The Texas Department of Motor Vehicles (department) proposes the repeal of §217.26, Golf Carts, amendments to §217.2, Definitions, §217.3, Motor Vehicle Certificates of Title, §217.21, Definitions, §217.22, Motor Vehicle Registration, §217.23, Temporary Registration Permits, §217.24, Disabled Person License Plates and Identification Placards, §217.28, Specialty License Plates, Symbols, Tabs, and Other Devices, §217.29, Vehicle Registration Renewal via the Internet, §217.30, Commercial Vehicle Registration, §217.31, Vehicle Emissions Enforcement System, §217.37, Equipment and Vehicles Within Road Construction Projects, §217.39, Water Well Drilling Vehicles, §217.40, Marketing of Specialty License Plates through a Private Vendor, §217.41, Removal of License Plates and Registration Insignia upon Sale of Motor Vehicle, §217.42, Registration of Fleet Vehicles, §217.43, Exempt and Alias Vehicle Registration, §217.53, Automated Vehicle Registration and Certificate of Title System, and §217.54, Automated Equipment, and new §217.26, Military Specialty License Plates, all relating to Vehicle Titles and Registration.

EXPLANATION OF PROPOSED REPEAL, AMENDMENTS AND NEW SECTION

The proposed repeal, amendments and new section are necessary to comply with the requirements of House Bill (HB) 2357, 82nd Legislature, Regular Session, 2011, which reorganized Transportation Code, Chapters 501, 502, 504, and 520, the motor vehicle statutes, including updating them to reflect automation capability in systems and payment. Many contain amendments that update citation changes made due to the reorganization. Throughout the rules "certificate of title" has been replaced with "title" in accordance with HB 2357 simplification.

In addition, Senate Bill 461, 82nd Legislature, Regular Session, 2011, added United States Paratrooper specialty license plates, HB 3580 and HB 2357, 82nd Legislature, Regular Session, 2011, added Surviving Spouses of Disabled Veterans specialty license plates, HB 1178, 82nd Legislature, Regular Session, 2011, added Woman Veteran specialty license plates, HB 191, 82nd Legislature, Regular Session, 2011, added Distinguished Service Medal specialty license plates, and HB 559, 82nd Legislature, Regular Session, 2011, added Bronze Star Medal and Bronze Star Medal with Valor specialty license plates. HB 1674, 82nd Legislature, Regular Session, 2011, allows registration renewal to be denied if a child support agency gives the department notice that the obligor failed to pay child support. This changed from the requirement that the department had to be given a final order.

Section 217.26, Golf Carts, is repealed because the department issues a very limited amount of golf cart plates and the eligibility for these plates is clearly stated in Transportation Code, §504.510.

Section 217.2 is amended to delete definitions contained in Transportation Code, §501.002.

Section 217.3(g) is amended to update citations and provide for a $15 administrative fee and appraisal process in accordance with HB 2357. The remainder of subsection (g) is deleted as it repeats the statutory language of Transportation Code, §501.051. Under HB 2357, the expired bonds no longer need to be returned to the title owner as expired bonds do not have value. In accordance with HB 2357, a new procedure is provided in subsection (i) that can be utilized when all parties agree to rescind a new sales transaction. Currently, even if all parties agree to rescind the sale, a court order must be sought. The department may rescind, cancel, or revoke an application for a title if a signed, notarized affidavit is presented within 21 days of initial sale containing: a statement that the vehicle involved was a new motor vehicle in the process of a first sale; a statement that the dealer, the applicant, and any lienholder have canceled the sale; a statement as to whether the vehicle was in possession of the title applicant; and an odometer disclosure statement if appropriate. The 21-day time period was chosen as adequate time to prepare and submit the affidavits. Furthermore, the time frame accommodates denial of rescission if the vehicle has had an owner for a significant length of time. Form affidavits will be available on the TxDMV.gov website.

Following this procedure does not negate the fact that the vehicle has been subject to a previous retail sale. A dealer shall obtain written acknowledgment from the subsequent purchaser that discloses the vehicle was subject to a prior retail sale and the effect, if any, the prior retail sale has on the warranty coverage of the vehicle. A copy of the written acknowledgment shall be provided to the subsequent purchaser and the dealer shall retain a copy.

