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H.B. No. 3097

H.B. No. 3097

AN ACT

relating to the creation, organization, governance, duties, and
functions of the Texas Department of Motor Vehicles, including the
transfer of certain duties to the Texas Department of Motor
Vehicles and the Texas Department of Licensing and Regulation, and
to the regulation of certain franchised motor vehicle dealers;
providing a penalty.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1. TEXAS DEPARTMENT OF MOTOR VEHICLES
SECTION 1.01. Title 7, Transportation Code, is amended by
adding Subtitle M to read as follows:
SUBTITLE M. DEPARTMENT OF MOTOR VEHICLES
CHAPTER 1001. ORGANIZATION OF DEPARTMENT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 1001.001. DEFINITIONS. In this subtitle:
(1) “Board” means the board of the department.
(2) “Department” means the Texas Department of Motor
Vehicles.
Sec. 1001.002. CREATION OF DEPARTMENT; DUTIES. (a) The
department is created as an agency of this state.
(b) In addition to the other duties required of the Texas
Department of Motor Vehicles, the department shall administer and
enforce:
(1) Subtitle A;
(2) Chapters 642, 643, 645, 646, and 648; and
(3) Chapters 2301 and 2302, Occupations Code.
Sec. 1001.003. COMPOSITION OF DEPARTMENT. The department
is composed of an executive director appointed by the board and
other employees required to efficiently implement:
(1) this subtitle;
(2) other applicable vehicle laws of this state; and
(3) other laws that grant jurisdiction to or are
applicable to the department.
Sec. 1001.004. DIVISIONS. The board shall organize the
department into divisions to accomplish the department’s functions
and the duties assigned to it, including divisions for:
(1) administration;
(2) motor carriers;
(3) motor vehicle board; and
(4) vehicle titles and registration.
Sec. 1001.005. SUNSET PROVISION. The department is subject
to Chapter 325, Government Code (Texas Sunset Act). Unless
continued in existence as provided by that chapter, the department
is abolished September 1, 2015.
Sec. 1001.006. DEFENSE BY ATTORNEY GENERAL. The attorney
general shall defend an action brought against the board or the
department or an action brought against an employee of the
department as a result of the employee’s official act or omission,
regardless of whether at the time of the institution of the action
that person has terminated service with the department.
[Sections 1001.007-1001.020 reserved for expansion]
SUBCHAPTER B. BOARD OF DEPARTMENT OF MOTOR VEHICLES
Sec. 1001.021. BOARD. (a) The board consists of nine
members appointed by the governor with the advice and consent of the
senate.
(b) Three members must be persons who hold a dealer’s
license issued under Chapter 2301, Occupations Code, of whom two
must be franchised dealers of different classes and one must be an
independent dealer; one member must be a representative of a
manufacturer or distributor that holds a license issued under
Chapter 2301, Occupations Code; one member must be a tax
assessor-collector; one member must be a representative of a law
enforcement agency of a county or municipality; and one member must
be a representative of the motor carrier industry. The remaining
members must be public members.
(c) Except as necessary to comply with Subsection (b), a
person is not eligible for appointment as a member of the board if
the person or the person’s spouse:
(1) is employed by or participates in the management
of a business entity or other organization that is regulated by or
receives funds from the department;
(2) directly or indirectly owns or controls more than
10 percent interest in a business entity or other organization that
is regulated by or receives funds from the department;
(3) uses or receives a substantial amount of tangible
goods, services, or funds from the department, other than
compensation or reimbursement authorized by law for board
membership, attendance, or expenses; or
(4) is registered, certified, or licensed by the
department.
(d) A person required to register as a lobbyist under
Chapter 305, Government Code, because of the person’s activities
for compensation on behalf of a profession related to the operation
of the department may not serve as a member of the board.
(e) Appointments to the board shall be made without regard
to race, color, disability, sex, religion, age, or national origin
of the appointees and shall reflect the diversity of the population
of the state as a whole.
Sec. 1001.022. TERMS. Members of the board serve staggered
six-year terms, with the terms of either one or two members expiring
February 1 of each odd-numbered year.
Sec. 1001.023. CHAIR AND VICE CHAIR; DUTIES. (a) The
governor shall appoint one of the board’s members chair of the
board. The board shall elect one of its members vice chair of the
board. A chair or vice chair serves at the pleasure of the board.
(b) The chair shall:
(1) preside over board meetings, make rulings on
motions and points of order, and determine the order of business;
(2) represent the department in dealing with the
governor;
(3) report to the governor on the state of affairs of
the department at least quarterly;
(4) report to the board the governor’s suggestions for
department operations;
(5) report to the governor on efforts, including
legislative requirements, to maximize the efficiency of department
operations through the use of private enterprise;
(6) periodically review the department’s
organizational structure and submit recommendations for structural
changes to the governor, the board, and the Legislative Budget
Board;
(7) designate one or more employees of the department
as a civil rights division of the department and receive regular
reports from the division on the department’s efforts to comply
with civil rights legislation and administrative rules;
(8) create subcommittees, appoint board members to
subcommittees, and receive the reports of subcommittees to the
board as a whole;
(9) appoint a member of the board to act in the chair’s
absence; and
(10) serve as the departmental liaison with the
governor and the Office of State-Federal Relations to maximize
federal funding for transportation.
Sec. 1001.024. BOARD MEETINGS. The board shall hold
regular meetings at least quarterly and special meetings at the
call of the chair. Board members shall attend the meetings of the
board. The chair shall oversee the preparation of an agenda for
each meeting and ensure that a copy is provided to each board member
at least seven days before the meeting.
Sec. 1001.025. RECOMMENDATIONS TO LEGISLATURE. (a) The
board shall consider ways in which the department’s operations may
be improved and may periodically report to the legislature
concerning potential statutory changes that would improve the
operation of the department.
(b) On behalf of the board, the chair shall report to the
governor, the lieutenant governor, the speaker of the house of
representatives, and the presiding officers of relevant
legislative committees on legislative recommendations adopted by
the board and relating to the operation of the department.
Sec. 1001.026. COMPENSATION. A member of the board is
entitled to compensation as provided by the General Appropriations
Act. If compensation for board members is not provided by that Act,
each member is entitled to reimbursement for actual and necessary
expenses incurred in performing functions as a member of the board.
Sec. 1001.027. GROUNDS FOR REMOVAL. (a) It is a ground for
removal from the board if a board member:
(1) does not have at the time of appointment or
maintain during service on the board the qualifications required by
Section 1001.021;
(2) violates a prohibition provided by Section
1001.021;
(3) cannot discharge the member’s duties for a
substantial part of the term for which the member is appointed
because of illness or disability; or
(4) is absent from more than half of the regularly
scheduled board meetings that the board member is eligible to
attend during a calendar year, unless the absence is excused by
majority vote of the board.
(b) The validity of an action of the board is not affected by
the fact that it is taken when a ground for removal of a board member
exists.
(c) If the executive director of the department knows that a
potential ground for removal exists, the director shall notify the
chair of the board of the ground, and the chair shall notify the
governor and the attorney general that a potential ground for
removal exists. If the potential ground for removal relates to the
chair, the director shall notify another board member, who shall
notify the governor and the attorney general that a potential
ground for removal exists.
Sec. 1001.028. CONFLICT OF INTEREST. (a) A member of the
board shall disclose in writing to the executive director if the
member has an interest in a matter before the board or has a
substantial financial interest in an entity that has a direct
interest in the matter.
(b) The member shall recuse himself or herself from the
board’s deliberations and actions on the matter in Subsection (a)
and may not participate in the board’s decision on the matter.
(c) A person has a substantial financial interest in an
entity if the person:
(1) is an employee, member, director, or officer of
the entity; or
(2) owns or controls, directly or indirectly, more
than a five percent interest in the entity.
Sec. 1001.029. INFORMATION ON QUALIFICATIONS AND CONDUCT.
The department shall provide to the members of the board, as often
as necessary, information concerning the members’ qualifications
for office and their responsibilities under applicable laws
relating to standards of conduct for state officers.
Sec. 1001.030. TRAINING ON DEPARTMENT AND CERTAIN LAWS
RELATING TO DEPARTMENT. (a) To be eligible to take office as a
member of the board, a person appointed to the board must complete
at least one course of a training program that complies with this
section.
(b) The training program must provide information to the
person regarding:
(1) this subchapter;
(2) the programs operated by the department;
(3) the role and functions of the department;
(4) the rules of the department with an emphasis on the
rules that relate to disciplinary and investigatory authority;
(5) the current budget for the department;
(6) the results of the most recent formal audit of the
department;
(7) the requirements of the:
(A) open meetings law, Chapter 551, Government
Code;
(B) open records law, Chapter 552, Government
Code; and
(C) administrative procedure law, Chapter 2001,
Government Code;
(8) the requirements of the conflict of interest laws
and other laws relating to public officials; and
(9) any applicable ethics policies adopted by the
board or the Texas Ethics Commission.
(c) A person appointed to the board is entitled to
reimbursement for travel expenses incurred in attending the
training program, as provided by the General Appropriations Act and
as if the person were a member of the board.
Sec. 1001.031. ADVISORY COMMITTEES. (a) The board shall
establish separate advisory committees for the motor carrier, motor
vehicles, and vehicle titles and registration divisions to make
recommendations to the board or the executive director on the
operation of the applicable division. A committee has the
purposes, powers, and duties, including the manner of reporting its
work, prescribed by the board. A committee and each committee
member serves at the will of the board.
(b) The board shall appoint persons to each advisory
committee who:
(1) are selected from a list provided by the executive
director; and
(2) have knowledge about and interests in, and
represent a broad range of viewpoints about, the work of the
committee or applicable division.
(c) The advisory committee for the motor vehicles division
must include a member to represent motor vehicle manufacturers and
a member to represent the recreational vehicle industry.
(d) The advisory committee for the motor carrier division
must include a member to represent the motor transportation
industry.
(e) A member of an advisory committee may not be compensated
by the board or the department for committee service.
[Sections 1001.032-1001.040 reserved for expansion]
SUBCHAPTER C. PERSONNEL
Sec. 1001.041. DEPARTMENT PERSONNEL. (a) Subject to the
General Appropriations Act or other law, the executive director
shall appoint deputies, assistants, and other personnel as
necessary to carry out the powers and duties of the department under
this code, other applicable vehicle laws of this state, and other
laws granting jurisdiction or applicable to the department.
(b) A person appointed under this section must have the
professional and administrative experience necessary to qualify
the person for the position to which the person is appointed.
Sec. 1001.042. DIVISION OF RESPONSIBILITIES. The board
shall develop and implement policies that clearly define the
respective responsibilities of the director and the staff of the
department.

