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AN ACT
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relating to the sale and use of unregistered vehicles, including |
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the issuance and use of temporary tags on vehicles. |
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�������BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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�������SECTION�1.��Subsection (d), Section 501.022, Transportation |
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Code, is amended to read as follows: |
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�������(d)��Subsection (c) does not apply to a motor vehicle |
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operated on a public highway in this state with a metal dealer's |
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license plate or a dealer's or buyer's temporary [cardboard] tag |
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attached to the vehicle as provided by Chapter 503. |
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�������SECTION�2.��Subsections (a) and (c), Section 503.038, |
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Transportation Code, are amended to read as follows: |
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�������(a)��The department may cancel a dealer's general |
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distinguishing number if the dealer: |
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�������������(1)��falsifies or forges a title document, including an |
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affidavit making application for a certified copy of a title; |
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�������������(2)��files a false or forged tax document, including a |
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sales tax affidavit; |
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�������������(3)��fails to take assignment of any basic evidence of |
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ownership, including a certificate of title or manufacturer's |
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certificate, for a vehicle the dealer acquires; |
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�������������(4)��fails to assign any basic evidence of ownership, |
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including a certificate of title or manufacturer's certificate, for |
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a vehicle the dealer sells; |
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�������������(5)��uses or permits the use of a metal dealer's license |
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plate or a dealer's temporary [cardboard] tag on a vehicle that the |
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dealer does not own or control or that is not in stock and offered |
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for sale; |
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�������������(6)��makes a material misrepresentation in an |
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application or other information filed with the department; |
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�������������(7)��fails to maintain the qualifications for a general |
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distinguishing number; |
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�������������(8)��fails to provide to the department within 30 days |
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after the date of demand by the department satisfactory and |
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reasonable evidence that the person is regularly and actively |
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engaged in business as a wholesale or retail dealer; |
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�������������(9)��has been licensed for at least 12 months and has |
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not assigned at least five vehicles during the previous 12-month |
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period; |
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�������������(10)��has failed to demonstrate compliance with |
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Sections 23.12, 23.121, and 23.122, Tax Code; |
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�������������(11)��uses or allows the use of the dealer's general |
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distinguishing number or the location for which the general |
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distinguishing number is issued to avoid the requirements of this |
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chapter; |
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�������������(12)��misuses or allows the misuse of a temporary |
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[cardboard] tag authorized under this chapter; |
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�������������(13)��refuses to show on a buyer's temporary |
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[cardboard] tag the date of sale or other reasonable information |
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required by the department; or |
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�������������(14)��otherwise violates this chapter or a rule adopted |
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under this chapter. |
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�������(c)��A person whose general distinguishing number is |
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canceled under this chapter shall surrender to a representative of |
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the department each license, license plate, temporary [cardboard] |
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tag, sticker, and receipt issued under this chapter not later than |
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the 10th day after the date the general distinguishing number is |
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canceled. The department shall direct any peace officer to secure |
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and return to the department any plate, tag, sticker, or receipt of |
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a person who does not comply with this subsection. |
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�������SECTION�3.��The heading to Section 503.062, Transportation |
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Code, is amended to read as follows: |
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�������Sec.�503.062.��DEALER'S TEMPORARY [CARDBOARD] TAGS. |
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�������SECTION�4.��Subsections (a), (b), and (d), Section 503.062, |
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Transportation Code, are amended to read as follows: |
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�������(a)��A dealer may issue a temporary [cardboard] tag for use |
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on an unregistered vehicle by the dealer or the dealer's employees |
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only to: |
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�������������(1)��demonstrate or cause to be demonstrated to a |
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prospective buyer the vehicle for sale purposes only; |
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�������������(2)��convey or cause to be conveyed the vehicle: |
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�������������������(A)��from one of the dealer's places of business |
