The Texas Department of Motor Vehicles (department) adopts 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. Sections 217.1, 217.2, 217.4 - 217.8, 217.20 - 217.44, 217.53 - 217.55, 217.60, 217.62, 217.64 - 217.66, 217.68, 217.70, 217.73 - 217.78, 217.80, and 217.81 are adopted without changes to the proposed text as published in the December 18, 2009, issue of the Texas Register (34 TexReg 9114) and will not be republished. Sections 217.3, 217.61, 217.63, 217.67, 217.71, 217.72, and 217.79 are adopted with changes to the proposed text as published in the December 18, 2009, issue of the Texas Register (34 TexReg 9114).

EXPLANATION OF ADOPTED 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Throughout the sections, the Texas Department of Transportation and the Texas Transportation Commission have been replaced by the Texas Department of Motor Vehicles and the Board of Motor Vehicles.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 The removal of this requirement is in accordance with House Bill 3517, Regular Session, 2009, which repealed Transportation Code, §501.0235.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) of this subchapter.

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) of this subchapter.

New §217.42 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 §217.43(a)(3)(D) adds that in order to maintain reflectivity standards, exempt plates will be marked with the replacement year.

New Subchapters C and D 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.

COMMENTS

Comments were received from Insurance Auto Auctions (IAA), the Texas Independent Auto Resellers Association, and the Texas Automobile Dealers Association (TADA).

IAA and TIARA commented on the transfer of the regulation of used automobile parts recyclers to the Texas Department of Licensing and Regulation (TDLR) by House Bill 3057, 81st Legislature, Regular Session. The bills required TDLR to adopt rules by January 2010 with an implementation date of September 1, 2010. In accordance with the comments, the department plans to remove the references to used automobile parts recyclers, in Subchapters D and E, to coincide with this implementation date.

TIARA also commented regarding the removal of the words "at auction" when referring to a sale by a salvage dealer or insurance company. References to the requirement for sale to be held by auction have been removed throughout Subchapters D and E in accordance with HB 3097.

TADA's request is limited to the sale of used motor vehicles. TADA requests that §217.3 allow a customer or purchaser to give a secure power of attorney to a dealership to sign the odometer information on behalf of the customer or purchaser if the title is not available at the time of sale. An example of this would be when a certificate of title is held in the dealership's business office's safe and a used motor vehicle is sold, but there is no manager available for unlocking the safe. Federal and state law govern powers of attorney and odometer information. The department needs to perform further research to determine how other states handle this issue, and what type of document, if any, would be acceptable to the National Highway Traffic Safety Administration under federal law. The department anticipates amending these rules later this fiscal year and will include any change at that time.

STATUTORY AUTHORITY

The new sections are adopted 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.