Bill Text: TX HB718 | 2023-2024 | 88th Legislature | Comm Sub
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to the issuance of certain tags, permits, and license plates authorizing the movement of vehicles and the transfer and renewal of certain license plates.
Spectrum: Bipartisan Bill
Status: (Passed) 2023-06-12 - Effective on . . . . . . . . . . . . . . . July 1, 2025 [HB718 Detail]
Download: Texas-2023-HB718-Comm_Sub.html
Bill Title: Relating to the issuance of certain tags, permits, and license plates authorizing the movement of vehicles and the transfer and renewal of certain license plates.
Spectrum: Bipartisan Bill
Status: (Passed) 2023-06-12 - Effective on . . . . . . . . . . . . . . . July 1, 2025 [HB718 Detail]
Download: Texas-2023-HB718-Comm_Sub.html
88R15438 BEE-D | |||
By: Goldman, Turner, Sherman, Sr., Leach, | H.B. No. 718 | ||
González of Dallas | |||
Substitute the following for H.B. No. 718: | |||
By: Patterson | C.S.H.B. No. 718 |
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relating to the issuance of certain tags, permits, and license | ||
plates authorizing the movement of vehicles. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 501.022(d), Transportation Code, is | ||
amended to read as follows: | ||
(d) Subsection (c) does not apply to a motor vehicle | ||
operated on a public highway in this state with a metal dealer's | ||
license plate [ |
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the vehicle as provided by Chapter 503. | ||
SECTION 2. Sections 501.0236(b) and (d), Transportation | ||
Code, are amended to read as follows: | ||
(b) A purchaser to whom this section applies may apply for[ |
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[ |
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department by rule[ |
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[ |
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(d) The department shall waive the payment of fees for[ |
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[ |
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section[ |
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to the dealer[ |
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[ |
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SECTION 3. The heading to Section 502.043, Transportation | ||
Code, is amended to read as follows: | ||
Sec. 502.043. APPLICATION FOR REGISTRATION [ |
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SECTION 4. Sections 502.043(a) and (b), Transportation | ||
Code, are amended to read as follows: | ||
(a) An application for vehicle registration [ |
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(1) be made in a manner prescribed and include the | ||
information required by the department by rule; and | ||
(2) contain a full description of the vehicle as | ||
required by department rule. | ||
(b) The department shall deny the registration of [ |
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vehicle, truck-tractor, trailer, or semitrailer if the applicant: | ||
(1) has a business operated, managed, or otherwise | ||
controlled or affiliated with a person who is ineligible for | ||
registration or whose privilege to operate has been suspended, | ||
including the applicant entity, a relative, family member, | ||
corporate officer, or shareholder; | ||
(2) has a vehicle that has been prohibited from | ||
operating by the Federal Motor Carrier Safety Administration for | ||
safety-related reasons; | ||
(3) is a carrier whose business is operated, managed, | ||
or otherwise controlled or affiliated with a person who is | ||
ineligible for registration, including the owner, a relative, a | ||
family member, a corporate officer, or a shareholder; or | ||
(4) fails to deliver to the county assessor-collector | ||
proof of the weight of the vehicle, the maximum load to be carried | ||
on the vehicle, and the gross weight for which the vehicle is to be | ||
registered. | ||
SECTION 5. Section 502.059(e), Transportation Code, is | ||
amended to read as follows: | ||
(e) Subsection (c) does not apply to: | ||
(1) the issuance of specialized license plates as | ||
designated by the department, including state official license | ||
plates and[ |
||
(2) the issuance or validation of replacement license | ||
plates, except as provided by Chapter 504. | ||
SECTION 6. Section 502.255(g), Transportation Code, is | ||
amended to read as follows: | ||
(g) This section does not apply to: | ||
(1) a combination of vehicles that includes a vehicle | ||
that has a distinguishing license plate under Section 502.146; | ||
(2) a truck-tractor or commercial motor vehicle | ||
registered or to be registered with $5 distinguishing license | ||
plates for which the vehicle is eligible under this chapter; | ||
(3) a truck-tractor or commercial motor vehicle used | ||
exclusively in combination with a semitrailer of the travel trailer | ||
type; or | ||
(4) a vehicle registered or to be registered[ |
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[ |
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[ |
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[ |
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SECTION 7. Section 502.410(b), Transportation Code, is | ||
amended to read as follows: | ||
(b) Subsection (a) does not apply to a statement or | ||
application filed or given under Section 502.060, [ |
||
504.515. | ||
SECTION 8. Sections 503.038(a) and (c), Transportation | ||
Code, are amended to read as follows: | ||
(a) The department may cancel a dealer's general | ||
distinguishing number if the dealer: | ||
