Texas 2023 - 88th Regular

Texas Senate Bill SB2567 Compare Versions

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1	1	88R329 BEE-D
2	2	By: West S.B. No. 2567
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the issuance of temporary tags and license plates by a
8	8	motor vehicle dealer.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 501.022(d), Transportation Code, is
11	11	amended to read as follows:
12	12	(d) Subsection (c) does not apply to a motor vehicle
13	13	operated on a public highway in this state with a metal dealer's
14	14	license plate or a dealer's [or buyer's] temporary tag attached to
15	15	the vehicle as provided by Chapter 503.
16	16	SECTION 2. Section 501.0236(b), Transportation Code, is
17	17	amended to read as follows:
18	18	(b) A purchaser to whom this section applies may apply for:
19	19	(1) a title in the manner prescribed by the department
20	20	by rule; and
21	21	(2) [on expiration of the buyer's tag issued to the
22	22	purchaser under Section 503.063,] a 30-day permit under Section
23	23	502.095.
24	24	SECTION 3. Section 503.038(a), Transportation Code, is
25	25	amended to read as follows:
26	26	(a) The department may cancel a dealer's general
27	27	distinguishing number if the dealer:
28	28	(1) falsifies or forges a title document, including an
29	29	affidavit making application for a certified copy of a title;
30	30	(2) files a false or forged tax document, including a
31	31	sales tax affidavit;
32	32	(3) fails to take assignment of any basic evidence of
33	33	ownership, including a certificate of title or manufacturer's
34	34	certificate, for a vehicle the dealer acquires;
35	35	(4) fails to assign any basic evidence of ownership,
36	36	including a certificate of title or manufacturer's certificate, for
37	37	a vehicle the dealer sells;
38	38	(5) uses or permits the use of a metal dealer's license
39	39	plate or a dealer's temporary tag on a vehicle that the dealer does
40	40	not own or control or that is not in stock and offered for sale;
41	41	(6) makes a material misrepresentation in an
42	42	application or other information filed with the department;
43	43	(7) fails to maintain the qualifications for a general
44	44	distinguishing number;
45	45	(8) fails to provide to the department within 30 days
46	46	after the date of demand by the department satisfactory and
47	47	reasonable evidence that the person is regularly and actively
48	48	engaged in business as a wholesale or retail dealer;
49	49	(9) has been licensed for at least 12 months and has
50	50	not assigned at least five vehicles during the previous 12-month
51	51	period;
52	52	(10) has failed to demonstrate compliance with
53	53	Sections 23.12, 23.121, and 23.122, Tax Code;
54	54	(11) uses or allows the use of the dealer's general
55	55	distinguishing number or the location for which the general
56	56	distinguishing number is issued to avoid the requirements of this
57	57	chapter;
58	58	(12) misuses or allows the misuse of:
59	59	(A) a temporary tag authorized under this
60	60	chapter; or
61	61	(B) a license plate or set of license plates
62	62	issued under Section 503.063; or
63	63	(13) [refuses to show on a buyer's temporary tag the
64	64	date of sale or other reasonable information required by the
65	65	department; or
66	66	[(14)] otherwise violates this chapter or a rule
67	67	adopted under this chapter.
68	68	SECTION 4. Section 503.0626(c), Transportation Code, is
69	69	amended to read as follows:
70	70	(c) Before a dealer's or converter's temporary tag may be
71	71	displayed on a vehicle, the dealer or converter must enter into the
72	72	database through the Internet information on the vehicle and
73	73	information about the dealer or converter as prescribed by the
74	74	department. Except as provided by Section 503.0627(f)
75	75	[506.0632(f)], the department may not deny access to the database
76	76	to any dealer who holds a general distinguishing number issued
77	77	under this chapter or who is licensed under Chapter 2301,
78	78	Occupations Code, or to any converter licensed under Chapter 2301,
79	79	Occupations Code.
80	80	SECTION 5. Section 503.0632, Transportation Code, is
81	81	redesignated as Section 503.0627, Transportation Code, and amended
82	82	to read as follows:
83	83	Sec. 503.0627 [503.0632]. DEPARTMENT REGULATION OF
84	84	TEMPORARY TAGS AND ACCESS TO TEMPORARY TAG DATABASES. (a) The
85	85	department by rule may establish the maximum number of temporary
86	86	tags that a dealer or converter may obtain in a calendar year under
87	87	Section 503.062 or [,] 503.0625 [, or 503.063].
88	88	(b) The maximum number of temporary tags that the department
89	89	determines a dealer or converter may obtain under this section must
90	90	be based on the dealer's or converter's anticipated need for
91	91	temporary tags, taking into consideration:
92	92	(1) the dealer's or converter's:
93	93	(A) time in operation;
94	94	(B) sales data; and
95	95	(C) expected growth;
96	96	(2) expected changes in the dealer's or converter's
97	97	market;
98	98	(3) temporary conditions that may affect sales by the
99	99	dealer or converter; and
100	100	(4) any other information the department considers
101	101	relevant.
