INTRODUCTION. The Texas Department of Motor Vehicles (department) proposes amendments to 43 TAC §§217.2, 217.4, 217.23, 217.28, 217.36, 217.45, 217.46, and 217.89, concerning titling and registering motor vehicles. The amendments to §§217.4, 217.23, 217.28, 217.45, 217.46, and 217.89 are necessary to implement amended Transportation Code §§501.023, 501.0234, 501.030, 502.040, 502.041, 502.407, 520.006, and 521.144 authorizing registration and title applications to be processed by any county tax assessor-collector willing to accept the application under Senate Bill (SB) 876, 87th Legislature, Regular Session (2021). The amendment to §217.36 is necessary to complete the implementation of Transportation Code §707.20 and §707.21 under House Bill (HB) 1631, 86th Legislature, Regular Session (2019) by removing obsolete references to photographic traffic signal enforcement programs. The amendment to §217.2 removes the term "identification certificate" as a defined term and is nonsubstantive.

EXPLANATION. Senate Bill 876 expands title and registration services beyond those county tax assessor-collectors required to accept a title or registration application in statute to any county tax assessor-collector willing to accept the application. Proposed §§217.4, 217.23, 217.28, 217.45, 217.46, and 217.89 address the expansion by adding a reference to "a county tax assessor-collector who is willing to accept the application" to those existing sections that specified a county tax assessor-collector. Sections that did not specify a county tax assessor-collector or just the process have not been amended.

The department met with the Customer Service Advisory Committee twice in considering this proposal. The department appreciates the committee members' serious consideration of the issues presented by SB 876 and the members' comments.

Implementation of SB 876 also involves significant programming modifications to the department's Registration and Title System (RTS) to enable the routine processing of out of county applications and the distribution of fees as specified in amended Transportation Code §520.006, which applies if a willing county tax assessor-collector is collecting fees and processing the application on behalf of a county tax assessor-collector who is designated by statute to process the application.

The following paragraphs address the amendments in this proposal.

The amendment to §217.2 removes the term "identification certificate" as a defined term and redesignates the following definitions accordingly. The term is never used alone as a defined term. The term is used in multiple sections of Chapter 217. It usually refers to a document that is then described as a form of personal identification such as a driver's license or identification card, but not in a consistent manner. In §217.4 and §217.89, the term is used and then described similarly to its defined use in §217.2, as relating to a vehicle inspection under Transportation Code Chapter 548 and §501.030. Chapter 548 refers to the document as a "vehicle inspection report." As such, the term is unnecessary as a defined term because each use redefines the term.

The amendment to §217.4(b)(1) removes the statement "as selected by the applicant." In this section, the term "applicant" refers to the owner or purchaser of the vehicle. The change conforms the section with SB 876, which repeals Transportation Code §501.023(e) and §501.0234(e), which required the purchaser to choose the county the title application was to be filed in. The amendment to §217.4(b)(2) conforms the section with the SB 876 "any willing county" amendment to Transportation Code §501.023(a). The amendment to §217.4(c)(4) removes the requirement for the applicant to provide the seller's mailing address, which is not required in statute or the applicable department form. The amendment to §217.4(d)(4) replaces the term "identification certificate" with "vehicle inspection report" based on the reasons addressed in the prior discussion of the amendment to §217.2.

The amendments to §217.23(c) and (d) are necessary to conform the section with the SB 876 any willing county amendment to Transportation Code §502.040 and §502.041.

The amendments to §217.28(a) and (c) are necessary to conform the section with the SB 876 any willing county amendment to Transportation Code §502.041. The amendment also adds new §217.28(f) to create a definition of a closed county by rule for purposes of Transportation Code §502.407(c), as required by SB 876. Proposed §217.28(f) is based on the prior closed definition in §217.4(b)(2), which is being amended as previously discussed in this proposal to conform §217.4 to Transportation Code §501.023 as amended by SB 876. The amendment to §217.28(e)(5) replaces the existing sentence, because proration is covered in §217.45(d)(2). Additionally, the department proposes nonsubstantive amendments to §217.28(b), (c), and (d) to conform to current statutory references by replacing the term "license plate" with the term registration and otherwise referring to "registration renewal notice" and clarifying that an applicant may also renew a vehicle registration via the internet without a registration renewal notice.

The amendments to §217.36(b) and (d) are necessary to remove obsolete references to photographic traffic signal enforcement programs. House Bill 1631 prohibited the use of such programs with the enactment of Transportation Code §707.20 and §707.21. The department timely implemented HB 1631 and ceased the prohibited actions; however, a change was not made to the rule to remove the provisions.

The amendments to §217.45(b)(3), (d)(3)(B) and (E), (e)(1)(A), and (f)(1) are necessary to conform the section with the SB 876 any willing county amendment to Transportation Code §502.040 and §502.041, including by changing the reference from "the" to "a" county tax assessor-collector. The department has also proposed amending §217.45(f)(1) to remove the reference to log loader license plates in a replacement paragraph, because log loader plates cannot be replaced.

