The Texas Department of Motor Vehicles (department) proposes the repeal of Chapter 217, Subchapters A - H, and proposes new Subchapters A - I.

EXPLANATION OF PROPOSED REPEALS AND NEW SUBCHAPTERS

The department conducted a review of its rules in compliance with Government Code, §2001.039. Notice of the department's plan to review was published in the April 18, 2014, issue of the Texas Register (39 TexReg 3261).

As a result of the review, the department has determined that a comprehensive restructuring and renumbering of the chapter is needed to improve clarity and to simplify future amendments to the chapter. Most significantly, this proposal breaks up current §217.3, Motor Vehicle Titles, and current §217.22, Motor Vehicle Registration, into shorter, more accessible, and more easily comprehended sections; §217.3 is proposed to be broken up into twelve new sections, and §217.22 into fourteen new sections. Adding these new sections makes it necessary to renumber nearly all of the current Chapter 217 sections.

Other proposed structural changes include moving the sections governing salvage vehicle dealers, which currently comprise Subchapter E, to a new Subchapter I. The department anticipates that under a future proposed rule change, the salvage vehicle dealer subchapter will be removed from Chapter 217 entirely and relocated to Chapter 215, which governs motor vehicle distribution. Placing these sections in the final subchapter of Chapter 217 now will allow the eventual deletion of that subchapter without leaving a gap in the proposed Chapter 217's subchapter lettering scheme. In addition, those sections of current Subchapter A addressing liens are moved to a new Subchapter E governing liens and insurance claims.

In addition to these proposed structural and renumbering changes, the department has also identified various substantive changes that should be made to Chapter 217, and is identifying additional proposed substantive changes to complete the rule review process. To simplify the rule review process, the department will propose most of the substantive changes after the renumbering and structural changes of the current proposal are adopted. Therefore, with the exception of the proposed amendments to §217.54, described in more detail in the paragraph below regarding changes to Subchapter B, relatively few substantive changes to the text of Chapter 217 are currently proposed. However, some changes to correct punctuation, grammar, capitalization, and references are included as necessary.

The proposed changes to Chapter 217 are described by subchapter.

Subchapter A ("Motor Vehicle Titles") is renumbered and restructured as follows. Current §217.3 is broken up into the following proposed new sections of Subchapter A: §217.3, Motor Vehicle Titles (current §217.3(a), except §217.3(a)(4)); §217.4, Initial Application for Title (current §217.3(b)); §217.5, Evidence of Motor Vehicle Ownership (current §217.3(c)); §217.6, Title Issuance (current §217.3(d)); §217.7, Replacement of Title (current §217.3(e)); §217.8, Second Hand Vehicle Transfers (current §217.3(f)); §217.9, Bonded Title (current §217.3(g)); §217.10, Appeal to the County (current §217.3(h)); §217.11, Rescission, Cancellation or Revocation by Affidavit (current §217.3(i)); and §217.12, Fees (current §217.3(k)). The text of current §217.3(a)(4) is proposed as §217.14, Exemptions from Title. In addition, the text of current §217.3(j), Discharge of Liens, is proposed as a new section within new Subsection E, Title Liens and Claims, as described in more detail below.

Proposed substantive changes to the current text of Subchapter A are as follows. Section 217.1, Purpose and Scope, changes references to "certificates of title" to "titles" to ensure applicability to a certificate or record of title issued under Transportation Code, §501.024. Section 217.2(8) clarifies the definition of an "exempt agency" as a governmental body exempt from paying not only registration fees but also title fees. Section 217.2(11) corrects a reference from "Transportation Code, §548.256" to "Transportation Code, Chapter 548." Two definitions in the current text, §217.2(20) ("semitrailer") and §217.2(22) ("token trailer"), are deleted as unnecessarily duplicative of statutory language, and §217.2 is renumbered internally to account for these deletions. Current §217.3(b)(4), addressing vehicle identification numbers, is deleted as no longer needed in the new §217.4, Initial Application for Title. Section 217.4(d)(4) changes a reference from "Transportation Code, §548.256" to "Transportation Code, Chapter 548" for clarity. Section 217.9(e)(6) changes the required out-of-state inspection form required to obtain a bonded title when no Texas record exists from a specific Texas Department of Public Safety form to the out-of-state vehicle inspection form described by proposed §217.9(d). Finally, the title of proposed §217.10 is shortened to "Appeal to the County."

