The Texas Department of Motor Vehicles (department) proposes new Chapter 217, to include: Subchapter A, Motor Vehicle Certificates of Title, §§217.1 - 217.8; Subchapter B, Motor Vehicle Registration, §§217.20 - 217.44; Subchapter C, Registration and Title System, §§217.53 - 217.55; Subchapter D, Non-repairable and Salvage Motor Vehicles, §§217.60 - 217.68; and Subchapter E, Salvage Vehicle Dealers, §§217.70 - 217.81 all concerning vehicle titles and registration.

EXPLANATION OF PROPOSED NEW CHAPTER

New Chapter 217 is necessary to implement the provisions of House Bill 3097, 81st Legislature, Regular Session, 2009 which created the Department of Motor Vehicles (DMV) from the motor carrier, motor vehicle, vehicle titles and registration, and automobile burglary and theft prevention authority divisions of the Texas Department of Transportation. This chapter establishes the procedures regarding motor vehicle certificates of title, motor vehicle registration, and non-repairable and salvage vehicles. It also provides for the regulation of salvage motor vehicle dealers.

Throughout the sections, the Texas Department of Transportation and the Texas Transportation Commission have been replaced by the Texas Department of Motor Vehicles and the Board of Motor Vehicles.

New Chapter 217, Subchapter A incorporates the same content as 43 TAC Chapter 17, Subchapter A, except that it removes the requirement of §17.3(b)(2)(I) for the applicant to submit a social security number when applying for a certificate of title. The removal of this requirement is in accordance with House Bill 3517, Regular Session, 2009, which repealed Transportation Code, §501.0235. New §217.3(b) clarifies that a person must apply for the certificate of title within 20 working days after the date of receiving the transfer documents, except that in a seller-financed sale, the certificate of title must be applied for not later than the 45th day after the date the motor vehicle is delivered to the purchaser in accordance with Tax Code, §152.069, as amended by Senate Bill 1235, Regular Session, 2009. A dealer may also apply as provided by 43 TAC §215.144(e).

New Chapter 217, Subchapter B incorporates the contents of 43 TAC Chapter 17, Subchapter B, with the following revisions.

New §217.21 adds the definition of "construction machinery" for clarification. It removes the definition of "special district" as that term is not used in the subchapter. The definition of "sponsoring entity" is clarified to apply only to non-profit entities as specialty plates for for-profit entities are required to be marketed and sold in accordance with Transportation Code, §504.802, as amended by Senate Bill 1616, 81st Legislature, Regular Session, 2009.

New §217.22 adds a provision in subsection (c)(3)(B)(i) to revise the standard for rejecting alphanumeric patterns. The rejection category added is patterns that display excretory material because such material is considered objectionable to the general public. The new provision clarifies that "derogatory" is considered to be an expression of hate directed toward people or groups that is demeaning to people or groups or associated with an organization that advocates such expressions. The section also defines the term "vulgarity" as curse words, and adds that a pattern will be rejected if the pattern is considered indecent, defined as a sex act or excretory material. Rejection of material that is not generally considered appropriate has been removed as those types of patterns should be included in the more specific criteria listed.

New §217.23(d) removes the requirement that temporary tags be constructed from cardboard in accordance with Senate Bill 1235, 81st Legislature, Regular Session, 2009, which amended Transportation Code, §§501.022, 503.038, 503.062, 503.0625, 503.0626, 503.063, 503.0631, 503.065, 503.067 - 503.069, and 601.002.

New §217.24(b)(2) simplifies the application for disabled person identification placards in accordance with House Bill 3095, 81st Legislature, Regular Session, 2009, which delineates that blue placards signify a permanent disability and red placards signify a temporary disability. Section 217.24(c)(3)(E) and (F) are added to allow licensed optometrists, registered nurses, or physician assistants to prescribe initial placards in accordance with Transportation Code, §681.003 as amended by Senate Bills 1367 and 1984, Regular Session, 2009. New §217.24(g)(2) adds a provision that authorizes the department to resolve a seized placard dispute under Transportation Code, §1003.2 as a routine matter, by entering into settlement discussions with the placard owner before referring a case to the State Office of Administrative Hearings. The petitioner will agree to abide by all laws regarding placards in the settlement. This procedure will provide an effective and streamlined process for resolving disputes concerning seized placards.

New §217.25 reduces the fee for construction machinery plates from $5.30 to $5.00 as the thirty cent reflectorization is provided for in Transportation Code, §502.170.

New §217.26, Golf Carts, adds a new section to the subchapter to allow issuance of license plates only in accordance with Transportation Code, §504.510 to an owner who resides on real property that is owned or controlled by the United States Corps of Engineers in a county that borders another state and has a population of more than 110,000 but less than 111,000. House Bill 2553, 81st Legislature, Regular Session, 2009, added Transportation Code, §551.402 which prohibits the department from registering golf carts.

