TITLE transportation

Part I. Texas Department of Transportation

Chapter 1. Management

Subchapter F. Advisory Committees

43 TAC §1.82, §1.83

The Texas Department of Transportation proposes amendments to §1.82 and §1.83, concerning statutory advisory committees. Senate Bill 370, §1.34, 75th Legislature, 1997, created Transportation Code, §53.001, requiring the department to create a Port Authority Advisory Committee to advise the commission and the department on matters relating to port authorities.

In order to comply with Senate Bill 370, §1.34, 75th Legislature, 1997, and provide for representation on the committee from several geographic areas, §1.82 is amended to provide that the commission will appoint five members to staggered three-year terms, except for the initial terms. One member will be from the Port of Houston Authority of Harris County, two will be from ports located north of the Matagorda/Calhoun County line (excluding the Port of Houston Authority), and two will be from ports located south of the Matagorda/Calhoun County line. The amendment also provides that the commission will consider nominees for appointments, and authorizes the members to be reimbursed for reasonable and necessary expenses if funding has been appropriated by the legislature.

Section 1.83 establishes the duties of the committee to advise the commission and the department on matters relating to port authorities, including intermodal and multimodal transportation issues and the identification and development of funding mechanisms. It provides procedures for election of the chair and committee meetings.

Frank J. Smith, Director, Budget and Finance Division, has determined that for each year of the first five-year period the sections are in effect there will be no fiscal implications for state government as a result of enforcing or administering the sections. There are anticipated fiscal implications for local governments that have representatives on the committee as a result of administering or enforcing the amended sections. The estimated increase in costs to those local governments is $3,375 each year for Fiscal Years 1998-2002. There are no anticipated economic costs to persons who are required to comply with the sections as proposed.

Jim Randall, Director, Multimodal Operations Office, has certified that there will be no significant impact on local economies or overall employment as a result of enforcing or administering the amended sections. Mr. Randall has also determined that for each year of the first five years the sections are in effect the public benefits anticipated as a result of enforcing the sections will be to provide a forum for the exchange of information between the commission, the department, members representing the seaport industry in Texas, and others who have an interest in seaports. There is no effect on small businesses.

Written comments on the proposed amendments may be submitted to Jim Randall, Director, Multimodal Operations Office, Texas Department of Transportation, 125 East 11th Street, Austin, Texas 78701. The deadline for receipt of written comments will be 5:00 p.m. on February 3, 1998.

The amendments are proposed 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 Texas Department of Transportation, and Transportation Code, §53.001, which requires the department to create a Port Authority Advisory Committee to advise the commission and the department on matters relating to port authorities.

No other statutes, articles, or codes are affected by the proposed amended sections.

§1.82.Statutory Advisory Committee Operations and Procedures.

(a)

Applicability. This section applies to statutory advisory committees.

(b)

Membership.

(1)

Aviation. The commission will appoint the members of the Aviation Advisory Committee to staggered terms of three years, unless sooner removed at the discretion of the commission, with two members' terms expiring August 31 of each year.

(2)

Household Goods Carriers. Pursuant to Texas Civil Statutes, Article 6675c, §8(f), the department's assistant executive director for motorist services shall appoint to the Household Goods Carrier Advisory Committee:

(A)

three members as representatives of the general public;

(B)

one member as a representative of the department; and

(C)

one member each as representatives of motor carriers transporting household goods using small equipment, motor carriers transporting household goods using medium equipment, and motor carriers transporting household goods using large equipment.

(3)

Public Transportation. Members of the Public Transportation Advisory Committee shall be appointed and shall serve pursuant to Transportation Code, §455.004.

(4)

Vehicle Storage Facility/Tow Truck Rules. The department's assistant executive director for motorists services will appoint to the Vehicle Storage Facility/Tow Truck Rules Advisory Committee two members who represent the general public and one member each as representatives of the following:

(A)

tow truck operators;

(B)

vehicle storage facility operators;

(C)

owners of property having parking facilities;

(D)

law enforcement agencies or municipalities; and

(E)

insurance companies.

(5)

Port Authority.

(A)

The commission will appoint five members to staggered three-year terms unless removed sooner at the discretion of the commission.

(B)

For initial terms, the commission will appoint:

(i)

one member to serve a term expiring on December 31, 1999;

(ii)

two members to serve terms expiring December 31, 2000; and

(iii)

two members to serve terms expiring December 31, 2001.

(C)

Existing members shall serve until the commission appoints new members under subparagraph (A) of this paragraph.

(D)

The commission will appoint:

(i)

one member from the Port of Houston Authority of Harris County;

(ii)

two members from ports located north of the Matagorda/Calhoun County line and excluding the Port of Houston Authority; and

(iii)

two from ports located south of the Matagorda/Calhoun County line.

(D)

The commission will consider nominees for the five members from:

(i)

Texas Ports Association;

(ii)

other port associations;

(ii)

Texas ports; and

(iv)

the general public.

(6) [ (5) ]

Officers. Each committee shall elect a chair and vice-chair by majority vote of the members of the committee. The Port Authority Advisory Committee shall elect a chair for a one-year term. The department encourages the committee to rotate the chair among the members from the different geographic areas represented.

(c)

Meetings.

(1)

Open meeting requirements. Advisory committees shall post and hold all meetings in accordance with the provisions applicable to meetings of the commission under the Texas Open Meetings Act, the Government Code, Chapter 551. Filing of notice of open meetings with the secretary of state shall be coordinated through the department's general counsel.

(2)

Regular meetings. The chair of the committee shall provide notice of time, date, place, and purpose of regular meetings to the members and the executive director, by mail or telephone or both, at least 10 calendar days in advance of each meeting.

(3)

Quorum. A majority of the membership of an advisory committee constitutes a quorum. The committee may act only by majority vote of its membership.

(4)

Attendance. A record of attendance at each meeting shall be made. If a member of a committee appointed by the commission or by the department misses two consecutive meetings, written notice shall be given to the member. A third consecutive absence from a regular meeting will be sufficient grounds for removal of the member.

(5)

Parliamentary procedure. Parliamentary procedures for all committee meetings shall be in accordance with the latest edition of Roberts Rules of Order, except that the chair may vote on any action as any other member of the committee.

(6)

Record. Minutes of all committee meetings shall be prepared and filed with the commission. The complete proceedings of all committee meetings must also be recorded by electronic means.

