PART 1. TEXAS DEPARTMENT OF TRANSPORTATION
CHAPTER 8. MOTOR VEHICLE DISTRIBUTION
The Texas Department of Transportation (department) adopts new §8.87, License Terms and Fees, and new §8.88, Transition Period for the Issuance of Two-Year Licenses, and amendments to §8.133, General Distinguishing Number, all concerning license terms. New §8.87 and §8.88 and amendments to §8.133 are adopted without changes to the proposed text as published in the April 11, 2008, issue of the Texas Register (33 TexReg 2912) and will not be republished.
EXPLANATION OF ADOPTED AMENDMENTS AND NEW SECTIONS
The adopted amendments and new sections are necessary to give effect to House Bill 2651, 80th Legislature, Regular Session, 2007. Licenses issued by the department to new and independent motor vehicle dealers, motor vehicle manufacturers, distributors, converters, their representatives, lessors, and lease facilitators currently expire one year after the date of issuance. HB 2651 removes the annual renewal requirement for motor vehicle distribution licenses and authorizes the department to set the period for which licenses are valid.
New §8.87, License Terms and Fees, states that the license period is two years for all licenses, general distinguishing numbers, and license plates issued by the department under Occupations Code, Chapter 2301 or Transportation Code, Chapter 503 unless otherwise provided for by statute. Due to an increase in requirements over the years, the application processing time has increased, which has resulted in backlogs for the issuance and renewals of licenses. A two-year license term will reduce the renewal backlog and associated call volume. Reduction of the renewal workload will allow the department to provide better service to the public and process license renewals in a more timely manner.
New §8.87 incorporates the existing requirements of §8.133(i)(2) that metal plates issued by the department in connection with a license expire on the same date as the license. The language is transferred from Subchapter E, General Distinguishing Numbers, to Subchapter C, Licenses, Generally, to clarify that the requirements apply to all licensees, including manufacturers who may have manufacturer license plates but do not hold general distinguishing number licenses. The two-year license term will not apply to personalized prestige dealer license plates, also known as vanity plates, issued under Transportation Code, §503.0615. Those plates are issued by county tax assessor collectors under the authority of the Vehicle Titles and Registration Division of the department and are not affected by these amendments.
New §8.87 further clarifies that the annual license fees required by statute will be multiplied by the number of years in the license term to determine the amount of the fee, which is due at the time of application. Fees are not increased, although licensees will be required to pay two years of license fees at one time.
New §8.88, Transition Period for the Issuance of Two-Year Licenses, describes how the transition from one to two-year license periods will be accomplished. During the first year of implementation, the department will randomly select one-half of the licensees whose license will be renewed for a one-year term. Prior to renewal of those licenses, the department will notify the licensees of their license term. The phased implementation will balance the renewal workload between the years in the two-year license cycle. If an application for a new license is received by the department after August 31, 2008, the licensee will be issued a two-year term. This section automatically expires on December 31, 2009 by which time the transition to the two-year license term will have been completed.
Amendments to §8.133, General Distinguishing Number, remove specific references to a one-year license term. Language clarifying the term of a license and requiring payment of a license fee in full at the time of application is transferred to new §8.87. The language is transferred because the requirements apply to all licensees as opposed to only general distinguishing number license holders. Language regarding the issuance and expiration of dealer metal plates is also transferred to new §8.87. The metal plates issued by the division will be issued for the same period as the license.
In addition, the amendments correct citations in §§8.133(b)(8), 8.133(c)(1), and 8.133(f). The amendments also correct formatting and punctuation errors in §8.133(c)(5) and (6).
COMMENTS
No comments on the proposed amendments and new sections were received.
Subchapter C. LICENSES, GENERALLY
STATUTORY AUTHORITY
The new sections are adopted under Transportation Code, §201.101, which provides the Texas Transportation Commission (commission) with the authority to establish rules for the conduct of the work of the department, and more specifically, Occupations Code, §2301.005 and §2301.155 and Transportation Code, §503.002, which authorize the commission to establish rules for motor vehicle distribution licensees and Occupations Code, §2301.301 and Transportation Code, §503.010, which authorize the commission to establish the term of the licenses to which the new rules apply.
CROSS REFERENCE TO STATUTE
Occupations Code, Chapter 2301, Subchapter G, and Transportation Code §§503.007, 503.008, 503.010, and 503.011.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on June 27, 2008.
TRD-200803370
Bob Jackson
General Counsel
Texas Department of Transportation
Effective date: July 17, 2008
Proposal publication date: April 11, 2008
For further information, please call: (512) 463-8683
STATUTORY AUTHORITY
The amendments are adopted under Transportation Code, §201.101, which provides the Texas Transportation Commission (commission) with the authority to establish rules for the conduct of the work of the department, and more specifically, Occupations Code, §2301.005 and §2301.155 and Transportation Code, §503.002, which authorize the commission to establish rules for motor vehicle distribution licensees and Occupations Code, §2301.301 and Transportation Code, §503.010, which authorize the commission to establish the term of the licenses to which the new rules apply.
CROSS REFERENCE TO STATUTE
Occupations Code, Chapter 2301, Subchapter G, and Transportation Code §§503.007, 503.008, 503.010, and 503.011.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on June 27, 2008.
TRD-200803371
Bob Jackson
General Counsel
Texas Department of Transportation
Effective date: July 17, 2008
Proposal publication date: April 11, 2008
For further information, please call: (512) 463-8683
SUBCHAPTER B. MOTOR VEHICLE REGISTRATION
The Texas Department of Transportation (department) adopts amendments to §17.28, concerning specialty license plates, symbols, tabs, and other devices, and new §17.40, marketing of specialty license plates through a private vendor, all concerning motor vehicle registration. The amendments to §17.28 and new §17.40 are adopted with changes to the proposed text as published in the April 11, 2008, issue of the Texas Register (33 TexReg 2916).
