TITLE 43. TRANSPORTATION

PART 1. TEXAS DEPARTMENT OF TRANSPORTATION

CHAPTER 17. VEHICLE TITLES AND REGISTRATION

SUBCHAPTER B. MOTOR VEHICLE REGISTRATION

43 TAC §17.21, §17.23

The Texas Department of Transportation (department) proposes amendments to §17.21, Definitions, and §17.23, Temporary Registration Permits, both concerning motor vehicle registration.

EXPLANATION OF PROPOSED AMENDMENTS

The proposed amendments are the result of changes made to Transportation Code, §648.001 and Transportation Code, §648.101, by House Bill 782, 81st Legislature, 2009, which relate to registration exemptions for certain foreign commercial motor vehicles.

Amendments to §17.21, Definitions, add the definition of "foreign commercial vehicles" to specify that the vehicle must be owned by a person domiciled in or who is a citizen of another country. This definition is the same as that contained in Transportation Code, §648.001(4), as amended by House Bill 782.

Amendments to §17.23(h) re-title the subsection from "Exemptions" to "Border commercial zones" and implement changes that were made to Transportation Code, §648.101 by House Bill 782.

Amendments to §17.23(h)(1) state the general rule that a vehicle in a border commercial zone must display a valid Texas registration if the vehicle is owned by a person who owns a leasing facility or leasing terminal in Texas and leases the vehicle to a foreign motor carrier. This paragraph is added as a result of Transportation Code, §648.101(e), as added by House Bill 782, and is not subject to the exemptions provided elsewhere in §17.23(h).

Amendments to §17.23(h)(2), relating to an exemption for the transportation of cargo by brief trips across the border into or from a border commercial zone, remove the exemption for a person who controls, rather than owns, the vehicle and limit the exemption to a vehicle that is registered and licensed as required by the country in which the owner is domiciled or is a citizen. These changes are made in accordance with Transportation Code, §648.101(a), as amended by House Bill 782.

New §17.23(h)(3), exempts a foreign commercial motor vehicle in a border commercial zone from registration if a valid reciprocity agreement between Texas and another state of the United States or a Canadian province exempts currently registered vehicles owned by a resident of this state from registration in the other state or province. These changes are made in accordance with Transportation Code, §648.101(c), as amended by House Bill 782.

FISCAL NOTE

James Bass, Chief Financial Officer, has determined that for each of the first five years the amendments as proposed are in effect, there will be no fiscal implications for state or local governments as a result of enforcing or administering the amendments.

However, there are fiscal implications due to the passage of House Bill 782. An estimated 9,000 Texas-owned trailers are currently operating in the border commercial zone without Texas plates. The fiscal impact of the registration and titling of these vehicles could generate an additional $346,000 annually to the state and $176,000 annually to the counties.

Government Code, §2006.002, Adoption of Rules with Adverse Economic Effect, requires that before adopting a rule that may have an adverse economic effect on small businesses, a state agency must prepare an economic impact statement and a regulatory flexibility analysis unless the rule is adopted to comply with legislatively mandated language. Government Code, §2006.002, also requires that agencies prepare a regulatory flexibility analysis to analyze alternatives to the proposed rule unless the rule is adopted to comply with a legislative mandate. The title and registration of trailers is mandated by House Bill 782, 2009.

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

PUBLIC BENEFIT AND COST

Ms. Davio has also determined that for each year of the first five years the sections are in effect, the public benefit anticipated as a result of enforcing or administering the amendments will be the registration and titling of trailers in Texas.

However, there are anticipated economic costs due to the passage of House Bill 782. Persons required to comply with the statute will pay $15 for the token trailer fee, $.30 for the reflectorization fee, and local fees such as the county road and bridge fee. Title application fees are generally $33 per trailer for counties in nonattainment and surrounding areas, and $28 per trailer in other counties. Of that fee, $5 is distributed to the county, and the remainder to the state.

SUBMITTAL OF COMMENTS

Written comments on the proposed amendments to §17.21 and §17.23 may be submitted to Rebecca Davio, Director, Vehicle Titles and Registration, Texas Department of Transportation, 125 East 11th Street, Austin, Texas 78701-2483. The deadline for receipt of comments is 5:00 p.m. on August 10, 2009.

STATUTORY AUTHORITY

The amendments are proposed under Transportation Code, §201.101, which provides the Texas Transportation Commission with the authority to establish rules for the conduct of the work of the department, and more specifically, Transportation Code, §648.002 which authorizes the commission to adopt rules to carry out Transportation Code, Chapter 684.

