PART 10. TEXAS DEPARTMENT OF MOTOR VEHICLES
CHAPTER 206. MANAGEMENT
SUBCHAPTER E. ADVISORY COMMITTEES
43 TAC §§206.92, 206.93, 206.98
INTRODUCTION. The Texas Department of Motor Vehicles (department) adopts amendments to 43 Texas Administrative Code (TAC) §206.92 and §206.93 and adopts new §206.98 concerning advisory committees. The department adopts §§206.92, 206.93, and 206.98 without changes to the proposed text as published in the September 1, 2023, issue of the Texas Register (48 TexReg 4799). The rules will not be republished.
REASONED JUSTIFICATION. The amendments and new section are necessary to implement the Sunset Advisory Commission's adopted recommendation 1.7 in the Staff Report with Final Results, revised June 2019. The Sunset Advisory Commission recommended that the department establish advisory committees to provide expertise for rulemaking and other issues, and to adopt rules regarding standard committee structure and operating criteria.
An amendment to §206.92 is necessary to expand the definition of "advisory committee" by adding Transportation Code, §643.155 as a statute under which an advisory committee may be created, to include the enabling statute for a separate advisory committee for rules involving motor carriers transporting household goods.
Amendments to §206.93 are necessary to allow the advisory committees to report to the department by providing recommendations either to the board or to the executive director. This would create more flexibility in how the committees report and would make the language consistent with the definition of "advisory committee" in §206.92(1) and with Transportation Code, §1001.031(a).
Another amendment to §206.93(a) corrects a grammatical error. Advisory committees are required to meet and carry out their functions upon a request from the department or the board for advice and recommendations on any issues. The request can be on a single issue or multiple issues.
An amendment to §206.93(d) removes the requirement that advisory committee members have an interest or expertise in the subject area of the advisory committee. This language is redundant with the statutory language that is already contained in Transportation Code, §1001.031 and is therefore unnecessary.
An amendment to §206.93(i) removes an unnecessary hyphen to correct a grammatical error.
The new §206.98 is necessary to implement Transportation Code, §643.155, which requires the department to appoint a rules advisory committee pertaining to motor carriers transporting household goods. Section 643.155 requires a department representative to serve on the advisory committee. In contrast, Transportation Code, §1001.031 does not require department representatives to serve on the advisory committee that considers other consumer protection and customer service issues. Therefore, dividing the advisory committees so that the committee on which department employees serve considers only rules involving motor carriers transporting household goods allows the most efficient use of department employees' time. It also avoids diluting the influence of perspectives from outside the department on other consumer protection and customer service issues, for which statute does not require the perspective of department representatives on the advisory committee. New §206.98 sets in rule the purpose, tasks, reporting requirements, and expiration of the HGRAC, as is required for advisory committees under Government Code, §2110.005. New §206.98 has an expiration date for the HGRAC of July 7, 2027, to match the expiration date of the other department advisory committees.
SUMMARY OF COMMENTS.
No comments on the proposed amendments or new section were received.
STATUTORY AUTHORITY. The department adopts amendments to §206.92 and §206.93 and adopts new §206.98 under Transportation Code, §643.155, which authorizes the department to adopt rules to create a rules advisory committee consisting of the public, the department, and representatives of motor carriers transporting household goods using small, medium, and large equipment; Transportation Code, §1002.001, which authorizes the board to adopt rules that are necessary and appropriate to implement the powers and duties of the department under the Transportation Code and other laws of this state; Government Code, §2110.005, which requires state agencies establishing advisory committees to make rules stating the purpose and tasks of the committee and describing the manner in which the committee will report to the agency; and Government Code, §2110.008, which allows state agencies establishing advisory committees make rules designating the date an advisory committee will be abolished.
CROSS REFERENCE TO STATUTE. Transportation Code, Chapters 643 and 1001; Government Code, Chapter 2110.
The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on October 13, 2023.