EXPLANATION OF ADOPTED AMENDMENTS AND NEW SECTION
The adopted amendments and new section are necessary to implement the provisions of House Bills 191, 2282, and 2627 of the 80th Legislature, Regular Session, 2007; and to update or clarify existing information.
House Bill 191 amended Transportation Code, §502.184 and Transportation Code, Chapter 504 to standardize the fees assessed for specialty license plates issued to active or former members of the United States Armed Forces and their surviving spouses.
House Bill 2282 amended Transportation Code, Chapter 504 by adding new §504.316, which requires the department to issue specialty license plates to persons who have received the Legion of Merit medal and provides the fees associated with issuance of Legion of Merit License Plates.
House Bill 2627 amended Transportation Code, §504.701 and §504.702 by decreasing the amount of deposit that must be submitted to the department by a sponsoring entity prior to manufacture of specialty license plates authorized by a law. The deposit amount was decreased from $15,000 to $8,000.
Amendments to §17.28(b)(2) clarify that the license plate fee for the Legion of Merit specialty license plate is the same amount as the fee for other military specialty license plates. House Bill 2282, enacted during the regular session of the 80th Legislature, added Transportation Code, §504.316, which provides for the issuance of license plates for Legion of Merit medal recipients and sets the fees for those plates. House Bill 191 amended several provisions relating to specialty plates that are authorized for certain types of military service and honors and established a general structure for fees charged for those plates. Section 14 of House Bill 191 provides that, in the case of an inconsistency between the provisions of that bill and another bill that was enacted during the regular session that relates to fees for military specialty plates, House Bill 191 controls. The fee provision of House Bill 2282 conflicts with the fee structure provided under House Bill 191; under Section 14 of House Bill 191, the fee structure provided by that bill controls. The language added in the rule expressly provides the statutory authority for charging a fee that is different than the fee provided by Transportation Code, §504.316.
New subparagraph (C) of §17.28(b)(2) states the existing policy that the fee for specialty plates is non-refundable after the application is submitted and the issuance is approved by the department. The application fee is used to offset the administrative costs of processing the application. Subsequent subparagraphs are relettered.
Amendments to §17.28(b)(3), (d)(2)(B), and (d)(3)(C) address changes related to the Legion of Valor license plates. Legion of Valor is deleted from the list of specialty license plates that require an application to be submitted to the department to allow those plates to be processed by the county tax assessor-collector offices. This change makes applying for those plates more convenient. Legion of Valor license plates are also deleted from the list of license plates that expire in March of each year. This change allows the department to stagger the expiration of Legion of Valor license plates to distribute the work more evenly throughout the year.
In response to a comment received, new paragraph (4) of §17.28(b), Gift plates, is added to provide the existing procedure for purchasing a general distribution specialty license plate as a gift for another person.
Amendments to §17.28(d)(2)(C) revise the language of that provision to delete Texas Guard license plates from the list of license plates that expire in June of each year. This change allows the department to stagger the expiration of Texas Guard license plates to distribute the work more evenly throughout the year. Subsequent subparagraphs are relettered.
Amendments to redesignated subparagraph (E) of §17.28(d)(3) clarify that the six and eight year periods for the issuance of new specialty license plates at no charge is calculated from the date of issuance of personalized license plates and other specialty license plates, respectively. This language is added to eliminate confusion regarding whether the six and eight year periods for the issuance of new specialty license plates begins to run from the date of issuance or on the one year anniversary of the date of issuance.
Amendments to §17.28(e)(1)(C) and (2) delete references to Transportation Code, §504.851 as the procedure for the transfer of new specialty license plates created under Transportation Code, §504.851 is being adopted in new §17.40(f). The deletion of former subparagraph (A) of §17.28(e)(2) removes the ability to transfer specialty license plates issued under Transportation Code, Chapter 504, Subchapters B and G, between persons. Currently, there is little demand for this service, and the procedure is burdensome. This prohibition is combined with the substance of former subparagraph (B) of §17.28(e)(2) into new subparagraph (A) of §17.28(e)(2).
Amendments to §17.28(f)(2) clarify that interim replacement tags issued for non-personalized specialty license plates will include the new specialty license plate number and not the number on the license plate that has been lost, destroyed, or mutilated. At the time the replacement tags are issued, the department invalidates the lost, destroyed, or mutilated non-personalized license plate number and updates its records to reflect the new license plate number. If the lost, destroyed, or mutilated license plate number is personalized, the same personalized license plate number will be shown on the interim replacement tag. Additionally, the term "cardboard" has been deleted to allow the department discretion to select the material from which the interim replacement tags are made.
To conform to the changes made by House Bill 2627, the amendments to §17.28(g)(2)(A) and (C)(ii) change the amount of the deposit required prior to manufacture of new specialty license plates from $15,000 to $8,000.
Existing §17.28(j), Marketing of specialty license plates through a private vendor, is repealed and new language regarding the marketing of specialty license plates is adopted in new §17.40. The substance of existing §17.28(j) is redundant of Transportation Code provisions and is, therefore, unnecessary.
New §17.40, Marketing of specialty license plates through a private vendor, is adopted to address provisions for the specialty license plate vendor program. Transportation Code, §504.851 requires the department to contract with a vendor to provide for the marketing and sale of specialty and personalized license plates. The statute requires that the department establish by rule the fees for the issuance of the vendor-marketed specialty and personalized plates. The fee schedule allows vehicle owners to purchase vendor-designed license plates for multiple years by paying at the time of purchase all specialty plate fees, including the applicable renewal fees, at a price that is lower than the total of the corresponding annual fees. The fee schedule includes fees for one-year, five-year, or ten-year periods. Owners of multi-year specialty license plates must pay all statutorily prescribed registration fees as required by Transportation Code, Chapter 502 to use the plates on a motor vehicle. The fee for the issuance of a vendor-marketed specialty license plate will range from $95 and $795 based on the category and time span of license plate.
New §17.40(a), Refunds, adds a refund policy for vendor-marketed specialty license plates that is identical to the policy for specialty license plates approved by the department.