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in this state to another of the dealer's places of business in this |
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state; |
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�������������������(B)��from the dealer's place of business to a |
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place the vehicle is to be repaired, reconditioned, or serviced; |
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�������������������(C)��from the state line or a location in this |
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state where the vehicle is unloaded to the dealer's place of |
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business; |
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�������������������(D)��from the dealer's place of business to a |
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place of business of another dealer; |
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�������������������(E)��from the point of purchase by the dealer to |
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the dealer's place of business; or |
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�������������������(F)��to road test the vehicle; or |
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�������������(3)��use the vehicle for or allow its use by a |
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charitable organization. |
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�������(b)��Subsection (a)(1) does not prohibit a dealer from |
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permitting: |
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�������������(1)��a prospective buyer to operate a vehicle while the |
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vehicle is being demonstrated; or |
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�������������(2)��a customer to operate a vehicle temporarily while |
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the customer's vehicle is being repaired. |
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�������(d)��The department may not issue a dealer temporary |
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[cardboard] tag or contract for the issuance of a dealer temporary |
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[cardboard] tag but shall prescribe: |
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�������������(1)��the specifications, form, and color of a dealer |
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temporary [cardboard] tag; |
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�������������(2)��procedures for a dealer to generate a |
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vehicle-specific number using the database developed under Section |
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503.0626 and assign it to each tag; |
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�������������(3)��procedures to clearly display the |
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vehicle-specific number on the tag; and |
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�������������(4)��the period for which a tag may be used for or by a |
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charitable organization. |
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�������SECTION�5.��The heading to Section 503.0625, Transportation |
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Code, is amended to read as follows: |
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�������Sec.�503.0625.��CONVERTER'S TEMPORARY [CARDBOARD] TAGS. |
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�������SECTION�6.��Subsections (b), (e), and (f), Section 503.0625, |
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Transportation Code, are amended to read as follows: |
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�������(b)��A converter may issue a temporary [cardboard] tag for |
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use on an unregistered vehicle by the converter or the converter's |
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employees only to: |
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�������������(1)��demonstrate or cause to be demonstrated to a |
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prospective buyer who is an employee of a franchised motor vehicle |
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dealer the vehicle; or |
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�������������(2)��convey or cause to be conveyed the vehicle: |
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�������������������(A)��from one of the converter's places of |
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business in this state to another of the converter's places of |
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business in this state; |
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�������������������(B)��from the converter's place of business to a |
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place the vehicle is to be assembled, repaired, reconditioned, |
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modified, or serviced; |
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�������������������(C)��from the state line or a location in this |
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state where the vehicle is unloaded to the converter's place of |
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business; |
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�������������������(D)��from the converter's place of business to a |
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place of business of a franchised motor vehicle dealer; or |
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�������������������(E)��to road test the vehicle. |
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�������(e)��The department may not issue a converter temporary |
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[cardboard] tag or contract for the issuance of a converter |
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temporary [cardboard] tag but shall prescribe: |
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�������������(1)��the specifications, form, and color of a converter |
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temporary [cardboard] tag; |
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�������������(2)��procedures for a converter to generate a |
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vehicle-specific number using the database developed under Section |
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503.0626 and assign it to each tag; and |
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�������������(3)��procedures to clearly display the |
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vehicle-specific number on the tag. |
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�������(f)��A converter or employee of a converter may not use a |
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temporary [cardboard] tag issued under this section as |
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authorization to operate a vehicle for the converter's or the |
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employee's personal use. |
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�������SECTION�7.��Subsections (a) and (c), Section 503.0626, |
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Transportation Code, are amended to read as follows: |
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�������(a)��The department shall develop and maintain a secure, |
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real-time database of information on vehicles to which dealers and |
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converters have affixed temporary [cardboard] tags. The database |
