H.B. No. 2357
 
 
 
 
AN ACT
  relating to motor vehicles; providing penalties.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 501.002, Transportation Code, is amended
  to read as follows:
         Sec. 501.002.  DEFINITIONS. In this chapter:
               (1)  "Certificate of title" means a printed record of
  title [an instrument] issued under Section 501.021.
               (2)  "Credit card" means a card, plate, or similar
  device used to make a purchase or to borrow money.
               (3)  "Dealer" has the meaning assigned by Section
  503.001 [means a person who purchases motor vehicles for sale at
  retail].
               (4)  "Debit card" means a card that enables the holder
  to withdraw money or to have the cost of a purchase charged directly
  to the holder's bank account.
               (5) [(3)]  "Department" means the Texas Department of
  Motor Vehicles.
               (6) [(4)]  "Distributor" has the meaning assigned by
  Section 2301.002, Occupations Code [means a person engaged in the
  business of selling to a dealer motor vehicles purchased from a
  manufacturer].
               (7)  "Electric bicycle" has the meaning assigned by
  Section 541.201.
               (8) [(5)]  "First sale" means:
                     (A)  the bargain, sale, transfer, or delivery of a
  motor vehicle that has not been previously registered or titled
  [licensed], with intent to pass an interest in the motor vehicle,
  other than a lien, regardless of where the bargain, sale, transfer,
  or delivery occurred; and
                     (B)  the registration or titling [licensing] of
  that vehicle.
               (9) [(6)]  "House trailer" means a trailer designed for
  human habitation. The term does not include manufactured housing.
               (10) [(7)]  "Importer" means a person, other than a
  manufacturer, that brings a used motor vehicle into this state for
  sale in this state.
               (11) [(8)]  "Importer's certificate" means a
  certificate for a used motor vehicle brought into this state for
  sale in this state.
               (12) [(9)]  "Lien" means:
                     (A)  a lien provided for by the constitution or
  statute in a motor vehicle;
                     (B)  a security interest, as defined by Section
  1.201, Business & Commerce Code, in a motor vehicle, other than an
  absolute title, created by any written security agreement, as
  defined by Section 9.102, Business & Commerce Code, including a
  lease, conditional sales contract, deed of trust, chattel mortgage,
  trust receipt, or reservation of title; or
                     (C)  a child support lien under Chapter 157,
  Family Code.
               (13) [(10)]  "Manufactured housing" has the meaning
  assigned by Chapter 1201, Occupations Code.
               (14) [(11)]  "Manufacturer" has the meaning assigned
  by Section 503.001 [means a person regularly engaged in the
  business of manufacturing or assembling new motor vehicles].
               (15) [(12)]  "Manufacturer's permanent vehicle
  identification number" means the number affixed by the manufacturer
  to a motor vehicle in a manner and place easily accessible for
  physical examination and die-stamped or otherwise permanently
  affixed on one or more removable parts of the vehicle.
               (16) [(13)]  "Motorcycle" has the meaning assigned by
  Section 521.001 or 541.201, as applicable [means a motor vehicle,
  other than a tractor, designed to propel itself with not more than
  three wheels in contact with the ground].
               (17) [(14)]  "Motor vehicle" means:
                     (A)  any motor driven or propelled vehicle
  required to be registered under the laws of this state;
                     (B)  a trailer or semitrailer, other than
  manufactured housing, that has a gross vehicle weight that exceeds
  4,000 pounds;
                     (C)  a travel [house] trailer;
                     (D)  an all-terrain vehicle or a recreational
  off-highway vehicle, as those terms are defined by Section 502.001,
  designed by the manufacturer for off-highway use that is not
  required to be registered under the laws of this state; or
                     (E)  a motorcycle, motor-driven cycle, or moped
  that is not required to be registered under the laws of this state[,
  other than a motorcycle, motor-driven cycle, or moped designed for
  and used exclusively on a golf course].
               (18) [(15)]  "New motor vehicle" has the meaning
  assigned by Section 2301.002, Occupations Code [means a motor
  vehicle that has not been the subject of a first sale].
               (19) [(16)]  "Owner" means [includes] a person, other
  than a manufacturer, importer, distributor, or dealer, claiming
  title to or having a right to operate under a lien a motor vehicle
  that has been subject to a first sale.
               (20)  "Purchaser" means a person or entity to which a
  motor vehicle is donated, given, sold, or otherwise transferred.
               (21)  "Record of title" means an electronic record of
  motor vehicle ownership in the department's motor vehicle database
  that is created under Subchapter I.
               (22)  "Seller" means a person or entity that donates,
  gives, sells, or otherwise transfers ownership of a motor vehicle.
               (23) [(17)]  "Semitrailer" means a vehicle that is
  designed or used with a motor vehicle so that part of the weight of
  the vehicle and its load rests on or is carried by another vehicle.
               (24) [(18)]  "Serial number" means a vehicle
  identification number that is affixed to a part of a motor vehicle
  and that is:
                     (A)  the manufacturer's permanent vehicle
  identification number;
                     (B)  a derivative number of the manufacturer's
  permanent vehicle identification number;
                     (C)  the motor number; or
                     (D)  the vehicle identification number assigned
  by the department.
               (25) [(19)]  "Steal" has the meaning assigned by
  Section 31.01, Penal Code.
               (26) [(20)]  "Subsequent sale" means:
                     (A)  the bargain, sale, transfer, or delivery of a
  used motor vehicle [that has been previously registered or licensed
  in this state or elsewhere], with intent to pass an interest in the
  vehicle, other than a lien[, regardless of where the bargain, sale,
  transfer, or delivery occurs]; and
                     (B)  the registration of the vehicle if
  registration is required under the laws of this state.
               (27)  "Title" means a certificate or record of title
  that is issued under Section 501.021.
               (28) [(21)]  "Title receipt" means a document [an
  instrument] issued under Section 501.024.
               (29) [(22)]  "Trailer" means a vehicle that:
                     (A)  is designed or used to carry a load wholly on
  the trailer's own structure; and
                     (B)  is drawn or designed to be drawn by a motor
  vehicle.
               (30)  "Travel trailer" means a house trailer-type
  vehicle or a camper trailer:
                     (A)  that is a recreational vehicle defined under
  24 C.F.R. Section 3282.8(g); or
                     (B)  that:
                           (i)  is less than eight feet in width or 40
  feet in length, exclusive of any hitch installed on the vehicle;
                           (ii)  is designed primarily for use as
  temporary living quarters in connection with recreational,
  camping, travel, or seasonal use;
                           (iii)  is not used as a permanent dwelling;
  and
                           (iv)  is not a utility trailer, enclosed
  trailer, or other trailer that does not have human habitation as its
  primary function.
