Part VI.
Texas Motor Vehicle Board
Chapter 111.
General Distinguishing Numbers
The Motor Vehicle Board of the Texas Department of Transportation
proposes amendments to §§111.1-111.3, 111.5-111.11 and 111.14-111.16,
General Distinguishing Numbers. The Board also proposes the simultaneous repeal
and adoption of new §111.12. The sections set guidelines for holding
a license and operating as an independent motor vehicle dealer in Texas.
The Appropriations Act of 1997, House Bill 1, Article IX, §167 requires
that each state agency review and consider readoption of each rule adopted
by that agency pursuant to the Government Code, Chapter 2001 (Administrative
Procedure Act). Such reviews shall include an assessment by the agency as
to whether the reason for adopting or readopting the rule continues to exist.
The Board conducted a review of Title 16, Chapter 111, relating to General
Distinguishing Numbers, at its March 4, 1999 meeting. As a result of its review,
the Board proposes these changes to Chapter 111.
General changes to rule language.
The Motor Vehicle Board acquired jurisdiction over Chapter 503 of the Transportation
Code in 1995. The amendments clarify that these rules are issued under the
authority of the Board and delete inappropriate references to the Department
of Transportation. The proposals also delete cross-references to sections
of the Texas Revised Civil Statutes that are now codified in the Transportation
Code, correct incorrect citations and eliminate unnecessary references to
obsolete statutes. Other proposals correct grammar.
Other changes specific to each section:
Proposed changes to §111.2, Definitions, clarify the definition of
a barrier, clarify that a sale is any transfer of possession of a vehicle
for consideration, and incorporate the statutory definition of a supplemental
buyer tag in the definition of Temporary Cardboard Tag. The proposed change
to §111.3(c)(1) eliminates an assignment of security and letter of credit
as acceptable forms of security. The proposed change to §111.3(c)(7)
is intended to improve identification of persons operating a dealership. Amendments
to §111.3(h) delete transitional language authorizing staggered renewal
dates of general distinguishing number (GDN) licenses. This has been accomplished
and the transitional language is no longer necessary. Other proposed changes
to §111.3(h) conform the section to statutory language contained in §503.033
of the Transportation Code.
Proposed changes to §§111.5(b), (c) and (d) clarify the notice
and licensing requirements upon the establishment, closing or relocation of
a dealership. The proposed change to §111.6 makes it clear that a dealer
can sell only from a location for which it has a GDN.
The proposed change to §111.7 makes it clear that a dealer must have
a bond at the beginning and must maintain it throughout the licensing year.
Proposed amendments to §111.7(3) eliminate an assignment of security
or an irrevocable letter of credit as acceptable forms of security and add
provisions for notice to the Board if actions are taken against a security.
The proposed changes to the appendices to the General Distinguishing Number
Rules referenced in §111.8 correct minor errors in the formation of numerals
and standardize the instructions for temporary tag use.
The proposed change to §111.9(a) states that a copy of the receipt
for a metal dealer's plate should be carried in the vehicle and presented
to law enforcement personnel upon request. The proposed change to §111.9(c)
is intended to describes the uses of dealer's black temporary cardboard tag
and clarifies that the restrictions do not apply to buyer's tags. Proposed
new §§111.9(m) and 111.9(n) clarify the use of dealer's and buyer's
temporary cardboard tags by wholesale motor vehicle auctions.
The proposed changes to §111.10(1)(B) clarify the number of dealers
located in a structure, the definition of a structure and require an answered
telephone as office equipment. Amendments to §111.10(1)(F) state that
wholesale and retail dealers may not occupy the same structure, but allow
that combination if the dealerships were established prior to September 1,
1999. The proposed change to §111.10.(2) allows for a variance in a
dealer's sign lettering height. Proposed changes to §111.10.(3)(B) establish
the requirement that a dealer's display area must be separate from those of
other dealers.
The proposed change to §111.11(a) allows for imposition of civil penalties
as an alternative to license denial, revocation or suspension for certain
rule violations. Proposed changes to §111.11(a)(3) clarify a dealer's
record-keeping requirements and permit a representatives of the Board to request
copies of records by mail. Amendments to §111.11(a)(6) clarify notification
requirements to the Board when a dealer changes address or telephone number.
The proposed change to §111.11(a)(17) conforms the rules to current language
contained in an application for a certified copy of a title. Proposed additions
to §111.11(a)(23) enumerate the factors to be considered in assessing
civil penalties.
Existing §111.12, Notice and Appeal is repealed and new §111.12,
GDN Sanction and Qualification Hearing, is simultaneously proposed to clarify
the administrative hearing procedure to determine if a dealer has violated
Chapter 111 or the Transportation Code. New §111.12 will provide guidance
to the agency and those who allegedly violate dealer operating rules by providing
a procedure for an administrative hearing by referring to the procedures provided
by Chapter 101 (relating to Practice and Procedure) and eliminate redundant
language.
The proposed change to §111.14(b) simplifies the requirements regarding
use of manufacturer's license plates. Proposed changes to §111.15(a)
clarify a how longer dealers must keep sales records and where they must be
stored. It adds a requirement to provide records upon a mailed request from
the director or designee. Proposed amendments to §111.15(b)(7) will require
a dealer retain a copy of the Tax Collector's Receipt for Title Application/Registration/Motor
Vehicle Tax. The proposed changes to §111.15(b)(8) and new §111.15(b)(9)
clarify a dealer's record-keeping requirements. The proposed change to §111.15(d)
corrects the identification of the out-of-state sales tax exemption form to
be retained by a dealer.
Proposed changes to §111.16(c) eliminate language duplicating §111.5(d)
regarding notice of a change of status and add language allowing for continuing
dealership operations upon the death of a sole proprietor licensee, without
application for new license by the surviving spouse.
Brett Bray, director, Motor Vehicle Division, has determined that for the
first five-year period the proposed sections are in effect, there will be
no fiscal implications for state or local government as a result of enforcing
or administering the sections.
Mr. Bray has also determined that for each year of the first five years
the proposed sections are in effect, the anticipated public benefit of the
amendments to Chapter 111 will be to provide a clearer understanding of the
motor vehicle dealer license operating rules and conserve the time and resources
of the agency and entities appearing before it. There will be no effect on
small businesses and no anticipated economic cost to persons who are required
to comply with the sections as proposed. Mr. Bray has also certified that
there will be no impact on local economies or overall employment as a result
of enforcing or administering the sections.
Comments (15 copies) may be submitted to Brett Bray, Director, Motor Vehicle
Division, Texas Department of Transportation, P. O. Box 2293, Austin, Texas
78768, (512) 416-4910. The Motor Vehicle Board will consider adoption of the
proposals at its meeting on July 22, 1999. The deadline for receipt of comments
on the proposed amendments is 5:00 p.m. on July 5, 1999.
16 TAC §§111.1-111.3, 111.5-111.11, 111.14-111.16
The amendments are proposed under the Texas Motor Vehicle
Commission Code, §3.06, which provides the Board with authority to adopt
rules as necessary and convenient to effectuate the provisions of the Act
and to govern practice and procedure before the agency.
Motor Vehicle Commission Code §§1.03, 3.08, and 4.01 and Transportation
Code §§503.001, 503.006, 503.021-503.038, 503.061, 503.062-503.071,
503.093 and 503.095 are affected by the proposed amendments.
§111.1. Objective.
The objective of these rules is to implement the intent of the legislature
as declared in the Transportation Code §503.001
et seq.
[
§111.2. Definitions.
The following words and terms, when used in the sections under this
chapter, shall have the following meanings, unless the context clearly indicates
otherwise.
(1)
Barrier - A material object or set of objects
that
separates or demarcates.
(2)
Board - The Motor Vehicle Board of the Texas Department
of Transportation.
(3)
Charitable Organization - An organization that is
established and exists for the purpose of relieving poverty, the advancement
of education, religion, or science, the promotion of health, governmental,
or municipal purposes, or other purposes beneficial to the community without
financial gain.