(7)

Open records. All minutes, transcripts, and other records of the advisory committees are records of the commission and as such are subject to disclosure under the provisions of the Government Code, Chapter 552.

(d)

Reimbursement. Advisory committee members are not entitled to receive compensation for serving as members. Members of the Public Transportation , [ and ] Aviation Advisory , and Port Authority Advisory Committees will be reimbursed for reasonable and necessary expenses for performing their duties if funding has been appropriated by the legislature . Current rules and laws governing reimbursement of expenses for state employees shall govern reimbursement for expenses of advisory committee members.

(e)

Conflict of interest. Advisory committee members are subject to the same laws and policies governing ethical standards of conduct as those for commission members and employees of the department.

(f)

Administrative support. For each advisory committee, the executive director will designate an office of the department that will be responsible for providing any necessary administrative support essential to the functions of the committee.

(g)

Advisory committee recommendations. In developing department policies, the commission will consider the recommendations submitted by advisory committees.

(h)

Manner of reporting.

(1)

The office designated under subsection (f) of this section shall, in writing, report to the commission an official action of a statutory advisory committee, including any advice and recommendations, prior to commission action on the issue. The chair of the advisory committee or his or her designee will also be invited by the department to appear before the commission prior to commission action on a posted agenda item to present the committee's advice and recommendations.

(2)

In the event a written report cannot be furnished to the commission prior to commission action, the report may be given orally, provided that a written report is furnished within 10 days of commission action.

§1.83.Statutory Advisory Committees.

(a)

Aviation Advisory Committee.

(1)

Purpose. Created pursuant to Transportation Code, §21.003, the Aviation Advisory Committee provides a direct link for general aviation users' input into the Texas Airport System. The committee provides a forum for exchange of information concerning the users' view of the needs and requirements for the economic development of the aviation system. The members of the committee are an avenue for interested parties to utilize to voice their concerns and have that data conveyed for action for system improvement. Additionally, committee members are representatives of the department and its Aviation Division, able to furnish data on resources available to the Texas aviation users.

(2)

Duties. The committee shall:

(A)

periodically review the adopted capital improvement program;

(B)

advise the commission on the preparation and adoption of an aviation facilities development program;

(C)

advise the commission on the establishment and maintenance of a method for determining priorities among locations and projects to receive state financial assistance for aviation facility development;

(D)

advise the commission on the preparation and update of a multi-year aviation facilities capital improvement program; and

(E)

perform other duties as determined by order of the commission.

(3)

Meetings. The committee shall meet once a calendar year and such other times as requested by the Aviation Division Director.

(4)

Duration. The committee is abolished September 1, 2001, unless continued in existence by affirmative vote of the commission.

(b)

Household Goods Carriers Advisory Committee.

(1)

Purpose. The Household Goods Carriers Advisory Committee provides a forum for household goods carriers and the general public to provide input into modernizing and streamlining department rules adopted under Texas Civil Statutes, Article 6675c, §8(c), which are designed to protect customers of household goods movers from deceptive or unfair practices and unreasonably hazardous activities on the part of movers. The committee, with representation from the regulated community, the general public, and the department, helps ensure effective communication among interested parties and valuable input into modernizing and streamlining department rules affecting household goods carriers and their customers.

(2)

Duties. The committee shall:

(A)

examine the rules adopted under Texas Civil Statutes, Article 6675c, §8(c) and advise the department on methods of modernizing and streamlining such rules;

(B)

conduct a study of the feasibility and necessity of requiring any vehicle liability insurance for household goods carriers required to register under Texas Civil Statutes, Article 6675c,§8;

(C)

recommend a maximum level of liability for loss or damage of household goods carriers required to register under Texas Civil Statutes, Article 6675c, §8, not to exceed 60 cents per pound; and

(D)

perform other duties as assigned by the Motor Carrier Division Director.

(3)

Meetings. The committee shall meet at the request of the Motor Carrier Division Director.

(4)

Duration. The committee is abolished September 1, 2001, unless continued in existence by affirmative vote of the commission.

(5)

Rulemaking. Section 1.84 of this title (relating to Rulemaking) does not apply to the Household Goods Carrier Advisory Committee.

(c)

Public Transportation Advisory Committee.

(1)

Purpose. Created pursuant to Transportation Code, §455.004, the Public Transportation Advisory Committee provides a forum for the exchange of information between the department, the commission, and committee members representing the transit industry and the general public. Advice and recommendations expressed by the committee provide the department and the commission with a broader perspective regarding public transportation matters that will be considered in formulating department policies.

(2)

Duties. The committee shall:

(A)

advise the commission on the needs and problems of the state's public transportation providers, including recommending methods for allocating state public transportation funds if the allocation methodology is not specified by statute;

(B)

comment on proposed rules or rule changes involving public transportation matters during their development and prior to final adoption unless an emergency requires immediate action by the commission; and

(C)

perform other duties as determined by order of the commission.

(3)

Meetings. The committee shall meet:

(A)

as necessary, at the call of its chair, but not exceeding once each month;

(B)

at the request of the commission; and

(C)

as required by §1.84 of this title (relating to Rulemaking).

(4)

Public transportation technical committees.

(A)

The Public Transportation Advisory Committee may appoint one or more technical committees to advise it on specific issues, such as vehicle specifications, funding allocation methodologies, training and technical assistance programs, and level of service planning.

(B)

A technical committee shall report any findings and recommendations to the Public Transportation Advisory Committee.

(5)

Duration. The committee is abolished September 1, 2001, unless continued in existence by affirmative vote of the commission.

(d)

Vehicle Storage Facility/Tow Truck Rules Advisory Committee.

(1)

Purpose. Created pursuant to Texas Civil Statutes, Article 6675c, the purpose of the Vehicle Storage Facility/Tow Truck Rules Advisory Committee is to advise the department on the development of rules concerning the registration of tow trucks under Texas Civil Statutes, Article 6675c, and the administration of the Vehicle Storage Facility Act, Texas Civil Statutes, Article 6687-9a. The committee, with representation from the regulated community, law enforcement, and the general public, helps ensure effective communication among interested parties and valuable input into the development of rules affecting the tow truck industry.

(2)

Duties. The committee shall advise the department on the adoption of rules regarding:

(A)

the application of Texas Civil Statutes, Article 6675c to tow trucks; and

(B)

the administration by the department of the Vehicle Storage Facility Act.

