TITLE 16.ECONOMIC REGULATION

Part 6. TEXAS MOTOR VEHICLE BOARD

Chapter 101. PRACTICE AND PROCEDURE

Subchapter C. ADJUDICATIVE PROCEEDINGS AND HEARINGS

16 TAC §101.62, §101.66

The Texas Motor Vehicle Board of the Texas Department of Transportation proposes amendments to 16 TAC §101.62, Replies to Exceptions, and §101.66, Submission of Amicus Briefs.

The amendment to 16 TAC §101.62 will clarify that the Board will not allow parties to a contested case to file multiple written responses to replies to exceptions, beyond those currently allowed under the Board's rules. The amendment to 16 TAC §101.66 proposes changes to the current deadline for amicus briefs, so that if adopted, the amicus curiae will be required to file its brief no later than the deadline for exceptions to the proposal for decision. The amendment also allows parties to file a written response to the amicus brief no later than the deadline for replies to exceptions to be filed.

The Board proposes an amendment to 16 TAC §101.62, concerning replies to exceptions, because many parties to contested cases before the Board file multiple written responses to arguments brought forth by their opponents in exceptions to the proposal for decision and replies thereto. The Board considers many of these submissions that are filed outside of the rules extraneous and unnecessarily repetitive. Furthermore, the documents clutter the Board's record and make efficient adjudication of contested cases more difficult from a procedural standpoint.

Additionally, the Board proposes an amendment to 16 TAC §101.66, concerning amicus briefs. The amendment will change the deadline to submit amicus brief to the deadline for filing exceptions to the proposal for decision, rather than the current deadline of seven days prior to the Board meeting at which the matter will be considered. Also, the amended rule will provide a deadline for responses to the amicus brief, which will be due no later than the deadline for replies to exceptions. The Board proposes this amendment to address concerns that parties to a contested case do not have sufficient time to reply to new arguments presented in an amicus brief under the current rule. Furthermore, the amendment to this section will allow for an increase in the amount of time that the Board has to review an amicus brief and the responses when considering a contested case.

Brett Bray, Director, Motor Vehicle Division, has determined that for the each year of the first five years these sections are in effect there will be no fiscal implications for state or local government as a result of enforcing or administering these sections.

Mr. Bray has also determined that for each of the first five years the sections are in effect the public benefit anticipated from the proposed amendments will be greater efficiency in the contested case process and greater due process for all parties before the Board. There will be no economic cost to persons required to comply with the sections as proposed for the first five years the proposals are in effect. There will be no significant impact on local economies, overall employment or small businesses as a result of enforcing or administering these sections.

The Board requests comments from any interested person. Comments (16 copies) may be submitted to Brett Bray, Director, Motor Vehicle Board, Texas Department of Transportation, P.O. Box 2293, Austin, Texas 78768, (512) 416-4899. The Motor Vehicle Board will consider adoption of the proposals at its meeting on September 19, 2002. The deadline for receipt of comments on the proposed amendments and new rule is 5:00 p.m. on August 28, 2002.

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.

Texas Motor Vehicle Commission Code §3.03 and §3.08 are affected by the proposed amendments.

§101.62.Replies to Exceptions [ Exception ].

Replies to exceptions may be filed within 10 days after the date of filing such exceptions. It is within the hearing officer's discretion, upon notice to all parties in interest, to extend the time for filing such reply. No further written responses or replies are allowed.

§101.66.Submission of Amicus Briefs.

Any interested party wishing to file an amicus brief [ filed by an interested party in a contested case ] for consideration by the members of the Board [ board ] in their decision regarding a contested case should file its brief no later than the deadline for exceptions [ must be filed with the board at least seven days prior to the date of the board meeting at which the case is scheduled for consideration and decision ]. A party may file one written response to the brief filed by the amicus curiae no later than the deadline for replies to exceptions. Any amicus brief , or response to that brief, not filed within such time will not be considered by the members of the Board [ board ], unless good cause may be shown why this deadline should be waived or extended.

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 June 24, 2002.

TRD-200203945

Brett Bray

Director

Texas Motor Vehicle Board

Proposed date of adoption: September 19, 2002

For further information, please call: (512) 416-4899


Chapter 107. WARRANTY PERFORMANCE OBLIGATIONS

16 TAC §107.10

The Texas Motor Vehicle Board proposes an amendment to 16 TAC §107.10, Warranty Performance Obligations.