(4)
Commission - Texas Transportation Commission.
(5)
Consignment Sale - The sale of a vehicle by a person
other than the owner, under the terms of a written authorization from the
owner.
(6)
Dealer - Any person who is regularly and actively
engaged in the business of buying, selling, or exchanging new or used motor
vehicles, motorcycles, motor homes, house trailers, or trailers or semitrailers
as defined in the Transportation Code
§501.001
[
(7)
Department - Texas Department of Transportation.
(8)
Director - Director, Motor Vehicle Division, Texas
Department of Transportation.
(9)
License - A dealer's general distinguishing number
assigned by the
Motor Vehicle Board of the
Texas Department of
Transportation for the location from which the person engages in business.
(10)
Person - Any individual, firm, partnership, corporation,
or other legal entity.
(11)
Sale - With regard to a specific vehicle, the transfer
of possession of that vehicle [
(12)
Temporary Cardboard Tag - A buyer tag,
supplemental
buyer tag,
[
(13)
Wholesale Dealer - A licensed dealer who only sells
or exchanges vehicles with other licensed dealers.
§111.3. General Distinguishing Number.
(a)
No person may engage in business as a dealer unless that
person has a currently valid general distinguishing number assigned by the
Board
[
(b)
The provisions of subsection (a) of this section do not
apply to:
(1)
a person who sells or offers for sale
fewer
[
(2)
a person who sells or offers to sell a 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 the Transportation Code, §§503.001
et seq.
[
(3)
an agency of the United States, this state, or local
government;
(4)
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;
(5)
a receiver, trustee, administrator, executor, guardian,
or other person appointed by or acting pursuant to the order of a court;
(6)
an insurance company selling a vehicle acquired from
the owner as the result of paying an insurance claim;
(7)
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 [
(8)
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 another provision of the Transportation
Code, §§503.001,
et seq.
[
(9)
a person who is a domiciliary of another state and
who holds a valid dealer license and bond, if applicable, issued by an agency
of that state, when the person buys a vehicle from, sells a vehicle to, or
exchanges vehicles with a person who:
(A)
holds a current valid general distinguishing number issued
by the
Board
[
(B)
is a domiciliary of another state if the person holds
a valid dealer license and bond, if applicable, issued by that state, and
if the transaction is not intended to avoid the terms of the Transportation
Code, §§503.001,
et seq.
[
(c)
Application for a general distinguishing number shall
be on a form prescribed by the director properly completed by the applicant
showing all information requested thereon and shall be submitted to the director
accompanied by the following:
(1)
a $25,000 surety bond as provided in §111.7 of this
title (relating to Bond Requirements) [
(2)
a one-year lease as cited in §111.10 of this
title (relating to Established and Permanent Place of Business), or deed for
the dealer's location in the name of the applicant;
(3)
the fee for the general distinguishing number as
prescribed by law for each type of license requested;
(4)
the fee as prescribed by law for each dealer metal
plate requested and the license plate reflectorization fee as prescribed by
law;
(5)
photographs clearly showing:
(A)
the interior of the dealer's office;
(B)
the exterior of the dealer's office;
(C)
the dealer's sign;
(D)
the vehicle display area; and
(6)
verification of all assumed name(s), if applicable,
in the form of assumed name certificate(s) on file with the Secretary of State
or county clerk.
(7)
a photocopy of the current
driver's license or Department of Public Safety identification of the owner,
president or managing partner of the dealership.
(d)
A person who applies for a general distinguishing number
and will operate as a dealer under a name other than the name of that person
shall use the name under which that person 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 using the letters "DBA."
(e)
If the general distinguishing number is issued to a corporation,
the dealer's name, as it appears on file with the Secretary of State, shall
be recorded on the application. The corporation must provide verification
that all corporate franchise taxes required under the Texas Business Corporation
Act, Article 2.45, have been paid.
(f)
A licensed wholesale dealer who elects to buy, sell to,
or exchange vehicles with persons other than licensed dealers, must satisfy
the display space requirements of §111.10 of this title (relating to
Established and Permanent Place of Business) and exchange the wholesale dealer
license for a general distinguishing number which is appropriate for the type
of vehicles the dealer wishes to buy, sell, or exchange.
(g)
An application for a general distinguishing number may
be denied if an applicant for such license has committed any act that could
result in license cancellation or revocation under the Transportation Code,
§§503.001,
et seq.
[
(h)
[
[
The license fee for each
general distinguishing number issued during 1996 for a period of less than
one year shall be prorated and only that portion of the 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.]
(1)
[
(2)
[
§111.5. More Than One Location.
(a)
A dealer holding a general distinguishing number for a
particular type of vehicle may operate from more than one location within
the limits of a city, provided each such location is operated by the same
legal entity and meets the requirements of §111.10 of this title (relating
to Established and Permanent Place of Business).
(b)
Additional locations which are not located within the
limits of the same city
of the initial dealership
are required
to obtain a separate license[
(c)
Dealerships that are relocated
from a point outside the limits of a city, or relocated to a point not within
the limits of the same city of the initial location are required to obtain
a separate license and provide separate security unless the location is exempt
from the security requirement by statute.
(d)
A dealer shall notify the
Board in writing within 10 days of the opening, closing or relocation of any
dealership location. Each new location must meet requirements of §111.10
of this title (relating to Established and Permanent Place of Business).
§111.6. Off-site Sales.
Unless otherwise authorized by statute, a dealer is not permitted under
the Transportation Code, §§503.001,
et
seq.
[
§111.7. Security Requirements.
(a)
Unless allowed to operate under §503.033(c)
of the Transportation Code, a
[
(1)
The bond shall be on a form which is prescribed by the
director and approved by the attorney general and issued by a company duly
authorized to do business in the state of Texas.
(2)
The name of all owners shall be shown on the bond
along with the name in which the dealer's license is issued.
(3)
A bond executed by an agent who represents a bonding
company or surety must be supported by an original power of attorney from
the bonding company or surety.
[
In lieu of a surety bond,
the department will accept an assignment of security or an irrevocable letter
of credit on forms approved by the attorney general. An assignment of security
or an irrevocable letter of credit must be executed by a bank, savings and
loan institution, credit union, or other financial institution insured by
an agency of the United States government and authorized to do business in
the State of Texas.]
(b)
[
(c)
Payment of any judgment by
the bonding company shall be immediately reported to the Board in writing.
(d)
Recovery against an alternative
surety source, as described in §503.033(c) of the Transportation Code,
may be made by any person who obtains a court judgment assessing damages and/or
attorneys fees for an act or omission concerning the payment of all valid
bank drafts, including checks, drawn by the dealer for the purchase of motor
vehicles and transfer of good title to each motor vehicle that the dealer
sells. If the person seeking to obtain court judgment is a dealer, that dealer
shall notify the Board of the claim immediately upon filing suit.
(e)
[
(1)
a franchised motor vehicle dealer who is licensed by the
Texas Motor Vehicle Board of the Texas Department of Transportation;
(2)
a franchised motorcycle dealer who is licensed by
the Texas Motor Vehicle Board of the Texas Department of Transportation;
(3)
a house trailer or travel trailer dealer; or
(4)
a trailer/semitrailer dealer.
§111.8. Temporary Cardboard Tags.
(a)
Motor vehicle, travel trailer, and trailer/semitrailer
tags shall be printed on not less than six-ply cardboard with bolt holes to
be horizontally punched on seven-inch centers and vertically punched on 4
1/2-inch centers and the numerals in the expiration date shall not be less
than two inches high. Motorcycle tags shall be printed on not less than six-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 numerals in the expiration
date shall not be less than one inch high. 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: 16 TAC 111.8(b)(1)
Figure 2: 16 TAC 111.8(b)(1)
(2)
Appendix B-1 - Buyer - Initial (design); Appendix
B-2 - Buyer - Initial (instructions);
Figure 3: 16 TAC 111.8(b)(2)
Figure 4: 16 TAC 111.8(b)(2)
(3)
Appendix B-3 - Buyer - Supplemental (design); Appendix
B-4 - Buyer -Supplemental (instructions);
Figure 5: 16 TAC 111.8(b)(3)
Figure 6: 16 TAC 111.8(b)(3)
(4)
Appendix C-1 - Charitable (design); Appendix C-2
- Charitable (instructions).