TRD-202303806
Laura Moriaty
General Counsel
Texas Department of Motor Vehicles
Effective date: November 2, 2023
Proposal publication date: September 1, 2023
For further information, please call: (512) 465-4160
SUBCHAPTER A. CRIMINAL OFFENSE AND ACTION ON LICENSE
INTRODUCTION. The Texas Department of Motor Vehicles (department) adopts amendments to 43 Texas Administrative Code (TAC) §211.6 concerning fingerprint requirements for license applicants and holders. The department adopts §211.6 without changes to the proposed text as published in the September 1, 2023, issue of the Texas Register (48 TexReg 4801). The rule will not be republished.
REASONED JUSTIFICATION. The amendments to §211.6 are necessary to prevent application fraud in two important ways--by verifying identify and by allowing the department to obtain a complete and comprehensive criminal background check from both the Texas Department of Public Safety (DPS) and the Federal Bureau of Investigation (FBI) prior to issuing a license. The current rule references only General Distinguishing Numbers issued under Transportation Code Chapter 503, so this rule amends §211.6 to make it possible for the department to require fingerprinting for all license types in the future, if the department chooses to subsequently propose amendments to Chapter 215 or 221 of this title to add fingerprint requirements for a specific license type.
The amended title of §211.6 reflects that the fingerprint requirements of this section will apply to all license types designated in Chapters 215 and 221 of this title as requiring fingerprinting for licensure. This may include licenses other than general distinguishing numbers if the department amends Chapters 215 or 221 of this title in the future. This amendment is necessary to describe more accurately the department's authority under Texas Government Code, §411.122 and §411.12511 to implement fingerprint requirements.
The amendments to subsections (a) and (b) delete references to a General Distinguishing Number under Transportation Code, Chapter 503. These amendments are necessary to reflect more accurately the department's authority to implement fingerprint requirements for additional license types through rulemaking.
The other amendments in subsection (a) specify that the rule will apply to license types designated in Chapter 215 or Chapter 221 of this title as requiring fingerprints for licensure. These amendments are necessary to reflect more accurately the department's authority to implement fingerprint requirements for additional license types through rulemaking and clarify for ease of reference which chapters may contain fingerprint requirements for specific license types.
The amendments to subsection (b) combine language currently in subsections (b) and (c) into amended (b), make clarifying changes to remove unnecessary language, and identify the persons that may be subject to a fingerprint requirement. These amendments are necessary to add clarity and for ease of understanding.
The amendments to subsection (c) replace the existing language consolidated into subsection (b) with new language clarifying that the department will review each license application, determine which persons need to be fingerprinted, and notify the applicant or license holder. This amendment is necessary to inform the public, including applicants and license holders, that the department must first review the application and department licensing records to determine which persons are required to be fingerprinted, before notifying the applicant regarding which individuals must submit fingerprints.
SUMMARY OF COMMENTS.
No comments on the proposed amendments were received.
STATUTORY AUTHORITY. The department adopts the amendments to §211.6 under Government Code, §411.122(d), which authorizes department access to criminal history record information maintained by DPS; Government Code, §411.12511, which authorizes the department to obtain criminal history record information from DPS and the FBI for license applicants, license holders, and representatives whose act or omission would be cause for denying, revoking, or suspending a general distinguishing number or license issued under Transportation Code, Chapter 503, or Occupations Code, Chapters 2301 or 2302; Occupations Code, §2301.151, which gives the board authority to regulate the distribution, sale and lease of motor vehicles and the authority to take any action that is necessary or convenient to exercise that authority; Occupations Code, §2301.152, which authorizes the board to establish the qualifications of license holders, ensure that the distribution, sale and lease of motor vehicles is conducted as required by statute and board rules, to prevent fraud, unfair practices, discrimination, impositions, and other abuses in connection with the distribution and sale of motor vehicles, and to enforce and administer Occupations Code, Chapter 2301 and Transportation Code, Chapter 503; Occupations Code, §2301.155, which authorizes the board to adopt rules as necessary or convenient to administer Occupations Code, Chapter 2301 and to govern practice and procedure before the board; Occupations Code, §2301.651, which gives the board authority to deny an application for a license, revoke or suspend a license, place on probation a person whose license has been suspended, or reprimand a licensee if the applicant or license holder is unfit, makes a material misrepresentation, violates any law relating to the sale, distribution, financing, or insuring of motor vehicles, willfully defrauds a purchaser, or fails to fulfill a written agreement with a retail purchaser of a motor vehicle; Occupations Code, §2302.051, which authorizes the board to adopt rules as necessary to administer Occupations Code, Chapter 2302; Transportation Code, §503.002, which authorizes the board to adopt rules for the administration of Transportation Code, Chapter 503; and Transportation Code, §1002.001, which authorizes the board to adopt rules that are necessary and appropriate to implement the powers and the duties of the department under the Transportation Code and other laws of this state.