Subchapter B ("Motor Vehicle Registration") is renumbered and restructured as follows. Current §217.22 is broken up into the following proposed sections of Subchapter B: §217.23, Initial Application for Vehicle Registration (current §217.22(b), except §217.22(b)(4))); §217.24, Vehicle Last Registered in Another Jurisdiction (current §217.22(b)(4), except §217.22(b)(4)(E)); §217.25, Out-of-State Vehicles (current §217.22(g)); §217.26, Identification Required (current §217.22(b)(4)(E)); §217.27, Vehicle Registration Insignia (current §217.22(c)); §217.28, Vehicle Registration Renewal (current §217.22(d), except §217.22(d)(6) and §217.22(d)(7)); §217.30, Refusal to Renew Registration for Delinquent Child Support (current §217.22(d)(6)); §217.31, License Plate Reissuance Program (current §217.22(d)(7)); §217.32, Replacement of License Plates, Symbols, Tabs, and Other Devices (current §217.22(e)); §217.33, Commercial Farm Motor Vehicles, Farm Trailers, and Farm Semitrailers (current §217.22(f)); §217.34, Electric Personal Assistive Mobility Device (current §217.22(h)); §217.35, Neighborhood Electric Vehicle (current §217.22(i)); §217.36, Refusal to Register by Local Government and Record Notation (current §§217.22(j), (k), (l), and (m)); and §217.37, Fees (current §217.22(n)).

Also within Subchapter B, §217.29, Vehicle Registration Renewal via Internet, retains the same section number in both the current and the proposed structure. The proposed §217.49, Water Well Drilling Equipment and Vehicles, combines the text of two current rules, §217.36, Water Well Drilling Equipment, and §217.39, Water Well Drilling Vehicles.

The other sections in Subchapter B are renumbered as follows: §217.21, Purpose and Scope (current §217.20); §217.22, Definitions (current §217.21); §217.38, Registration Fee Credit: Application (current §217.32); §217.39, Registration Fee Credit: Nontransferable (current §217.33); §217.40, Special Registration Permits (current §217.23); §217.41, Disabled Person License Plates and Identification Placards (current §217.24); §217.42, Construction Machinery Criteria (current §217.25); §217.43, Military Specialty License Plates (current §217.26); §217.44, Privately Owned Buses (current §217.27); §217.45, Specialty License Plates, Symbols, Tabs, and Other Devices (current §217.28); §217.46, Commercial Vehicle Registration (current §217.30); §217.47, Vehicle Emissions Enforcement System (current §217.31); §217.48, Machinery (current §217.35); §217.50, Equipment and Vehicles Within Road Construction Projects (current §217.37); §217.51, Change of Classification: Truck and Truck-Tractors (current §217.38); §217.52, Marketing of Specialty License Plates Through a Private Vendor (current §217.40); §217.53, Removal of License Plates and Registration Insignia Upon Sale of Motor Vehicle (current §217.41); §217.54, Registration of Fleet Vehicles (current §217.42); §217.55, Exempt and Alias Vehicle Registration (current §217.43); and §217.56, Registration Reciprocity Agreements (current §217.44).

Proposed substantive changes from the current text of Subchapter B are as follows. Citation to Transportation Code, §502.055, is added to clarify §217.44, Privately Owned Buses. Repetitive language is deleted from, and a clarifying citation to Transportation Code, Chapter 551 is added to, §217.45, Specialty License Plates, Symbols, Tabs, and Other Devices. A citation to Transportation Code, §502.055, replaces an incorrect citation in §217.46(c)(2)(A). Finally, proposed amendments to §217.54 implement House Bill 2305, 83rd Regular Session, regarding single sticker for commercial fleet vehicles.

The sections in Subchapter C ("Registration and Title System") are renumbered as follows: §217.71, Automated Vehicle Registration and Title System (current §217.53); §217.72, Automated Equipment (current §217.54); and §217.73, Agreement (current §217.55).

The substantive changes to Subchapter C include replacing the term "certificates of title" with "titles" in §217.71 to reflect the increasing importance of electronic titles, and the addition of a statutory reference to Transportation Code, §502.356, and other language to clarify §217.72(c).

The sections in Subchapter D ("Non-Repairable and Salvage Motor Vehicles") are renumbered as follows: §217.81, Purpose and Scope (current §217.60); §217.82, Definitions (current §217.61); §217.83, Requirement for Non-repairable or Salvage Vehicle Title (current §217.62); §217.84, Application for Non-repairable or Salvage Vehicle Title (current §217.63); §217.85, Replacement of Non-repairable or Salvage Motor Vehicle Ownership Documents (current §217.64); §217.86, Dismantling, Scrapping, or Destruction of Motor Vehicles (current §217.65); §217.87, Rights of Holder of Non-repairable or Salvage Motor Vehicle Documents (current §217.66); §217.88, Sale, Transfer, or Release of Ownership of a Non-repairable or Salvage Motor Vehicle (current §217.67); and §217.89, Rebuilt Salvage Motor Vehicles (current §217.68).