               (31) [(23)]  "Used motor vehicle" means a motor vehicle
  that has been the subject of a first sale.
               (32)  "Vehicle identification number" means:
                     (A)  the manufacturer's permanent vehicle
  identification number affixed by the manufacturer to the motor
  vehicle that is easily accessible for physical examination and
  permanently affixed on one or more removable parts of the vehicle;
  or
                     (B)  a serial number affixed to a part of a motor
  vehicle that is:
                           (i)  a derivative number of the
  manufacturer's permanent vehicle identification number;
                           (ii)  the motor number; or
                           (iii)  a vehicle identification number
  assigned by the department.
         SECTION 2.  The heading to Section 501.003, Transportation
  Code, is amended to read as follows:
         Sec. 501.003.  PURPOSE [CONSTRUCTION].
         SECTION 3.  Section 501.004(a), Transportation Code, is
  amended to read as follows:
         (a)  Except as provided by this section, this [This] chapter
  applies to all motor vehicles, including a motor vehicle owned by
  the state or a political subdivision of the state.
         SECTION 4.  Section 501.131, Transportation Code, is
  transferred to Subchapter A, Chapter 501, Transportation Code,
  redesignated as Section 501.0041, Transportation Code, and amended
  to read as follows:
         Sec. 501.0041  [501.131].  RULES; FORMS. (a)  The
  department may adopt rules to administer this chapter.
         (b)  The department shall post forms on the Internet and[:
               [(1)     in addition to the forms required by this
  chapter, prescribe forms for a title receipt, manufacturer's
  certificate, and importer's certificate, and other forms the
  department determines necessary; and
               [(2)]  provide each county assessor-collector with a
  sufficient supply of any necessary [the] forms on request.
         SECTION 5.  Section 501.159, Transportation Code, is
  transferred to Subchapter A, Chapter 501, Transportation Code,
  redesignated as Section 501.006, Transportation Code, and amended
  to read as follows:
         Sec. 501.006  [501.159].  ALIAS [CERTIFICATE OF] TITLE. On
  receipt of a verified [written] request approved by the executive
  administrator of a law enforcement agency, the department may issue
  a [certificate of] title in the form requested by the executive
  administrator for a vehicle in an alias for the law enforcement
  agency's use in a covert criminal investigation.
         SECTION 6.  Section 501.021, Transportation Code, is amended
  to read as follows:
         Sec. 501.021.  [CERTIFICATE OF] TITLE FOR MOTOR VEHICLE.
  (a)  A motor vehicle [certificate of] title [is an instrument]
  issued by the department must include [that includes]:
               (1)  the name and address of each [the] purchaser and
  seller at the first sale or [the transferee and transferor at] a
  subsequent sale;
               (2)  the make of the motor vehicle;
               (3)  the body type of the vehicle;
               (4)  the manufacturer's permanent vehicle
  identification number of the vehicle or the vehicle's motor number
  if the vehicle was manufactured before the date that stamping a
  permanent identification number on a motor vehicle was universally
  adopted;
               (5)  the serial number for the vehicle;
               (6)  the [number on the vehicle's current Texas license
  plates, if any;
               [(7)  a statement:
                     [(A)  that no lien on the vehicle is recorded; or
                     [(B)  of the] name and address of each lienholder
  and the date of each lien on the vehicle, listed in the
  chronological order in which the lien was recorded;
               (7)  [(8)     a space for the signature of the owner of the
  vehicle;
               [(9)]  a statement indicating rights of survivorship
  under Section 501.031;
               (8) [(10)]  if the vehicle has an odometer, the
  odometer reading at the time of [indicated by the] application for
  the [certificate of] title; and
               (9) [(11)]  any other information required by the
  department.
         (b)  A printed certificate of title must bear the following
  statement on its face:
         "UNLESS OTHERWISE AUTHORIZED BY LAW, IT IS A VIOLATION OF
  STATE LAW TO SIGN THE NAME OF ANOTHER PERSON ON A CERTIFICATE OF
  TITLE OR OTHERWISE GIVE FALSE INFORMATION ON A CERTIFICATE OF
  TITLE."
         (c)  A [certificate of] title for a motor vehicle that has
  been the subject of an ordered repurchase or replacement under
  Chapter 2301, Occupations Code, must contain on its face a notice
  sufficient to inform a purchaser that the motor vehicle has been the
  subject of an ordered repurchase or replacement.
         SECTION 7.  The heading to Section 501.022, Transportation
  Code, is amended to read as follows:
         Sec. 501.022.  MOTOR VEHICLE [CERTIFICATE OF] TITLE
  REQUIRED.
         SECTION 8.  Sections 501.022(a), (b), and (c),
  Transportation Code, are amended to read as follows:
         (a)  The owner of a motor vehicle registered in this state:
               (1)  except as provided by Section 501.029, shall apply
  for title to the vehicle; and
               (2)  may not operate or permit the operation of the
  vehicle on a public highway until the owner obtains:
                     (A)  [a certificate of] title and [for the vehicle
  or until the owner obtains] registration for the vehicle; or
                     (B)  [if] a receipt evidencing title for
  registration purposes only [to the vehicle is issued] under Section
  501.029 [501.029(b)].
         (b)  A person may not operate a motor vehicle registered in
  this state on a public highway if the person knows or has reason to
  believe that the owner has not obtained a [certificate of] title for
  the vehicle.
         (c)  The owner of a motor vehicle that is required to be
  titled and registered in this state must obtain [apply for] a
  [certificate of] title to [of] the vehicle before selling or
  disposing of the vehicle.
         SECTION 9.  The heading to Section 501.023, Transportation
  Code, is amended to read as follows:
         Sec. 501.023.  APPLICATION FOR [CERTIFICATE OF] TITLE.
         SECTION 10.  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 502.091 [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 11.  Sections 501.0234(a), (b), (d), and (e),
  Transportation Code, are amended to read as follows:
         (a)  A person who sells at the first or a subsequent sale a
  motor vehicle and who holds a general distinguishing number issued
  under Chapter 503 of this code or Chapter 2301, Occupations Code,
  shall:
               (1)  except as provided by this section, in the time and
  manner provided by law, apply, in the name of the purchaser of the
  vehicle, for the registration of the vehicle, if the vehicle is to
  be registered, and a [certificate of] title for the vehicle and file
  with the appropriate designated agent each document necessary to
  transfer title to or register the vehicle; and at the same time
               (2)  remit any required motor vehicle sales tax.