(3)

Meetings. The committee shall meet:

(A)

at the request of the Motor Carrier Division Director; and

(B)

as required by §1.84 of this title (relating to Rulemaking).

(4)

Duration. The committee is abolished September 1, 2001, unless continued in existence by affirmative vote of the commission.

(e)

Port Authority Advisory Committee.

(1)

Purpose. Created pursuant to Transportation Code, §53.001, the purpose of the Port Authority Advisory Committee is to provide a forum for the exchange of information between the commission, the department, and committee members representing the port industry in Texas and others who have an interest in ports. The committee's advice and recommendations will provide the commission and the department with a broad perspective regarding ports and transportation-related matters to be considered in formulating department policies concerning the Texas port system.

(2)

Duties. The committee shall:

(A)

advise the commission and the department on matters relating to port authorities, including:

(i)

intermodal and multimodal transportation issues relating to Texas waterways, ports, and port improvements;

(ii)

the identification and development of funding mechanisms, including the state infrastructure bank, for addressing the issues described by clause (i) of this subparagraph; and

(B)

perform other duties as determined by the commission or the executive director or his or her designee.

(3)

Meeting. The committee shall meet once a calendar year and such other times as requested by the commission or the executive director or his or her designee.

(4)

Subcommittees.

(A)

The Port Authority Advisory Committee may appoint one or more subcommittees to provide advice on specific issues.

(B)

A subcommittee shall report any findings and recommendations to the Port Authority Advisory Committee chair.

(5)

Duration. The committee is abolished on September 1, 2001, unless continued in existence by affirmative vote of the commission.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Issued in Austin, Texas, on December 19, 1997.

TRD-9716955

Bob Jackson

Deputy General Counsel

Texas Department of Transportation

Earliest possible date of adoption: February 2, 1998

For further information, please call: (512) 463-8630

Chapter 17. Vehicle Titles and Registration

Subchapter A. Motor Vehicle Certificates of Title

43 TAC §17.2, §17.9

The Texas Department of Transportation proposes amendments to §17.2, concerning definitions, and new §17.9, concerning child support liens.

Senate Bill 29, 75th Legislature, 1997, amended Family Code, Chapter 157, to provide for child support liens to be placed on motor vehicle records for past due child support and required that the lien be perfected in accordance with Transportation Code, Chapter 501.

Section 17.2 is amended to add the definition of "obligor" as an individual who is required to make payments under the terms of a support order for a child.

New §17.9 describes the process for perfection of a child support lien against a motor vehicle. In order to perfect a lien, a certified copy of the child support lien notice that has been filed with the county clerk's office or an abstract of judgment for past due child support must be presented to the county tax assessor-collector along with the obligor's title and application for certificate of title.

Frank J. Smith, Director, Budget and Finance Division has determined that for the first five-year period the amendments and new section are in effect, there will be no fiscal implications for state or local government as a result of enforcing or administering the section. The economic costs to individuals who choose to comply with the requirements of the section by filing a child support lien will be $13 for each lien filed. Jerry L. Dike, Director, Vehicle Titles and Registration Division, has certified that there will be no significant impact on local economies or overall employment as a result of enforcing or administering the proposed amendments and new section. Mr. Dike has also determined that for each year of the first five years the amendments and new section are in effect, the public benefit anticipated as a result of enforcing the amendments and new section will be the establishment of a procedure to assist in the collection of past due child support through the enforcement of child support liens. There will be no effect on small businesses.

Written comments on the proposal may be submitted to Mr. Jerry L. Dike, Director, Vehicle Titles and Registration Division, Texas Department of Transportation, 125 East 11th Street, Austin, Texas 78701. The deadline for receipt of written comments will be at 5:00 p. m. on February 3, 1998.

The amendment and new section are proposed 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 Texas Department of Transportation, and more specifically, Family Code, Chapter 157, which provides for the perfection of child support liens on motor vehicles.

No statutes, articles, or codes are affected by the proposed amendments and new section.

§17.2.Definitions.

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.

Obligor

-An individual who is required to make payments under the terms of a support order for a child.

§17.9.Child Support Liens.

Pursuant to Family Code, Chapter 157, a child support lien arises by operation of law through court ordered payment of past due child support.

(1)

A child support lien must be perfected in accordance with Chapter 501, Transportation Code.

(2)

The person filing the lien must provide the department with the obligor's certificate of title and an application for a certificate of title for the same vehicle, and;

(A)

a certified copy of the child support lien notice containing the information required by Family Code, §157.313, which has been filed with the county clerk's office; or

(B)

an abstract of judgment for past due child support.

(3)

The lien is perfected when the department has issued a subsequent title disclosing that the vehicle is subject to a child support lien.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Issued in Austin, Texas, on December 19, 1997.

TRD-9716956

Bob Jackson

Deputy General Counsel

Texas Department of Transportation

Earliest possible date of adoption: February 2, 1998

For further information, please call: (512) 463-8630

43 TAC §17.3

The Texas Department of Transportation proposes amendment to §17.3, concerning Motor Vehicle Certificates of Title. The amended section is necessary to ensure the department's proper administration of the laws concerning the issuance of motor vehicle certificates of title.

House Bill 1173, 75th Texas Legislature, 1997, amended Transportation Code, §501.115(a) to require that a lienholder must discharge a lien on a motor vehicle within 21 days once the lien is satisfied.

To comply with House Bill 1173, §17.3 is amended by adding new subsection (h) to require a lienholder to discharge a lien within 21 days from receipt of the final payment, prescribe the contents of the form for release of lien, and clarify the release of lien procedure.

Frank J. Smith, Director, Budget and Finance Division, has determined that for the first five-year period the amendments are in effect, there will be no fiscal implications for the state or local government as a result of enforcing or administering the section. There will be no economic costs to individuals who are required to comply with the requirements of the section.

Jerry L. Dike, Director, Vehicle Titles and Registration Division, has certified that there will be no significant impact on local economies or overall employment as a result of enforcing or administering the proposed section.

Mr. Dike also has determined that for each year of the first five years the amendments are in effect, the public benefit anticipated as a result of enforcing the section will be the proper, efficient, and effective release of liens for motor vehicles. There will be no effect on small businesses.

