INTRODUCTION. The Texas Department of Motor Vehicles (department) proposes amendments to 43 TAC §217.2, Definitions; §217.45, Specialty License Plates, Symbols, Tabs, and Other Devices; and §217.46, Commercial Vehicle Registration. These amendments are necessary to implement statutory changes made by the 86th Legislature, Regular Session (2019). Proposed amendments to these sections implement House Bill 1548, House Bill 3068, and House Bill 3171 by updating existing definitions and citations, and updating and establishing processes required by these bills.

EXPLANATION OF PROPOSED AMENDMENTS.

House Bill 1548 moved the definition of "golf cart" from Transportation Code, §502.001, to Transportation Code, §551.401; and transferred Transportation Code, Chapter 663, Subchapters A and B, to new Transportation Code, Chapter 551A. House Bill 1548 amended the definition of "motor vehicle" in Transportation Code, §501.002 by adding a reference to "off-highway vehicle" as defined by Transportation Code, §551A.001 and eliminating the references to "all-terrain vehicle" and "recreational off-highway vehicle." New Transportation Code, §551A.001 defines "off-highway vehicle" as an all-terrain vehicle, recreational off-highway vehicle, or utility vehicle. The department notes that House Bill 1755, 86th Legislature, Regular Session (2019), also amended the definition of "off-highway vehicle" in Transportation Code, §663.001, by adding sand rail. As a result of both bills, an off-highway vehicle under Transportation Code, §551A.001, is an all-terrain vehicle, recreational off-highway vehicle, utility vehicle, or sand rail.

House Bill 1548 requires the department to establish, by rule, a procedure for issuance of license plates to golf carts and unregistered off-highway vehicles, and authorizes the department to charge a fee of up to $10 to cover the costs of issuing the plates.

Proposed amendments implement House Bill 1548 by amending §217.2 to update the statutory references in the definitions of "all-terrain vehicle" and "recreational off-highway vehicle," and to add new definitions of "off-highway vehicle," "utility vehicle," and "sand rail" by reference to new Transportation Code, §551A.001. The phrase "a motor vehicle as defined by" is added to the definitions of moped, off-highway vehicle, sand rail, and utility vehicle or UTV under proposed amended §217.2(14), (18), (22), and (25) for consistency with existing definitions for "all-terrain vehicle or ATV" and "recreational off-highway vehicle or ROV" and because the statutory definition of "motor vehicle" under Transportation Code, §501.002 as amended includes a moped and an off-highway vehicle. Amendments to §217.2 also renumber the paragraphs.

The proposed amendments to §217.45 add a reference to new Transportation Code, Chapter 551A as added by House Bill 1548 and add the phrase "off-highway vehicle" to: the types of vehicles that are issued one license plate; the categories of license plates for which personalized plates are not available; and the types of license plates that are non-transferable between vehicles. The phrase "off-highway vehicle" is added to proposed amended §217.45(c)(3)(B) because Transportation Code, §551A.052 authorizes the department to establish a procedure to issue license plates to unregistered off-highway vehicles by rule. In addition, Transportation Code, §551A.052(b) allows a person to operate an unregistered off-highway vehicle on a highway in a manner authorized by Transportation Code, Chapter 551A, Subchapter D, only if the vehicle displays a license plate issued under §551A.052. The existing requirement in §217.27(b) of this chapter (relating to Vehicle Registration Insignia) that a vehicle display two license plates is applicable to vehicles registered under Chapter 502. "Off-highway vehicle" is added to proposed amended §217.45(c)(7)(E) because license plates for off-highway vehicles are authorized by Transportation Code, Chapter 551. Personalized license plates are authorized by Transportation Code, §504.0051 and §504.101. As such, license plates for off-highway vehicles are not eligible for personalization.

The phrase "off-highway vehicle" is added to proposed amended §217.45(e)(1)(B) because under §551A.052(d), off-highway vehicle license plates are only authorized for off-highway vehicles, do not expire, and may not be used by a subsequent owner of an off-highway vehicle. In addition, license plates are only eligible for transfer if the vehicle is a passenger vehicle with a gross weight of 6,000 pounds or less or a light truck with a gross weight of 10,000 pounds or less. Passenger vehicles and light trucks are defined in Transportation Code, §502.001 by reference to Transportation Code, §541.201. The phrase "off-highway vehicle" is defined in new Transportation Code, Chapter 551A as added by House Bill 1548.

Proposed new §217.45(k) regarding off-highway vehicles, establishes the process by which a county tax assessor-collector may issue an off-highway vehicle license plate and sets the fee for an off-highway vehicle license plate. The fee for an off-highway license plate is $10, which is the same fee charged for a license plate for a golf cart under existing §217.45(j). This fee is appropriate because the standard cost for the department to produce a license plate is $8. However, this cost does not include programming and the cost of the receipt. Setting the fee at $10 will account for all costs associated with issuance of the plate.