Sec. 1001.043. EQUAL EMPLOYMENT OPPORTUNITY POLICY;
REPORT. (a) The executive director or the director’s designee
shall prepare and maintain a written policy statement to ensure
implementation of a program of equal employment opportunity under
which all personnel transactions are made without regard to race,
color, disability, sex, religion, age, or national origin. The
policy statement must include:
(1) personnel policies, including policies relating
to recruitment, evaluation, selection, appointment, training, and
promotion of personnel that are in compliance with Chapter 21,
Labor Code;
(2) a comprehensive analysis of the department
workforce that meets federal and state guidelines;
(3) procedures by which a determination can be made of
significant underuse in the department workforce of all persons for
whom federal or state guidelines encourage a more equitable
balance; and
(4) reasonable methods to appropriately address those
areas of significant underuse.
(b) A policy statement prepared under this section must:
(1) cover an annual period;
(2) be updated annually;
(3) be reviewed by the civil rights division of the
Texas Workforce Commission for compliance with Subsection (a); and
(4) be filed with the governor.
(c) The governor shall deliver a biennial report to the
legislature based on the information received under Subsection (b).
The report may be made separately or as a part of other biennial
reports made to the legislature.
Sec. 1001.044. QUALIFICATIONS AND STANDARDS OF CONDUCT.
The executive director shall provide to department employees, as
often as necessary, information regarding their:
(1) qualification for office or employment under this
subtitle; and
(2) responsibilities under applicable laws relating
to standards of conduct for state employees.
Sec. 1001.045. CAREER LADDER PROGRAM; PERFORMANCE
EVALUATIONS. (a) The executive director or the director’s
designee shall develop an intra-agency career ladder program. The
program must require intra-agency posting of all nonentry level
positions concurrently with any public posting.
(b) The executive director or the director’s designee shall
develop a system of annual performance evaluations. All merit pay
for department employees must be based on the system established
under this subsection.
CHAPTER 1002. RULES
Sec. 1002.001. GENERAL RULEMAKING AUTHORITY. The board may
adopt any rules necessary and appropriate to implement the powers
and duties of the department under this code and other laws of this
state.
Sec. 1002.002. RULES RESTRICTING ADVERTISING OR
COMPETITIVE BIDDING. The board may not adopt rules restricting
advertising or competitive bidding by a person regulated by the
department except to prohibit false, misleading, or deceptive
practices by the person.
CHAPTER 1003. DEPARTMENT PROCEDURES
Sec. 1003.001. APPLICABILITY OF CERTAIN LAWS. Except as
specifically provided by law, the department is subject to Chapters
2001 and 2002, Government Code.
Sec. 1003.002. SUMMARY PROCEDURES FOR ROUTINE MATTERS.
(a) The board or the department by rule may:
(1) create a summary procedure for routine matters;
and
(2) designate department activities that otherwise
would be subject to Chapter 2001, Government Code, as routine
matters to be handled under the summary procedure.
(b) An activity may be designated as a routine matter only
if the activity is:
(1) voluminous;
(2) repetitive;
(3) believed to be noncontroversial; and
(4) of limited interest to anyone other than persons
immediately involved in or affected by the proposed department
action.
(c) The rules may establish procedures different from those
contained in Chapter 2001, Government Code. The procedures must
require, for each party directly involved, notice of a proposed
negative action not later than the fifth day before the date the
action is proposed to be taken.
(d) A rule adopted by the board under this section may
provide for the delegation of authority to take action on a routine
matter to a salaried employee of the department designated by the
board.
Sec. 1003.003. REVIEW OF ACTION ON ROUTINE MATTER. (a) A
person directly or indirectly affected by an action of the board or
the department on a routine matter taken under the summary
procedure adopted under Section 1003.002 is entitled to a review of
the action under Chapter 2001, Government Code.
(b) The person must apply to the board not later than the
60th day after the date of the action to be entitled to the review.
(c) The timely filing of the application for review
immediately stays the action pending a hearing on the merits.
(d) The board may adopt rules relating to an application for
review under this section and consideration of the application.
Sec. 1003.004. INFORMAL DISPOSITION OF CERTAIN CONTESTED
CASES. The board or the department, as applicable, may, on written
agreement or stipulation of each party and any intervenor,
informally dispose of a contested case in accordance with Section
2001.056, Government Code, notwithstanding any provision of this
code or other law that requires a hearing before the board or the
department, as applicable.
CHAPTER 1004. PUBLIC ACCESS
Sec. 1004.001. ACCESS TO PROGRAMS AND FACILITIES. (a) The
department shall prepare and maintain a written plan that describes
how a person who does not speak English may be provided reasonable
access to the department’s programs.
(b) The department shall comply with federal and state laws
for program and facility accessibility.
Sec. 1004.002. PUBLIC COMMENT. The board and the
department shall develop and implement policies that provide the
public with a reasonable opportunity to appear before the board or
the department and to speak on any issue under the jurisdiction of
the board or the department.
Sec. 1004.003. PUBLIC REPRESENTATION ON ADVISORY BODY.
(a) At least one-half of the membership of each advisory body
appointed by the board, other than an advisory body whose
membership is determined by this code or by other law, must
represent the general public.
(b) A public representative may not be:
(1) an officer, director, or employee of a business
entity regulated by the department;
(2) a person required to register with the Texas
Ethics Commission under Chapter 305, Government Code; or
(3) a person related within the second degree by
affinity or consanguinity to a person described by Subdivision (1)
or (2).
CHAPTER 1005. STANDARDS OF CONDUCT
Sec. 1005.001. APPLICATION OF LAW RELATING TO ETHICAL
CONDUCT. The board, the executive director, and each employee or
agent of the department is subject to the code of ethics and the
standard of conduct imposed by Chapter 572, Government Code, and
any other law regulating the ethical conduct of state officers and
employees.
ARTICLE 2. TRANSFER OF DUTIES AND FUNCTIONS OF THE TEXAS DEPARTMENT
OF TRANSPORTATION
PART A. GENERAL PROVISIONS AND ADMINISTRATION
SECTION 2A.01. Subsection (a), Section 201.202,
Transportation Code, is amended to read as follows:
(a) The commission shall organize the department into
divisions to accomplish the department’s functions and the duties
assigned to it, including divisions for:
(1) aviation;
(2) highways and roads; and
(3) public transportation[; and
[(4) motor vehicle titles and registration].
SECTION 2A.02. Subdivision (2), Section 201.931,
Transportation Code, is amended to read as follows:
(2) “License” includes:
(A) a permit issued by the department that
authorizes the operation of a vehicle and its load or a combination
of vehicles and load exceeding size or weight limitations; and
(B) [a motor carrier registration issued under
Chapter 643;
[(C) a vehicle storage facility license issued
under Chapter 2303, Occupations Code;
[(D)] a license or permit for outdoor advertising
issued under Chapter 391 or 394[;
[(E) a salvage vehicle dealer or agent license
issued under Chapter 2302, Occupations Code;
[(F) specially designated or specialized license
plates issued under Subchapters E and F, Chapter 502; and
[(G) an apportioned registration issued
according to the International Registration Plan under Section
502.054].
SECTION 2A.03. Subsection (c), Section 201.202,
Transportation Code, is repealed.
PART B. STATE HIGHWAY TOLL PROJECTS
SECTION 2B.01. Subsections (b) and (h), Section 228.055,
Transportation Code, are amended to read as follows:
(b) The department may impose and collect the
administrative fee, so as to recover the cost of collecting the
unpaid toll, not to exceed $100. The department shall send a
written notice of nonpayment to the registered owner of the vehicle
at that owner’s address as shown in the vehicle registration
records of the Texas Department of Motor Vehicles [department] by
first class mail and may require payment not sooner than the 30th
day after the date the notice was mailed. The registered owner
shall pay a separate toll and administrative fee for each event of
nonpayment under Section 228.054.
(h) In this section, “registered owner” means the owner of a
vehicle as shown on the vehicle registration records of the Texas
Department of Motor Vehicles [department] or the analogous
department or agency of another state or country.
SECTION 2B.02. Subsection (b), Section 228.056,
Transportation Code, is amended to read as follows:
(b) In the prosecution of an offense under Section
228.055(c), (d), or (e):
(1) it is presumed that the notice of nonpayment was
received on the fifth day after the date of mailing;
(2) a computer record of the Texas Department of Motor
Vehicles [department] of the registered owner of the vehicle is
prima facie evidence of its contents and that the defendant was the
registered owner of the vehicle when the underlying event of
nonpayment under Section 228.054 occurred; and
(3) a copy of the rental, lease, or other contract
document covering the vehicle on the date of the underlying event of
nonpayment under Section 228.054 is prima facie evidence of its
contents and that the defendant was the lessee of the vehicle when
the underlying event of nonpayment under Section 228.054 occurred.
PART C. CAUSEWAYS, BRIDGES, TUNNELS, TURNPIKES, FERRIES, AND
HIGHWAYS IN CERTAIN COUNTIES
SECTION 2C.01. Subsections (b), (e), and (h), Section
284.0701, Transportation Code, are amended to read as follows:
(b) The county may impose and collect the administrative
cost so as to recover the expense of collecting the unpaid toll, not
to exceed $100. The county shall send a written notice of
nonpayment to the registered owner of the vehicle at that owner’s
address as shown in the vehicle registration records of the Texas
Department of Motor Vehicles [department] by first-class mail not
later than the 30th day after the date of the alleged failure to pay
and may require payment not sooner than the 30th day after the date
the notice was mailed. The registered owner shall pay a separate
toll and administrative cost for each event of nonpayment under
Section 284.070.
(e) It is an exception to the application of Subsection (a)
or (c) if the registered owner of the vehicle transferred ownership
of the vehicle to another person before the event of nonpayment
under Section 284.070 occurred, submitted written notice of the
transfer to the Texas Department of Motor Vehicles [department] in
accordance with Section 520.023, and before the 30th day after the
date the notice of nonpayment is mailed, provides to the county the
name and address of the person to whom the vehicle was transferred.
If the former owner of the vehicle provides the required
information within the period prescribed, the county may send a
notice of nonpayment to the person to whom ownership of the vehicle
was transferred at the address provided by the former owner by
first-class mail before the 30th day after the date of receipt of
the required information from the former owner. The subsequent
owner of the vehicle for which the proper toll was not paid who is
mailed a written notice of nonpayment under this subsection and
fails to pay the proper toll and administrative cost within the time
specified by the notice of nonpayment commits an offense. The
subsequent owner shall pay a separate toll and administrative cost
for each event of nonpayment under Section 284.070. Each failure to
pay a toll or administrative cost under this subsection is a
separate offense.
(h) In this section, “registered owner” means the owner of a
vehicle as shown on the vehicle registration records of the Texas
Department of Motor Vehicles [department] or the analogous
department or agency of another state or country.
PART D. CERTIFICATE OF TITLE ACT
SECTION 2D.01. Subdivision (3), Section 501.002,
Transportation Code, is amended to read as follows:
(3) “Department” means the Texas Department of Motor
Vehicles [Transportation].
PART E. REGISTRATION OF VEHICLES
SECTION 2E.01. Section 502.001, Transportation Code, is
amended by adding Subdivision (1-a) and amending Subdivision (3) to
read as follows:
(1-a) “Board” means the board of the Texas Department
of Motor Vehicles.
(3) “Department” means the Texas Department of Motor
Vehicles [Transportation].
SECTION 2E.02. Section 502.051, Transportation Code, is
amended to read as follows:
Sec. 502.051. DEPOSIT OF REGISTRATION FEES IN STATE HIGHWAY
FUND. Except as otherwise provided by this chapter, the board
[Texas Transportation Commission] and the department shall deposit
all money received from registration fees in the state treasury to
the credit of the state highway fund.
SECTION 2E.03. Section 502.052(a), Transportation Code, is
amended to read as follows:
(a) The department shall prepare the designs and
specifications of license plates and devices selected by the board
[Texas Transportation Commission] to be used as the registration
insignia.
SECTION 2E.04. Subsections (a) and (b), Section 502.053,
Transportation Code, are amended to read as follows:
(a) The department [Texas Department of Transportation]
shall reimburse the Texas Department of Criminal Justice for the
cost of manufacturing license plates or registration insignia as
the license plates or insignia and the invoice for the license
plates or insignia are delivered to the department [Texas
Department of Transportation].
(b) When manufacturing is started, the Texas Department of
Criminal Justice, the department [Texas Department of
Transportation], and the comptroller, after negotiation, shall set
the price to be paid for each license plate or insignia. The price
must be determined from:

(1) the cost of metal, paint, and other materials
purchased;
(2) the inmate maintenance cost per day;
(3) overhead expenses;
(4) miscellaneous charges; and
(5) a previously approved amount of profit for the
work.
SECTION 2E.05. Section 502.1515, Transportation Code, is
amended to read as follows:
Sec. 502.1515. OUTSOURCING PRODUCTION OF RENEWAL NOTICES;
PAID ADVERTISING. The board [commission] may authorize the
department to enter into a contract with a private vendor to produce
and distribute motor vehicle registration renewal notices. The
contract may provide for the inclusion of paid advertising in the
registration renewal notice packet.
SECTION 2E.06. Section 502.352(c), Transportation Code, is
amended to read as follows:
(c) A person may obtain a permit under this section by:
(1) applying to the county assessor-collector, the
department, or the department’s wire service agent, if the
department has a wire service agent;
(2) paying a fee of $25 for a 72-hour permit or $50 for
a 144-hour permit:
(A) in cash;
(B) by postal money order;
(C) by certified check;
(D) by wire transfer through the department’s
wire service agent, if any;
(E) by an escrow account; or
(F) where the service is provided, by a credit
card issued by:
(i) a financial institution chartered by a
state or the United States; or
(ii) a nationally recognized credit
organization approved by the board [Texas Transportation
Commission];
(3) paying a discount or service charge for a credit
card payment or escrow account, in addition to the fee; and
(4) furnishing to the county assessor-collector, the
department, or the department’s wire service agent, evidence of
financial responsibility for the vehicle that complies with
Sections 502.153(c) and 601.168(a) and is written by an insurance
company or surety company authorized to write motor vehicle
liability insurance in this state.
SECTION 2E.07. Section 502.355(h), Transportation Code, is
amended to read as follows:
(h) A person operating a vehicle under a permit issued under
this section commits an offense if the person:
(1) transports farm products to a place of market,
storage, or processing or a railhead or seaport that is farther from
the place of production or point of entry, as appropriate, than the
distance provided for in the permit; or
(2) follows a route other than that prescribed by the
board [Texas Transportation Commission].
PART F. DEALER’S AND MANUFACTURER’S VEHICLE LICENSE PLATES
SECTION 2F.01. Subdivisions (2) and (5), Section 503.001,
Transportation Code, are amended to read as follows:
(2) “Commission” means the board of the Texas
Department of Motor Vehicles [Texas Transportation Commission].
(5) “Department” means the Texas Department of Motor
Vehicles [Transportation].
PART G. SPECIALTY LICENSE PLATES
SECTION 2G.01. Section 504.001(a), Transportation Code, is
amended to read as follows:
(a) In this chapter:
(1) “Board” means the board of the Texas Department of
Motor Vehicles [, “commission” and “director” have the meanings
assigned by Section 201.001].
(2) “Department” means the Texas Department of Motor
Vehicles.
SECTION 2G.02. Section 504.004, Transportation Code, is
amended to read as follows:
Sec. 504.004. RULES AND FORMS. The board [commission] may
adopt rules and the department may issue forms to implement and
administer this chapter.
SECTION 2G.03. Sections 504.851(b), (c), and (d),
Transportation Code, are amended to read as follows:
(b) Instead of the fees established by Section 504.101(c),
the board [commission] by rule shall establish fees for the
issuance or renewal of personalized license plates that are
marketed and sold by the private vendor. Fees must be reasonable
and not less than the greater of:
(1) the amounts necessary to allow the department to
recover all reasonable costs to the department associated with the
evaluation of the competitive sealed proposals received by the
department and with the implementation and enforcement of the
contract, including direct, indirect, and administrative costs; or
(2) the amount established by Section 504.101(c).
(c) The board [commission] by rule shall establish the fees
for the issuance or renewal of souvenir license plates, specialty
license plates, or souvenir or specialty license plates that are
personalized that are marketed and sold by the private vendor. Fees
must be reasonable and not less than the amounts necessary to allow
the department to recover all reasonable costs to the department
associated with the evaluation of the competitive sealed proposals
received by the department and with the implementation and
enforcement of the contract, including direct, indirect, and
administrative costs. A fee established under this subsection is
in addition to:
(1) the registration fee and any optional registration
fee prescribed by this chapter for the vehicle for which specialty
license plates are issued;
(2) any additional fee prescribed by this subchapter
for the issuance of specialty license plates for that vehicle; and
(3) any additional fee prescribed by this subchapter
for the issuance of personalized license plates for that vehicle.
(d) At any time as necessary to comply with Subsection (b)
or (c), the board [commission] may increase or decrease the amount
of a fee established under the applicable subsection.
PART H. MISCELLANEOUS PROVISIONS
SECTION 2H.01. Section 520.001, Transportation Code, is
amended to read as follows:
Sec. 520.001. DEFINITION. In this chapter, “department”
means the Texas Department of Motor Vehicles [Transportation].
PART I. OPERATION OF BICYCLES, MOPEDS, AND PLAY VEHICLES
SECTION 2I.01. Section 551.302, Transportation Code, is
amended to read as follows:
Sec. 551.302. REGISTRATION. The Texas Department of Motor
Vehicles [Transportation] may adopt rules relating to the
registration and issuance of license plates to neighborhood
electric vehicles.
PART J. MOTOR VEHICLE SAFETY RESPONSIBILITY ACT
SECTION 2J.01. Section 601.023, Transportation Code, is
amended to read as follows:
Sec. 601.023. PAYMENT OF STATUTORY FEES. The department
may pay:
(1) a statutory fee required by the Texas Department
of Motor Vehicles [Transportation] for a certified abstract or in
connection with suspension of a vehicle registration; or
(2) a statutory fee payable to the comptroller for
issuance of a certificate of deposit required by Section 601.122.
SECTION 2J.02. Section 601.451, Transportation Code, as
added by Chapter 892 (S.B. 1670), Acts of the 79th Legislature,
Regular Session, 2005, is amended to read as follows:
Sec. 601.451. DEFINITION. In this subchapter,
“implementing agencies” means:
(1) the department;
(2) the Texas Department of Motor Vehicles
[Transportation];