Written comments on the proposal may be submitted to Mr. Jerry L. Dike, Director, Vehicle Titles and Registration, Texas Department of Transportation, 125 East 11th Street, Austin, Texas 78701-2483. The deadline for receipt of written comments will be 5:00 p.m. on February 3, 1998.

The amendment is proposed 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 Texas Department of Transportation, and more specifically Transportation Code, Chapter 501 which authorizes the department to carry out the provisions of those laws governing the issuance of motor vehicle certificates of title.

No statutes, articles, or codes are affected by these proposed amendments.

§17.3.Motor Vehicle Certificates of Title.

(a)

Certificates of Title. Unless otherwise exempted by law or this chapter, the owner of any vehicle that is required to be registered in accordance with Transportation Code, Chapter 502, shall be required to apply for a Texas Certificate of Title in accordance with the Certificate of Title Act, 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 a moped designed for or used exclusively on golf courses is not classified as a motor vehicle and, therefore, title cannot be issued until such time as the unit is registered.

(C)

A vehicle which meets the criteria for a moped and has been certified as a moped by the Department of Public Safety, must be registered and titled as a moped; otherwise, 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 and may not be titled.

(B)

Farm tractors owned by agencies exempt from registration fees in accordance with Transportation Code, §502.283, and 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.

(3)

Exemptions from title. Vehicles registered with the following distinguishing license plates may not be titled under the Certificate of Title Act, Transportation Code, Chapter 501:

(A)

vehicles eligible for machinery license plates in accordance with Transportation Code, §502.276, and §502.278;

(B)

vehicles eligible for farm trailer license plates in accordance with Transportation Code, §502.163; and

(C)

vehicles eligible for permit license plates in accordance with Transportation Code, §§502.351-502.353.

(4)

Trailers, semitrailers, and house trailers. Owners of trailers and semitrailers must 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. House trailer-type vehicles must meet the criteria outlined in subparagraph (C) of this paragraph in order to be titled.

(A)

In the absence of a manufacturer's rated carrying capacity for trailers and semitrailers, the rated carrying capacity shall 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 a dwelling, but classified as commercial semitrailers, and must be registered and titled as such if operated upon 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 which 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, Texas Civil Statutes, Article 5221f, administered by the Department of Housing and Community Affairs.

(ii)

A house trailer-type vehicle which is less than eight feet in width and less than forty feet in length is classified as a travel trailer and must be registered and titled.

(iii)

A camper trailer must be titled as a house trailer and must 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 16 TAC, §111.15(c) (relating to Record of Sales and Inventory) and §17.8(a)(1) (relating to Certificates of Title for Salvage Vehicles), a certificate of title application must be filed with the county tax assessor-collector in the county in which the applicant resides, or the county in which the motor vehicle was purchased or encumbered, within 20 working days of the date of sale.

(2)

Information to be included on application. An applicant for an initial certificate of title shall file an application on a form prescribed by the department. The form shall at a minimum require the:

(A)

motor vehicle description which includes, but is 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)

applications filed in the name of entities which do not have, or are not eligible to obtain, a social security number, or

(ii)

individual applicants who do not have, or are not eligible to obtain, a social security number (such applicants shall be required to 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 upon a motor vehicle, house trailer, trailer, semi-trailer, or an 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 upon proper application, presentation of evidence of ownership, and presentation 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 shall be supported by, at a minimum, the following documents:

(A)

evidence of vehicle ownership, as described in subsection (c) of this section;

(B)

odometer disclosure statement properly executed by the seller of the motor vehicle and acknowledged by the purchaser, if applicable;

(C)

the identification certificate required by Transportation Code, §548.256, and Transportation Code, §501.030, if the vehicle was last registered in another state or country; and

(D)

release of any liens or, if not released, the liens shall be carried forward on the new certificate of title application pursuant to the following limitations.

(i)

An out-of-state 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 shall accompany the certificate of title application. Evidence shall 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 shall be required for a new motor vehicle that is sold or offered for sale.

(A)

The manufacturer's certificate of origin shall be in the form prescribed by the division director and shall contain, at a minimum, the following information:

(i)

motor vehicle description which includes, but is 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 Texas dealer as defined in 16 TAC, §111.2, (relating to Definitions), 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 non-manufacturer's representative or distributor, the manufacturer's certificate of origin shall be assigned to the purchaser by the importer.

(2)

Used motor vehicles.

(A)

Evidence of ownership. 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 shall 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.

(B)

Rights of survivorship. A signed "rights of survivorship" agreement, which is either attached to or printed on the certificate of title, allows the transfer of ownership by a surviving spouse. The surviving spouse or the surviving spouse's transferee may make application for a new certificate of title in accordance with the provisions of subsection (b) of this section, surrendering the properly executed certificate of title, along with a copy of the death certificate of the deceased spouse.

(3)

Imported motor vehicles. An application for certificate of title for a motor vehicle last registered or titled in a foreign country shall be supported by, but is not limited to, the following documents:

(A)

the motor vehicle registration certificate or other verification issued by a foreign country which reflects the name of the applicant as the motor vehicle owner, or reflects that such evidence of ownership has been legally assigned to the applicant; and

(B)

proof of compliance with United States Department of Transportation regulations for all 1968 and subsequent year model motor vehicles and for all 1969 and subsequent year model motorcycles which shall include, but is 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 United States Department of Transportation, 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 United States Department of Transportation confirming the exemption from the bond release letter required in subitem (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 United States Customs letterhead and signed by a United States Customs agent verifying that the motor vehicle complies with United States Department of Transportation 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, or verification thereof, or written confirmation from the previous state verifying that a bond release letter issued by the United States Department of Transportation 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 their letterhead stationary.

(4)

Alterations to documentation. An alteration to a registration receipt, certificate of title, manufacturer's certificate, or other evidence of ownership shall constitute valid reason for the rejection of any transaction to which such altered evidence is attached. The department may accept certain types of alterations provided that they are corrected in accordance with the following procedures.

(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 that state in which the lien originated verifying the correct lien information.

(B)

A strikeover on any document which leaves any doubt as the legibility of any digit in a number will not be accepted.

(C)

A correct manufacturer's certificate of origin will be required if the documents show an:

(i)

incomplete or altered vehicle identification number;

(ii)

alteration or strikeover of the vehicle's year model;

(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)

where 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.

