Part 1.
TEXAS DEPARTMENT OF TRANSPORTATION
Chapter 8.
MOTOR VEHICLE DISTRIBUTION
The Texas Department of Transportation (department) adopts new Chapter
8, Motor Vehicle Distribution, Subchapter A, General Provisions, §§8.1
- 8.6; Subchapter B, Adjudicative Practice and Procedure, §§8.21
- 8.58; Subchapter C, Licenses, Generally, §§8.81 - 8.86, Subchapter
D, Franchised Dealers, Manufacturers, Distributors, Converters, and Representatives, §§8.101
- 8.114; Subchapter E, General Distinguishing Numbers, §§8.131 -
8.148, Subchapter F, Lessors and Lease Facilitators, §§8.171 - 8.181;
Subchapter G, Warranty Performance Obligations, §§8.201 - 8.210;
and Subchapter H, Advertising, §§8.241 - 8.271. Sections 8.138,
8.141, 8.146, 8.147, 8.175, 8.208, 8.245, 8.247, 8.248, and 8.254 are adopted
with changes to the proposed text as published in the October 14, 2005, issue
of the
Texas Register
(30 TexReg 6650). Sections
8.1 - 8.6, 8.21 - 8.58, 8.81 - 8.86, 8.101 - 8.114, 8.131 - 8.137, 8.139,
8.140, 8.142 - 8.145, 8.148, 8.171 - 8.174, 8.176 - 8.181, 8.201 - 8.207,
8.209, 8.210, and 8.241 - 8.244, 8.246, 8.249 - 8.253, and 8.255 - 8.271 are
adopted without changes to the proposed text as published in the October 14,
2005, issue of the
Texas Register
(30 TexReg
6650) and will not be republished.
EXPLANATION OF ADOPTED NEW SECTIONS
House Bill 2702, 79th Legislature, Regular Session, 2005, dissolved the
Motor Vehicle Board (board) and transferred its rulemaking responsibilities
to the Texas Transportation Commission (commission). Therefore it is necessary
to repeal Title 16, Part 6, and simultaneously adopt new sections under Title
43 to reflect the new delegation of duties and to transfer the rules to the
appropriate title. Overall changes from Title 16, Part 6 correct statutory
cites and grammar, and reflect the new delegation of duties to the director.
In addition, HB 988 and HB 2495, 79th Legislature, Regular Session, 2005,
require revisions to current rules regarding the vehicle registration and
title application process. HB 988 amends Transportation Code, §501.0234,
to state that the dealer has a reasonable time to apply for the vehicle title
upon the sale of a vehicle. HB 2495 allows a dealer to sell a vehicle at auction
prior to taking assignment of title. The rules are revised to address these
changes.
Further, the new rules include changes to the temporary tag design format.
This revision is adopted to increase the security of the tag and require dealers
to maintain accessible records. Rules are also adopted to allow manufacturers
and distributors to sell used vehicles to dealers at wholesale auctions without
requiring a general distinguishing number. The new rules delete the requirement
that corporations provide verification of payment of franchise taxes prior
to obtaining a license.
Subchapter A, General Provisions.
Existing Title 16, Part 6, Chapter 101, Subchapter A, §§101.2
- 101.4 and §101.28, containing general provisions describing the scope
of the chapter is transferred to Title 43, Chapter 8, Subchapter A, with the
following additions. New §8.1, Objective, sets out the purpose and parameters
for regulating motor vehicle distribution. New §8.3, Duties and Powers
of Director, describes the powers and duties of the director of the Motor
Vehicle Division (division).
Subchapter B, Adjudicative Practice and Procedure.
Existing Title 16, Part 6, Chapter 101, Subchapter C, relating to management
of contested cases before the division, is transferred to Title 43, Chapter
8, Subchapter B. There are no significant amendments to this subchapter.
Subchapter C, Licenses, Generally.
Existing Title 16, Part 6, §§103.10, 103.11, 103.15, 103.16 and
111.19, relating to all licensees, are transferred to Title 43, Chapter 8,
Subchapter C, with the following addition. New §8.81, Objective, states
that the purpose of Subchapter C is to implement the intent of the legislature
as declared in Occupations Code, Chapter 2301, and Transportation Code, Chapter
503.
Subchapter D, Franchised Dealers, Manufacturers, Distributors and Converters.
The portions of Title 16, Part 6, Chapter 103, relating to licensing franchised
dealers, manufacturers, distributors, and converters, protest requirements
and motor home shows is transferred to Title 43, Chapter 8, Subchapter D,
with the following addition. New §8.101, Objective, states that the purpose
of Subchapter D is to implement Occupations Code, Chapter 2301.
New §8.114, Sales of Vehicles by Manufacturer/Distributor at Wholesale
Auction, will allow manufacturers, distributors, and their wholly-owned subsidiaries
to sell used vehicles that are assigned to them, to dealers through wholesale
auctions. Additionally, the new rule provides for the cancellation of all
retail and wholesale general distinguishing numbers held by manufacturers
and distributors when the rule becomes effective, except where otherwise allowed
under Occupations Code, Chapter 2301 (the Code).
Occupations Code, §2301.476(c) was adopted by the Texas Legislature
during its 76th session, and codified during the 77th legislative session.
By its terms, it prohibits manufacturers and distributors from owning an interest
in a motor vehicle dealership, operating or controlling a dealership, or acting
in the capacity of a dealer, thereby prohibiting these licensees from holding
general distinguishing numbers.
It is the business of manufacturers and distributors to put vehicles into
the stream of commerce by selling them to dealers. This activity, by means
of wholesale transactions to dealers, is not considered to be acting in the
capacity of a dealer. Wholesale auctions have required any person who buys
or sells vehicles at wholesale auction to have a general distinguishing number.
The practice of allowing manufacturers to dispose of vehicles acquired from
lease returns and other such programs at wholesale auction is a necessary
and important way for dealers to acquire a supply of this category of vehicle
in an efficient and cost-effective manner that provides potential benefits
to the public. Off-lease vehicles are often a source of certified used vehicles
that can be purchased by consumers at a reasonable price with extended warranties.
New §8.114 permits manufacturers and distributors to sell used vehicles
at a licensed wholesale motor vehicle auction without a general distinguishing
number, provided that such vehicles are properly assigned into the appropriate
entity's name, whether it is the manufacturer, distributor, or wholly-owned
subsidiary. Since it is unlawful and upon adoption of §8.114, unnecessary
in most cases for manufacturers and distributors to possess general distinguishing
numbers, the new rule also provides for the cancellation of those general
distinguishing numbers. It should be noted, however, that the Code does allow
manufacturers and distributors to own interests in dealerships, or entities
that hold general distinguishing numbers, under certain limited circumstances
enumerated in Occupations Code, §2301.476.
Subchapter E, General Distinguishing Numbers.
Existing Title 16, Part 6, Chapter 111, relating to general distinguishing
number (GDN) licenses is transferred to Title 43, Chapter 8, Subchapter E,
with the following additions and changes.
Section 8.133(e), General Distinguishing Number, is changed from the original §111.3(e),
by deleting the requirement that corporations must provide verification that
corporate franchise taxes have been paid to obtain a license, to comport with
the repeal of Article 2.45 of the Texas Business Corporation Act.
Section 8.138, Temporary Cardboard Tags, §8.139, Metal Dealer License
Plates and Temporary Cardboard Tags, and §8.146, Converters License Plates
and Temporary Cardboard Tags, is revised from the original Title 16, Part
6, §§111.8, 111.9 and 111.17. Transportation Code, §503.062
and §503.0625 provide motor vehicle dealers and converters with a means
to transport and test drive vehicles with expired or otherwise invalid registration
by allowing them to use cardboard dealer and converter tags. Transportation
Code, §503.063 authorizes dealers to place temporary buyer's tags on
unregistered vehicles to allow a purchaser to drive the vehicle until registration
is completed. A dealer may issue a supplemental temporary buyer's tag only
if the dealer is unable to obtain documents necessary to transfer title from
a lienholder. Under the statute, the department is responsible for prescribing
the specifications, form and color of temporary tags, but may not issue or
contract to issue the tags.
The current design of temporary buyer's tags was adopted effective December
31, 1997, in conjunction with amendments required as a result of legislation
that provided for issuance of a supplemental buyer's tag (House Bill 1137,
75th Legislature, Regular Session, 1997). Currently, the prominent feature
of the buyer's and supplemental buyer's tags is the expiration date of the
tag. The prominent feature of dealer and converter tags is the license number.
The tags also contain the department's "Flying T" copyrighted logo or mark,
which may only be imprinted by licensed printers. This design was adopted
in an effort to stop counterfeiting and help law enforcement easily ascertain
whether temporary buyer's tags were legitimate.
The department has observed no decrease in counterfeiting or misuse of
temporary buyer's tags. The current design may actually put law enforcement
at greater risk inasmuch as peace officers could assume that a tag is genuine
because it bears the TxDOT mark, when it is possibly counterfeit. The revisions
may improve public safety and aid law enforcement by reducing the number of
false and forged temporary tags. Changing the form means that any temporary
tag using the old form is presumably invalid. Currently, such invalid or false
tags can be used to transport stolen vehicles and conceal unregistered vehicles
being used for contraband trafficking.
The revisions are intended to make certain changes to the overall design
and use of all temporary tags. Tags will no longer contain the department's
"Flying T" logo and printers will no longer be required to execute licensing
agreements with the department to print temporary tags.
In response to comments, the department is amending §8.138 and its
appendices, relating to dealer and buyer's tags. Section 8.146, relating to
converter tags, is also amended to maintain uniformity. The prominent feature
of the dealer and converter tags will be the phrase "UNTITLED VEHICLE" instead
of "UNREGISTERED VEHICLE" as originally proposed. In addition, the expiration
date of the tag is reinstated. The department is amending 8.138 to eliminate
the proposed requirement that the material of the tag be 24 Point Poly Coated
C2S Board, and will retain the requirement for 6-ply cardboard material contained
in the original rule. All temporary tags must contain a unique control number
printed on the front of the tag. Dealers and converters who issue tags will
be required to maintain a record of each tag issued. In response to comments,
the department is adopting §8.138 and §8.146 with changes to clarify
that tags may be issued and issuance recorded in any commercially reasonable
manner, so long as tag issuance may be traced.
If a temporary tag or metal dealer plate can no longer be accounted for,
it must be noted in the dealer's or converter's log and reported as missing
to the department. Dealers already maintain information relating to sales
of used vehicles under Occupations Code, Chapter 2305, (Records of Certain
Vehicle Repairs, Sales, And Purchases) and §8.144 of Subchapter E. The
log requirement will merely involve noting information about the issuance
of the temporary tag in addition to what is currently required. Law enforcement
and department personnel frequently find temporary tags in the possession
of persons who did not buy a vehicle from a dealer. The log will provide information
to law enforcement and the department on whether the dealer issued the unauthorized
tag, and will protect dealers against allegations of wrongdoing if the dealer
can show the log has been completed correctly.
New §8.138(d) states that the log shall be available for review by
department personnel during normal working hours. In addition, temporary tags
that cannot be accounted for shall be marked as void in the dealer's log to
enable law enforcement and department personnel to identify which tags may
be unlawfully in circulation and subject to misuse.
New §8.138(e) provides for a compulsory compliance period. The rule
states that dealers have until May 1, 2006 to implement the log requirements
and the new temporary tag design. Prior to May 1, 2006 the previous temporary
tag design of 16 TAC §111.8 will also be in effect and can be used by
the dealer. This will allow dealers additional time to deplete current temporary
tag stock and establish a new process to meet the log requirements. Dealers
are required to implement the new tag design and the log requirements simultaneously.
Other revisions eliminate unique charitable organization tags, and allow
use of dealer tags instead. Tags placed in the rear window of a vehicle must
be visible from a distance of 15 feet. When tags are placed in license plate
holders, printed matter may not be obscured. Other overall revisions conform
the font and style of each tag to one another, conform language to that contained
in Transportation Code, §§503.062, 503.0625, and 503.063, and correct
grammar.
New §8.144, Record of Sales and Inventory, is modified from the original
Title 16, Part 6, §111.15. HB 988, 79th Legislature, Regular Session,
2005, amended Transportation Code §501.0234, to allow the purchaser of
a vehicle to choose the county in which a dealer should apply for title and
registration. It also states that a dealer has a reasonable time to comply
and is not in violation during the time in which the dealer is making a good
faith effort to comply. The rule formerly required dealers to provide purchasers
with the receipt for title application within 20 working days of the date
of purchase. In recognition of the difficulties dealers may encounter when
applying for title in distant parts of the state, §8.144(c) requires
dealers to apply for certificate of title and registration within 20 working
days, rather than provide the receipt. Dealers are still required to provide
the purchaser with the application receipt, and must maintain a copy of the
receipt in the sales file. A copy of the receipt in the sales file may be
used as evidence of a good faith effort to comply with the filing requirement.
Section 8.144(e) is revised from the Title 16 Part 6 rules to require dealers
who sell vehicles that will be transferred out of state, to either provide
the purchaser with properly assigned evidence of ownership or file application
for certificate of title within 20 working days. The addition of the time
limit will help purchasers title and register vehicles in their new location
in a timely fashion, and allow them to receive the license plates that are
necessary to operate their vehicles on public roadways.
House Bill 2495, 79th Legislature, Regular Session, 2005, added Transportation
Code, §503.039, which allows public auctions who hold GDNs to take title
from the consignor of a vehicle after the sale, but prior to transferring
it to the buyer. In addition, auctions must apply for transfer of title on
behalf of the purchaser within 20 working days of the sale of the vehicle.
New §8.144(f) clarifies the records that public motor vehicle auctions
must keep regarding vehicles consigned for sale and the manner and sequence
in which title assignments must be made.
Section 8.146(o) provides converters the same compulsory compliance period
given to dealers in §8.138(e). Converters will have until May 1, 2006
to implement the new temporary tag design and log requirements. Converters
are required to implement the log requirement simultaneously with the new
tag design.
Subchapter F, Lessors and Lease Facilitators.
Existing Title 16, Part 6, Chapter 109, relating to licensing lessors and
lease facilitators, is transferred to Title 43, Chapter 8, Subchapter F. There
are no significant revisions to this subchapter.
Subchapter G, Warranty Performance Obligations.
Existing Title 16, Part 6, Chapter 107, relating to the Lemon Law, is transferred
to Title 43, Chapter 8, Subchapter G, with the following changes. Provisions
allowing parties to choose whether to file motions for rehearing with the
board or the director are revised to reflect the new delegation of duties.
Subchapter H, Advertising.
Existing Title 16, Part 6, Chapter 105, relating to advertising regulation,
is transferred to Title 43, Chapter 8, Subchapter H. There are no significant
revisions to this subchapter.
The department conducted five statewide hearings to receive comments concerning
the proposed amendments. Various oral and written comments were received from
51 individuals and entities representing licensed franchised and independent
dealers, dealer organizations, law enforcement, toll authorities, an international
bridge administrator, and concerned citizens.
COMMENTS
Comment: The Texas Automobile Dealers Association (TADA) commented regarding
proposed §8.114, Sale of Vehicles by Manufacturer/Distributor at Wholesale
Auction. TADA suggests changing the language from "vehicle" to "a motor vehicle
or a towable recreational vehicle that has been the subject of a retail sale"
since the word "vehicle" is not defined in Occupations Code Chapter 2301,
but the terms "motor vehicle", "towable recreational vehicle" and "new motor
vehicle" are defined.
Response: The department does not concur. General Distinguishing Numbers
are issued under Transportation Code, Chapter 503, and allow a person to buy,
sell, or exchange used motor vehicles. Section 8.114 is not promulgated pursuant
to Occupations Code, Chapter 2301, but rather under the authority of Transportation
Code, Chapter 503, which does define "vehicle" as "a motor vehicle, motorcycle,
house trailer, trailer, or semi-trailer." The requested change is unnecessary.
Comment: Two law enforcement officers explained that officers can access
information without leaving their patrol cars because they can search a database
by the metal license plate number and retrieve information as to whether the
owner of the vehicle has warrants, if the vehicle has ever been stopped before,
or if the vehicle is stolen. That information is not available if a vehicle
bears a temporary tag. Three officers commented that criminals use temporary
tags because they know that law enforcement cannot get immediate information
and that a traffic stop is necessary to obtain the Vehicle Identification
Number (VIN).
Response: The department agrees that there is no mechanism for law enforcement
to timely obtain information about vehicles bearing temporary tags. Legislative
change is necessary to address the concerns of real-time or near real-time
information. However, the new rules will aid law enforcement investigations.
Comment: Three officers explained that dealers' GDNs cannot now be identified
through law enforcement databases. If GDNs were in the database, every vehicle
bearing a temporary tag would be listed as stolen, harming innocent consumers.
Two independent dealers stated that black dealer tags do not contain any information
to tie the tag to a vehicle. One independent dealer stated he was unaware
that there is not database access regarding the dealer license number on a
temporary tag. Two claimed that dealer numbers are in the database, and that,
coupled with the VIN and buyer's name currently on buyer's tags, provide enough
information for law enforcement.
Response: The department agrees that law enforcement databases do not contain
dealer's license numbers, and there is no mechanism for law enforcement to
timely obtain information about dealers of vehicles bearing temporary tags.
However, the log requirement and control numbering system will aid law enforcement
in investigating fraudulent tags.