Section 217.21 is amended to delete definitions contained in Transportation Code, §502.001, and to update definitions to correspond with changes in §502.001. The definition of "bus" is added to help clarify between a private and a public bus, and the definition of "nominating state agency" is added to clarify what type of entity may ask for a specialty plate.

Section 217.22 is amended to update citations. Transportation Code, §504.943, requires the department to set the placement of license plates by rule. Amendments to subsection (b) add that a registration application may also be supported by a registration receipt that is not more than six months past the date of expiration or a title receipt. The six month time frame was chosen to align with current Texas Department of Public Safety policy. Owners are considered to be legitimate if they have a registration sticker that is not more than six months past expiration.

The amendments to subsection (c) require that a motor vehicle must display two license plates, one at the exterior front and one at the exterior rear of the vehicle that are securely fastened at the exterior front and rear of the vehicle in a horizontal position of not less than 12 inches from the ground, measuring from the bottom, except that a vehicle described by Transportation Code, §621.2061, may have its rear plate placed so that it is clearly visible. However, if the vehicle is a road tractor, motorcycle, trailer or semitrailer, the vehicle must display one plate that is securely fastened at, or as closely practical to, the exterior rear of the vehicle in a position not less than 12 inches from the ground, measuring from the bottom. Subsection (d)(6) is amended to comply with HB 1674 which allows a child support agency to give the department notice of a child support delinquency in order for a denial flag to be placed on the registration renewal. Previously, a final order was required. Transportation Code, §502.045, requires the department to adopt a list of evidentiary items sufficient to establish good reason for delinquent registration. The amendments to subsection (d) establish that valid reasons may include extensive repairs, being out of the country, using the vehicle only for seasonal use, military service, and storage of the vehicle. Evidence of a valid reason may include receipts, passport dates, and military orders.

Section 217.23 is renamed "Special Registration Permits" from "Temporary Registration Permits" to include more types of permits. Citations are updated throughout the section. The references to a manufacturer's rated carrying capacity of one ton is changed throughout to a gross weight of 10,000 pounds to correspond with HB 2357 which changed the terminology to correlate with the terminology used by Texas Department of Public Safety.

Section 217.24(c) amendments remove a duplicate reference to podiatrist, as it pertains to presenting evidence for a disabled plate or placard. In addition, HB 2357 removed the restrictions for a prescription written by a licensed registered nurse or physician assistant to only be effective in a county with a population of 125,000 or less. A licensed registered nurse or physician assistant can write a prescription for a disabled plate or placard regardless of the population.

New §217.26, Military Specialty License Plates, removes the military plate portion from §217.28 to its own section for ease of reference. The content of the section remains the same except that HB 2357 added four license plates. The Bronze Star, Bronze Star with Valor, and Distinguished Service Medal are added as meritorious service plates in accordance with HB 191 and HB 559. There are no fees for the first set of meritorious service plates. In accordance with HB 3580 and HB 2357, the surviving spouse of a Disabled Veteran may apply for one Surviving Spouse Disabled Veteran specialty license plate, if the Disabled Veteran license plates were issued to the veteran prior to the time of death, and the surviving spouse remains unmarried, there is no fee for the Surviving Spouse Disabled Veteran specialty license plate; however, registration fees and other applicable fees apply. SB 461 added United States Paratrooper and HB 1178 added Women Veteran as specialty license plates issued to members or former members of the U.S. Armed Forces.

In accordance with HB 2357, the word "Honorably Discharged" may be placed on the applicable plate if the applicant is a former member of the U.S. Air Force, Army, Coast Guard, Marine Corps, or Navy.

Section 217.28 is amended to delete references to military license plates which are moved to new §217.26. Separate references to the Legion of Merit plates have been removed since the fee has been incorporated into Chapter 504. Because HB 2357 deleted Parade license plates, they are deleted from the section. Classic Travel Trailer, Custom Vehicles, and Street Rods specialty plates are added to subsection (c)(2). Classic Travel Trailer has been divided from Classic Motor Vehicles, and Custom Vehicles and Street Rod plates were added by HB 890, 82nd Legislature, Regular Session, 2011. In order to avoid duplicate plates, Classic Motor Vehicle, Travel Trailer, Street Rod, and Exhibition Vehicle plates will not be issued an alpha numeric pattern if the pattern is already in use on another vehicle. Subsection (c)(3) clarifies that only one plate is issued for rental and travel trailers. Subsection (c)(8) explains the department issues the plate numbers, not the executive director. In subsection (d), the five-year registration period for foreign organization license plates is changed to seven years in accordance with HB 2357. Information regarding specialty plates created through the request of a sponsoring entity has been removed from subsection (g), including eligibility and fees, because the statute is specific.