(d)

Certificate of title issuance. Upon receiving a completed application for certificate of title, along with the title application fee of $13 and any other applicable fees, the department or its designated agent will process and issue a certificate of title.

(1)

Negotiable titles. The department will issue and mail or deliver negotiable titles, marked "Original," to the applicant or, in the event that there is a lien disclosed in the application, to the first lienholder.

(2)

Non-negotiable titles. The department will issue non-negotiable titles, which 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:

(A)

in the event that there is a lien disclosed in the application a duplicate certificate of title marked "Duplicate Original," will be mailed or delivered to the address of the applicant as disclosed upon the application;

(B)

in the event that the owner of a vehicle last registered or titled in another state (and subject to registration in this state) cannot or does not wish to relinquish the negotiable out-of-state evidence of ownership to obtain a negotiable Texas title, a duplicate certificate of title marked "Registration Purposes Only" will be mailed or delivered to the address of the applicant as disclosed upon the application (in instances where the title or registration receipt is assigned to the applicant, an application for "Registration Purposes Only" will not be processed).

(e)

Replacement of certificate of title. If a certificate of title is lost or destroyed, the owner or lienholder may obtain a certified copy of that title upon proper application with the department in accordance with the Certificate of Title Act, Transportation Code, Chapter 501, and payment of the appropriate fee to the department.

(1)

Certified copy.

(A)

Applicant who is a vehicle owner, lienholder, or verified agent.

(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 and the applicant must present valid personal identification, including a photograph, issued by an agency of this state or of the United States.

(ii)

If the applicant is an agent, the applicant must present verifiable proof that he or she is an agent of the owner or lienholder. This proof may include a power of attorney, business card, written authorization on company letterhead, or employee identification.

(B)

Applicant other than the vehicle owner, lienholder, or verified agent.

(i)

The department will not issue a certified copy of a certificate of title before the fourth business day after application has been made.

(ii)

Such titles shall only be issued by mail.

(2)

Certified copy designation. A certified copy of an existing certificate of title will be marked "Certified Copy" until such time that 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 shall be $2.00 if the application is processed at the department's headquarters office, and $5.45 if such application is processed at one of the department's regional offices.

(4)

Recovery of lost title. In the event that the "Duplicate Original" or "Original" certificate of title is recovered, the owner shall relinquish the certified copy to the department for cancellation and the words "Certified Copy" will be eliminated from certificates issued thereafter by the department as a result of transfer of ownership.

(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 Texas Civil Statutes, Article 6687-5 as amended, and this subsection.

(1)

Notification form. The department shall provide a form for written notice of transfer, which shall include:

(A)

vehicle identification number of the vehicle;

(B)

license plate number issued to the vehicle;

(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 transferor; and

(G)

date the transferor signed the form.

(2)

Records. Upon receipt of written notice of transfer and a $5.00 fee from the transferor of a motor vehicle, the department shall mark its records to indicate the date of transfer and the full name and address of the transferee.

(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 may not be issued in the name of a transferee until such 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, 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 the Certificate of Title Act, Transportation Code, Chapter 501;

(D)

department has reasonable ground 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 mortgagee;

(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 such decisions in accordance with the Certificate of Title Act, Transportation Code, §§501.052-501.053, 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 to the designated agent of the county in which they reside for a hearing. 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. Upon 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 shall be returned to the person posting bond, upon expiration, unless the department has been notified of the pendency of an action to recover on the bond.

(h)

Discharge of lien. A lienholder must provide the owner, or the owner's designee, a discharge of the lien within 21 days from receipt of the final payment. The lienholder must 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 that requires the:

(A)

certificate of title/document number or motor vehicle description 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;

(C)

printed name of lienholder;

(B)

signature of lienholder or an authorized agent;

(C)

printed name of authorized agent if agent's signature is shown;

(D)

telephone number of lienholder; and

(E)

date signed by 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/document number; or

(D)

lien information;

(4)

any out-of-state prescribed release of lien form or a lien filing receipt;

(5)

out-of-state evidence with the word "Paid" or "Lien Satisfied" stamped or written in longhand on the face, followed by name of lienholder, countersigned or initialed by an agent, and dated; or

(6)

original or copies of original security agreements if they are stamped "Paid" or "Lien Satisfied" with a company paid stamp, or a "Paid Statement" in longhand followed by the company's name.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Issued in Austin, Texas, on December 19, 1997.

TRD-9716957

Bob Jackson

Deputy General Counsel

Texas Department of Transportation

Earliest possible date of adoption: February 2, 1998

For further information, please call: (512) 463-8630

Subchapter D. Salvage Vehicle Dealers

43 TAC §17.62

The Texas Department of Transportation proposes amendment to §17.62, concerning salvage vehicle dealer and agent licenses. The amendments are necessary to ensure the department's proper administration of the laws concerning the renewals of expired salvage vehicle dealer and agent licenses.

Texas Civil Statutes, Article 6687-1a requires the department to develop and implement policies regarding the issuance and renewal of licenses to salvage vehicle dealers and agents, and to adopt rules regarding the policies and procedures.

Senate Bill 370, §5.02, 75th Legislature, 1997, amended Texas Civil Statutes, Article 6687-1a concerning vehicle dealer and agent licenses to require the department to notify a salvage vehicle dealer or agent of expiration of license, and to revise the deadlines and fees for renewal of licenses.

The amendments to §17.62(h) require the department to notify a salvage vehicle dealer or agent at least 30 days prior to expiration of license, allow renewal up to one year after expiration of license for an additional fee, and allow a license holder who has moved out-of-state and has been doing business there to renew its license for an additional fee.

Frank J. Smith, Director, Budget and Finance Division, has determined that for the first five years the amendments are in effect, there will be fiscal implications as a result of enforcing or administering the section. The anticipated estimated increase in revenue to the state is $25,463 for Fiscal Years 1998-2002. There are no anticipated fiscal implications for local governments as a result of enforcing or administering the section. The anticipated economic cost to persons who are required to comply with the requirements for the business operation will apply to those persons who do not renew their license before the date of expiration. The increased fees for those who renew after expiration of license will be $32.50 if renewed within 90 or less days and $75 if renewed after 90 days and before one year.

Jerry L. Dike, Director, Vehicle Titles and Registration Division, has certified that there will be no significant impact on local economies or overall employment as a result of enforcing or administering the proposed amendments.