Comment: The McAllen/Hidalgo International Bridge Director commented that
the state has no control over temporary tags. Ten law enforcement officers
stated that tags are not traceable, and that enforcement cannot trace a vehicle
to its purchaser or authorized driver if it bears temporary tags. One officer
commented that legitimate tags are currently printed in bulk by licensed printers,
and they have no way to track how many they actually have. Three dealers stated
that bogus blank tags can be purchased at flea markets.
Response: The department concurs that temporary tags cannot be issued or
controlled by the state. The statute restricts the department to controlling
the size, color, and specifications of temporary tags. However, the log requirement
and the control numbering system will improve the current system.
Comment: Three law enforcement officers and four franchised dealers commented
about officer safety concerns. Officers testified that the inability to identify
a vehicle or its owner from the information on a temporary tag is a safety
issue for enforcement. If a vehicle is involved in a serious crime against
an officer or a person, the police are unable to track down the vehicle. One
officer stated that enforcement does not want to create additional work for
dealers, but said dealers should think about the public safety issue.
Response: The department concurs with these public safety issues and believes
as adopted the new temporary tag system is a positive step for law enforcement
concerns.
Comment: Two franchised dealers quoted law enforcement officers they had
talked to. One stated that the current tag system is sufficient for police
information and safety, and that he had not had a problem in 20 years. Another
said most officers she talked to told her that their apprehensions are no
greater than when they stop a vehicle with a permanent plate. One franchised
dealer commented that an officer is in just as much danger walking into a
convenience store as he is stopping a car. Another commented that officers
should not be nervous about stopping a car with a paper tag since that is
their job. He then said that a traffic stop is one of the most dangerous things
a patrol officer does.
Response: The department does not agree. The inability to identify a vehicle
or its owner before approaching it on foot is a serious safety concern and
adds unnecessary risk. However, the current statute does not authorize the
department to implement a temporary tag database.
Comment: Several law enforcement officers commented that temporary tags
are not considered to be government records and that there is no penalty for
counterfeiting or altering a temporary tag. One officer stated that three
district attorneys in three different counties advised him that they could
not successfully prosecute for tampering with the government record unless
they could prove harm. The dealer association countered by citing Martinez
v. The State of Texas, 6 S.W.3d 674 (Tex. Civ. App.-Corpus Christi 1999, no
writ), where the court held that a motor vehicle buyer's tag is a government
document because it is a record required by law to be kept by others for information
of government. The court distinguished between a governmental record "issued
by the government" and one that is "issued pursuant to the government's instruction."
Response: The difference appears to be a matter of degree. Temporary buyer's
tags are considered to be records required to be kept by others for information
of government. (Penal Code, §37.01(2)(B). However, a temporary tag does
not become such a record until the required information is written on the
tag. There are no criminal penalties for misuse of a blank tag. Under Penal
Code, §37.10(c)(1), an offense is a Class A Misdemeanor unless the actor's
intent is to defraud or harm another, in which event the offense is a state
jail felony. There are provisions in §37.10(g) that hold that a person
is presumed to defraud or harm another, if the offender acts with regard to
two or more government documents and the documents are licenses, certificates,
permits .. .issued by the government. Temporary tags are not considered licenses,
certificate or permits issued by the government, and therefore, are not subject
to enhanced penalties unless intent to defraud or harm can be proven. Under
Transportation Code, §§503.062, 503.0625 and 503.063, temporary
tags cannot be issued by the department. The department welcomes the opportunity
to clarify the issue, but notes that the proposed rules cannot affect the
status of temporary tags as government documents.
Comment: Four auto theft task force officers commented that temporary tags
are stolen from dealerships by criminals or dealership employees. One stated
that the biggest problem with tag theft is at smaller used car dealerships.
Two officers commented that it is not unusual for criminals to pretend to
be buyers and divert the salesman's attention so they can steal temporary
tags. Three officers stated that they have seen salesmen and other disloyal
employees steal tags and sell them when they are not secured. One stated that
he has seen stolen or counterfeited tags bearing the names of the largest
franchised dealerships in San Antonio. An independent dealer acknowledged
that there are some dealers who would sell temporary tags.
Response: The department concurs that temporary tags may be stolen from
legitimate dealerships for criminal use. Requiring the log and control number
will assist law enforcement in investigating stolen blank tags.
Comment: Nine franchised dealers and five independent dealers commented
that their tags are kept secured, and described the security process at length.
One independent dealer conceded that an employee could steal tags, but his
employees know they will be fired immediately if they do. Another dealer commented
that dealers are not allowed to leave black tags on vehicles because they
are supposed to be kept under lock and key at all times. One dealer commented
that black dealer tags are often found lying around at auctions.
Response: The department acknowledges that not all dealers neglect tag
security. However, not all dealers treat temporary tags as accountable documents,
and they are subject to theft. There is no requirement that black dealer tags
be kept under lock and key. Transportation Code, §503.063(d) does require
dealers to be responsible for red buyer's tags.
Comment: Five auto theft task force officers from San Antonio, El Paso,
Hidalgo County, and the Department of Public Safety (DPS), as well as two
independent dealers commented that tags are counterfeited to abet criminal
activities. Three detectives noted that temporary tags are commonly counterfeited
in Mexico. One DPS sergeant displayed a false red tag that had Velcro on the
back for fast removal and application. Another officer stated that tags are
falsified so well, including the department's "Flying T" mark, that one cannot
tell the difference between a real one and a counterfeit. Criminals are learning
that red buyer tags are drawing attention from law enforcement. One auto theft
detective noted that he has observed an increase in counterfeiting and abuse
of black dealer tags.
Response: The department concurs that the current design of temporary tags
is easily counterfeited and believes that the change in the design including
the control number will provide law enforcement with an investigation tool.
Comment: An officer from the Department of Homeland Security, Immigration,
and Customs Enforcement explained that the department is responsible for national
security, terrorism investigations, contraband and drug smuggling, money laundering
and critical technology exportation. Its investigations have revealed that
criminal organizations often place counterfeit dealer tags on vehicles to
facilitate covert transportation of illegal commodities and allow criminals
to travel with anonymity. Officers from auto theft task forces in Laredo,
San Antonio, Galveston, El Paso, and the Travis County Sheriff's department
commented that criminals use temporary tags in the commission of crimes and
for narcotic trafficking. Tags are used by criminals to conceal identity.
Some criminals are known to be armed and dangerous. Stolen or counterfeited
dealer tags allow criminals to steal vehicles in broad daylight because officers
believe the vehicles are being demonstrated. The director of the McAllen/Hidalgo
International Bridge stated that many stolen vehicles leave the country on
cardboard tags. One auto theft detective noted that criminals keep a supply
of counterfeit temporary tags to use as needed.
Response: The department concurs that the current temporary tag can be
used to facilitate criminal activities. The new tag and log requirements are
designed to aid law enforcement in investigations regarding fraudulent use
of temporary tags.
Comment: Fourteen franchised dealers and seven independent dealers stated
that they had never been cited for tag violations. Another dealer stated that
four police departments he queried advised that they had never had a tag problem
with franchised dealers. Three dealers testified that they had never had a
vehicle bearing temporary tags used in a crime.
An independent dealer and an officer commented that it is common to see
counterfeited tags bearing the names of large, reputable franchised dealers
at flea markets and on curbstoned vehicles in San Antonio and Houston. A law
enforcement officer commented that it is not surprising dealers are unaware
if vehicles bearing their tags are used in crimes, because enforcement does
not usually notify the dealer when their tags are used to conceal criminal
behavior.
Response: The department acknowledges that many dealers are not aware of
the scope of the problem, and concurs with comments indicating that temporary
tags are used in criminal activity.
Comment: One dealer explained that vehicles that have been salvaged are
not eligible for a title or license plates. The vehicle should receive a salvage
certificate. A salvage vehicle is not to be driven or sold until it is rebuilt
and obtains a salvage title. A law enforcement officer and a dealer commented
that salvage dealers and other individuals use temporary tags to drive vehicles
that cannot pass inspection on the public streets. In addition, salvage vehicles
are often for sale on the side of the road, or "curbstoned". The sellers use
temporary tags to disguise the fact that the vehicles are salvage and cannot
pass inspection or qualify for a title. Consumers purchase unsafe vehicles
without ever knowing the true condition of the vehicle.
Two enforcement officers and two dealers commented that individuals and
criminals use temporary tags to mask the fact that the driver does not have
insurance or that the vehicle cannot pass inspection.
Response: The department agrees that temporary tags are used to conceal
salvage, uninspected, and unsafe vehicles. Lack of control of temporary tags
causes injury to the general public by allowing unsafe vehicles on the road.
Although the rules will not eliminate this problem, the additional requirements
will provide some deterrent.
Comment: Two officers and a former investigator, now with the North Texas
Tollway Authority, commented that the state loses revenue through misuse of
temporary tags. Small independent dealers who provide their own financing
are known to issue a series of buyer's tags instead of putting a lien on the
vehicle and titling it. If the consumer misses a payment, the vehicle is repossessed.
Since the vehicle was never registered, no sales tax was paid. The investigator
stated that individuals counterfeit tags to avoid paying taxes and obtaining
liability insurance.
Response: The department agrees that misuse of temporary tags causes the
state to lose tax revenue. The new design of the temporary buyer tag provides
notice to the purchaser that the tag is issued for 21 days only; thereby,
advising them that they should receive the metal plates within this time period.
Comment: A representative of the North Texas Tollway Authority explained
that the Authority automatically takes a picture of the license plate as a
vehicle goes through. If the owner does not pay, the authority sends a letter
to the owner of the vehicle. It cannot identify the owner to send a letter
and collect tolls if the vehicle bears paper plates. The revenue is lost.
For example, a woman was arrested for failing to pay an $82,000 debt to the
toll authority. Had her vehicle carried paper tags, the authority would not
have been able to locate her at all, and there would be no chance of recovering
the money.
Response: The department agrees that misuse of temporary tags causes the
state to lose toll revenue. The current statute does not provide for a temporary
tag database that would address the concerns of the Toll Authority.
Comment: One officer commented that taxes should be calculated on the value
of a vehicle, rather than what the seller or buyer declares. The State of
Texas is losing a lot of revenue because people falsify sales prices.
Response: This subject is outside the scope of this rule proceeding.
Comment: One dealer commented that there are more legitimate dealers collecting
and paying tax and in compliance than those avoiding the law.
Response: The department acknowledges that there are probably more dealers
who abide by the law and pay sales tax than those who do not. However, there
continues to be a problem in this area.
Comment: The Texas Automobile Dealers Association (TADA) commented that
dealers have every incentive to timely title and register vehicles in order
to have their vehicles funded and pay the floor plan financing. Ten franchised
dealers commented that there is no benefit in delaying the application for
title. One dealer commented that a dealership that plays the float is a dealership
in trouble.
Response: This incentive only applies where there is floor plan financing
or perhaps where the vehicle is the subject of third party retail financing.
The opposite would be true in cash sales and where the dealer is self-financing
its sales.
Comment: TADA commented that tax audits by the Comptroller indicate there
are few deficiencies, and provided data from the audits in support.
Response: It is unclear whether the audit data applies to franchised dealers
or all dealers. Nevertheless, the data provided reveals that in fiscal year
2005, with 42 audits conducted of either 2,000+ franchised dealers or 16,000+
dealers, nearly 1.9 million dollars in sales tax deficiencies were discovered.
Two results are apparent. First, 32 out of the 42 audits yielded the deficiencies.
Thus, 75% of the time a deficiency was uncovered (this same ratio is also
true of the 2004 period and, so far, it is 100% for 2006). Second, only 42
audits in each fiscal year were necessary to uncover nearly 1.9 million dollars
in unpaid taxes in fiscal year 2005 and almost $73,000 in fiscal year 2004.
The department cannot estimate how large the tax deficiency would be if the
Comptroller audited 16,000 dealers instead of 42 dealers, but conjectures
it would reveal tax deficiencies in the millions. The department finds this
potential for lost revenue more than justifies taking measures to ensure taxes
are paid and to facilitate motor vehicle sales tax audits.
Comment: Seven law enforcement officers, a former investigator, three franchised
dealers, one independent dealer and a representative of the Texas Independent
Automobile Dealers Association (TIADA) commented that "buy here-pay here"
or "tote-the-note" dealerships are the source of most dealer problems with
temporary tags. These are dealers who provide vehicle financing themselves
instead of using a finance company.
Four officers, a former investigator and two franchised dealers commented
that these dealers often issue a series of buyer's tags instead of putting
a lien on the vehicle and applying for title in the customer's name. The dealer
does not apply for title or pay sales tax until the customer has paid for
the vehicle in full. It is much easier to repossess a vehicle for nonpayment
if the title has not been transferred and the vehicle still bears temporary
tags. If the consumer misses a payment, even by two days, the vehicle may
be repossessed. A DPS auto theft investigator related that one dealer gave
a consumer 30 tags rather than transfer title, and the dealer then went out
of business. Another auto theft task force officer commented that he receives
numerous complaints from consumers where the dealer issues multiple buyer's
tags instead of applying for title. Two consumers testified that dealers issued
them multiple temporary tags to delay discovery that title would not be transferred.
One stated that he has been purchasing 30-day permits each month so he can
drive the vehicle. It is costing him $300 a year. Both dealers disappeared
without transferring title. Another consumer testified that her vehicle had
been repossessed, even though her payments are current.
A former investigator, now with the North Texas Tollway Authority, stated
that consumers cannot register their vehicles, or sell them, if title has
not been transferred.
An independent dealer representing TIADA commented that reputable dealers
do not issue a series of temporary tags rather than titling and registering
a vehicle. Few dealers do that now that sales tax can be paid as payments
are made. The ones who do should be severely dealt with. A franchised dealer
quoted a police officer, who stated that fly-by-night dealers should be held
accountable for abusing current rules.
Response: The department agrees that the majority of the dealerships probably
do not participate in fraudulent activities. However, even though a small
percentage of licensed dealers conceal harm to consumers by issuing multiple
tags instead of transferring title until the vehicle is paid for, or never
transferring title, the damage is significant. Temporary tag complaints are
directly related to the violation of not applying for title in a timely manner.
Buyers must drive vehicles without valid registration. These complaints have
increased 150% from FY 2004 to FY 2005, and 273% from FY 2003 to FY 2005.
One consumer received 16 temporary buyer's tags since July 2005. In the same
time period 158 complainants never got their titles at all. Many of the dealers
subsequently went out of business. The buyers had paid for tax, title, and
license, but were forced to do so again to secure bonded titles for their
vehicles. The activity often harms the most vulnerable Texas citizens, who
may be unsophisticated or do not have the resources to pursue legal action.
Comment: Two franchised dealers, one independent dealer, four law enforcement
officers, and a former investigator commented that franchised dealers and
large independent dealers are not the problem. One dealer commented that there
is a difference between franchised dealers and independent dealers. Franchised
dealers have a large overhead, significant investment, and oversight from
manufacturers.
Response: The department concurs that the majority of franchised dealers
are not the segment of the industry that contributes to abuse of temporary
tags.
Comment: One dealer commented that not all dealers are criminals. There
are thousands of dealers who are compliant. Another stated that the problem
is not with a small group of good dealers, but with the large number of small
dealers who abuse the privilege of having temporary tags.
A law enforcement officer observed that laws may put a burden on legitimate
dealers. Dealers should consider the number of citizens who are defrauded
because some dealers issue multiple tags instead of transferring title. An
independent dealer commented that dealers must be willing to endure more controls
to improve the industry.
Response: The department concurs that a large number of dealers are compliant
and do not contribute to the problem of temporary tag abuse. However, this
does not negate the fact that temporary tags are misused by dealers and others
and that controls are necessary.
Comment: Three dealers commented that current laws are not being enforced
and favored increased enforcement instead of a rule revision. Two law enforcement
officers stated that officers often do not understand the regulations and
will not act. One dealer commented that enforcement officers should seek information
if they do not understand the existing rules. One officer and two dealers
commented they understood that TxDOT's Motor Vehicle Division does not have
enough personnel to monitor the situation. The officer stated he is working
to train other officers in the law relating to temporary tags. A dealer commented
that Motor Vehicle Division personnel cannot address the current backlog of
complaints and would not be able to monitor the new rules.
Response: The department concurs that temporary tag enforcement is a complicated
matter and that it will take the cooperation of all interested parties to
improve the system.
Comment: Ten franchised dealers, five independent dealers, a printer, and
TADA tendered comments that the proposal would not improve the current system.
Four dealers quoted law enforcement officers they had interviewed, stating
that officers do not believe the proposal would help law enforcement. Seven
dealers and TADA stated that the proposed changes would not assist law enforcement.
Seven dealers and a printer commented that the proposal would not stop
counterfeiting of temporary tags. Two pointed out that any format, including
currency and checks, can be counterfeited, and the proposal would not stop
the practice. One dealer stated that the new material would not prevent counterfeiting.
Another noted that the proposal will not stop production of false tags in
Mexico.
Two dealers commented that individuals and criminals will still misuse
tags, regardless of any changes. One stated that compliant dealers will continue
to abide by the law, and criminals will continue to abuse the system. Another
dealer pointed out that the proposal will not account for or track casual
sales or correct the problem with salvage titles and curbstoning salvage cars.
Response: The department does not concur. The proposal will not eliminate
all types of abuse or criminal activities, and the department acknowledges
that any document can be counterfeited. However, the phrase "UNTITLED VEHICLE"
should make the tags somewhat less attractive and therefore less likely to
be counterfeited. The addition of control numbers and the log requirement
will assist law enforcement.
