| (a) A dealer, a federal, state, or local governmental
agency, or a converter is required to have internet access to connect
to the temporary tag databases maintained by the department.
(b) Except as provided by §215.157 of this title
(relating to Advance Numbers, Preprinted Internet-down Temporary Tags),
before a temporary tag may be issued and displayed on a vehicle, a
dealer, a federal, state, or local governmental agency, or converter
must:
(1) enter in the temporary tag database true and accurate
information about the vehicle, dealer, converter, or buyer, as appropriate;
and
(2) obtain a specific number for the temporary tag.
(c) The department will inform each dealer annually
of the maximum number of buyer's temporary tags the dealer is authorized
to issue during the calendar year under Transportation Code §503.0632.
The number of buyer's temporary tags allocated to each dealer by the
department will be determined based on the following formula:
(1) Sales data determined from the department's systems
from the previous three fiscal years. A dealer's base number will
contain the sum of:
(A) the greater number of:
(i) in-state buyer's temporary tags issued in one fiscal
year during the previous three fiscal years; or
(ii) title transactions processed through the Registration
and Title System in one fiscal year during the previous three fiscal
years; but
(iii) the amount will be limited to an amount that
is not more than two times the number of title transactions identified
in subparagraph (ii) of this paragraph; and
(B) the addition of the greatest number of out-of-state
buyer's temporary tags issued in one fiscal year during the previous
three fiscal years;
(2) the total value of paragraph (1) of this subsection
will be increased by a multiplier based on the dealer's time in operation
giving a 10 percent increase in tags for each year the dealer has
been in operation up to 10 years;
(3) the total value of paragraph (2) of this subsection
will be increased by a multiplier that is the greater of:
(A) the dealer's actual growth rate percentage identified
from the preceding two fiscal years, calculated by the growth of the
number of title transactions processed through the Registration and
Title System plus the growth of the number of out-of-state buyer's
temporary tags issued, except that it may not exceed 200 percent;
or
(B) the statewide actual growth rate percentage identified
from the preceding two fiscal years, calculated by the growth of the
number of title transactions processed through the Registration and
Title System plus the growth of the number of out-of-state buyer's
temporary tags issued, not less than zero, to determine the buyer's
temporary tag allotment; and
(4) the department may increase the determined allotment
of buyer's temporary tags for dealers in the state, in a geographic
or population area, or in a county, based on:
(A) changes in the market;
(B) temporary conditions that may affect sales; and
(C) any other information the department considers
relevant.
(d) The department will inform each dealer annually
of the maximum number of agent temporary tags and vehicle specific
temporary tags the dealer is authorized to issue during the calendar
year under Transportation Code §503.0632. The number of agent
temporary tags and vehicle specific temporary tags allocated to each
dealer by the department, for each tag type, will be determined based
on the following formula:
(1) dealer temporary tag data for agent temporary tags
and vehicle specific temporary tags determined from the department's
systems from the previous three fiscal years. A dealer's base number
will contain the maximum number of dealer temporary tags issued during
the previous three fiscal years;
(2) the total value of paragraph (1) of this subsection
will be increased by a multiplier based on the dealer's time in operation
giving a 10 percent increase in tags for each year the dealer has
been in operation up to 10 years; and
(3) the total value of paragraph (2) of this subsection
will be increased by a multiplier that is the greater of:
(A) the dealer's actual growth rate percentage identified
from the preceding two fiscal years, calculated by the growth of the
number of dealer's temporary tags issued, except that it may not exceed
200 percent; or
(B) the statewide actual growth rate percentage identified
from the preceding two fiscal years, calculated by the growth of the
number of dealer's temporary tags issued, not less than zero, to determine
the dealer's temporary tag allotment; and
(4) the department may increase a dealer's allotment
of agent temporary tags and vehicle specific temporary tags for dealers
in the state, in a geographic or population area, or in a county,
based on:
(A) changes in the market;
(B) temporary conditions that may affect sales; and
(C) any other information the department considers
relevant.
(e) The department will inform each converter annually
of the maximum number of temporary tags the converter is authorized
to issue during the calendar year under Transportation Code §503.0632.
The number of temporary tags allocated to each converter by the department
will be determined based on the following formula:
(1) converter temporary tag data determined from the
department's systems from the previous three fiscal years. A converter's
base number will contain the maximum number of converter temporary
tags issued during the previous three fiscal years;
(2) the total value of paragraph (1) of this subsection
will be increased by a multiplier based on the converter's time in
operation giving a 10 percent increase in tags for each year the dealer
has been in operation up to 10 years; and
(3) the total value of paragraph (2) of this subsection
will be increased by a multiplier that is the greater of:
(A) the converter's actual growth rate percentage identified
from the preceding two fiscal years, calculated by the growth of the
number of converter's temporary tags issued, except that it may not
exceed 200 percent; or
(B) the statewide actual growth rate percentage identified
from the preceding two fiscal years, calculated by the growth of the
number of converter's temporary tags issued, not less than zero, to
determine the converter's temporary tag allotment;
(4) the department may increase a converter's allotment
of converter temporary tags for converters in the state, in a geographic
or population area, or in a county, based on:
(A) changes in the market;
(B) temporary conditions that may affect sales; and
(C) any other information the department considers
relevant.