The substantive changes to Subchapter D include replacing references to "certificates of title" to "titles" in §217.81 and §217.82 to ensure applicability to a certificate or record of title issued under Transportation Code, §501.024, and the correction of an erroneous internal citation in §217.88(g)(2)(B).

The proposal moves all sections in current Subchapter E ("Salvage Vehicle Dealers") to a new Subchapter I, as described below. The proposed Subchapter E (to be titled "Title Liens and Claims") contains those sections currently in Subchapter A governing title liens and insurance claims, which are grouped into a single subchapter and renumbered as follows: §217.101, Landowner's Lien (current §217.5); §217.102, Child Support Lien (current §217.6); §217.103, Restitution Liens (current §217.7); §217.104, Electronic Lien Title Program (current §217.8); §217.105, Insurance Company Claims (current §217.9); and §217.106, Discharge of Liens (current §217.3(j)).

Substantively, the text of the sections moved to proposed Subchapter E corrects citations to rules in this chapter.

The sections in Subchapter F ("Motor Vehicle Record Information") are renumbered as follows: §217.121, Purpose and Scope (current §217.90); §217.122, Definitions (current §217.91); §217.123, Access to Motor Vehicle Records (current §217.92); and §217.124, Cost of Motor Vehicle Records (current §217.93).

A substantive change in Subchapter F deletes references to repealed and irrelevant statutes in proposed §217.123.

The sections in Subchapter G ("Inspections") are renumbered as follows: §217.141, Purpose and Scope (current §217.100); §217.142, Definitions (current §217.101); and §217.143, Inspection Requirements (current §217.102). No substantive change to the text of these sections is proposed.

The sole section in Subchapter H ("Deputies") is renumbered §217.161 (currently §217.111), with no proposed substantive change to the text.

The proposal moves all sections currently in Subchapter E ("Salvage Vehicle Dealers") to a newly created Subchapter I, renumbering these sections as follows: §217.181, Purpose and Scope (current §217.70); §217.182, Definitions (current §217.71); §217.183, Classification of Salvage Vehicle Dealer Licenses (current §217.72); §217.184, Salvage Vehicle Dealer License (current §217.73); §217.185, Salvage Vehicle Agent License (current §217.74); §217.186, Investigation, Report by the Department, and Issuance of License (current §217.75); §217.187, Place of Business (current §217.76); §217.188, Change of Licensee's Status (current §217.77); §217.189, License Renewal (current §217.78); §217.190, Licensee Duties (current §217.79); §217.191, Record of Purchases, Sales and Inventory (current §217.80); and §217.192, Administrative Sanctions and Procedures (current §217.81).

Proposed substantive changes to the text of the sections moved into new Subchapter I include a correction to the internal numbering of §217.182, and the addition in §217.186(b) of a reference to proposed §217.192.

In addition to the proposed substantive changes described above, other changes are made throughout the proposed new subchapters to revise terminology for consistency with other department rules and with current department practice, and nonsubstantive amendments are proposed to correct punctuation, grammar, capitalization, and references throughout the proposed amended sections.

FISCAL NOTE

Linda M. Flores, Chief Financial Officer, has determined that for each of the first five years the repeals and new subchapters as proposed are in effect, there will be minimal fiscal implications for state or local governments as a result of enforcing or administering the repeals and new subchapters.

Jeremiah Kuntz, 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 repeals and new subchapters.

PUBLIC BENEFIT AND COST

Mr. Kuntz has also determined that for each year of the first five years the repeals and new subchapters are in effect, the public benefit anticipated as a result of adoption of the proposed repeal, and new subchapters will be accuracy and clarity of the department's rules and greater protection for the traveling public on public roads and highways in Texas. There are no anticipated economic costs for persons required to comply with the repeals and new subchapters as proposed. There will be no adverse economic effect on small business or micro-businesses.

TAKING IMPACT ASSESSMENT

The department has determined that this proposal affects no private real property interests and that this proposal does not restrict or limit an owner's right to property that would otherwise exist in the absence of government action, and so does not constitute a taking or require a takings impact assessment under the Government Code, §2007.043.

SUBMITTAL OF COMMENTS

Written comments on the proposed repeals and new subchapters may be submitted to David D. Duncan, General Counsel, Texas Department of Motor Vehicles, 4000 Jackson Avenue, Austin, Texas 78731 or by email to rules@txdmv.gov. The deadline for receipt of comments is 5:00 p.m. on January 19, 2015.

STATUTORY AUTHORITY

The new sections 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 department under the Transportation Code.

CROSS REFERENCE TO STATUTE

Transportation Code, §502.0023, §502.047, and Chapters 551, 643, 645, 646, and 648.