Figure 7: 16 TAC 111.8(b)(4)
Figure 8: 16 TAC 111.8(b)(4)
(c)
The director may designate the number, size, color, and
placement of logos to be printed on temporary plates and may enter into licensing
agreements with printers for their use.
§111.9. Metal Dealer License Plates and Temporary Cardboard Tags.
(a)
Metal dealer license plates shall be attached to the rear
license plate holder of vehicles on which such plates
are permitted to
be displayed pursuant to Transportation Code, §503.061.
[
(b)
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 window, the tag shall be attached in such a manner
that it is clearly visible and legible when viewed from the rear of the vehicle.
If the vehicle on which a temporary cardboard tag is to be attached displays
Texas multi-year license plates that have not been validated for the current
registration period, the temporary cardboard tag may be displayed in the rear
window as prescribed in this subsection or placed over the rear license plate.
The multi-year plates should not be removed from the vehicle.
(c)
Metal dealer license plates and dealer's
black
temporary cardboard tags may not be displayed on laden commercial vehicles
being operated or moved upon the public streets or highways or on the dealer's
service or work vehicles.
This does not apply to buyer tags or supplemental
buyer tags.
(1)
Examples of vehicles considered as service or work vehicles
are:
(A)
vehicles used for towing or transporting other vehicles;
(B)
vehicles, including light trucks used in connection with
the operation of the dealer's shops or parts department;
(C)
courtesy cars on which courtesy car signs are displayed;
(D)
rental and lease vehicles;
(E)
dealer-owned vehicles loaned to schools; and
(F)
any boat trailer owned by a dealer or manufacturer which
is used to transport more than one boat.
(2)
A light truck is not considered to be a laden
commercial vehicle:
(A)
when mounted with a camper unit; or
(B)
when towing a trailer for recreational purposes.
(3)
As used in this subsection, light truck shall
have the same meaning as defined in the
Transportation Code §541.201.
[
(d)
Each unregistered vehicle being
transported
[
(e)
Metal dealer license plates and temporary cardboard tags
may be displayed only on the type of vehicle for which the general distinguishing
number is issued and for which a dealer is licensed to sell. Non-franchised
dealers may not display metal plates on new motor vehicles.
(f)
A buyer's temporary cardboard tag or supplemental tag
may not be displayed on any vehicle being operated upon the public streets
and highways for which a sale has not been consummated.
(g)
When an unregistered vehicle is sold to another dealer,
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 dealer may display a dealer's temporary
cardboard tag or metal dealer plate on the vehicle. In the event a vehicle
is consigned from one dealer to another, the vehicle shall display the temporary
cardboard tag of the dealer to which such vehicle was consigned.
(h)
A dealer may have printed red initial temporary buyer's
cardboard tags, blue supplemental tags and green charitable organization tags
according to the specifications of Appendices B-1 through C-2.
(i)
A dealer shall maintain a record of all dealer metal plates
issued to that dealer 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.
(j)
The dealer's record as referenced in subsection (i) of
this section, shall be available at the dealer's location during normal working
hours for review by a representative of the
Board.
[
(k)
At the expiration of an initial red buyer's temporary
cardboard tag, a supplemental blue temporary cardboard buyer's tag may be
issued as provided for in the Transportation Code, §503.063.
(l)
A charitable organization tag is valid for a period of
30 days from the date of issuance.
(m)
A person who holds a wholesale
motor vehicle auction general distinguishing number may display its dealer's
temporary cardboard tags on any vehicles which are transported to or from
the licensed auction location by a bona fide employee or agent of the auction.
(n)
A wholesale motor vehicle
auction licensee may only issue a buyer's temporary cardboard tag in connection
with a sale that is made pursuant §503.037(d) of the Transportation Code.
§111.10. Established and Permanent Place of Business.
All dealers must meet the following requirements at each location where
vehicles are sold or offered for sale.
(1)
Office requirements.
(A)
A dealer's office facility must be open to the public
during normal working hours. Normal working hours are defined as at least
four days per week for a continuous period of time not less than four hours
per day between the hours of 8:00 A.M. and 8:00 P.M. The dealer's business
hours for each day of the week must be posted at the main entrance of the
dealer's office, and the owner or a bona fide employee of the dealer must
be at the dealer's location during the posted business hours for the purpose
of buying, selling, exchanging, or leasing vehicles. In the event the owner
or a bona fide employee is not available to conduct business during the dealer's
posted business hours, a separate sign must be posted indicating the date
and time such owner or a bona fide employee will resume dealer operations.
In addition, such dealership must notify the division in writing of any subsequent
change in the dealer's standard business hours.
(B)
With the exception of dealers holding only a wholesale
license, no more than four
retail
dealers may be located in a business
or residential structure.
A structure is a stand-alone building, has
its own exterior walls on all sides, and has been assigned a separate mailing
address by the United States Postal Service.
The structure must be of
sufficient size to accommodate the usual office furniture and equipment, such
as a desk, file cabinet, chairs, etc. As a minimum, the office must be equipped
with a desk and chairs from which the dealer transacts his business and be
equipped with a
separate working telephone instrument, number, and listing
in the dealer's name with a fixed, land-based telephone company, answered
from 8:00 a.m. to 5:00 p.m. weekdays by a bona fide employee, or an answering
service or machine.
[
(C)
Portable-type office structures may qualify, provided
they meet the minimum requirements as set forth herein.
(D)
If a dealer conducts business in conjunction with another
business owned by the same person, the same telephone instrument may be used
for both businesses. However, if the name of the dealer differs from that
of the other business, a separate telephone listing and a separate sign for
the dealer is required.
(E)
A dealer may conduct business in conjunction with another
business not owned by the same person, however, the same telephone number
may not be used by both businesses; the dealer shall have a separate sign,
a separate desk, a separate working telephone instrument, and a separate telephone
number and listing in the name of the dealer. The dealer must either own the
property or have a separate lease agreement from the owner meeting the requirements
of paragraph (4) of this section.
(F)
Unless otherwise authorized by the Transportation
Code, wholesale motor vehicle dealerships established after September 1, 1999,
may not occupy the same structure as retail dealers.
More than one,
but no more than eight dealers who hold only a wholesale license may occupy
the same business structure and conduct their respective dealer operations
under different names, as long as no retail dealers are located in the same
structure; provided, however, each wholesale dealer must, in addition to having
a qualifying dealer's sign conspicuously displayed on the premises, have:
(i)
a separate desk from which that dealer transacts business;
(ii)
a separate working telephone instrument, number, and
listing in the dealer's name with a fixed, land-based telephone company, and,
(iii)
a separate lease agreement meeting the requirements
of paragraph (4) of this section.
(G)
Dealers who hold only a wholesale license will not be
required to be present during normal working hours if they keep on file with
the Motor Vehicle Division, notice of a designated period of time in which
the dealer and the dealer's records will be available for inspection by the
Motor Vehicle Division at the dealer's licensed location. The period of time
will be no less than two consecutive hours, between the hours of 8:00 a.m.
and 5:00 p.m., on any one day of the week, except Saturday or Sunday.
(2)
Sign requirements.
(A)
A dealer shall display a conspicuous sign with letters
at least six inches in height showing the name under which the dealer conducts
business.
Variance of the six-inch lettering size requirement may be
considered upon a showing by the applicant dealer of local zoning requirements
limiting lettering size to less than six inches.
(B)
Such sign must be readable from the address listed on
the application for the dealer license.
(3)
Display space requirements.
(A)
A dealer other than a wholesale dealer shall have an off-street
display area sufficient to display at least five vehicles of the type for
which the general distinguishing number was issued.