Comment: Five law enforcement officers commented that they would welcome
any improvement in the current system. Eight officers commented that control
numbers and logs would provide a means to investigate criminal activity.
Response: The department concurs.
Comment: Sixteen franchised dealers, nine independent dealers, TADA, TIADA,
and a printer opposed the proposal. TADA requested that the rule remain in
place as adopted in 1997. One dealer stated that the dramatic cost increase
and burdensome record requirements place an unreasonable financial onus on
Texas dealers that would outweigh any positive impact, if any, of the proposed
changes in reducing tag fraud and misuse. Twenty-three other dealers tendered
similar comments, citing figures from $2,000 a year for a smaller dealership,
to half a million dollars a year for a large, multi-location dealer. Three
dealers stated they would like to help enforcement and address the problem
in some fashion, but did not believe the proposal is the solution.
Response: Section 8.138 and §8.146 have been amended to alleviate
concerns about expense and record keeping. The sections are revised to clarify
that tags may be issued and issuance recorded in any commercially reasonable
manner so long as tag issuance may be traced.
Comment: Three franchised dealers, a printer and one law enforcement officer
commented that the current system works. Two stated that the system works
because the buyer's tag shows an expiration date. A dealer acknowledged that
there are some minor problems with the system. People do counterfeit tags,
but overall the system works pretty good. There will be problems with any
system that is devised. Another dealer stated that the current system is low
cost, effective, easy for dealerships to control, and it works.
Response: The department does not concur. Testimony indicated that most
tag misuse does not stem from dealers who keep good records and secure their
temporary tags. The regulations are adopted to address abuse by others. In
addition, the department is amending §8.138 and appendices B-1 through
B-4 to reinstate the expiration date requirement.
Comment: Six law enforcement officers, the McAllen/Hidalgo bridge director
and a dealer commented that the present system does not work. One officer
stated that the system is antiquated. The dealer commented that the current
system is an honor system, and does not work.
Response: The department concurs and believes the new log requirement and
the control number will improve the system.
Comment: Ten law enforcement officers, five franchised dealers, two independent
dealers, and TADA commented in favor of an electronic tag system, commonly
called an e-tag. The concept is similar to that used in Arizona, where information
regarding a vehicle sale is entered into a database. A temporary tag is printed
with a unique identifying number, the make, model, and VIN of the vehicle,
and the dealer's name. The information becomes part of the enforcement database.
It is immediately available so officers can obtain meaningful information
about a vehicle and the owner before approaching it on a traffic stop. The
data is used to create a permanent record when the dealer applies for title.
A DPS theft investigator commented that an electronic tag system would
prevent citizens from receiving tickets for vehicles they no longer own, and
would allow officers to track stolen vehicles more quickly. Another DPS officer
acknowledged that an e-tag could be counterfeited, but it would be more difficult.
E-tags would be more legible than hand-written temporary tags and give enforcement
a valuable tool. DPS officers are in favor of the e-tag. A police officer
commented that the information could be released to law enforcement without
breaking privacy laws. A deputy sheriff stated that an e-tag would allow felony
prosecution for misuse or counterfeiting because it would be a document issued
by the government.
A representative of the North Texas Tollway Authority and the director
of the McAllen/Hidalgo International Bridge explained that both entities have
cameras that take photographs of license plates as vehicles pass through,
but temporary tags bear no information that allows them to be traced. Both
expressed interest in any system that would allow vehicles and their owners
to be identified. The tollway authority loses over a million dollars per year
on uncollected tolls because it cannot identify the owner of a vehicle that
bears a temporary tag. The border bridge cannot detect stolen vehicles or
assist enforcement if the vehicles carry a temporary tag. All ports of entry
have the same problem.
Response: The department concurs and is willing to implement an electronic
tag system. However, the current statute does not authorize a temporary tag
database. Pursuant to legislation passed during the 79th Legislature, Regular
Session, 2005, the department is studying the use of an electronic tag system.
The results of this study will be provided to the legislature prior to the
next legislative session.
Comment: Three franchised dealers, two independent dealers, TADA, and two
law enforcement officers commented that the state should work with dealers
and enforcement to find a workable, reasoned solution for everyone. Two franchised
dealers, TADA, and one officer suggested leaving the current design in place
until electronic tags are implemented.
Response: The department has been soliciting input on temporary tag problems
since 1996 and continues to do so through the rulemaking process. Implementation
of an electronic tag system requires legislative authorization. There can
never be a guarantee as to what legislation may be enacted during any given
legislative session. In addition, it may take some time to implement an electronic
tag system once approved by the legislature. It would be irresponsible to
delay attempts to correct existing problems because of the expectation of
another system in an uncertain future.
Comment: Ten franchised dealers, one independent dealer, a printer, and
TADA commented on the requirement that tags be made of 24 Point Poly Coated
C2S board. All commented that the cost of the material would increase the
cost of temporary tags by 200 to 300 percent. A printer stated that the material
is difficult to locate and would have to be manufactured by special order.
It would take two months for manufacture and delivery, and the manufacturer
would require a 10,000 pound minimum order. This will slow production of temporary
tags and increase costs to the printer, which would be passed on to dealers.
Dealers stated that the expense is unjustified and an unreasonable burden.
Others commented that the material is too durable for its intended use,
stating that poly coated paper will not deteriorate, and law enforcement will
not be able to determine if a tag is old. The printer noted that information
on the material can be altered by wiping off the writing with alcohol. A dealer
pointed out that ordinary writing instruments will not work on the material,
and suggested that the department test its use before implementing the requirement.
Response: Based upon historical and present-day abuse of temporary tags,
the department does not automatically reject a proposal for improvement because
it involves a cost increase. However, a full examination of this particular
proposal leads the department to concur and the department amends §8.138
to remove the requirement that temporary tags be printed on 24 Point Poly
Coated C2S Board paper. The former requirement for 6-ply cardboard is reinstated.
Comment: Four franchised dealers, TADA, and a printer commented regarding
the cost of imprinting a control number on temporary tags. All commenters
agreed that the requirement would increase the cost of printing tags. Estimates
of the increase ranged from 50 to 75 percent. One dealer stated that it would
double the cost. The printer stated that some dealers already use a sequential
control number. Addition of the sequential number costs a little bit less
than double what it costs to print tags without a control number. He then
said that the cost would increase by approximately 60 percent.
Response: The department acknowledges that the requirement for a control
number will increase the cost of printing temporary tags, however, the department
feels the benefit outweighs the additional cost.
Comment: A printer commented that the sequential number requirement would
slow production. He stated that it is important to offer same day service,
and that would not be possible if control numbers were required. He commented
that only about 10 percent of printers have the special equipment to print
sequential numbers, unless they are forms printers. He acknowledged that there
are enough printers capable of sequential numbering to maintain a competitive
market.
Response: The department acknowledges that the requirement for a control
number may slow tag production, but believes the control number will improve
the current system by providing law enforcement the ability to track a particular
tag.
Comment: An independent dealer commented that putting control numbers
on tags would make small dealers that abuse tags accountable.
Response: The department concurs.
Comment: Four franchised dealers commented that the log requirement would
not be helpful to police for traffic stops, especially those stops made after
business hours, because dealers will not violate privacy laws by providing
information via telephone and are not even available to respond after business
hours. Two law enforcement officers agreed a log would not be helpful during
traffic stops or after business hours. A dealer stated that officers can now
call a dealership with a VIN, and the dealer can verify whether the vehicle
was in inventory or sold, even if the dealer will not release information
about the buyer.
Five officers stated that the requirement to record control numbers would
give law enforcement a valuable tool for investigating crimes and tag misuse
and aid in identifying whether a dealer issued the tag. One officer stated
that the proposal will still cost the state money, because day shift officers
will have to investigate traffic stops made by the night shift, taking time
from their regular work.
Response: The department acknowledges that the log requirement will not
be helpful to police during traffic stops and after business hours. However,
the department considers any new investigative tool to be an improvement.
Comment: One independent dealer suggested that the department enact a rule
requiring consumers who drive vehicles bearing red buyer's tags to carry their
sales contract and proof of insurance. Law enforcement could ask to see those
documents in a traffic stop and be able to verify legitimacy immediately.
Response: The department does not have the authority to adopt rules requiring
the purchaser to carry additional documents when operating the vehicle. In
addition, the statute currently requires citizens to carry proof of insurance,
and such a requirement has not eliminated the abuse of the temporary tag system.
Comment: Representatives of TADA and TIADA, as well as ten franchised dealers
and six independent dealers, commented that the language in the proposal leads
dealers to believe that a new black dealer tag must be issued each time a
vehicle leaves the dealer's premises. The one-time use of dealer black tags,
for each time a vehicle is driven from the dealership for test drives, make-ready,
or repairs, would be expensive in paper and manpower costs and would be burdensome.
One dealer proposed that the log for black dealer tags list either the VIN
of the vehicle to which it is assigned, or the name of the employee to whom
the tag is assigned. Dealers should not have to tie a black tag to a particular
vehicle; they could assign a tag to an employee. Tags could be activated before
being put into use.
Response: The department concurs that the process described by dealers
would be burdensome. This was not the intent of the proposal. The language
in §8.138 and the appendices are amended to clarify that dealers may
issue black dealer tags in any commercially reasonable manner, be that one
tag to each vehicle, one tag to each driver, or some other assignment system,
so long as assignments can be traced.
Comment: Fourteen franchised dealers, eight independent dealers, TADA,
and TIADA commented at length that the proposed log requirements would involve
dramatic cost increases, significant labor costs, and would be extremely burdensome.
One dealer commented that the additional record keeping would slow the sales
process, and that customers would not want to wait while dealer personnel
logged tags. Three dealers expressed concern about how to log tag assignments
when vehicles are purchased at auction and tags are assigned away from dealership
premises. Fourteen dealers, TADA, and TIADA stated that dealers would have
to hire additional personnel to log and distribute tags.
Three dealers stated that if the one-time use requirement were removed,
it would alleviate some of their concerns. The log would still be burdensome,
but not as much of a problem. Another dealer commented that the log would
still be onerous and that the rules should not be changed.
Response: The department does not concur. The revisions that clarify that
black tags may be issued in any commercially reasonable manner should relieve
the record keeping burden. Dealers may issue tags in any reasonable manner
that meets their needs, so long as the issuance is recorded.
Comment: Two dealers supported the log requirements for buyer's tags, because
the tags go with the vehicle when it is sold, and only one entry would be
necessary. One dealer stated he did not object to the requirement. Another
commented that dealership procedures for buyer's tags would not be affected
as much by the proposed changes. One dealer stated that consumers should not
have to have multiple buyer's tags to account for everyone who drives the
vehicle.
Response: The department agrees that the requirement to log issuance of
buyer's tags will not be problematic. The proposal does not require that multiple
red tags be issued to a consumer for each family member.
Comment: One dealer and two law enforcement officers commented that dealers
already keep records and use control numbers for a variety of reasons. In
spite of the burden on dealers, it is necessary to have a log or tracking
system to give law enforcement the evidence they need to successfully prosecute
a case.
Response: The department concurs.
Comment: Fourteen franchised dealers and four independent dealers described
their current systems for tracking inventory. All dealers who testified stated
that they keep records electronically in computers, although one dealer suggested
that smaller dealers in West Texas might maintain information manually in
a ledger. Vehicles are assigned stock numbers when they arrive at the dealerships.
Dealers are able to track inventory by stock number and VIN. Information regarding
make, model, mileage, and vehicle color may also be maintained. Once a vehicle
is sold, information about the buyer is added to the record. Vehicle sales
are tracked by customer name and VIN. Two dealers stated that they also assign
a customer number or deal number after a vehicle is sold.
Several franchised dealers explained their existing computer systems could
not handle the log requirements. One commented that most dealers have dealer-specific
computer management systems, and that there are only about four companies
that provide the computer product. Another stated that it purchases its tags
through Reynolds & Reynolds, a large company that also provides programs
to help the dealership track its inventory. One dealer group commented that
it would be necessary to invest in software upgrades to comply with the log
requirement. Another franchised dealer stated that the proposal would require
him to keep a separate log for control numbers. Four franchised dealers, an
independent dealer, and TADA commented that the proposal would not help dealers.
Response: The department understands that dealers do not currently track
tag issuance and may not have a readily available computerized system to do
so. Nevertheless, the benefits to law enforcement and the public outweigh
the possible inconvenience to dealers. In addition, the department agrees
that the initial proposal may seem cumbersome and has adopted the rule with
changes to clarify that control numbers may be any unique combination of letters
and numbers, and may be assigned in any commercially reasonable manner, so
long as tag assignments may be traced. For example, if a dealer's computer
system pre-assigns stock numbers, the dealer may have the stock number series
imprinted on its tags so that the stock number may serve both purposes.
Comment: Eight franchised dealers, one independent dealer, two law enforcement
officers, and TADA commented regarding whether information from tag logs could
be released. The dealers stated that it would not be helpful to keep a log
of tag issuance because the Gramm-Leach Bliley Act requires dealers to keep
information private at the consumer's request, except in connection with an
authorized investigation, subpoena, or summons. In addition, the Federal Trade
Commission's "Safeguard's Rule" requires dealer to have an information security
program in place. The independent dealer commented that the federal privacy
laws should be changed so dealers can divulge personal information about customers
to law enforcement officers. Two dealers and two law enforcement officers
noted that it does not violate a buyer's privacy to simply confirm whether
a temporary tag is legitimately on a specific vehicle. One officer stated
that law enforcement is able to access private information in state registration
records, even when a citizen has requested that personal information not be
released. It would not violate privacy laws if information could be stored
in government databases and made available electronically to law enforcement.
Response: The department agrees that dealers should not violate the law
by releasing personal information about its customers without appropriate
authorization. Nevertheless, law enforcement needs a means to investigate
auto theft, drug trafficking, terroristic activities, and other serious crimes.
That tool does not now exist. A log showing tag assignments by control number
will allow dealers to confirm or deny whether a particular tag has been issued
by the dealer. If more information is required, law enforcement can obtain
the necessary authorization to view the dealer's records.
Comment: Seven franchised dealers, an enforcement officer, a former investigator,
three independent dealers, two consumers, a printer, and TADA commented regarding
the proposal to remove the expiration date from buyer's tags.
Two consumers testified that dealers issued multiple temporary tags, in
violation of the law, when their original tags expired. Three enforcement
officers noted that it is easy and not uncommon for dealers, consumers, and
criminals to alter expiration dates. The current requirement to cover the
date with tape does not hinder alteration or stop counterfeiting. One officer
stated that criminals are aware that the date on a buyer's tag must be current,
and will take care to ensure that the tags are completed correctly. Two others
commented that persons who use tags to avoid detection would not pay a traffic
ticket for having an expired tag. Another officer noted that some officers
may issue a citation for having an expired tag, but may not do a thorough
investigation to determine if the tag is being used to avoid detection of
criminal activity.
An officer and an independent dealer commented that black dealer tags and
salvage tags currently have no expiration date and are used by criminals to
avoid detection. Two franchised dealers stated that the proposal to remove
the expiration date and use the words "Unregistered Vehicle" are an invitation
for theft.
In spite of testimony indicating that the expiration date is easily altered
and may not be reliable, 11 dealers, five law enforcement officers, a representative
of the North Texas Tollway Authority, and a printer commented that an expiration
date, visible from a distance, gives law enforcement probable cause to stop
a vehicle and is a valuable enforcement tool. The tollway authority representative
stated that the expiration date should be large enough for cameras to take
a picture.
Response: The department will maintain the expiration date requirement
for buyer's tags. Section 8.138 and appendices B-1 through B-4 are amended
to retain the expiration date on buyer's tags.
Comment: Six franchised dealers, two independent dealers, TADA, a printer,
and two law enforcement officers commented on the proposal to make the words
"UNREGISTERED VEHICLE" the predominant feature on the temporary tags. Three
dealers and a printer commented that it is redundant to place the words "UNREGISTERED
VEHICLE" on the temporary tag, because dealers and law enforcement already
know that vehicles bearing temporary tags are unregistered. Two franchised
dealers and TADA commented that use of the phrase is an invitation to theft
because thieves will know that the vehicle cannot be traced. One dealer commented
that low-income customers may have had legal problems and would not want the
attention that the phrase would draw from law enforcement. Another dealer
stated that the format change may make it undesirable to have an unregistered
vehicle. Two dealers commented that the current design is sufficient to put
officers on notice that they should be careful approaching a vehicle, and
it contains enough information for law enforcement. Two officers supported
the proposal. One stated the design puts consumers on notice that they should
receive title and license plates within 21 days. Another commented that any
control by the state is better than the current system.
Response: The department acknowledges that dealers and enforcement know
that vehicles bearing temporary tags are not titled. However, consumers often
do not. The proposal will put consumers on notice that title and registration
are pending. In addition, the design will serve as a reminder to law enforcement
that information about the vehicle cannot be accessed through enforcement
databases and extra care should be taken. Section 8.138 is amended to change
the phrase to "UNTITLED VEHICLE" in a smaller font to allow room for the expiration
date.
The department is also amending §§8.141, 8.147, 8.175, 8.208,
8.245, 8.247, 8.248, and 8.254 to make minor grammatical and cite corrections.
Subchapter A. GENERAL PROVISIONS
43 TAC §§8.1 - 8.6
STATUTORY AUTHORITY
The new sections are adopted under Transportation Code, §201.101,
which provides the Texas Transportation Commission with the authority to establish
rules for the conduct of the work of the department, and more specifically,
Occupations Code, §§2301.005, 2301.155, 2301.602, and Transportation
Code, §503.002, which authorize the commission to adopt rules as necessary
or convenient to administer Occupations Code, Chapter 2301 and Transportation
Code, Chapter 503.