New §217.28(b)(3) adds Legion of Valor plates to the types of plates for which application must be made directly to the department. There are not a great number of these plates issued, so the work can be accommodated by the department's staff who will verify the requirements for issuance of this plate. Section 217.28(c)(5) removes registration for golf carts in accordance with House Bill 2553, 81st Legislature, Regular Session, 2009.

Senate Bill 1616, 81st Legislature, Regular Session, 2009 repealed Transportation Code, §504.101 which authorized the department to issue personalized non-specialty license plates. Section 217.28(h)(7) adds that the department will collect a $25 fee whenever the transfer right of ownership of a pattern is exercised. This fee is authorized by Transportation Code, §504.854(c) to pay for the cost of the department's transfer action.

The amendments do not alter the fee for a personalized specialty plate issued by the department. Section 217.28(h)(8) clarifies that the fee for the personalization of license plates applied for prior to November 19, 2009 is $40 if the plates are renewed annually. The personalization fee for plates applied for after November 19, 2009 is $40 if the plates are issued pursuant to Transportation Code, Subchapters G and I.

A provision is added to §217.28(i) to standardize that in reviewing the comments, the executive director or designee will consider whether the negative comments suggest that the plate would fall under the criteria of §217.22(c)(3)(B)(i).

New §217.31 contains the same content as existing §17.52. It has been renumbered §217.31 to provide numbering consistency.

New §217.40(e) replaces the level of designee of Assistant Executive Director with division director as the Department of Motor Vehicles is not expected to have an Assistant Executive Director. This subsection adds that the executive director or designee will consider whether the negative comments suggest that the plate would fall under the criteria of §217.22(c)(3)(B)(i).

New §217.49 adds a provision, in accordance with Transportation Code, §502.0023, as amended by House Bills 1759 and 3433, 81st Legislature, Regular Session, 2009, to authorize the registration of fleet vehicles for a duration of up to eight years. A commercial fleet must be registered with no fewer than twenty five vehicles. The section contains the procedure for registration, including submitting annual proof of payment of Heavy Vehicle Use Tax. Fees will be charged for the entire registration period selected.

New §217.50(a)(3)(D) adds that in order to maintain reflectivity standards, exempt plates will be marked with the replacement year.

New Chapter 217, Subchapter C, Registration and Title System, and Subchapter D, Non-repairable and Salvage Motor Vehicles, incorporate the same content as 43 TAC Chapter 17, Subchapters C and D.

New Chapter 217, Subchapter E incorporates the contents of 43 TAC Chapter 17, Subchapter E, except that it changes several similar provisions in §17.81. Section 217.81(a)(4) and (b)(13) are changed to correspond with the application procedures of §217.73(b)(1)(E) and (2)(A)(vi), and §217.74(2)(F). The change clarifies that officers and directors may not be convicted of a felony for which less than three years have elapsed since the termination of the sentence, parole, mandatory supervision, or probation, or their license may be denied, suspended, or revoked.

FISCAL NOTE

Brian Ragland, Interim Chief Financial Officer, has determined that for each year of the first five years the new chapter as proposed is in effect, there will be no fiscal implications for state and local governments as a result of enforcing or administering the new subchapter. There will be some positive fiscal implications to general revenue as a result of the auction provision in new §217.40. This amount cannot be determined because the amount of revenue generated is dependent on the number of plates auctioned and the auction prices.

Rebecca Davio, Director, Vehicle Titles and Registration Division, has certified that there will not be a significant impact on local economies or overall employment as a result of enforcing or administering the new chapter.

PUBLIC BENEFIT AND COST

Ms. Davio has also determined that for each year of the first five years the new chapter is in effect, the public benefit anticipated as a result of enforcing or administering the sections incorporated from 43 TAC Chapter 17 is an efficient transition of the responsibilities of the Texas Department of Transportation for this chapter to the new Texas Department of Motor Vehicles.

There are no anticipated economic costs for persons required to comply with the new chapter. There will be no adverse economic effect on small businesses. There is a public benefit to businesses with fleets as registering vehicles in accordance with §217.49 for up to eight years will result in time savings.

SUBMITTAL OF COMMENTS

Written comments on the new chapter may be submitted to Executive Director, Texas Department of Motor Vehicles, 4000 Jackson Avenue, Building 1, Austin, Texas 78731. The deadline for receipt of comments is 5:00 p.m. on January 18, 2010.

STATUTORY AUTHORITY

The new sections are proposed under Transportation Code, §1002.001, which provides the Texas Motor Vehicles Board with the authority to establish rules for the conduct of the work of the department.

CROSS REFERENCE TO STATUTE

Transportation Code, §§502.0023, 501.022, 503.038, 503.062, 503.0625, 503.0626, 503.063, 503.0631, 503.065, 503.067, 503.068, 503.069, 504.510, 504.802, 504.854, 551.402, 601.002, 681.003, and 1003.2; and Tax Code, §152.069.