(B)
The display area may not be on a public easement, right-of-way,
or driveway, unless the governing body having jurisdiction of the easement,
right-of-way, or driveway expressly consents to such use; provided, however,
that if the easement, right-of-way, or driveway is a part of the state highway
system, such use may only be authorized by a lease agreement entered under
the Transportation Code, §202.052 [
(4)
Lease requirements. If the premises from which
a dealer conducts business is not owned by the licensed dealer, such dealer
shall maintain a lease continuous for a period of one year, and such lease
agreement shall be on a properly executed form containing, but not limited
to, the following information:
(A)
the names of the lessor and lessee;
(B)
the legal description of the property or street address;
and
(C)
the period of time for which the lease is valid.
§111.11. 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 Texas
Motor Vehicle Board of the Texas Department of Transportation;
(2)
fails to maintain an established and permanent place
of business conforming to the
Board's
[
(3)
refuses to permit or fails to comply with a request
by a representative of the
Board
[
(A)
during posted working hours,
as required in §111.10(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
Board
[
(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
Board
[
(7)
fails to notify the
Board
[
(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
Board's
[
(12)
fails to satisfy the notification requirements of
§111.15 [
(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 of the Transportation
Code, §503.001,
et seq.
[
(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
[
(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
Board
[
(20)
fails to remit payment for civil penalties assessed
by the
Board
[
(21)
sells new motor vehicles without a
franchised
dealer's
[
(22)
utilizes a temporary cardboard tag that fails to
meet
Board
[
(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 the Texas Motor Vehicle Commission
Code, Texas Revised Civil Statutes Annotated, Article 4413(36), §6.01(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.
§111.14. Manufacturers License Plates.
(a)
Manufacturers that distribute, manufacture, or assemble
new vehicles may apply for and secure manufacturers license plates for display
on unregistered vehicles.
(b)
Manufacturers license plates must be used exclusively
for the purpose of testing such vehicles or loaning a vehicle to a consumer
in accordance with Texas Motor Vehicle Commission Code, Texas
Revised
Civil Statutes
Annotated
, Article 4413 (36), §6.07
[
§111.15. Record of Sales and Inventory.
(a)
Purchase and sales records. A dealer must keep a complete
record of all vehicle purchases and sales for a minimum period of
24
[
(b)
Content of records. As used in this subsection, a complete
record of vehicle purchases and sales shall include the:
(1)
date of purchase;
(2)
date of sale;
(3)
vehicle identification number;
(4)
name and address of person selling to the dealer;
(5)
name and address of person purchasing from the dealer;
(6)
name and address of selling dealer if vehicle is
offered for sale by consignment; and
(7)
except in a purchase or sale by a wholesale dealer,
[
(8)
copies of any and all documents, forms, and agreements
applicable to a particular sale, including, but not limited to title applications,
work-up sheets, Manufacturer's Certificates of Origin, titles or photocopies
of
the front and back of
titles, factory invoices, sales contracts,
retail installment agreements, buyer's orders, bills of sale, waivers, or
other agreements between the seller and purchaser
; and
[
(9)
dealer's monthly Motor
Vehicle Seller Financed Sales Returns, if any.
(c)
Title assignments. All certificates of title, manufacturer's
certificates, or other evidence of ownership for vehicles offered for sale
or which have been acquired by a dealer must be properly assigned into the
dealer's name. A dealer must provide the purchaser with the receipt for application
for certificate of the title issued by the county tax assessor-collector within
20 working days of the date of sale of any vehicle to be titled or registered
in the state of Texas.
(d)
Notification to the department. Notification of vehicle
sales, as required by the Transportation Code, §503.005,
et seq.
[
(e)
Consignment sales. A dealer offering a vehicle for sale
by consignment shall have a written consignment agreement for the vehicle
or a power of attorney covering the vehicle and shall maintain a record of
each such vehicle by vehicle identification number and owner of each such
vehicle handled on consignment for a minimum of 13 months.
§111.16. Change of Dealer's Status.
(a)
Dealer name change. A dealer's name change shall require
a new bond or a rider to the existing bond reflecting the new dealer name.
The dealer may retain the same general distinguishing number.
(b)
Change of ownership. A dealer shall notify the
Board
[
[
Change of operating status
of a dealer location. A dealer shall notify the department in writing within
10 days of the opening, closing, or relocation of any dealer location. Each
new location must meet the statutory requirements and requirements as specified
in the sections of this chapter.]
(c)
Death of sole proprietor licensee.
If a dealership is operated as a sole proprietorship and the sole proprietor
dies, the surviving spouse of the deceased dealer, or other individual deemed
qualified by the director or the Board, shall submit to the Board a bond rider
adding his or her name to the bond for the remainder of the bond and license
term. That person may continue dealership operations under the current dealer
license until its expiration. In the event the qualifying individual is a
surviving spouse, he or she may change the ownership of the dealership upon
renewal of the license without applying for a new general distinguishing number
by submitting additional information regarding ownership, business background,
and financial responsibility as required by the Board for a new application.
This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State, on
May 21, 1999.
TRD-9902997
Brett Bray
Director
Texas Motor Vehicle Board
Proposed date of adoption: July 22, 1999
For further information, please call: (512) 416-4899
16 TAC §111.12
(Editor's note: The text of the following section proposed for
repeal will not be published. The section may be examined in the offices of
the Texas Motor Vehicle Board or in the Texas Register office, Room 245, James
Earl Rudder Building, 1019 Brazos Street, Austin.)
The repeal is proposed under the Texas Motor Vehicle
Commission Code, §3.06, which provides the Board with authority to adopt
rules as necessary and convenient to effectuate the provisions of the Act
and to govern practice and procedure before the agency.
Motor Vehicle Commission Code §§1.03, 3.08, and 4.01 and Transportation
Code §§503.038, 503.093 and 503.095 are affected by the proposed
repeal.
§111.12. Notice and Appeal.
This agency hereby certifies that the proposal has been
reviewed by legal counsel and found to be within the agency's legal authority
to adopt.
Filed with the Office of the Secretary of State, on
May 21, 1999.
TRD-9902998
Brett Bray
Director
Texas Motor Vehicle Board
Proposed date of adoption: July 22, 1999
For further information, please call: (512) 416-4899
The new section is proposed under the
Texas Motor Vehicle Commission Code, §3.06, which provides the Board
with authority to adopt rules as necessary and convenient to effectuate the
provisions of the Act and to govern practice and procedure before the agency.
Motor Vehicle Commission Code, §§1.03, 3.08, and 4.01 and Transportation
Code, §§503.038, 503.093 and 503.095 are affected by the proposed
new section.
§111.12. GDN Sanction and Qualification Hearing.
(a)
The Board may initiate and conduct a formal administrative
hearing pursuant to the Motor Vehicle Commission Code, Texas Revised Civil
Statutes Annotated, Article 4413(36), §§3.03(b) and 3.08, and Chapter
101 of this title (relating to Practice and Procedure), concerning contested
cases before the Texas Motor Vehicle Board, to determine any of the following
matters:
(1)
whether a licensee has violated any provision of this
chapter or the Transportation Code, §503.001,
et seq.,
(2)
the amount of the civil penalty to be assessed, if
any, from not less than $50 up to $1,000 for each alleged violation of the
provisions of this chapter or the Transportation Code, §503.001,
(3)
whether the licensee's general distinguishing number
should be canceled or suspended, and
(4)
whether an application for a new general distinguishing
number or the renewal of a general distinguishing number should be denied.
(b)
For purposes of assessing civil penalties under this subsection,
each act in violation of any provision of this chapter or the Transportation
Code, §503.001,
et seq.
is a separate
violation, and each day of a continuing violation is a separate violation.
(c)
Notice of any hearing initiated under subsection (a) of
this section may be waived by any person.
This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State, on
May 21, 1999.
TRD-9902996
Brett Bray
Director
Texas Motor Vehicle Board
Proposed date of adoption: July 22, 1999
For further information, please call: (512) 416-4899
Chapter 303.