Citations are updated in §217.29 and §217.30. The one-ton language is converted to gross weight in excess of 10,000 pounds in §217.30. References to in transit and token trailer plates are removed as in transit plates are related to motor vehicle dealers and token trailer plates are no longer necessary because of fleet registration.

Citations are updated in §217.31.

In §217.37 and §217.39, the fee for machinery license plates and water well drilling vehicles is reduced from $5.30 to $5 in accordance with HB 2553, 81st Legislative Session, 2009, which was effective September 1, 2011.

Citations are updated in §217.40 and §217.41. The one-ton language is converted to gross weight in excess of 10,000 pounds in §217.41.

In §217.42, citations are updated and trailers and semi-trailers are added as vehicles that may be registered as fleet vehicles. HB 2357 also authorized the department to allot credit for any vehicle removed from the fleet for the remaining full year increment in accordance with HB 2357.

Citations are updated in §217.43.

Sections 217.53 and 217.54 are amended, in accordance with HB 2357, to reflect that the automated registration and title is now funded by the $1 fee in all counties.

FISCAL NOTE

Linda Flores, Chief Financial Officer, has determined that for each of the first five years the repeal, amendments and new section as proposed are in effect, there will be fiscal implications for state or local governments as a result of enforcing or administering the repeal, amendments and new section. Currently, the department is not reimbursed for costs associated with applications for bonded titles. The new $15 fee is calculated to be revenue neutral. The department processed approximately 38,000 bonded titles in Fiscal Year 2011 and the projection for bonded titles is approximately 47,000 for Fiscal Year 2012. The approximate time to process a bonded title is approximately 35 minutes. The proposed fee will cover the costs of the transaction. Since the department was absorbing this cost, it will not expend approximately $235,000 the remainder of the fiscal year.

Randy Elliston, Director, Vehicle Titles and Registration Division, has certified that there will be no significant impact on local economies or overall employment as a result of enforcing or administering the repeal, amendments and new section.

PUBLIC BENEFIT AND COST

Mr. Elliston has also determined that for each year of the first five years the repeal, amendments and new section are in effect, the public benefit anticipated as a result of enforcing or administering the repeal, amendments and new section is to streamline procedures for titling and registration of motor vehicles.

There are no anticipated economic costs for persons required to comply with the repeal, amendments and new section except for the $15 administrative fee for a bonded title application. There will be no adverse economic effect on small businesses.

SUBMITTAL OF COMMENTS

Written comments on the repeal, amendments and new section may be submitted to Randy Elliston, Director, Vehicle Titles and Registration Division, 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 June 18, 2012.

STATUTORY AUTHORITY

The amendments are proposed under Transportation Code, §1002.001, which provides the Board of the Texas Department of Motor Vehicles with the authority to establish rules for the conduct of the work of the department, and Transportation Code, §§501.0041, 502.0021, 504.0011, and 520.003, which provide the Board of the Texas Department of Motor Vehicles with the authority to establish rules for each respective chapter of the Transportation Code.

CROSS REFERENCE TO STATUTE

Transportation Code, §§501.002, 501.006, 501.0275, 501.053, 502.001, 502.0023, 502.045 - 502.047, 502.056 - 502.057, 502.059 - 502.060, 502.093 - 502.095, 502.146, 502.252 - 502.255, 502.451 - 502.456, 502.491 - 502.492, 504.002, 504.005 - 504.0051, 504.007 - 504.008, 504.010, 504.201 - 504.202, 504.301, 504.3011, 504.307, 504.315, 504.317 (82nd Leg., Ch. 1296, §183), 504.317 (82nd Leg., Ch. 1281, §4), 504.400 - 504.406, 504.4061, 504.503, 504.516, 504.90, and 520.004.