(1) falsifies or forges a title document, including an | ||
affidavit making application for a certified copy of a title; | ||
(2) files a false or forged tax document, including a | ||
sales tax affidavit; | ||
(3) fails to take assignment of any basic evidence of | ||
ownership, including a certificate of title or manufacturer's | ||
certificate, for a vehicle the dealer acquires; | ||
(4) fails to assign any basic evidence of ownership, | ||
including a certificate of title or manufacturer's certificate, for | ||
a vehicle the dealer sells; | ||
(5) uses or permits the use of a metal dealer's license | ||
plate [ |
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does not own or control or that is not in stock and offered for sale; | ||
(6) makes a material misrepresentation in an | ||
application or other information filed with the department; | ||
(7) fails to maintain the qualifications for a general | ||
distinguishing number; | ||
(8) fails to provide to the department within 30 days | ||
after the date of demand by the department satisfactory and | ||
reasonable evidence that the person is regularly and actively | ||
engaged in business as a wholesale or retail dealer; | ||
(9) has been licensed for at least 12 months and has | ||
not assigned at least five vehicles during the previous 12-month | ||
period; | ||
(10) has failed to demonstrate compliance with | ||
Sections 23.12, 23.121, and 23.122, Tax Code; | ||
(11) uses or allows the use of the dealer's general | ||
distinguishing number or the location for which the general | ||
distinguishing number is issued to avoid the requirements of this | ||
chapter; or | ||
(12) [ |
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[ |
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[ |
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adopted under this chapter. | ||
(c) A person whose general distinguishing number is | ||
canceled under this chapter shall surrender to a representative of | ||
the department each license, license plate, [ |
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sticker, and receipt issued under this chapter not later than the | ||
10th day after the date the general distinguishing number is | ||
canceled. The department shall direct any peace officer to secure | ||
and return to the department any plate, [ |
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of a person who does not comply with this subsection. | ||
SECTION 9. Section 503.063, Transportation Code, is amended | ||
to read as follows: | ||
Sec. 503.063. DEALER-ISSUED LICENSE PLATES FOR BUYER | ||
[ |
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a dealer shall issue to a person who buys a vehicle: | ||
(1) a license plate or set of license plates, if a | ||
license plate is required by law to be displayed on [ |
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(2) a completed and signed form required by, as | ||
applicable, Section 503.0631(c) or (d). | ||
(b) A license plate or set of license plates issued under | ||
this section [ |
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is valid for the operation of the vehicle while the registration | ||
application submitted by the dealer on behalf of the buyer under | ||
Section 501.0234 is pending [ |
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[ |
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[ |
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(c) At the time of issuance of a license plate or set of | ||
license plates under this section, the [ |
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[ |
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[ |
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or set of license plates in compliance with department rules | ||
regarding the placement of license plates [ |
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(d) The dealer is responsible for the safekeeping and | ||
distribution of each license plate or set of license plates | ||
[ |
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(e) A dealer shall obtain license plates and sets of license | ||
plates from the [ |
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department rules [ |
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[ |
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[ |
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[ |
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[ |
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[ |
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(f) The department shall ensure that a dealer may obtain | ||
[ |
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of license plates [ |
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unreasonable disruption of business due to the unavailability of | ||
license plates [ |
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shall establish an expedited procedure to allow a dealer [ |
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license plates [ |
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remain in business [ |
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(g) For each license plate or set of license plates issued | ||
to a buyer under this section, the [ |
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shall charge the buyer a registration fee [ |
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prescribed by the department to be sent to the comptroller for | ||
deposit to the credit of the Texas Department of Motor Vehicles | ||
fund. | ||
(h) A federal, state, or local governmental agency that is | ||