CROSS REFERENCE TO STATUTE. Government Code, Chapter 411; Occupations Code, Chapters 2301 and 2302; and Transportation Code, Chapters 503 and 1002.
The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on October 13, 2023.
TRD-202303805
Laura Moriaty
General Counsel
Texas Department of Motor Vehicles
Effective date: November 2, 2023
Proposal publication date: September 1, 2023
For further information, please call: (512) 465-4160
SUBCHAPTER B. MOTOR VEHICLE REGISTRATION
INTRODUCTION. The Texas Department of Motor Vehicles (department) adopts amendments to 43 Texas Administrative Code (TAC) §217.52 concerning the marketing of specialty license plates through a private vendor. The department adopts amendments to §217.52 with a change to correct a point of grammar that was in the proposed text as published in the September 1, 2023, issue of the Texas Register (48 TexReg 4803). The amendments will be republished.
The amendments are necessary to implement Senate Bill (SB) 702 enacted during the 88th Texas Legislature, Regular Session (2023). SB 702 amended Transportation Code, §504.851, to require a contract entered into by the department and a private vendor for the marketing and sale of specialty license plates to allow the private vendor to establish a range of premium embossed specialty license plates to be sourced, marketed, and sold by the private vendor. The department amends the following subsections of §217.52: §217.52(h)(5), to establish fees required for embossed background-only license plates; §217.52(h)(7), to clarify that the fees for an auction pattern apply to an embossed license plate design and that the owner of an auction pattern may move the auction pattern to an embossed license plate design under subsection (n); §217.52(h)(8), to establish embossed personalized specialty license plates and the corresponding fees required; renumbered §217.52(h)(9), to expressly retain the grandfathered fees if the board approves a crossover plate under Transportation Code, §504.6011 as an embossed plate design; and §217.52(n), to define "restyled license plate," to include embossed specialty license plates, and to set fees for restyling a plate from non-embossed to embossed.
REASONED JUSTIFICATION.
The amendments to §217.52 are necessary to implement SB 702.
The amendments allow vehicle owners the option to purchase embossed specialty license plates if they choose to do so. No person would be required to purchase an embossed license plate and the standard default option would still be a printed plate.
The amendments also allow classic car collectors to fully restore cars with historically accurate embossed license plates.
Amendments to §217.52(h) clarify the rule by using the term "vendor specialty license plates" that is defined in §217.52(a) to provide consistent meaning throughout §217.52.
An amendment to §217.52(h)(5) implements SB 702 by adding an embossed option for background-only, non-personalized license plates. The amendment clarifies that background-only, non-personalized license plates are available as either embossed or non-embossed.
An amendment to §217.52(h)(5) creates fees for issuance of embossed, background-only license plates; however, the amendment would expressly retain the grandfathered fees under re-numbered subsection (h)(9)(C) if the board approves a crossover plate under Transportation Code, §504.6011 as an embossed plate design. These fees are sufficient to cover the department's direct, indirect, and administrative costs associated with the department's contract with its specialty license plates vendor and were determined through discussions with the vendor.
Amendments to §217.52(h)(5) add subparagraphs (A) and (B) to separate the fees for non-embossed, background-only specialty license plates from the fees for embossed, background-only specialty license plates.
In addition, amendments to §217.52(h)(5) add a hyphen between the words "background" and "only" because they are compound modifiers for the term "license plates."
Amendments to §217.52(h)(7) clarify that the fees for an auction pattern apply to an embossed license plate design and that the owner of an auction pattern may move the auction pattern to an embossed license plate design under subsection (n) regarding a restyled vendor specialty plate design.