New §17.40(b), Multi-year, vendor-marketed specialty license plates, explains that the vendor will directly market specialty license plates that may be purchased for one-year, five-year, and ten-year periods. The multi-year options will allow the vendor to reduce the cost of the license plate as compared to the purchase of similar plates annually by eliminating some of the administrative duties. The issuance of multi-year specialty license plates does not effect the requirement that a person must pay the registration fees under Transportation Code, Chapter 502 to use the plates on a motor vehicle.
New §17.40(c), Payment of fees, provides that the specialty license plate fee is paid directly to the vendor. The language requires that all multi-year specialty license plate fees be paid at one time to benefit from the reduced fee. The language clarifies that specialty license plate fees are in addition to the annual registration fees.
New §17.40(d), License plate categories and associated fees, provides the categories of specialty license plates that will be marketed by the vendor and the schedule of fees for each category. The vendor will offer three categories of specialty license plates: Color/Themed, Limited Edition/Special Event, and Luxury/Prestige license plates. At the time of purchase, the purchaser will have the option of paying the annual specialty license plate fee for a period of one, five, or ten years. The multi-year fees are designed to encourage customers to pay for multiple years at the initial purchase by passing on cost savings. The department resources associated with maintaining an annual license plate decrease significantly with multi-year license plates. The fee structure developed by the vendor will enable the department to recoup all costs associated with implementation of the program, compensate the vendor for start up costs and the risk incurred by this venture, and allow the vendor to make a profit if enough vendor-marketed plates are purchased. To assist with the development of the fee structure, the vendor commissioned nationally recognized research firms to conduct two studies. The firms conducted a poll of Texans aged 18 and above from various cities who either owned a vehicle that had been purchased in the previous three years or who indicated an intent to purchase a vehicle in the next 12 months. Of the Texans polled, 26 percent indicated that they were amenable to paying the adopted fees for specialty license plates. Of those who were amenable to paying the adopted fees, 80 percent indicated that they would consider giving a specialty license plate as a gift. The vendor recommended fee schedules for the specialty license plates that research indicated would maximize profits for the vendor, and in turn would maximize revenues for the state, from the sale of vendor-marketed plates. The fees reflect the vendor's recommendations.
New §17.40(e), Replacement, adds a replacement policy for vendor-marketed specialty license plates that is the same as the replacement policy for specialty license plates approved by the department. The application for replacement must be made directly to a county tax assessor-collector. Upon application and payment of the statutory fee for replacement of a personalized specialty license plate, as provided in Transportation Code, §504.101(d), an interim temporary tag will be issued by the county tax assessor-collector for use on the vehicle until the vendor-marketed specialty license plate has been remanufactured.
New §17.40(f), Transfer of vendor-marketed specialty license plates, adds a transfer policy for vendor-marketed specialty license plates that tracks the provisions of §17.28(e) relating to the transfer policy for specialty plates approved by the department. The language provides an explanation regarding when vendor-marketed specialty license plates may be transferred between vehicles and prohibits the transfer of vendor-marketed specialty license plates between owners.
New §17.40(g), Gift plates, adds a policy for the purchase of vendor-marketed specialty license plates as a gift and the use of the plates on a motor vehicle. The ability to give plates will expand the market of the plates, thus increasing the state's revenue. The procedure includes information that will track the name of the recipient and the vehicle identification of the recipient's vehicle. For clarification, new §17.40(g)(1) changes the word "signs" to "submits" since these plates may be sold over the Internet.
COMMENTS
One comment was received from the Texas Commission on the Arts that neither supported nor objected to new §17.40.
Comment: The commenter requested clarification regarding whether gift plates, as addressed in new §17.40(g), were also available for general distribution specialty license plates issued under Transportation Code, Chapter 504, Subchapter G, or were only available for vendor-marketed specialty license plates issued in accordance with §17.40(g).
Response: The provisions for gift plates proposed in §17.40(g) do not apply to general distribution specialty license plates issued under Transportation Code, Chapter 504, Subchapter G. The provisions apply only to vendor-marketed specialty license plates issued in accordance with this section. However, under current department practice a person may place an order for a general distribution specialty license plate in the name of a person who is to receive the gift plate and provide the vehicle information for the vehicle on which the license plate will be displayed. This current practice is being added as §17.28(b)(4).
Comment: The commenter also requested clarification on whether only Texas residents were eligible to receive gift plates or if out-of-state residents may receive a gift plate if the statement required in §17.40(g)(1)(C) is provided stating the gift plate will not be displayed on a vehicle.
Response: Non-Texas residents may not receive a vendor-marketed specialty license plate as a gift. Transportation Code, §502.002 authorizes issuance of Texas license plates that may be used on a motor vehicle only to Texas residents. For some general distribution specialty license plates, a souvenir license plate may be obtained as a gift for an out-of-state resident, in accordance with Transportation Code, §504.003.
In addition, §17.40(d)(1), (2), and (3) is changed to no longer provide the one-, five- and ten-year license plate prices in list form with the (A), (B), and (C) separators. These changes are made to avoid confusion with the way the pricing categories are worded in the contract.
Section 17.40(d)(2) is also changed to reflect the correct number of alphanumeric characters that may be displayed on Limited Edition or Special Event license plates. The correct number is up to six alphanumeric characters.
Lastly, §17.40(g)(1) is corrected to eliminate the requirement that a person must submit a signed statement when applying for a gift plate since a majority of applications for the vendor-marketed license plates will be processed via the Internet. The requirement for submission of a signed statement unnecessarily complicates the application process and, therefore, is being removed.
STATUTORY AUTHORITY
The amendments and new section are adopted under Transportation Code, §201.101, which provides the Texas Transportation Commission with the authority to establish rules for the conduct of the work of the department, and more specifically, Transportation Code, §504.004, which authorizes the commission to adopt rules to administer issuance of specialty license plates, symbols, tabs, or other devices and Transportation Code, §504.851, which authorizes the commission to establish fees for the issuance or renewal of vendor-marketed license plates.