         (b)  This section does not apply to a motor vehicle:
               (1)  that has been declared a total loss by an insurance
  company in the settlement or adjustment of a claim;
               (2)  for which the [certificate of] title has been
  surrendered in exchange for:
                     (A)  a salvage vehicle title or salvage record of
  title issued under this chapter;
                     (B)  a nonrepairable vehicle title or
  nonrepairable vehicle record of title issued under this chapter or
  Subchapter D, Chapter 683; or
                     (C)  [a certificate of authority issued under
  Subchapter D, Chapter 683; or
                     [(D)]  an ownership document issued by another
  state that is comparable to a document described by Paragraph (A) or
  (B) [Paragraphs (A)-(C)];
               (3)  with a gross weight in excess of 11,000 pounds; or
               (4)  purchased by a commercial fleet buyer who is a
  full-service deputy under Section 520.008 [502.114] and who
  utilizes the dealer title application process developed to provide
  a method to submit title transactions to the county in which the
  commercial fleet buyer is a full-service deputy.
         (d)  A seller who applies for the registration or a
  [certificate of] title for a motor vehicle under Subsection (a)(1)
  shall apply in the county as directed by the purchaser from the
  counties set forth in Section 501.023 [of this code].
         (e)  The department shall develop [promulgate] a form or
  electronic process in [on] which the purchaser of a motor vehicle
  shall designate the purchaser's choice as set out in Section
  501.023 as the recipient of all taxes, fees, and other revenue
  collected as a result of the transaction, which the tax
  assessor-collector is authorized by law to retain.  A seller shall
  make that form or electronic process available to the purchaser of a
  vehicle at the time of purchase.
         SECTION 12.  Subchapter B, Chapter 501, Transportation Code,
  is amended by adding Section 501.0235 to read as follows:
         Sec. 501.0235.  PERSONAL IDENTIFICATION INFORMATION FOR
  OBTAINING TITLE. (a) The department may require an applicant for a
  title to provide current personal identification as determined by
  department rule.
         (b)  Any identification number required by the department
  under this section may be entered in the department's electronic
  titling system but may not be printed on the title.
         SECTION 13.  Section 501.024, Transportation Code, is
  amended to read as follows:
         Sec. 501.024.  TITLE RECEIPT. (a)  A county
  assessor-collector who receives an application for a [certificate
  of] title shall issue a title receipt to the applicant containing
  the information concerning the motor vehicle required for issuance
  of a title under Section 501.021 or Subchapter I [,] after:
               (1)  the requirements of this chapter are met,
  including the payment of the fees required under Section 501.138;
  and
               (2)  the [, issue a title receipt on which is noted]
  information is entered into the department's titling system
  [concerning the motor vehicle required for the certificate of title
  under Section 501.021, including a statement of the existence of
  each lien as disclosed on the application or a statement that no
  lien is disclosed].
         (b)  If a lien is not disclosed on the application for a
  [certificate of] title, the assessor-collector shall issue a [mark
  the] title receipt ["original" and deliver it] to the applicant.
         (c)  If a lien is disclosed on the application for a
  [certificate of] title, the assessor-collector shall issue a
  duplicate title receipt to the lienholder [receipts. The
  assessor-collector shall:
               [(1)     mark one receipt "original" and mail or deliver
  it to the first lienholder disclosed on the application; and
               [(2)     mark the second receipt "duplicate original" and
  mail or deliver it to the address of the applicant provided on the
  application].
         (d)  A title receipt with registration or permit authorizes
  the operation of the motor vehicle on a public highway in this state
  for 10 days or until the [certificate of] title is issued, whichever
  period is shorter.
         SECTION 14.  Section 501.025, Transportation Code, is
  amended to read as follows:
         Sec. 501.025.  [TITLE RECEIPT REQUIRED ON FIRST SALE;]
  MANUFACTURER'S CERTIFICATE REQUIRED ON FIRST SALE. A county
  assessor-collector may not issue a title receipt on the first sale
  of a motor vehicle unless the applicant for the [certificate of]
  title provides [to the assessor-collector] the application for a
  [certificate of] title and a manufacturer's certificate in [, on] a
  manner [form] prescribed by the department [, that:
               [(1)     is assigned to the applicant by the manufacturer,
  distributor, or dealer shown on the manufacturer's certificate as
  the last transferee; and
               [(2)     shows the transfer of the vehicle from its
  manufacturer to the purchaser, whether a distributor, dealer, or
  owner, and each subsequent transfer from distributor to dealer,
  dealer to dealer, and dealer to applicant].
         SECTION 15.  Section 501.027, Transportation Code, is
  amended to read as follows:
         Sec. 501.027.  ISSUANCE OF [CERTIFICATE OF] TITLE. (a)  On
  the day that a county assessor-collector issues a title receipt, a
  copy of the title receipt and all evidence of title [the
  assessor-collector] shall be submitted [mail] to the department in
  the period specified in Section 501.023(b) [:
               [(1)  a copy of the receipt; and
               [(2)     the evidence of title delivered to the
  assessor-collector by the applicant].
         (b)  Not later than the fifth day after the date the
  department receives an application for a [certificate of] title and
  the department determines the requirements of this chapter are met:
               (1)  the [, the department shall issue the certificate
  of] title shall be issued to the first lienholder or to the
  applicant if [. If] a lien is not disclosed on the application; or
               (2)  [,] the department shall notify [send the
  certificate by first class mail to] the applicant that the
  department's titling system has established a record of title of
  the motor vehicle in the applicant's name if a lien is not disclosed
  [at the address provided on the application]. If a lien is
  disclosed on the application, the department shall notify [send]
  the [certificate by first class mail to the first] lienholder that
  the lien has been recorded [as disclosed on the application].
         SECTION 16.  Section 501.0275, Transportation Code, is
  amended to read as follows:
         Sec. 501.0275.  ISSUANCE OF TITLE FOR UNREGISTERED VEHICLE.
  (a)  The department shall issue a [certificate of] title for a
  motor vehicle that complies with the other requirements [for
  issuance of a certificate of title] under this chapter unless 
  [except that]:
               (1)  the vehicle is not registered for a reason other
  than a reason provided by Section 501.051(a)(6) [501.051(6)]; and
               (2)  the applicant does not provide evidence of
  financial responsibility that complies with Section 502.046
  [502.153].
