By: McClendon, Pickett, Harper-Brown H.B. No. 2017
        (Senate Sponsor - Williams)
         (In the Senate - Received from the House April 26, 2011;
  April 27, 2011, read first time and referred to Committee on
  Transportation and Homeland Security; May 19, 2011, reported
  adversely, with favorable Committee Substitute by the following
  vote:  Yeas 6, Nays 0; May 19, 2011, sent to printer.)
 
  COMMITTEE SUBSTITUTE FOR H.B. No. 2017 By:  Williams
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to the organization, governance, duties, and functions of
  the Texas Department of Motor Vehicles.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 2301.002, Occupations Code, is amended
  by adding Subdivisions (1-a) and (14-a) and amending Subdivisions
  (11), (16), (23), and (32) to read as follows:
               (1-a)  "Ambulance manufacturer" means a person other
  than the manufacturer of a motor vehicle chassis who, before the
  retail sale of the motor vehicle, performs modifications on the
  chassis that result in the finished product being classified as an
  ambulance.
               (11)  "Distributor" means a person, other than a
  manufacturer, who:
                     (A)  distributes or sells new motor vehicles to a
  franchised dealer; or
                     (B)  enters into franchise agreements with
  franchised dealers, on behalf of the manufacturer.
               (14-a)  "Fire-fighting vehicle manufacturer" means a
  person other than the manufacturer of a motor vehicle chassis who,
  before the retail sale of the motor vehicle, performs modifications
  on the chassis that result in the finished product being classified
  as a fire-fighting vehicle.
               (16)  "Franchised dealer" means a person who:
                     (A)  holds a franchised motor vehicle dealer's
  license issued by the board under this chapter and Chapter 503,
  Transportation Code; and
                     (B)  is engaged in the business of buying,
  selling, or exchanging new motor vehicles and servicing or
  repairing motor vehicles under a manufacturer's warranty at an
  established and permanent place of business under a franchise in
  effect with a manufacturer or distributor.
               (23)  "Motor vehicle" means:
                     (A)  a fully self-propelled vehicle having two or
  more wheels that has as its primary purpose the transport of a
  person or persons, or property, on a public highway;
                     (B)  a fully self-propelled vehicle having two or
  more wheels that:
                           (i)  has as its primary purpose the
  transport of a person or persons or property;
                           (ii)  is not manufactured for use on public
  streets, roads, or highways; and
                           (iii)  meets the requirements for [has been
  issued] a certificate of title;
                     (C)  an engine, transmission, or rear axle,
  regardless of whether attached to a vehicle chassis, manufactured
  for installation in a vehicle that has:
                           (i)  the transport of a person or persons, or
  property, on a public highway as its primary purpose; and
                           (ii)  a gross vehicle weight rating of more
  than 16,000 pounds; or
                     (D)  a towable recreational vehicle.
               (32)  "Towable recreational 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)  meets the requirements to be issued a
  certificate of title and registration by [is titled and registered
  with] the department 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 2.  Section 2301.153(a), Occupations Code, is
  amended to read as follows:
         (a)  Notwithstanding any other provision of law, the board
  has all powers necessary, incidental, or convenient to perform a
  power or duty expressly granted under this chapter, including the
  power to:
               (1)  initiate and conduct proceedings, investigations,
  or hearings;
               (2)  administer oaths;
               (3)  receive evidence and pleadings;
               (4)  issue subpoenas to compel the attendance of any
  person;
               (5)  order the production of any tangible property,
  including papers, records, or other documents;
               (6)  make findings of fact on all factual issues
  arising out of a proceeding initiated under this chapter;
               (7)  specify and govern appearance, practice, and
  procedures before the board;
               (8)  adopt rules and issue conclusions of law and
  decisions, including declaratory decisions or orders;
               (9)  enter into contracts;
               (10)  execute instruments;
               (11)  retain counsel;
               (12)  use the services of the attorney general and
  institute and direct the conduct of legal proceedings in any forum;
               (13)  obtain other professional services as necessary
  and convenient;
               (14)  impose a sanction for contempt;
               (15)  assess and collect fees and costs, including
  attorney's fees;
               (16)  issue, suspend, or revoke licenses;
               (17)  prohibit and regulate acts and practices in
  connection with the distribution and sale of motor vehicles or
  warranty performance obligations;
               (18)  issue cease and desist orders in the nature of
  temporary or permanent injunctions;
               (19)  impose a civil penalty;
               (20)  enter an order requiring a person to:
                     (A)  repurchase property under Section 2301.465
  and pay costs and expenses of a party in connection with an order
  entered under that section [Section 2301.465];
                     (B)  perform an act other than the payment of
  money; or
                     (C)  refrain from performing an act; and
               (21)  enforce a board order.
         SECTION 3.  Section 2301.154, Occupations Code, is amended
  to read as follows:
         Sec. 2301.154.  DELEGATION OF POWERS. (a) The director may
  delegate any of the director's powers to  one or more of the
  division's employees.