102	102	(c) At the request of a dealer or converter, the department
103	103	may authorize additional temporary tags of any type for the dealer
104	104	or converter if the dealer or converter demonstrates a need for
105	105	additional temporary tags resulting from business operations,
106	106	including anticipated need.
107	107	(d) The department's denial of a request under Subsection
108	108	(c) may be overturned if a dealer or converter shows by a
109	109	preponderance of the evidence the need for additional temporary
110	110	tags.
111	111	(e) The department shall monitor the number of temporary
112	112	tags obtained by a dealer or converter.
113	113	(f) If the department determines that a dealer or converter
114	114	is fraudulently obtaining temporary tags from the temporary tag
115	115	database, the department may, after giving notice electronically
116	116	and by certified mail to the dealer or converter, deny access to a
117	117	temporary tag database to the dealer or converter. A dealer or
118	118	converter denied access to a temporary tag database under this
119	119	subsection may request a hearing on the denial as provided by
120	120	Subchapter O, Chapter 2301, Occupations Code.
121	121	SECTION 6. Section 503.063, Transportation Code, is amended
122	122	to read as follows:
123	123	Sec. 503.063. DEALER-ISSUED LICENSE PLATES FOR BUYER
124	124	[BUYER'S TEMPORARY TAGS]. (a) Except as provided by this section,
125	125	a dealer shall issue to a person who buys a vehicle:
126	126	(1) a license plate or set of license plates, if a
127	127	license plate is required by law to be displayed on [one temporary
128	128	buyer's tag for] the vehicle; and
129	129	(2) a completed and signed form required by, as
130	130	applicable, Section 503.0631(c) or (d).
131	131	(b) A license plate or set of license plates issued under
132	132	this section [Except as provided by this section, the buyer's tag]
133	133	is valid for the operation of the vehicle while the registration
134	134	application submitted by the dealer on behalf of the buyer under
135	135	Section 501.0234 is pending [until the earlier of:
136	136	[(1) the date on which the vehicle is registered; or
137	137	[(2) the 60th day after the date of purchase].
138	138	(c) At the time of issuance of a license plate or set of
139	139	plates under this section, the [The] dealer [:
140	140	[(1) must show in ink on the buyer's tag the actual date
141	141	of sale and any other required information; and
142	142	[(2)] is responsible for displaying the license plate
143	143	or set of license plates in compliance with department rules
144	144	regarding the placement of license plates [tag].
145	145	(d) The dealer is responsible for the safekeeping and
146	146	distribution of each license plate or set of license plates
147	147	[buyer's tag] the dealer obtains from the department.
148	148	(e) A dealer shall obtain license plates and sets of license
149	149	plates from the [The] department in the manner provided by
150	150	department rules [may not issue a buyer's tag or contract for the
151	151	issuance of a buyer's tag but shall prescribe:
152	152	[(1) the specifications, color, and form of a buyer's
153	153	tag; and
154	154	[(2) procedures for a dealer to:
155	155	[(A) generate a vehicle-specific number using
156	156	the database developed under Section 503.0631 and assign it to each
157	157	tag;
158	158	[(B) generate a vehicle-specific number using
159	159	the database developed under Section 503.0631 for future use for
160	160	when a dealer is unable to access the Internet at the time of sale;
161	161	and
162	162	[(C) clearly display the vehicle-specific number
163	163	on the tag].
164	164	(f) The department shall ensure that a dealer may obtain
165	165	[generate] in advance a sufficient amount of license plates or sets
166	166	of license plates [vehicle-specific numbers under Subsection
167	167	(e)(2)(B)] in order to continue selling vehicles without an
168	168	unreasonable disruption of business due to the unavailability of
169	169	license plates [for a period of up to one week in which a dealer is
170	170	unable to access the Internet due to an emergency]. The department
171	171	shall establish an expedited procedure to allow a dealer [affected
172	172	dealers] to obtain [apply for] additional license plates or sets of
173	173	license plates [vehicle-specific numbers] so the dealer [they] may
174	174	remain in business [during an emergency].
175	175	(g) For each license plate or set of plates issued to a buyer
176	176	under this section, the [buyer's temporary tag, a] dealer shall
177	177	charge the buyer a registration fee [of not more than $5 as]
178	178	prescribed by the department to be sent to the comptroller for
179	179	deposit to the credit of the Texas Department of Motor Vehicles
180	180	fund.