(3) the Texas Department of Insurance; and
(4) the Department of Information Resources.
SECTION 2J.03. Subchapter N, Chapter 601, Transportation
Code, as added by Chapter 1325 (H.B. 3588), Acts of the 78th
Legislature, Regular Session, 2003, is repealed.
PART K. IDENTIFYING MARKINGS ON CERTAIN COMMERCIAL MOTOR VEHICLES
SECTION 2K.01. Subsection (d), Section 642.002,
Transportation Code, is amended to read as follows:
(d) The Texas Department of Motor Vehicles [Transportation]
by rule may prescribe additional requirements regarding the form of
the markings required by Subsection (a)(2) that are not
inconsistent with that subsection.
PART L. MOTOR CARRIER REGISTRATION
SECTION 2L.01. Subdivision (1), Section 643.001,
Transportation Code, is amended to read as follows:
(1) “Department” means the Texas Department of Motor
Vehicles [Transportation].
PART M. SINGLE STATE REGISTRATION
SECTION 2M.01. Section 645.001, Transportation Code, is
amended to read as follows:
Sec. 645.001. FEDERAL MOTOR CARRIER REGISTRATION. The
Texas Department of Motor Vehicles [Transportation] may, to the
fullest extent practicable, participate in a federal motor carrier
registration program under the unified carrier registration system
as defined by Section 643.001 or a [the] single state registration
system established under federal law [49 U.S.C. Section 14504].
PART N. MOTOR TRANSPORTATION BROKERS
SECTION 2N.01. Subsection (a), Section 646.003,
Transportation Code, is amended to read as follows:
(a) A person may not act as a motor transportation broker
unless the person provides a bond to the Texas Department of Motor
Vehicles [Transportation].
PART O. FOREIGN COMMERCIAL MOTOR TRANSPORTATION
SECTION 2O.01. Section 648.002, Transportation Code, is
amended to read as follows:
Sec. 648.002. RULES. In addition to rules required by this
chapter, the Texas Department of Motor Vehicles [Transportation],
the Department of Public Safety, and the Texas Department of
Insurance may adopt other rules to carry out this chapter.
PART P. PRIVILEGED PARKING
SECTION 2P.01. Section 681.001(1), Transportation Code, is
amended to read as follows:
(1) “Department” means the Texas Department of Motor
Vehicles [Transportation].
PART Q. ADMINISTRATIVE ADJUDICATION OF VEHICLE PARKING AND
STOPPING OFFENSES
SECTION 2Q.01. Section 682.008, Transportation Code, is
amended to read as follows:
Sec. 682.008. PRESUMPTIONS. In an administrative
adjudication hearing under this chapter:
(1) it is presumed that the registered owner of the
motor vehicle is the person who parked or stopped the vehicle at the
time and place of the offense charged; and
(2) the Texas Department of Motor Vehicles’
[Transportation’s] computer-generated record of the registered
vehicle owner is prima facie evidence of the contents of the record.
PART R. ABANDONED MOTOR VEHICLES
SECTION 2R.01. Subdivision (1), Section 683.001,
Transportation Code, is amended to read as follows:
(1) “Department” means the Texas Department of Motor
Vehicles [Transportation].
PART S. CONTRACTS FOR ENFORCEMENT OF CERTAIN ARREST WARRANTS
SECTION 2S.01. Subdivision (1), Section 702.001,
Transportation Code, is amended to read as follows:
(1) “Department” means the Texas Department of Motor
Vehicles [Transportation].
PART T. PHOTOGRAPHIC TRAFFIC SIGNAL ENFORCEMENT SYSTEM
SECTION 2T.01. Subdivision (2), Section 707.001,
Transportation Code, is amended to read as follows:
(2) “Owner of a motor vehicle” means the owner of a
motor vehicle as shown on the motor vehicle registration records of
the Texas Department of Motor Vehicles [Transportation] or the
analogous department or agency of another state or country.
SECTION 2T.02. Subsection (b), Section 707.011,
Transportation Code, is amended to read as follows:
(b) Not later than the 30th day after the date the violation
is alleged to have occurred, the designated department, agency, or
office of the local authority or the entity with which the local
authority contracts under Section 707.003(a)(1) shall mail the
notice of violation to the owner at:
(1) the owner’s address as shown on the registration
records of the Texas Department of Motor Vehicles [Transportation];
or
(2) if the vehicle is registered in another state or
country, the owner’s address as shown on the motor vehicle
registration records of the department or agency of the other state
or country analogous to the Texas Department of Motor Vehicles
[Transportation].
SECTION 2T.03. Section 707.017, Transportation Code, is
amended to read as follows:
Sec. 707.017. ENFORCEMENT. If the owner of a motor vehicle
is delinquent in the payment of a civil penalty imposed under this
chapter, the county assessor-collector or the Texas Department of
Motor Vehicles [Transportation] may refuse to register a motor
vehicle alleged to have been involved in the violation.
PART U. SALE OR LEASE OF MOTOR VEHICLES
SECTION 2U.01. Subdivision (9), Section 2301.002,
Occupations Code, is amended to read as follows:
(9) “Department” means the Texas Department of Motor
Vehicles [Transportation].
SECTION 2U.02. Subdivision (33), Section 2301.002,
Occupations Code, is repealed.
PART V. AUTOMOBILE BURGLARY AND THEFT PREVENTION AUTHORITY
SECTION 2V.01. Subdivision (3), Section 1, Article
4413(37), Revised Statutes, is amended to read as follows:
(3) “Department” means the Texas Department of Motor
Vehicles [Transportation].
SECTION 2V.02. Section 2, Article 4413(37), Revised
Statutes, is amended to read as follows:
Sec. 2. The Automobile Burglary and Theft Prevention
Authority is established in the Texas Department of Motor Vehicles
[Transportation]. The authority is not an advisory body to the
Texas Department of Motor Vehicles [Transportation].
ARTICLE 3. CONFORMING AMENDMENTS PERTAINING TO TEXAS DEPARTMENT OF
TRANSPORTATION IN OTHER CODES
PART A. BUSINESS & COMMERCE CODE
SECTION 3A.01. Subsection (b), Section 51.003, Business &
Commerce Code, as effective April 1, 2009, is amended to read as
follows:
(b) In this chapter, “business opportunity” does not
include:
(1) the sale or lease of an established and ongoing
business or enterprise that has actively conducted business before
the sale or lease, whether composed of one or more than one
component business or enterprise, if the sale or lease represents
an isolated transaction or series of transactions involving a bona
fide change of ownership or control of the business or enterprise or
liquidation of the business or enterprise;
(2) a sale by a retailer of goods or services under a
contract or other agreement to sell the inventory of one or more
ongoing leased departments to a purchaser who is granted the right
to sell the goods or services within or adjoining a retail business
establishment as a department or division of the retail business
establishment;
(3) a transaction that is:
(A) regulated by the Texas Department of
Licensing and Regulation, the Texas Department of Insurance, the
Texas Real Estate Commission, or the director of the Motor Vehicle
Division of the Texas Department of Motor Vehicles
[Transportation]; and
(B) engaged in by a person licensed by one of
those agencies;
(4) a real estate syndication;
(5) a sale or lease to a business enterprise that also
sells or leases products, equipment, or supplies or performs
services:
(A) that are not supplied by the seller; and
(B) that the purchaser does not use with the
seller’s products, equipment, supplies, or services;
(6) the offer or sale of a franchise as described by
the Petroleum Marketing Practices Act (15 U.S.C. Section 2801 et
seq.) and its subsequent amendments;
(7) the offer or sale of a business opportunity if the
seller:
(A) has a net worth of $25 million or more
according to the seller’s audited balance sheet as of a date not
earlier than the 13th month before the date of the transaction; or
(B) is at least 80 percent owned by another
person who:
(i) in writing unconditionally guarantees
performance by the person offering the business opportunity plan;
and
(ii) has a net worth of more than $25
million according to the person’s most recent audited balance sheet
as of a date not earlier than the 13th month before the date of the
transaction; or
(8) an arrangement defined as a franchise by 16 C.F.R.
Section 436.2(a) and its subsequent amendments if:
(A) the franchisor complies in all material
respects in this state with 16 C.F.R. Part 436 and each order or
other action of the Federal Trade Commission; and
(B) before offering for sale or selling a
franchise in this state, a person files with the secretary of state
a notice containing:
(i) the name of the franchisor;
(ii) the name under which the franchisor
intends to transact business; and
(iii) the franchisor’s principal business
address.
SECTION 3A.02. Subsection (b), Section 105.004, Business &
Commerce Code, as effective April 1, 2009, is amended to read as
follows:
(b) The Texas Department of Motor Vehicles [Transportation]
shall provide a notice that states the provisions of this chapter to
each person with a disability who is issued:
(1) license plates under Section 504.201,
Transportation Code; or
(2) a disabled parking placard under Section 681.004,
Transportation Code.
PART B. CODE OF CRIMINAL PROCEDURE
SECTION 3B.01. Subdivision (1), Section 1, Article 42.22,
Code of Criminal Procedure, is amended to read as follows:
(1) “Department” means the Texas Department of Motor
Vehicles [Transportation].
SECTION 3B.02. Subsection (c), Article 59.04, Code of
Criminal Procedure, is amended to read as follows:
(c) If the property is a motor vehicle, and if there is
reasonable cause to believe that the vehicle has been registered
under the laws of this state, the attorney representing the state
shall ask the Texas Department of Motor Vehicles [Transportation]
to identify from its records the record owner of the vehicle and any
interest holder. If the addresses of the owner and interest holder
are not otherwise known, the attorney representing the state shall
request citation be served on such persons at the address listed
with the Texas Department of Motor Vehicles [Transportation]. If
the citation issued to such address is returned unserved, the
attorney representing the state shall cause a copy of the notice of
the seizure and intended forfeiture to be posted at the courthouse
door, to remain there for a period of not less than 30 days. If the
owner or interest holder does not answer or appear after the notice
has been so posted, the court shall enter a judgment by default as
to the owner or interest holder, provided that the attorney
representing the state files a written motion supported by
affidavit setting forth the attempted service. An owner or
interest holder whose interest is forfeited in this manner shall
not be liable for court costs. If the person in possession of the
vehicle at the time of the seizure is not the owner or the interest
holder of the vehicle, notification shall be provided to the
possessor in the same manner specified for notification to an owner
or interest holder.