CROSS REFERENCE TO STATUTE
Transportation Code, §§502.184, 504.3015, 504.316, 504.701, 504.702, 504.801, 504.851, and 504.852.
§17.28.Specialty License Plates, Symbols, Tabs, and Other Devices.
(a) Purpose and Scope. Transportation Code, Chapter 504, charges the department with the responsibility of issuing a plate or plates, symbols, tabs, or other devices that, when attached to a vehicle as prescribed by the department, act as the legal registration insignia for the period issued. In addition, Transportation Code, Chapter 504, charges the department with providing specialty license plates, symbols, tabs, and other devices. For the department to perform these duties efficiently and effectively, this section prescribes the policies and procedures for the application, issuance, and renewal of specialty license plates, symbols, tabs, and other devices, through the county tax assessor-collectors, and establishes application fees, expiration dates, and registration periods for certain specialty license plates.
(b) Initial application for specialty license plates, symbols, tabs, or other devices.
(1) Application Process.
(A) Procedure. An owner of a vehicle registered as specified in §17.22 of this subchapter who wishes to apply for a specialty license plate, symbol, tab, or other device must do so on a form prescribed by the director.
(B) Form requirements. The application form shall at a minimum require the name and complete address of the applicant.
(2) Fees and Documentation.
(A) The application must be accompanied by the prescribed registration fee, unless exempted by statute.
(B) The application must be accompanied by the statutorily prescribed specialty license plate fee. In accordance with Acts of the 80th Legislature, Regular Session, 2007, Chapter 1166, Section 14, the fees for Legion of Merit license plates issued under Transportation Code, §504.316 are determined under Transportation Code, §504.3015(a). If a registration period is greater than 12 months, the expiration date of a specialty license plate, symbol, tab, or other device will be aligned with the registration period and the specialty plate fee will be adjusted to yield the appropriate fee. If the statutory annual fee for a specialty license plate is $5.00 or less, it will not be prorated.
(C) Specialty license plate fees will not be refunded after an application is submitted and the department has approved issuance of the license plate.
(D) The application must be accompanied by prescribed local fees or other fees that are collected in conjunction with registering a vehicle, with the exception of vehicles bearing license plates that are exempt by statute from these fees.
(E) The application must include evidence of eligibility for any specialty license plates. The evidence of eligibility may include, but is not limited to:
(i) an official document issued by a governmental entity;
(ii) a letter issued by a governmental entity on that agency's letterhead;
(iii) discharge papers; or
(iv) a death certificate.
(F) Initial applications for license plates for display on Exhibition Vehicles must include a photograph of the completed vehicle.
(3) Place of application. Applications for specialty license plates may be made directly to the county tax assessor-collector, except that applications for the following license plates must be made directly to the department:
(A) Congressional Medal of Honor;
(B) County Judge;
(C) Federal Administrative Law Judge;
(D) State Judge;
(E) State Official;
(F) U.S. Congress--House;
(G) U.S. Congress--Senate; and
(H) U.S. Judge.
(4) Gift plates.
(A) A person may purchase general distribution specialty license plates as a gift for another person if the purchaser submits an application for the specialty license plates that provides:
(i) the name and address of the person who will receive the plates; and
(ii) the vehicle identification number of the vehicle on which the plates will be displayed.
(B) To be valid for use on a motor vehicle, the recipient of the plates must file an application with the county tax assessor-collector and pay the statutorily required registration fees in the amount as provided by Transportation Code, Chapter 502, and this subchapter.
(c) Initial issuance of specialty license plates, symbols, tabs, or other devices.
(1) Issuance. On receipt of a completed initial application for registration, accompanied by the prescribed documentation and fees, the department will issue specialty license plates, symbols, tabs, or other devices to be displayed on the vehicle for which the license plates, symbols, tabs, or other devices were issued for the current registration period. If the vehicle for which the specialty license plates, symbols, tabs, or other devices are issued is currently registered, the owner must surrender the license plates currently displayed on the vehicle, along with the corresponding license receipt, before the specialty license plates may be issued.
(2) Number of plates issued.
(A) Two plates. Unless otherwise listed in subparagraph (B) of this paragraph, two specialty license plates, each bearing the same license plate number, will be issued per vehicle.
(B) One plate. One license plate will be issued per vehicle for all motorcycles and for the following specialty license plates:
(i) Antique Vehicle;
(ii) Classic Travel Trailer;
(iii) Cotton Vehicle;
(iv) Disaster Relief;
(v) Forestry Vehicle;
(vi) Golf Cart;
(vii) Log Loader;
(viii) Military Vehicle; and
(ix) Parade.
(C) Registration number. The identification number assigned by the military may be approved as the registration number instead of displaying Military Vehicle license plates on a former military vehicle.
(3) Validation stickers and tabs. Instead of license plates, the department will issue validation stickers and tabs to the following vehicles.
(A) Classic Motor Vehicles. Validation stickers will be issued for display on vehicles with existing Texas license plates that were originally issued the same year as the model year of a Classic Motor Vehicle.
(B) Certain Exhibition Vehicles. Validation stickers or tabs will be issued for display on vehicles with existing Texas license plates that were originally issued the same year as the model year of the Exhibition Vehicle.
(4) Assignment of plates.
(A) Title holder. Unless otherwise exempted by law or this section, the vehicle on which specialty license plates, symbols, tabs, or other devices is to be displayed shall be titled in the name of the person to whom the specialty license plates, symbols, tabs, or other devices is assigned, or a certificate of title application shall be filed in that person's name at the time the specialty license plates, symbols, tabs, or other devices are issued.
(B) Non-owner vehicle. If the vehicle is titled in a name other than that of the applicant, the applicant must provide evidence of having the legal right of possession and control of the vehicle.
(C) Leased vehicle. In the case of a leased vehicle, the applicant must provide a copy of the lease agreement verifying that the applicant currently leases the vehicle.