         (b)  The board by rule may delegate any power relating to a
  contested case hearing, other than the power to issue a final order,
  to:
               (1)  one or more of the board's members;
               (2)  the executive director;
               (3)  the director; or
               (4)  one or more of the department's employees.
         (c)  The board by rule may delegate the authority to issue a
  final order in a contested case hearing to:
               (1)  one or more of the board's members;
               (2)  the executive director; or
               (3)  the director of a division within the department
  designated by the board or the executive director to carry out the
  requirements of this chapter.
         (d)  The board by rule may delegate any power relating to a
  complaint investigation to any person employed by the department.
         SECTION 4.  Section 2301.252(b), Occupations Code, is
  amended to read as follows:
         (b)  For purposes of this section:
               (1)  the make of a conversion[, ambulance, or
  fire-fighting vehicle] is that of the chassis manufacturer; [and]
               (2)  the make of a motor home is that of the motor home
  manufacturer;
               (3)  the make of an ambulance is that of the ambulance
  manufacturer; and
               (4)  the make of a fire-fighting vehicle is that of the
  fire-fighting vehicle manufacturer.
         SECTION 5.  Sections 2301.257(a), (b), and (c), Occupations
  Code, are amended to read as follows:
         (a)  An application for a dealer's license must be on a form
  prescribed by the department [board]. The application must
  include:
               (1)  the information required by Chapter 503,
  Transportation Code; and
               (2)  information relating to the applicant's financial
  resources, business integrity, business ability and experience,
  franchise if applicable, physical facilities, vehicle inventory,
  and other factors the department [board] considers necessary to
  determine the applicant's qualifications to adequately serve the
  public.
         (b)  If a material change occurs in the information included
  in an application for a dealer's license, the dealer shall notify
  the department [director] of the change within a reasonable
  time.  The department [director] shall prescribe a form for the
  disclosure of the change.
         (c)  A franchised dealer must apply for a separate license
  under this section for each separate and distinct dealership
  showroom as determined by the department [board]. Before changing
  a location, a dealer must obtain a new license for that location.
         SECTION 6.  Section 2301.258, Occupations Code, is amended
  to read as follows:
         Sec. 2301.258.  GENERAL REQUIREMENTS FOR APPLICATION FOR
  MANUFACTURER'S, DISTRIBUTOR'S, CONVERTER'S, OR REPRESENTATIVE'S
  LICENSE. An application for a manufacturer's, distributor's,
  converter's, or representative's license must be on a form
  prescribed by the department [board]. The application must include
  information the department [board] determines necessary to fully
  determine the qualifications of an applicant, including financial
  resources, business integrity and experience, facilities and
  personnel for serving franchised dealers, and other information the
  department [board] determines pertinent to safeguard the public
  interest and welfare.
         SECTION 7.  Section 2301.261(a), Occupations Code, is
  amended to read as follows:
         (a)  An application for a vehicle lessor's license must:
               (1)  be on a form prescribed by the department [board];
               (2)  contain evidence of compliance with Chapter 503,
  Transportation Code, if applicable; and
               (3)  state other information required by the department
  [board].
         SECTION 8.  Section 2301.262(a), Occupations Code, is
  amended to read as follows:
         (a)  An application for a vehicle lease facilitator license
  must be on a form prescribed by the department [board] and contain
  the information required by the department [board].
         SECTION 9.  Sections 2301.264(c) and (d), Occupations Code,
  are amended to read as follows:
         (c)  The department [board] may prorate the fee for a
  representative's license to allow the representative's license and
  the license of the manufacturer or distributor who employs the
  representative to expire on the same day.
         (d)  The department [board] may refund from funds
  appropriated to the department [board] for that purpose a fee
  collected under this chapter that is not due or that exceeds the
  amount due.
         SECTION 10.  Sections 2301.301(a), (b), (c), and (e),
  Occupations Code, are amended to read as follows:
         (a)  Licenses issued under this chapter are valid for the
  period prescribed by the board [commission].
         (b)  The board [director] may issue a license for a term of
  less than the period prescribed under Subsection (a) 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 board [commission] by rule may implement a system
  under which licenses expire on various dates during the year.  For
  a year in which a license expiration date is changed [If a license
  is issued or renewed for a term that is less than the period set
  under Subsection (a)], 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 board [commission] prescribes the term of a
  license under this chapter for a period other than one year, the
  board [commission] shall prorate the applicable annual fee required
  under this chapter as necessary to reflect the term of the license.
         SECTION 11.  Section 2301.302, Occupations Code, is amended
  to read as follows:
         Sec. 2301.302.  NOTICE OF LICENSE EXPIRATION. The
  department [board] shall notify each person licensed under this
  chapter of the date of license expiration and the amount of the fee
  required for license renewal. The notice shall be sent [mailed] at
  least 30 days before the date of license expiration.