PART C. FAMILY CODE
SECTION 3C.01. Subsection (b), Section 157.316, Family
Code, is amended to read as follows:
(b) If a lien established under this subchapter attaches to
a motor vehicle, the lien must be perfected in the manner provided
by Chapter 501, Transportation Code, and the court or Title IV-D
agency that rendered the order of child support shall include in the
order a requirement that the obligor surrender to the court or Title
IV-D agency evidence of the legal ownership of the motor vehicle
against which the lien may attach. A lien against a motor vehicle
under this subchapter is not perfected until the obligor’s title to
the vehicle has been surrendered to the court or Title IV-D agency
and the Texas Department of Motor Vehicles [Transportation] has
issued a subsequent title that discloses on its face the fact that
the vehicle is subject to a child support lien under this
subchapter.
SECTION 3C.02. Subsection (a), Section 232.0022, Family
Code, is amended to read as follows:
(a) The Texas Department of Motor Vehicles [Transportation]
is the appropriate licensing authority for suspension or nonrenewal
of a motor vehicle registration under this chapter.
SECTION 3C.03. Subsection (b), Section 232.014, Family
Code, is amended to read as follows:
(b) A fee collected by the Texas Department of Motor
Vehicles [Transportation] or the Department of Public Safety shall
be deposited to the credit of the state highway fund.
SECTION 3C.04. Subsection (b), Section 264.502, Family
Code, is amended to read as follows:
(b) The members of the committee who serve under Subsections
(a)(1) through (3) shall select the following additional committee
members:
(1) a criminal prosecutor involved in prosecuting
crimes against children;
(2) a sheriff;
(3) a justice of the peace;
(4) a medical examiner;
(5) a police chief;
(6) a pediatrician experienced in diagnosing and
treating child abuse and neglect;
(7) a child educator;
(8) a child mental health provider;
(9) a public health professional;
(10) a child protective services specialist;
(11) a sudden infant death syndrome family service
provider;
(12) a neonatologist;
(13) a child advocate;
(14) a chief juvenile probation officer;
(15) a child abuse prevention specialist;
(16) a representative of the Department of Public
Safety; and
(17) a representative of the Texas Department of Motor
Vehicles [Transportation].
PART D. FINANCE CODE
SECTION 3D.01. Subdivision (9), Section 306.001, Finance
Code, is amended to read as follows:
(9) “Qualified commercial loan”:
(A) means:
(i) a commercial loan in which one or more
persons as part of the same transaction lends, advances, borrows,
or receives, or is obligated to lend or advance or entitled to
borrow or receive, money or credit with an aggregate value of:
(a) $3 million or more if the
commercial loan is secured by real property; or
(b) $250,000 or more if the commercial
loan is not secured by real property and, if the aggregate value of
the commercial loan is less than $500,000, the loan documents
contain a written certification from the borrower that:
(1) the borrower has been
advised by the lender to seek the advice of an attorney and an
accountant in connection with the commercial loan; and
(2) the borrower has had the
opportunity to seek the advice of an attorney and accountant of the
borrower’s choice in connection with the commercial loan; and
(ii) a renewal or extension of a commercial
loan described by Paragraph (A), regardless of the principal amount
of the loan at the time of the renewal or extension; and
(B) does not include a commercial loan made for
the purpose of financing a business licensed by the Motor Vehicle
Board of the Texas Department of Motor Vehicles [Transportation]
under Section 2301.251(a), Occupations Code.
SECTION 3D.02. Subdivision (10-a), Section 348.001,
Finance Code, is amended to read as follows:
(10-a) “Towable recreation vehicle” means a
nonmotorized vehicle that:
(A) was originally designed and manufactured
primarily to provide temporary human habitation in conjunction with
recreational, camping, or seasonal use;
(B) is titled and registered with the Texas
Department of Motor Vehicles [Transportation] as a travel trailer
through a county tax assessor-collector;
(C) is permanently built on a single chassis;
(D) contains at least one life support system;
and
(E) is designed to be towable by a motor vehicle.
SECTION 3D.03. Section 348.518, Finance Code, is amended to
read as follows:
Sec. 348.518. SHARING OF INFORMATION. To ensure consistent
enforcement of law and minimization of regulatory burdens, the
commissioner and the Texas Department of Motor Vehicles
[Transportation] may share information, including criminal history
information, relating to a person licensed under this chapter.
Information otherwise confidential remains confidential after it
is shared under this section.
PART E. GOVERNMENT CODE
SECTION 3E.01. Subsection (d), Section 411.122, Government
Code, is amended to read as follows:
(d) The following state agencies are subject to this
section:
(1) Texas Appraiser Licensing and Certification
Board;
(2) Texas Board of Architectural Examiners;
(3) Texas Board of Chiropractic Examiners;
(4) State Board of Dental Examiners;
(5) Texas Board of Professional Engineers;
(6) Texas Funeral Service Commission;
(7) Texas Board of Professional Geoscientists;
(8) Department of State Health Services, except as
provided by Section 411.110, and agencies attached to the
department, including:
(A) Texas State Board of Examiners of Dietitians;
(B) Texas State Board of Examiners of Marriage
and Family Therapists;
(C) Midwifery Board;
(D) Texas State Perfusionist Advisory Committee
[Board of Examiners of Perfusionists];
(E) Texas State Board of Examiners of
Professional Counselors;
(F) Texas State Board of Social Worker Examiners;
(G) State Board of Examiners for Speech-Language
Pathology and Audiology;
(H) Advisory Board of Athletic Trainers;
(I) State Committee of Examiners in the Fitting
and Dispensing of Hearing Instruments;
(J) Texas Board of Licensure for Professional
Medical Physicists; and
(K) Texas Board of Orthotics and Prosthetics;
(9) Texas Board of Professional Land Surveying;
(10) Texas Department of Licensing and Regulation,
except as provided by Section 411.093;
(11) Texas Commission on Environmental Quality;
(12) Texas Board of Occupational Therapy Examiners;
(13) Texas Optometry Board;
(14) Texas State Board of Pharmacy;
(15) Texas Board of Physical Therapy Examiners;
(16) Texas State Board of Plumbing Examiners;
(17) Texas State Board of Podiatric Medical Examiners;
(18) Polygraph Examiners Board;
(19) Texas State Board of Examiners of Psychologists;
(20) Texas Real Estate Commission;
(21) Board of Tax Professional Examiners;
(22) Texas Department of Transportation;
(23) State Board of Veterinary Medical Examiners;
(24) Texas Department of Housing and Community
Affairs;
(25) secretary of state;
(26) state fire marshal;
(27) Texas Education Agency; [and]
(28) Department of Agriculture; and
(29) Texas Department of Motor Vehicles.
PART F. HEALTH AND SAFETY CODE
SECTION 3F.01. Subsection (e), Section 382.209, Health and
Safety Code, is amended to read as follows:
(e) A vehicle is not eligible to participate in a low-income
vehicle repair assistance, retrofit, and accelerated vehicle
retirement program established under this section unless:
(1) the vehicle is capable of being operated;
(2) the registration of the vehicle:
(A) is current; and
(B) reflects that the vehicle has been registered
in the county implementing the program for the 12 months preceding
the application for participation in the program;
(3) the commissioners court of the county
administering the program determines that the vehicle meets the
eligibility criteria adopted by the commission, the Texas
Department of Motor Vehicles [Transportation], and the Public
Safety Commission;
(4) if the vehicle is to be repaired, the repair is
done by a repair facility recognized by the Department of Public
Safety, which may be an independent or private entity licensed by
the state; and
(5) if the vehicle is to be retired under this
subsection and Section 382.213, the replacement vehicle is a
qualifying motor vehicle.
SECTION 3F.02. Subsection (f), Section 382.210, Health and
Safety Code, is amended to read as follows:
(f) In this section, “total cost” means the total amount of
money paid or to be paid for the purchase of a motor vehicle as set
forth as “sales price” in the form entitled “Application for Texas
Certificate of Title” promulgated by the Texas Department of Motor
Vehicles [Transportation]. In a transaction that does not involve
the use of that form, the term means an amount of money that is
equivalent, or substantially equivalent, to the amount that would
appear as “sales price” on the Application for Texas Certificate of
Title if that form were involved.
SECTION 3F.03. Subsection (a), Section 461.017, Health and
Safety Code, is amended to read as follows:
(a) The Drug Demand Reduction Advisory Committee is
composed of the following members:
(1) five representatives of the public from different
geographic regions of the state who have knowledge and expertise in
issues relating to reducing drug demand and who are appointed by the
commissioner [executive director] of the Department of State Health
Services [Texas Commission on Alcohol and Drug Abuse]; and
(2) one representative of each of the following
agencies or offices who is appointed by the executive director or
commissioner of the agency or office and who is directly involved in
the agency’s or office’s policies, programs, or funding activities
relating to reducing drug demand:
(A) the criminal justice division of the
governor’s office;
(B) the Criminal Justice Policy Council;
(C) the Department of Family and Protective [and
Regulatory] Services;
(D) the Department of Public Safety of the State
of Texas;
(E) the Health and Human Services Commission;
(F) the Texas Alcoholic Beverage Commission;
(G) the Department of State Health Services
[Texas Commission on Alcohol and Drug Abuse];
(H) the Texas Council on Offenders with Mental
Impairments;
(I) the Texas Department of Criminal Justice;
(J) the [Texas Department of] Health and[;
[(K) the Texas Department of] Human Services
Commission;
(K) [(L)] the [Texas] Department of Aging and
Disability Services [Mental Health and Mental Retardation];
(L) [(M)] the Texas Education Agency;
(M) [(N)] the Texas Juvenile Probation
Commission;
(N) [(O)] the Texas Youth Commission;
(O) [(P)] the Department of Assistive and
Rehabilitative Services [Texas Rehabilitation Commission];
(P) [(Q)] the Texas Workforce Commission;
(Q) [(R)] the Texas Department of Motor Vehicles
[Transportation];
(R) [(S)] the comptroller of public accounts;
and
(S) [(T)] the adjutant general’s department.
PART G. HUMAN RESOURCES CODE
SECTION 3G.01. Section 22.041, Human Resources Code, is
amended to read as follows:
Sec. 22.041. THIRD-PARTY INFORMATION. Notwithstanding any
other provision of this code, the department may use information
obtained from a third party to verify the assets and resources of a
person for purposes of determining the person’s eligibility and
need for medical assistance, financial assistance, or nutritional
assistance. Third-party information includes information obtained
from:
(1) a consumer reporting agency, as defined by Section
20.01, Business & Commerce Code;
(2) an appraisal district; or
(3) the Texas Department of Motor Vehicles
[Transportation’s] vehicle registration record database.
SECTION 3G.02. Subsection (g), Section 32.026, Human
Resources Code, is amended to read as follows:
(g) Notwithstanding any other provision of this code, the
department may use information obtained from a third party to
verify the assets and resources of a person for purposes of
determining the person’s eligibility and need for medical
assistance. Third-party information includes information obtained
from:
(1) a consumer reporting agency, as defined by Section
20.01, Business & Commerce Code;
(2) an appraisal district; or
(3) the Texas Department of Motor Vehicles
[Transportation’s] vehicle registration record database.
PART H. LOCAL GOVERNMENT CODE
SECTION 3H.01. Section 130.006, Local Government Code, is
amended to read as follows:
Sec. 130.006. PROCEDURES FOR COLLECTION OF DISHONORED
CHECKS AND INVOICES. A county tax assessor-collector may establish
procedures for the collection of dishonored checks and credit card
invoices. The procedures may include:

(1) official notification to the maker that the check
or invoice has not been honored and that the receipt, registration,
certificate, or other instrument issued on the receipt of the check
or invoice is not valid until payment of the fee or tax is made;
(2) notification of the sheriff or other law
enforcement officers that a check or credit card invoice has not
been honored and that the receipt, registration, certificate, or
other instrument held by the maker is not valid; and
(3) notification to the Texas Department of Motor
Vehicles [Transportation], the comptroller of public accounts, or
the Department of Public Safety that the receipt, registration,
certificate, or other instrument held by the maker is not valid.
SECTION 3H.02. Section 130.007, Local Government Code, is
amended to read as follows:
Sec. 130.007. REMISSION TO STATE NOT REQUIRED; STATE
ASSISTANCE IN COLLECTION. (a) If a fee or tax is required to be
remitted to the comptroller or the Texas Department of Motor
Vehicles [Transportation] and if payment was made to the county tax
assessor-collector by a check that was not honored by the drawee
bank or by a credit card invoice that was not honored by the credit
card issuer, the amount of the fee or tax is not required to be
remitted, but the assessor-collector shall notify the appropriate
department of:
(1) the amount of the fee or tax;
(2) the type of fee or tax involved; and
(3) the name and address of the maker.
(b) The Texas Department of Motor Vehicles [Transportation]
and the comptroller shall assist the county tax assessor-collector
in collecting the fee or tax and may cancel or revoke any receipt,
registration, certificate, or other instrument issued in the name
of the state conditioned on the payment of the fee or tax.
SECTION 3H.03. Section 130.008, Local Government Code, is
amended to read as follows:
Sec. 130.008. LIABILITY OF TAX COLLECTOR FOR VIOLATIONS OF
SUBCHAPTER. If the comptroller or the Texas Department of Motor
Vehicles [Transportation] determines that the county tax
assessor-collector has accepted payment for fees and taxes to be
remitted to that department in violation of Section 130.004 or that
more than two percent of the fees and taxes to be received from the
assessor-collector are not remitted because of the acceptance of
checks that are not honored by the drawee bank or of credit card
invoices that are not honored by the credit card issuer, the
department may notify the assessor-collector that the
assessor-collector may not accept a check or credit card invoice
for the payment of any fee or tax to be remitted to that department.
A county tax assessor-collector who accepts a check or credit card
invoice for the payment of a fee or tax, after notice that the
assessor-collector may not receive a check or credit card invoice
for the payment of fees or taxes to be remitted to a department, is
liable to the state for the amount of the check or credit card
invoice accepted.