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shall be managed by the vehicle titles and registration division of |
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the department. |
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�������(c)��Before a dealer's or converter's temporary [cardboard] |
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tag may be displayed on a vehicle, the dealer or converter must |
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enter into the database through the Internet information on the |
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vehicle and information about the dealer or converter as prescribed |
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by the department. The department may not deny access to the |
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database to any dealer who holds a general distinguishing number |
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issued under this chapter or who is licensed under Chapter 2301, |
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Occupations Code, or to any converter licensed under Chapter 2301, |
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Occupations Code. |
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�������SECTION�8.��The heading to Section 503.063, Transportation |
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Code, is amended to read as follows: |
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�������Sec.�503.063.��BUYER'S TEMPORARY [CARDBOARD] TAGS. |
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�������SECTION�9.��Subsections (a), (b), (g), and (h), Section |
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503.063, Transportation Code, are amended to read as follows: |
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�������(a)��Except as provided by this section, a dealer shall issue |
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to a person who buys a vehicle one temporary [cardboard] buyer's tag |
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for the vehicle. |
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�������(b)��Except as provided by this section, the buyer's tag is |
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valid for the operation of the vehicle until the earlier of: |
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�������������(1)��the date on which the vehicle is registered; or |
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�������������(2)��the 60th [21st] day after the date of purchase. |
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�������(g)��[Using the same vehicle-specific number generated under
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Subsection (e)(2)(A), a dealer may issue an additional temporary
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cardboard buyer's tag to a person after the expiration of 20 working
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days after the issue of a temporary cardboard buyer's tag, and the
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person may operate the vehicle for which the tag was issued on the
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additional temporary cardboard buyer's tag if the dealer has been
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unable to obtain on behalf of the vehicle's owner the necessary
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documents to obtain permanent metal license plates because the
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documents are in the possession of a lienholder who has not complied
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with the terms of Section 501.115(a). An additional tag issued
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under the terms of this subsection is valid for a maximum of 20
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working days after the date of issue.
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�������[(h)]��For each buyer's temporary [cardboard] tag [other
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than an additional temporary cardboard buyer's tag under Subsection
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(g)], a dealer shall charge the buyer a registration fee of not more |
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than $5 as prescribed by the department to be sent to the |
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comptroller for deposit to the credit of the state highway fund. |
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�������SECTION�10.��Subsection (c), Section 503.0631, |
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Transportation Code, is amended to read as follows: |
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�������(c)��Except as provided by Subsection (d), before a buyer's |
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temporary [cardboard] tag may be displayed on a vehicle, a dealer |
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must enter into the database through the Internet information about |
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the buyer of the vehicle for which the tag was issued as prescribed |
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by the department and generate a vehicle-specific number for the |
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tag as required by Section 503.063(e). The department may not deny |
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access to the database to any dealer who holds a general |
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distinguishing number issued under this chapter or who is licensed |
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under Chapter 2301, Occupations Code. |
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�������SECTION�11.��Subsection (a), Section 503.065, |
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Transportation Code, is amended to read as follows:� |
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�������(a)��The department may issue or cause to be issued to a |
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person a temporary license plate [made of cardboard or similar
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material] authorizing the person to operate a new unregistered |
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vehicle on a public highway of this state if the person: |
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�������������(1)��buys the vehicle from a dealer outside this state |
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and intends to drive the vehicle from the dealer's place of |
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business; or |
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�������������(2)��buys the vehicle from a dealer in this state but |
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intends to drive the vehicle from the manufacturer's place of |
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business outside this state. |
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�������SECTION�12.��Section 503.067, Transportation Code, is |
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amended to read as follows: |
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�������Sec.�503.067.��UNAUTHORIZED REPRODUCTION, PURCHASE, USE, OR |
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SALE OF TEMPORARY [CARDBOARD] TAGS. (a)��A person may not produce |
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or reproduce a temporary [cardboard] tag or an item represented to |
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be a temporary [cardboard] tag for the purpose of distributing the |
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tag to someone other than a dealer or converter. |