New §217.52(h)(8) implements SB 702 by creating personalized, embossed specialty license plates. New §217.52(h)(8) allows the department's vendor to source, market, and sell a range of embossed, personalized specialty license plates with board-approved background and color combinations. New §217.52(h)(8) also sets fees for issuance of embossed, personalized specialty license plates. New §217.52(h)(8) clarifies that the fees under subsection (h)(7), regarding auction plate patterns, are grandfathered for embossed plate designs. New §217.52(h)(8) also clarifies that the personalization and specialty plate fees under renumbered subsection (h)(9) do not apply to an embossed, personalized specialty plate because the fees under §217.52(h)(8) already include the personalization fees; however, there is an exception under re-numbered subsection (h)(9)(C) if the board approves a crossover plate under Transportation Code, §504.6011 as an embossed plate design. These fees are sufficient to cover the department's direct, indirect, and administrative costs associated with the department's contract with its specialty license plates vendor and were determined through discussions with the vendor.
Amendments also renumber current §217.52(h)(8) to §217.52(h)(9). Amendments to renumbered §217.52(h)(9) expressly retain the grandfathered fees if the board approves a crossover plate under Transportation Code, §504.6011 as an embossed plate design.
Amendments to §217.52(n) implement SB 702 by adding embossed specialty license plate styles to the provision on restyled vendor specialty license plates to allow people who currently have non-embossed specialty license plates to restyle their plates into an embossed specialty license plate.
New §217.52(n)(2)(B) sets a fee of $75 for restyling a non-embossed specialty license plate into an embossed specialty license plate. This fee is sufficient to cover the department's direct, indirect, and administrative costs associated with the department's contract with its specialty license plates vendor and were determined through discussions with the vendor. The amendments also re-letter subparagraphs within §217.52(n) for clarity and ease of reference.
SUMMARY OF COMMENTS.
Comment: Sean Kennedy, Vice President of MyPlates, supported the Board's adoption of amendments to 43 TAC §217.52. Mr. Kennedy stated that MyPlates had conducted a poll and found that the public was interested in having embossed plates as an option for specialty plates. Mr. Kennedy noted that the amendment would make the rule consistent with SB 702. Mr. Kennedy stated that the rule amendments will allow citizens of Texas a license plate that was previously available to the public and would increase public interest in the specialty plate program generally.
Response: The department agrees with the comment.
STATUTORY AUTHORITY.
The department adopts amendments to §217.52 under Transportation Code, §504.0011, which grants the board authority to adopt rules to implement Transportation Code, Chapter 504; Transportation Code, §504.0051, which gives the department authority to issue personalized license plates and forbids the department from issuing replacement personalized license plates unless the vehicle owner pays the statutory fee required under Transportation Code, §504.007; Transportation Code, §504.007, which states that replacement license plates can only be issued if the vehicle owner pays the statutory fee; Transportation Code, §504.6011, which authorizes the sponsor of a specialty license plate to reestablish its specialty license plate under Subchapter J of Transportation Code, Chapter 504, and for the board to establish the fees under Transportation Code, §504.851; Transportation Code, §504.851(a), which allows the department to contract with a private vendor to provide specialty and personalized license plates; Transportation Code, §504.851(b) - (d), which authorize the board to establish fees by rule for the issuance or renewal of personalized license plates that are marketed and sold by the vendor as long as the fees are reasonable and not less than the amounts necessary to allow the department to recover all reasonable costs associated with the procurement, implementation, and enforcement of the vendor’s contract; Transportation Code, §504.851(i), as amended by SB 702, 88th Legislature, Regular Session (2023), which requires a contract entered into by the department and a private vendor for the marketing and sale of specialty license plates to allow the vendor to establish a range of premium embossed specialty license plates to be sourced, marketed, and sold by the private vendor; and Transportation Code, §1002.001 which authorizes the board to adopt rules that are necessary and appropriate to implement the powers and the duties of the department under the Transportation Code and other laws of this state.
CROSS REFERENCE TO STATUTE. Transportation Code, Chapters 504 and 1002.
The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on October 13, 2023.