CROSS REFERENCE TO STATUTE
Occupations Code, Chapter 2301, and §2301.476; Transportation Code, §§501.0234,
503.039, 503.061-503.071.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of
the Secretary of State on January 27, 2006.
TRD-200600443
Richard D. Monroe
General Counsel
Texas Department of Transportation
Effective date: February 16, 2006
Proposal publication date: October 14, 2005
For further information, please call: (512) 463-8630
43 TAC §§8.21 - 8.58
STATUTORY AUTHORITY
The new sections are adopted under Transportation Code, §201.101,
which provides the Texas Transportation Commission with the authority to establish
rules for the conduct of the work of the department, and more specifically,
Occupations Code, §§2301.005, 2301.155, 2301.602, and Transportation
Code, §503.002, which authorize the commission to adopt rules as necessary
or convenient to administer Occupations Code, Chapter 2301 and Transportation
Code, Chapter 503.
CROSS REFERENCE TO STATUTE
Occupations Code, Chapter 2301, and §2301.476; Transportation Code, §§501.0234,
503.039, 503.061-503.071.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed
with the Office of the Secretary of State on January 27, 2006.
TRD-200600444
Richard D. Monroe
General Counsel
Texas Department of Transportation
Effective date: February 16, 2006
Proposal publication date: October 14, 2005
For further information, please call: (512) 463-8630
43 TAC §§8.81 - 8.86
STATUTORY AUTHORITY
The new sections are adopted under Transportation Code, §201.101,
which provides the Texas Transportation Commission with the authority to establish
rules for the conduct of the work of the department, and more specifically,
Occupations Code, §§2301.005, 2301.155, 2301.602, and Transportation
Code, §503.002, which authorize the commission to adopt rules as necessary
or convenient to administer Occupations Code, Chapter 2301 and Transportation
Code, Chapter 503.
CROSS REFERENCE TO STATUTE
Occupations Code, Chapter 2301, and §2301.476; Transportation Code, §§501.0234,
503.039, 503.061-503.071.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed
with the Office of the Secretary of State on January 27, 2006.
TRD-200600445
Richard D. Monroe
General Counsel
Texas Department of Transportation
Effective date: February 16, 2006
Proposal publication date: October 14, 2005
For further information, please call: (512) 463-8630
43 TAC §§8.101 - 8.114
STATUTORY AUTHORITY
The new sections are adopted under Transportation Code, §201.101,
which provides the Texas Transportation Commission with the authority to establish
rules for the conduct of the work of the department, and more specifically,
Occupations Code, §§2301.005, 2301.155, 2301.602, and Transportation
Code, §503.002, which authorize the commission to adopt rules as necessary
or convenient to administer Occupations Code, Chapter 2301 and Transportation
Code, Chapter 503.
CROSS REFERENCE TO STATUTE
Occupations Code, Chapter 2301, and §2301.476; Transportation Code, §§501.0234,
503.039, 503.061-503.071.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed
with the Office of the Secretary of State on January 27, 2006.
TRD-200600446
Richard D. Monroe
General Counsel
Texas Department of Transportation
Effective date: February 16, 2006
Proposal publication date: October 14, 2005
For further information, please call: (512) 463-8630
43 TAC §§8.131 - 8.148
STATUTORY AUTHORITY
The new sections are adopted under Transportation Code, §201.101,
which provides the Texas Transportation Commission with the authority to establish
rules for the conduct of the work of the department, and more specifically,
Occupations Code, §§2301.005, 2301.155, 2301.602, and Transportation
Code, §503.002, which authorize the commission to adopt rules as necessary
or convenient to administer Occupations Code, Chapter 2301 and Transportation
Code, Chapter 503.
CROSS REFERENCE TO STATUTE
Occupations Code, Chapter 2301, and §2301.476; Transportation Code, §§501.0234,
503.039, 503.061-503.071.
§8.138.Temporary Cardboard Tags.
(a)
Motor vehicle, travel trailer, trailer/semitrailer, and
converter tags shall be printed on not less than 6-ply cardboard with bolt
holes to be horizontally punched on 7-inch centers and vertically punched
on 4 1/2-inch centers and the letters in the words "UNTITLED VEHICLE" shall
not be less than 3/4 inch high. Motorcycle tags shall be printed on not less
than 6-ply cardboard with bolt holes to be horizontally punched on 5 3/4-inch
centers and vertically punched on 2 3/4-inch centers and the letters in the
words "UNTITLED VEHICLE" shall not be less than 1/2 inch high. All printed
matter on a temporary cardboard tag must be visible and may not be covered
or obstructed by a plate holder. Homemade cardboard tags or cardboard tags
which have buyer's tag information printed on one side and dealer's tag information
printed on the other side are not acceptable.
(b)
The following appendices indicate the design and the instructions
for printing and use of each of the respective temporary tags:
(1)
Appendix A-1 - Dealer (design); Appendix A-2 - Dealer (instructions);
Figure 1: 43 TAC §8.138(b)(1) (.pdf)
Figure 2: 43 TAC §8.138(b)(1) (.pdf)
(2) Appendix B-1 - Buyer - Initial (design); Appendix B-2 -
Buyer - Initial (instructions);
Figure 1: 43 TAC §8.138(b)(2) (.pdf)
Figure 2: 43 TAC §8.138(b)(2) (.pdf)
(3)
Appendix B-3 - Buyer - Supplemental (design); Appendix
B-4 - Buyer -Supplemental (instructions);
Figure 1: 43 TAC §8.138(b)(3) (.pdf)
Figure 2: 43 TAC §8.138(b)(3) (.pdf)
(4)
Appendix C-1 - Converter (design); Appendix C-2 - Converter
(instructions).
Figure 1: 43 TAC §8.138(b)(4) (.pdf)
Figure 2: 43 TAC §8.138(b)(4) (.pdf)
(c)
A dealer shall maintain a record in any commercially reasonable
manner that tracks the use and/or location of each tag. The record shall contain
those items for each appropriate tag as set out in Appendices A-1, B-1, and
B-3 of subsection (b) of this section. The log shall become a part of the
required records required to be maintained by the dealer and available for
inspection.
(d)
The dealer's record as referenced in subsection (c) of
this section, shall be available at the dealer's location during normal working
hours for review by a representative of the department. Temporary tags which
cannot be accounted for shall no longer be valid for use and shall be voided
in the dealer's log.
(e)
Dealers must be in compliance with the provisions of this
section by May 1, 2006. Prior to May 1, 2006, dealers may continue to use
the temporary tag designs of 16 TAC §111.8. If the dealer implements
the new temporary tag design prior to May 1, 2006, on the date that the dealer
implements the new temporary tag design the dealer must meet all other requirements
of this section.
§8.141.Sanctions.
(a)
Revocation/Denial. The director may deny, revoke or suspend
a dealer's license (general distinguishing number) or assess civil penalties
if that dealer:
(1)
fails to maintain a good and sufficient bond in the amount
of $25,000 or to be currently licensed as a franchised dealer by the division;
(2)
fails to maintain an established and permanent place of
business conforming to the regulations pertaining to office, sign, and display
space requirements;
(3)
refuses to permit or fails to comply with a request by
a representative of the division to examine the sales records required to
be kept under §8.144 of this chapter (relating to Record of Sales and
Inventory) and ownership papers for vehicles owned by that dealer or under
that dealer's control, and evidence of ownership or lease rights on the property
upon which the dealer's business is located:
(A)
during posted working hours, as required in §8.140(1)(A)
of this chapter, at the dealer's licensed location, or
(B)
through a certified letter request signed by the director
or the director's designee;
(4)
holds a wholesale dealer license and, without notifying
the division and meeting the vehicle display space requirements of §8.140
of this chapter (relating to Established and Permanent Place of Business),
is found to be selling or offering to sell a vehicle to someone other than
a licensed dealer, unless authorized by statute;
(5)
holds a travel trailer dealer license or a trailer/semitrailer
dealer license and is found to be selling a motor vehicle or a motorcycle;
(6)
fails to notify the division of a change of physical or
mailing address and/or telephone number within 10 days after such change;
(7)
fails to notify the division of a dealer's name change
or ownership within 10 days after such change;
(8)
except as provided by law, issues more than one buyer's
temporary cardboard tag for the purpose of extending the purchaser's operating
privileges for more than 21 days;
(9)
fails to remove out-of-state license plates from a vehicle
which is displayed for sale;
(10)
misuses a metal dealer license plate or a temporary cardboard
tag;
(11)
fails to display dealer license plates or cardboard tags
in a manner conforming to the regulations pertaining to the display of such
plates and cardboard tags on unregistered vehicles;
(12)
fails to satisfy the notification requirements of §8.144
of this chapter (relating to Record of Sales and Inventory);
(13)
holds open titles or fails to take assignment of all certificates
of title, manufacturer's certificates, or other basic evidence of ownership
for vehicles acquired by the dealer or fails to assign the certificate of
title, manufacturer's certificate, or other basic evidence of ownership for
vehicles sold. (All certificates of title, manufacturer's certificates, or
other basic evidence of ownership for vehicles owned by a dealer must be properly
executed showing transfer of ownership into the name of the dealer.);
(14)
fails to remain regularly and actively engaged in the
business of buying, selling, or exchanging vehicles of the type for which
the general distinguishing number is issued;
(15)
violates any of the provisions the codes, or any rule
or regulation of the department, including advertising rules set out in Subchapter
H of this chapter (relating to Advertising);
(16)
has not assigned at least five vehicles in the prior 12
months, provided the dealer has been licensed more than 12 months;
(17)
files a false or forged title or tax document, including
sales tax statement or application for a certified copy of a title;
(18)
uses or allows use of that dealer's license or location
for the purpose of avoiding the provisions of the dealer law or other laws;
(19)
makes a material misrepresentation in any application
or other information filed with the division;
(20)
fails to remit payment for civil penalties assessed by
the director;
(21)
sells new motor vehicles without a franchised dealer's
license issued by the division;
(22)
utilizes a temporary cardboard tag that fails to meet
specifications as cited in §8.138 of this chapter (relating to Temporary
Cardboard Tags); or
(23)
violates any state or federal law or regulation relating
to the sale of a motor vehicle.
(b)
Civil penalties. The director may assess a civil penalty
of not less than $50 nor more than $1,000 against a person who violates any
provision of subsection (a) of this section, and in determining the amount
of any such penalty may consider the relevant circumstances, including but
not limited to the factors enumerated in Occupations Code, §2301.801(b).
(c)
Pre-sanction citation. In lieu of imposing sanctions under
subsections (a) or (b) of this section, the director may issue a pre-sanction
citation to a person notifying that person of the nature of the violation,
and specifying the date by which corrective action is to be completed and
full compliance is to be met; provided, however, that the director may not
utilize this procedure in more than three subsequent violations of the same
or similar nature by that person in the same calendar year.
§8.146.Metal Converter's License Plates and Temporary Cardboard Tags.
(a)
Metal converter's license plates shall be attached to the
rear license plate holder of vehicles on which such plates are to be displayed
pursuant to Transportation Code, §503.0618.
(b)
Converter's temporary cardboard tags may be displayed either
in the rear window or on the rear license plate holder of unregistered vehicles.
When displayed in the rear license plate holder, all printed matter must be
visible and may not be covered or obstructed by any plate holder. When displayed
in the rear window, the tag shall be attached in such a manner that it is
clearly visible and legible when viewed at 15 feet from the rear of the vehicle.
(c)
Converter's temporary cardboard tags may only be used on
unregistered vehicles by the converter or the converter's employees to:
(1)
demonstrate or cause to be demonstrated the vehicle to
a prospective buyer who is a franchised motor vehicle dealer or an employee
of a franchised motor vehicle dealer;
(2)
convey or cause the vehicle to be conveyed:
(A)
from one of the converter's places of business in this
state to another of the converter's places of business in this state;
(B)
from the converter's place of business to a place the vehicle
is to be assembled, repaired, reconditioned, modified, or serviced;
(C)
from the state line or a location in this state where the
vehicle is unloaded to the converter's place of business;
(D)
from the converter's place of business to a place of business
of a franchised motor vehicle dealer; or
(E)
to road test the vehicle.
(d)
Prospective buyers who are employees of a franchised dealer
may operate a vehicle displaying converter's temporary cardboard tags during
a demonstration.
(e)
A vehicle being conveyed while displaying a converter's
temporary cardboard tag is exempt from the inspection requirements of Transportation
Code, Chapter 548.
(f)
Converter's temporary cardboard tags may not be used as
authorization to operate a vehicle for the converter's or a converter's employee's
personal use.
(g)
Each unregistered vehicle being transported by a licensed
converter utilizing the full mount method, the saddle mount method, the tow
bar method, or any combination thereof, shall have a converter's temporary
cardboard tag affixed to that vehicle. If the vehicle being transported is
of a type which is prohibited from operating upon the public streets and highway
(i.e., off-highway vehicle or self-propelled machine) and, thus, cannot qualify
for registration, a cardboard tag shall be displayed thereon; and such tag
shall be marked in bold letters with the notation "For Off Highway Use Only."
(h)
Metal converter's license plates and temporary cardboard
tags may be displayed only on the type of vehicle that the converter is engaged
in the business of assembling or modifying.
(i)
When an unregistered new motor vehicle is sold to a converter,
the selling dealer shall remove a dealer's temporary cardboard tag. In such
instances, the selling dealer may attach a buyer's temporary cardboard tag
to the vehicle; or the purchasing converter may display a converter's temporary
cardboard tag or metal converter plate on the vehicle.
(j)
A converter may have printed converter's temporary cardboard
tags according to the specifications of Appendix C-1 of §8.138 of this
chapter (relating to Temporary Cardboard Tags).
(k)
A converter shall maintain a record of all converter metal
plates issued to that converter and as to each vehicle such record shall consist
of:
(1)
the assigned metal plate number;
(2)
the make;
(3)
the vehicle identification number; and
(4)
the name of the person in control.
(l)
Converter metal plates which cannot be accounted for shall
no longer be valid for use and shall be voided in the dealer's log and reported
as missing to the department.
(m)
A converter shall maintain a record in any commercially
reasonable manner that tracks the use and/or location of each tag. The record
shall contain those items as set out in Appendix C-2 of §8.138 of this
chapter. The log shall become a part of the required records required to be
maintained by the converter.
(n)
The converter's record, as referenced in subsections (l)
and (m) of this section, shall be available at the converter's location during
normal working hours for review by a representative of the department. Temporary
tags and metal plates which cannot be accounted for shall no longer be valid
for use and shall be voided.
(o)
Converters must be in compliance with the temporary tag
and log requirements of subsections (j), (l), and (m) of this section by May
1, 2006. Prior to May 1, 2006, converters may continue to use the temporary
tag design of 16 TAC §111.8. If the converter implements the new temporary
tag design prior to May 1, 2006, on the date that the converter implements
the new temporary tag design the converter must meet all other requirements
of this section.
§8.147.Proof of Valid License Required of Foreign Motor Vehicle Dealers.
(a)
All holders of general distinguishing numbers must verify
that a foreign motor vehicle dealer holds a valid license from the foreign
dealer's country of origin before permitting the foreign motor vehicle dealer
to purchase vehicles.
(b)
All auctions or dealers who sell a vehicle to a foreign
motor vehicle dealer shall stamp in black ink on the back of the title in
all unused dealer reassignment spaces the words "For Export Only" and their
general distinguishing number. The stamp shall also be placed on the front
of the title in a manner that does not obscure any names, dates, or mileage
statements. The stamp must be at least two inches wide, and all words must
be clearly legible.
(c)
Where the purchaser is a Mexican motor vehicle dealer or
the agent of a Mexican motor vehicle dealer the following documents must be
obtained prior to the sale and maintained in the sales file for each vehicle:
(1)
A copy of the Republic of Mexico license issued by the
Secretaria de Economia to the Mexican Motor Vehicle Dealer;
(2)
A copy of identification documents issued by the Republic
of Mexico indicating that the person claiming to be a Mexican dealer is, in
fact, a resident of Mexico. Such documents include but are not limited to
Mexican driver's licenses, voter registration documents, or official identification
cards, if the card contains a picture of the person and lists a physical address;
(3)
A completed Texas Motor Vehicle Sales Tax Exemption Certificate
For Vehicles Taken Out of State for each vehicle sold to a Mexican dealer,
indicating that the vehicle has been purchased for export to the Republic
of Mexico; and
(4)
A copy of the front and back of the title to the vehicle,
showing the "For Export Only" stamp and the general distinguishing number
of the auction or dealer;
(5)
In the case of agents of Mexican motor vehicle dealers,
the file must contain copies of the listed documents for the dealer and documentation
supporting the person's claim to be acting as an agent for a Mexican motor
vehicle dealer.
This agency hereby certifies that the adoption has been
reviewed by legal counsel and found to be a valid exercise of the agency's
legal authority.
Filed
with the Office of the Secretary of State on January 27, 2006.
TRD-200600447
Richard D. Monroe
General Counsel
Texas Department of Transportation
Effective date: February 16, 2006
Proposal publication date: October 14, 2005
For further information, please call: (512) 463-8630
43 TAC §§8.171 - 8.181
STATUTORY AUTHORITY
The new sections are adopted under Transportation Code, §201.101,
which provides the Texas Transportation Commission with the authority to establish
rules for the conduct of the work of the department, and more specifically,
Occupations Code, §§2301.005, 2301.155, 2301.602, and Transportation
Code, §503.002, which authorize the commission to adopt rules as necessary
or convenient to administer Occupations Code, Chapter 2301 and Transportation
Code, Chapter 503.
