H.B. No. 2651
 
 
 
 
AN ACT
  relating to the issuance and renewal of certain motor vehicle
  dealer licenses, motor vehicle license plates, and general
  distinguishing numbers.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 2301.257(b), Occupations Code, is
  amended to read as follows:
         (b)  If a material change occurs in the information included
  in an application for a dealer's license, the dealer shall notify
  the director [board] of the change within a reasonable time [but not
  later than the next annual renewal]. The director [board] shall
  prescribe a form for the disclosure of the change.
         SECTION 2.  Section 2301.264, Occupations Code, is amended
  by amending Subsection (a) and adding Subsections (e) and (f) to
  read as follows:
         (a)  The annual fees for a license issued under this chapter
  are:
               (1)  $900 for a manufacturer or distributor, plus $20
  for each dealer franchised by the manufacturer or distributor;
               (2)  for a franchised dealer:
                     (A)  $175, if the dealer sold fewer than 201 new
  motor vehicles during the preceding calendar year;
                     (B)  $275, if the dealer sold more than 200 but
  fewer than 401 new motor vehicles during the preceding calendar
  year;
                     (C)  $400, if the dealer sold more than 400 but
  fewer than 801 new motor vehicles during the preceding calendar
  year;
                     (D)  $500, if the dealer sold more than 800 but
  fewer than 1,201 new motor vehicles during the preceding calendar
  year;
                     (E)  $625, if the dealer sold more than 1,200 but
  fewer than 1,601 new motor vehicles during the preceding calendar
  year;
                     (F)  $750, if the dealer sold more than 1,600 new
  motor vehicles during the preceding calendar year; and
                     (G)  $100 for each location separate from the
  dealership at which the dealer does not offer motor vehicles for
  sale but performs warranty service work on vehicles the dealer is
  franchised and licensed to sell;
               (3)  [$25 for an amendment to a license;
               [(4)]  $100 for a representative;
               (4) [(5)]  $375 for a converter;
               (5) [(6)]  for a vehicle lessor:
                     (A)  $175, if the lessor leased 200 or fewer motor
  vehicles during the preceding calendar year;
                     (B)  $275, if the lessor leased more than 200 but
  fewer than 401 motor vehicles during the preceding calendar year;
                     (C)  $400, if the lessor leased more than 400 but
  fewer than 801 motor vehicles during the preceding calendar year;
                     (D)  $500, if the lessor leased more than 800 but
  fewer than 1,201 motor vehicles during the preceding calendar year;
                     (E)  $625, if the lessor leased more than 1,200
  but fewer than 1,601 motor vehicles during the preceding calendar
  year; and
                     (F)  $750, if the lessor leased more than 1,600
  motor vehicles during the preceding calendar year; and
               (6) [(7)]  $375 for a vehicle lease facilitator[; and
               [(8)  $50 for a duplicate license].
         (e)  The fee for an amendment to a license under this chapter
  is $25.
         (f)  The fee for a duplicate license under this chapter is
  $50.
         SECTION 3.  The heading to Section 2301.301, Occupations
  Code, is amended to read as follows:
         Sec. 2301.301.  LICENSE TERM AND [ANNUAL] RENEWAL
  [REQUIRED].
         SECTION 4.  Section 2301.301, Occupations Code, is amended
  by amending Subsections (a), (b), and (c) and adding Subsection (e)
  to read as follows:
         (a)  Licenses [A license] issued under this chapter are valid
  for the period prescribed by the commission [expires on the first
  anniversary of the date the license is issued].
         (b)  The director [board] may issue a license for a term of
  less than the period prescribed under Subsection (a) [one year] to
  coordinate the expiration dates of licenses held by a person that is
  required to obtain more than one license to perform activities
  under this chapter.
         (c)  The commission [board] by rule may implement a system
  under which licenses expire on various dates during the year. If a
  license is issued or renewed for a term that is less than the period
  set under Subsection (a) [For a year in which a license expiration
  date is changed], the fee for the license shall be prorated so that
  the license holder pays only that portion of the fee that is
  allocable to the number of months during which the license is valid.
  On renewal of the license on the new expiration date, the entire
  license renewal fee is payable.
         (e)  If the commission prescribes the term of a license under
  this chapter for a period other than one year, the commission shall
  prorate the applicable annual fee required under this chapter as
  necessary to reflect the term of the license.
         SECTION 5.  Section 2301.303, Occupations Code, is amended
  to read as follows:
         Sec. 2301.303.  RENEWAL OF DEALER'S LICENSE.  A dealer shall
  renew the dealer's license [annually] on an application prescribed
  by the director [board]. The director [board] shall include in the
  renewal application a request for disclosure of material changes
  described by Section 2301.257.
         SECTION 6.  Sections 503.007(a), (b), and (c),
  Transportation Code, are amended to read as follows:
         (a)  The fee for an original general distinguishing number is
  $500 for the first year and $200 for each subsequent year for which
  the number is valid.
         (b)  The fee for the renewal of a general distinguishing
  number is $200 a year.
         (c)  The registration fee for a drive-a-way in-transit
  license is $50 a year.
         SECTION 7.  Sections 503.008(a), (b), and (c),
  Transportation Code, are amended to read as follows:
         (a)  The fee for a metal dealer's license plate is $20 a year.
         (b)  The fee for a manufacturer's license plate is $40 a
  year.
         (c)  The fee for an additional set of drive-a-way in-transit
  license plates is $5 a year.
         SECTION 8.  Subchapter A, Chapter 503, Transportation Code,
  is amended by adding Sections 503.010, 503.011, and 503.012 to read
  as follows:
         Sec. 503.010.  TERM OF GENERAL DISTINGUISHING NUMBER,
  LICENSE, OR LICENSE PLATE. Each general distinguishing number,
  license, or license plate issued under this chapter is valid for the
  period prescribed by the commission.
         Sec. 503.011.  PRORATING FEES.  If the commission prescribes
  the term of a general distinguishing number, license, or license
  plate under this chapter for a period other than one year, the
  commission shall prorate the applicable annual fee required under
  this chapter as necessary to reflect the term of the number,
  license, or license plate.
         Sec. 503.012.  COLLECTED MONEY. Section 403.095, Government
  Code, does not apply to money received by the department and
  deposited to the credit of the state highway fund in accordance with
  this chapter.
         SECTION 9.  Sections 503.032(a) and (c), Transportation
  Code, are amended to read as follows:
         (a)  An applicant for a dealer general distinguishing number
  or wholesale motor vehicle auction general distinguishing number
  must demonstrate that the location for which the applicant requests
  the number is an established and permanent place of business. A
  location is considered to be an established and permanent place of
  business if the applicant:
               (1)  owns the real property on which the business is
  situated or has a written lease for the property that has a term of
  not less than the term of the general distinguishing number [one
  year];
               (2)  maintains on the location:
                     (A)  a permanent furnished office that is equipped
  as required by the department for the sale of the vehicles of the
  type specified in the application; and
                     (B)  a conspicuous sign with letters at least six
  inches high showing the name of the applicant's business; and
               (3)  has sufficient space on the location to display at
  least five vehicles of the type specified in the application.
         (c)  The applicant must demonstrate that:
               (1)  the applicant intends to remain regularly and
  actively engaged in the business specified in the application for a
  time equal to at least the term of the general distinguishing number
  [one year] at the location specified in the application; and
               (2)  the applicant or a bona fide employee of the
  applicant will be:
                     (A)  at the location to buy, sell, lease, or
  exchange vehicles; and
                     (B)  available to the public or the department at
  that location during reasonable and lawful business hours.
         SECTION 10.  Section 503.035, Transportation Code, is
  amended to read as follows:
         Sec. 503.035.  ISSUANCE AND RENEWAL OF DRIVE-A-WAY
  IN-TRANSIT LICENSE.  The department shall issue to an applicant on
  the filing of the application and the payment of the fee a [an
  annual] drive-a-way in-transit license and in-transit license
  plates.
         SECTION 11.  Section 503.0618(c), Transportation Code, is
  amended to read as follows:
         (c)  The fee for a metal converter's license plate is $20 a
  year.
         SECTION 12.  Section 503.066(d), Transportation Code, is
  amended to read as follows:
         (d)  A metal license plate issued under this chapter expires
  on the same date as the expiration of the [dealer] license under
  [to] which it is issued.
         SECTION 13.  The changes in law made by this Act to the
  issuance and renewal of a license under Chapter 2301, Occupations
  Code, and a license, general distinguishing number, or license
  plate under Chapter 503, Transportation Code, apply only to a
  license, general distinguishing number, or license plate that is
  originally issued or is renewed on or after the effective date of
  this Act.  A license, general distinguishing number, or license
  plate that is issued or renewed before that date is governed by the
  law in effect on the date of issuance or renewal, and the former law
  is continued in effect for that purpose.
         SECTION 14.  This Act takes effect September 1, 2007.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 2651 was passed by the House on May 8,
  2007, by the following vote:  Yeas 146, Nays 0, 2 present, not
  voting.
 
  ______________________________
  Chief Clerk of the House   
 
 
         I certify that H.B. No. 2651 was passed by the Senate on May
  23, 2007, by the following vote:  Yeas 31, Nays 0.
 
  ______________________________
  Secretary of the Senate    
  APPROVED:  _____________________
                     Date          
   
            _____________________
                   Governor