(5) Classification of golf carts. If a golf cart does not meet the statutorily prescribed criteria for Golf Cart license plates but must be registered, its registration classification will be determined by whether it is designed as a 4-wheeled truck, a 4-wheeled passenger vehicle, or a 3-wheeled motorcycle.
(6) Number of vehicles. An owner may obtain specialty license plates, symbols, tabs, or other devices for an unlimited number of vehicles, unless the statute limits the number of vehicles for which the specialty license plate may be issued.
(7) Other classes of vehicle. A specialty license plate design may be varied to accommodate its use on motor vehicles other than passenger cars and light trucks. The department will determine whether a specialty license plate will be made available for one or more classes of vehicles in addition to passenger cars and light trucks and, if so, to which class or classes. In making this determination, the department will consider the cost of redesigning a specialty license plate to accommodate another class of vehicle, the potential demand for that specialty license plate on that class of vehicle, and other factors bearing on the potential cost or benefit to the public of expanding the availability of a specialty license plate.
(8) Personalized plate numbers.
(A) Issuance. The director will issue a personalized license plate number subject to the exceptions set forth in this paragraph.
(B) Character limit. A personalized license plate number may contain no more than six alpha or numeric characters or a combination of characters. Depending upon the specialty license plate design and vehicle class, the number of characters may vary. Spaces, hyphens, periods, the International Symbol of Access, or silhouettes of the state of Texas may be used in conjunction with the license plate number.
(C) Personalized plates not approved. A personalized license plate number will not be approved by the director if the alpha-numeric sequence:
(i) conflicts with the department's current or proposed regular license plate numbering system;
(ii) would violate §17.22(c)(3) of this chapter, as determined by the executive director; or
(iii) is currently issued to another owner.
(D) Classifications of vehicles eligible for personalized plates. Unless otherwise listed in subparagraph (E) of this paragraph, personalized plates are available for all classifications of vehicles.
(E) Categories of plates for which personalized plates are not available. Personalized license plate numbers are not available for display on the following specialty license plates:
(i) Amateur Radio (other than the official call letters of the vehicle owner);
(ii) Antique Motorcycle;
(iii) Antique Vehicle;
(iv) Apportioned;
(v) Congressional Medal of Honor;
(vi) Cotton Vehicle;
(vii) Disabled Veteran;
(viii) Disaster Relief;
(ix) Farm Trailer (except Go Texan II);
(x) Farm Truck (except Go Texan II);
(xi) Farm Truck Tractor (except Go Texan II);
(xii) Fertilizer;
(xiii) Forestry Vehicle;
(xiv) Log Loader;
(xv) Machinery;
(xvi) Parade;
(xvii) Permit;
(xviii) Rental Trailer;
(xix) Soil Conservation; and
(xx) Texas Guard.
(F) Fee. The statutorily prescribed personalized license plate fee will be charged in addition to any prescribed specialty license plate fee.
(G) Priority. Once a personalized license plate number has been assigned to an applicant, the owner shall have priority to that number for succeeding years if a timely renewal application is submitted to the county tax assessor-collector each year in accordance with subsection (d) of this section.
(d) Specialty license plate renewal.
(1) Renewal deadline. If a personalized license plate is not renewed within 60 days after its expiration date, a subsequent renewal application will be treated as an application for new personalized license plates.
(2) Length of validation. With the following exceptions, all specialty license plates, symbols, tabs, or other devices shall be valid for 12 months from the month of issuance or for a prorated period of at least 12 months coinciding with the expiration of registration.
(A) Five year period. The following license plates and registration numbers are issued for a five-year period:
(i) Antique Vehicle and Antique Motorcycle license plates and Antique tabs;
(ii) Military Vehicle license plates and registration numbers;
(iii) Parade license plates; and
(iv) Foreign Organization license plates.
(B) March expiration dates. The following license plates expire each March 31:
(i) Congressional Medal of Honor;
(ii) Cotton Vehicle;
(iii) Disaster Relief.
(C) June expiration dates. Honorary Consul license plates expire each June 30.
(D) September expiration dates. Log Loader license plates expire each September 30.
(E) December expiration dates. The following license plates expire each December 31:
(i) County Judge;
(ii) Federal Administrative Law Judge;
(iii) State Judge;
(iv) State Official;
(v) U.S. Congress--House;
(vi) U.S. Congress--Senate; and
(vii) U.S. Judge.
(F) Except as otherwise provided in this paragraph, if a vehicle's registration period is other than 12 months, the expiration date of the specialty license plate, symbol, tab, or other device will be set to align it with the expiration of registration.
(3) Renewal.
(A) Renewal Notice. Approximately 60 days before the expiration date of a specialty license plate, symbol, tab, or other device, the department will send each owner a renewal notice that includes the amount of the specialty plate fee and the registration fee.
(B) Return of Notice. The owner must return the fee and any prescribed documentation to the tax assessor-collector of the county in which the owner resides, except that the owner of a vehicle with one of the following license plates must return the documentation and specialty license plate fee directly to the department and submit the registration fee to the county tax assessor-collector:
(i) County Judge;
(ii) Federal Administrative Law Judge;
(iii) State Judge;
(iv) State Official;
(v) U.S. Congress--House;
(vi) U.S. Congress--Senate; and
(vii) U.S. Judge.
(C) Return of documents. The owner of a vehicle with Congressional Medal of Honor license plates must return the documentation and specialty license plate fee, if any, directly to the department.
(D) Expired plate numbers. The department will retain a specialty license plate number for 60 days after the expiration date of the plates if the plates are not renewed on or before their expiration date. After 60 days the number may be reissued to a new applicant. All specialty license plate renewals received after the expiration of the 60 days will be treated as new applications.
(E) Issuance of validation insignia. On receipt of a completed license plate renewal application and prescribed documentation, the department will issue registration validation insignia as specified in §17.22 of this subchapter, except for those plates listed in clauses (i) or (ii) of this subparagraph or unless this section or other law requires the issuance of new license plates to the owner.