exempt under Section 503.024 from the requirement to obtain a | ||
dealer general distinguishing number may issue one license plate or | ||
set of license plates [ |
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this section for a vehicle sold or otherwise disposed of by the | ||
governmental agency under Chapter 2175, Government Code, or other | ||
law that authorizes the governmental agency to sell or otherwise | ||
dispose of the vehicle. A governmental agency that issues a license | ||
plate or set of license plates [ |
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subsection: | ||
(1) is subject to the provisions of Section [ |
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503.0631 [ |
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(2) is not required to charge the registration fee | ||
under Subsection (g). | ||
(i) A vehicle may be issued and display a license plate or | ||
set of license plates under this section [ |
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satisfying the inspection requirements of Chapter 548 if: | ||
(1) the buyer of the vehicle is not a resident of this | ||
state; and | ||
(2) the vehicle: | ||
(A) at the time of purchase, is not located or | ||
required to be titled or registered in this state; | ||
(B) will be titled and registered in accordance | ||
with the laws of the buyer's state of residence; and | ||
(C) will be inspected in accordance with the laws | ||
of the buyer's state of residence, if the laws of that state require | ||
inspection. | ||
(j) A vehicle may be issued and display a license plate or | ||
set of license plates under this section [ |
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satisfying the inspection requirements of Chapter 548 if the | ||
vehicle is purchased at public auction in this state and is: | ||
(1) an antique vehicle as defined by Section | ||
683.077(b); or | ||
(2) a special interest vehicle as defined by Section | ||
683.077(b) that: | ||
(A) is at least 12 years of age; and | ||
(B) has been the subject of a retail sale. | ||
(k) A dealer may not issue a license plate or set of license | ||
plates for a vehicle that is exempt from the payment of registration | ||
fees under Subchapter J, Chapter 502, until the department approves | ||
the application for registration of the vehicle. | ||
SECTION 10. The heading to Section 503.0631, Transportation | ||
Code, is amended to read as follows: | ||
Sec. 503.0631. [ |
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DEALER-ISSUED LICENSE PLATES. | ||
SECTION 11. Section 503.0631, Transportation Code, is | ||
amended by amending Subsections (a), (b), (c), and (d) and adding | ||
Subsections (c-1), (d-1), and (d-2) to read as follows: | ||
(a) The department shall develop, manage, and maintain a | ||
secure, real-time database of information on buyers [ |
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whom dealers issue a license plate or set of license plates under | ||
Section 503.063 [ |
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used by a law enforcement agency in the same manner that the agency | ||
uses vehicle registration information. | ||
(b) The database must allow law enforcement agencies to use | ||
the information required to be included on a license plate [ |
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person to whom the license plate [ |
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(c) Except as provided by Subsection (d), before a license | ||
plate or set of license plates issued under Section 503.063 | ||
[ |
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must, as prescribed by the department: | ||
(1) enter into the database through the Internet | ||
information about the buyer of the vehicle for which the license | ||
plate or set of license plates [ |
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(2) complete and sign a form prescribed by the | ||
department stating that the dealer entered the buyer's information | ||
into the database as required by Subdivision (1) [ |
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(c-1) Except as provided by Section 503.0633(f) | ||
[ |
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to any dealer who holds a general distinguishing number issued | ||
under this chapter or who is licensed under Chapter 2301, | ||
Occupations Code. | ||
(d) A dealer shall obtain 24-hour Internet access at its | ||
place of business, but if the dealer is unable to access the | ||
Internet at the time of the sale of a vehicle, the dealer shall | ||
complete and sign a form, as prescribed by the department, that | ||
states the dealer has Internet access, but was unable to access the | ||
Internet at the time of sale to enter the buyer's information into | ||
the database as required by Subsection (c). [ |
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after the time of sale, the dealer shall submit the information | ||
required under Subsection (c). | ||
(d-1) The forms prescribed by the department under | ||
Subsections (c) and (d) must contain a notice to the buyer | ||
describing the procedure by which the vehicle's registration | ||
insignia will be provided to the buyer. | ||
(d-2) Until a vehicle displaying a license plate or set of | ||
license plates issued under Section 503.063 is registered to the | ||
buyer, the buyer shall keep in the vehicle the original copy of the | ||
form provided by the dealer as required by, as applicable, | ||
Subsection (c) or (d). | ||
SECTION 12. Subchapter C, Chapter 503, Transportation Code, | ||
