The Texas Department of Motor Vehicles (department) proposes amendments to §217.3, Motor Vehicle Titles.

EXPLANATION OF PROPOSED AMENDMENTS

The proposed amendments are necessary to implement the legislative requirements of HB 2741, 83rd Legislature, Regular Session, 2013; HB 2357, 82nd Legislature, Regular Session, 2011; and HB 2553, 81st Legislature, Regular Session, 2009.

The department proposes amendments to §217.3(a)(5), authorizing owners of trailers with a gross weight of 4,000 pounds or less to apply for and receive a Texas title. Proposed amendments to §217.3(a)(5)(A) delete "manufacturer's rated carrying capacity" related to the carrying capacity. The amendments are proposed in compliance with Transportation Code, §501.037, added by HB 2741, 83rd Legislature, Regular Session, 2013.

Proposed amendments to §217.3(a)(6) delete the requirement that the body, motor, and frame of an assembled vehicle must be manufactured by a motor vehicle manufacturer. Under the proposed amendments, the department may issue a title for an assembled vehicle that is assembled and completed with a body, motor, and frame, except that a motorcycle must have a frame and a motor, and a trailer or semitrailer will not have a motor. In addition, the vehicle must not be created from different vehicle classes, must have all federally required safety components, and cannot be a vehicle designed as a dune buggy, on track race car, or off road passenger vehicle. To be titled, an assembled motor vehicle must pass a required Automotive Service Excellence inspection by a Certified Master Automobile and Light Truck Technician. This inspection is required in addition to the inspection required under Transportation Code, Chapter 548. The amendments are proposed pursuant to Transportation Code, §501.0041, which provides the department may adopt rules to administer Chapter 501, Certificate of Title Act, and are intended to facilitate titling of assembled vehicles that are structurally stable.

The proposed amendments add §217.3(b)(2)(C), allowing an applicant to file a vehicle title application in a bordering county if the county tax assessor-collector office in which the owner resides is closed for more than one week, and if the tax assessor-collector in the bordering county agrees to accept the application. The amendments ensure compliance with Transportation Code, §501.023, as amended by HB 2741, 83rd Legislature, Regular Session, 2013.

The proposed amendments to §217.3(b)(3)(A) delete "model" and "manufacturer's rated carrying capacity" from the minimum information required to be included in the department application form for an initial title. Additionally, the amendments proposed to §217.3(b)(3)(D) provide that the department application for initial title require an applicant to provide the legal name and complete mailing address of the previous owner, if known. The amendments proposed to §217.3(b)(3)(E) require that the applicant's legal name be provided as stated on the identification presented with the application. The legal name shown on the identification establishes a standard for developing a customer-centered data base. The proposed amendments add "frame" to §217.3(b)(4), and also add §217.3(b)(5)(F), which specifies that documents related to bonded titles under amended subsection 217.3(g) are supporting documentation that must accompany an application for an initial title. The amendments are proposed in conformance with Transportation Code, §501.021, as amended by HB 2741, 83rd Legislature, Regular Session, 2013; and §501.0235, as added by HB 2357, 82nd Legislature, Regular Session, 2011.

Proposed amendments to §217.3(c)(1)(A)(i) delete "model" from the minimum information required to be included in the department's manufacturer's certificate of origin form, because some vehicles do not have models. Proposed amendments to §217.3(c)(1)(A)(ii) and §217.3(c)(4)(C)(iv) delete "manufacturer's rated carrying capacity" from the department's prescribed manufacturer's certificate of origin form, and corrected manufacturer's certificate of origin form, respectively. "Empty or Shipping weight" and "gross vehicle weight" are added as renumbered §217.3(c)(1)(A)(ii), and §217.3(c)(1)(A)(iii), respectively, as minimum information required to be included in the certificate of origin forms. The amendments implement Transportation Code, §501.023, as amended by HB 2553, 81st Legislature, Regular Session, 2009.

The proposed amendments to §217.3(c)(3)(B) exempt an applicant who is an active duty member of the U.S. Armed Forces, or is from the immediate family of an active duty member returning to Texas with proof of the active duty status of the family member, from vehicle identification number (VIN) verification requirements applicable to a motor vehicle last registered or titled in a foreign county and brought into the United States. The amendments are proposed under the authority of Transportation Code, §501.030, as amended by HB 2357, 82nd Legislature, Regular Session, 2011.

The proposed amendments delete existing §217.3(c)(6), which was effective through August 31, 2013. Existing §217.3(c)(7), renumbered as §217.3(c)(6), details the identification requirements an applicant for a motor vehicle title must meet, effective September 1, 2013. Proposed amendments to renumbered §217.3(c)(6)(B) clarify the identification procedures applicable to leasing companies by permitting the company to submit the identification of the lessee as the "registrant," or to submit the identification of a company employee signing the application for the leasing company, and including a printed business card or employer authorization matching the employee identification. Amendments proposed to renumbered §217.3(c)(6)(C) clarify the identification required when a power of attorney is used in connection with an application for title. Proposed amendments to §217.3(c)(6)(D) clarify when identification documents are considered to be current. The proposed amendments to §217.3(c)(6)(E) permit the use of an original or a photocopy of a letter of authorization, a business card, or a power of attorney as acceptable identification documents under the subsection. The amendments to renumber existing §217.3(c)(6)(E) as §217.3(c)(6)(F) are proposed in compliance with Transportation Code, §501.021, as amended by HB 2741, 83rd Legislature, Regular Session, 2013; and §501.0235, as added by HB 2357, 82nd Legislature, Regular Session, 2011.