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�������(b)��A person may not operate a vehicle that displays an |
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unauthorized temporary [cardboard] tag. |
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�������(c)��A person other than a dealer or converter may not |
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purchase a temporary [cardboard] tag. |
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�������(d)��A person may not sell or distribute a temporary |
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[cardboard] tag or an item represented to be a temporary |
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[cardboard] tag unless the person is: |
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�������������(1)��a dealer issuing the tag in connection with the |
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sale of a vehicle; or |
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�������������(2)��a printer or distributor engaged in the business |
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of selling temporary [cardboard] tags solely for uses authorized |
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under this chapter. |
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�������SECTION�13.��Subsections (a), (b), and (c), Section 503.068, |
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Transportation Code, are amended to read as follows: |
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�������(a)��A dealer or an employee of a dealer may not use a |
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dealer's temporary [cardboard] tag as authorization to operate a |
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vehicle for the dealer's or the employee's personal use. |
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�������(b)��A person may not use a metal dealer's license plate or |
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dealer's temporary [cardboard] tag on: |
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�������������(1)��a service or work vehicle; or |
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�������������(2)��a commercial vehicle that is carrying a load. |
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�������(c)��For purposes of this section, a boat trailer carrying a |
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boat is not a commercial vehicle carrying a load. A dealer |
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complying with this chapter may affix to the rear of a boat trailer |
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the dealer owns or sells a metal dealer's license plate or temporary |
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[cardboard] tag issued under Section 503.061, 503.062, or 503.063. |
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�������SECTION�14.��Subsection (a), Section 503.069, |
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Transportation Code, is amended to read as follows: |
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�������(a)��A license plate, other than an in-transit license plate, |
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or a temporary [cardboard] tag issued under this chapter shall be |
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displayed in accordance with commission [board] rules. |
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�������SECTION�15.��Subdivision (12), Section 601.002, |
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Transportation Code, is amended to read as follows: |
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�������������(12)��"Vehicle registration" means: |
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�������������������(A)��a registration certificate, registration |
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receipt, or number plate issued under Chapter 502; or |
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�������������������(B)��a dealer's license plate or temporary |
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[cardboard] tag issued under Chapter 503. |
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�������SECTION�16.��Subsection (a), Section 152.069, Tax Code, is |
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amended to read as follows: |
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�������(a)��The seller of a motor vehicle sold in a seller-financed |
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sale shall apply for the registration of, and a Texas certificate of |
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title for, the motor vehicle in the name of the purchaser to the |
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appropriate county tax assessor-collector not later than the 45th |
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day after the date the motor vehicle is delivered to the purchaser. |
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�������SECTION�17.��Section 503.0632, Transportation Code, is |
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repealed. |
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�������SECTION�18.��The changes in law made by this Act to Section |
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503.067, Transportation Code, apply to an offense committed on or |
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after the effective date of this Act. An offense committed before |
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the effective date of this Act is governed by the law in effect when |
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the offense was committed, and the former law is continued in effect |
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for that purpose. For purposes of this section, an offense was |
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committed before the effective date of this Act if any element of |
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the offense was committed before that date. |
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�������SECTION�19.��This Act takes effect September 1, 2009. |
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______________________________ |
______________________________ |
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���President of the Senate |
Speaker of the House����� |
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�������I hereby certify that S.B.�No.�1235 passed the Senate on |
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April�9,�2009, by the following vote: Yeas�31, Nays�0; and that |
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the Senate concurred in House amendment on May�29,�2009, by the |
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following vote: Yeas�30, Nays�0. |
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______________________________ |
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Secretary of the Senate���� |
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�������I hereby certify that S.B.�No.�1235 passed the House, with |
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amendment, on May�26,�2009, by the following vote: Yeas�94, |
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Nays�53, one present not voting. |
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______________________________ |
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Chief Clerk of the House��� |
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Approved: |
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______________________________� |
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������������Date |
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______________________________� |
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����������Governor |