SECTION 3H.04. Section 130.009, Local Government Code, is
amended to read as follows:
Sec. 130.009. STATE RULES. The comptroller and the Texas
Department of Motor Vehicles [Transportation] may make rules
concerning the acceptance of checks or credit card invoices by a
county tax assessor-collector and for the collection of dishonored
checks or credit card invoices.
PART I. OCCUPATIONS CODE
SECTION 3I.01. Subsection (c), Section 554.009,
Occupations Code, is amended to read as follows:
(c) The board may register a vehicle with the Texas
Department of Motor Vehicles [Transportation] in an alias name only
for investigative personnel.
SECTION 3I.02. Subdivision (9), Section 2301.002,
Occupations Code, is amended to read as follows:
(9) “Department” means the Texas Department of Motor
Vehicles [Transportation].
SECTION 3I.03. Subsections (a) and (b), Section 2301.005,
Occupations Code, are amended to read as follows:
(a) A reference in law, including a rule, to the Texas Motor
Vehicle Commission or to the board means [the director, except that
a reference to] the board of the Texas Department of Motor Vehicles
[means the commission if it is related to the adoption of rules].
(b) A reference in law, including a rule, to the executive
director of the Texas Motor Vehicle Commission means the executive
director of the Texas Department of Motor Vehicles.
SECTION 3I.04. Subdivisions (2) and (3), Section 2302.001,
Occupations Code, are amended to read as follows:
(2) “Board” [“Commission”] means the board of the
Texas Department of Motor Vehicles [Transportation Commission].
(3) “Department” means the Texas Department of Motor
Vehicles [Transportation].
SECTION 3I.05. Subsection (b), Section 2302.0015,
Occupations Code, is amended to read as follows:
(b) For the purpose of enforcing or administering this
chapter or Chapter 501 or 502, Transportation Code, a member of the
board [commission], an employee or agent of the board [commission]
or department, a member of the Public Safety Commission, an officer
of the Department of Public Safety, or a peace officer may at a
reasonable time:
(1) enter the premises of a business regulated under
one of those chapters; and
(2) inspect or copy any document, record, vehicle,
part, or other item regulated under one of those chapters.
SECTION 3I.06. The heading to Subchapter B, Chapter 2302,
Occupations Code, is amended to read as follows:
SUBCHAPTER B. BOARD [COMMISSION] POWERS AND DUTIES
SECTION 3I.07. Sections 2302.051, 2302.052, and 2302.053,
Occupations Code, are amended to read as follows:
Sec. 2302.051. RULES AND ENFORCEMENT POWERS. The board
[commission] shall adopt rules as necessary to administer this
chapter and may take other action as necessary to enforce this
chapter.
Sec. 2302.052. DUTY TO SET FEES. The board [commission]
shall set application fees, license fees, renewal fees, and other
fees as required to implement this chapter. The board [commission]
shall set the fees in amounts reasonable and necessary to implement
and enforce this chapter.
Sec. 2302.053. RULES RESTRICTING ADVERTISING OR
COMPETITIVE BIDDING. (a) The board [commission] may not adopt a
rule under Section 2302.051 restricting advertising or competitive
bidding by a person who holds a license issued under this chapter
except to prohibit false, misleading, or deceptive practices by the
person.
(b) The board [commission] may not include in its rules to
prohibit false, misleading, or deceptive practices a rule that:
(1) restricts the use of any advertising medium;
(2) restricts the person’s personal appearance or use
of the person’s voice in an advertisement;
(3) relates to the size or duration of an
advertisement by the person; or
(4) restricts the use of a trade name in advertising by
the person.
SECTION 3I.08. Subsection (b), Section 2302.108,
Occupations Code, is amended to read as follows:
(b) The board [commission] by rule shall establish the
grounds for denial, suspension, revocation, or reinstatement of a
license issued under this chapter and the procedures for
disciplinary action. A rule adopted under this subsection may not
conflict with a rule adopted by the State Office of Administrative
Hearings.
SECTION 3I.09. Section 2302.204, Occupations Code, is
amended to read as follows:
Sec. 2302.204. CASUAL SALES. This chapter does not apply to
a person who purchases fewer than three nonrepairable motor
vehicles or salvage motor vehicles from a salvage vehicle dealer,
an insurance company or salvage pool operator in a casual sale at
auction, except that:
(1) the board [commission] shall adopt rules as
necessary to regulate casual sales by salvage vehicle dealers,
insurance companies, or salvage pool operators and to enforce this
section; and
(2) a salvage vehicle dealer, insurance company, or
salvage pool operator who sells a motor vehicle in a casual sale
shall comply with those rules and Subchapter E, Chapter 501,
Transportation Code.
SECTION 3I.10. Subdivision (33), Section 2301.002,
Occupations Code, is repealed.
PART J. PENAL CODE
SECTION 3J.01. Subsection (c), Section 31.03, Penal Code,
is amended to read as follows:
(c) For purposes of Subsection (b):
(1) evidence that the actor has previously
participated in recent transactions other than, but similar to,
that which the prosecution is based is admissible for the purpose of
showing knowledge or intent and the issues of knowledge or intent
are raised by the actor’s plea of not guilty;
(2) the testimony of an accomplice shall be
corroborated by proof that tends to connect the actor to the crime,
but the actor’s knowledge or intent may be established by the
uncorroborated testimony of the accomplice;
(3) an actor engaged in the business of buying and
selling used or secondhand personal property, or lending money on
the security of personal property deposited with the actor, is
presumed to know upon receipt by the actor of stolen property (other
than a motor vehicle subject to Chapter 501, Transportation Code)
that the property has been previously stolen from another if the
actor pays for or loans against the property $25 or more (or
consideration of equivalent value) and the actor knowingly or
recklessly:
(A) fails to record the name, address, and
physical description or identification number of the seller or
pledgor;
(B) fails to record a complete description of the
property, including the serial number, if reasonably available, or
other identifying characteristics; or
(C) fails to obtain a signed warranty from the
seller or pledgor that the seller or pledgor has the right to
possess the property. It is the express intent of this provision
that the presumption arises unless the actor complies with each of
the numbered requirements;
(4) for the purposes of Subdivision (3)(A),
“identification number” means driver’s license number, military
identification number, identification certificate, or other
official number capable of identifying an individual;
(5) stolen property does not lose its character as
stolen when recovered by any law enforcement agency;
(6) an actor engaged in the business of obtaining
abandoned or wrecked motor vehicles or parts of an abandoned or
wrecked motor vehicle for resale, disposal, scrap, repair,
rebuilding, demolition, or other form of salvage is presumed to
know on receipt by the actor of stolen property that the property
has been previously stolen from another if the actor knowingly or
recklessly:
(A) fails to maintain an accurate and legible
inventory of each motor vehicle component part purchased by or
delivered to the actor, including the date of purchase or delivery,
the name, age, address, sex, and driver’s license number of the
seller or person making the delivery, the license plate number of
the motor vehicle in which the part was delivered, a complete
description of the part, and the vehicle identification number of
the motor vehicle from which the part was removed, or in lieu of
maintaining an inventory, fails to record the name and certificate
of inventory number of the person who dismantled the motor vehicle
from which the part was obtained;
(B) fails on receipt of a motor vehicle to obtain
a certificate of authority, sales receipt, or transfer document as
required by Chapter 683, Transportation Code, or a certificate of
title showing that the motor vehicle is not subject to a lien or
that all recorded liens on the motor vehicle have been released; or
(C) fails on receipt of a motor vehicle to
immediately remove an unexpired license plate from the motor
vehicle, to keep the plate in a secure and locked place, or to
maintain an inventory, on forms provided by the Texas Department of
Motor Vehicles [Transportation], of license plates kept under this
paragraph, including for each plate or set of plates the license
plate number and the make, motor number, and vehicle identification
number of the motor vehicle from which the plate was removed;
(7) an actor who purchases or receives a used or
secondhand motor vehicle is presumed to know on receipt by the actor
of the motor vehicle that the motor vehicle has been previously
stolen from another if the actor knowingly or recklessly:
(A) fails to report to the Texas Department of
Motor Vehicles [Transportation] the failure of the person who sold
or delivered the motor vehicle to the actor to deliver to the actor
a properly executed certificate of title to the motor vehicle at the
time the motor vehicle was delivered; or
(B) fails to file with the county tax
assessor-collector of the county in which the actor received the
motor vehicle, not later than the 20th day after the date the actor
received the motor vehicle, the registration license receipt and
certificate of title or evidence of title delivered to the actor in
accordance with Subchapter D, Chapter 520, Transportation Code, at
the time the motor vehicle was delivered;
(8) an actor who purchases or receives from any source
other than a licensed retailer or distributor of pesticides a
restricted-use pesticide or a state-limited-use pesticide or a
compound, mixture, or preparation containing a restricted-use or
state-limited-use pesticide is presumed to know on receipt by the
actor of the pesticide or compound, mixture, or preparation that
the pesticide or compound, mixture, or preparation has been
previously stolen from another if the actor:
(A) fails to record the name, address, and
physical description of the seller or pledgor;
(B) fails to record a complete description of the
amount and type of pesticide or compound, mixture, or preparation
purchased or received; and

(C) fails to obtain a signed warranty from the
seller or pledgor that the seller or pledgor has the right to
possess the property; and
(9) an actor who is subject to Section 409, Packers and
Stockyards Act (7 U.S.C. Section 228b), that obtains livestock from
a commission merchant by representing that the actor will make
prompt payment is presumed to have induced the commission
merchant’s consent by deception if the actor fails to make full
payment in accordance with Section 409, Packers and Stockyards Act
(7 U.S.C. Section 228b).
SECTION 3J.02. Subsection (b), Section 31.11, Penal Code,
is amended to read as follows:
(b) It is an affirmative defense to prosecution under this
section that the person was:
(1) the owner or acting with the effective consent of
the owner of the property involved;
(2) a peace officer acting in the actual discharge of
official duties; or
(3) acting with respect to a number assigned to a
vehicle by the Texas Department of Transportation or the Texas
Department of Motor Vehicles, as applicable, and the person was:
(A) in the actual discharge of official duties as
an employee or agent of the department; or
(B) in full compliance with the rules of the
department as an applicant for an assigned number approved by the
department.
PART K. TAX CODE
SECTION 3K.01. Subsection (d), Section 21.02, Tax Code, is
amended to read as follows:
(d) A motor vehicle does not have taxable situs in a taxing
unit under Subsection (a)(1) if, on January 1, the vehicle:
(1) has been located for less than 60 days at a place
of business of a person who holds a wholesale motor vehicle auction
general distinguishing number issued by the Texas Department of
Motor Vehicles [Transportation] under Chapter 503, Transportation
Code, for that place of business; and
(2) is offered for resale.
SECTION 3K.02. Subsection (d), Section 22.04, Tax Code, is
amended to read as follows:
(d) This section does not apply to a motor vehicle that on
January 1 is located at a place of business of a person who holds a
wholesale motor vehicle auction general distinguishing number
issued by the Texas Department of Motor Vehicles [Transportation]
under Chapter 503, Transportation Code, for that place of business,
and that:
(1) has not acquired taxable situs under Section
21.02(a)(1) in a taxing unit that participates in the appraisal
district because the vehicle is described by Section 21.02(d);
(2) is offered for sale by a dealer who holds a
dealer’s general distinguishing number issued by the Texas
Department of Motor Vehicles [Transportation] under Chapter 503,
Transportation Code, and whose inventory of motor vehicles is
subject to taxation in the manner provided by Sections 23.121 and
23.122; or
(3) is collateral possessed by a lienholder and
offered for sale in foreclosure of a security interest.
SECTION 3K.03. Subdivisions (3), (11), and (14), Subsection
(a), Section 23.121, Tax Code, are amended to read as follows:
(3) “Dealer” means a person who holds a dealer’s
general distinguishing number issued by the Texas Department of
Motor Vehicles [Transportation] under the authority of Chapter 503,
Transportation Code, or who is legally recognized as a motor
vehicle dealer pursuant to the law of another state and who complies
with the terms of Section 152.063(f). The term does not include:
(A) a person who holds a manufacturer’s license
issued under Chapter 2301, Occupations Code [by the Motor Vehicle
Board of the Texas Department of Transportation];
(B) an entity that is owned or controlled by a
person who holds a manufacturer’s license issued under Chapter
2301, Occupations Code [by the Motor Vehicle Board of the Texas
Department of Transportation]; or
(C) a dealer whose general distinguishing number
issued by the Texas Department of Motor Vehicles [Transportation]
under the authority of Chapter 503, Transportation Code, prohibits
the dealer from selling a vehicle to any person except a dealer.
(11) “Sales price” means the total amount of money
paid or to be paid for the purchase of a motor vehicle as set forth
as “sales price” in the form entitled “Application for Texas
Certificate of Title” promulgated by the Texas Department of Motor
Vehicles [Transportation]. In a transaction that does not involve
the use of that form, the term means an amount of money that is
equivalent, or substantially equivalent, to the amount that would
appear as “sales price” on the Application for Texas Certificate of
Title if that form were involved.
(14) “Towable recreational vehicle” means a
nonmotorized vehicle that is designed for temporary human
habitation for recreational, camping, or seasonal use and:
(A) is titled and registered with the Texas
Department of Motor Vehicles [Transportation] through the office of
the collector;
(B) is permanently built on a single chassis;
(C) contains one or more life support systems;
and
(D) is designed to be towable by a motor vehicle.
SECTION 3K.04. Subsections (f), (g), and (h), Section
23.121, Tax Code, are amended to read as follows:
(f) The comptroller shall promulgate a form entitled
Dealer’s Motor Vehicle Inventory Declaration. Except as provided
by Section 23.122(l) [of this code], not later than February 1 of
each year, or, in the case of a dealer who was not in business on
January 1, not later than 30 days after commencement of business,
each dealer shall file a declaration with the chief appraiser and
file a copy with the collector. For purposes of this subsection, a
dealer is presumed to have commenced business on the date of
issuance to the dealer of a dealer’s general distinguishing number
as provided by Chapter 503, Transportation Code. Notwithstanding
the presumption created by this subsection, a chief appraiser may,
at his or her sole discretion, designate as the date on which a
dealer commenced business a date other than the date of issuance to
the dealer of a dealer’s general distinguishing number. The
declaration is sufficient to comply with this subsection if it sets
forth the following information:
(1) the name and business address of each location at
which the dealer owner conducts business;
(2) each of the dealer’s general distinguishing
numbers issued by the Texas Department of Motor Vehicles
[Transportation];
(3) a statement that the dealer owner is the owner of a
dealer’s motor vehicle inventory; and
(4) the market value of the dealer’s motor vehicle
inventory for the current tax year as computed under Section
23.121(b) [of this code].
(g) Under the terms provided by this subsection, the chief
appraiser may examine the books and records of the holder of a
general distinguishing number issued by the Texas Department of
Motor Vehicles [Transportation]. A request made under this
subsection must be made in writing, delivered personally to the
custodian of the records, at the location for which the general
distinguishing number has been issued, must provide a period not
less than 15 days for the person to respond to the request, and must
state that the person to whom it is addressed has the right to seek
judicial relief from compliance with the request. In a request made
under this section the chief appraiser may examine:
(1) the document issued by the Texas Department of
Motor Vehicles [Transportation] showing the person’s general
distinguishing number;
(2) documentation appropriate to allow the chief
appraiser to ascertain the applicability of this section and
Section 23.122 [of this code] to the person;
(3) sales records to substantiate information set
forth in the dealer’s declaration filed by the person.
(h) If a dealer fails to file a declaration as required by
this section, or if, on the declaration required by this section, a
dealer reports the sale of fewer than five motor vehicles in the
prior year, the chief appraiser shall report that fact to the Texas
Department of Motor Vehicles [Transportation] and the department
shall initiate termination proceedings. The chief appraiser shall
include with the report a copy of a declaration, if any, indicating
the sale by a dealer of fewer than five motor vehicles in the prior
year. A report by a chief appraiser to the Texas Department of
Motor Vehicles [Transportation] as provided by this subsection is
prima facie grounds for the cancellation of the dealer’s general
distinguishing number under Section 503.038(a)(9), Transportation
Code, or for refusal by the Texas Department of Motor Vehicles
[Transportation] to renew the dealer’s general distinguishing
number.
SECTION 3K.05. Subsection (c), Section 23.123, Tax Code, is
amended to read as follows:
(c) Information made confidential by this section may be
disclosed:
(1) in a judicial or administrative proceeding
pursuant to a lawful subpoena;
(2) to the person who filed the declaration or
statement or to that person’s representative authorized by the
person in writing to receive the information;
(3) to the comptroller or an employee of the
comptroller authorized by the comptroller to receive the
information;
(4) to a collector or chief appraiser;
(5) to a district attorney, criminal district attorney
or county attorney involved in the enforcement of a penalty imposed
pursuant to Section 23.121 or Section 23.122 [of this code];
(6) for statistical purposes if in a form that does not
identify specific property or a specific property owner;
(7) if and to the extent that the information is
required for inclusion in a public document or record that the
appraisal or collection office is required by law to prepare or
maintain; or
(8) to the Texas Department of Motor Vehicles
[Transportation] for use by that department in auditing compliance
of its licensees with appropriate provisions of applicable law.
SECTION 3K.06. Subdivision (11), Subsection (a), Section
23.124, Tax Code, is amended to read as follows:
(11) “Sales price” means the total amount of money
paid or to be paid for the purchase of:
(A) a vessel, other than a trailer that is
treated as a vessel, as set forth as “sales price” in the form
entitled “Application for Texas Certificate of Number/Title for
Boat/Seller, Donor or Trader’s Affidavit” promulgated by the Parks
and Wildlife Department;
(B) an outboard motor as set forth as “sales
price” in the form entitled “Application for Texas Certificate of
Title for an Outboard Motor/Seller, Donor or Trader’s Affidavit”
promulgated by the Parks and Wildlife Department; or
(C) a trailer that is treated as a vessel as set
forth as “sales price” in the form entitled “Application for Texas
Certificate of Title” promulgated by the Texas Department of Motor
Vehicles [Transportation].
In a transaction involving a vessel, an outboard motor,
or a trailer that is treated as a vessel that does not involve the
use of one of these forms, the term means an amount of money that is
equivalent, or substantially equivalent, to the amount that would
appear as “sales price” on the Application for Texas Certificate of
Number/Title for Boat/Seller, Donor or Trader’s Affidavit, the
Application for Texas Certificate of Title for an Outboard
Motor/Seller, Donor or Trader’s Affidavit, or the Application for
Texas Certificate of Title if one of these forms were involved.
SECTION 3K.07. Section 113.011, Tax Code, is amended to
read as follows:
Sec. 113.011. LIENS FILED WITH TEXAS DEPARTMENT OF MOTOR
VEHICLES [TRANSPORTATION]. The comptroller shall furnish to the
Texas Department of Motor Vehicles [Transportation] each release of
a tax lien filed by the comptroller with that department.
SECTION 3K.08. Subsections (a) and (f), Section 152.0412,
Tax Code, are amended to read as follows:

(a) In this section, “standard presumptive value” means the
private-party transaction value of a motor vehicle, as determined
by the Texas Department of Motor Vehicles [Transportation] based on
an appropriate regional guidebook of a nationally recognized motor
vehicle value guide service, or based on another motor vehicle
guide publication that the department determines is appropriate if
a private-party transaction value for the motor vehicle is not
available from a regional guidebook described by this subsection.
(f) The Texas Department of Motor Vehicles [Transportation]
shall maintain information on the standard presumptive values of
motor vehicles as part of the department’s registration and title
system. The department shall update the information at least
quarterly each calendar year and publish, electronically or
otherwise, the updated information.
SECTION 3K.09. Section 152.042, Tax Code, is amended to
read as follows:
Sec. 152.042. COLLECTION OF TAX ON METAL DEALER PLATES. A
person required to pay the tax imposed by Section 152.027 shall pay
the tax to the Texas Department of Motor Vehicles [Transportation],
and the department may not issue the metal dealer’s plates until the
tax is paid.
SECTION 3K.10. Subsection (b), Section 152.121, Tax Code,
is amended to read as follows:
(b) Taxes on metal dealer plates collected by the Texas
Department of Motor Vehicles [Transportation] shall be deposited by
the department in the state treasury in the same manner as are other
taxes collected under this chapter.
SECTION 3K.11. Subdivision (52), Section 162.001, Tax Code,
is amended to read as follows:
(52) “Registered gross weight” means the total weight
of the vehicle and carrying capacity shown on the registration
certificate issued by the Texas Department of Motor Vehicles
[Transportation].
ARTICLE 4. USED AUTOMOTIVE PARTS RECYCLERS
SECTION 4.01. Subdivision (6), Section 2302.001,
Occupations Code, is amended to read as follows:
(6) “Salvage vehicle agent” means a person who
acquires, sells, or otherwise deals in nonrepairable or salvage
motor vehicles [or used parts] in this state as directed by the
salvage vehicle dealer under whose license the person operates.
The term does not include a person who:
(A) is a licensed salvage vehicle dealer or a
licensed used automotive parts recycler;
(B) is a partner, owner, or officer of a business
entity that holds a salvage vehicle dealer license or a used
automotive parts recycler license;
(C) is an employee of a licensed salvage vehicle
dealer or a licensed used automotive parts recycler; or
(D) only transports salvage motor vehicles for a
licensed salvage vehicle dealer or a licensed used automotive parts
recycler.
SECTION 4.02. Subsection (b), Section 2302.006,
Occupations Code, is amended to read as follows:
(b) This chapter applies to a transaction in which a motor
vehicle:
(1) is sold, transferred, released, or delivered to a
metal recycler for the purpose of reuse or resale as a motor vehicle
[or as a source of used parts]; and
(2) is used for that purpose.
SECTION 4.03. Subchapter A, Chapter 2302, Occupations Code,
is amended by adding Section 2302.008 to read as follows:
Sec. 2302.008. APPLICABILITY OF CHAPTER TO USED AUTOMOTIVE
PARTS RECYCLERS. This chapter does not apply to a used automotive
parts recycler licensed under Chapter 2309.
SECTION 4.04. Subsection (b), Section 2302.103,
Occupations Code, is amended to read as follows:
(b) An applicant may apply for a salvage vehicle dealer
license with an endorsement in one or more of the following
classifications:
(1) new automobile dealer;
(2) used automobile dealer;
(3) [used vehicle parts dealer;
[(4)] salvage pool operator;
(4) [(5)] salvage vehicle broker; or
(5) [(6)] salvage vehicle rebuilder.
SECTION 4.05. Subsection (d), Section 2302.107,
Occupations Code, is amended to read as follows:
(d) A salvage vehicle agent may acquire, sell, or otherwise
deal in, nonrepairable or salvage motor vehicles [or used parts] as
directed by the authorizing dealer.
SECTION 4.06. Section 2302.202, Occupations Code, is
amended to read as follows:
Sec. 2302.202. RECORDS OF PURCHASES. A salvage vehicle
dealer shall maintain a record of each salvage motor vehicle [and
each used part] purchased or sold by the dealer.
SECTION 4.07. Subtitle A, Title 14, Occupations Code, is
amended by adding Chapter 2309 to read as follows:
CHAPTER 2309. USED AUTOMOTIVE PARTS RECYCLERS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 2309.001. SHORT TITLE. This chapter may be cited as
the Texas Used Automotive Parts Recycling Act.
Sec. 2309.002. DEFINITIONS. In this chapter:
(1) “Insurance company,” “metal recycler,” “motor
vehicle,” “nonrepairable motor vehicle,” “nonrepairable vehicle
title,” “salvage motor vehicle,” “salvage vehicle title,” and
“salvage vehicle dealer” have the meanings assigned by Section
501.091, Transportation Code.
(2) “Commission” means the Texas Commission of
Licensing and Regulation.
(3) “Department” means the Texas Department of
Licensing and Regulation.
(4) “Executive director” means the executive director
of the department.
(5) “Used automotive part” has the meaning assigned to
“used part” by Section 501.091, Transportation Code.
(6) “Used automotive parts recycler” means a person
licensed under this chapter to operate a used automotive parts
recycling business.
(7) “Used automotive parts recycling” means the
dismantling and reuse or resale of used automotive parts and the
safe disposal of salvage motor vehicles or nonrepairable motor
vehicles, including the resale of those vehicles.
Sec. 2309.003. APPLICABILITY OF CHAPTER TO METAL RECYCLERS.
(a) Except as provided by Subsection (b), this chapter does not
apply to a transaction to which a metal recycler is a party.
(b) This chapter applies to a transaction in which a motor
vehicle:
(1) is sold, transferred, released, or delivered to a
metal recycler as a source of used automotive parts; and
(2) is used as a source of used automotive parts.
Sec. 2309.004. APPLICABILITY OF CHAPTER TO SALVAGE VEHICLE
DEALERS. (a) Except as provided by Subsection (b), this chapter
does not apply to a transaction in which a salvage vehicle dealer is
a party.
(b) This chapter applies to a salvage vehicle dealer who
deals in used automotive parts as more than an incidental part of
the salvage vehicle dealer’s primary business.
Sec. 2309.005. APPLICABILITY OF CHAPTER TO INSURANCE
COMPANIES. This chapter does not apply to an insurance company.
[Sections 2309.006-2309.050 reserved for expansion]
SUBCHAPTER B. ADVISORY BOARD
Sec. 2309.051. USED AUTOMOTIVE PARTS RECYCLING ADVISORY
BOARD. (a) The advisory board consists of five members
representing the used automotive parts industry in this state
appointed by the presiding officer of the commission with the
approval of the commission.
(b) The advisory board shall include members who represent
used automotive parts businesses owned by domestic entities, as
defined by Section 1.002, Business Organizations Code.
(c) The advisory board shall include one member who
represents a used automotive parts business owned by a foreign
entity, as defined by Section 1.002, Business Organizations Code.
(d) The advisory board may not include more than one member
from any one used automotive parts business entity.
(e) Appointments to the advisory board shall be made without
regard to the race, color, disability, sex, religion, age, or
national origin of the appointee.
Sec. 2309.052. TERMS; VACANCIES. (a) Advisory board
members serve terms of six years, with the terms of one or two
members expiring on February 1 of each odd-numbered year.
(b) A member may not serve more than two full consecutive
terms.
(c) If a vacancy occurs during a term, the presiding officer
of the commission shall appoint a replacement who meets the
qualifications of the vacated position to serve for the remainder
of the term.
Sec. 2309.053. PRESIDING OFFICER. The presiding officer of
the commission shall appoint one of the advisory board members to
serve as presiding officer of the advisory board for a term of one
year. The presiding officer of the advisory board may vote on any
matter before the advisory board.
Sec. 2309.054. POWERS AND DUTIES OF ADVISORY BOARD. The
advisory board shall provide advice and recommendations to the
department on technical matters relevant to the administration and
enforcement of this chapter, including licensing standards.
Sec. 2309.055. COMPENSATION; REIMBURSEMENT OF EXPENSES.
Advisory board members may not receive compensation but are
entitled to reimbursement for actual and necessary expenses
incurred in performing the functions of the advisory board, subject
to the General Appropriations Act.
Sec. 2309.056. MEETINGS. The advisory board shall meet
twice annually and may meet at other times at the call of the
presiding officer of the commission or the executive director.
[Sections 2309.057-2309.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES OF COMMISSION AND DEPARTMENT
Sec. 2309.101. GENERAL POWERS AND DUTIES. The executive
director or commission, as appropriate, may take action as
necessary to administer and enforce this chapter.
Sec. 2309.102. RULES. (a) The commission shall adopt
rules for licensing used automotive parts recyclers and used
automotive parts employees.
(b) The commission by rule shall adopt standards of conduct
for license holders under this chapter.
Sec. 2309.103. RULES REGARDING LICENSING AND STANDARDS OF
CONDUCT. (a) The commission shall adopt rules for licensing
applicants, including rules for denial of an application if the
applicant, a partner, principal, officer, or general manager of the
applicant, or another license or permit holder with a connection to
the applicant, has:
(1) before the application date, been convicted of,
pleaded guilty or nolo contendere to, or been placed on deferred
adjudication for:
(A) a felony; or
(B) a misdemeanor punishable by confinement in
jail or by a fine exceeding $500;
(2) violated an order of the commission or executive
director, including an order for sanctions or administrative
penalties; or
(3) knowingly submitted false information on the
application.
(b) The commission by rule shall adopt standards of conduct
for license holders under this chapter.
Sec. 2309.104. FEES. The commission shall establish and
collect reasonable and necessary fees in amounts sufficient to
cover the costs of administering this chapter.
Sec. 2309.105. RULES RESTRICTING ADVERTISING OR
COMPETITIVE BIDDING. (a) The commission may not adopt a rule
restricting advertising or competitive bidding by a person who
holds a license issued under this chapter except to prohibit false,
misleading, or deceptive practices by the person.
(b) The commission may not include in its rules to prohibit
false, misleading, or deceptive practices a rule that:
(1) restricts the use of any advertising medium;
(2) restricts the person’s personal appearance or use
of the person’s voice in an advertisement;
(3) relates to the size or duration of an
advertisement by the person; or
(4) restricts the use of a trade name in advertising by
the person.
Sec. 2309.106. PERIODIC AND RISK-BASED INSPECTIONS.
(a) The department shall inspect each used automotive parts
recycling facility at least once every two years.
(b) The department may enter and inspect at any time during
business hours:
(1) the place of business of any person regulated
under this chapter; or
(2) any place in which the department has reasonable
cause to believe that a license holder is in violation of this
chapter or in violation of a rule or order of the commission or
executive director.
(c) The department shall conduct additional inspections
based on a schedule of risk-based inspections using the following
criteria:
(1) the inspection history;
(2) any history of complaints involving a used
automotive parts recycler; and
(3) any other factor determined by the commission by
rule.
(d) A used automotive parts recycler shall pay a fee for
each risk-based inspection performed under this section. The
commission by rule shall set the amount of the fee.
(e) In conducting an inspection under this section, the
department may inspect a facility, a used automotive part, a
business record, or any other place or thing reasonably required to
enforce this chapter or a rule or order adopted under this chapter.
Sec. 2309.107. PERSONNEL. The department may employ
personnel necessary to administer and enforce this chapter.
[Sections 2309.108-2309.150 reserved for expansion]
SUBCHAPTER D. LICENSE REQUIREMENTS
Sec. 2309.151. USED AUTOMOTIVE PARTS RECYCLER LICENSE
REQUIRED. (a) Unless the person holds a used automotive parts
recycler license issued under this chapter, a person may not own or
operate a used automotive parts recycling business or sell used
automotive parts.
(b) A used automotive parts recycler license:
(1) is valid only with respect to the person who
applied for the license; and
(2) authorizes the license holder to operate a used
automotive parts recycling business only at the one facility listed
on the license.
Sec. 2309.152. GENERAL LICENSE APPLICATION REQUIREMENTS.
An applicant for a used automotive parts recycler license under
this chapter must submit to the department:
(1) a completed application on a form prescribed by
the executive director;
(2) the required fees; and
(3) any other information required by commission rule.
Sec. 2309.153. LICENSE REQUIREMENTS. An applicant for a
used automotive parts recycler license under this chapter must
provide in a manner prescribed by the executive director:
(1) a federal tax identification number;
(2) proof of general liability insurance in an amount
not less than $250,000; and
(3) proof of a storm water permit if the applicant is
required by the Texas Commission on Environmental Quality to obtain
a permit.

