The Texas Department of Motor Vehicles (department) adopts the repeal of Chapter 217, Subchapters A - H, §§217.1 - 217.9, 217.20 - 217.33, 217.35 - 217.44, 217.53 - 217.55, 217.60 - 217.68, 217.70 - 217.81, 217.90 - 217.93, 217.100 - 217.102, and 217.111, and adopts new Subchapters A - I, §§217.1 - 217.14, 217.21 - 217.56, 217.71 - 217.73, 217.81 - 217.89, 217.101 - 217.106, 217.121 - 217.124, 217.141 - 217.143, 217.161, and 217.181 - 217.192. The repeals are adopted without changes to the proposal as published in the December 19, 2014, issue of the Texas Register (39 TexReg 9818). New §§217.2, 217.6, and 217.54 are adopted with changes to the proposed text as published in the December 19, 2014, issue of the Texas Register (39 TexReg 9818) and the rest of the new sections are adopted without changes.

EXPLANATION OF ADOPTED REPEALS AND NEW SUBCHAPTERS

The department conducted a review of its rules in compliance with Government Code, §2001.039. Notice of the department's intention to review was published in the December 19, 2014, issue of the Texas Register (39 TexReg 10037).

Section 217.2 is being republished to reflect a change based on a comment received. Section 217.6 is being republished with a statutory correction. Section 217.54 is being republished with a minor grammatical change.

As a result of the review, the department has determined that a comprehensive restructuring and renumbering of the chapter was needed to improve clarity and to simplify future amendments to the chapter. Most significantly, this adoption 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 broken up into twelve new sections, and §217.22 into fourteen new sections. Adding these new sections necessitates renumbering nearly all of the current Chapter 217 sections.

Other 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 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 adopted structural and renumbering changes, the department has also identified various substantive changes that should be made to Chapter 217, and is identifying additional 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 are adopted. Therefore, with the exception of the 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 were proposed. However, some changes to correct punctuation, grammar, capitalization, and references were proposed and are being adopted as necessary.

The adopted 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 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 adopted as §217.14, Exemptions from Title. In addition, the text of current §217.3(j), Discharge of Liens, is adopted as a new section within new Subsection E, Title Liens and Claims, as described in more detail below.

Adopted 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. New §217.2(20) is amended for clarity. 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 217.6(a)(3)(B) is amended to correct a statutory citation. 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 §217.9(d). Finally, the title of §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 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 adopted structure. Section 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).

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, adopted amendments to §217.54 implement House Bill 2305, 83rd Regular Session, regarding single sticker for commercial fleet vehicles and, as described above, a minor grammatical amendment not originally proposed is being adopted as well.

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 adoption moves all sections in current Subchapter E ("Salvage Vehicle Dealers") to a new Subchapter I, as described below. 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 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 §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 was made.

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

The adoption 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).

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

COMMENT

The department received one written comment from John R. Ames, Dallas County Tax Assessor-Collector with regard to §217.2(20). Mr. Ames expressed a preference that should the department proceed with new language under consideration, the department further define "involved parties" to clarify who is authorized to complete the statement of fact.

RESPONSE

The department modified the proposed definition of "involved party" to clarify that an involved party is the seller or an agent of the seller involved in the motor vehicle transaction.

STATUTORY AUTHORITY

The new subchapter is adopted 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.