General Provisions
Subchapter D. Texas Bred Incentive Programs
2.
Programs for Horses
16 TAC §303.93
The Texas Racing Commission proposes an amendment to §303.93
concerning the rules for the Texas Bred Incentive Program for quarter horses.
The amendment was presented to the commission as a rulemaking petition under
16 Texas Administrative Code §307.33 by the Texas Quarter Horse Association,
the officially designated breed registry for quarter horses in Texas. According
to the petition, the amendment is necessary to place the preferable responsibility
on the association for disbursement of awards. The amendment eliminates redundant
provisions and consolidates the payment of all awards into one procedure.
In addition, the amendment clarifies that the accredited Texas- bred incentive
awards are not a part of the purse, but are an added incentive under the statute.
Roselyn Marcus, General Counsel for the Texas Racing Commission, has determined,
based on the petition, that for the first five-year period the amendment is
in effect there will be no fiscal implications for state or local government
as a result of enforcing the proposal.
Ms. Marcus has also determined, based on the petition, that for each of
the first five years the amendment is in effect the public benefit anticipated
as a result of enforcing the proposal will be that there will be the standards
and the responsibility for the calculation and distribution of the incentive
awards will be clear, concise and in conformance with the Texas Racing Act.
There will be no fiscal implications for small businesses. There is no anticipated
economic cost to an individual required to comply with the amendment as proposed.
The proposal has no effect on the state's agricultural, horse breeding, horse
training, greyhound breeding, or greyhound training industries.
Comments on the proposal may be submitted on or before July 15, 1999, to
Roselyn Marcus, General Counsel for the Texas Racing Commission, P.O. Box
12080, Austin, Texas, 78711-2080.
The amendment is proposed under the Texas Civil Statutes, Article
179e, §3.02, which authorize the Commission to adopt rules for conducting
racing with wagering and for administering the Texas Racing Act; §6.08,
which authorizes the Commission to adopt rules relating to the accounting,
audit, and distribution of all amounts set aside for the Texas-bred program;
and §9.01, which authorizes the commission to approve and adopt rules
developed by the breed registries.
The proposed amendment implements Texas Civil Statutes, Article 179e.
§303.93.Quarter Horse Rules.
(a)-(b)
(No change.)
(c)
Procedure for the Payment of ATB Awards.
(1)-(2)
(No change.)
(3)
Procedures for Payment of [
[(A)
Owner's awards shall be noted as purse
supplements in the condition books and programs of all associations conducting
quarter horse racing in Texas. The awards shall be calculated for each association
by the TQHA using historic data. The amounts may vary at each association
and with each condition book at the discretion of the TQHA so as to reflect
as nearly as possible the current level of funds available for disbursement
during the time period that the condition book is applicable. Overpayment
or underpayment of the award funds relative to earnings from handle shall
be remedied during the next race period at the association at which the funds
were generated. The purse supplement for each race shall be paid 50% to first
place, 30% to second place, and 20% to third place finishers.]
(A)
[
(B)
[
(C)
The Act provides that the funds that are
accrued to the awards fund will be paid 40% to owners, 40% to breeders, and
20% to stallion owners. Also, 1.0% of all multiple two and multiple three
wagers are to be paid to the Texas-bred program and are to be paid as awards.
[(D)
Upon discovery of a discrepancy in ownership
of an ATB horse, the TQHA shall have the right to withhold the release of
ATB funds pending a transfer or other successful resolution of the ownership
discrepancy. In the event a horse that is not registered with TQHA as an ATB
horse is claimed to be an ATB horse, such owner shall bear the burden of proof
prior to receipt of any award. In the event a horse registered with TQHA as
an ATB horse finishes first, second or third in a race but is not credited
with the ATB earnings by the association, the horsemen's bookkeeper shall
credit the owners account at the association prior to releasing funds for
that race.]
[(E)
Upon discovery that an ATB horse which
is eligible to receive an ATB purse supplement has been transferred to an
owner different than that of whom TQHA has a record, the association shall
cause the transfer fee of $15 to be deducted from the current owners' account
prior to the issuance of a release for that race award. The association shall
maintain an account into which all transfer fees will be placed pending monthly
distribution of those funds to TQHA. Before deducting a transfer fee from
a horse owner's account, the association shall ensure the proper written authorization
has been obtained to comply with the Act, §6.08(l).]
[(4)
[(A)
(D)
[
This agency hereby certifies that the proposal
has been reviewed by legal counsel and found to be within the agency's legal
authority to adopt.
Filed with the Office of the Secretary of State, on
May 24, 1999.
TRD-9903031
Paula C. Flowerday
Executive Secretary
Texas Racing Commission
Proposed date of adoption: July 27, 1999
For further information, please call: (512) 833-6699
Subchapter C. Racetrack Licenses
1.
General Provisions
16 TAC §305.68
(Editor's note: The text of the following section proposed for
repeal will not be published. The section may be examined in the offices of
the Texas Racing Commission or in the Texas Register office, Room 245, James
Earl Rudder Building, 1019 Brazos Street, Austin.)
The Texas Racing Commission proposes the repeal
of §305.68 concerning Greyhound Racetrack Fees. All license fees are
being consolidated into one rule section. Since this section will be made
a part of new §309.8 this separate rule section is no longer necessary.
Roselyn Marcus, General Counsel for the Texas Racing Commission, has determined
that for the first five-year period the repeal is in effect there will be
no fiscal implications for local government as a result of enforcing the proposal.
As a result of this new rule, Ms. Marcus has determined that by reducing the
fees, the amount paid will only cover the state's costs of regulating the
industry and providing state racing officials at live race meetings. There
should be a zero net fiscal implication to the state.
Ms. Marcus has also determined that for each of the first five years the
repeal is in effect the public benefit anticipated as a result of enforcing
the proposal will be that the associations will have reduced regulatory expenses
through the lower fee rates. In addition, because all the fees will be consolidated
in one section, the information will be easier to find and to understand the
fee calculation. There will be an economic implication for racetrack owners
required to comply with the proposal. The exact economic impact to racetrack
owners will vary, depending on the amount of live racing and simulcasting
each racetrack conducts. With one exception, the Commission anticipates a
reduction in total fees to the racetracks of between 11% and 27%. The currently
operating Class 3 racetrack will see a slight increase in its total fees.
The proposal has no effect on the state's agricultural, horse breeding, horse
training, greyhound breeding, or greyhound training industries.
Comments on the proposal may be submitted on or before July 15, 1999, to
Roselyn Marcus, General Counsel for the Texas Racing Commission, P.O. Box
12080, Austin, Texas, 78711-2080.
The repeal is proposed under the Texas Civil Statutes, Article
179e, §3.02, which authorize the Commission to adopt rules for conducting
racing with wagering and for administering the Texas Racing Act; §5.01,
which authorizes the Commission to impose an annual fee for racetrack licensees;
and §6.18, which authorizes the Commission to impose an annual fee for
racetrack licenses.
The proposal implements Texas Civil Statutes, Article 179e.
§305.68.Greyhound Racetrack Fees.
This agency hereby certifies that the proposal has been
reviewed by legal counsel and found to be within the agency's legal authority
to adopt.
Filed with the Office of the Secretary of State, on
May 24, 1999.
TRD-9903026
Paula C. Flowerday
Executive Secretary
Texas Racing Commission
Proposed date of adoption: July 27, 1999
For further information, please call: (512) 833-6699
16 TAC §305.70
(Editor's note: The text of the following section proposed for
repeal will not be published. The section may be examined in the offices of
the Texas Racing Commission or in the Texas Register office, Room 245, James
Earl Rudder Building, 1019 Brazos Street, Austin.)
The Texas Racing Commission proposes the repeal
of §305.70 concerning Officials' Fees. All fees required to be paid by
racing associations are being consolidated into one rule section. Since this
section will be made a part of new §309.8 this separate rule section
is no longer necessary.
Roselyn Marcus, General Counsel for the Texas Racing Commission, has determined
that for the first five-year period the repeal is in effect there will be
no fiscal implications for local government as a result of enforcing the proposal.