is amended by adding Section 503.0633 to read as follows: | ||
Sec. 503.0633. DEPARTMENT REGULATION OF DEALER-ISSUED | ||
LICENSE PLATES AND ACCESS TO DATABASE OF DEALER-ISSUED LICENSE | ||
PLATES. (a) The department by rule may establish the maximum | ||
number of license plates or sets of license plates that a dealer may | ||
obtain in a calendar year under Section 503.063. | ||
(b) The maximum number of license plates or sets of license | ||
plates that the department determines a dealer may obtain under | ||
this section must be based on the dealer's anticipated need for | ||
license plates and sets of license plates, taking into | ||
consideration: | ||
(1) the dealer's: | ||
(A) time in operation; | ||
(B) sales data; and | ||
(C) expected growth; | ||
(2) expected changes in the dealer's market; | ||
(3) temporary conditions that may affect sales by the | ||
dealer; and | ||
(4) any other information the department considers | ||
relevant. | ||
(c) At the request of a dealer, the department may authorize | ||
additional license plates or sets of license plates for the dealer | ||
if the dealer demonstrates a need for additional license plates or | ||
sets of license plates resulting from business operations, | ||
including anticipated need. | ||
(d) The department's denial of a request under Subsection | ||
(c) may be overturned if a dealer shows by a preponderance of the | ||
evidence the need for additional license plates or sets of license | ||
plates. | ||
(e) The department shall monitor the number of license | ||
plates and sets of license plates obtained by a dealer. | ||
(f) If the department determines that a dealer is | ||
fraudulently obtaining license plates or sets of license plates or | ||
fraudulently using the database of dealer-issued license plates, | ||
the department may, after giving notice electronically and by | ||
certified mail to the dealer, deny access to the database of | ||
dealer-issued license plates to the dealer. A dealer denied access | ||
to the database of dealer-issued license plates under this | ||
subsection may request a hearing on the denial as provided by | ||
Subchapter O, Chapter 2301, Occupations Code. | ||
SECTION 13. Subchapter C, Chapter 503, Transportation Code, | ||
is amended by adding Section 503.0671 to read as follows: | ||
Sec. 503.0671. UNAUTHORIZED USE OR DISTRIBUTION OF | ||
DEALER-ISSUED LICENSE PLATE. (a) A person may not operate a | ||
vehicle that displays a dealer-issued license plate or set of | ||
license plates in violation of this chapter or Chapter 502. | ||
(b) A person may not sell or distribute a dealer-issued | ||
license plate or set of license plates or an item represented to be | ||
a dealer-issued license plate or set of license plates unless the | ||
person is a dealer issuing the license plate or set of license | ||
plates in connection with the sale of a vehicle. | ||
SECTION 14. The heading to Section 503.068, Transportation | ||
Code, is amended to read as follows: | ||
Sec. 503.068. LIMITATION ON USE OF DEALER'S LICENSE PLATES | ||
[ |
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SECTION 15. Sections 503.068(b), (c), and (d), | ||
Transportation Code, are amended to read as follows: | ||
(b) A person may not use a metal dealer's license plate [ |
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(1) a service or work vehicle, except as provided by | ||
Subsection (b-1); or | ||
(2) a commercial vehicle that is carrying a load. | ||
(c) For purposes of this section, a boat trailer carrying a | ||
boat is not a commercial vehicle carrying a load. A dealer | ||
complying with this chapter may affix to the rear of a boat trailer | ||
the dealer owns or sells a metal dealer's license plate issued under | ||
Section 503.061 or dealer-issued license plate [ |
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issued under Section [ |
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(d) This section does not prohibit the operation or | ||
conveyance of an unregistered vehicle using the full-mount method, | ||
saddle-mount method, tow-bar method, or a combination of those | ||
methods in accordance with Section [ |
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SECTION 16. The heading to Section 503.069, Transportation | ||
Code, is amended to read as follows: | ||
Sec. 503.069. DISPLAY OF LICENSE PLATES [ |
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SECTION 17. Section 503.069(a), Transportation Code, is | ||
amended to read as follows: | ||
(a) A license plate, other than an in-transit license plate, | ||
[ |
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accordance with commission rules. | ||
SECTION 18. Section 504.007(f), Transportation Code, is | ||
amended to read as follows: | ||
(f) Subsection (e) does not apply to the issuance of | ||
specialized license plates for limited distribution, including | ||
exempt plates for governmental entities [ |
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SECTION 19. Section 520.051(3), Transportation Code, is | ||
amended to read as follows: | ||
(3) "Title documents" means motor vehicle title | ||
applications, motor vehicle registration renewal applications, | ||
motor vehicle mechanic's lien title applications, motor vehicle | ||
storage lien title applications, [ |
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occasioned by the death of the title holder, or notifications under | ||
Chapter 683 of this code or Chapter 70, Property Code. | ||
SECTION 20. Section 548.052, Transportation Code, is | ||
amended to read as follows: | ||