TRD-202303804
Laura Moriaty
General Counsel
Texas Department of Motor Vehicles
Effective date: November 2, 2023
Proposal publication date: September 1, 2023
For further information, please call: (512) 465-4160
INTRODUCTION. The Texas Department of Motor Vehicles (department) adopts amendments to 43 Texas Administrative Code (TAC) §217.54 concerning registration of fleet vehicles. The department adopts §217.54 with changes to the proposed text to correct punctuation as published in the September 1, 2023, issue of the Texas Register (48 TexReg 4807). The rule will be republished. The amendments are necessary to implement House Bill (HB) 433 enacted during the 88th Legislature, Regular Session (2023). HB 433 amended the definition of "commercial fleet" in Transportation Code, §502.001(6) by reducing from 25 to 12 the minimum number of non-apportioned motor vehicles, semitrailers, or trailers owned, operated, or leased by a business entity necessary to constitute a commercial fleet.
REASONED JUSTIFICATION. The amendments to §217.54 are necessary to implement HB 433 by changing the eligibility requirements for fleet registration and fleet composition. Amendments to §217.54(b)(1) replace the number "25" with "12" for fleet eligibility requirements. Amendments to §217.54(f)(3) replace the number "25" with "12" for fleet composition as it relates to the status of an account holder's registration when the account falls below the minimum number of vehicles for a commercial fleet.
SUMMARY OF COMMENTS.
No comments on the proposed amendments were received.
STATUTORY AUTHORITY. The department adopts amendments to §217.54 under Transportation Code, §502.001(6), as amended by HB 433, which defines "commercial fleet" for purposes of Transportation Code, Chapter 502; Transportation Code, §502.0021, which authorizes the department to adopt rules to administer Transportation Code, Chapter 502; Transportation Code, §502.0023, which sets out the requirements for extended vehicle registration of commercial fleets and requires the department to adopt rules to implement those requirements; and Transportation Code, §1002.001, which authorizes the board to adopt rules that are necessary and appropriate to implement the powers and the duties of the department as provided in the Texas Transportation Code and other laws of this state.
CROSS REFERENCE TO STATUTE. Transportation Code, Chapters 502 and 1002.
§217.54.Registration of Fleet Vehicles.
(a) Scope. A registrant may consolidate the registration of multiple motor vehicles in a fleet instead of registering each vehicle separately. A fleet may include trailers and semitrailers. Except as provided by §217.55 of this title (relating to Exempt and Alias Vehicle Registration), to consolidate registration, a registration must meet the requirements of this section.
(b) Eligibility. A fleet must meet the following requirements to be eligible for fleet registration.
(1) No fewer than 12 vehicles will be registered as a fleet;
(2) Vehicles may be registered in annual increments for up to eight years;
(3) All vehicles in a fleet must be owned by or leased to the same business entity;
(4) All vehicles must be vehicles that are not registered under the International Registration Plan; and
(5) Each vehicle must currently be titled in Texas or be issued a registration receipt, or the registrant must submit an application for a title or registration for each vehicle.
(c) Application.
(1) Application for fleet registration must be in a form prescribed by the department. At a minimum the form will require:
(A) the full name and complete address of the registrant;
(B) a description of each vehicle in the fleet, which may include the vehicle's model year, make, model, vehicle identification number, document number, body style, gross weight, empty weight, and for a commercial vehicle, manufacturer's rated carrying capacity in tons;
(C) the existing license plate number, if any, assigned to each vehicle; and
(D) any other information that the department may require.
(2) The application must be accompanied by the following items:
(A) in the case of a leased vehicle, a certification that the vehicle is currently leased to the person to whom the fleet registration will be issued;
(B) registration fees prescribed by law for the entire registration period selected by the registrant;
(C) local fees or other fees prescribed by law and collected in conjunction with registering a vehicle for the entire registration period selected by the registrant;
(D) evidence of financial responsibility for each vehicle as required by Transportation Code, §502.046, unless otherwise exempted by law;
(E) annual proof of payment of Heavy Vehicle Use Tax;
(F) the state's portion of the vehicle inspection fee; and
(G) any other documents or fees required by law.
(d) Registration period.
(1) The fleet owner will designate a single registration period for a fleet so the registration period for each vehicle will expire on the same date.
(2) The fleet registration period will begin on the first day of a calendar month and end on the last day of a calendar month.