181	181	(h) A federal, state, or local governmental agency that is
182	182	exempt under Section 503.024 from the requirement to obtain a
183	183	dealer general distinguishing number may issue one license plate or
184	184	set of license plates [temporary buyer's tag] in accordance with
185	185	this section for a vehicle sold or otherwise disposed of by the
186	186	governmental agency under Chapter 2175, Government Code, or other
187	187	law that authorizes the governmental agency to sell or otherwise
188	188	dispose of the vehicle. A governmental agency that issues a license
189	189	plate or set of license plates [temporary buyer's tag] under this
190	190	subsection:
191	191	(1) is subject to the provisions of Section [Sections]
192	192	503.0631 [and 503.067] applicable to a dealer; and
193	193	(2) is not required to charge the registration fee
194	194	under Subsection (g).
195	195	(i) A vehicle may be issued and display a license plate or
196	196	set of license plates under this section [buyer's tag] without
197	197	satisfying the inspection requirements of Chapter 548 if:
198	198	(1) the buyer of the vehicle is not a resident of this
199	199	state; and
200	200	(2) the vehicle:
201	201	(A) at the time of purchase, is not located or
202	202	required to be titled or registered in this state;
203	203	(B) will be titled and registered in accordance
204	204	with the laws of the buyer's state of residence; and
205	205	(C) will be inspected in accordance with the laws
206	206	of the buyer's state of residence, if the laws of that state require
207	207	inspection.
208	208	(j) A vehicle may be issued and display a license plate or
209	209	set of license plates under this section [buyer's tag] without
210	210	satisfying the inspection requirements of Chapter 548 if the
211	211	vehicle is purchased at public auction in this state and is:
212	212	(1) an antique vehicle as defined by Section
213	213	683.077(b); or
214	214	(2) a special interest vehicle as defined by Section
215	215	683.077(b) that:
216	216	(A) is at least 12 years of age; and
217	217	(B) has been the subject of a retail sale.
218	218	(k) A dealer may not issue a license plate or set of license
219	219	plates for a vehicle that is exempt from the payment of registration
220	220	fees under Subchapter J, Chapter 502, until the department approves
221	221	the application for registration of the vehicle.
222	222	SECTION 7. The heading to Section 503.0631, Transportation
223	223	Code, is amended to read as follows:
224	224	Sec. 503.0631. [BUYER'S TEMPORARY TAG] DATABASE OF
225	225	DEALER-ISSUED LICENSE PLATES.
226	226	SECTION 8. Section 503.0631, Transportation Code, is
227	227	amended by amending Subsections (a), (b), (c), and (d) and adding
228	228	Subsections (c-1), (d-1), and (d-2) to read as follows:
229	229	(a) The department shall develop, manage, and maintain a
230	230	secure, real-time database of information on buyers [persons] to
231	231	whom dealers issue a license plate or set of license plates under
232	232	Section 503.063 [temporary buyer's tags are issued] that may be
233	233	used by a law enforcement agency in the same manner that the agency
234	234	uses vehicle registration information.
235	235	(b) The database must allow law enforcement agencies to use
236	236	the information required to be included on a license plate [a
237	237	vehicle-specific number assigned to and displayed on the tag as
238	238	required by Section 503.063(e)(2)] to obtain information about the
239	239	person to whom the license plate [tag] was issued.
240	240	(c) Except as provided by Subsection (d), before a license
241	241	plate or set of license plates issued under Section 503.063
242	242	[buyer's temporary tag] may be displayed on a vehicle, a dealer
243	243	must, as prescribed by the department:
244	244	(1) enter into the database through the Internet
245	245	information about the buyer of the vehicle for which the license
246	246	plate or set of license plates [tag] was issued; [as prescribed by
247	247	the department] and
248	248	(2) complete and sign a form prescribed by the
249	249	department stating that the dealer entered the buyer's information
250	250	into the database as required by Subdivision (1) [generate a
251	251	vehicle-specific number for the tag as required by Section
252	252	503.063(e)].
253	253	(c-1) Except as provided by Section 503.0633(f)
254	254	[506.0632(f)], the department may not deny access to the database
255	255	to any dealer who holds a general distinguishing number issued
256	256	under this chapter or who is licensed under Chapter 2301,
257	257	Occupations Code.
258	258	(d) A dealer shall obtain 24-hour Internet access at its
259	259	place of business, but if the dealer is unable to access the
260	260	Internet at the time of the sale of a vehicle, the dealer shall
261	261	complete and sign a form, as prescribed by the department, that
262	262	states the dealer has Internet access, but was unable to access the
263	263	Internet at the time of sale to enter the buyer's information into
264	264	the database as required by Subsection (c). [The buyer shall keep
265	265	the original copy of the form in the vehicle until the vehicle is
266	266	registered to the buyer.] Not later than the next business day
267	267	after the time of sale, the dealer shall submit the information
268	268	required under Subsection (c).