CROSS REFERENCE TO STATUTE
Occupations Code, Chapter 2301, and §2301.476; Transportation Code, §§501.0234,
503.039, 503.061-503.071.
§8.175.Sanctions.
(a)
Revocation/Denial. The director may revoke, deny or suspend
a lessor or lease facilitator's license, or assess civil penalties, if that
lessor or lease facilitator:
(1)
fails to maintain an established and permanent place of
business conforming to §8.177 of this chapter (relating to Lessors and
Lease Facilitator Licensing, Established and Permanent Place of Business);
(2)
refuses to permit or fails to comply with a request by
a representative of the division to examine the current and previous year's
leasing records required to be kept under §8.178 of this chapter (relating
to Records of Leasing) and ownership papers for vehicles owned, leased, or
under that lessor or lease facilitator's control, and evidence of ownership
or lease agreement for the property upon which the business is located:
(A)
during normal working hours at the lessor's or lease facilitator's
permanent place of business, or
(B)
through a certified letter request signed by the director
or the director's designee;
(3)
fails to notify the division of a change of address within
ten days after such change;
(4)
fails to notify the division of a change of lessor/lease
facilitator's name or ownership within ten days after such a change;
(5)
fails to observe the fee restrictions as described in Occupations
Code, §2301.357 and §§2301.551-2301.556;
(6)
fails to maintain leasing and/or advertisement records
as described in these rules;
(7)
fails to remain regularly and actively engaged in the business
of leasing vehicles or facilitating the leasing of vehicles for which the
license is issued;
(8)
violates any law relating to the sale, lease, distribution,
financing or insuring of motor vehicles;
(9)
uses or allows use of a lessor or lease facilitator license
for the purpose of avoiding any provisions of Occupations Code, Chapter 2301;
(10)
makes a material misrepresentation in any application
or other information filed with the division;
(11)
fails to update in writing the list of lessors, including
names and addresses, with which any lease facilitator executes leases within
ten days of any changes to this list and upon renewal of the license;
(12)
violates any state or federal law relating to the leasing
of new motor vehicles.
(b)
Referral fees prohibited. A lessor or lease facilitator
may not, directly or indirectly, accept a fee from a dealer for referring
customers who purchase or consider purchasing vehicles.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed
with the Office of the Secretary of State on January 27, 2006.
TRD-200600448
Richard D. Monroe
General Counsel
Texas Department of Transportation
Effective date: February 16, 2006
Proposal publication date: October 14, 2005
For further information, please call: (512) 463-8630
43 TAC §§8.201 - 8.210
STATUTORY AUTHORITY
The new sections are adopted under Transportation Code, §201.101,
which provides the Texas Transportation Commission with the authority to establish
rules for the conduct of the work of the department, and more specifically,
Occupations Code, §§2301.005, 2301.155, 2301.602, and Transportation
Code, §503.002, which authorize the commission to adopt rules as necessary
or convenient to administer Occupations Code, Chapter 2301 and Transportation
Code, Chapter 503.
CROSS REFERENCE TO STATUTE
Occupations Code, Chapter 2301, and §2301.476; Transportation Code, §§501.0234,
503.039, 503.061-503.071.
§8.208.Decisions.
Unless otherwise indicated, this section applies to decisions made
pursuant to Occupations Code, Chapter 2301, Subchapter M. Decisions shall
give effect to the presumptions provided in Occupations Code, §2301.605,
where applicable.
(1)
If it is found that the manufacturer, distributor, or converter
is not able to conform the vehicle to an applicable express warranty by repairing
or correcting a defect in the complainant's vehicle which creates a serious
safety hazard or substantially impairs the use or market value of the vehicle
after a reasonable number of attempts, and that the affirmative defenses provided
under Occupations Code, §2301.606, are not applicable, the director shall
order the manufacturer, distributor, or converter to replace the vehicle with
a comparable vehicle, or accept the return of the vehicle from the owner and
refund to the owner the full purchase price of the vehicle, less a reasonable
allowance for the owner's use of the vehicle.
(2)
In any decision in favor of the complainant, the director
will accommodate the complainant's request with respect to replacement or
repurchase of the vehicle, to the extent possible.
(3)
Where a refund of the purchase price of a vehicle is ordered,
the purchase price shall be the amount of the total purchase price of the
vehicle, but shall not include the amount of any interest or finance charge
or insurance premiums. The award to the vehicle owner shall include reimbursement
for the amount of the lemon law complaint filing fee paid by or on behalf
of the vehicle owner. The refund shall be made payable to the vehicle owner
and the lienholder, if any, as their interests require.
(4)
There is a rebuttable presumption that a motor vehicle
has a useful life of 120,000 miles. Except in cases where the preponderance
of the evidence shows that the vehicle has a longer or shorter expected useful
life than 120,000 miles, the reasonable allowance for the owner's use of the
vehicle shall be that amount obtained by adding subparagraphs (A) and (B)
of this paragraph.
(A)
the product obtained by multiplying the purchase price
of the vehicle, as defined in paragraph (3) of this section, by a fraction
having as its denominator 120,000 and having as its numerator the number of
miles that the vehicle traveled from the time of delivery to the owner to
the first report of the defect or condition forming the basis of the repurchase
order; and
(B)
50% of the product obtained by multiplying the purchase
price by a fraction having as its denominator 120,000 and having as its numerator
the number of miles that the vehicle traveled after the first report of the
defect or condition forming the basis of the repurchase order. The number
of miles during the period covered in this paragraph shall be determined from
the date of the first report of the defect or condition forming the basis
of the repurchase order through the date of the hearing.
(5)
There is a rebuttable presumption that the useful life
of a towable recreational vehicle is 3,650 days (10 years). Except in cases
where preponderance of the evidence shows that the vehicle has a longer or
shorter expected useful life than 3,650 days (10 years), the reasonable allowance
for the owner's use of the towable recreational vehicle shall be that amount
obtained by adding subparagraphs (A) and (B) of this paragraph.
(A)
The product obtained by multiplying the purchase price
of the towable recreational vehicle, as defined in paragraph (3) of this section,
by a fraction having as its denominator 3,650 days (10 years), except the
denominator shall be 1,825 days (5 years), if the towable recreational vehicle
is occupied on a full time basis, and having as its numerator the number of
days from the time of delivery to the owner to the first report of the defect
or condition forming the basis of the repurchase order.
(B)
50% of the product obtained by multiplying the purchase
price by a fraction having as its denominator 3,650 days (10 years), except
the denominator shall be 1,825 days (5 years), if the towable recreational
vehicle is occupied on a full time basis, and having as its numerator the
number of days of ownership after the first report of the defect or condition
forming the basis of the repurchase order. The number of days during the period
covered in this paragraph shall be determined from the date of the first report
of the defect or condition forming the basis of the repurchase order through
the date of the hearing.
(C)
Any day or part of a day that the vehicle is out of service
for repair will be deducted from the numerator in determining the reasonable
allowance for use of a towable recreational vehicle in this paragraph.
(6)
Except in cases involving unusual and extenuating circumstances,
supported by a preponderance of the evidence, where refund of the purchase
price of a leased vehicle is ordered, the purchase price shall be allocated
and paid to the lessee and the lessor, respectively as follows.
(A)
The lessee shall receive the total of:
(i)
all lease payments previously paid by him to the lessor
under the terms of the lease; and
(ii)
all sums previously paid by him to the lessor in connection
with the entering into the lease agreement, including, but not limited to,
any capitalized cost reduction, down payment, trade-in, or similar cost, plus
sales tax, license and registration fees, and other documentary fees, if applicable.
(B)
The lessor shall receive the total of:
(i)
the actual price paid by the lessor for the vehicle, including
tax, title, license, and documentary fees, if paid by lessor, and as evidenced
in a bill of sale, bank draft demand, tax collector's receipt, or similar
instrument; plus
(ii)
an additional 5.0% of such purchase price plus any amount
or fee, if any, paid by lessor to secure the lease or interest in the lease;
(iii)
provided, however, that a credit, reflecting all of the
payments made by the lessee, shall be deducted from the actual purchase price
which the manufacturer, converter, or distributor is required to pay the lessor,
as specified in causes (i) and (ii) of this subparagraph.
(C)
When the director orders a manufacturer, converter, or
distributor to refund the purchase price in a lease vehicle transaction, the
vehicle shall be returned to the manufacturer, converter, or distributor with
clear title upon payment of the sums indicated in subparagraphs (A) and (B)
of this paragraph. The lessor shall transfer title of the vehicle to the manufacturer,
converter, or distributor, as necessary in order to effectuate the lessee's
rights under this rule. In addition, the lease shall be terminated without
any penalty to the lessee.
(D)
Refunds shall be made to the lessee, lessor, and any lienholders
as their interest may appear. The refund to the lessee under subparagraph
(A) of this paragraph shall be reduced by a reasonable allowance for the lessee's
use of the vehicle. A reasonable allowance for use shall be computed according
to the formula in paragraph (4) or (5) of this section, using the amount in
subparagraph (B) (i) of this paragraph as the applicable purchase price.
(7)
In any award in favor of a complainant, the director may
require the dealer involved to reimburse the complainant, manufacturer, converter,
or distributor, for the cost of any items or options added to the vehicle
but only to the extent that one or more of such items or options contributed
to the defect that served as the basis for the order or repurchase or replacement.
In no event shall this paragraph be interpreted to mean that a manufacturer,
converter, or distributor, will be required to repurchase a vehicle due to
a defect or condition that was solely caused by a dealer add-on item or option.
(8)
If it is found by the director that a complainant's vehicle
does not qualify for replacement or repurchase, then the director shall enter
an order dismissing the complaint insofar as relief under Occupations Code, §2301.604.
However, the director may enter an order in any proceeding, where appropriate,
requiring repair work to be performed or other action taken to obtain compliance
with the manufacturer's, converter's, or distributor's, warranty obligations.
(9)
If the vehicle is substantially damaged or there is an
adverse change in its condition, beyond ordinary wear and tear, from the date
of the hearing to the date of repurchase, and the parties are unable to agree
on an amount of an allowance for such damage or condition, either party shall
have the right to request reconsideration by the director of the repurchase
price contained in the final order.
(10)
The director will issue a written order in each Occupations
Code, Chapter 2301, Subchapter M or §2301.204 case in which a hearing
is held and a copy of the order will be sent to all parties.
This agency hereby certifies that the adoption has been
reviewed by legal counsel and found to be a valid exercise of the agency's
legal authority.
Filed
with the Office of the Secretary of State on January 27, 2006.
TRD-200600449
Richard D. Monroe
General Counsel
Texas Department of Transportation
Effective date: February 16, 2006
Proposal publication date: October 14, 2005
For further information, please call: (512) 463-8630
43 TAC §§8.241 - 8.271
STATUTORY AUTHORITY
The new sections are adopted under Transportation Code, §201.101,
which provides the Texas Transportation Commission with the authority to establish
rules for the conduct of the work of the department, and more specifically,
Occupations Code, §§2301.005, 2301.155, 2301.602, and Transportation
Code, §503.002, which authorize the commission to adopt rules as necessary
or convenient to administer Occupations Code, Chapter 2301 and Transportation
Code, Chapter 503.
CROSS REFERENCE TO STATUTE
Occupations Code, Chapter 2301, and §2301.476; Transportation Code, §§501.0234,
503.039, 503.061-503.071.
§8.245.Availability of Vehicles.
(a)
A licensee may advertise a specific vehicle or line make
of vehicles for sale if:
(1)
the specific vehicle or line is in the possession of the
licensee at the time the advertisement is placed, or the vehicle may be obtained
from the manufacturer or distributor or some other source, and this information
is clearly and conspicuously disclosed in the advertisement; and
(2)
the price advertisement sets forth the number of vehicles
available at the time the advertisement is placed or a dealer can show he
has available a reasonable expectable public demand based on prior experience.
In addition, if an advertisement pertains to only one specific vehicle, then
the advertisement must also disclose the vehicle's stock number or vehicle
identification number.
(b)
This section does not prohibit general advertising of vehicles
by a manufacturer, dealer advertising association, or distributor and the
inclusion of the names and addresses of the dealers selling such vehicles
in the particular area.
(c)
Motor vehicle dealers may advertise a specific used vehicle
or vehicles for sale if:
(1)
The specific used vehicle or vehicles is in the possession
of the dealer at the time the advertisement is placed; and
(2)
The title certificate to the used vehicle has been assigned
to the dealer.
§8.247.Untrue Claims.
The following statements are prohibited.
(1)
Statements such as "write your own deal," "name your own
price," "name your own monthly payments," or statements with similar meaning.
(2)
Statements such as "everybody financed," "no credit rejected,"
"we finance anyone," and other similar statements representing or implying
that no prospective credit purchaser will be rejected because of his inability
to qualify for credit.
(3)
Statements representing that no other dealer grants greater
allowances for trade-ins, however stated, unless the dealer can show such
is the case.
(4)
Statements representing that because of its large sales
volume a dealer is able to purchase vehicles for less than another dealer
selling the same make of vehicles, unless the dealer can show such is the
case.
§8.248.Layout.
The layout, headlines, illustrations, or type size of a printed advertisement
and the broadcast words or pictures of radio/TV advertisements shall not convey
or permit an erroneous or misleading impression as to which vehicle or vehicles
are offered for sale or lease at featured prices. No advertised offer, expression,
or display of price, terms, down payment, trade-in allowance, cash difference,
savings, or other such material terms shall be misleading and any necessary
qualifications shall be clearly, conspicuously, and accurately set forth to
prevent misunderstanding.
§8.254.Used Vehicles.
A used vehicle shall not be advertised in any manner that creates the
impression that it is new. A used vehicle shall be identified as either "used"
or "pre-owned." Terms such as "program car," "special purchase," "factory
repurchase," or other similar terms are not sufficient to designate a vehicle
as used, and these vehicles must be identified as "used" or "pre-owned."
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed
with the Office of the Secretary of State on January 27, 2006.
TRD-200600450
Richard D. Monroe
General Counsel
Texas Department of Transportation
Effective date: February 16, 2006
Proposal publication date: October 14, 2005
For further information, please call: (512) 463-8630
The Texas Department of Transportation (department) adopts amendments
to §17.2 and §17.3, concerning Motor Vehicle Certificates of Title, §§17.21
- 17.24, 17.28, 17.30, 17.33, and 17.36, concerning Motor Vehicle Registration, §17.54,
concerning Automated Equipment, §§17.61, 17.62, 17.65, and 17.68,
concerning Nonrepairable and Salvage Motor Vehicles, and §§17.72,
17.73 and 17.79, concerning Salvage Vehicle Dealers. The amendments to §17.3
and §17.68 are adopted with changes to the proposed text as published
in the November 11, 2005, issue of the
Texas Register
(30 TexReg 4920). Section 17.3 is being adopted with changes to correct
a minor reference to subsection (b)(1). The amendments to §§17.2,
17.21 - 17.24, 17.28, 17.30, 17.33, 17.36, 17.54, 17.61, 17.62, 17.65, 17.72,
17.73, and 17.79 are adopted without changes to the proposed text as published
in the November 11, 2005, issue of the
Texas Register
(30 TexReg 4920) and will not be republished. It should be noted that
the published version of §17.28(e) omitted paragraph (3), which had no
changes.
EXPLANATION OF ADOPTED AMENDMENTS
The 79th Legislature, 2005, passed various legislation relating to motor
vehicle certificates of title and registration. House Bill 749 expanded the
uses of vehicles displaying "Cotton Vehicle" license plates to allow for transportation
of chile peppers and chile pepper transporting or processing equipment. House
Bill 988 provided that licensed motor vehicle dealers are required to file
applications for certificates of title in the county selected by the purchaser.
House Bill 1244 authorized the department to issue "Classic Travel Trailer"
license plates. House Bill 1350 amended the definition of a "salvage motor
vehicle." House Bill 1646 amended the definition of "motor vehicle" and the
definition of "all-terrain vehicle." House Bill 2894 amended the provisions
relating to marketing of specialty license plates through a private vendor.
The adopted rules include clarifications of current policies. The department
has updated procedures on destruction of valid license plates, tow truck registration,
vehicle verification for vehicles entering the country and the transfer of
vehicle titles.
House Bill 2971, 78th Legislature, 2003, recodified all provisions relating
to issuance of specialty license plates. These provisions are now codified
in Transportation Code, Chapter 504. Throughout the adopted rules, citations
are corrected to reflect the appropriate Chapter 504 citation. The adopted
rules also include corrections of additional citations to correspond with
other statutory revisions, and nonsubstantive changes in language to correct
terminology and enhance readability.
Section 17.2(22), definition of "motor vehicle," is amended as a result
of the provisions of House Bill 1646 by deleting "4-wheel" in relation to
the number of wheels an all-terrain vehicle may have.
Section 17.3(a), Certificates of Title, is amended to correct statutory
citations and to correct terminology. "Motor" is added to correspond with
terminology used in Transportation Code, Chapter 501, Certificate of Title
Act.
Section 17.3(b)(1), Place of application, is amended, pursuant to House
Bill 988, to require a licensed motor vehicle dealer to file an application
for certificate of title in the county in which the purchaser resides, or
where the vehicle is sold or encumbered, as selected by the buyer.