         (b)  On application for a [certificate of] title under this
  section, the applicant must surrender any license plates issued for
  the motor vehicle if the plates are not being transferred to another
  vehicle and any registration insignia for validation of those
  plates to the department.
         SECTION 17.  Section 501.0276, Transportation Code, is
  amended to read as follows:
         Sec. 501.0276.  DENIAL OF TITLE RECEIPT, [OR CERTIFICATE OF]
  TITLE, OR RECORD OF TITLE FOR FAILURE TO PROVIDE PROOF OF EMISSIONS
  TESTING. A county assessor-collector may not issue a title receipt
  and the department may not issue a certificate of title for a
  vehicle subject to Section 548.3011 unless proof that the vehicle
  has passed a vehicle emissions test as required by that section, in
  a manner [form] authorized by that section, is presented to the
  county assessor-collector with the application for a [certificate
  of] title.
         SECTION 18.  Section 501.029, Transportation Code, is
  amended to read as follows:
         Sec. 501.029.  ACCEPTABLE PROOF OF OWNERSHIP [USE OF
  REGISTRATION RECEIPT OR TITLE RECEIPT TO EVIDENCE TITLE]. [(a)     A
  person may use a registration receipt issued under Chapter 502 or a
  title receipt to evidence title to a motor vehicle and not to
  transfer an interest in or establish a lien on the vehicle.
         [(b)]  The board [department] by rule may provide a list of
  the documents required for the issuance of a receipt that evidences
  title to a motor vehicle for registration purposes only. The fee
  for application for the receipt is the fee applicable to
  application for a [certificate of] title.  The title receipt may not
  be used to transfer an interest in or establish a lien on the
  vehicle.
         SECTION 19.  Sections 501.030(b), (d), (e), (f), and (g),
  Transportation Code, are amended to read as follows:
         (b)  Before a motor vehicle that was not manufactured for
  sale or distribution in the United States may be titled in this
  state, the applicant must:
               (1)  provide to the assessor-collector:
                     (A)  a bond release letter, with all attachments,
  issued by the United States Department of Transportation
  acknowledging:
                           (i)  receipt of a statement of compliance
  submitted by the importer of the vehicle; and
                           (ii)  that the statement meets the safety
  requirements of 19 C.F.R. Section 12.80(e);
                     (B)  a bond release letter, with all attachments,
  issued by the United States Environmental Protection Agency stating
  that the vehicle has been tested and shown to conform to federal
  emission requirements; and
                     (C)  a receipt or certificate issued by the United
  States Department of the Treasury showing that all gas guzzler
  taxes due on the vehicle under 26 U.S.C. Section 4064(a) have been
  paid; or
               (2)  provide to the assessor-collector proof,
  satisfactory to the department, [assessor-collector] that the
  vehicle was not brought into the United States from outside [of] the
  country.
         (d)  If a motor vehicle has not been titled or registered in
  the United States, the application for [certificate of] title must
  be accompanied by:
               (1)  a manufacturer's certificate of origin written in
  English issued by the vehicle manufacturer;
               (2)  the original documents that constitute valid proof
  of ownership in the country where the vehicle was originally
  purchased, with an English translation of the documents verified as
  to the accuracy of the translation by an affidavit of the
  translator; or
               (3)  if the vehicle was imported from a country that
  cancels the vehicle registration and title for export, the
  documents assigned to the vehicle after the registration and title
  were canceled, with an English translation of the documents
  verified as to the accuracy of the translation by an affidavit of
  the translator.
         (e)  Before a motor vehicle that is required to be registered
  in this state and that is brought into this state by a person other
  than a manufacturer or importer may be bargained, sold,
  transferred, or delivered with an intent to pass an interest in the
  vehicle or encumbered by a lien, the owner must apply for a
  [certificate of] title in [on] a manner [form] prescribed by the
  department to the county assessor-collector for the county in which
  the transaction is to take place. The assessor-collector may not
  issue a title receipt unless the applicant delivers to the
  assessor-collector satisfactory evidence [of title] showing that
  the applicant is the owner of the vehicle and that the vehicle is
  free of any undisclosed liens.
         (f)  A county assessor-collector may not be held liable for
  civil damages arising out of the assessor-collector's failure to
  reflect on the title receipt a lien or encumbrance on a motor
  vehicle to which Subsection (e) applies unless the
  [assessor-collector's] failure constitutes wilful or wanton
  negligence.
         (g)  Until an applicant has complied with this section:
               (1)  a county assessor-collector may not accept an
  application for [certificate of] title; and
               (2)  the applicant is not entitled to an appeal as
  provided by Sections 501.052 and 501.053.
         SECTION 20.  Section 501.031, Transportation Code, is
  amended to read as follows:
         Sec. 501.031.  RIGHTS OF SURVIVORSHIP AGREEMENT. (a)  The
  department shall include on each [certificate of] title an optional
  [a] rights of survivorship agreement that [form. The form must]:
               (1)  provides [provide] that if the agreement is
  between [signed by] two or more eligible persons, the motor vehicle
  is held jointly by those persons with the interest of a person who
  dies to transfer [survive] to the surviving person or persons; and
               (2)  provides [provide blanks] for the acknowledgment
  by signature, either electronically or by hand, [signatures] of the
  persons.
         (b)  If the vehicle is registered in the name of one or more
  of the persons who acknowledged [signed] the agreement, the
  [certificate of] title may contain a:
               (1)  rights of survivorship agreement acknowledged
  [signed] by all the persons; or
               (2)  remark if a rights of survivorship agreement is
  [surrendered with the application for certificate of title or
  otherwise] on file with the department.
         (c)  Ownership [Except as provided in Subsection (g),
  ownership] of the vehicle may be transferred only:
               (1)  by all the persons acting jointly, if all the
  persons are alive; and
               (2)  on the death of one of the persons by the surviving
  person or persons by transferring ownership of the vehicle [the
  certificate of title], in the manner otherwise required by law [for
  transfer of ownership of the vehicle], with a copy of the death
  certificate of the deceased person [attached to the certificate of
  title application].
         (d)  A rights of survivorship agreement under this section
  may be revoked only if [by surrender of the certificate of title to
  the department and joint application by] the persons named in [who
  signed] the agreement file a joint application for a new title in
  the name of the person or persons designated in the application.
         (e)  A person is eligible to file [sign] a rights of
  survivorship agreement under this section if the person:
               (1)  is married and the spouse of the [signing] person
  is the only other party to the agreement;
               (2)  is unmarried and attests to that unmarried status
  by affidavit; or
               (3)  is married and provides the department with an
  affidavit from the [signing] person's spouse that attests that the
  [signing] person's interest in the vehicle is the [signing]
  person's separate property.