The proposed amendment clarifies that a manufacturer, distributor, or converter who reacquires a vehicle under 16 TAC §107.10(4) must re-title the vehicle in Texas before reselling it. Currently, the rule does not expressly impose a re-titling requirement, despite the fact it may be incidental or implied in the reacquisition of the vehicle. As a result of the lack of clarity in the rule, some manufacturers, distributors, and converters re-title reacquired vehicles in Texas, some re-title the vehicles in another state, and others transfer the vehicles by assigning the back of the titles. A re-titling provision will impose uniform requirements on manufacturers, distributors, and converters. In addition, re-titling will facilitate the Board's enforcement of the disclosure requirements and hinder what is known in the industry as "lemon laundering" or "title washing". Furthermore, it will facilitate the branding of titles by the Vehicle Titles and Registration Division.

Brett Bray, Director, Motor Vehicle Division, has determined that for the first five-year period the section is in effect there will be no fiscal implications for state or local governments as a result of enforcing or administering the section.

Mr. Bray has also determined that for each year of the first five years the section is in effect, the anticipated public benefits are that the public will have a clearer understanding of the re-title requirement. The public will also benefit by the Board's enhanced enforcement of the reacquired vehicle disclosure requirements, the improvements in title branding and the hindrances placed on "lemon laundering" or "title washing".

There will be no effect on small businesses. The anticipated economic cost to persons required to comply with the section as amended is indeterminate but some manufacturers, distributors and converters will have some nominal amount of increased cost to re-title vehicles. There will be no impact on local economies or overall employment as a result of this amendment.

Comments, in 16 copies, may be submitted to Brett Bray, Director, Motor Vehicle Division, Texas Department of Transportation, P.O. Box 2293, Austin, Texas 78768, (512) 416-4899. The Motor Vehicle Board will consider adoption of the proposed amendments at its meeting on September 19, 2002. The deadline for receipt of comments on the proposed amendments is 5:00 p.m. on August 28, 2002.

The amendment is proposed under the Texas Motor Vehicle Commission Code §3.06 which provides the Motor Vehicle Board with the authority to adopt rules as necessary and convenient to effectuate the provisions of the Act and to govern practice and procedure before the agency.

Texas Motor Vehicle Commission Code §3.08 and §6.07 are affected by the proposed amendment.

§107.10.Compliance with Order Granting Relief.

Compliance with the Board's order will be monitored by the Board.

(1) - (3) (No change.)

(4) If a manufacturer, converter, or distributor replaces or repurchases a vehicle pursuant to a Board order, reacquires a vehicle to settle a Texas Motor Vehicle Commission Code §3.08(i) or §6.07 complaint, or brings a vehicle into the state of Texas which has been reacquired to resolve a warranty claim in another jurisdiction, the manufacturer, converter, or distributor shall, prior to resale of such vehicle, re-title the vehicle in Texas and issue a disclosure statement on a form provided by or approved by the Board through its director. In addition, the manufacturer, converter, or distributor reacquiring the vehicle shall affix a disclosure label provided by or approved by the Board through its director on an approved location in or on the vehicle. Both the disclosure statement and the disclosure label shall accompany the vehicle through the first retail purchase. Neither the manufacturer, converter, or distributor nor any person holding a license or general distinguishing number issued by the Board under the Code or Chapter 503, Transportation Code, shall remove or cause the removal of the disclosure label until delivery of the vehicle to the first retail purchaser. A manufacturer, converter, or distributor shall provide the Board, in writing, the name, address and telephone number of any transferee, regardless of residence, to whom the manufacturer, distributor or converter, as the case may be, transfers the vehicle within 60 days of each transfer. The selling dealer shall return the completed disclosure statement to the Board within 60 days of the retail sale of a reacquired vehicle. Any manufacturer, converter, or distributor or holder of a general distinguishing number who violates this section is liable for a civil penalty or other sanctions prescribed by the Code. In addition, the manufacturer, converter, or distributor must repair the defect or condition in the vehicle that resulted in the vehicle being reacquired and issue, at a minimum, a basic warranty (12 months/12,000 mile, whichever comes first), except for non-original equipment manufacturer items or accessories, on a form provided by or approved by the Board through its director, which warranty shall be provided to the first retail purchaser of the vehicle.

(5) - (7) (No change.)

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 June 24, 2002.

TRD-200203943

Brett Bray

Director

Texas Motor Vehicle Board

Proposed date of adoption: September 19, 2002

For further information, please call: (512) 416-4899