Sec. 2309.154. USED AUTOMOTIVE PARTS EMPLOYEE LICENSE
REQUIRED. (a) A person employed by a used automotive parts
recycler may not in the scope of the person’s employment acquire a
vehicle or used automotive parts and may not sell used automotive
parts unless the person holds a used automotive parts employee
license issued under this chapter.
(b) The commission by rule shall adopt requirements for the
application for and issuance of a used automotive parts employee
license under this chapter.
Sec. 2309.155. NONTRANSFERABILITY OF LICENSE. A license
issued by the executive director is valid throughout this state and
is not transferable.
Sec. 2309.156. LICENSE RENEWAL. (a) A license issued under
this chapter is valid for one year. The department may adopt a
system under which licenses expire at different times during the
year.
(b) The department shall notify the license holder at least
30 days before the date a license expires. The notice must be in
writing and sent to the license holder’s last known address
according to the records of the department.
(c) The commission by rule shall adopt requirements to renew
a license issued under this chapter.
[Sections 2309.157-2309.200 reserved for expansion]
SUBCHAPTER E. LOCAL REGULATION
Sec. 2309.201. APPLICABILITY OF CERTAIN MUNICIPAL
ORDINANCES, LICENSES, AND PERMITS. (a) The requirements of this
chapter apply in addition to the requirements of any applicable
municipal ordinance relating to the regulation of a person who
deals in used automotive parts.
(b) This chapter does not prohibit the enforcement of an
applicable municipal license or permit requirement that is related
to an activity regulated under this chapter.
[Sections 2309.202-2309.250 reserved for expansion]
SUBCHAPTER F. ENFORCEMENT
Sec. 2309.251. ADMINISTRATIVE PENALTY. (a) The commission
may impose an administrative penalty on a person under Subchapter
F, Chapter 51, regardless of whether the person holds a license
under this chapter, if the person violates:
(1) this chapter or a rule adopted under this chapter;
or
(2) a rule or order of the executive director or
commission.
(b) An administrative penalty may not be imposed unless the
person charged with a violation is provided the opportunity for a
hearing.
Sec. 2309.252. CEASE AND DESIST ORDER; INJUNCTION; CIVIL
PENALTY. (a) The executive director may issue a cease and desist
order as necessary to enforce this chapter if the executive
director determines that the action is necessary to prevent a
violation of this chapter and to protect public health and safety.
(b) The attorney general or executive director may
institute an action for an injunction or a civil penalty under this
chapter as provided by Section 51.352.
Sec. 2309.253. SANCTIONS. The department may impose
sanctions as provided by Section 51.353.
Sec. 2309.254. CRIMINAL PENALTY; LICENSING. (a) A person
commits an offense if the person:
(1) violates the licensing requirements of this
chapter;
(2) deals in used parts without a license required by
this chapter; or
(3) employs an individual who does not hold the
appropriate license required by this chapter.
(b) An offense under this section is a Class C misdemeanor.
[Sections 2309.255-2309.300 reserved for expansion]
SUBCHAPTER G. CONDUCTING BUSINESS
Sec. 2309.301. DUTIES ON ACQUISITION OF SALVAGE MOTOR
VEHICLE. (a) A used automotive parts recycler who acquires
ownership of a salvage motor vehicle shall obtain a properly
assigned title from the previous owner of the vehicle.
(b) A used automotive parts recycler who acquires ownership
of a motor vehicle, nonrepairable motor vehicle, or salvage motor
vehicle for the purpose of dismantling, scrapping, or destroying
the motor vehicle, shall, before the 31st day after the date of
acquiring the motor vehicle, submit to the Texas Department of
Transportation a properly assigned manufacturer’s certificate of
origin, regular certificate of title, nonrepairable vehicle title,
salvage vehicle title, other ownership document, or comparable
out-of-state ownership document for the motor vehicle.
(c) After receiving the title or document, the Texas
Department of Transportation shall issue the used automotive parts
recycler a receipt for the manufacturer’s certificate of origin,
regular certificate of title, nonrepairable vehicle title, salvage
vehicle title, other ownership document, or comparable
out-of-state ownership document.
(d) The recycler shall comply with Subchapter E, Chapter
501, Transportation Code.
Sec. 2309.302. RECORDS OF PURCHASES. A used automotive
parts recycler shall maintain a record of or sales receipt for each
motor vehicle, salvage motor vehicle, nonrepairable motor vehicle,
and used automotive part purchased.
Sec. 2309.303. REGISTRATION OF NEW BUSINESS LOCATION.
Before moving a place of business, a used automotive parts recycler
must notify the department of the new location. The used automotive
parts recycler shall provide a storm water permit for the location
if a permit is required by the Texas Commission on Environmental
Quality.
[Sections 2309.304-2309.350 reserved for expansion]
SUBCHAPTER H. ADDITIONAL DUTIES OF USED AUTOMOTIVE PARTS RECYCLER
IN CONNECTION WITH MOTOR VEHICLE COMPONENT PARTS
Sec. 2309.351. DEFINITIONS. In this subchapter:
(1) “Component part” means a major component part as
defined by Section 501.091, Transportation Code, or a minor
component part.
(2) “Interior component part” means a motor vehicle’s
seat or radio.
(3) “Minor component part” means an interior component
part, a special accessory part, or a motor vehicle part that
displays or should display at least one of the following:
(A) a federal safety certificate;
(B) a motor number;
(C) a serial number or a derivative; or
(D) a manufacturer’s permanent vehicle
identification number or a derivative.
(4) “Special accessory part” means a motor vehicle’s
tire, wheel, tailgate, or removable glass top.
Sec. 2309.352. REMOVAL OF LICENSE PLATES. Immediately on
receipt of a motor vehicle, a used automotive parts recycler shall:
(1) remove any unexpired license plates from the
vehicle; and
(2) place the license plates in a secure place until
destroyed by the used automotive parts recycler.
Sec. 2309.353. DISMANTLEMENT OR DISPOSITION OF MOTOR
VEHICLE. A used automotive parts recycler may not dismantle or
dispose of a motor vehicle unless the recycler first obtains:
(1) a certificate of authority to dispose of the
vehicle, a sales receipt, or a transfer document for the vehicle
issued under Chapter 683, Transportation Code; or
(2) a certificate of title showing that there are no
liens on the vehicle or that all recorded liens have been released.
Sec. 2309.354. RECORD OF PURCHASE; INVENTORY OF PARTS.
(a) A used automotive parts recycler shall keep an accurate and
legible record of each used component part purchased by or
delivered to the recycler. The record must include:
(1) the date of purchase or delivery;
(2) the driver’s license number of the seller and a
legible photocopy of the seller’s driver’s license; and
(3) a description of the part and, if applicable, the
make and model of the part.
(b) As an alternative to the information required by
Subsection (a), a used automotive parts recycler may record:
(1) the name of the person who sold the part or the
motor vehicle from which the part was obtained; and
(2) the Texas certificate of inventory number or the
federal taxpayer identification number of the person.
(c) The department shall prescribe the form of the record
required by Subsection (a) and shall make the form available to used
automotive parts recyclers.
(d) This section does not apply to:
(1) an interior component part or special accessory
part from a motor vehicle more than 10 years old; or
(2) a part delivered to a used automotive parts
recycler by a commercial freight line, commercial carrier, or
licensed used automotive parts recycler.
Sec. 2309.355. RETENTION OF COMPONENT PARTS. (a) A used
automotive parts recycler shall retain each component part in its
original condition on the business premises of the recycler for at
least three calendar days, excluding Sundays, after the date the
recycler obtains the part.
(b) This section does not apply to the purchase by a used
automotive parts recycler of a nonoperational engine,
transmission, or rear axle assembly from another used automotive
parts recycler or an automotive-related business.
Sec. 2309.356. MAINTENANCE OF RECORDS. A used automotive
parts recycler shall maintain copies of each record required under
this subchapter until the first anniversary of the purchase date of
the item for which the record is maintained.
Sec. 2309.357. SURRENDER OF CERTAIN DOCUMENTS OR LICENSE
PLATES. (a) A used automotive parts recycler shall surrender to
the Texas Department of Transportation for cancellation a
certificate of title or authority, sales receipt, or transfer
document, as required by the department.
(b) The Texas Department of Transportation shall provide a
signed receipt for a surrendered certificate of title.
Sec. 2309.358. INSPECTION OF RECORDS. (a) A peace officer
at any reasonable time may inspect a record required to be
maintained under this subchapter, including an inventory record.
(b) On demand by a peace officer, a used automotive parts
recycler shall provide to the officer a copy of a record required to
be maintained under this subchapter.
(c) A peace officer may inspect the inventory on the
premises of a used automotive parts recycler at any reasonable time
to verify, check, or audit the records required to be maintained
under this subchapter.
(d) A used automotive parts recycler or an employee of the
recycler shall allow and may not interfere with a peace officer’s
inspection of the recycler’s inventory, premises, or required
inventory records.
[Sections 2309.359-2309.400 reserved for expansion]
SUBCHAPTER I. MOTOR VEHICLE SALVAGE YARDS IN CERTAIN COUNTIES
Sec. 2309.401. APPLICABILITY OF SUBCHAPTER. This
subchapter applies only to a used automotive parts facility located
in a county with a population of 2.8 million or more.
Sec. 2309.402. LIMITS ON OPERATION OF HEAVY MACHINERY. (a)
A used automotive parts recycler may not operate heavy machinery in
a used automotive parts recycling facility between the hours of 7
p.m. of one day and 7 a.m. of the following day.
(b) This section does not apply to conduct necessary to a
sale or purchase by the recycler.
SECTION 4.08. Section 501.091, Transportation Code, is
amended by amending Subdivision (17) and adding Subdivision (20) to
read as follows:
(17) “Salvage vehicle dealer” means a person engaged
in this state in the business of acquiring, selling, [dismantling,]
repairing, rebuilding, reconstructing, or otherwise dealing in
nonrepairable motor vehicles, salvage motor vehicles, or, if
incidental to a salvage motor vehicle dealer’s primary business,
used automotive parts. The term does not include a person who
casually repairs, rebuilds, or reconstructs fewer than five [three]
salvage motor vehicles in the same calendar year or, except as
provided by Paragraph (C), a used automotive parts recycler. The
term includes a person engaged in the business of:
(A) a salvage vehicle dealer, regardless of
whether the person holds a license issued by the department to
engage in that business;
(B) dealing in nonrepairable motor vehicles or
salvage motor vehicles[, regardless of whether the person deals in
used parts]; or
(C) a used automotive parts recycler if the sale
of repaired, rebuilt, or reconstructed nonrepairable motor
vehicles or salvage motor vehicles is more than an incidental part
of the used automotive parts recycler’s business [dealing in used
parts regardless of whether the person deals in nonrepairable motor
vehicles or salvage motor vehicles].
(20) “Used parts dealer” and “used automotive parts
recycler” have the meaning assigned to “used automotive parts
recycler” by Section 2309.002, Occupations Code.
SECTION 4.09. Subsection (d), Section 501.092,
Transportation Code, is amended to read as follows:
(d) An insurance company may sell a motor vehicle to which
this section applies, or assign a salvage vehicle title or a
nonrepairable vehicle title for the motor vehicle, only to a
salvage vehicle dealer, an out-of-state buyer, a buyer in a casual
sale at auction, [or] a metal recycler, or a used automotive parts
recycler. If the motor vehicle is not a salvage motor vehicle or a
nonrepairable motor vehicle, the insurance company is not required
to surrender the regular certificate of title for the vehicle or to
be issued a salvage vehicle title or a nonrepairable vehicle title
for the motor vehicle.
SECTION 4.10. Subsections (a) and (b), Section 501.095,
Transportation Code, are amended to read as follows:
(a) If the department has not issued a nonrepairable vehicle
title or salvage vehicle title for the motor vehicle and an
out-of-state ownership document for the motor vehicle has not been
issued by another state or jurisdiction, a business or governmental
entity described by Subdivisions (1)-(3) may sell, transfer, or
release a nonrepairable motor vehicle or salvage motor vehicle only
to a person who is:
(1) a licensed salvage vehicle dealer, a used
automotive parts recycler under Chapter 2309, Occupations Code, or
a metal recycler under Chapter 2302, Occupations Code;
(2) an insurance company that has paid a claim on the
nonrepairable or salvage motor vehicle;
(3) a governmental entity; or
(4) an out-of-state buyer.
(b) A person, other than a salvage vehicle dealer, a used
automotive parts recycler, or an insurance company licensed to do
business in this state, who acquired ownership of a nonrepairable
or salvage motor vehicle that has not been issued a nonrepairable
vehicle title, salvage vehicle title, or a comparable ownership
document issued by another state or jurisdiction shall, before
selling the motor vehicle, surrender the properly assigned
certificate of title for the motor vehicle to the department and
apply to the department for:
(1) a nonrepairable vehicle title if the vehicle is a
nonrepairable motor vehicle; or
(2) a salvage vehicle title if the vehicle is a salvage
motor vehicle.
SECTION 4.11. Section 501.105, Transportation Code, is
amended to read as follows:
Sec. 501.105. RETENTION OF RECORDS RELATING TO CERTAIN
CASUAL SALES. Each licensed salvage vehicle dealer, used
automotive parts recycler, or insurance company that sells a
nonrepairable motor vehicle or a salvage motor vehicle at a casual
sale shall keep on the business premises of the dealer or the
insurance company a list of all casual sales made during the
preceding 36-month period that contains:
(1) the date of the sale;
(2) the name of the purchaser;
(3) the name of the jurisdiction that issued the
identification document provided by the purchaser, as shown on the
document; and
(4) the vehicle identification number.
SECTION 4.12. Section 2302.253, Occupations Code, is
repealed.
SECTION 4.13. Not later than January 1, 2010, the Texas
Commission of Licensing and Regulation shall adopt rules under
Section 2309.102, Occupations Code, as added by this Act.
SECTION 4.14. If there is a conflict between a provision of
this Act and a provision of another Act of the 81st Legislature,
Regular Session, 2009, that becomes law concerning the licensing or
regulation of used automotive parts recyclers, this Act prevails
regardless of the relative dates of enactment.
SECTION 4.15. Sections 2309.151 and 2309.154, Occupations
Code, as added by this article, and Subchapter F, Chapter 2309,
Occupations Code, as added by this article, take effect September
1, 2010.
ARTICLE 5. MANUFACTURER OR DISTRIBUTOR OWNERSHIP, OPERATION, OR
CONTROL OF DEALERSHIP
SECTION 5.01. Section 2301.476, Occupations Code, is
amended by adding Subsection (h-1) to read as follows:
(h-1) A person who on January 18, 2002, held both a
converter’s license to convert buses with a gross vehicle weight
rating of 40,000 pounds or more and a franchised dealer’s license to
sell buses issued under this chapter may:
(1) regain and hold both licenses; and
(2) operate as both a converter and franchised dealer
of bus conversions with a gross vehicle weight rating of 40,000
pounds or more but of no other type of vehicle.
ARTICLE 6. TRANSFERS OF CERTAIN POWERS, DUTIES, OBLIGATIONS, AND
RIGHTS OF ACTION
SECTION 6.01. (a) All powers, duties, obligations, and
rights of action of the Motor Vehicle Division and the Vehicle
Titles and Registration Division of the Texas Department of
Transportation are transferred to the Texas Department of Motor
Vehicles and all powers, duties, obligations, and rights of action
of the Texas Transportation Commission in connection or associated
with those divisions of the Texas Department of Transportation are
transferred to the board of the Texas Department of Motor Vehicles
on November 1, 2009.
(b) The powers, duties, obligations, and rights of action of
the portion of the Motor Carrier Division of the Texas Department of
Transportation that is responsible for motor carrier registration
and the enforcement of Subtitle F, Title 7, Transportation Code,
are transferred to the Texas Department of Motor Vehicles and the
associated powers, duties, obligations, and rights of action of the
Texas Transportation Commission are transferred to the board of the
Texas Department of Motor Vehicles on November 1, 2009.
(c) In connection with the transfers required by
Subsections (a) and (b) of this section, the personnel, furniture,
computers, other property and equipment, files, and related
materials used by the Motor Vehicle Division, the Vehicle Titles
and Registration Division, or the portion of the Motor Carrier
Division of the Texas Department of Transportation described in
Subsection (b) of this section are transferred to the Texas
Department of Motor Vehicles.
(d) The Texas Department of Motor Vehicles shall continue
any proceeding involving the Motor Vehicle Division, the Vehicle
Titles and Registration Division, or the portion of the Motor
Carrier Division of the Texas Department of Transportation
described in Subsection (b) of this section that was brought before
the effective date of this Act in accordance with the law in effect
on the date the proceeding was brought, and the former law is
continued in effect for that purpose.
(e) A certificate, license, document, permit, registration,
or other authorization issued by the Motor Vehicle Division or the
Vehicle Titles and Registration Division of the Texas Department of
Transportation or a registration issued by the Motor Carrier
Division of the Texas Department of Transportation that is in
effect on the effective date of this Act remains valid for the
period for which it was issued unless suspended or revoked by the
Texas Department of Motor Vehicles.
(f) A rule adopted by the Texas Transportation Commission or
the executive director of the Texas Department of Transportation in
connection with or relating to the Motor Vehicle Division, the
Vehicle Titles and Registration Division, or the portion of the
Motor Carrier Division of the Texas Department of Transportation
described in Subsection (b) of this section continues in effect
until it is amended or repealed by the board of the Texas Department
of Motor Vehicles or the Texas Department of Motor Vehicles, as
applicable.
(g) The unobligated and unexpended balance of any
appropriations made to the Texas Department of Transportation in
connection with or relating to the Motor Vehicle Division, the
Vehicle Titles and Registration Division, or the portion of the
Motor Carrier Division of the Texas Department of Transportation
described in Subsection (b) of this section for the state fiscal
biennium ending August 31, 2009, is transferred and reappropriated
to the Texas Department of Motor Vehicles for the purpose of
implementing the powers, duties, obligations, and rights of action
transferred to that department under Subsections (a) and (b) of
this section.
(h) The Texas Department of Transportation shall continue,
as necessary, to perform the duties and functions being transferred
to the Texas Department of Motor Vehicles until the transfer of
agency duties and functions is complete.
SECTION 6.02. (a) In connection with the establishment by
this Act of the Automobile Burglary and Theft Prevention Authority
in the Texas Department of Motor Vehicles and with the transfer by
this Act of the duty to provide personnel and services to the
Automobile Burglary and Theft Prevention Authority from the Texas
Department of Transportation to the Texas Department of Motor
Vehicles, the personnel, furniture, computers, other property and
equipment, files, and related materials used by the Automobile
Burglary and Theft Prevention Authority are transferred to the
Texas Department of Motor Vehicles.
(b) The unobligated and unexpended balance of any
appropriations made to the Texas Department of Transportation in
connection with or relating to the Automobile Burglary and Theft
Prevention Authority for the state fiscal biennium ending August
31, 2009, is transferred and reappropriated to the Texas Department
of Motor Vehicles for the purpose of allowing the authority to
continue to exercise its powers, duties, and obligations under the
auspices of that department.
SECTION 6.03. (a) In addition to the positions of the Texas
Department of Transportation assigned to the Vehicle Titles and
Registration Division, Motor Vehicle Division, Motor Carrier
Division, and Automobile Burglary and Theft Prevention Authority
Division that are transferred to the Texas Department of Motor
Vehicles, it is estimated that 75 other full-time equivalent
employee positions of the Texas Department of Transportation
primarily support the transferred divisions and, subject to this
section, those positions are also transferred to the Texas
Department of Motor Vehicles. The number of positions transferred
under this subsection may be modified by agreement of the two
agencies in a memorandum of understanding.
(b) If in another Act of the 81st Legislature, Regular
Session, 2009, the legislature establishes a maximum number of
full-time equivalent employee positions for the Texas Department of
Motor Vehicles, the number of positions transferred under
Subsection (a) of this section may not result in a number of
full-time equivalent employee positions of that department that
exceeds the maximum.
(c) When filling a position described by Subsection (a) of
this section, the Texas Department of Motor Vehicles shall give
first consideration to an applicant who, as of September 1, 2009,
was a full-time employee of the Texas Department of Transportation
and primarily supported one or more of the transferred divisions.
ARTICLE 7. APPOINTMENT OF BOARD
SECTION 7.01. Not later than October 1, 2009, the governor
shall appoint the members of the board of the Texas Department of
Motor Vehicles in accordance with Subchapter B, Chapter 1001,
Transportation Code, as added by this Act.
ARTICLE 8. MEMORANDUM OF UNDERSTANDING
SECTION 8.01. (a) The board of the Texas Department of
Motor Vehicles and the Texas Transportation Commission shall enter
into or revise a joint memorandum of understanding to coordinate
the Texas Department of Motor Vehicles’ and the Texas Department of
Transportation’s information systems to allow for the sharing of
information so that each department may effectively and efficiently
perform the functions and duties assigned to it. Neither the Texas
Department of Motor Vehicles nor the Texas Department of
Transportation may impose or collect a fee or charge in connection
with the sharing of information under a joint memorandum of
understanding entered into or revised under this section.