CROSS REFERENCE TO STATUTE

Transportation Code, Chapter 684, Subchapter C.

§17.21.Definitions.

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

(1) - (25) (No change.)

(26) Foreign commercial motor vehicle--A commercial motor vehicle, as defined by 49 C.F.R. §390.5, that is owned by a person or entity that is domiciled in or a citizen of a country other than the United States.

(27) [(26)] Gross weight--The sum of the empty weight of a commercial vehicle (or vehicles, if operated in combination), combined with its maximum carrying capacity, rounded up to the next 100 pounds.

(28) [(27)] Highway construction project--That section of the highway between the warning signs giving notice of a construction area.

(29) [(28)] International symbol of access--The symbol adopted by Rehabilitation International in 1969 at its Eleventh World Congress of Rehabilitation of the Disabled.

(30) [(29)] Legally blind--Having not more than 20/200 visual acuity in the better eye with correcting lenses, or visual acuity greater than 20/200 but with a limitation in the field of vision such that the widest diameter of the visual field subtends an angle no greater than 20 degrees.

(31) [(30)] Light truck--As defined in Transportation Code, §541.201, any truck with a manufacturer's rated carrying capacity not to exceed two thousand pounds, including those trucks commonly known as pickup trucks, panel delivery trucks, and carryall trucks.

(32) [(31)] Make--The trade name of the vehicle manufacturer.

(33) [(32)] Motor bus--A motor-propelled vehicle used to transport persons on public highways for compensation, other than a street or suburban bus.

(34) [(33)] Motorized mobility device--A device designed for transportation of persons with physical disabilities that:

(A) has three or more wheels;

(B) is propelled by a battery-powered motor;

(C) has not more than one forward gear; and

(D) is not capable of speeds exceeding eight miles per hour.

(35) [(34)] Net carrying capacity--150 pounds multiplied by the seating capacity as determined by the manufacturer's rated seating capacity, exclusive of the driver's or operator's seat, or in the case of a vehicle that is not rated by the manufacturer, as determined by an allowance of one passenger for each sixteen inches, exclusive of the driver's or operator's seat.

(36) [(35)] Nonprofit organization--An unincorporated association or society or a corporation that is incorporated or holds a certificate of authority under the Business Organizations Code.

(37) [(36)] Owner--A person who holds the legal title to a vehicle, has the legal right to possess a vehicle, or has the legal right to control a vehicle.

(38) [(37)] Passenger car--In accordance with Transportation Code, §502.001, any motor vehicle other than a motorcycle, golf cart, or a bus, designed or used primarily for the transportation of persons.

(39) [(38)] Political subdivision--A county, municipality, local board, or other body of this state having authority to provide a public service.

(40) [(39)] Registration period--A designated period during which registration is valid. A registration period always begins on the first day of a calendar month and ends on the last day of a calendar month.

(41) [(40)] Rental fleet--A fleet of five or more vehicles that are owned by the same owner, offered for rent or rented without drivers, and designated by the owner in the manner prescribed by the department as a rental fleet.

(42) [(41)] Rental trailer--A utility trailer that has a gross weight of 4,000 pounds or less and is part of a rental fleet.

(43) [(42)] Road tractor--A vehicle designed for the purpose of mowing the right of way of a public highway or a motor vehicle designed or used for drawing another vehicle or a load and not constructed to carry:

(A) an independent load; or

(B) a part of the weight of the vehicle and load to be drawn.

(44) [(43)] Service agreement--A contractual agreement that allows individuals or businesses to access the department's vehicle registration records.

(45) [(44)] Specialty license plate--A special design license plate issued by the department under statutory authority.

(46) [(45)] Specialty license plate fee--Statutorily or department required fee payable on submission of an application for a specialty license plate, symbol, tab, or other device, and collected in addition to statutory motor vehicle registration fees.

(47) [(46)] Special district--A political subdivision of the state established to provide a single public service within a specific geographical area.

(48) [(47)] Sponsoring entity--An institution, college, university, sports team, or any other individual or group that desires to support a particular specialty license plate by coordinating the collection and submission of the prescribed applications and associated license plate fees or deposits for that particular license plate.

(49) [(48)] Street or suburban bus--A vehicle, other than a passenger car, used to transport persons for compensation exclusively within the limits of a municipality or a suburban addition to a municipality.

(50) [(49)] Tandem axle group--Two or more axles spaced 40 inches or more apart from center to center having at least one common point of weight suspension.