         (f)  The department may develop an optional electronic [If
  the title is being issued in connection with the sale of the
  vehicle, the seller is not eligible to sign a] rights of
  survivorship agreement for public use [under this section unless
  the seller is the child, grandchild, parent, grandparent, brother,
  or sister of each other person signing the agreement. A family
  relationship required by this subsection may be a relationship
  established by adoption.
         [(g)     If an agreement, other than the agreement provided for
  in Subsection (a), providing for right of survivorship is signed by
  two or more persons, the department shall issue a new certificate of
  title to the surviving person or persons upon application
  accompanied by a copy of the death certificate of the deceased
  person. The department may develop for public use under this
  subsection an optional rights of survivorship agreement form].
         SECTION 21.  Section 501.032, Transportation Code, is
  amended to read as follows:
         Sec. 501.032.  ASSIGNMENT OF VEHICLE IDENTIFICATION
  [SERIAL] NUMBER BY DEPARTMENT. (a)  On proper application, the
  department shall assign a vehicle identification [a serial] number
  to a travel [house] trailer, a trailer or semitrailer that has a
  gross vehicle weight that exceeds 4,000 pounds, or an item of
  equipment, including a tractor, farm implement, unit of special
  mobile equipment, or unit of off-road construction equipment on
  which:
               (1)  a vehicle identification [a serial] number was not
  die-stamped by the manufacturer; or
               (2)  a vehicle identification [the serial] number
  die-stamped by the manufacturer has been lost, removed, or
  obliterated.
         (b)  The applicant shall die-stamp the assigned vehicle
  identification [serial] number at the place designated by the
  department on the travel [house] trailer, trailer, semitrailer, or
  equipment.
         (c)  The manufacturer's vehicle identification [serial]
  number or the vehicle identification [serial] number assigned by
  the department shall be affixed on the carriage or axle part of the
  travel [house] trailer, trailer, or semitrailer. The department
  shall use the number as the major identification of the vehicle in
  the issuance of a [certificate of] title.
         SECTION 22.  Sections 501.033(a), (b), and (d),
  Transportation Code, are amended to read as follows:
         (a)  A person determined by law enforcement [the department]
  or a court to be the owner of a motor vehicle, a part of a motor
  vehicle, or an item of equipment including a tractor, farm
  implement, unit of special mobile equipment, or unit of off-road
  construction equipment [that has had the serial number removed,
  altered, or obliterated] may apply to the department for an
  assigned vehicle identification number that has been removed,
  altered, or obliterated.
         (b)  An application under this section must be in [on] a
  manner [form] prescribed [and furnished] by the department and
  accompanied by [the certificate of title for the vehicle or other]
  valid evidence of ownership as required by the department [if there
  is no certificate of title].
         (d)  The assigned vehicle identification number shall be
  die-stamped or otherwise affixed [to the motor vehicle, part, or
  item of equipment at the location and] in the manner designated by
  the department.
         SECTION 23.  Section 520.011, Transportation Code, is
  transferred to Subchapter B, Chapter 501, Transportation Code,
  redesignated as Section 501.0331, Transportation Code, and amended
  to read as follows:
         Sec. 501.0331  [520.011].  MOTOR NUMBER REQUIRED FOR
  [VEHICLE] REGISTRATION [;  PENALTY]. [(a)]  A person may not apply
  to the county assessor-collector for the registration of a motor
  vehicle from which the original motor number has been removed,
  erased, or destroyed until the motor vehicle bears the motor number
  assigned by the department.
         [(b)     A person commits an offense if the person violates this
  section. An offense under this subsection is a misdemeanor
  punishable by a fine of not less than $50 and not more than $100.]
         SECTION 24.  Section 520.012, Transportation Code, is
  transferred to Subchapter B, Chapter 501, Transportation Code,
  redesignated as Section 501.0332, Transportation Code, and amended
  to read as follows:
         Sec. 501.0332  [520.012].  APPLICATION FOR MOTOR NUMBER
  RECORD[; RECORD; PENALTY]. (a)  To obtain a motor number assigned
  by the department, the owner of a motor vehicle that has had the
  original motor number removed, erased, or destroyed must file a
  sworn application with the department.
         (b)  The department shall maintain a record of [separate
  register for recording] each motor number assigned by the
  department that includes [. For each motor number assigned by the
  department, the record must indicate]:
               (1)  the motor number assigned by the department;
               (2)  the name and address of the owner of the motor
  vehicle; and
               (3)  the make, model, and year of manufacture of the
  motor vehicle.
         [(c)     A person who fails to comply with this section commits
  an offense. An offense under this subsection is a misdemeanor
  punishable by a fine of not less than $10 and not more than $100.]
         SECTION 25.  Section 501.034, Transportation Code, is
  amended to read as follows:
         Sec. 501.034.  ISSUANCE OF TITLE TO GOVERNMENT AGENCY. The
  department may issue a [certificate of] title to a government
  agency if a vehicle or part of a vehicle is:
               (1)  forfeited to the government agency;
               (2)  delivered by court order under the Code of
  Criminal Procedure to a government agency for official purposes; or
               (3)  sold as abandoned or unclaimed property under the
  Code of Criminal Procedure.
         SECTION 26.  Section 501.035, Transportation Code, is
  amended to read as follows:
         Sec. 501.035.  [CERTIFICATE OF] TITLE FOR FORMER MILITARY
  VEHICLE. (a)  Notwithstanding any other law, the department shall
  issue a [certificate of] title for a former military vehicle [that
  is not registered under the laws of this state] if all [other]
  requirements for issuance of a [certificate of] title are met.
         (b)  In this section, "former military vehicle" has the
  meaning assigned by Section 504.502(i) [502.275(o)].
         SECTION 27.  Section 501.036, Transportation Code, is
  amended to read as follows:
         Sec. 501.036.  [CERTIFICATE OF] TITLE FOR FARM SEMITRAILER.
  (a)  Notwithstanding any other provision of this chapter, the
  department may issue a [certificate of] title for a farm
  semitrailer with a gross weight of more than 4,000 pounds if:
               (1)  the farm semitrailer is eligible for registration
  under Section 502.146 [504.504];  and
               (2)  all other requirements for issuance of a
  [certificate of] title are met.
         (b)  To obtain a [certificate of] title under this section,
  the owner of the farm semitrailer must:
               (1)  apply for the [certificate of] title in the manner
  required by Section 501.023; and
               (2)  pay the fee required by Section 501.138.