As a result of this new rule, Ms. Marcus has determined that by reducing the
fees, the amount paid will only cover the state's costs of regulating the
industry and providing state racing officials at live race meetings. There
should be a zero net fiscal implication to the state.
Ms. Marcus has also determined that for each of the first five years the
repeal is in effect the public benefit anticipated as a result of enforcing
the proposal will be that the associations will have reduced regulatory expenses
through the lower fee rates. In addition, because all the fees will be consolidated
in one section, the information will be easier to find and to understand the
fee calculation. There will be an economic implication for racetrack owners
required to comply with the proposal. The exact economic impact to racetrack
owners will vary, depending on the amount of live racing and simulcasting
each racetrack conducts. With one exception, the Commission anticipates a
reduction in total fees to the racetracks of between 11% and 27%. The currently
operating Class 3 racetrack will see a slight increase in its total fees.
The proposal has no effect on the state's agricultural, horse breeding, horse
training, greyhound breeding, or greyhound training industries.
Comments on the proposal may be submitted on or before July 15, 1999, to
Roselyn Marcus, General Counsel for the Texas Racing Commission, P.O. Box
12080, Austin, Texas, 78711-2080.
The repeal is proposed under the Texas Civil Statutes, Article
179e, §3.02, which authorize the Commission to adopt rules for conducting
racing with wagering and for administering the Texas Racing Act; and §3.07,
which authorizes the Commission to establish an officials' fee by rule.
The proposal implements Texas Civil Statutes, Article 179e.
§305.70.Officials' Fees.
This agency hereby certifies that the proposal has been
reviewed by legal counsel and found to be within the agency's legal authority
to adopt.
Filed with the Office of the Secretary of State, on
May 24, 1999.
TRD-9903027
Paula C. Flowerday
Executive Secretary
Texas Racing Commission
Proposed date of adoption: July 27, 1999
For further information, please call: (512) 833-6699
16 TAC §305.71
(Editor's note: The text of the following section proposed for
repeal will not be published. The section may be examined in the offices of
the Texas Racing Commission or in the Texas Register office, Room 245, James
Earl Rudder Building, 1019 Brazos Street, Austin.)
The Texas Racing Commission proposes the repeal
of §305.71 concerning horse racetrack fees. All license fees are being
consolidated into one rule section. Since this section will be made a part
of new §309.8 this separate rule section is no longer necessary.
Roselyn Marcus, General Counsel for the Texas Racing Commission, has determined
that for the first five-year period the repeal is in effect there will be
no fiscal implications for local government as a result of enforcing the proposal.
As a result of this new rule, Ms. Marcus has determined that by reducing the
fees, the amount paid will only cover the state's costs of regulating the
industry and providing state racing officials at live race meetings. There
should be a zero net fiscal implication to the state.
Ms. Marcus has also determined that for each of the first five years the
repeal is in effect the public benefit anticipated as a result of enforcing
the proposal will be that the associations will have reduced regulatory expenses
through the lower fee rates. In addition, because all the fees will be consolidated
in one section, the information will be easier to find and to understand the
fee calculation. There will be an economic implication for racetrack owners
required to comply with the proposal. The exact economic impact to racetrack
owners will vary, depending on the amount of live racing and simulcasting
each racetrack conducts. With one exception, the Commission anticipates a
reduction in total fees to the racetracks of between 11% and 27%. The currently
operating Class 3 racetrack will see a slight increase in its total fees.
The proposal has no effect on the state's agricultural, horse breeding, horse
training, greyhound breeding, or greyhound training industries.
Comments on the proposal may be submitted on or before July 15, 1999, to
Roselyn Marcus, General Counsel for the Texas Racing Commission, P.O. Box
12080, Austin, Texas, 78711-2080.
The repeal is proposed under the Texas Civil Statutes, Article
179e, §3.02, which authorize the Commission to adopt rules for conducting
racing with wagering and for administering the Texas Racing Act; §5.01,
which authorizes the Commission to impose an annual fee for racetrack licensees;
and §6.18, which authorizes the Commission to impose an annual fee for
racetrack licenses.
The proposal implements Texas Civil Statutes, Article 179e.
§305.71.Horse Racetrack Fees.
This agency hereby certifies that the proposal has been
reviewed by legal counsel and found to be within the agency's legal authority
to adopt.
Filed with the Office of the Secretary of State, on
May 24, 1999.
TRD-9903028
Paula C. Flowerday
Executive Secretary
Texas Racing Commission
Proposed date of adoption: July 27, 1999
For further information, please call: (512) 833-6699
Subchapter A. General Provisions
1.
General Provisions
16 TAC §309.8
The Texas Racing Commission proposes new §309.8 concerning
the racetrack license fees. The Commission recovers its costs to administer
and enforce the Texas Racing Act and provide officials at live race meetings
by charging the racing association various fees. The proposal consolidates
all these fees currently found in several rule sections. In addition, the
fees have been recalculated to ensure that the Commission collects only enough
fees to cover its regulatory costs. This recalculation has led to a reduction
in the fees.
Roselyn Marcus, General Counsel for the Texas Racing Commission, has determined
that for the first five-year period the new section is in effect there will
be no fiscal implications for local government as a result of enforcing the
proposal. As a result of this new rule, Ms. Marcus has determined that by
reducing the fees, the amount paid will only cover the state's costs of regulating
the industry and providing state racing officials at live race meetings. There
should be a zero net fiscal implication to the state.
Ms. Marcus has also determined that for each of the first five years the
new section is in effect the public benefit anticipated as a result of enforcing
the proposal will be that the associations will have reduced regulatory expenses
through the lower fee rates. In addition, because all the fees will be consolidated
in one section, the information will be easier to find and to understand the
fee calculation. There will be an economic implication for racetrack owners
required to comply with the proposal. The exact economic impact to racetrack
owners will vary, depending on the amount of live racing and simulcasting
each racetrack conducts. With one exception, the Commission anticipates a
reduction in total fees to the racetracks of between 11% and 27%. The currently
operating Class 3 racetrack will see a slight increase in its total fees.
The proposal has no effect on the state's agricultural, horse breeding, horse
training, greyhound breeding, or greyhound training industries.
Comments on the proposal may be submitted on or before July 15, 1999, to
Roselyn Marcus, General Counsel for the Texas Racing Commission, P.O. Box
12080, Austin, Texas, 78711-2080.
The new section is proposed under the Texas Civil Statutes, Article
179e, §3.02, which authorizes the Commission to adopt rules for conducting
racing with wagering and for administering the Texas Racing Act; §3.07,
which authorizes the Commission to establish an officials' fee by rule; §5.01,
which authorizes the Commission to impose an annual fee for racetrack licensees;
§6.18, which authorizes the Commission to impose an annual fee for racetrack
licenses; and §11.011, which authorizes the Commission to adopt rules
to regulate simulcasting.
The proposal implements Texas Civil Statutes, Article 179e.
§309.8.Racetrack License Fees.
(a)
Purpose of Fees. An association shall pay a license fee
to the Commission to pay the Commission's costs to administer and enforce
the Act and provide racing officials for the associations live races
(b)
Live Racing Fee. An association shall pay a live racing
fee for each live race day conducted by the association. The fee is due to
the Commission no later than 10:00 a.m. of the day following the race day.
The live racing fee for a greyhound racing association is $550 per performance.
The live racing fee for a horse racing association is:
(1)
for a Class 1 or Class 2 racetrack, $2075 per day; and
(2)
for a Class 3 or Class 4 racetrack, $650 per day.
(c)
Inactive License Fee. An association that is licensed but
is not conducting live racing or simulcasting shall pay an inactive license
fee. The fee is due to the Commission on September 1 of each year. The inactive
license fee for a greyhound racing association is $25,000. The inactive license
fee for a horse racing association is:
(1)
for a Class 1 racetrack, $25,000;
(2)
for a Class 2 racetrack, $10,000;
(3)
for a Class 3 racetrack, $3,500; and
(4)
for a Class 4 racetrack, $1,250.