Sec. 548.052. VEHICLES NOT SUBJECT TO INSPECTION. This | ||
chapter does not apply to: | ||
(1) a trailer, semitrailer, pole trailer, or mobile | ||
home moving under or bearing a current factory-delivery license | ||
plate or current in-transit license plate; | ||
(2) a vehicle moving under or bearing a [ |
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license, prorate tab, [ |
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license, [ |
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(3) a trailer, semitrailer, pole trailer, or mobile | ||
home having an actual gross weight or registered gross weight of | ||
7,500 pounds or less; | ||
(4) farm machinery, road-building equipment, a farm | ||
trailer, or a vehicle required to display a slow-moving-vehicle | ||
emblem under Section 547.703; | ||
(5) a former military vehicle, as defined by Section | ||
504.502; | ||
(6) a vehicle qualified for a tax exemption under | ||
Section 152.092, Tax Code; or | ||
(7) a vehicle for which a certificate of title has been | ||
issued but that is not required to be registered, including an | ||
off-highway vehicle registered under Section 502.140(c). | ||
SECTION 21. Section 601.002(12), Transportation Code, is | ||
amended to read as follows: | ||
(12) "Vehicle registration" means: | ||
(A) a registration certificate, registration | ||
receipt, or number plate issued under Chapter 502; or | ||
(B) a dealer's license plate [ |
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issued under Chapter 503. | ||
SECTION 22. Section 648.101(a), Transportation Code, is | ||
amended to read as follows: | ||
(a) A foreign commercial motor vehicle is exempt from | ||
Chapter 502 and any other law of this state requiring the vehicle to | ||
be registered in this state[ |
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(1) the vehicle is engaged solely in transportation of | ||
cargo across the border into or from a border commercial zone; | ||
(2) for each load of cargo transported the vehicle | ||
remains in this state: | ||
(A) not more than 24 hours; or | ||
(B) not more than 48 hours, if: | ||
(i) the vehicle is unable to leave this | ||
state within 24 hours because of circumstances beyond the control | ||
of the motor carrier operating the vehicle; and | ||
(ii) all financial responsibility | ||
requirements applying to the vehicle are satisfied; | ||
(3) the vehicle is registered and licensed as required | ||
by the country in which the person that owns the vehicle is | ||
domiciled or is a citizen as evidenced by a valid metal license | ||
plate attached to the front or rear of the exterior of the vehicle; | ||
and | ||
(4) the country in which the person that owns the | ||
vehicle is domiciled or is a citizen provides a reciprocal | ||
exemption for commercial motor vehicles owned by residents of this | ||
state. | ||
SECTION 23. Section 418.016(f), Government Code, is amended | ||
to read as follows: | ||
(f) The governor may suspend any of the following | ||
requirements in response to an emergency or disaster declaration of | ||
another jurisdiction if strict compliance with the requirement | ||
would prevent, hinder, or delay necessary action in assisting | ||
another state with coping with an emergency or disaster: | ||
(1) a registration requirement in an agreement entered | ||
into under the International Registration Plan under Section | ||
502.091, Transportation Code, to the extent authorized by federal | ||
law; | ||
(2) [ |
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[ |
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Transportation Code, to the extent authorized by federal law; | ||
(3) [ |
||
under Chapter 643, Transportation Code; | ||
(4) [ |
||
645, Transportation Code, to the extent authorized by federal law; | ||
or | ||
(5) [ |
||
International Fuel Tax Agreement described by 49 U.S.C. Section | ||
31701 et seq., to the extent authorized by federal law. | ||
SECTION 24. The following provisions of the Transportation | ||
Code are repealed: | ||
(1) Section 502.092; | ||
(2) Section 502.093; | ||
(3) Section 502.094; | ||
(4) Section 502.095; | ||
(5) Section 502.474; | ||
(6) Section 502.476; | ||
(7) Section 502.477; | ||
(8) Section 502.492; | ||
(9) Section 503.062; | ||
(10) Section 503.0625; | ||
(11) Section 503.0626; | ||
(12) Section 503.0632; | ||
(13) Section 503.065; | ||
(14) Section 503.067; | ||
(15) Section 503.068(a); and | ||
(16) Section 503.094(d). | ||
SECTION 25. The changes in law made by this Act apply only | ||
to an offense committed on or after March 1, 2025. An offense | ||
committed before March 1, 2025, is governed by the law in effect on | ||
the date the offense was committed, and the former law is continued | ||
in effect for that purpose. For purposes of this section, an | ||
offense was committed before March 1, 2025, if any element of the | ||
offense was committed before that date. | ||
SECTION 26. Not later than March 1, 2024, the Texas | ||
Department of Motor Vehicles shall: | ||
(1) adopt rules necessary to implement the changes in | ||
law made by this Act; and | ||
(2) create the database described by Section 503.0631, | ||
Transportation Code, as amended by this Act. | ||
SECTION 27. To the extent of any conflict, this Act prevails | ||
over another Act of the 88th Legislature, Regular Session, 2023, | ||
relating to nonsubstantive additions to and corrections in enacted | ||
codes. | ||
SECTION 28. (a) Except as otherwise provided by Subsection | ||
(b) of this section, this Act takes effect March 1, 2025. | ||
(b) Section 26 of this Act takes effect September 1, 2023. |