         SECTION 12.  Section 2301.351, Occupations Code, is amended
  to read as follows:
         Sec. 2301.351.  GENERAL PROHIBITION. A dealer may not:
               (1)  violate a board rule;
               (2)  aid or abet a person who violates this chapter,
  Chapter 503, Transportation Code, or a rule adopted under those
  chapters; or
               (3)  use false, deceptive, or misleading advertising
  relating to the sale or lease of motor vehicles.
         SECTION 13.  Sections 2301.358(a) and (c), Occupations Code,
  are amended to read as follows:
         (a)  A person who holds a license issued under this chapter
  may not participate in a new motor vehicle show or exhibition
  unless:
               (1)  the person provides the department [board] with
  written notice at least 30 days before the date the show or
  exhibition opens; and
               (2)  the department [board] grants written approval.
         (c)  This section does not prohibit the sale of a towable
  recreational vehicle, motor home, ambulance, fire-fighting
  vehicle, or tow truck at a show or exhibition if:
               (1)  the show or exhibition is approved by the
  department [board]; and
               (2)  the sale is not otherwise prohibited by law.
         SECTION 14.  Section 2301.401(a), Occupations Code, is
  amended to read as follows:
         (a)  A manufacturer or distributor shall file with the
  department [board] a copy of the current requirements the
  manufacturer or distributor imposes on its dealers with respect to
  the dealer's:
               (1)  duties under the manufacturer's or distributor's
  warranty; and
               (2)  vehicle preparation and delivery obligations.
         SECTION 15.  Section 2301.454(a), Occupations Code, is
  amended to read as follows:
         (a)  Notwithstanding the terms of any franchise, a
  manufacturer, distributor, or representative may not modify or
  replace a franchise if the modification or replacement would
  adversely affect to a substantial degree the dealer's sales,
  investment, or obligations to provide service to the public,
  unless:
               (1)  the manufacturer, distributor, or representative
  provides written notice by registered or certified mail to each
  affected dealer and the department [board] of the modification or
  replacement; and
               (2)  if a protest is filed under this section, the board
  approves the modification or replacement.
         SECTION 16.  Section 2301.476(c), Occupations Code, is
  amended to read as follows:
         (c)  Except as provided by this section, a manufacturer or
  distributor may not directly or indirectly:
               (1)  own an interest in a franchised or nonfranchised 
  dealer or dealership;
               (2)  operate or control a franchised or nonfranchised 
  dealer or dealership; or
               (3)  act in the capacity of a franchised or
  nonfranchised dealer.
         SECTION 17.  Section 2301.601(2), Occupations Code, is
  amended to read as follows:
               (2)  "Owner" means a person who is entitled to enforce a
  manufacturer's warranty with respect to a motor vehicle, and who:
                     (A)  purchased the [a] motor vehicle at retail
  from a license holder [and is entitled to enforce a manufacturer's
  warranty with respect to the vehicle];
                     (B)  is a lessor or lessee, other than a
  sublessee, who purchased or leased the vehicle from a license
  holder; [or]
                     (C)  is a resident of this state and has
  registered the vehicle in this state;
                     (D)  purchased or leased the vehicle at retail and
  is an active duty member of the United States armed forces stationed
  in this state at the time a proceeding is commenced under this
  subchapter; or
                     (E)  is:
                           (i)  the transferee or assignee of a person
  described by Paragraphs (A)-(D); [Paragraph (A) or (B),]
                           (ii)  a resident of this state; [,] and
                           (iii)  the person who registered the vehicle
  in this state [entitled to enforce the manufacturer's warranty].
         SECTION 18.  Sections 2301.611(a) and (c), Occupations Code,
  are amended to read as follows:
         (a)  The department [board] shall publish an annual report on
  the motor vehicles ordered repurchased or replaced under this
  subchapter.
         (c)  The department [board] shall make the report available
  to the public and may charge a reasonable fee to cover the cost of
  the report.
         SECTION 19.  Section 2301.613(a), Occupations Code, is
  amended to read as follows:
         (a)  The department [board] shall prepare, publish, and
  distribute information concerning an owner's rights under this
  subchapter. The retail seller of a new motor vehicle shall
  conspicuously post a copy of the information in the area where its
  customers usually pay for repairs.
         SECTION 20.  Section 2301.711, Occupations Code, is amended
  and to read as follows:
         Sec. 2301.711.  ORDERS AND DECISIONS. [(a)] An order or
  decision of the board must:
               (1)  include a separate finding of fact with respect to
  each specific issue the board is required by law to consider in
  reaching a decision;
               (2)  set forth additional findings of fact and
  conclusions of law on which the order or decision is based; [and]
               (3)  give the reasons for the particular actions taken;
               (4)  [.
         [(b)     Except as provided by Subchapter M, the order or
  decision must:
               [(1)]  be signed by the presiding officer or assistant
  presiding officer for the board;
               (5) [(2)]  be attested to by the director; and
               (6) [(3)]  have the seal affixed to it.