The amendments to §217.46(d)(3), (e)(1), and (f) are necessary to conform the section with the SB 876 any willing county amendment to Transportation Code §502.041. The §217.46(d)(3) amendment removes the reference to "as indicated on the License Plate Renewal Notice" because an "appropriate" county may be a willing county. Similarly, §217.46(f) amendment removes the requirement to go to "the county in which the owner resides" for replacement license plates. The amendments to §217.46(c)(1)(C) and (4) substitute the term "vehicle identification number" for "motor number." The amendment to §217.46(c)(3)(B)(ii) removes the requirement for "tire size" because the department does not collect the information in this context. The amendments to §217.46(d)(2), (3), and (4) conform to current statutory references by replacing the term "license plate renewal notice" with the term "registration renewal notice." Finally, the amendment to §217.46(d)(2) also replaces the word "mail" with "send" should additional distribution methods be adopted in the future.

The amendment to §217.89(b) is necessary to conform the section with the SB 876 any willing county amendment to Transportation Code §501.023(a). The amendments to §217.89(c) and (d)(3)(B) are based on a review of the enacting statute HB 3588, 78th Legislature, Regular Session (2003), which established the $65 rebuilder fee and submission requirements. House Bill 3588 did not have a savings clause for the prior inspections. The department is proposing to apply the change prospectively and not to any existing title issued under the process. The amendments to §217.89(d)(2)(D) and (G) are to update the rule to conform with the existing process that does not require the owner's address, but does require the rebuilder's name, address, and signature. The amendments to §217.89(d)(3)(A) update the requirement to refer to the "authorization or certificate number and the date of inspection" instead of a "sticker" number and "expiration." The amendment to §217.89(d)(5) updates the statutory reference to Transportation Code §502.046, which was transferred, redesignated, and amended from Transportation Code §502.153 by HB 2357 Acts 2011, 82nd Legislature, Regular Session (2012).

FISCAL NOTE AND LOCAL EMPLOYMENT IMPACT STATEMENT. Glenna Bowman, Chief Financial Officer, has determined that for each year of the first five years the proposed new section will be in effect, there will be a one-time technology implementation cost of $70,000 in the first year to implement programming for the department's automated systems, and that while SB 876 could result in shifts of which counties perform the transactions and receive registration and title fees, SB 876 and this proposal do not alter the overall number of applications or revenues that would be collected. Therefore, there is no fiscal impact to the state or local governments as a result of the enforcement or administration of the proposal.

Roland D. Luna, Sr., 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, because the overall number of applications will not be affected.

PUBLIC BENEFIT AND COST NOTE. Mr. Luna has also determined that, for each year of the first five years the proposed rules are in effect, the public benefits include establishing rules to implement SB 876 and the options it creates for vehicle owners to register and title their vehicles when they are away from their county of residence or another county's tax office is more convenient to their location. The amendment to §217.36 removes obsolete rule text that may be confusing to readers.

Mr. Luna anticipates that there will be no additional costs on a regulated person to comply with these rules because the rules do not establish any additional requirements on a regulated person beyond the requirements of statute.

The sections implementing SB 876 allow a county tax assessor-collector to choose to accept out of county applications, which may generate costs, but those are business decisions that result from the statute not from the rule. Likewise, a dealer or owner has the choice to apply for title and initial registration, or registration renewal, in a statutorily designated county or a willing county. Costs may result from those business decisions, but they arise from the statute not the rule.

The removal of obsolete language in §217.36 to comply with statute does not result in a cost.

ECONOMIC IMPACT STATEMENT AND REGULATORY FLEXIBILITY ANALYSIS. As required by Government Code §2006.002, the department has determined that the proposed amended sections will not have an adverse economic effect on small businesses, micro-businesses, or rural communities.

The proposal amends §§217.4, 217.23, 217.28, 217.45, 217.46, and 217.89 to comply with statute and imposes no requirements not specified in statute. In addition, SB 876 does not authorize the department to use its discretion in implementing the SB 876 requirements.

The removal of obsolete language in §217.36 to comply with statute does not result in a cost or the need for a regulatory flexibility analysis.

The department has determined that the proposed amended sections will not have a financial effect, on any small businesses, micro-businesses, or rural communities. Therefore, the department is not required to prepare a regulatory flexibility analysis under 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 Government Code, §2007.043.

GOVERNMENT GROWTH IMPACT STATEMENT. The department has determined that each year of the first five years the proposed new section is in effect, the proposed rule:

- will not create or eliminate a government program;

- will not require the creation of new employee positions or the elimination of existing employee positions;

- will not require an increase or decrease in future legislative appropriations to the department;

- will not require an increase or decrease in fees paid to the department;

- will not create new regulation;

- will not expand existing regulations;

- will repeal existing regulations in §217.36;

- will not increase or decrease the number of individuals subject to the rule's applicability; and

- will not positively or adversely affect the Texas economy.

REQUEST FOR PUBLIC COMMENT.

If you want to comment on the proposal, submit your written comments by 5:00 p.m. CST on December 13, 2021. 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 department proposes amendments to §217.2 and §217.4 under Transportation Code §§501.0041, 502.0021, 520.003, and 1002.001.

- Transportation Code §501,0041 authorizes the department to adopt rules to administer Transportation Code Chapter 501.

- Transportation Code §502.0021 authorizes the department to adopt rules to administer Transportation Code Chapter 502.

- Transportation Code §520.003 authorizes the department to adopt rules to administer Transportation Code Chapter 520,

- Transportation Code §1002.001 authorizes the board to adopt rules that are necessary and appropriate to implement the powers and the duties of the department.

CROSS REFERENCE TO STATUTE. Transportation Code §§501.023, 501.0234, 501.030, 502.040, 502.041, 502.407, 520.006, 521.144, 707.020 and 707.021.