         (c)  The department shall adopt rules [and forms] to
  implement and administer this section.
         SECTION 28.  Section 501.051, Transportation Code, is
  amended to read as follows:
         Sec. 501.051.  GROUNDS FOR REFUSAL TO ISSUE OR FOR
  REVOCATION OR SUSPENSION OF TITLE [CERTIFICATE]. (a) A title may
  be refused, canceled, suspended, or revoked by the [The] department
  [shall refuse to issue a certificate of title or shall suspend or
  revoke a certificate of title] if:
               (1)  the application [for the certificate] contains a
  false or fraudulent statement;
               (2)  the applicant failed to furnish required
  information requested by the department;
               (3)  the applicant is not entitled to a [certificate
  of] title;
               (4)  the department has reason to believe that the
  motor vehicle is stolen;
               (5)  the department has reason to believe that the
  issuance of a [certificate of] title would defraud the owner or a
  lienholder of the motor vehicle;
               (6)  the registration for the motor vehicle is
  suspended or revoked; or
               (7)  the required fee has not been paid.
         (b)  The department may rescind, cancel, or revoke an
  application for a title if a notarized affidavit is presented
  containing:
               (1)  a statement that the vehicle involved was a new
  motor vehicle in the process of a first sale;
               (2)  a statement that the dealer, the applicant, and
  any lienholder have canceled the sale;
               (3)  a statement that the vehicle:
                     (A)  was never in the possession of the title
  applicant; or
                     (B)  was in the possession of the title applicant;
  and
               (4)  the signatures of the dealer, the applicant, and
  any lienholder.
         (c)  A rescission, cancellation, or revocation containing
  the statement authorized under Subsection (b)(3)(B) does not negate
  the fact that the vehicle has been the subject of a previous retail
  sale.
         SECTION 29.  The heading to Section 501.052, Transportation
  Code, is amended to read as follows:
         Sec. 501.052.  HEARING ON REFUSAL TO ISSUE OR REVOCATION OR
  SUSPENSION OF [CERTIFICATE OF] TITLE; APPEAL.
         SECTION 30.  Sections 501.052(a), (d), and (e),
  Transportation Code, are amended to read as follows:
         (a)  An interested person aggrieved by a refusal,
  rescission, cancellation, suspension, or revocation under Section
  501.051 may apply for a hearing to the county assessor-collector
  for the county in which the person is a resident [domiciled]. On
  the day an assessor-collector receives the application, the
  assessor-collector shall notify the department of the date of the
  hearing.
         (d)  A determination of the assessor-collector is binding on
  the applicant and the department as to whether the department
  correctly refused to issue or correctly rescinded, canceled, 
  revoked, or suspended the [certificate of] title.
         (e)  An applicant aggrieved by the determination under
  Subsection (d) may appeal to the county court of the county of the
  applicant's residence. An applicant must file an appeal not later
  than the fifth day after the date of the assessor-collector's
  determination. The county court judge shall try the appeal in the
  manner of other civil cases. All rights and immunities granted in
  the trial of a civil case are available to the interested parties.
  If the department's action is not sustained, the department shall
  promptly issue a [certificate of] title for the vehicle.
         SECTION 31.  Section 501.053, Transportation Code, is
  amended by amending Subsections (a), (b), and (d) and adding
  Subsection (e) to read as follows:
         (a)  As an alternative to the procedure provided by Section
  501.052, the person may file a bond with the department. On the
  filing of the bond the person [department] may obtain a [issue the
  certificate of] title.
         (b)  The bond must be:
               (1)  in the manner [form] prescribed by the department;
               (2)  executed by the applicant;
               (3)  issued by a person authorized to conduct a surety
  business in this state;
               (4)  in an amount equal to one and one-half times the
  value of the vehicle as determined by the department, which may set
  an appraisal system by rule if it is unable to determine that value;
  and
               (5)  conditioned to indemnify all prior owners and
  lienholders and all subsequent purchasers of the vehicle or persons
  who acquire a security interest in the vehicle, and their
  successors in interest, against any expense, loss, or damage,
  including reasonable attorney's fees, occurring because of the
  issuance of the [certificate of] title for the vehicle or for a
  defect in or undisclosed security interest on the right, title, or
  interest of the applicant to the vehicle.
         (d)  A bond under this section expires on the third
  anniversary of the date the bond became effective. [The department
  shall return an expired bond to the person who filed the bond unless
  the department has been notified of a pending action to recover on
  the bond.]
         (e)  The board by rule may establish a fee to cover the cost
  of administering this section.
         SECTION 32.  Section 501.071, Transportation Code, is
  amended to read as follows:
         Sec. 501.071.  SALE OF VEHICLE; TRANSFER OF TITLE. (a)
  Except as provided in Section 503.039, a motor vehicle may not be
  the subject of a subsequent sale unless the owner designated on [in]
  the [certificate of] title submits a transfer of ownership of
  [transfers] the [certificate of] title [at the time of the sale].
         (b)  The transfer of the [certificate of] title must be in
  [on] a manner [form] prescribed by the department that [includes a
  statement that]:
               (1)  certifies the purchaser [signer] is the owner of
  the vehicle; and
               (2)  certifies there are no liens on the vehicle or
  provides a release of each lien [except as shown] on the vehicle 
  [certificate of title or as fully described in the statement].
         SECTION 33.  Section 520.022, Transportation Code, is
  transferred to Subchapter D, Chapter 501, Transportation Code,
  redesignated as Section 501.0721, Transportation Code, and amended
  to read as follows:
         Sec. 501.0721  [520.022].  DELIVERY OF RECEIPT AND TITLE TO
  PURCHASER OF USED MOTOR VEHICLE [TRANSFEREE; PENALTY]. [(a)]  A
  person, whether acting for that person or another, who sells,
  trades, or otherwise transfers a used motor vehicle shall deliver
  to the purchaser [transferee] at the time of delivery of the vehicle
  [:
               [(1)     the license receipt issued by the department for
  registration of the vehicle, if the vehicle was required to be
  registered at the time of the delivery; and
               [(2)]  a properly assigned [certificate of] title or
  other evidence of title as required under this chapter [Chapter
  501].
         [(b)     A person commits an offense if the person violates this
  section. An offense under this subsection is a misdemeanor
  punishable by a fine not to exceed $200.]