Mr. Dike also has determined that for each year of the first five years the section is in effect, the public benefit anticipated as a result of enforcing the section will be the proper, efficient, and effective licensing of salvage vehicle dealers and agents in the business of acquiring, selling, or dealing in salvage and nonrepairable vehicles and parts. There will be no effect on small businesses.

Written comments on the proposal may be submitted to Mr. Jerry L. Dike, Director, Vehicle Titles and Registration, Texas Department of Transportation, 125 East 11th Street, Austin, Texas 78701-2483. The deadline for receipt of written comments will be 5:00 p.m. on February 3, 1998.

The amendment is proposed 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 Texas Department of Transportation, and more specifically Texas Civil Statutes, Article 6687-1a, which requires the department to adopt rules to administer the licensing of salvage vehicle dealers and agents.

No statutes, articles, or codes are affected by these proposed amendments.

§17.62.Salvage Vehicle Dealer and Agent Licenses.

(a)

Applicability. A person who acts as an automobile recycler, salvage vehicle agent, or salvage vehicle dealer, including a person who stores or displays vehicles as an agent or escrow agent of an insurance company, must obtain a salvage vehicle dealer or an agent license in accordance with Texas Civil Statutes, Article 6687-1a, and the provisions of this subchapter.

(b)

Exemptions. The provisions of this subchapter do not apply to:

(1)

a person who purchases a nonrepairable or salvage vehicle from a salvage pool operator in a casual sale;

(2)

an insurance company authorized to engage in the business of insurance in this state;

(3)

a person predominantly engaged in the business of obtaining ferrous or nonferrous metals;

(4)

a person who sells or offers for sale less than five new or late model salvage motor vehicles of the same type in a calendar year when such vehicles are owned, and registered and titled in the name of such person;

(5)

a person who sells or offers to sell a new or late model salvage motor vehicle acquired for personal or business use if the person does not sell or offer to sell to a retail buyer and the transaction is not held for the purpose of avoiding the provisions of Texas Civil Statutes, Article 6687-1a;

(6)

an agency of the United States, this state, or local government;

(7)

a financial institution or other secured party selling a vehicle in which it holds a security interest, in the manner provided by law for the forced sale of that vehicle;

(8)

a receiver, trustee, administrator, executor, guardian, or other person appointed by or acting pursuant to the order of a court;

(9)

a person selling an antique passenger car or truck that is at least 25 years old or a collector selling a special interest motor vehicle as defined in the Transportation Code, §683.077, if the special interest vehicle is at least 12 years old; and

(10)

a licensed auctioneer who, as a bid caller, sells or offers to sell property to the highest bidder at a bona fide auction if neither legal nor equitable title passes to the auctioneer and if the auction is not held for the purpose of avoiding a provision of Texas Civil Statutes, Article 6687-1a, and this subchapter; and provided that if an auction is conducted of vehicles owned, legally or equitably, by a person who holds a salvage dealer's license, the auction may be conducted at any location for which a salvage dealer's license has been issued to that person or at a location approved by the department as provided by §17.63(a)(1) of this title (relating to Place of Business).

(c)

Classification of licenses. The department will classify salvage vehicle dealers according to the type of activity performed by the dealer. A salvage vehicle dealer may not engage in activities of a particular classification as indicated in this subsection unless the salvage vehicle dealer holds a license authorizing business under that classification. An applicant may apply for a salvage vehicle dealer license in one or more of the following classifications:

(1)

new automobile dealer;

(2)

used automobile dealer;

(3)

used vehicle parts dealer;

(4)

salvage vehicle pool operator;

(5)

salvage vehicle broker; or

(6)

salvage vehicle rebuilder.

(d)

Application for salvage vehicle dealer or agent license.

(1)

Application for salvage vehicle dealer license. An applicant for a salvage vehicle dealer license must apply on a form prescribed by the department. An applicant who will operate as a salvage vehicle dealer under a name other than the name of that applicant shall use the name under which that applicant is authorized to do business, as filed with the secretary of state or county clerk, and the assumed name of such legal entity shall be recorded on the application form using the letters "DBA."

(A)

Form of application. The application form must be signed by the applicant, be accompanied by the application fee of $95, and include:

(i)

the name, business address(es), and business telephone number(s) of the applicant;

(ii)

the name under which the applicant will do business;

(iii)

the location, by number, street, and municipality, of each office from which the applicant will conduct business;

(iv)

a statement indicating whether the applicant has previously applied for a salvage dealer vehicle license under this section, the result of the previous application, and whether the applicant has ever been the holder of a salvage vehicle dealer license that was revoked or suspended;

(v)

an affidavit containing a statement that the applicant has never been convicted of a felony or that it has been at least three years since the applicant's termination of the sentence, parole, mandatory supervision, or probation for a felony conviction;

(vi)

three business association references;

(vii)

the applicant's federal tax identification number, if any;

(viii)

the applicant's state sales tax number;

(ix)

the applicant's social security number, if the applicant is an individual; and

(x)

the classification(s) of license(s) for which the form is being submitted.

(B)

Verification of assumed name. The department will require verification of the assumed name, if applicable, in the form of an assumed name certificate on file with the secretary of state or county clerk at the time the application form is submitted.

(2)

Application for salvage vehicle agent license. An applicant, who is authorized to operate as an agent for a salvage vehicle dealer must apply on a form prescribed by the department. The application form must be signed by the applicant, be accompanied by the application fee, and include:

(A)

the name of the applicant;

(B)

the name, business address, and business telephone number of the salvage vehicle dealer authorizing the applicant as a salvage vehicle agent;

(C)

the name under which the salvage vehicle dealer will do business;

(D)

the location, by number, street, and municipality, of each office from which the applicant will conduct business;

(E)

a statement indicating whether the applicant has previously applied for a salvage vehicle dealer or agent license under this section, the result of the previous application, and whether the applicant has ever been the holder of a salvage vehicle dealer or agent license that was revoked or suspended;

(F)

an affidavit containing a statement that the applicant has never been convicted of a felony or that it has been at least three years since the applicant's termination of the sentence, parole, mandatory supervision, or probation for a felony conviction;

(G)

three business association references;

(H)

the applicant's federal tax identification number, if any;

(I)

the applicant's state sales tax number; and

(J)

the applicant's social security number.

