if the dealer or converter demonstrates a need for additional temporary tags resulting from business operations, including anticipated need. (d) The director's or director's designee's denial of a request under Subsection (c) may not be overturned in the absence of an abuse of discretion. SECTION 2. This Act takes effect September 1, 2021.