269	269	(d-1) The forms prescribed by the department under
270	270	Subsections (c) and (d) must contain a notice to the buyer
271	271	describing the procedure by which the vehicle's registration
272	272	insignia will be provided to the buyer.
273	273	(d-2) Until a vehicle displaying a license plate or set of
274	274	license plates issued under Section 503.063 is registered to the
275	275	buyer, the buyer shall keep in the vehicle the original copy of the
276	276	form provided by the dealer as required by, as applicable,
277	277	Subsection (c) or (d).
278	278	SECTION 9. Subchapter C, Chapter 503, Transportation Code,
279	279	is amended by adding Section 503.0633 to read as follows:
280	280	Sec. 503.0633. DEPARTMENT REGULATION OF DEALER-ISSUED
281	281	LICENSE PLATES AND ACCESS TO DATABASE OF DEALER-ISSUED LICENSE
282	282	PLATES. (a) The department by rule may establish the maximum
283	283	number of license plates or sets of license plates that a dealer may
284	284	obtain in a calendar year under Section 503.063.
285	285	(b) The maximum number of license plates or sets of license
286	286	plates that the department determines a dealer may obtain under
287	287	this section must be based on the dealer's anticipated need for
288	288	license plates and sets of license plates, taking into
289	289	consideration:
290	290	(1) the dealer's:
291	291	(A) time in operation;
292	292	(B) sales data; and
293	293	(C) expected growth;
294	294	(2) expected changes in the dealer's market;
295	295	(3) temporary conditions that may affect sales by the
296	296	dealer; and
297	297	(4) any other information the department considers
298	298	relevant.
299	299	(c) At the request of a dealer, the department may authorize
300	300	additional license plates or sets of license plates for the dealer
301	301	if the dealer demonstrates a need for additional license plates or
302	302	sets of license plates resulting from business operations,
303	303	including anticipated need.
304	304	(d) The department's denial of a request under Subsection
305	305	(c) may be overturned if a dealer shows by a preponderance of the
306	306	evidence the need for additional license plates or sets of license
307	307	plates.
308	308	(e) The department shall monitor the number of license
309	309	plates and sets of license plates obtained by a dealer.
310	310	(f) If the department determines that a dealer is
311	311	fraudulently obtaining license plates or sets of license plates or
312	312	fraudulently using the database or dealer-issued license plates,
313	313	the department may, after giving notice electronically and by
314	314	certified mail to the dealer, deny access to the database of
315	315	dealer-issued license plates to the dealer. A dealer denied access
316	316	to the database of dealer-issued license plates under this
317	317	subsection may request a hearing on the denial as provided by
318	318	Subchapter O, Chapter 2301, Occupations Code.
319	319	SECTION 10. Subchapter C, Chapter 503, Transportation Code,
320	320	is amended by adding Section 503.0671 to read as follows:
321	321	Sec. 503.0671. UNAUTHORIZED USE OR DISTRIBUTION OF
322	322	DEALER-ISSUED LICENSE PLATE. (a) A person may not operate a
323	323	vehicle that displays a dealer-issued license plate or set of
324	324	license plates in violation of this chapter or Chapter 502.
325	325	(b) A person may not sell or distribute a dealer-issued
326	326	license plate or set of license plates or an item represented to be
327	327	a dealer-issued license plate or set of license plates unless the
328	328	person is a dealer issuing the license plate or set of license
329	329	plates in connection with the sale of a vehicle.
330	330	SECTION 11. Section 503.068(c), Transportation Code, is
331	331	amended to read as follows:
332	332	(c) For purposes of this section, a boat trailer carrying a
333	333	boat is not a commercial vehicle carrying a load. A dealer
334	334	complying with this chapter may affix to the rear of a boat trailer
335	335	the dealer owns or sells a metal dealer's license plate, a [or]
336	336	temporary tag issued under Section 503.061 or [,] 503.062, or a
337	337	license plate issued by the dealer under Section 503.063.
338	338	SECTION 12. The changes in law made by this Act apply only
339	339	to an offense committed on or after March 1, 2025. An offense
340	340	committed before March 1, 2025, is governed by the law in effect on
341	341	the date the offense was committed, and the former law is continued
342	342	in effect for that purpose. For purposes of this section, an
343	343	offense was committed before March 1, 2025, if any element of the
344	344	offense was committed before that date.
345	345	SECTION 13. Not later than March 1, 2024, the Texas
346	346	Department of Motor Vehicles shall:
347	347	(1) adopt rules necessary to implement the changes in
348	348	law made by this Act; and
349	349	(2) create the database described by Section 503.0631,
350	350	Transportation Code, as amended by this Act.
351	351	SECTION 14. (a) Except as otherwise provided by Subsection
352	352	(b) of this section, this Act takes effect March 1, 2025.
353	353	(b) Section 13 of this Act takes effect September 1, 2023.