         SECTION 21.  Section 2301.803(c), Occupations Code, is
  amended to read as follows:
         (c)  A person affected by a statutory stay imposed by this
  chapter may request a hearing [initiate a proceeding before the
  board] to modify, vacate, or clarify the extent and application of
  the statutory stay.
         SECTION 22.  Section 501.023, Transportation Code, is
  amended by amending Subsections (a), (b), and (c) and adding
  Subsection (e) to read as follows:
         (a)  The owner of a motor vehicle must present identification
  and apply for a [certificate of] title as prescribed by the
  department, unless otherwise exempted by law. To obtain a title,
  the owner must apply:
               (1)  to the county assessor-collector in the county in
  which:
                     (A)  the owner is domiciled; or
                     (B)  the motor vehicle is purchased or encumbered;
  or [and]
               (2)  if the county in which the owner resides has been
  declared by the governor as a disaster area, to the county
  assessor-collector in one of the closest unaffected counties to a
  county that asks for assistance and:
                     (A)  continues to be declared by the governor as a
  disaster area because the county has been rendered inoperable by
  the disaster; and
                     (B)  is inoperable for a protracted period of time
  [on a form prescribed by the department].
         (b)  The assessor-collector shall send the application to
  the department or enter it into the department's titling system
  within 72 [not later than 24] hours after receipt of [receiving] the
  application.
         (c)  The owner or a lessee of a commercial motor vehicle
  operating under the International Registration Plan or other
  agreement described by Section 502.054 that is applying for a
  [certificate of] title for purposes of registration only may apply
  [must be made] directly to the department. Notwithstanding Section
  501.138(a), an applicant for registration under this subsection
  shall pay [the department] the fee imposed by that section. The
  [department shall send the] fee shall be distributed to the
  appropriate county assessor-collector [for distribution] in the
  manner provided by Section 501.138.
         (e)  Applications submitted to the department electronically
  must request the purchaser's choice of county as stated in
  Subsection (a) as the recipient of all taxes, fees, and other
  revenue collected as a result of the transaction.
         SECTION 23.  Chapter 501, Transportation Code, is amended by
  adding Subchapter I to read as follows:
  SUBCHAPTER I. ELECTRONIC TITLING SYSTEM
         Sec. 501.171.  APPLICATION OF SUBCHAPTER. This subchapter
  applies only if the department implements a titling system under
  Section 501.173.
         Sec. 501.172.  DEFINITIONS. In this subchapter:
               (1)  "Document" means information that is inscribed on
  a tangible medium or that is stored in an electronic or other medium
  and is retrievable in perceivable form.
               (2)  "Electronic" means relating to technology having
  electrical, digital, magnetic, wireless, optical, electromagnetic,
  or similar capabilities.
               (3)  "Electronic document" means a document that is in
  an electronic form.
               (4)  "Electronic signature" means an electronic sound,
  symbol, or process attached to or logically associated with a
  document and executed or adopted by a person with the intent to sign
  the document.
               (5)  "Paper document" means a document that is in
  printed form.
         Sec. 501.173.  ELECTRONIC TITLING SYSTEM. (a) The board by
  rule may implement an electronic titling system.
         (b)  A record of title maintained electronically by the
  department in the titling system is the official record of vehicle
  ownership unless the owner requests that the department issue a
  printed title.
         Sec. 501.174.  VALIDITY OF ELECTRONIC DOCUMENTS. (a) If
  this chapter requires that a document be an original, be on paper or
  another tangible medium, or be in writing, the requirement is met by
  an electronic document that complies with this subchapter.
         (b)  If a law requires that a document be signed, the
  requirement is satisfied by an electronic signature.
         (c)  A requirement that a document or a signature associated
  with a document be notarized, acknowledged, verified, witnessed, or
  made under oath is satisfied if the electronic signature of the
  person authorized to perform that act, and all other information
  required to be included, is attached to or logically associated
  with the document or signature. A physical or electronic image of a
  stamp, impression, or seal is not required to accompany an
  electronic signature.
         Sec. 501.175.  RECORDING OF DOCUMENTS. (a) Under the
  titling system, the department may:
               (1)  receive, index, store, archive, and transmit
  electronic documents;
               (2)  provide for access to, and for search and
  retrieval of, documents and information by electronic means; and
               (3)  convert into electronic form:
                     (A)  paper documents that it accepts for the
  titling of a motor vehicle; and
                     (B)  information recorded and documents that were
  accepted for the titling of a motor vehicle before the titling
  system was implemented.
         (b)  The department shall continue to accept paper documents
  after the titling system is implemented.
         Sec. 501.176.  PAYMENT OF FEES BY ELECTRONIC FUNDS TRANSFER
  OR CREDIT CARD. (a) The department may accept payment by
  electronic funds transfer, credit card, or debit card of any title
  or registration fee that the department is required or authorized
  to collect under this chapter.
         (b)  The department may collect a fee for processing a title
  or registration payment by electronic funds transfer, credit card,
  or debit card. The amount of the fee must be reasonably related to
  the expense incurred by the department in processing the payment by
  electronic funds transfer, credit card, or debit card and may not be
  more than five percent of the amount of the fee being paid.
