16 TAC §111.2, §111.19
The Texas Motor Vehicle Board of the Texas Department of
Transportation proposes a new definition of License Purveyor at §111.2(12)
and new §111.19 concerning the purveying of motor vehicle dealer licenses.
The sections define a license purveyor, prohibit purveying of licenses, and
to implement this prohibition, set out restrictions on who may submit and
telephonically obtain information regarding a license application.
On May 16, 1996, the Motor Vehicle Board issued a Policy Statement concerning
license purveyors. The Board found that individuals, who for a fee, purport
to assist applicants in the application or renewal process, are an unreasonable,
and frequently costly, barrier between the agency and the individual applicant.
The Board found that this obstacle between the agency and the applicant is
not in the best interest of the licensee body or the consuming public. Frequently
these purveyors make unwarranted promises to both worthy and unworthy applicants,
charging onerous fees for services that the agency itself is well prepared,
and in fact is mandated, to provide to new applicants and renewing licensees.
In the Policy Statement, the Board recognized that licensed attorneys,
certified public accountants, and those individuals acting without remuneration,
are not an impediment to the licensing process, and therefore should not be
included in the definition of license purveyor. Furthermore, the Board found
that it is necessary to impose certain restrictions on the application process
that will serve to undermine purveying. To wit, the Board determined that
license applications and renewals shall only be filed by the applicant, the
applicant's attorney, or the applicant's certified public accountant. Additionally,
the Board determined that application and renewal fees, if not paid in cash,
should be drawn from an account held by the applicant, or from a trust account
of the applicant's designated attorney or certified public accountant. Finally,
the Board determined that information concerning an application, application
deficiencies, or new license numbers will not be provided telephonically to
license purveyors, and that to this end, attorneys and certified public accountants
may be required to provide proof of authority to act on behalf of an applicant.
The Board, in consideration of the foregoing and in recognition of a need
to set in motion the effective enforcement of its policy, proposes formalizing
its policy by adopting the amendment and new section. The new section will
be enforced pursuant to the sanctioning provisions of §4.06 of the Texas
Motor Vehicle Commission Code (TEX. REV. CIV. STAT. ANN. art. 4413(36)).
Brett Bray, Director, Motor Vehicle Division, has determined that for the
first five-year period the proposed rule and amendment are in effect, there
will be no fiscal implications for state or local government as a result of
enforcing or administering the rule.
Director Bray also determined that for each year of the first five-year
period the proposed rule and amendment are in effect, the public will benefit
from better oversight of a more expedient licensing process and the elimination
of fraudulent and meritless applications. Mr. Bray anticipates that there
will be some indeterminate economic savings to persons subject to regulation
by the Motor Vehicle Board to comply with the rule as proposed. Mr. Bray has
also certified that there will be no impact on local economies or overall
employment as a result of enforcing or administering the rule.
Comments (15 copies), may be submitted to Brett Bray, Director, Motor Vehicle
Division, Texas Department of Transportation, P.O. Box 2293, Austin, Texas
78768, (512) 416-4899. The Motor Vehicle Board will consider adoption of this
proposed rule at its meeting on June 13, 2002. The deadline for comments on
the proposal is 5:00 p.m. on May 24, 2002.
The new rule is proposed under the Texas Motor Vehicle Commission
Code, §3.06, which provides the Board with authority to adopt rules as
necessary and convenient to effectuate the provisions of the Act and to govern
practice and procedure before the agency.
Texas Motor Vehicle Commission Code §§4.01 and 4.02 and Transportation
Codes §§503.004, .006, .029, .030, .031, .032, .033 and .066 are
affected by the proposed rule.
§111.2.Definitions.
The following words and terms, when used in the sections under this
chapter, shall have the following meanings, unless the context clearly indicates
otherwise.
(1) - (11)
(No change)
(12)
License Purveyor -- Any person who for
a fee, commission, or other valuable consideration, other than a certified
public accountant or a duly licensed attorney at law, assists an applicant
in the preparation of a license application or represents an applicant during
the review of the license application.
(13)
[
(12)
] Mexican Motor Vehicle Dealer
-- a resident of the Republic of Mexico holding a current and valid license
to sell motor vehicles issued by the Secretaria de Economia of the Republic
of Mexico.
(14)
[
(13)
] Person -- Any individual,
firm, partnership, corporation, or other legal entity.
(15)
[
(14)
] Sale -- With regard to a
specific vehicle, the transfer of possession of that vehicle to a purchaser
for consideration.
(16)
[
(15)
] Temporary Cardboard Tag --
A buyer tag, supplemental buyer tag, dealer tag, or charitable organization
tag.
(17)
[
(16)
] Wholesale Dealer -- A licensed
dealer who only sells or exchanges vehicles with other licensed dealers.
§111.19.Processing of License Applications, Amendments, or Renewals.
(a)
Any application for a license, amendment of a license,
or renewal of a license issued by the Board must conform to the procedures
set out in subparagraphs (1) and (2) of this paragraph.
(1)
Applications for licenses, amendments of licenses, and
renewals of licenses will be accepted for processing only if filed by the
applicant, licensee, or that person's designated attorney or certified public
accountant; and
(2)
Application, amendment, or renewal fees paid by check,
credit or debit card, or electronic transfer, must be drawn from an account
held by the applicant, licensee, or from a trust account of the applicant's
designated attorney or certified public accountant.
(b)
Information concerning the status of an application, application
deficiencies, or new license numbers will not be provided telephonically to
license purveyors.
(c)
Attorneys and certified public accountants that file applications
on behalf of applicants may be required to provide proof of authority to act
on behalf of an applicant.
This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of
the Secretary of State on March 27, 2002.
TRD-200201935
Brett Bray
Director
Texas Motor Vehicle Board
Proposed date of adoption: June 13, 2002
For further information, please call: (512) 416-4899