         SECTION 34.  Sections 501.074(a), (b), and (c),
  Transportation Code, are amended to read as follows:
         (a)  The department shall issue a new [certificate of] title
  for a motor vehicle registered in this state for which the ownership
  is transferred by operation of law [, including by inheritance,
  devise or bequest, bankruptcy, receivership, judicial sale,] or
  other involuntary divestiture of ownership after receiving:
               (1)  a certified copy of an [the] order appointing a
  temporary administrator or of the probate proceedings;
               (2)  letters testamentary or letters of
  administration;
               (3)  if administration of an estate is not necessary,
  an affidavit showing that administration is not necessary,
  identifying all heirs, and including a statement by the heirs of the
  name in which the certificate shall be issued;
               (4)  a court order; or
               (5)  the bill of sale from an officer making a judicial
  sale.
         (b)  If a lien is foreclosed by nonjudicial means, the
  department may issue a new [certificate of] title in the name of the
  purchaser at the foreclosure sale on receiving the affidavit of the
  lienholder of the fact of the nonjudicial foreclosure.
         (c)  If a constitutional or statutory lien is foreclosed, the
  department may issue a new [certificate of] title in the name of the
  purchaser at the foreclosure sale on receiving:
               (1)  the affidavit of the lienholder of the fact of the
  creation of the lien and of the divestiture of title according to
  law; and
               (2)  proof of notice as required by Sections 70.004 and
  70.006, Property Code.
         SECTION 35.  Section 501.076(c), Transportation Code, is
  amended to read as follows:
         (c)  The person named as the agent in the limited power of
  attorney must meet the following requirements:
               (1)  the person may be a person who has been appointed
  by the commissioners [commissioner's] court as a deputy to perform
  vehicle registration functions under Section 520.0091 [502.112], a
  licensed [license] vehicle auction company holding a wholesale
  general distinguishing number under Section 503.022, a person who
  has a permit similar to one of the foregoing that is issued by the
  state in which the owner is located, or another person authorized by
  law to execute title documents in the state in which the owner
  executes the documents; and
               (2)  the person may not be the transferee or an employee
  of the transferee. The person may not act as the agent of both the
  transferor and transferee in the transaction. For the purposes of
  this section, a person is not the agent of both the transferor and
  transferee in a transaction unless the person has the authority to
  sign the documents pertaining to the transfer of title on behalf of
  both the transferor and the transferee.
         SECTION 36.  Section 501.091, Transportation Code, is
  amended by amending Subdivisions (2), (3), (6), (7), (8), (9),
  (10), (12), (14), (15), (16), (17), and (18) and adding
  Subdivisions (10-a) and (16-a) to read as follows:
               (2)  "Casual sale" means the sale by a salvage vehicle
  dealer or an insurance company of five or fewer [not more than five]
  nonrepairable motor vehicles or salvage motor vehicles to the same
  person during a calendar year, but [. The term] does not include:
                     (A)  a sale at auction to a salvage vehicle
  dealer; [or]
                     (B)  a sale to an insurance company, out-of-state
  buyer, or governmental entity; or
                     (C)  the sale of an export-only motor vehicle to a
  person who is not a resident of the United States.
               (3)  "Damage" means sudden damage to a motor vehicle
  caused by the motor vehicle being wrecked, burned, flooded, or
  stripped of major component parts. The term does not include:
                     (A)  gradual damage from any cause;
                     (B)  [,] sudden damage caused by hail;
                     (C)  [, or] any damage caused only to the exterior
  paint of the motor vehicle; or
                     (D)  theft, unless the motor vehicle was damaged
  during the theft and before recovery.
               (6)  "Major component part" means one of the following
  parts of a motor vehicle:
                     (A)  the engine;
                     (B)  the transmission;
                     (C)  the frame;
                     (D)  a fender;
                     (E)  the hood;
                     (F)  a door allowing entrance to or egress from
  the passenger compartment of the motor vehicle;
                     (G)  a bumper;
                     (H)  a quarter panel;
                     (I)  a deck lid, tailgate, or hatchback;
                     (J)  the cargo box of a vehicle with a gross
  vehicle weight of 10,000 pounds or less [one-ton or smaller truck],
  including a pickup truck;
                     (K)  the cab of a truck;
                     (L)  the body of a passenger motor vehicle;
                     (M)  the roof or floor pan of a passenger motor
  vehicle, if separate from the body of the motor vehicle.
               (7)  "Metal recycler" means a person who:
                     (A)  is [predominately] engaged in the business of
  obtaining, converting, or selling ferrous or nonferrous metal [that
  has served its original economic purpose to convert the metal, or
  sell the metal] for conversion[,] into raw material products
  consisting of prepared grades and having an existing or potential
  economic value;
                     (B)  has a facility to convert ferrous or
  nonferrous metal into raw material products [consisting of prepared
  grades and having an existing or potential economic value,] by
  method other than the exclusive use of hand tools, including the
  processing, sorting, cutting, classifying, cleaning, baling,
  wrapping, shredding, shearing, or changing the physical form or
  chemical content of the metal; and
                     (C)  sells or purchases the ferrous or nonferrous
  metal solely for use as raw material in the production of new
  products.
               (8)  "Motor vehicle" has the meaning assigned by
  Section 501.002 [501.002(14)].
               (9)  "Nonrepairable motor vehicle" means a motor
  vehicle that:
                     (A)  is damaged, wrecked, or burned to the extent
  that the only residual value of the vehicle is as a source of parts
  or scrap metal; or
                     (B)  comes into this state under a comparable
  [title or other] ownership document that indicates that the vehicle
  is nonrepairable [, junked, or for parts or dismantling only].
               (10)  "Nonrepairable vehicle title" means a printed
  document issued by the department that evidences ownership of a
  nonrepairable motor vehicle.
               (10-a)  "Nonrepairable record of title" means an
  electronic record of ownership of a nonrepairable motor vehicle.
               (12)  "Out-of-state ownership document" means a
  negotiable document issued by another state or jurisdiction that
  the department considers sufficient to prove ownership of a
  nonrepairable motor vehicle or salvage motor vehicle and to support
  the issuance of a comparable Texas [certificate of] title for the
  motor vehicle. The term does not include any [a] title or
  certificate issued by the department [, including a regular
  certificate of title, a nonrepairable vehicle title, a salvage
  vehicle title, a Texas Salvage Certificate, Certificate of
  Authority to Demolish a Motor Vehicle, or another ownership
  document issued by the department].
               (14)  "Rebuilder" means a person who acquires and
  repairs, rebuilds, or reconstructs for operation on a public
  highway, [three or] more than five salvage motor vehicles in a
  calendar year.