(d)
Simulcast Fee. An association shall pay a simulcast fee
for each day on which the association offers a simulcast race for wagering.
The fee is due to the Commission no later than 10:00 a.m. of the day following
the day on which the simulcast is offered. The simulcast fee is $245 per day.
(e)
Adjustment of Fees.
(1)
After the end of the Commission's fiscal year, the executive
secretary shall determine whether the total amount of the fees paid by all
associations, together with the revenues received by the Commission from all
other sources, excluding occupational license fees, is sufficient to pay the
Commission's costs to administer and enforce the Act and to provide racing
officials for the associations' live races.
(2)
If the executive secretary determines the total revenue
from those sources is insufficient to pay those costs, the executive secretary
shall recommend a revised fee structure to the Commission that will generate
the necessary revenue.
(3)
If the executive secretary determines the total revenue
from those sources exceeds the amount needed to pay those costs, the executive
secretary may order a moratorium on any or all license fees to any or all
of the associations. Before entering a moratorium order, the executive secretary
shall develop a formula for providing the moratorium in an equitable manner
among the associations. In developing the formula, the executive secretary
shall consider the amount of excess revenue received by the Commission, the
source of the revenue, the Commission's costs associated with regulating each
association, the Commission's projected receipts for the next fiscal year,
and the Commission's projected expenses during the next fiscal year.
This agency hereby certifies that the proposal has been
reviewed by legal counsel and found to be within the agency's legal authority
to adopt.
Filed with the Office of the Secretary of State, on
May 24, 1999.
TRD-9903025
Paula C. Flowerday
Executive Secretary
Texas Racing Commission
Proposed date of adoption: July 27, 1999
For further information, please call: (512) 833-6699
Subchapter C. Simulcast Wagering
2.
Simulcasting at Horse Racetracks
16 TAC §321.231
(Editor's note: The text of the following section proposed for
repeal will not be published. The section may be examined in the offices of
the Texas Racing Commission or in the Texas Register office, Room 245, James
Earl Rudder Building, 1019 Brazos Street, Austin.)
The Texas Racing Commission proposes the repeal
of §321.231 concerning simulcast fees for horse racing associations.
All fees that horse racing associations are required to pay are being consolidated
into one rule section. Since this section will be made a part of new §309.8
this separate rule section is no longer necessary.
Roselyn Marcus, General Counsel for the Texas Racing Commission, has determined
that for the first five-year period the repeal is in effect there will be
no fiscal implications for local government as a result of enforcing the proposal.
As a result of this new rule, Ms. Marcus has determined that by reducing the
fees, the amount paid will only cover the state's costs of regulating the
industry and providing state racing officials at live race meetings. There
should be a zero net fiscal implication to the state.
Ms. Marcus has also determined that for each of the first five years the
repeal is in effect the public benefit anticipated as a result of enforcing
the proposal will be that the associations will have reduced regulatory expenses
through the lower fee rates. In addition, because all the fees will be consolidated
in one section, the information will be easier to find and to understand the
fee calculation. There will be an economic implication for racetrack owners
required to comply with the proposal. The exact economic impact to racetrack
owners will vary, depending on the amount of live racing and simulcasting
each racetrack conducts. With one exception, the Commission anticipates a
reduction in total fees to the racetracks of between 11% and 27%. The currently
operating Class 3 racetrack will see a slight increase in its total fees.
The proposal has no effect on the state's agricultural, horse breeding, horse
training, greyhound breeding, or greyhound training industries.
Comments on the proposal may be submitted on or before July 15, 1999, to
Roselyn Marcus, General Counsel for the Texas Racing Commission, P.O. Box
12080, Austin, Texas, 78711-2080.
The repeal is proposed under the Texas Civil Statutes, Article
179e, §3.02, which authorize the Commission to adopt rules for conducting
racing with wagering and for administering the Texas Racing Act; §6.18,
which authorizes the Commission to impose an annual fee for racetrack licenses;
and §11.011, which authorizes the Commission to adopt rules to regulate
simulcasting.
The proposal implements Texas Civil Statutes, Article 179e.
§321.231.Simulcasting Fee.
This agency hereby certifies that the proposal has been
reviewed by legal counsel and found to be within the agency's legal authority
to adopt.
Filed with the Office of the Secretary of State, on
May 24, 1999.
TRD-9903029
Paula C. Flowerday
Executive Secretary
Texas Racing Commission
Proposed date of adoption: July 27, 1999
For further information, please call: (512) 833-6699
(formerly Texas Civil Statutes, Article 6686)
]
and Texas
Revised
Civil Statutes
Annotated
, Article
4413 (Texas Motor Vehicle Commission Code), by prescribing rules to regulate
businesses requiring General Distinguishing Numbers.
§502.001
]
et seq.
[
(formerly the Registration
Law, Texas Civil Statutes, Article 6675a-1)
], or the Transportation
Code
§502.001,
[
§502.002,
]
et seq.
[
(formerly the Certificate of Title Law, Texas Civil Statutes,
Article 6687-1)
], at either wholesale or retail, either directly, indirectly,
or by consignment.
from a dealer
] to a purchaser for
consideration.
a
] dealer tag, or [
a
] charitable organization
tag.
department
] for each location from which the person
engages in business. If a dealer consigns more than five vehicles in a calendar
year for sale from a location other than the location for which the dealer
holds a general distinguishing number, the dealer must also hold a general
distinguishing number for the consignment location.
less
] than five vehicles of the same type as herein described
in a calendar year and such vehicles are owned by him and registered and titled
in his name;
(formerly Texas Civil Statutes, Article 6686)
],
and the sections under this chapter;
(formerly
the Texas Litter Abatement Act, Texas Civil Statutes, Article 4477-9a)
],
if the special interest vehicle is at least 12 years old;
(formerly Texas Civil Statutes, Article 6686)
], and sections under this
chapter; and provided that if an auction is conducted of vehicles owned, legally
or equitably, by a person who holds a general distinguishing number, the auction
may be conducted only at a location for which a general distinguishing number
has been issued to that person or at a location approved by the
Board
[
department
] as provided in §111.5 of this title (relating
to More Than One Location); and
department
], if the transaction is not
intended to avoid the terms of the Transportation Code, §§503.001,
(formerly Texas Civil Statutes, Article
6686)
]; or
(formerly Texas Civil Statutes, Article 6686).
]
, or acceptable security as cited
in §111.7 of this title (relating to Assignment of Security and Letter
of Credit), in the name of the applicant
];
(formerly
Texas Civil Statutes, Article 6686 §(a)(1)(1-A)viii).
]
All general distinguishing numbers expiring on March
31, 1996, when renewed, will expire on the last day of randomly assigned calendar
months of the next calendar year. Thereafter, each
]
Each
license will be issued for a period of one year from the date of issuance
of the license. The entire yearly license fee will be due at that time.
(1)
(2)
] The
security requirement
stated in
[
surety bond or other surety required for dealers by
the Department pursuant to
] the Transportation Code, §§503.033
[
(formerly Texas Civil Statutes, Article 6686(a)(1-A)(vii))
] must
be effective, at a minimum, for the period for which the general distinguishing
number will be valid.
(3)
] All dealer metal plates
issued to a licensed dealer shall expire on the same date as the expiration
of the dealer's general distinguishing number.
, and each such location must be bonded
]
and bond
unless the location is exempt by statute.
(formerly Texas Civil Statutes, Article 6686)
] to
sell or offer for sale vehicles from a location other than an established
and permanent place of business which has been approved by the
Board
and for which a general distinguishing number has been issued to that dealer.
[
department.