         (c)  In addition to the fee authorized by Subsection (b), the
  department may collect from a person making payment by electronic
  funds transfer, credit card, or debit card an amount equal to the
  amount of any transaction fee charged to the department by a vendor
  providing services in connection with payments made by electronic
  funds transfer, credit card, or debit card. The limitation
  prescribed by Subsection (b) on the amount of a fee does not apply
  to a fee collected under this subsection.
         Sec. 501.177.  SERVICE CHARGE. If, for any reason, the
  payment of a fee under this chapter by electronic funds transfer,
  credit card, or debit card is not honored by the funding
  institution, or by the electronic funds transfer, credit card, or
  debit card company on which the funds are drawn, the department may
  collect from the person who owes the fee being collected a service
  charge that is for the collection of that original amount and is in
  addition to the original fee. The amount of the service charge must
  be reasonably related to the expense incurred by the department in
  collecting the original amount.
         Sec. 501.178.  DISPOSITION OF FEES. All fees collected
  under this subchapter shall be deposited to the credit of the state
  highway fund.
         Sec. 501.179.  RELATION TO ELECTRONIC SIGNATURES IN GLOBAL
  AND NATIONAL COMMERCE ACT. This subchapter modifies, limits, and
  supersedes the federal Electronic Signatures in Global and National
  Commerce Act (15 U.S.C. Section 7001 et seq.) but does not modify,
  limit, or supersede Section 101(c) of that Act (15 U.S.C. Section
  7001(c)) or authorize electronic delivery of any of the notices
  described in Section 103(b) of that Act (15 U.S.C. Section
  7003(b)).
         SECTION 24.  Section 502.002, Transportation Code, is
  amended to read as follows:
         Sec. 502.002.  REGISTRATION REQUIRED; GENERAL RULE. (a)
  Not more than 30 days after purchasing a vehicle or becoming a
  resident of this state, the [The] owner of a motor vehicle, trailer,
  or semitrailer shall apply for the registration of the vehicle for:
               (1)  each registration year in which the vehicle is
  used or to be used on a public highway; and
               (2)  if the vehicle is unregistered for a registration
  year that has begun and that applies to the vehicle and if the
  vehicle is used or to be used on a public highway, the remaining
  portion of that registration year.
         (b)  The application must be accompanied by personal
  identification as determined by department rule and made in a
  manner prescribed by [to] the department:
               (1)  through the county assessor-collector of the
  county in which the owner resides; or
               (2)  if the county in which the owner resides has been
  declared by the governor as a disaster area, through the county
  assessor-collector of a county that is one of the closest
  unaffected counties to a county that asks for assistance and:
                     (A)  continues to be declared by the governor as a
  disaster area because the county has been rendered inoperable by
  the disaster; and
                     (B)  is inoperable for a protracted period of
  time.
         (c)  A provision of this chapter that conflicts with this
  section prevails over this section to the extent of the conflict.
         (d)  A county assessor-collector, a deputy county
  assessor-collector, or a person acting on behalf of a county
  assessor-collector is not liable to any person for:
               (1)  refusing to register a motor vehicle because of
  the person's failure to submit evidence of residency that complies
  with the department's rules; or
               (2)  registering a motor vehicle under this section.
         SECTION 25.  Section 502.151, Transportation Code, is
  amended to read as follows:
         Sec. 502.151.  APPLICATION FOR REGISTRATION. (a) An
  application for vehicle registration must:
               (1)  be made in a manner prescribed and include the
  information required [on a form furnished] by the department by
  rule; and
               (2)  contain a [the] full description [name and address
  of the owner] of the vehicle as required by department rule [;
               [(3)  contain a brief description of the vehicle;
               [(4)     contain any other information required by the
  department; and
               [(5)  be signed by the owner].
         (b)  The department shall deny the [For a new motor vehicle,
  the description of the vehicle must include the vehicle's:
               [(1)  trade name;
               [(2)  year model;
               [(3)  style and type of body;
               [(4)  weight, if the vehicle is a passenger car;
               [(5)     net carrying capacity and gross weight, if the
  vehicle is a commercial motor vehicle;
               [(6)  vehicle identification number; and
               [(7)     date of sale by the manufacturer or dealer to the
  applicant.
         [(c)  An applicant for] registration of a commercial motor
  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, a family member, a
  corporate officer, or a 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 [must] deliver to the county
  assessor-collector proof of [an affidavit showing] 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. [The
  assessor-collector shall keep the affidavit on file.]
         (c) [(d)]  In lieu of filing an application during a year as
  provided by Subsection (a), the owner of a vehicle registered in any
  state for that year or the preceding year may present the
  registration receipt and transfer receipt, if any. The county
  assessor-collector shall accept the receipt as an application for
  renewal of the registration if the receipt indicates the applicant
  owns the vehicle. This section allows issuance for registration
  purposes only but does not authorize the department to issue a
  title.