(3)

Application for corporate salvage vehicle dealer license. If a salvage vehicle dealer license applicant intends to engage in business through a corporation, the applicant must apply on a form prescribed by the department.

(A)

Form of application. The form must indicate the name of the corporation, as it appears on file with the secretary of state, be signed by the applicant, be accompanied by the application fee, and include:

(i)

the name, business address(es), and business telephone number(s) of the corporation;

(ii)

the name under which the corporation will do business;

(iii)

the location, by number, street, and municipality, of each office from which the corporation will conduct business;

(iv)

the state of incorporation;

(v)

a statement indicating whether an employee, officer, or director has previously applied for a salvage vehicle dealer license under this section, the result of the previous application, and whether an employee, officer, or director has ever been the holder of a salvage dealer vehicle license that was revoked or suspended;

(vi)

an affidavit containing a statement that each officer and director has never been convicted of a felony or that it has been at least three years since the termination of the sentence, parole, mandatory supervision, or probation for a felony conviction of each officer and director;

(vii)

three business association references;

(viii)

the applicant's federal tax identification number, if any;

(ix)

the applicant's state sales tax number;

(x)

the name, address, date of birth, and social security number of each of the principal officers and directors of the corporation;

(xi)

the classification(s) of license(s) for which the form is being submitted.

(B)

Verification of corporate franchise taxes. The corporation must also provide verification that all corporate franchise taxes required under the Texas Business Corporation Act, Article 2.45, have been paid at the time the application form is submitted to the department.

(4)

Partnerships. If the license applicant intends to engage in business through a partnership, the applicant must apply on a form prescribed by the department. The form must be signed by the applicant, be accompanied by the application fee, and include:

(A)

the name, business address(es), and business telephone number(s) of the partnership;

(B)

the name under which the partnership will do business;

(C)

the location, by number, street, and municipality, of each office from which the partnership will conduct business;

(D)

a statement indicating whether an owner, partner, or employee, has previously applied for a salvage vehicle dealer license under this section, the result of the previous application, and whether an owner, partner, or employee, has ever been the holder of a salvage vehicle dealer license that was revoked or suspended;

(E)

an affidavit containing a statement that each owner or partner has never been convicted of a felony or it has been at least three years since the termination of the sentence, parole, mandatory supervision, or probation for a felony conviction of each owner or partner;

(F)

three business association references;

(G)

the partnership's federal tax identification number, if any;

(H)

the partnership's state sales tax number;

(I)

the name, address, date of birth, and social security number of each owner and partner; and

(J)

the classification(s) of license(s) for which such form is being submitted.

(e)

Issuance, investigation, and report by the department. The department will not grant a salvage vehicle dealer or an agent a license until the department completes an investigation of the applicant's qualifications and references in accordance with Texas Civil Statutes, Article 6687-1a. Such investigation shall be conducted not later than the 15th day after the date the application is received by the department. Upon completion of the investigation, the results of the investigation shall be reported to the applicant(s) by written notification from the department. If the applicant is denied, the applicant may appeal the decision as specified in §17.64 of this title (relating to Denial, Suspension, or Revocation).

(f)

License issuance. The department will issue a license to an applicant who meets the license qualifications of subsection (d) of this section and pays the required fees described in this subsection.

(1)

The license fee for each salvage vehicle dealer or agent license issued for a period of less than one year shall be prorated and only that portion of the $95 license fee allocable to the number of months for which the license is issued shall be payable by the licensee. The amount of such license fees will be rounded off to the nearest dollar.

(2)

A license may not be issued in a fictitious name that may be confused with or is similar to that of a governmental entity or that is otherwise deceptive or misleading to the public.

(3)

A person whose license has been revoked in accordance with §17.64 of this title (relating to Denial, Suspension, or Revocation) may not be issued a new license before the first anniversary of the date of the revocation.

(g)

Use of agents by salvage vehicle dealers. The holder of a salvage vehicle dealer license may authorize not more than five persons to operate as salvage vehicle agents under the dealer's license. An agent may acquire, sell, or otherwise deal in new or late model salvage or nonrepairable vehicles or salvage parts as directed by the dealer. An agent authorized to operate for a salvage vehicle dealer is entitled to a salvage vehicle agent license on application to the department and payment of the required $95 fee as provided by subsection (e) of this section.

(h)

License renewal.

(1)

The department shall notify a salvage vehicle dealer or agent, at least 30 days prior to expiration of license. The notice will be in writing and sent to the person's last known address according to the records of the department.

(2) [ (1) ]

A salvage vehicle dealer or agent license expires on the first anniversary of the date of issuance and may be renewed annually on or before the expiration date on payment of the required renewal fee of $85.

(3)

If the license is not renewed prior to the expiration date, a salvage vehicle dealer or agent may not engage in the activities that require the license until the license has been renewed.

(4) [ (2) ]

If the license is not renewed prior to the expiration date, and:

(A)

if it has been 90 days or less since the date of expiration, the license holder may renew the license on payment of the renewal fee of $127.50; [ and a late fee of $10, provided such fees are submitted within one year of expiration ]

(B)

if it has been more than 90 days since the date of expiration, the license holder may renew the license on payment of the renewal fee of $170; or

(C)

if the license holder has moved out-of-state and has been doing business in another state for two years, the license holder may renew the license by providing:

(i)

the renewal fee of $170;

(ii)

a certificate or other official document issued by the other state demonstrating that the license holder has a business in that state; and

(iii)

the expired Texas salvage vehicle dealer license number.

(4) [ (3) ]

If the license has been expired for a period of one year or longer, the license holder must apply for a new license in the same manner as an applicant for an initial license , except as provided in paragraph (3)(C) of this subsection .

(i)

Licensee duties.

(1)

Proper assignment of ownership.

(A)

If a salvage vehicle dealer acquires ownership of a new or late model salvage vehicle from an owner, the dealer must receive a properly assigned certificate of title. If the assigned certificate of title is not a salvage or nonrepairable motor vehicle certificate of title or comparable ownership document issued by another state or jurisdiction, the licensed salvage vehicle dealer shall, not later than the 10th day after the date of receipt of the title, surrender the assigned certificate of title to the department and apply for a salvage or nonrepairable motor vehicle certificate, as appropriate as provided by §17.8 of this title (relating to Certificates of Title for Salvage Vehicles).