(51) [(50)] Token trailer--[:]

(A) A semitrailer that has a gross weight of more than 6,000 pounds and is operated in combination with a truck; or

(B) a truck tractor that has been issued an apportioned license plate, a combination license plate, or a forestry vehicle license plate.

(52) [(51)] Tow truck--A motor vehicle equipped with a mechanical device adapted or used to tow, winch, or otherwise move another motor vehicle.

(53) [(52)] Travel trailer--A house trailer-type vehicle or a camper trailer that is less than eight feet in width or 40 feet in length, exclusive of any hitch installed on the vehicle, and is designed primarily for use as temporary living quarters in connection with recreational, camping, travel, or seasonal use and not as a permanent dwelling.

(54) [(53)] Unconventional vehicle--A vehicle built entirely as machinery from the ground up, that is permanently designed to perform a specific function, and is not designed to transport property.

(55) [(54)] Vehicle--A device in or by which a person or property is or may be transported or drawn on a public highway, other than a device used exclusively on stationary rails or tracks.

(56) [(55)] Vehicle classification--The grouping of vehicles in categories for the purpose of registration, based on design, carrying capacity, or use.

(57) [(56)] Vehicle description--Information regarding a specific vehicle, including, but not limited to, the vehicle make, model year, body style, and vehicle identification number.

(58) [(57)] Vehicle identification number--A number assigned by the manufacturer of a motor vehicle or the department that describes the motor vehicle for purposes of identification.

(59) [(58)] Vehicle inspection sticker--A sticker issued by the Texas Department of Public Safety signifying that a vehicle has passed all applicable safety and emissions tests.

(60) [(59)] Vehicle registration insignia--A license plate, symbol, tab, or other device issued by the department evidencing that all applicable fees have been paid for the current registration period and allowing the vehicle to be operated on the public highways.

(61) [(60)] Vehicle registration record--Information contained in the department's files that reflects, but is not limited to, the make, vehicle identification number, model year, body style, license number, and the name of the registered owner.

(62) [(61)] Volunteer fire department--An association that is organized for the purpose of answering fire alarms, extinguishing fires, and providing emergency medical services.

§17.23.Temporary Registration Permits.

(a) - (g) (No change.)

(h) Border commercial zones. [Exemptions. A foreign commercial vehicle operating in accordance with Transportation Code, Chapter 648 is exempt from the display of a temporary registration permit if:]

(1) Texas registration required. A vehicle located in a border commercial zone must display a valid Texas registration if the vehicle is owned by a person who: [the vehicle is engaged solely in the transportation of cargo across the border into or from a border commercial zone;]

(A) owns a leasing facility or a leasing terminal located in Texas; and

(B) leases the vehicle to a foreign motor carrier.

(2) Exemption for trips of short duration. Except as provided by paragraph (1) of this subsection, a foreign commercial vehicle operating in accordance with Transportation Code, Chapter 648 is exempt from the display of a temporary registration permit if [for each load of cargo transported the vehicle remains in this state for]:

(A) the vehicle is engaged solely in the transportation of cargo across the border into or from a border commercial zone; [not more than 24 hours; or]

(B) for each load of cargo transported the vehicle remains in this state for [ not more than 48 hours, if]:

(i) not more than 24 hours; or [the vehicle is unable to leave this state within 24 hours because of circumstances beyond the control of the motor carrier operating the vehicle; and]

(ii) not more than 48 hours, if: [all financial responsibility requirements applying to this vehicle are satisfied;]

(I) the vehicle is unable to leave this state within 24 hours because of circumstances beyond the control of the motor carrier operating the vehicle; and

(II) all financial responsibility requirements applying to this vehicle are satisfied;

(C) the vehicle is registered and licensed as required by the [law of another state or] country in which the person that owns the vehicle is domiciled or is a citizen as evidenced by a valid metal license plate attached to the front or rear exterior of the vehicle; and

(D) the country in which the person who owns [or controls] the vehicle is domiciled or is a citizen[ ,] provides a reciprocal exemption for commercial motor vehicles owned [or controlled] by residents of Texas.

(3) Exemption due to reciprocity agreement. Except as provided by paragraph (1) of this subsection, a foreign commercial motor vehicle in a border commercial zone in this state is exempt from the requirement of obtaining a Texas registration if the vehicle is currently registered in another state of the United States or a province of Canada with which this state has a reciprocity agreement that exempts a vehicle that is owned by a resident of this state and that is currently registered in this state from registration in the other state or province.

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 26, 2009.

TRD-200902625

Bob Jackson

General Counsel

Texas Department of Transportation

Earliest possible date of adoption: August 9, 2009

For further information, please call: (512) 463-8683