(e) Registration receipt and fleet license plates.
(1) As evidence of registration, the department will issue a registration receipt and one or two metal fleet license plates for each vehicle in a fleet.
(2) The registration receipt for each vehicle shall at all times be carried in that vehicle and be available to law enforcement personnel upon request.
(3) A registration receipt or fleet license plate may not be transferred between vehicles, owners, or registrants.
(f) Fleet composition.
(1) A registrant may add a vehicle to a fleet at any time during the registration period. An added vehicle will be given the same registration period as the fleet and will be issued one or two metal fleet license plates and a registration receipt.
(2) A registrant may remove a vehicle from a fleet at any time during the registration period. After a vehicle is removed from the fleet, the fleet registrant shall either return the metal fleet license plates for that vehicle to the department or provide the department with acceptable proof that the metal fleet license plates for that vehicle have been destroyed. Credit for any vehicle removed from the fleet for the remaining full year increments can be applied to any vehicle added to the fleet or at the time of renewal. No refunds will be given if credit is not used or the account is closed.
(3) If the number of vehicles in an account falls below 12 during the registration period, fleet registration will remain in effect. If the number of vehicles in an account is below 12 at the end of the registration period, fleet registration will be canceled. In the event of cancellation, each vehicle shall be registered separately. The registrant shall immediately either return all metal fleet license plates to the department or provide the department with acceptable proof that the metal fleet license plates have been destroyed.
(g) Fees.
(1) When a fleet is first established, the department will charge a registration fee for each vehicle for the entire registration period selected. A currently registered vehicle, however, will be given credit for any remaining time on its separate registration.
(2) When a vehicle is added to an existing fleet, the department will charge a registration fee that is prorated based on the number of months of fleet registration remaining. If the vehicle is currently registered, this fee will be adjusted to provide credit for the number of months of separate registration remaining.
(3) When a vehicle is removed from fleet registration, it will be considered to be registered separately. The vehicle's separate registration will expire on the date that the fleet registration would have expired. The registrant must pay the statutory replacement fee to obtain regular registration insignia before the vehicle may be operated on a public highway.
(4) In addition to the registration fees prescribed by Transportation Code, Chapter 502, an owner registering a fleet under this section must pay a one-time fee of $10 per motor vehicle, semitrailer, or trailer in the fleet. This fee is also due as follows:
(A) for each vehicle added to the owner's existing fleet; and
(B) for each vehicle that a buyer registers as a fleet, even though the seller previously registered some or all of the vehicles as a fleet under this section.
(h) Payment. Payment will be made in the manner prescribed by the department.
(i) Cancellation.
(1) The department will cancel registration for non-payment and lack of proof of annual payment of the Heavy Vehicle Use Tax.
(2) The department may cancel registration on any fleet vehicle on the anniversary date of the registration if the fleet vehicle is not in compliance with the inspection requirements under Transportation Code, Chapter 548 or the inspection requirements in the rules of the Texas Department of Public Safety.
(3) A vehicle with a canceled registration may not be operated on a public highway.
(4) If the department cancels the registration of a vehicle under this subsection, the registrant can request the department to reinstate the registration by doing the following:
(A) complying with the requirements for which the department canceled the registration;
(B) providing the department with notice of compliance on a form prescribed by the department; and
(C) for a registration canceled under paragraph (2) of this subsection, paying an administrative fee in the amount of $10.
(5) A registrant is eligible for reinstatement of the registration only within 90 calendar days of the department's notice of cancellation.
(6) If a registrant fails to timely reinstate the registration of a canceled vehicle registration under this section, the registrant:
(A) is not entitled to a credit or refund of any registration fees for the vehicle; and
(B) must immediately either return the metal fleet license plates to the department or provide the department with acceptable proof that the metal fleet license plates have been destroyed.
(j) Inspection fee. The registrant must pay the department by the deadline listed in the department's invoice for the state's portion of the vehicle inspection fee.
The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on October 13, 2023.
TRD-202303803
Laura Moriaty
General Counsel
Texas Department of Motor Vehicles
Effective date: November 2, 2023
Proposal publication date: September 1, 2023
For further information, please call: (512) 465-4160