(i) New license plates will be issued when the following specialty license plates are renewed:
(I) Antique Motorcycle;
(II) Antique Vehicle;
(III) Congressional Medal of Honor;
(IV) County Judge;
(V) Disaster Relief;
(VI) Federal Administrative Law Judge;
(VII) Military Vehicle;
(VIII) Parade;
(IX) State Judge;
(X) State Official;
(XI) U.S. Congress--House;
(XII) U.S. Congress--Senate; and
(XIII) U.S. Judge.
(ii) New license plates shall be issued at no extra cost every six years from the date of issuance for renewed personalized license plates, and every eight years from the date of issuance for other specialty license plates, in accordance with the provisions of §17.22 of this subchapter.
(F) Lost or destroyed renewal notices. If a renewal notice is lost, destroyed, or not received by the vehicle owner, the specialty license plates, symbol, tab, or other device may be renewed if the owner provides acceptable personal identification along with the appropriate fees and documentation. Failure to receive the notice does not relieve the owner of the responsibility to renew the vehicle's registration.
(e) Transfer of specialty license plates.
(1) Transfer between vehicles.
(A) Transferable between vehicles. The owner of a vehicle with specialty license plates, symbols, tabs, or other devices may transfer the specialty plates between vehicles by filing an application through the county tax assessor-collector if the vehicle to which the plates are transferred:
(i) is titled or leased in the owner's name; and
(ii) meets the vehicle classification requirements for that particular specialty license plate, symbol, tab, or other device.
(B) Non-transferable between vehicles. The following specialty license plates, symbols, tabs, or other devices are non-transferable between vehicles:
(i) Antique Vehicle license plates, Antique Motorcycle license plates, and Antique tabs;
(ii) Military Vehicle license plates and registration numbers;
(iii) Classic Auto, Classic Truck, Classic Motorcycle, and Classic Travel Trailer license plates;
(iv) Parade license plates;
(v) Forestry Vehicle license plates; and
(vi) Log Loader license plates.
(C) New specialty license plates. If the department creates a new specialty license plate under Transportation Code, §504.801, the department will specify at the time of creation whether the license plate may be transferred between vehicles.
(2) Transfer between owners.
(A) Non-transferable between owners. Specialty license plates, symbols, tabs, or other devices issued under Transportation Code, Chapter 504, Subchapters B and G, may not be transferred between persons. Specialty license plates, symbols, tabs, or other devices issued under Transportation Code, Chapter 504, Subchapters C, D, E, and F are not transferable from one person to another except as specifically permitted by statute.
(B) New specialty license plates. If the department creates a new specialty license plate under Transportation Code, §504.801, the department will specify at the time of creation whether the license plate may be transferred between owners.
(3) Simultaneous transfer between owners and vehicles. Specialty license plates, symbols, tabs, or other devices are transferable between owners and vehicles simultaneously only if the owners and vehicles meet all the requirements in both paragraph (1) and paragraph (2) of this subsection.
(f) Replacement.
(1) Application. When specialty license plates, symbols, tabs, or other devices are lost, stolen, or mutilated, the owner shall apply directly to the county tax assessor-collector for the issuance of replacements, except that Log Loader license plates must be reapplied for and accompanied by the prescribed fees and documentation.
(2) Interim replacement tags. If the specialty license plate, symbol, tab, or other device is lost, destroyed, or mutilated to such an extent that it is unusable, and if issuance of a replacement license plate would require that it be remanufactured, the owner must pay the statutory replacement fee, and the department will issue a temporary tag for interim use. The owner's new specialty license plate number will be shown on the temporary tag unless it is a personalized license plate, in which case the same personalized license plate number will be shown.
(3) Stolen specialty license plates. The county tax assessor-collector will not approve the issuance of replacement license plates with the same personalized license plate number when the department's records indicate that the vehicle displaying the personalized license plates, symbols, tabs, or other devices or the license plates, symbols, tabs, or other devices themselves were reported as stolen. On expiration or recovery of the stolen vehicle or license plates, symbols, tabs, or other devices, the department will issue, at the owner's request, replacement license plates, symbols, tabs, or other devices bearing the same personalized number as those that were stolen.
(g) License plates created after January 1, 1999. In accordance with Transportation Code, §504.702, the department will begin to issue specialty license plates authorized by a law enacted after January 1, 1999, only if the sponsoring entity for that license plate submits the following items before the fifth anniversary of the effective date of the law.
(1) The sponsoring entity must submit a written application. The application must be on a form approved by the director and include, at a minimum:
(A) the name of the license plate;
(B) the name and address of the sponsoring entity;
(C) the name and telephone number of a person authorized to act for the sponsoring entity; and
(D) the deposit or license plate fees set forth in paragraph (2) of this subsection.
(2) The written request must be accompanied by:
(A) a deposit in the amount of $8,000 in the form of a single payment, made payable to the Texas Department of Transportation; or
(B) if the license plates are presold, the prescribed number of properly executed applications for that license plate accompanied by a single payment, made payable to the Texas Department of Transportation, in an amount equal to the prescribed fees for issuance of those license plates; or
(C) if the sponsoring entity submits less than the prescribed number of properly executed applications for that license plate accompanied by a single payment, a deposit made payable to the Texas Department of Transportation, that consists of:
(i) the prescribed license plate fees for those applications submitted; and
(ii) a deposit equal to $8,000 less the prescribed portion of those license plate fees to be retained by the department, and deposited to the State Highway Fund, for issuance of the license plates for which applications are submitted.
(3) The deposit submitted to the department under paragraph (2)(A) or (2)(C) of this subsection will be returned to the sponsoring entity only if the prescribed number of sets of the applicable license are issued or presold.
(4) A sponsoring entity is not an agent of the department and does not act for the department in any matter, and the department does not assume any responsibility for fees or applications collected by a sponsoring entity.
(h) Assignment procedures for state, federal, and county officials.