]
A
] motor vehicle dealer or
motorcycle dealer who does not hold a franchised dealer's license issued by
the Texas Motor Vehicle Board of the Texas Department of Transportation shall
maintain
[
have
] a $25,000 bond conditioned on the dealer's
payment of all valid bank drafts drawn by the dealer for the purchase of motor
vehicles and the dealer's transfer of good title to each motor vehicle the
dealer offers for sale. The bond must be valid for the same period of time
as the dealer's license and is subject to the following:
(b)
(c)
] Recovery against the bond
[
or acceptable security
] may be made by any person who obtains
a court judgment assessing damages
and/or
[
and
] attorneys
fees for an act or omission on which the bond is conditioned.
If the
person seeking to obtain such a court judgment is a dealer, that dealer shall
notify the Board of the claim immediately upon filing suit on the bond.
(d)
] The provisions of
subsection
[
subsections
] (a) [
and (b)
] of this section do
not apply to:
are to be displayed.
]
A copy of the receipt for metal dealer's
plate issued by the Motor Vehicle Division should be carried in the vehicle
and presented to law enforcement personnel upon request.
If the vehicle
on which a metal dealer plate is to be attached displays Texas multi-year
plates that have not been validated for the current registration period, such
multi-year plates shall be removed and safeguarded. The multi-year plates
should be placed back onto the vehicle when it is sold or if the metal dealer
plate is removed from the vehicle.
Uniform Act Regulating Traffic on Highways, Texas Revised Civil
Statutes Annotated, Article 6701d, §2.
]
conveyed
] utilizing the full mount method, the saddle mount method,
the tow bar method, or any combination thereof in accordance with the Transportation
Code,
§§503.068(d),
[
§§503.029,
]
(formerly Texas Revised Civil Statutes
Annotated, Article 6686(a), §6)
], shall have a dealer's temporary
cardboard tag or a buyer's temporary cardboard tag, whichever is applicable,
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."
department.
] Dealer metal plates which cannot be accounted for shall no longer
be valid for use and shall be voided.
working telephone instrument listed in the
name under which the dealer does business.
] If a dealer's office is
located in a residential structure, the office must be completely separated
from and have no direct access into the residential quarters and be in compliance
with all applicable local zoning ordinances and deed restrictions. Such an
office shall not be used as a part of the living quarters and must be readily
accessible to the public without having to pass into or through any part of
the living quarters.
(formerly Texas Civil Statutes,
Article 6673a-3)
]. Such area shall be located at the dealer's address
or contiguous with the dealer's address. The display area must be owned or
leased for the exclusive use by the dealer for a continuous term of not less
than one year. If the display area is in conjunction with other parking facilities,
such area shall be separated by use of barriers under the control of the dealer
so as to prevent its use for any purpose other than a display area. Subject
to approval by the
Board
[
department
], the display area
may be located within a building.
If multiple retail dealers occupy contiguous
locations or are located in the same structure, each dealer must group its
vehicles on display in the same area, marking the area and/or vehicles to
identify the selling dealer.
department's
]
regulations pertaining to office, sign, and display space requirements;
department
] to examine
[
, during normal working hours,
] the [
current and previous
year's
] sales records
required to be kept under §111.15 of
this title (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
[
agreement
] on
the property upon which the dealer's business is located:
department
] and meeting the vehicle
display space requirements of §111.10 of this title (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;
department
] of a change of
physical or mailing
address
and/or
telephone number
within 10 days after such change;
department
] of a dealer's name change or ownership within 10 days after such change;
department's
]
regulations pertaining to the display of such plates and cardboard tags on
unregistered vehicles;
of this title (relating to Record of Sales and Inventory)
];
(formerly
Texas Civil Statutes, Article 6686)
], Texas
Revised
Civil
Statutes
Annotated
, Article 4413(36) (Texas Motor Vehicle Commission
Code), or any rule or regulation of the department, including advertising
rules set out in Chapter 105 of this title (relating to Advertising);
affidavit
] or [
affidavit making
] application for a certified copy of a title;
department
];
department
];
franchise
] license issued by the Texas Motor Vehicle
Board of the Texas Department of Transportation;
department
] specifications as cited in §111.8
of this title (relating to Temporary Cardboard Tags); or
, and may not be used in conjunction with other business activities
such as displayed on a vehicle operated by a representative of the manufacturer
who uses the vehicle to contact dealers
].
13
] months
.
[
, and such record
]
Records reflecting purchases and sales for at least the preceding 13 months
must be available for inspection by a representative of the
Board
[
department
] at the dealer's location.
Records for
prior time periods may be kept off-site at a location within the same county.
Upon receipt of a certified letter from the director or the director's designee,
a dealer must produce copies of specified records by mailing those copies
to the address listed in the request within 15 days.
number and filing date
]
copy
of the Tax Collector's
Receipt for Title Application/Registration/Motor Vehicle Tax, Form 31; [
and
]
.
]
(formerly Texas Civil Statutes, Article 6686, §d)
], shall be an application for certificate of title in the name of the
retail purchaser filed with the appropriate county tax assessor-collector.
When a sales transaction involves a vehicle to be transferred out of state,
the dealer may, in lieu of filing the application for certificate of title
for the purchaser, deliver the properly assigned evidence of ownership to
the purchaser. In such instance, a photocopy [
of such evidence, including
all assignments, shall be documented on a form prescribed by the director,
and
]
of the completed sales tax exemption form for out-of-state
sales approved by the Comptroller's Office shall be
maintained on file
at the dealer's business location.
department
] in writing within ten days if there is any
change of ownership. Upon notification of a change of the majority ownership
interest, the
Board
[
department
] shall cancel the existing
dealer's license and the new owner must qualify for a new general distinguishing
number.
(c)
Part VIII.
Texas Racing Commission
Owners
] Awards.
Any accredited Texas-bred quarter horse that finishes first, second, or third
in a pari-mutuel horse race in Texas (except stakes race restricted to Texas-breds)
shall be entitled to receive
an incentive award, as herein set forth
[
a purse supplement. That purse supplement shall be derived from
the dedicated Texas bred purse funds described in the Act and the rules of
the commission
].
(B)
] Upon the completion of a racing
period not to exceed five racing days, all associations currently conducting
quarter horse racing shall forward to the TQHA offices via telecopy or other
electronic means a copy of the official results from that period of racing.
The official results shall include the date, race number, race conditions,
name of each horse in the race, official order of finish, the owner of record,
and
purse earned from the [
association
] purse account[
, purse amount earned from the ATB fund (if any), and the ATB status as recorded
by the association
].
(C)
] TQHA will verify the ownership
registration, and eligibility of all horses that finish first, second, or
third in a race at the association during the time period. [
Upon completion
of the verification process TQHA shall issue a release to the horsemen's bookkeeper
that authorizes the transfer of ATB funds to the individual owners' accounts.
Simultaneous to the issuance of a release form, TQHA shall cause to be forwarded
to the association the total amount of owners' awards earned during that time
period. Such funds shall be deposited upon receipt into the quarter horse
purse trust account.
]
Procedures for payment of Breeders
and Stallion Owner Awards.]
The Act provides that the funds that are
accrued to the awards fund will be paid 40% to owners, 40% to breeders and
20% to stallion owners. Also, 1.0% of all multiple two and multiple three
wagers are paid to the Texas Bred program and are to be paid as awards. The
procedure for payment of awards is as follows.]
(B)
] TQHA shall maintain records
of all ATB racing stock that earn awards. At the completion of a race period
not to exceed four racing weeks, TQHA shall generate awards checks for the
breeders and the stallion owners corresponding to those ATB racing stock by
apportionment according to the percentages expressed in subparagraph (C) of
this subsection
[
dividing the remaining funds, after payment of
owners awards, in the ratio of 2:1, breeders to stallion owners
]. The
[
breeders and stallion
] awards for each race shall be divided 50%
to first place, 30% to second place, and 20% to third place. Upon receipt
of the ATB funds from the commission for the race period, TQHA shall disburse
the [
breeder and stallion owners
] awards by U.S. mail.
Chapter 305.
Licenses for Pari-mutuel Racing
Chapter 309.
Operation of Racetracks
Chapter 321.
Pari-mutuel Wagering
3.
Simulcasting at Greyhound Racetracks