         (d)  The department may require an applicant for
  registration to provide current personal identification as
  determined by department rule. Any identification number required
  by the department under this subsection may be entered into the
  department's electronic titling system but may not be printed on
  the title.
         [(e)     If an owner or claimed owner has lost or misplaced the
  registration receipt or transfer receipt for the vehicle, the
  county assessor-collector shall register the vehicle on the
  person's furnishing to the assessor-collector satisfactory
  evidence, by affidavit or otherwise, that the person owns the
  vehicle.
         [(f)     A county assessor-collector shall date each
  registration receipt issued for a vehicle with the date on which the
  application for registration is made.]
         SECTION 26.  Section 503.011, Transportation Code, is
  amended to read as follows:
         Sec. 503.011.  PRORATING FEES.  If the board [commission]
  prescribes the term of a general distinguishing number, license, or
  license plate under this chapter for a period other than one year,
  the board [commission] shall prorate the applicable annual fee
  required under this chapter as necessary to reflect the term of the
  number, license, or license plate.
         SECTION 27.  Section 503.027(a), Transportation Code, is
  amended to read as follows:
         (a)  If a dealer [person] consigns for sale more than five
  vehicles in a calendar year from a location other than the location
  for which the dealer [person] holds a [wholesale motor vehicle
  auction general distinguishing number or a dealer] general
  distinguishing number, the dealer must also hold [location to which
  the person consigns the vehicles must have] a general
  distinguishing number for the consignment [that] location unless
  the consignment location is a wholesale motor vehicle auction.
         SECTION 28.  Section 503.033(g), Transportation Code, is
  amended to read as follows:
         (g)  This section does not apply to a person licensed as a
  franchised motor vehicle dealer by the department [department's
  Motor Vehicle Board].
         SECTION 29.  Section 503.039, Transportation Code, is
  amended to read as follows:
         Sec. 503.039.  PUBLIC MOTOR VEHICLE AUCTIONS. (a) A motor
  vehicle may not be the subject of a subsequent sale at a public [an]
  auction by a holder of a dealer's general distinguishing number
  unless[:
               [(1)]  equitable or legal title has passed [passes] to
  the selling dealer [holder of a dealer's general distinguishing
  number] before the [a] transfer of title to the subsequent buyer.
         (b)  The [; and
               [(2)  the] holder of a dealer's general distinguishing
  number who sells a motor vehicle at a public auction must transfer
  [transfers] the certificate of title for that vehicle to the buyer
  before the 21st day after the date of the sale.
         SECTION 30.  Subchapter A, Chapter 520, Transportation Code,
  is amended by adding Sections 520.003 and 520.004 to read as
  follows:
         Sec. 520.003.  RULES; WAIVER OF FEES. The department may
  adopt rules to administer this chapter, including rules that waive
  the payment of fees if a dealer has gone out of business and the
  applicant can show that fees were paid to the dealer.
         Sec. 520.004.  DEPARTMENT RESPONSIBILITIES. The department
  has jurisdiction over the registration and titling of, and the
  issuance of license plates to, motor vehicles in compliance with
  the applicable statutes. The department by rule:
               (1)  shall provide services that are reasonable,
  adequate, and efficient;
               (2)  shall establish standards for uniformity and
  service quality for counties and dealers licensed under Section
  520.005; and
               (3)  may conduct public service education campaigns
  related to the department's functions.
         SECTION 31.  Section 501.137, Transportation Code, is
  transferred to Subchapter A, Chapter 520, Transportation Code,
  redesignated as Section 520.005, Transportation Code, and amended
  to read as follows:
         Sec. 520.005  [501.137].  DUTY AND RESPONSIBILITIES OF
  COUNTY ASSESSOR-COLLECTOR. (a)  Each county assessor-collector
  shall comply with Chapter 501 [this chapter].
         (b)  An assessor-collector who fails or refuses to comply
  with Chapter 501 [this chapter] is liable on the
  assessor-collector's official bond for resulting damages suffered
  by any person.
         (c)  The assessor-collector may license franchised and
  nonfranchised motor vehicle dealers to title and register motor
  vehicles in accordance with rules adopted under Section 520.004.
  The county assessor-collector may pay a fee to a motor vehicle
  dealer independent of or as part of the portion of the fees that
  would be collected by the county for each title and registration
  receipt issued.
         SECTION 32.  Section 502.109, Transportation Code, is
  transferred to Subchapter A, Chapter 520, Transportation Code,
  redesignated as Section 520.006, Transportation Code, and amended
  to read as follows:
         Sec. 520.006  [502.109]. COMPENSATION OF
  ASSESSOR-COLLECTOR. (a)  A county assessor-collector shall
  receive a fee of $1.90 for each receipt issued under Chapter 502
  [this chapter. If the assessor-collector may be compensated by
  fees, a fee received is compensation for services under this
  chapter. The assessor-collector shall deduct the fee weekly from
  the gross collections made under this chapter].