House Bill 3068 provides, in part, that a person who qualifies for a disabled veteran license plate under Transportation Code, §504.202 may use an embossed Texas disabled veteran license plate on a classic motor vehicle, custom vehicle, street rod, and on certain exhibition vehicles (as defined by Transportation Code, §504.501 and §504.502). The embossed disabled veteran license plate must have been issued in the same year as the model year of the vehicle and be approved for use by the department. House Bill 3068 also provides that any person may use a Texas license plate that is embossed with an alphanumeric pattern of a plate design that was issued the same year as the model year of the vehicle for vehicles that meet the requirements of the same two sections (Transportation Code, §504.501 and §504.502). Proposed amendments to §217.45 also include adding a reference to Transportation Code, §504.202 based on the statutory change authorizing the use of disabled veteran embossed license plates on classic motor vehicles, custom vehicles, street rods, and certain exhibition vehicles.

House Bill 3171 excludes "moped" from the definition of "commercial motor vehicle" in Transportation Code, §502.001(7). Amendments update the definition for "moped" by reference to Transportation Code, §541.0201 in §217.2, and add a reference to moped in §217.46 for consistency with the statutes as amended by House Bill 3171.

Additionally, the department proposes nonsubstantive changes throughout the text of §§217.2, 217.45, and 217.46. These nonsubstantive changes include reformatting and updating citations.

In conjunction with amending these rules, the department is also reconfiguring its internal systems. Therefore, the effective dates of the rules may be extended to correspond with completion of the programming necessary to fully implement the rules.

FISCAL NOTE AND LOCAL EMPLOYMENT IMPACT STATEMENT. Linda M. Flores, Chief Financial Officer, has determined that for each year of the first five years the amendments will be in effect, there will be minimal fiscal implications for state or local governments as a result of the enforcement or administration of the proposal. The issuance of the plate will result in positive revenue for the state, but programming in the department's Registration and Title System will be necessary to implement §217.45(k). In addition, the department is unable to determine how many off-highway vehicles that are currently titled will opt to receive an off-highway license plate and is unable to anticipate which counties or municipalities may or may not authorize operation of the off-highway vehicles. Jeremiah Kuntz, Director of the Vehicle Titles and Registration Division, has determined that there will be no measurable effect on local employment or the local economy as a result of the proposal.

PUBLIC BENEFIT AND COST NOTE. Mr. Kuntz has also determined that, for each year of the first five years the amended sections are in effect, the public benefits anticipated include improved rules that are consistent with statute. Mr. Kuntz anticipates there will be no costs to comply with these rules. The amendment authorizing a fee for issuance of license plates for off-highway vehicles is authorized by statute and is only applicable if a person wishes to operate the off-highway vehicle on a highway or otherwise wishes to obtain a license plate.

ECONOMIC IMPACT STATEMENT AND REGULATORY FLEXIBILITY ANALYSIS. Mr. Kuntz has also determined there will be no impact on small businesses, micro- business, or rural communities as a result of implementing these rules. Therefore, the department is not required to prepare a regulatory flexibility analysis as specified in Government Code, §2006.002.

TAKINGS IMPACT ASSESSMENT. The department has determined that no private real property interests are affected by this proposal 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, therefore, does not constitute a taking or require a takings impact assessment under the Government Code, §2007.043.

GOVERNMENT GROWTH IMPACT STATEMENT. The department has determined that during the first five years the proposed amendments are in effect, no government program would be created or eliminated. Implementation of the proposed amendments would not require the creation of new employee positions or elimination of existing employee positions. Implementation would not require an increase or decrease in future legislative appropriations to the department or an increase or decrease of fees paid to the department. The proposed amendments will not create a new regulation, or expand, limit, or repeal an existing regulation. Additionally, the proposed amendments do not affect the number of individuals subject to the rules' applicability and will not affect this state's economy.

REQUEST FOR PUBLIC COMMENT.

If you want to comment on the proposal, submit your written comments by 5:00 p.m. CST on September 30, 2019. A request for a public hearing must be sent separately from your written comments. Send written comments or hearing requests by email to rules@txdmv.gov or by mail to Office of General Counsel, Texas Department of Motor Vehicles, 4000 Jackson Avenue, Austin, Texas 78731. If a hearing is held, the department will consider written comments and public testimony presented at the hearing.

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 adopt rules that are necessary and appropriate to implement the powers and the duties of the department; and more specifically, Transportation Code, §501.0041, which authorizes the department to adopt rules to administer Chapter 501; Transportation Code, §502.0021, which authorizes the department to adopt rules to administer Chapter 502; Transportation Code, §504.0011, which authorizes the board to adopt rules to implement and administer Chapter 504; Transportation Code, §504.002 as amended by House Bill 1548, which authorizes the department to charge a fee to cover the costs of issuing license plates for golf carts or off-highway vehicles in an amount established by rule; Transportation Code, §551.402, which requires the department by rule to establish a procedure to issue license plates for golf carts and charge a fee not to exceed $10; and Transportation Code, §551A.052 as added by House Bill 1548, which requires the department by rule to establish a procedure to issue license plates for unregistered off-highway vehicles and charge a fee not to exceed $10.

CROSS REFERENCE TO STATUTE. Transportation Code, §§501.002, 502.001, 504.202, 504.501, 551.402, and 551A.052.