(b) The Texas Department of Motor Vehicles and the Texas
Department of Transportation shall implement the joint memorandum
of understanding using existing personnel and resources.
(c) Otherwise confidential information shared under the
memorandum of understanding remains subject to the same
confidentiality requirements and legal restrictions on access to
the information that are imposed by law on the department that
originally obtained or collected the information.
(d) Information may be shared under the memorandum of
understanding without the consent of the person who is the subject
of the information.
(e) The memorandum of understanding required by Subsection
(a) of this section must be entered into or revised at the first
official meeting of the board members of the Texas Department of
Motor Vehicles.
SECTION 8.02. (a) In addition to the memorandum of
understanding required by Section 8.01 of this article, the board
of the Texas Department of Motor Vehicles and the Texas
Transportation Commission may enter into or revise one or more
other joint memoranda of understanding necessary to effectuate the
transfer of the powers and duties of the Texas Department of
Transportation to the Texas Department of Motor Vehicles under this
Act. A memorandum of understanding may include an agreement for the
provision of office space, utilities, and other facility services;
the need for full-time equivalent positions of the Texas Department
of Transportation to provide support services in addition to the
positions transferred to the Texas Department of Motor Vehicles
under Section 6.01 of this Act; support services; and the transfer
of information technology as necessary or appropriate to effectuate
the transfer of the powers and duties of the Texas Department of
Transportation to the Texas Department of Motor Vehicles.
(b) Subsections (b), (c), and (d) of Section 8.01 of this
article apply to a memorandum of understanding entered into or
revised under Subsection (a) of this section.
ARTICLE 9. DEPARTMENT OF MOTOR VEHICLES TRANSITION TEAM
SECTION 9.01. (a) The Texas Department of Transportation
shall establish a Department of Motor Vehicles Transition Team to
plan for and make recommendations regarding the transfer of
obligations, property, full-time equivalent positions, rights,
powers, and duties from the Texas Department of Transportation to
the Texas Department of Motor Vehicles. The transition team must
include the division directors from the Motor Vehicle Division, the
Vehicle Titles and Registration Division, and the Motor Carrier
Division and the Assistant Executive Director for Support
Operations.
(b) Not later than October 1, 2009, the transition team
shall report on and make recommendations to the board of the Texas
Department of Motor Vehicles, the governor, the lieutenant
governor, the speaker of the house of representatives, and the
presiding officers of the senate and house committees with
jurisdiction over transportation regarding the transfer of
obligations, property, full-time equivalent positions, rights,
powers, and duties from the Texas Department of Transportation to
the Texas Department of Motor Vehicles.
ARTICLE 10. FINANCIAL AUDIT
SECTION 10.01. (a) As soon as practicable after the
effective date of this Act, the office of the state auditor shall
conduct an initial financial audit to establish financial
benchmarks for the Texas Department of Motor Vehicles on its
overall status and condition in relation to funds on hand,
equipment and other assets, pending matters, and other issues
considered appropriate by the office of the state auditor.
(b) As soon as practicable after the completion of the audit
required by Subsection (a) of this section, the results of the audit
shall be reported by the office of the state auditor to the board of
the Texas Department of Motor Vehicles and to the Texas
Transportation Commission. The office of the state auditor shall
also provide a copy of the audit to the board and the commission.
ARTICLE 11. EFFECTIVE DATE
SECTION 11.01. This Act takes effect September 1, 2009.

______________________________ ______________________________
President of the Senate Speaker of the House

I certify that H.B. No. 3097 was passed by the House on May 6,
2009, by the following vote: Yeas 144, Nays 0, 2 present, not
voting; and that the House concurred in Senate amendments to H.B.
No. 3097 on May 23, 2009, by the following vote: Yeas 135, Nays 7,
3 present, not voting.

______________________________
Chief Clerk of the House

I certify that H.B. No. 3097 was passed by the Senate, with
amendments, on May 19, 2009, by the following vote: Yeas 30, Nays
0.

______________________________
Secretary of the Senate
APPROVED: __________________
Date

__________________
Governor

Property Tax Protection Program™ Benefits

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