(1) State Officials. State Official license plates contain the prefix "SO" and are assigned in the following order:
(A) Governor;
(B) Lieutenant Governor;
(C) Speaker of the House;
(D) Attorney General;
(E) Comptroller;
(F) Land Commissioner;
(G) Agriculture Commissioner;
(H) Secretary of State;
(I) Railroad Commission Presiding Officer followed by the remaining members based on their seniority;
(J) Supreme Court Chief Justice followed by the remaining justices based on their seniority;
(K) Criminal Court of Appeals Presiding Judge followed by the remaining judges based on their seniority;
(L) Members of the State Legislature, with Senators assigned in order of district number followed by Representatives assigned in order of district number, except that in the event of redistricting, license plates will be reassigned; and
(M) Board of Education Presiding Officer followed by the remaining members assigned in district number order, except that in the event of redistricting, license plates will be reassigned.
(2) Members of the U.S. Congress.
(A) U.S. Senate license plates contain the prefix "Senate" and are assigned by seniority; and
(B) U.S. House license plates contain the prefix "House" and are assigned in order of district number, except that in the event of redistricting, license plates will be reassigned.
(3) Federal Judge.
(A) Federal Judge license plates contain the prefix "USA" and are assigned on a seniority basis within each court in the following order:
(i) Judges of the Fifth Circuit Court of Appeals;
(ii) Judges of the United States District Courts;
(iii) United States Bankruptcy Judges; and
(iv) United States Magistrates.
(B) Federal Administrative Law Judge plates contain the prefix "US" and are assigned in the order in which applications are received.
(C) A federal judge who retired on or before August 31, 2003, and who held license plates expiring in March 2004 may continue to receive federal judge plates. A federal judge who retired after August 31, 2003, is not eligible for U.S. Judge license plates.
(4) State Judge.
(A) State Judge license plates contain the prefix "TX" and are assigned sequentially in the following order:
(i) Appellate District Courts;
(ii) Presiding Judges of Administrative Regions;
(iii) Judicial District Courts;
(iv) Criminal District Courts; and
(v) Family District Courts and County Statutory Courts.
(B) A particular alpha-numeric combination will always be assigned to a judge of the same court to which it was originally assigned.
(C) A state judge who retired on or before August 31, 2003, and who held license plates expiring in March 2004 may continue to receive state judge plates. A state judge who retired after August 31, 2003, is not eligible for State Judge license plates.
(5) County Judge license plates contain the prefix "CJ" and are assigned by county number.
(6) In the event of redistricting or other plate reallocation, the department may allow a state official to retain that official's plate number if the official has had the number for five or more consecutive years.
(i) Development of new specialty license plates.
(1) Procedure. The following procedure governs the process of authorizing new specialty license plates under Transportation Code, §504.801. It applies whether the new license plate originated as a result of an application or on the department's own initiative.
(A) The executive director will appoint no fewer than three employees of the department to a specialty license plate committee. The committee shall meet at least once every six months and shall review all completed specialty license plate applications.
(B) The committee may request additional information from an applicant if necessary to reach a decision.
(C) The recommendation of the committee will be based on the following:
(i) the projected sales of the license plate as demonstrated in the marketing plan and by the listing of target purchasers;
(ii) compliance with Transportation Code, §504.801; and
(iii) other information provided during the application process.
(D) If the committee recommends the issuance of a proposed specialty license plate, notice of the proposed new license plate will be published in the Texas Register and the license plate design will be posted on the department's web site to receive public comment. Comments must be received 10 days from the date the notice is published in the Texas Register.
(E) Specialty license plate applications that are restricted to certain individuals or groups of individuals (qualifying plates) will be reviewed by the committee using the same procedures as applications submitted for plates that are available to everyone (non-qualifying plates). The limited number of potential purchasers will be a factor in the approval decision.
(2) Applications for the creation of new specialty license plates.
(A) Requirements. To apply for the creation of a new specialty license plate, an applicant must submit a written application on a form approved by the director. The application shall include:
(i) the applicant's name, address, telephone number, and other identifying information as directed on the form;
(ii) a current certification provided by the Internal Revenue Service on that department's letterhead, stating that the applicant is a not-for-profit enterprise;
(iii) a draft design of the specialty license plate;
(iv) projected sales of the plate, including an explanation of how the projected figure was established;
(v) a marketing plan for the plate including a description of the target market;
(vi) a letter from the executive director of the sponsoring state agency stating that the agency agrees to receive and distribute revenues from the specialty license plate and that the use of the funds will not violate a statute or constitutional provision; and
(vii) other information necessary for the committee to reach a decision regarding approval of the requested specialty plate.
(B) Application Process.
(i) The application must be complete to be considered by the committee.
(ii) If the committee reviews an application and determines that additional information is needed from the applicant that may contribute to the application decision, the decision on the application will be postponed until the next committee meeting.
(iii) If the additional requested information is not received prior to the next committee meeting the application will not be considered and will be returned to the applicant as incomplete.
(iv) The executive director will make the final decision on the specialty license plate application based on the committee's recommendation and the comments received during the posting period.
(v) An applicant whose application is not approved by the executive director must submit a new application and supporting documentation to be considered again by the committee.
(3) Issuance of specialty plates.
(A) If the specialty license plate is approved, the applicant must comply with Transportation Code, §504.702 before any further design and processing of the license plate.
(B) Approval of the plate does not guarantee that the submitted draft plate design will be used. The department has final approval of all specialty license plate designs and can adjust or reconfigure the submitted draft design to comply with the format of the license plate specifications.
(4) Redesign of specialty license plate.
(A) At the request of the original or subsequent applicant, the department may redesign a specialty license plate.
(B) A request for a new design will go through the application and approval process required by this subsection.
(C) An approved license plate redesign does not require the full deposit required by Transportation Code, §504.702.
(D) The original or subsequent applicant will pay a redesign cost to cover administrative expenses.
§17.40.Marketing of Specialty License Plates through a Private Vendor.
(a) Refunds. Fees for vendor-marketed specialty license plate fees will not be refunded after an application is submitted to the vendor and the department has approved issuance of the license plate.