         (a-1)  A county assessor-collector collecting fees on behalf
  of a county that has been declared as a disaster area for purposes
  of Section 501.023 or 502.002 may retain the commission for fees
  collected, but shall allocate the fees to the county declared as a
  disaster area.
         (b)  A county assessor-collector who is compensated under
  this section shall pay the entire expense of issuing registration
  receipts and license plates under Chapter 501 or 502 [this chapter]
  from the compensation allowed under this section.
         SECTION 33.  Section 1001.001, Transportation Code, is
  amended by adding Subdivision (3) to read as follows:
               (3)  "Executive director" means the executive director
  of the department.
         SECTION 34.  Section 1001.004, Transportation Code, is
  amended to read as follows:
         Sec. 1001.004.  DIVISIONS.  The executive director [board]
  shall organize the department into divisions to accomplish the
  department's functions and the duties assigned to the department 
  [it, including divisions for:
               [(1)  administration;
               [(2)  motor carriers;
               [(3)  motor vehicle board; and
               [(4)  vehicle titles and registration].
         SECTION 35.  Subchapter A, Chapter 1001, Transportation
  Code, is amended by adding Sections 1001.007, 1001.008, 1001.009,
  1001.010, and 1001.011 to read as follows:
         Sec. 1001.007.  PROTECTION AND USE OF INTELLECTUAL PROPERTY
  AND PUBLICATIONS. (a) The department may:
               (1)  apply for, register, secure, hold, and protect
  under the laws of the United States, any state, or any nation a
  patent, copyright, mark, or other evidence of protection or
  exclusivity issued in or for an idea, publication, or other
  original innovation fixed in a tangible medium, including:
                     (A)  a literary work;
                     (B)  a logo;
                     (C)  a service mark;
                     (D)  a study;
                     (E)  a map or planning document;
                     (F)  a graphic design;
                     (G)  a manual;
                     (H)  automated systems software;
                     (I)  an audiovisual work; or
                     (J)  a sound recording;
               (2)  enter into an exclusive or nonexclusive license
  agreement with a third party for the receipt of a fee, royalty, or
  other thing of monetary or nonmonetary value for the benefit of the
  department;
               (3)  waive or reduce the amount of a fee, royalty, or
  other thing of monetary or nonmonetary value to be assessed if the
  department determines that the waiver will:
                     (A)  further the goals and missions of the
  department; and
                     (B)  result in a net benefit to the state; and
               (4)  adopt and enforce rules necessary to implement
  this section.
         (b)  Money collected by the department under this section
  shall be deposited to the credit of the state highway fund for use
  by the department in supporting the department's operations and the
  administration of the department's functions.
         Sec. 1001.008.  DONATIONS AND CONTRIBUTIONS. (a)  Except as
  provided by Subsection (b), for the purpose of carrying out its
  functions and duties, the board may accept a donation or
  contribution in any form, including real or personal property,
  money, materials, or services.
         (b)  The board may not accept a donation or contribution from
  an entity or association of entities that it regulates.
         (c)  The board by rule may delegate acceptance of donations
  or contributions under $500, or not otherwise required to be
  acknowledged in an open meeting, to the executive director.
         Sec. 1001.009.  COLLECTION OF FEES FOR DEPARTMENT GOODS AND
  SERVICES. (a) The board may adopt rules regarding the method of
  collection of a fee for any goods sold or services provided by the
  department or for the administration of any department program.
         (b)  Goods sold and services provided under Subsection (a)
  include department publications and the issuance of licenses,
  permits, and registrations.
         (c)  The rules adopted under Subsection (a) may:
               (1)  authorize the use of electronic funds transfer or
  a valid debit or credit card issued by a financial institution
  chartered by a state, the United States, or a nationally recognized
  credit organization approved by the department; and
               (2)  require the payment of a discount or service
  charge for a credit card payment in addition to the fee.
         (d)  Revenue generated from the collection of discount or
  service charges under Subsection (c) shall be deposited to the
  credit of the state highway fund for use by the department in
  supporting the department's operations and the administration of
  the department's functions.
         Sec. 1001.010.  AUTHORITY TO CONTRACT. (a) The department
  may enter into an interlocal contract with one or more local
  governments in accordance with Chapter 791, Government Code.
         (b)  The board by rule shall adopt policies and procedures
  consistent with applicable state procurement practices for
  soliciting and awarding a contract under this section.
         Sec. 1001.011.  EDUCATIONAL CAMPAIGNS AND TRAINING. The
  department may conduct public service educational campaigns
  related to its functions.
         SECTION 36.  Subchapter B, Chapter 1001, Transportation
  Code, is amended by adding Section 1001.0221 to read as follows:
         Sec. 1001.0221.  BOARD; DUTIES. (a)  The board shall oversee
  and coordinate the development of the department and shall ensure
  that all components of the motor vehicle industry function as a
  system.
         (b)  The board shall carry out its policy-making functions in
  a manner that protects the interests of the public and industry,
  maintains a safe and sound motor vehicle industry, and increases
  the economic prosperity of the state.