Section 17.3(c)(3), Motor vehicles brought into the United States, is amended
by adding new subparagraph (B) and is renumbered accordingly. New subparagraph
(B) is added to clarify the existing requirement for submission of a verification
of the vehicle identification number with an application for title for a motor
vehicle brought into the United States. The verification must be on a form
provided by the department and executed by a member of the National Crime
Insurance Bureau, the Federal Bureau of Investigation, or a law enforcement
auto theft unit. The purpose of this requirement is to aid in the prevention
of trafficking stolen vehicles in Texas.
Section 17.3(f), Department notification of second hand vehicle transfers,
is amended for clarification. Paragraph (2), Records, is amended to clarify
that the department maintains a record of the information provided on the
written notice of transfer, but does not mark the automated motor vehicle
record to indicate the full name and address of the transferee.
The definition of cotton vehicle is added as §17.21(13), to clarify
that cotton vehicles may transport chili pepper modules and equipment used
in transporting or processing chili peppers, as well as seed cotton, cotton,
cotton burrs, or cotton equipment, as added by House Bill 749. Subsequent
paragraphs are renumbered accordingly.
Renumbered §17.21(35), Nonprofit organization, is amended to correct
the citation. The Business Organizations Code becomes effective January 1,
2006.
Renumbered §17.21(44), Special category license plate, §17.21(45),
Special category license plate fee, and §17.21(47), Sponsoring entity,
are amended to correct terminology. The term "special category" has been changed
to "specialty" throughout these paragraphs and §17.30 to be consistent
with terminology used in Transportation Code, Chapter 504 and §17.28
of this title.
Section 17.22(a), Registration, is amended to update the administrative
rule citation to correctly state that the provisions for nonrepairable or
salvage vehicle title issuance and registration of nonrepairable motor vehicles
is addressed in Subchapter D of this chapter.
Section 17.22(b), Initial application for vehicle registration, is amended
to correct terminology in paragraph (2)(A) by adding "nonrepairable or" in
relation to registration of a motor vehicle.
Section 17.22(d)(3) is also amended to change the term "must" to "should"
relating to the return of a license plate renewal notice. Although return
of the license plate renewal notice is preferred, a vehicle owner may renew
registration without a renewal notice.
Section 17.23(c)(3)(B) is amended to state the required format for evidence
of financial responsibility required from a motor carrier.
Section 17.24(c)(2), Application form, is amended to match statutory language,
by deleting the requirement for disclosure of an applicant's entire driver's
license or number of the applicant's personal identification card, and requiring
only the first four digits of the number.
Section 17.28(c)(2), Number of plates issued, is amended by adding new
(B)(ii) to clarify that only one classic travel trailer license plate will
be issued to a vehicle eligible to receive that license plate as a result
of enactment of House Bill 1244. Subsequent clauses are renumbered accordingly.
Section 17.28(e)(1)(B)(iii), Non-transferable between vehicles, is amended
to clarify that classic travel trailer license plates issued as a result of
House Bill 1244 are non-transferable between vehicles. A classic travel trailer
license plate is issued for use only on a specific travel trailer that has
met the criteria provided in House Bill 1244. A new application is required
for each travel trailer for which a classic travel trailer license plate is
requested to determine eligibility for the license plate. House Bill 1244
did not provide a statutory exemption allowing a classic travel trailer license
plate to be transferred between vehicles.
Section 17.28(j), Marketing of specialty license plates through a private
vendor, is amended to be consistent with the language of House Bill 2894.
In addition to the adopted changes necessary to address statutory revisions,
this section is also amended to clarify that a private vendor may agree to
market and sell existing "non-qualifying" specialty license plates only. Examples
of "qualifying" license plates that will not be marketed or sold under the
vendor contract include certain military license plates, plates with restricted
distribution (state official, county judge), and plates that are restricted
to a certain type of vehicle.
Section 17.30(b)(3), Combination license plates, is amended to clarify
current policy by adding that a vehicle registered with combination license
plates is required to display only one license plate on the front of the vehicle.
Section 17.30(b)(4) and(5) is amended to correct terminology and to update
statutory citations. The term "special category" has been changed to "specialty"
to be consistent with terminology used in Transportation Code, Chapter 504
and §17.28 of this title.
Section 17.30(b)(6), Intransit license plates, §17.30(d)(1)(A), March
expiration, and §17.30(f), Replacement of lost, stolen, or mutilated
commercial vehicle license plates, are corrected to be consistent with statutory
language. "Intransit" has been changed to "In Transit" to be consistent with
language used in Transportation Code, Chapter 503, and with the legend indicated
on the In Transit license plate.
Section 17.30(d)(1), Registration period, is amended by adding new (B)(ii)
to clarify that Rental Trailer license plates will be issued for a five-year
period with a March 31st expiration date for rental trailers that are part
of a rental fleet, as defined in Transportation Code, §501.166. The Rental
Trailer classification was previously omitted. The subsequent clause is renumbered
accordingly.
Section 17.30(d)(3), Return of License Plate Renewal Notice, is amended
to change the term "must" to "should" to be consistent with the changes to §17.22(d)(3).
Section 17.30(f), Replacement of lost, stolen, or mutilated commercial
vehicle license plates, is amended to delete an incorrect provision that replacement
Tow Truck license plates may not be issued. In 1997, the department began
issuing standard-sized tow truck license plates for registration of Texas
tow trucks in lieu of regular truck license plates and a smaller Tow Truck
tag. Prior to this date, if the smaller Tow Truck tag was lost, stolen, or
mutilated, the owner was required to pay a $15 fee to obtain a new, smaller
Tow Truck tag since the tag was not considered "registration." This section
is corrected to clarify that replacement Tow Truck license plates may now
be issued upon payment of the statutory $5.30 registration replacement fee.
Section 17.33, Registration Fee Credit: Nontransferable, is amended to
correct the name of the division that maintains registration and title records
from "Motor Vehicle Division" to "Vehicle Titles and Registration Division."
Section 17.36, Water Well Drilling Equipment, is amended to correct the
name of the licensing agency to the Texas Department of Licensing and Regulation
to be consistent with the provisions of Occupations Code, §1902.001.
Section 17.54(c), is amended to clarify that the criteria for collection
of the additional fee for the automated registration and title system is 50,000
"or more" annual registrations, as provided for in Transportation Code, §502.1705.
Section 17.54(c) is also amended by deleting the reference in paragraph
(2) to the "Allocation of Vehicle Registration Fees report for each calendar
year." Deleting this reference eliminates the restriction of using only this
one report. Other reports are available to the department that more accurately
reflect the volume of registrations to identify which counties meet the criteria
of 50,000 or more annual registrations.
Section 17.61(19), Salvage motor vehicle, is amended to be consistent with
Transportation Code, §501.091, and to clarify that a salvage motor vehicle
includes a vehicle that is missing a major component part, and that the cost
of repairs does not include materials and labor for repainting or sales tax
on the cost of the repairs, as provided for in House Bill 1350.
Section 17.62(a), Determination of condition of vehicle, is reformatted
and amended by adding new paragraph (5) to provide new exemptions from the
estimated cost of repair calculations for a damaged vehicle as provided by
House Bill 1350. The cost of repairs does not include the costs of materials
or labor for repainting the motor vehicle, or sales tax on the total cost
of repairs.
Additionally, §17.62(a), paragraphs (1), (2), and (4), are amended
by deleting the term "estimated" relating to the cost of repairs of a damaged
vehicle to be consistent with Transportation Code, §501.091. House Bill
3588, passed by the 78th Legislature, 2003, amended the definition of "salvage
motor vehicle" and "nonrepairable motor vehicle." The amended definitions
do not include the term "estimated."
Section 17.65, Dismantling, Scrapping, or Destruction of Motor Vehicles,
is amended by adding new subsection (b)(2) to clarify that unexpired license
plates and registration validation stickers removed from vehicles that are
to be dismantled, scrapped, or destroyed must be stored in a secure location.
Section 17.65 is also amended by adding new subsection (d) to clarify current
policy that provides a person may destroy unexpired license plates and registration
validation stickers once the person receives acknowledgment from the department
that the department has received the surrendered evidence of ownership for
the applicable vehicle. Subsequent subsections are renumbered accordingly.
Section 17.68(c), Fee for rebuilt salvage certificate of title, is amended
to correct the administrative rule citation. A $65 rebuilt salvage fee must
accompany an application for a Rebuilt Salvage Certificate of Title unless
the applicant provides the written statement explained in §17.68(d)(3)(B).
Section 17.72(c)(4) is amended to correct grammar.
Section 17.73(b), Initial application, is amended by adding the term "legal"
to paragraphs (1)(A), (2)(A)(x), and (3)(I). This change is made to clarify
the current requirement that an individual applicant, corporate officer or
director, or an owner or partner of a partnership, provide their legal name
on the application for a salvage vehicle dealer license. This requirement
is necessary in order to investigate and conduct criminal background checks
on applicants as provided for in §17.75(a) of this chapter.
Section 17.73(b)(1), Form of application for salvage vehicle dealer license,
is amended by adding new subparagraph (G) to clarify the current requirement
that an individual applicant for a salvage vehicle dealer license must include
the applicant's date of birth. This information is necessary to investigate
and conduct criminal background checks on applicants as provided for in §17.75(a)
of this chapter. Subsequent subparagraphs are renumbered accordingly.
Section 17.79(b), Dismantled, scrapped, or destroyed motor vehicle, is
amended to be consistent with the changes in §17.65.
COMMENTS
No comments on the proposed amendments were received. However, the word
"or" in the proposed version of §17.68(d)(2)(E) was inadvertently struck
through as if it were being deleted. It has now been corrected.
Subchapter A. MOTOR VEHICLE CERTIFICATES OF TITLE
43 TAC §17.2, §17.3
STATUTORY AUTHORITY
The amendments are adopted under Transportation Code, §201.101, which
provides the Texas Transportation Commission (commission) with the authority
to establish rules for the conduct of the work of the department, and more
specifically, Transportation Code, §501.131, which allows the department
to adopt rules to administer Transportation Code, Chapter 501, governing the
titling of motor vehicles, Transportation Code, §502.0021, which authorizes
the department to adopt rules governing the issuance of motor vehicle registration,
and Occupations Code, §2302.051, which authorizes the commission to adopt
rules governing salvage vehicle dealers.
CROSS REFERENCE TO STATUTE: Transportation Code, Chapters 501, 502, and
504, and Occupations Code, Chapter 2302.
§17.3.Motor Vehicle Certificates of Title.
(a)
Certificates of title. Unless otherwise exempted by law
or this chapter, the owner of any motor vehicle that is required to be registered
in accordance with Transportation Code, Chapter 502, shall apply for a Texas
certificate of title in accordance with Transportation Code, Chapter 501.
(1)
Motorcycles, motor-driven cycles, and mopeds.
(A)
The title requirements of a motorcycle are the same requirements
prescribed for any motor vehicle.
(B)
A motorcycle, motor-driven cycle, or moped designed for
or used exclusively on golf courses is not classified as a motor vehicle and,
therefore, title cannot be issued until the unit is registered.
(C)
A vehicle that meets the criteria for a moped and has been
certified as a moped by the Department of Public Safety will be registered
and titled as a moped. If the vehicle does not appear on the list of certified
mopeds published by that agency, the vehicle will be treated as a motorcycle
for title and registration purposes.
(D)
A motor installed on a bicycle must be certified by the
Department of Public Safety before the vehicle may be classified as a moped.
(2)
Farm vehicles.
(A)
The term motor vehicle does not apply to implements of
husbandry, which may not be titled.
(B)
Farm tractors owned by agencies exempt from registration
fees in accordance with Transportation Code, §502.202, are required to
be titled and registered with "Exempt" license plates issued in accordance
with Transportation Code, §502.201.
(C)
Farm tractors used as road tractors to mow rights of way
or used to move commodities over the highway for hire are required to be registered
and titled.
(D)
Farm semitrailers with a gross weight of more than 4,000
pounds that are registered in accordance with Transportation Code, §504.504,
may be issued Texas certificates of title.
(3)
Exemptions from title. Vehicles registered with the following
distinguishing license plates may not be titled under Transportation Code,
Chapter 501:
(A)
vehicles eligible for machinery license plates and permit
license plates in accordance with Transportation Code, §504.504; and
(B)
vehicles eligible for farm trailer license plates in accordance
with Transportation Code, §502.163, with the exception of farm semitrailers
with a gross weight of more than 4,000 pounds as referenced in subsection
(a)(2)(D) of this section.
(4)
Trailers, semitrailers, and house trailers. Owners of trailers
and semitrailers shall apply for and receive a Texas certificate of title
for any stand alone (full) trailer, including homemade full trailers, having
an empty weight in excess of 4,000 pounds or any semitrailer having a gross
weight in excess of 4,000 pounds. Farm semitrailers with a gross weight of
more than 4,000 pounds that are registered in accordance with Transportation
Code, §504.504, may be issued Texas certificates of title. House trailer-type
vehicles must meet the criteria outlined in subparagraph (C) of this paragraph
to be titled.
(A)
In the absence of a manufacturer's rated carrying capacity
for a trailer or semitrailer, the rated carrying capacity will not be less
than one-third of its empty weight.
(B)
Mobile office trailers, mobile oil field laboratories,
and mobile oil field bunkhouses are not designed as dwellings, but are classified
as commercial semitrailers and must be registered and titled as commercial
semitrailers if operated on the public streets and highways.
(C)
House trailer-type vehicles and camper trailers must meet
the following criteria in order to be titled.
(i)
A house trailer-type vehicle designed for living quarters
and that is eight body feet or more in width or forty body feet or more in
length (not including the hitch), is classified as a mobile home and is titled
under the Texas Manufactured Housing Standards Act, Occupations Code, Chapter
1201, administered by the Texas Department of Housing and Community Affairs.
(ii)
A house trailer-type vehicle that is less than eight feet
in width and less than forty feet in length is classified as a travel trailer
and shall be registered and titled.
(iii)
A camper trailer shall be titled as a house trailer and
shall be registered with travel trailer license plates.
(b)
Initial application for certificate of title.
(1)
Place of application. When motor vehicle ownership is transferred,
except as provided by Transportation Code, Chapters 501 and 502 and by §17.63(a)
of this chapter, a certificate of title application must be filed with the
county tax assessor-collector in the county in which the applicant resides
or in the county in which the motor vehicle was purchased or encumbered, as
selected by the applicant.
(2)
Information to be included on application. An applicant
for an initial certificate of title must file an application on a form prescribed
by the department. The form will at a minimum require the:
(A)
motor vehicle description including, but not limited to,
the motor vehicle's:
(i)
year;
(ii)
make;
(iii)
model;
(iv)
identification number;
(v)
body style;
(vi)
manufacturer's rated carrying capacity in tons for commercial
motor vehicles; and
(vii)
empty weight;
(B)
license plate number, if the motor vehicle is subject to
registration under Transportation Code, Chapter 502;
(C)
odometer reading and brand, or the word "exempt" if the
motor vehicle is exempt from federal and state odometer disclosure requirements;
(D)
previous owner's name and city and state of residence;
(E)
name and complete address of the applicant;
(F)
name and mailing address of any lienholder and the date
of lien, if applicable;
(G)
signature of the seller of the motor vehicle or the seller's
authorized agent and the date the certificate of title application was signed;
(H)
signature of the applicant or the applicant's authorized
agent and the date the certificate of title application was signed; and
(I)
applicant's social security number, if the application
is filed in a county in which the department's automated registration and
title system has been implemented, with the following exceptions:
(i)
an application filed in the name of an entity that does
not have a social security number, or
(ii)
an individual applicant who does not have a social security
number, in which case the applicant must execute a statement to that effect
on a form prescribed by the department.
(3)
Serial number. If no serial number is die-stamped by the
manufacturer on a motor vehicle, house trailer, trailer, semitrailer, or item
of equipment required to be titled, or if the serial number assigned and die-stamped
by the manufacturer has been lost, removed, or obliterated, the department
will on proper application, presentation of evidence of ownership, and presentation
of evidence of a law enforcement physical inspection, assign a serial number
to the motor vehicle, trailer, or equipment. The manufacturer's serial number
or the assigned serial number will be used by the department as the major
identification of the motor vehicle or trailer in the issuance of a certificate
of title.
(4)
Accompanying documentation. The certificate of title application
must be supported by, at a minimum, the following documents:
(A)
evidence of vehicle ownership, as described in subsection
(c) of this section;
(B)
an odometer disclosure statement properly executed by the
seller of the motor vehicle and acknowledged by the purchaser, if applicable;
(C)
proof of financial responsibility in the applicant's name,
as required by Transportation Code, §502.153, unless otherwise exempted
by law; and
(D)
an identification certificate if required by Transportation
Code, §548.256, and Transportation Code, §501.030, and if the vehicle
is being titled and registered, or registered only; and
(E)
a release of any liens, provided that if any liens are
not released, they will be carried forward on the new certificate of title
application with the following limitations.
(i)
A lien recorded on out-of-state evidence as described in
subsection (c) of this section cannot be carried forward to a Texas title
when there is a transfer of ownership, unless a release of lien or authorization
from the lienholder is attached.
(ii)
A lien recorded on out-of-state evidence as described
in subsection (c) of this section is not required to be released when there
is no transfer of ownership from an out-of-state title and the same lienholder
is being recorded on the Texas application as is recorded on the out-of-state
title.