Amendments proposed to §217.3(d)(1) and §217.3(e)(1) mandate that applications for an initial title and for a certified copy of a title must be accompanied by the same required identification documents. The amendments to §217.3(d)(2) provide that when a title is issued, it will be mailed or delivered to the applicant or, if there is a lien, to the lienholder, unless the title is an electronic record of a title, in which case it will not be mailed. The amendments proposed to §217.3(e)(1)(D) extend from six to twelve months, the time during which the department considers an expired identification document to be "current". This is the same time permitted for an initial title application under amended §217.3(c)(6)(D). The purpose of the amendments is to create a standard time period during which the department will accept an expired identification. The amendments are proposed in compliance with Transportation Code, §501.021, as amended by HB 2741, 83rd Legislature, Regular Session, 2013; and §501.134, as amended by, and §501.0235, as added by, HB 2357, 82nd Legislature, Regular Session, 2011.

The amendments proposed to §217.3(e)(2) prohibit a certified copy of a title from being issued until at least 14 days after the original title was issued. Proposed amendments to §217.3(e)(4) also prohibit an additional certified copy of a title from being issued more often than once every 30 days. Additionally, the amendments proposed to the paragraph provide that the department will eliminate the designation "Certified Copy" when there is a subsequent title. The proposed amendments are required by HB 2357, 82nd Legislature, Regular Session, 2011, which repealed Transportation Code, §501.133, and amended §501.134.

The department proposes amendments to §217.3(g) revising requirements and procedures related to applications for bonded titles. The proposed amendments permit an applicant for a bonded title to file a bond with the department if the vehicle is in possession of the applicant and no lien is recorded on the vehicle record; a lien is recorded, but is 10 or more years old; or if there is a recorded lien less than 10 years old; and a release of lien(s) or certification of the bonding company that any liens have been satisfied is attached to a valid bond. The proposed amendments clarify that for a VIN verified by a law enforcement officer, the officer must hold an auto theft certification and delete verification by a department Regional Service Center. If the department issues a rejection letter, the applicant may obtain a bond and make application to the county for a bonded title. The applicant must submit to the county the rejection letter, bond, certification of lien satisfaction, and any other required documentation. The surety must report payment of any judgment to the department within 30 days, in accordance with Transportation Code, §501.053. The amendments are proposed in compliance with Transportation Code, §§501.051-501.053, as amended by HB 2741, 83rd Legislature, Regular Session, 2013.

The proposed amendments to existing §217.3(g)(2), renumbered as §217.3(h), revises procedures for appeal to the county if the department refuses to issue, revokes, or suspends a title. The proposed amendments to existing §217.3(h), renumbered as §217.3(i), provide that in addition to a notarized affidavit, the department may rescind, cancel, or revoke an application for a title if a county-stamped affidavit is completed and presented. In addition, the proposed amendments renumber existing §217.3(i) as §217.3(j), and existing §217.3(j) as §217.3(k). The amendments are proposed in compliance with Transportation Code, §§501.051-501.053, as amended by HB 2741, 83rd Legislature, Regular Session, 2013.

Nonsubstantive amendments to correct punctuation, grammar, and capitalization were made throughout the proposed amended sections.

FISCAL NOTE

Ms. Linda M. Flores, Chief Financial Officer, has determined that for each year of the first five years the amendments as proposed are in effect, there will be minimal fiscal implications for state or local governments.

Mr. Randy Elliston, Director of the 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 amendments.

PUBLIC BENEFIT AND COST

Mr. Elliston has also determined that for each year of the first five years the amendments are in effect, the public benefit anticipated as a result of enforcing or administering the amendments is to streamline procedures for the titling of motor vehicles. Sureties may incur additional cost in bonded title transactions to research vehicle records. However, there is no requirement that sureties issue bonds for titles. Some sureties already research the records to weigh the risk of underwriting the bond. Sureties that start to research the records will reduce their risk of a bond claim. The anticipated economic costs for persons required to comply with the amendments as proposed are minimal, limited to the fees required for a specific transaction. There will be minimal adverse economic effect on small businesses or individuals.

SUBMITTAL OF COMMENTS

Written comments on the proposed amendments may be submitted to David Duncan, General Counsel, Texas Department of Motor Vehicles, 4000 Jackson Avenue, Austin, Texas 78731. The deadline for receipt of comments is 5:00 p.m. on December 30, 2013.

STATUTORY AUTHORITY

The amendments are proposed under Transportation Code, §1002.001, which provides the board of the Department of Motor Vehicles with the authority to adopt rules that are necessary and appropriate to implement the powers and duties of the Texas Department of Motor Vehicles under the Transportation Code; Transportation Code, §501.0041, which provides the department may adopt rules to administer Chapter 501, Certificate of Title Act; and more specifically, Transportation Code, §501.0235, which authorizes the department to require an applicant for a title to provide current personal identification as determined by department rule, and §501.134, which authorizes the department to provide by rule the manner by which an owner or lienholder disclosed on a lost or destroyed title may obtain a certified copy of the lost or destroyed title.

CROSS REFERENCE TO STATUTE

Transportation Code, §§501.021, 501.023, 501.0235, 501.030, 501.037, 501.051 - 501.053, and 501.134.