         SECTION 37.  Section 1001.023, Transportation Code, is
  amended to read as follows:
         Sec. 1001.023.  CHAIR AND VICE CHAIR; DUTIES. (a) The
  governor shall appoint one of the board's members chair of the
  board. The chair serves at the pleasure of the governor. The board
  shall elect one of its members vice chair of the board.  The [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 of the chair and vice chair; and
               (10)  serve as the departmental liaison with the
  governor and the Office of State-Federal Relations to maximize
  federal funding for transportation.
         SECTION 38.  Section 1001.031, Transportation Code, is
  amended by amending Subsection (a) and adding Subsections (a-1) and
  (f) to read as follows:
         (a)  The board may [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.
         (a-1)  Section 2110.002, Government Code, does not apply to
  an advisory committee established under this section.
         (f)  The meetings of an advisory committee shall be made
  accessible to the public in person or through electronic means.
         SECTION 39.  Subchapter C, Chapter 1001, Transportation
  Code, is amended by adding Section 1001.0411 to read as follows:
         Sec. 1001.0411.  EXECUTIVE DIRECTOR; DUTIES. (a)  The board
  shall appoint an executive director to serve at the pleasure of the
  board.  The executive director shall perform all duties assigned by
  the board.
         (b)  The executive director may delegate duties or
  responsibilities as the executive director considers appropriate,
  provided the delegation does not conflict with applicable law or a
  resolution of the board.
         SECTION 40.  Chapter 1001, Transportation Code, is amended
  by adding Subchapter D to read as follows:
  SUBCHAPTER D. ELECTRONIC ISSUANCE OF LICENSES
         Sec. 1001.101.  DEFINITIONS. In this subchapter:
               (1)  "Digital signature" means an electronic
  identifier intended by the person using it to have the same force
  and effect as the use of a manual signature.
               (2)  "License" includes:
                     (A)  a motor carrier registration issued under
  Chapter 643;
                     (B)  a motor vehicle dealer, salvage dealer,
  manufacturer, distributor, representative, converter, or agent
  license issued by the department;
                     (C)  specially designated or specialized license
  plates issued under Chapter 504; and
                     (D)  an apportioned registration issued according
  to the International Registration Plan under Section 502.054.
         Sec. 1001.102.  APPLICATION FOR AND ISSUANCE OF LICENSE.  
  The board by rule may provide for the filing of a license
  application and the issuance of a license by electronic means.
         Sec. 1001.103.  DIGITAL SIGNATURE. (a) A license
  application received by the department is considered signed if a
  digital signature is transmitted with the application and intended
  by the applicant to authenticate the license in accordance with
  Subsection (b).
         (b)  The department may only accept a digital signature used
  to authenticate a license application under procedures that:
               (1)  comply with any applicable rules of another state
  agency having jurisdiction over department use or acceptance of a
  digital signature; and
               (2)  provide for consideration of factors that may
  affect a digital signature's reliability, including whether a
  digital signature is:
                     (A)  unique to the person using it;
                     (B)  capable of independent verification;
                     (C)  under the sole control of the person using
  it; and
                     (D)  transmitted in a manner that makes it
  infeasible to change the data in the communication or digital
  signature without invalidating the digital signature.
         SECTION 41.  Chapter 1003, Transportation Code, is amended
  by adding Section 1003.005 to read as follows:
         Sec. 1003.005.  DELEGATION OF POWER. (a) The board by rule
  may delegate any power relating to a contested case hearing, other
  than the power to issue a final order, to:
               (1)  one or more of the board's members;
               (2)  the executive director;
               (3)  the director of a division of the department; or
               (4)  one or more of the department's employees.
         (b)  The board by rule may delegate the authority to issue a
  final order in a contested case hearing to:
               (1)  one or more of the board's members;
               (2)  the executive director; or
               (3)  the director of a division within the department
  designated by the board or the executive director to carry out the
  requirements of this chapter.
         (c)  The board by rule may delegate any power relating to a
  complaint investigation to any person employed by the department.
         SECTION 42.  Section 264.502(b), 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
  Transportation [Motor Vehicles].
         SECTION 43.  Section 2110.002, Government Code, is amended
  by adding Subsection (c) to read as follows:
         (c)  This section does not apply to an advisory committee
  established by the Texas Department of Motor Vehicles.
         SECTION 44.  (a)  The following provisions are repealed:
               (1)  Section 2054.270, Government Code;
               (2)  Sections 2301.105, 2301.106, and 2301.206,
  Occupations Code;
               (3)  Sections 503.033(c), 1001.031(c) and (d), and
  1004.003, Transportation Code; and
               (4)  Sections 504.403, 504.404, and 504.406,
  Transportation Code.
         (b)  Section 6.03(c), Chapter 933 (H.B. 3097), Acts of the
  81st Legislature, Regular Session, 2009, is repealed.
         SECTION 45.  This Act takes effect September 1, 2011.
 
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