(f) A dealer or converter that is licensed after the
commencement of a calendar year shall be authorized to issue the number
of temporary tags allotted in this subsection prorated on all or part
of the remaining months until the commencement of the calendar year
after the dealer's or converter's initial license expires. The initial
allocations shall be as determined by the department in granting the
license, but not more than:
(1) 600 temporary tags for a franchised dealer per
each tag type, buyer's temporary tags, agent temporary tags, and vehicle
specific tags, unless:
(A) the dealer provides credible information indicating
that a greater number of tags is warranted based on anticipated sales,
and growth, to include new and used vehicle sales, including information
from the manufacturer or distributor, or as otherwise provided in
this section; and
(B) if more than 600 temporary tags are determined
to be needed based on anticipated sales and growth, the total number
of temporary tags needed, including the 600, will be doubled;
(2) 300 temporary tags for a nonfranchised dealer per
each tag type, buyer's temporary tags, agent temporary tags, and vehicle
specific tags, unless the dealer provides credible information indicating
that a greater number of tags is warranted based on anticipated sales
as otherwise provided in this section; and
(3) A converter will be allocated 600 temporary tags,
unless the converter provides credible information indicating that
a greater number of tags is warranted based on anticipated sales,
including information from the manufacturer or distributor, or as
otherwise provided in this section.
(g) An existing dealer or converter that is:
(1) moving its operations from one location to a different
location will continue with its allotment of temporary tags and not
be allocated temporary tags under subsection (f) of this section;
(2) opening an additional location will receive a maximum
allotment of temporary tags based on the greater of the allotment
provided to existing locations, including franchised dealers opening
additional locations for different line makes, or the amount under
subsection (f) of this section;
(3) purchased as a buy-sell ownership agreement will
receive the maximum allotment of temporary tags provided to the location
being purchased and not be allocated temporary tags under subsection
(f) of this section; and
(4) inherited by will or laws of descent will receive
the maximum allotment of temporary tags provided to the location being
inherited and not be allocated temporary tags under subsection (f)
of this section.
(h) A new dealer or converter may also provide credible
information supporting a request for additional temporary tags to
the amount allocated under subsection (f) of this section based on:
(1) franchised dealer, manufacturer, or distributor
sales expectations;
(2) a change in license required by death or retirement,
except as provided in subsection (g) of this section;
(3) prior year's sales by a dealership moving into
the state; or
(4) other similar change of location or ownership that
indicates some continuity in existing operations.
(i) After using 50 percent of the allotted maximum
number of temporary tags, a dealer or converter may request an increase
in the number of temporary tags by submitting a request in the department's
eLICENSING system.
(1) The dealer or converter must provide information
demonstrating the need for additional temporary tags results from
business operations, including anticipated needs, as required by §503.0632(c).
Information may include documentation of sales and tax reports filed
as required by law, information of anticipated need, or other information
of the factors listed in §503.0632(b).
(2) The department shall consider the information presented
and may consider information not presented that may weigh for or against
granting the request that the department in its sole discretion determines
to be relevant in making its determination. Other relevant information
may include information of the factors listed in §503.0632(b),
the timing of the request, and the applicant's temporary tag activity.
(3) The department may allocate a lesser or greater
number of additional temporary tags than the amount requested by the
dealer or converter. Allocation of a lesser or greater number of additional
temporary tags is not a denial of the request. Allocation of additional
temporary tags under this paragraph does not limit the dealer's or
converter's ability to submit additional requests for more temporary
tags.
(4) If a request is denied, a dealer or converter may
appeal the denial to the Director of the Motor Vehicle Division whose
decision is final.
(A) The denial will be sent to the license holder by
email to the email used by the license holder in the request.
(B) The appeal must be requested within 10 business
days of the denial being sent to the department though the eLICENSING
system.
(C) The appeal may discuss information provided in
the request but may not include additional information.
(D) The Motor Vehicle Division Director will review
the submission and any additional statements concerning the information
submitted in the original request and render an opinion within 10
business days of receiving the appeal. The Motor Vehicle Division
Director may decide to deny the request and issue no additional tags,
or award an amount of additional temporary tags that is lesser, equal
to, or greater than the request.
(E) The requesting license holder will be notified
as follows:
(i) If the Motor Vehicle Division director has decided
to deny the appeal, the license holder will be contacted by email
regarding the decision and options to submit a new request with additional
relevant credible supporting documentation or to pursue a claim in
district court; or
(ii) If the Motor Vehicle Division Director has decided
to award an amount of additional temporary tags that is lesser, equal
to, or greater than the request, the additional temporary tags will
be added to the license holders account and the license holder will
be contacted by email regarding the decision, informed that the request
has not been denied, and options the license holder has to submit
a new request.
(5) Once a denial is final, a dealer or converter may
only submit a subsequent request for additional temporary tags during
that calendar year if the dealer or converter is able to provide additional
information not considered in the prior request.
(j) A change in the allotment under subsection (i)
of this section does not create a dealer or converter base for subsequent
year calculations.
(k) The department may at any time initiate an enforcement
action against a dealer or converter if temporary tag usage suggests
that misuse or fraud has occurred as described in Transportation Code §§503.038,
503.0632(f), or 503.067.
(l) Unused dealer or converter tag allotments from
a calendar year do not roll over to subsequent years.
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