(c)
Evidence of motor vehicle ownership. Evidence of motor
vehicle ownership properly assigned to the applicant must accompany the certificate
of title application. Evidence must include, but is not limited to, the following
documents.
(1)
New motor vehicles. A manufacturer's certificate of origin
assigned by the manufacturer or the manufacturer's representative or distributor
to the original purchaser is required for a new motor vehicle that is sold
or offered for sale.
(A)
The manufacturer's certificate of origin must be in the
form prescribed by the division director and must contain, at a minimum, the
following information:
(i)
motor vehicle description including, but not limited to,
the motor vehicle's year, make, model, identification number, body style and
empty weight;
(ii)
the manufacturer's rated carrying capacity in tons when
the manufacturer's certificate of origin is invoiced to a licensed Texas motor
vehicle dealer and is issued for commercial motor vehicles as that term is
defined in Transportation Code, Chapter 502; and
(iii)
a statement identifying a motor vehicle designed by the
manufacturer for off-highway use only.
(B)
When a motor vehicle manufactured in another country is
sold directly to a person other than a manufacturer's representative or distributor,
the manufacturer's certificate of origin must be assigned to the purchaser
by the seller.
(2)
Used motor vehicles. A certificate of title issued by the
department, a certificate of title issued by another state if the motor vehicle
was last registered and titled in another state, or other evidence of ownership
must be relinquished in support of the certificate of title application for
any used motor vehicle. A letter of Title and Registration verification is
required from a vehicle owner coming from a state that no longer titles vehicles
after a certain period of time.
(3)
Motor vehicles brought into the United States. An application
for certificate of title for a motor vehicle last registered or titled in
a foreign country must be supported by documents including, but not limited
to, the following:
(A)
the motor vehicle registration certificate or other verification
issued by a foreign country reflecting the name of the applicant as the motor
vehicle owner, or reflecting that legal evidence of ownership has been legally
assigned to the applicant;
(B)
verification of the vehicle identification number of the
vehicle, on a form prescribed by the department, executed by a member of:
(i)
the National Insurance Crime Bureau;
(ii)
the Federal Bureau of Investigation; or
(iii)
a law enforcement auto theft unit; and
(C)
for motor vehicles that are less than 25 years old, proof
of compliance with United States Department of Transportation (USDOT) regulations,
including, but not limited to, the following documents:
(i)
the original bond release letter with all attachments advising
that the motor vehicle meets federal motor vehicle safety requirements or
a letter issued by the USDOT, National Highway Traffic Safety Administration,
verifying the issuance of the original bond release letter;
(ii)
a legible copy of the motor vehicle importation form validated
with an original United States Customs stamp, date, and signature as filed
with the USDOT confirming the exemption from the bond release letter required
in clause (i) of this subparagraph, or a copy thereof certified by United
States Customs;
(iii)
a verification of motor vehicle inspection by United
States Customs certified on its letterhead and signed by its agent verifying
that the motor vehicle complies with USDOT regulations;
(iv)
a written confirmation that a physical inspection of the
safety certification label has been made by the department and that the motor
vehicle meets United States motor vehicle safety standards;
(v)
the original bond release letter, verification thereof,
or written confirmation from the previous state verifying that a bond release
letter issued by the USDOT was relinquished to that jurisdiction, if the non
United States standard motor vehicle was last titled or registered in another
state for one year or less; or
(vi)
verification from the vehicle manufacturer on its letterhead
stationary.
(4)
Alterations to documentation. An alteration to a registration
receipt, certificate of title, manufacturer's certificate, or other evidence
of ownership constitutes a valid reason for the rejection of any transaction
to which altered evidence is attached.
(A)
Altered lien information on any surrendered evidence of
ownership requires a release from the original lienholder or a statement from
the proper authority of the state in which the lien originated. The statement
must verify the correct lien information.
(B)
A strikeover that leaves any doubt about the legibility
of any digit in any document will not be accepted.
(C)
A corrected manufacturer's certificate of origin will be
required if the manufacturer's certificate of origin contains an:
(i)
incomplete or altered vehicle identification number;
(ii)
alteration or strikeover of the vehicle's model year;
(iii)
alteration or strikeover to the body style, or omitted
body style on the manufacturer's certificate of origin; or
(iv)
alteration or strikeover to the manufacturer's rated carrying
capacity.
(D)
A Statement of Fact may be requested to explain errors,
corrections, or conditions from which doubt does or could arise concerning
the legality of any instrument. A Statement of Fact will be required in all
cases:
(i)
in which the date of sale on an assignment has been erased
or altered in any manner; or
(ii)
of alteration or erasure on a Dealer's Reassignment of
Title.
(5)
Rights of survivorship. A signed "rights of survivorship"
agreement may be executed by a natural person acting in an individual capacity
in accordance with Transportation Code, §501.031.
(d)
Certificate of title issuance. On receiving a completed
application for certificate of title, along with the statutory fee for a title
application and any other applicable fees, the department or its designated
agent will issue a receipt and process the application for certificate of
title.
(1)
Titles. The department will issue and mail or deliver a
certificate of title to the applicant or, in the event that there is a lien
disclosed in the application, to the first lienholder.
(2)
Receipt. The receipt issued at the time of application
for title may be used only as evidence of title and may not be used to transfer
any interest or ownership in a motor vehicle or to establish a new lien.
(e)
Replacement of certificate of title. If a certificate of
title is lost or destroyed, the department will issue a certified copy of
the title to the owner, the lienholder, or a verified agent of the owner or
lienholder in accordance with Transportation Code, Chapter 501, on proper
application and payment of the appropriate fee to the department.
(1)
Certified copy.
(A)
Issuance. An application for a certified copy must be properly
executed and supported by appropriate verifiable proof for the vehicle owner,
lienholder, or agent regardless of whether the application is submitted in
person or by mail.
(i)
If the applicant requests that a certified copy be issued
before the fourth business day following application, the application must
be made in person.
(ii)
An applicant other than the vehicle owner, lienholder,
or verified agent must apply for a certified copy of a certificate of title
by mail.
(B)
Denial. If issuance of a certified copy is denied, the
applicant may resubmit the request with the required verifiable proof or may
pursue the privileges available in subsection (g)(2)(A) and (B) of this section.
(2)
Certified copy designation. A certified copy of an existing
certificate of title will be marked "Certified Copy" until ownership of the
vehicle is transferred, when the words "Certified Copy" will be eliminated
from the new certificate of title.
(3)
Fees. The fee for obtaining a certified copy of a certificate
of title is $2.00 if the application is processed at the department's headquarters
office and $5.45 if the application is processed at one of the department's
regional offices.
(f)
Department notification of second hand vehicle transfers.
A transferor of a motor vehicle may voluntarily make written notification
to the department of the sale of the vehicle, in accordance with Transportation
Code, Chapter 520, Subchapter C, and this subsection.
(1)
Notification form. The department will provide a form for
written notice of transfer. The form will include the:
(A)
vehicle identification number of the vehicle;
(B)
license plate number issued to the vehicle, if any;
(C)
full name and address of the transferor;
(D)
full name and address of the transferee;
(E)
date the transferor delivered possession of the vehicle
to the transferee;
(F)
signature of the transferor; and
(G)
date the transferor signed the form.
(2)
Records. On receipt of written notice of transfer and a
$5.00 fee from the transferor of a motor vehicle, the department will mark
its records to indicate the date of transfer and will maintain a record of
the information provided on the written notice of transfer.
(3)
Ownership of transferred vehicle. After the date of the
transfer of the vehicle as shown in the department records, the transferee
of the vehicle is rebuttably presumed to be:
(A)
the owner of the vehicle; and
(B)
subject to civil and criminal liability arising out of
the use, operation, or abandonment of the vehicle, to the extent that ownership
of the vehicle subjects the owner of the vehicle to criminal or civil liability
under another provision of the law.
(4)
Certificate of title issuance. A certificate of title will
not be issued in the name of a transferee until the transferee files an application
for the certificate of title as described in this section.
(g)
Suspension, revocation, or refusal to issue Certificates
of Title.
(1)
Grounds for title suspension, revocation, or refusal to
issue. The department will refuse issuance of a certificate of title, or having
issued a certificate of title, will suspend or revoke the certificate of title
if the:
(A)
application contains any false or fraudulent statement;
(B)
applicant has failed to furnish required information requested
by the department;
(C)
applicant is not entitled to the issuance of a certificate
of title under Transportation Code, Chapter 501;
(D)
department has reasonable grounds to believe that the vehicle
is a stolen or converted vehicle or that the issuance of a certificate of
title would constitute a fraud against the rightful owner or a lienholder;
(E)
registration of the vehicle stands suspended or revoked;
or
(F)
required fee has not been paid.
(2)
Contested case procedure. Any person who has an interest
in a motor vehicle to which the department has refused to issue a certificate
of title or has suspended or revoked the certificate of title may contest
the department's decision in accordance with Transportation Code, §501.052
and §501.053, in the following manner.
(A)
Hearing. Any person who has an interest in a motor vehicle
to which the department has refused to issue a certificate of title or has
suspended or revoked the certificate of title may apply for a hearing to the
designated agent of the county in which the applicant resides. At the hearing
the applicant and the department may submit evidence, and a ruling of the
designated agent will bind both parties. An applicant wishing to appeal the
ruling of the designated agent may do so to the County Court of the county
in which the applicant resides.
(B)
Alternative to hearing. In lieu of a hearing, any person
who has an interest in a motor vehicle to which the department has refused
to issue a certificate of title or has suspended or revoked a certificate
of title may file a bond with the department, in an amount equal to one and
one-half times the value of the vehicle as determined by the department, and
in a form prescribed by the department. On the filing of the bond, the department
may issue a certificate of title. The bond shall expire three years after
the date it becomes effective and will be returned to the person posting bond,
on expiration, unless the department has been notified of the pendency of
an action to recover on the bond.
(h)
Discharge of lien. A lienholder shall provide the owner,
or the owner's designee, a discharge of the lien after receipt of the final
payment within the time limits specified in Transportation Code, Chapter 501.
The lienholder shall submit one of the following documents:
(1)
the certificate of title including an authorized signature
in the space reserved for release of lien;
(2)
a release of lien form prescribed by the department, with
the form filled out to include the:
(A)
certificate of title or document number, or a description
of the motor vehicle including, but not limited to, the motor vehicle's:
(i)
year;
(ii)
make;
(iii)
vehicle identification number; and
(iv)
license plate number, if the motor vehicle is subject
to registration under Transportation Code, Chapter 502;
(B)
printed name of lienholder;
(C)
signature of lienholder or an authorized agent;
(D)
printed name of the authorized agent if the agent's signature
is shown;
(E)
telephone number of lienholder; and
(F)
date signed by the lienholder;
(3)
signed and dated correspondence submitted on company letterhead
that includes:
(A)
a statement that the lien has been paid;
(B)
a description of the vehicle as indicated in paragraph
(2)(A) of this subsection;
(C)
a certificate of title or document number; or
(D)
lien information;
(4)
any out-of-state prescribed release of lien form, including
an executed release on a lien entry form;
(5)
out-of-state evidence with the word "Paid" or "Lien Satisfied"
stamped or written in longhand on the face, followed by the name of the lienholder,
countersigned or initialed by an agent, and dated; or
(6)
original security agreements or copies of the original
security agreements if the originals or copies are stamped "Paid" or "Lien
Satisfied" with a company paid stamp or if they contain a statement in longhand
that the lien has been paid followed by the company's name.
This agency hereby certifies that the adoption has been
reviewed by legal counsel and found to be a valid exercise of the agency's
legal authority.
Filed with the Office of
the Secretary of State on January 27, 2006.
TRD-200600424
Richard D. Monroe
General Counsel
Texas Department of Transportation
Effective date: February 16, 2006
Proposal publication date: November 11, 2005
For further information, please call: (512) 463-8683
43 TAC §§17.21 - 17.24, 17.28, 17.30, 17.33, 17.36
STATUTORY AUTHORITY
The amendments are adopted under Transportation Code, §201.101, which
provides the Texas Transportation Commission (commission) with the authority
to establish rules for the conduct of the work of the department, and more
specifically, Transportation Code, §501.131, which allows the department
to adopt rules to administer Transportation Code, Chapter 501, governing the
titling of motor vehicles, Transportation Code, §502.0021, which authorizes
the department to adopt rules governing the issuance of motor vehicle registration,
and Occupations Code, §2302.051, which authorizes the commission to adopt
rules governing salvage vehicle dealers.
CROSS REFERENCE TO STATUTE: Transportation Code, Chapters 501, 502, and
504, and Occupations Code, Chapter 2302.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed
with the Office of the Secretary of State on January 27, 2006.
TRD-200600425
Richard D. Monroe
General Counsel
Texas Department of Transportation
Effective date: February 16, 2006
Proposal publication date: November 11, 2005
For further information, please call: (512) 463-8683
43 TAC §17.54
STATUTORY AUTHORITY
The amendments are adopted under Transportation Code, §201.101, which
provides the Texas Transportation Commission (commission) with the authority
to establish rules for the conduct of the work of the department, and more
specifically, Transportation Code, §501.131, which allows the department
to adopt rules to administer Transportation Code, Chapter 501, governing the
titling of motor vehicles, Transportation Code, §502.0021, which authorizes
the department to adopt rules governing the issuance of motor vehicle registration,
and Occupations Code, §2302.051, which authorizes the commission to adopt
rules governing salvage vehicle dealers.
CROSS REFERENCE TO STATUTE: Transportation Code, Chapters 501, 502, and
504, and Occupations Code, Chapter 2302.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed
with the Office of the Secretary of State on January 27, 2006.
TRD-200600426
Richard D. Monroe
General Counsel
Texas Department of Transportation
Effective date: February 16, 2006
Proposal publication date: November 11, 2005
For further information, please call: (512) 463-8683
43 TAC §§17.61, 17.62, 17.65, 17.68
STATUTORY AUTHORITY
The amendments are adopted under Transportation Code, §201.101, which
provides the Texas Transportation Commission (commission) with the authority
to establish rules for the conduct of the work of the department, and more
specifically, Transportation Code, §501.131, which allows the department
to adopt rules to administer Transportation Code, Chapter 501, governing the
titling of motor vehicles, Transportation Code, §502.0021, which authorizes
the department to adopt rules governing the issuance of motor vehicle registration,
and Occupations Code, §2302.051, which authorizes the commission to adopt
rules governing salvage vehicle dealers.
CROSS REFERENCE TO STATUTE: Transportation Code, Chapters 501, 502, and
504, and Occupations Code, Chapter 2302.
§17.68.Rebuilt Salvage Motor Vehicles.
(a)
Filing for title. When a salvage motor vehicle or a nonrepairable
motor vehicle for which a nonrepairable vehicle title was issued prior to
September 1, 2003, has been rebuilt, the owner shall file a certificate of
title application, as described in §17.3 of this chapter (relating to
Motor Vehicle Certificates of Title), for a rebuilt salvage certificate of
title.
(b)
Place of application. An application for a rebuilt salvage
certificate of title shall be filed with the county tax assessor-collector
in the county in which the applicant resides or in the county in which the
motor vehicle was purchased or is encumbered.
(c)
Fee for rebuilt salvage certificate of title. In addition
to the statutory fee for a title application and any other applicable fees,
a $65 rebuilt salvage fee must accompany the application, unless the applicant
provides the evidence described in subsection (d)(3)(B) of this section.
(d)
Accompanying documentation. The application for a certificate
of title for a rebuilt nonrepairable or salvage motor vehicle must be supported,
at a minimum, by the following documents:
(1)
evidence of ownership, properly assigned to the applicant,
as described in subsection (e) of this section;
(2)
a rebuilt affidavit, on a notarized form prescribed by
the department that includes:
(A)
a description of the motor vehicle, which includes the
motor vehicle's model year, make, model, identification number, and body style;
(B)
an explanation of the repairs or alterations made to the
motor vehicle;
(C)
a description of each major component part used to repair
the motor vehicle and showing the identification number required by federal
law to be affixed to or inscribed on the part;
(D)
the name and address of the owner;
(E)
the signature of the owner, or the owner's authorized agent;
and
(F)
certification by the applicant that the vehicle identification
number disclosed on the rebuilt affidavit is the same as the vehicle identification
number affixed to the vehicle;
(3)
evidence of inspection submitted by the person who repairs,
rebuilds, or reconstructs a nonrepairable or salvage motor vehicle in the
form of:
(A)
disclosure on the rebuilt affidavit of the vehicle inspection
sticker number, and date of expiration, issued by an authorized state safety
inspection station after the motor vehicle was rebuilt, if the motor vehicle
will be registered at the time of application; or
(B)
a written statement, executed by a specially trained commissioned
officer of the Department of Public Safety prior to September 1, 2003, certifying
that the rebuilt nonrepairable or salvage motor vehicle's parts and identification
numbers have been inspected and that the vehicle complies with state safety
standards;
(4)
an odometer disclosure statement properly executed by the
seller of the motor vehicle and acknowledged by the purchaser, if applicable;
(5)
proof of financial responsibility in the title applicant's
name, as required by Transportation Code, §502.153, unless otherwise
exempted by law;
(6)
the identification certificate required by Transportation
Code, §548.256, and Transportation Code, §501.030, if the motor
vehicle was last titled and registered in another state or country, unless
otherwise exempted by law; and
(7)
a release of any liens, unless there is no transfer of
ownership and the same lienholder is being recorded as is recorded on the
surrendered evidence of ownership.