(B)

If a new or late model salvage or nonrepairable vehicle is to be dismantled, scrapped, or destroyed, the salvage vehicle dealer shall surrender the assigned ownership document to the department in the manner prescribed by the department not later than the 30th day after the date the vehicle is acquired and report to the department that the vehicle was dismantled, scrapped, or destroyed.

(C)

If the holder of a salvage vehicle dealer license acquires ownership of an older model vehicle from an owner and receives an assigned certificate of title and the vehicle is to be dismantled, scrapped, or destroyed, the license holder shall surrender the assigned certificate of title to the department on a form prescribed by the department not later than the 30th day after the date on which the title is received. Evidence that the vehicle was dismantled, scrapped, or destroyed must also be presented.

(D)

As required by Texas Civil Statutes, Article 6687-2, a salvage vehicle dealer licensed as a used vehicle parts dealer may not receive a motor vehicle unless the dealer first obtains a certificate of authority, sales receipt, or transfer document in accordance with Transportation Code, Chapter 683, or a certificate of title showing that there are no liens on the vehicle or that all recorded liens have been released.

(2)

Unique inventory number.

(A)

As required by Texas Civil Statutes, Article 6687-2, a salvage vehicle dealer shall assign a unique inventory number to each transaction in which the dealer purchases or takes delivery of one or more component parts. The unique inventory number shall contain the:

(i)

salvage vehicle dealer's license number;

(ii)

day, month, and year of the purchase or delivery; and

(iii)

sequential log number for that day.

(B)

The unique inventory number shall then be attached to each component part the dealer obtains in the transaction. The unique inventory number may not be removed from the component part while the part remains in the inventory of the salvage vehicle dealer.

(C)

Each component part shall be retained in its original condition on the business premises of the salvage vehicle dealer who originally purchased the part for at least three calendar days, excluding Sundays, after the date on which the dealer obtains the part.

(D)

The provisions of subsection (i)(2)(A) and (B) do not apply to a nonoperable engine, transmission, or rear axle assembly purchased by one salvage vehicle dealer from another salvage vehicle dealer or an automotive-related business.

(E)

The provisions of subsection (i) do not apply to:

(i)

interior used component parts or special accessory parts on a motor vehicle more than 10 years of age; or

(ii)

used component parts delivered by commercial freight lines or commercial carriers.

(j)

Record of purchases, sales, and inventory.

(1)

Each holder of a salvage vehicle dealer license shall maintain records of each salvage or nonrepairable vehicle and any salvage parts purchased, sold, or being held in inventory by the license holder. Such records, except as specified in paragraph (2)(C) of this subsection, shall be maintained for a five-year period. These records shall include the:

(A)

date of purchase;

(B)

name and address of the person selling the vehicle or part to the dealer;

(C)

a description of the vehicle or part to include the year model, make, and vehicle identification or component part number, if applicable;

(D)

ownership document number and state of issuance, if applicable;

(E)

copy of the front and back of the ownership document for the vehicle or salvage part purchased by the dealer unless the year model exceeds 10 or more years;

(F)

date the ownership document was surrendered to the department;

(G)

evidence indicating that an older model salvage vehicle was dismantled, scrapped, or destroyed;

(H)

date of sale;

(I)

name and address of the person purchasing the vehicle or part from the dealer; and

(J)

copy of the front and back of the ownership document for the vehicle or salvage part sold by the dealer unless the year model exceeds 10 or more years.

(2)

As required by Texas Civil Statutes, Article 6687-2, a salvage vehicle dealer licensed as a used vehicle parts dealer shall keep an accurate and legible inventory of each used component part purchased by or delivered to the dealer.

(A)

Such parts inventory shall include:

(i)

the date of purchase or delivery;

(ii)

the name, age, address, sex, and driver's license number of the seller and a legible photocopy of the seller's driver's license;

(iii)

the license number of the motor vehicle used to deliver the used component part;

(iv)

a complete description of the item purchased, including the type of material and, if applicable, the make, model, color, and size of the item; and

(v)

the vehicle identification number of the motor vehicle from which the used component part was removed.

(B)

In lieu of the information required in subparagraph (A) of this paragraph, a salvage vehicle dealer may record the name of the business from which the motor vehicle or motor vehicle part is purchased and the Texas certificate of inventory number or federal taxpayer identification number of the business.

(C)

A salvage vehicle dealer is not required to keep records under this subsection for:

(i)

interior used component parts or special accessory parts on a motor vehicle more than 10 years of age; or

(ii)

used component parts delivered by commercial freight lines or commercial carriers.

(D)

As required by Texas Civil Statutes, Article 6687-2, a salvage vehicle dealer shall maintain two copies of each record for used component parts addressed by paragraph (2) of this subsection on a form prescribed by the department for one year after the date of sale or disposal of the item.

(k)

Authorized sale.

(1)

New or late model water damaged salvage motor vehicles. The owner of a new or late model salvage motor vehicle or a nonrepairable motor vehicle so classified solely caused by flood conditions is exempt from the provisions of this subsection, and is not prohibited from selling such vehicle to any person.

(2)

Sales, transfer or release of new or late model salvage or nonrepairable motor vehicle. A salvage vehicle dealer or agent may not sell, transfer, or release a new or late model salvage or nonrepairable motor vehicle to anyone other than:

(A)

a governmental entity;

(B)

the vehicle's former owner;

(C)

a licensed salvage vehicle dealer;

(D)

an out-of-state buyer;

(E)

a buyer in a casual sale at auction; or

(F)

a person described by Texas Civil Statutes, Article 6687-2b, Section (g).

(l)

Determination of estimated cost of repair. If it is necessary for a salvage vehicle dealer or agent to determine the estimated cost of repair, which includes parts and labor, for completion of an application for Texas salvage or nonrepairable motor vehicle certificate of title, the estimated cost of repair parts shall be determined as follows:

(1)

by using a manual of repair costs or other instrument that is generally recognized and commonly used in the motor vehicle insurance industry to determine those costs or an estimate of the actual cost of the repair parts; and

(2)

the estimated labor costs shall be computed by using the hourly rate and time allocations that are reasonable and commonly assessed in the repair industry in the community in which the repairs are performed.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Issued in Austin, Texas, on December 19, 1997.

TRD-9716958

Bob Jackson

Deputy General Counsel

Texas Department of Transportation

Earliest possible date of adoption: February 2, 1998

For further information, please call: (512) 463-8630