(b) Multi-year vendor-marketed specialty license plates. Purchasers will have the option of purchasing vendor-marketed specialty license plates for one-year, five-year or ten-year periods.
(c) Payment of fees.
(1) Payment of specialty license plate fees. The fees for issuance of vendor-marketed specialty license plates will be paid directly to the vendor for the license plate category and period selected by the purchaser. A person who purchases a multi-year vendor-marketed specialty license plate must pay upon purchase the full fee which includes the renewal fees.
(2) Payment of statutory registration fees. To be valid for use on a motor vehicle, the license plate owner is required to pay, in addition to the vendor-marketed specialty license plate fees, any statutorily required registration fees in the amount as provided by Transportation Code, Chapter 502, and this subchapter.
(d) License plate categories and associated fees. The vendor will design, market, and offer for sale categories of customized specialty license plates that meet legibility and reflectivity standards established by the department. The categories and the associated fees are provided in this subsection.
(1) Color/Themed license plates. Color/Themed license plates include license plates with a variety of pre-approved background and character color combinations that may be customized with five characters that are either three alpha and two numeric characters or two numeric and three alpha characters. The fees for issuance of Color/Themed license plates are $95 for one year; $295 for five years; and $395 for ten years.
(2) Limited Edition/Special Event license plates. Limited Edition/Special Event license plates may be customized with any six alphanumeric characters on department-approved colored backgrounds or designs approved by the department. Special Event license plates will be made available to coincide with extraordinary events of public interest to Texas registrants. The fees for issuance of Limited Edition/Special Event license plates are $195 for one year; $495 for five years; and $595 for ten years.
(3) Luxury/Prestige license plates. Luxury/Prestige license plates may be customized with up to six alphanumeric characters on colored backgrounds or designs approved by the department. The fees for issuance of Luxury/Prestige license plates are $395 for one year; $695 for five years; and $795 for ten years.
(e) Replacement.
(1) Application and fees. When vendor-marketed specialty license plates are lost, destroyed, or mutilated, the owner shall apply directly to the county tax assessor-collector for the issuance of replacement license plates and pay the statutory replacement fee for personalized license plates provided in Transportation Code, §504.101(d).
(2) Interim replacement tags. If the vendor-marketed specialty license plates are lost, destroyed, or mutilated to such an extent that they are unusable, replacement license plates will need to be remanufactured. The county tax assessor-collector will issue interim replacement tags for use until the replacements are available. The owner's vendor-marketed specialty license plate number will be shown on the interim replacement tags.
(f) Transfer of vendor-marketed specialty license plates.
(1) Transfer between vehicles. The owner of a vehicle with vendor-marketed specialty license plates may transfer the license plates between vehicles by filing an application through the county tax assessor-collector if the vehicle to which the plates are transferred:
(A) is titled or leased in the owner's name; and
(B) meets the vehicle classification requirements for that particular specialty license plate.
(2) Transfer between owners. Vendor-marketed specialty license plates may not be transferred between persons.
(g) Gift plates.
(1) A person may purchase plates as a gift for another person if the purchaser submits a statement that provides:
(A) the purchaser's name and address;
(B) the name and address of the person who will receive the plates; and
(C) the vehicle identification number of the vehicle on which the plates will be displayed or a statement that the plates will not be displayed on a vehicle.
(2) To be valid for use on a motor vehicle, the recipient of the plates must file an application with the county tax assessor-collector and pay the statutorily required registration fees in the amount as provided by Transportation Code, Chapter 502, and this subchapter.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on June 27, 2008.
TRD-200803372
Bob Jackson
General Counsel
Texas Department of Transportation
Effective date: July 17, 2008
Proposal publication date: April 11, 2008
For further information, please call: (512) 463-8683
The Texas Department of Transportation (department) adopts the repeal of §§18.80 - 18.96, concerning vehicle storage facilities, and §§18.100 - 18.104, concerning nonconsent towing fees schedule. The repeals of §§18.80 - 18.96 and §§18.100 - 18.104 are adopted without changes to the proposed text as published in the April 11, 2008, issue of the Texas Register (33 TexReg 2925) and will not be republished.
EXPLANATION OF ADOPTED REPEALS
House Bill 2094, 80th Legislature, Regular Session, 2007, transferred all functions and activities performed by the department relating to tow trucks, towing operations, and vehicle storage facilities to the Department of Licensing and Regulation (TDLR). The transfer of responsibilities occurred on February 1, 2008. The department is no longer involved in the regulation of these entities.
TDLR proposed rules regarding these subjects in the February 8, 2007, issue of the Texas Register (33 TexReg 1027). The rules proposed by TDLR address similar issues and will provide for continued regulation of these entities. House Bill 2094 transferred the rules of the department to TDLR. The repeal of these sections is for the purpose of removing provisions that no longer have legal effect.
COMMENTS
No comments on the proposed repeals were received.
Subchapter G. VEHICLE STORAGE FACILITIES
STATUTORY AUTHORITY
The repeals are adopted under Transportation Code, §201.101, which provides the Texas Transportation Commission with the authority to establish rules for the conduct of the work of the department, and more specifically House Bill 2094, 80th Legislature, Regular Session, 2007.
CROSS REFERENCE TO STATUTE
Occupations Code, Chapter 2303.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on June 27, 2008.
TRD-200803373
Bob Jackson
General Counsel
Texas Department of Transportation
Effective date: July 17, 2008
Proposal publication date: April 11, 2008
For further information, please call: (512) 463-8683
STATUTORY AUTHORITY
The repeals are adopted under Transportation Code, §201.101, which provides the Texas Transportation Commission with the authority to establish rules for the conduct of the work of the department, and more specifically House Bill 2094, 80th Legislature, Regular Session, 2007.
CROSS REFERENCE TO STATUTE
Occupations Code, Chapter 2303.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on June 27, 2008.
TRD-200803374
Bob Jackson
General Counsel
Texas Department of Transportation
Effective date: July 17, 2008
Proposal publication date: April 11, 2008
For further information, please call: (512) 463-8683