(e)
Evidence of ownership of a rebuilt salvage motor vehicle:
(1)
may include:
(A)
a Texas Salvage Vehicle Title;
(B)
a Texas Nonrepairable Certificate of Title issued prior
to September 1, 2003;
(C)
a Texas Salvage Certificate; or
(D)
a comparable salvage certificate or salvage certificate
of title issued by another jurisdiction, except that this ownership document
will not be accepted if it indicates that the motor vehicle may not be rebuilt
in the jurisdiction that issued the ownership document; but
(2)
may not include:
(A)
a Texas nonrepairable vehicle title issued on or after
September 1, 2003;
(B)
an out-of-state ownership document that indicates that
the motor vehicle is nonrepairable, junked, for parts or dismantling only,
or the motor vehicle may not be rebuilt in the jurisdiction that issued the
ownership document; or
(C)
a certificate of authority to dispose of a motor vehicle
issued in accordance with Transportation Code, Chapter 683.
(f)
Rebuilt salvage certificate of title issuance. Upon receiving
a completed certificate of title application for a rebuilt salvage motor vehicle,
along with the applicable fees and required documentation, the transaction
will be processed and a rebuilt salvage certificate of title will be issued.
The certificate of title will include a "Rebuilt Salvage" notation and a description
or disclosure of the motor vehicle's former condition on its face.
(g)
Issuance of rebuilt salvage certificate of title to a motor
vehicle from another jurisdiction. On proper application, as prescribed by §17.3
of this chapter (relating to Motor Vehicle Certificates of Title), by the
owner of a motor vehicle that is brought into this state from another jurisdiction
and for which a certificate of title issued by the other jurisdiction contains
a "Rebuilt," "Salvage," or analogous title remark, the department will issue
the applicant a certificate of title or other appropriate document for the
motor vehicle. A certificate of title or other appropriate document issued
under this subsection will show on its face:
(1)
the date of issuance;
(2)
the name and address of the owner;
(3)
any registration number assigned to the motor vehicle;
(4)
a description of the motor vehicle as determined by the
department; and
(5)
any title remark the department considers necessary or
appropriate.
This agency hereby certifies that the adoption has been
reviewed by legal counsel and found to be a valid exercise of the agency's
legal authority.
Filed
with the Office of the Secretary of State on January 27, 2006.
TRD-200600427
Richard D. Monroe
General Counsel
Texas Department of Transportation
Effective date: February 16, 2006
Proposal publication date: November 11, 2005
For further information, please call: (512) 463-8683
43 TAC §§17.72, 17.73, 17.79
STATUTORY AUTHORITY
The amendments are adopted under Transportation Code, §201.101, which
provides the Texas Transportation Commission (commission) with the authority
to establish rules for the conduct of the work of the department, and more
specifically, Transportation Code, §501.131, which allows the department
to adopt rules to administer Transportation Code, Chapter 501, governing the
titling of motor vehicles, Transportation Code, §502.0021, which authorizes
the department to adopt rules governing the issuance of motor vehicle registration,
and Occupations Code, §2302.051, which authorizes the commission to adopt
rules governing salvage vehicle dealers.
CROSS REFERENCE TO STATUTE: Transportation Code, Chapters 501, 502, and
504, and Occupations Code, Chapter 2302.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed
with the Office of the Secretary of State on January 27, 2006.
TRD-200600428
Richard D. Monroe
General Counsel
Texas Department of Transportation
Effective date: February 16, 2006
Proposal publication date: November 11, 2005
For further information, please call: (512) 463-8683
Subchapter N. RAIL FACILITIES
43 TAC §21.801, §21.802
The Texas Department of Transportation (department) adopts
new §21.801 and §21.802, concerning acquisition and disposal of
real property for rail facilities. New §21.801 and §21.802 are adopted
without changes to the proposed text as published in the November 11, 2005,
issue of the
Texas Register
(30 TexReg 7412)
and will not be republished.
EXPLANATION OF ADOPTED NEW SECTIONS
Transportation Code, Chapter 91, Subchapter E authorizes the Texas Transportation
Commission (commission) to acquire a right-of-way, a property right, or other
interest in real property determined to be necessary or convenient for the
department's acquisition, construction, maintenance, or operation of rail
facilities, and to sell, convey, or otherwise dispose of any rights or other
interests in real property determined to no longer be needed for department
purposes. The new sections establish procedures for the implementation and
administration of Transportation Code, Chapter 91, Subchapter E.
Section 21.801(a) adopts for rail facilities the same acquisition procedures
that currently apply to highways as set forth in 43 TAC Chapter 21, Subchapter
A (relating to Land Acquisition Procedures), Subchapter D (relating to Expenses
Incidental to Transfer of Title To State), and Subchapter G (relating to Relocation
Assistance and Benefits).
Section 21.801(b) describes the requirements for purchasing property along
alternative potential routes for a rail facility even if only one of those
potential routes will ultimately be chosen as the final route. Specifically, §21.801(b)
provides for a two-step process. In the first step, the commission must authorize
the acquisition along alternative potential routes. The second step requires
the district engineer to analyze the particular property to be acquired in
relation to the needs and conditions of the specific rail facility. The district
engineer must find that the property may possibly be used in connection with
the proposed rail facility. In addition, the district engineer must determine
that the size and location of the property is reasonably related to the facility's
possible design and alignment and that the acquisition may be economically
beneficial to the department by preserving undeveloped or underdeveloped property
for a rail corridor. These additional requirements seek to provide justification
for the acquisition along alternative routes by the person in a district who
has the most complete overview and control of the project.
Section 21.801(c) clarifies that the department can use the services of
a right of way acquisition provider under comprehensive development agreements
and pass-through fare agreements.
Section 21.802(a) adopts for rail facilities the same disposal of real
property procedures for sale by sealed bid that currently apply to property
that was acquired for highway purposes as set forth in 43 TAC Chapter 21,
Subchapter F (relating to Disposal of Real Estate Interests).
Section 21.802(b) creates priorities for sale of rail facility real property
interests. They are similar to the priorities created by Transportation Code, §202.021,
for the sale of property acquired for highway purposes. The primary difference
is an equal first priority for both operating railroad companies and governmental
entities with the authority to condemn. This is designed to maximize the potential
for preserving rail facilities after such use is surplus to the department's
needs.
Section 21.802(c) provides that the priorities will not apply in an exchange
situation in order to allow for flexibility in the use of surplus department
property as consideration for acquiring other needed real property.
Section 21.802(d) authorizes the commission to consider the cost of future
maintenance as fair value consideration for the transfer of real property
to another governmental entity. This is in lieu of monetary payment and is
similar to the authority created by Transportation Code, §202.021, for
the sale of property acquired for highway purposes.
Section 21.802(e) directs the revenue from the sale of rail facility property
to be deposited to the credit of the state highway fund. This is similar to
the requirement created by Transportation Code, §202.021, for the sale
of property acquired for highway purposes.
COMMENTS
No comments on the proposed new sections were received.
STATUTORY AUTHORITY
The new sections are adopted under Transportation Code, §201.101,
which provides the commission with the authority to establish rules for the
conduct of the work of the department, and more specifically, Transportation
Code, §91.003, which authorizes the commission to adopt rules necessary
to implement Chapter 91.
CROSS REFERENCE TO STATUTE
Transportation Code, Chapter 91, Subchapter E.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of
the Secretary of State on January 27, 2006.
TRD-200600429
Richard D. Monroe
General Counsel
Texas Department of Transportation
Effective date: February 16, 2006
Proposal publication date: November 11, 2005
For further information, please call: (512) 463-8683
Subchapter B. TRAVEL INFORMATION
43 TAC §23.13
The Texas Department of Transportation (department) adopts
new §23.13, concerning links to community web sites from rest areas and
travel information centers. New §23.13 is adopted without changes to
the proposed text as published in the November 11, 2005, issue of the
EXPLANATION OF ADOPTED NEW SECTION
Section 23.13(a) describes the purpose of the section, which is to establish
policies and procedures governing the participation of communities and the
approval by the department of web sites that may link to the department's
wireless internet access web pages from rest areas and travel information
centers.
Section 23.13(b) describes how a city or town may submit a request for
approval of a web site link and requires contact information for two official
representatives of the city or town.
Section 23.13(c) describes the department's approval process. First, the
city or town must already be included on the Texas Official Travel Map. The
subsection contains this restriction because the department is using the current
travel map and its database of communities to develop the wi-fi maps that
can be seen on the web site and because, typically, a location that is not
on the travel map has few amenities for a traveler. Second, to help ensure
consistency and accuracy, the web site must be considered the official site
of the city, town, or region, and be advertised as the official site in the
community's tourism information.
Section 23.13(d) defines the restrictions related to a web site. The purpose
of linking to web sites is to provide travel and tourism information to the
traveling public and to promote the positive attributes of the state. Accordingly,
subjects for web site content that include sexually-oriented products or services
will not be considered, nor will web site information that discriminates against
individuals on the basis of race, color, creed, religion, sex, or national
origin.
To ensure the integrity of the program, §23.13(e) describes the procedures
for removal of the web site link based on the department's receipt of three
or more consumer complaints concerning inaccurate information or information
prohibited under §23.13(d).
COMMENTS
No comments on the proposed new section were received.
STATUTORY AUTHORITY
The new section is adopted under Transportation Code, §201.101, which
provides the Texas Transportation Commission with the authority to establish
rules for the conduct of the work of the department.
CROSS REFERENCE TO STATUTE
None.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of
the Secretary of State on January 27, 2006.
TRD-200600430
Richard D. Monroe
General Counsel
Texas Department of Transportation
Effective date: February 16, 2006
Proposal publication date: November 11, 2005
For further information, please call: (512) 463-8683
The Texas Department of Transportation (department) adopts amendments
to §§28.11, 28.14, 28.15, 28.92, and new Subchapter H, Chambers
County Permits, §§28.100 - 28.102, concerning oversize and overweight
vehicles and loads. The amendments to §§28.11, 28.14, 28.15, 28.92
and new §§28.100 - 28.102 are adopted without changes to the proposed
text as published in the November 11, 2005, issue of the
Texas Register
(30 TexReg 7415) and will not be republished.
EXPLANATION OF ADOPTED AMENDMENTS AND NEW SECTIONS
The adopted amendments and new sections are necessary to implement the
provisions of House Bill 1044, House Bill 2438, and Senate Bill 1641, 79th
Legislature, Regular Session, 2005, and to clarify existing information.
House Bill 1044 amended Transportation Code, Chapter 623, by adding §623.250
to authorize Chambers County, Texas, to issue permits for the movement of
loaded oversize/overweight vehicles weighing up to 100,000 pounds only on
Farm-to-Market Road 1405 and the frontage road of State Highway 99 located
in the Cedar Crossing Business Park.
House Bill 2438 amended Transportation Code, Chapter 623, by repealing §623.093(d),
removing the requirement for certain manufactured housing permit applications
to be accompanied by proof that ad valorem taxes have been paid.
Senate Bill 1641 amended Transportation Code, Chapter 623, by extending
the expiration date of the Port of Brownsville Permit Program defined in §623.219.
Additional amendments are adopted to clarify escort vehicle requirements
to ensure consistency in escort vehicle equipment. Amendments to surety bond
requirements are adopted to ensure that motor carriers hauling oversize/overweight
loads are in compliance with motor carrier registration requirements.
Section 28.11. General Oversize/Overweight Permit Requirements and Procedures.
Adopted changes to §28.11(b)(1), clarify when a surety bond is and
is not acceptable in lieu of motor carrier registration when applying for
an oversize/overweight permit. This will assist in ensuring that motor carriers
hauling oversize/overweight loads are in compliance with financial responsibility
requirements. Section 28.11(b)(1) states that a surety bond can only be used
if the entity is not required to register as a motor carrier. This amendment
will help ensure the safety of the traveling public and will help ensure the
integrity of the highway infrastructure.
Adopted changes to §28.11(k)(7)(A), state that escort vehicles must
be a single unit within a specific weight range. This addition will help clarify
what vehicle type can and cannot be used as an escort vehicle. Section 28.11(k)(7)(C)
requires escort vehicles to display sign(s) with "OVERSIZE LOAD" or "WIDE
LOAD"; "WIDE LOAD" has been added to allow for consistency in industry standards.
Section 28.11(k)(7)(D) requires the escort vehicle to maintain two-way "radio"
communications; "radio" has been removed to allow for other means of communication,
such as cell phone. These amendments clarify the equipment requirements for
escort vehicles assisting with the transport of oversize/overweight loads.
These amendments will help ensure the safety of the traveling public.
Section 28.14. Manufactured Housing, and Industrialized Housing and Building
Permits.
Adopted amendments to §28.14(b)(3) comply with House Bill 2438, 79th
Legislature, Regular Session, 2005, which repealed §623.093(d), eliminating
the requirement for certain manufactured housing permit applications to be
accompanied by proof that ad valorem taxes have been paid. This repeal will
allow the department to more effectively and efficiently administer Transportation
Code, Chapter 623, Subchapter E.
Adopted amendments to §28.14(f)(4)(A)-(D) and §28.14(f)(6) clarify
the equipment requirements for escort vehicles assisting with the transport
of manufactured housing. These amendments are added for consistency to ensure
that all escort vehicles meet the same general requirements.
Section 28.15. Portable Building Unit Permits.
Adopted amendments to §28.15(f)(3)(D) and §28.15(f)(4) clarify
the equipment requirements for escort vehicles assisting with the transport
of portable buildings. These amendments are added for consistency to ensure
that all escort vehicles meet the same general requirements.
Section 28.92 Permit Issuance Requirements and Procedures.
Adopted amendments to §28.92(b)(3) define reporting requirements for
the Port of Brownsville Permit Program. This requires the permitting authority
to provide monthly and annual reports. This will ensure compliance with Transportation
Code, §623.215.
Section 28.92(h)(7) is amended to extend the expiration date of the Port
of Brownsville Permit Program to June 1, 2009, to ensure compliance with Senate
Bill 1641, 79th Legislature, Regular Session, 2005.
Subchapter H. Chambers County Permits.
Adopted amendments to Chapter 28 include the addition of Subchapter H,
to comply with the requirements of House Bill 1044, 79th Legislature, Regular
Session, 2005. This subchapter was developed to be consistent with similar
programs previously established.
Adopted §28.100 defines the purpose of Subchapter H, which allows
Chambers County, Texas, to issue permits for the movement of loaded oversize/overweight
vehicles weighing up to 100,000 pounds only on Farm-to-Market Road 1405 and
the frontage road of State Highway 99 located in the Cedar Crossing Business
Park.
Adopted §28.101 defines the responsibilities of Chambers County, Texas
and the department for the implementation and oversight of the Chambers County
Permit Program. Areas of responsibility included in the adopted addition are
(1) surety bond; (2) verification of permits; (3) training; (4) accounting;
(5) audits; (6) revocation of authority to issue permits; (7) fees; (8) maintenance
contract; and (9) reporting. These areas were developed to be in compliance
with Transportation Code, Chapter 623, Subchapter M and to be consistent with
similar programs previously established.
Adopted §28.102 establishes the permit issuance requirements and procedures
that Chambers County, Texas must follow as part of the Chambers County Permit
Program. Requirements and procedures included in the adopted addition are
(1) permit application; (2) permit issuance; (3) maximum permit weight limits;
(4) vehicles exceeding weight limits; (5) registration; (6) travel conditions;
(7) daylight and night movement restrictions; and (8) restrictions. These
areas were developed to be in compliance with Transportation Code, Chapter
623, Subchapter M, and to be consistent with similar programs previously established.
COMMENTS
No comments on the proposed amendments and new sections were received.
Subchapter B. GENERAL PERMITS
43 TAC §§28.11, 28.14, 28.15
STATUTORY AUTHORITY
The amendments are adopted under Transportation Code, §201.101, which
provides the Texas Transportation Commission with the authority to establish
rules for the conduct of the work of the department, and more specifically,
Transportation Code, Chapter 623, which authorizes the department to administer
the provisions of the laws governing the issuance of permits for the movement
of oversize and overweight vehicles and loads.
CROSS REFERENCE TO STATUTE
Transportation Code, §623.215, and §623.250.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of
the Secretary of State on January 27, 2006.
TRD-200600431
Richard D. Monroe
General Counsel
Texas Department of Transportation
Effective date: February 16, 2006
Proposal publication date: November 11, 2005
For further information, please call: (512) 463-8683
Subchapter B. ADJUDICATIVE PRACTICE AND PROCEDURE
Subchapter C. LICENSES, GENERALLY
Subchapter D. FRANCHISED DEALERS, MANUFACTURERS, DISTRIBUTORS, CONVERTERS AND REPRESENTATIVES
Subchapter E. GENERAL DISTINGUISHING NUMBERS
Subchapter F. LESSORS AND LEASE FACILITATORS
Subchapter G. WARRANTY PERFORMANCE OBLIGATIONS
Subchapter H. ADVERTISING
Chapter 17.
VEHICLE TITLES AND REGISTRATION
Subchapter B. MOTOR VEHICLE REGISTRATION
Subchapter C. REGISTRATION AND TITLE SYSTEM
Subchapter D. NONREPAIRABLE AND SALVAGE MOTOR VEHICLES
Subchapter E. SALVAGE VEHICLE DEALERS
Chapter 21.
RIGHT OF WAY
Chapter 23.
TRAVEL INFORMATION
Chapter 28.
OVERSIZE AND OVERWEIGHT VEHICLES AND LOADS
Subchapter G. PORT OF BROWNSVILLE PORT AUTHORITY PERMITS