               (15)  "Salvage motor vehicle" [:
                     [(A)] means a motor vehicle that:
                     (A) [(i)]  has damage to or is missing a major
  component part to the extent that the cost of repairs, including
  parts and labor other than the cost of materials and labor for
  repainting the motor vehicle and excluding sales tax on the total
  cost of repairs, exceeds the actual cash value of the motor vehicle
  immediately before the damage; or
                     (B)  [(ii) is damaged and that] comes into this
  state under an out-of-state salvage motor vehicle [certificate of]
  title or similar out-of-state ownership document [that states on
  its face "accident damage," "flood damage," "inoperable,"
  "rebuildable," "salvageable," or similar notation; and
                     [(B) does not include an out-of-state motor
  vehicle with a "rebuilt," "prior salvage," "salvaged," or similar
  notation, a nonrepairable motor vehicle, or a motor vehicle for
  which an insurance company has paid a claim for:
                           [(i) the cost of repairing hail damage; or
                           [(ii) theft, unless the motor vehicle was
  damaged during the theft and before recovery to the extent
  described by Paragraph (A)(i)].
               (16)  "Salvage vehicle title" means a printed document
  issued by the department that evidences ownership of a salvage
  motor vehicle.
               (16-a)  "Salvage record of title" means an electronic
  record of ownership of a salvage motor vehicle.
               (17)  "Salvage vehicle dealer" means a person engaged
  in this state in the business of acquiring, selling, repairing,
  rebuilding, reconstructing, or otherwise dealing in nonrepairable
  motor vehicles, salvage motor vehicles, or, if incidental to a
  salvage motor vehicle dealer's primary business, used automotive
  parts regardless of whether the person holds a license issued by the
  department to engage in that business.  The term does not include an
  unlicensed [a] person who:
                     (A)  casually repairs, rebuilds, or reconstructs
  not more [fewer] than five nonrepairable motor vehicles or salvage
  motor vehicles in the same calendar year [or, except as provided by
  Paragraph (C), a used automotive parts recycler. The term includes
  a person engaged in the business of:
                     [(A)     a salvage vehicle dealer, regardless of
  whether the person holds a license issued by the department to
  engage in that business];
                     (B)  buys not more than five [dealing in]
  nonrepairable motor vehicles or salvage motor vehicles in the same
  calendar year; or
                     (C)  is a licensed used automotive parts recycler
  if the sale of repaired, rebuilt, or reconstructed nonrepairable
  motor vehicles or salvage motor vehicles is more than an incidental
  part of the used automotive parts recycler's business.
               (18)  "Self-insured motor vehicle" means a motor
  vehicle for which the [evidence of ownership is a manufacturer's
  certificate of origin or for which the department or another state
  or jurisdiction has issued a regular certificate of title, is
  self-insured by the] owner [, and is owned by an individual, a
  business,] or a governmental entity assumes full financial
  responsibility for motor vehicle loss claims[,] without regard to
  the number of motor vehicles they own or operate. The term does not
  include a motor vehicle that is insured by an insurance company.
         SECTION 37.  Section 501.098, Transportation Code, is
  redesignated as Section 501.09111, Transportation Code, and
  amended to read as follows:
         Sec. 501.09111 [501.098]. RIGHTS AND LIMITATIONS OF [HOLDER
  OF] NONREPAIRABLE VEHICLE TITLE, NONREPAIRABLE RECORD OF TITLE,
  [OR] SALVAGE VEHICLE TITLE, OR SALVAGE RECORD OF TITLE. (a) A
  person who owns [holds] a nonrepairable [vehicle title for a] motor
  vehicle:
               (1)  is entitled to possess, transport, dismantle,
  scrap, destroy, record a lien as provided for in Section
  501.097(a)(3)(A), and sell, transfer, or release ownership of the
  motor vehicle or a used part from the motor vehicle; and
               (2)  may not:
                     (A)  operate or permit the operation of the motor
  vehicle on a public highway, in addition to any other requirement of
  law;
                     (B)  repair, rebuild, or reconstruct the motor
  vehicle; or
                     (C)  register the motor vehicle.
         (b)  A person who holds a nonrepairable certificate of title
  issued prior to September 1, 2003,[:
               [(1)]  is entitled to the same rights listed in
  Subsection (a) and may [:
                     [(A)]  repair, rebuild, or reconstruct the motor
  vehicle [;
                     [(B)     possess, transport, dismantle, scrap, or
  destroy the motor vehicle; and
                     [(C)     sell, transfer, or release ownership of the
  vehicle or a used part from the motor vehicle; and
               [(2)  may not:
                     [(A)     operate or permit the operation of the motor
  vehicle on a public highway, in addition to any other requirement of
  law; or
                     [(B)  register the motor vehicle].
         (c)  A person who owns [holds] a salvage [vehicle title for
  a] motor vehicle:
               (1)  is entitled to possess, transport, dismantle,
  scrap, destroy, repair, rebuild, reconstruct, record a lien on, and
  sell, transfer, or release ownership of the motor vehicle or a used
  part from the motor vehicle; and
               (2)  may not operate, register, or permit the operation
  of the motor vehicle on a public highway, in addition to any other
  requirement of law.
         SECTION 38.  Section 501.103, Transportation Code, is
  redesignated as Section 501.09112, Transportation Code, and
  amended to read as follows:
         Sec. 501.09112  [501.103]. APPEARANCE [COLOR] OF
  NONREPAIRABLE VEHICLE TITLE OR SALVAGE VEHICLE TITLE. (a) The
  department's printed [department shall print a] nonrepairable
  vehicle title must[:
               [(1)     in a color that distinguishes it from a regular
  certificate of title or salvage vehicle title; and
               [(2)  so that it] clearly indicate [shows] that it is
  the negotiable ownership document for a nonrepairable motor
  vehicle.
         (b)  A nonrepairable vehicle title must clearly indicate 
  [state on its face] that the motor vehicle:
               (1)  may not be:
                     (A)  issued a regular [certificate of] title;
                     (B)  registered in this state; or
                     (C)  repaired, rebuilt, or reconstructed; and
               (2)  may be used only as a source for used parts or
  scrap metal.
         (c)  The department's printed [department shall print a]
  salvage vehicle title must [:
                     [(A)     in a color that distinguishes it from a
  regular certificate of title or nonrepairable vehicle title; and
                     [(B)  so that each document] clearly show [shows]
  that it is the ownership document for a salvage motor vehicle.
         (d)  A salvage vehicle title or a salvage record of title for
  a vehicle that is a salvage motor vehicle because of damage caused
  exclusively by flood must bear a notation [on its face] that the
  department considers appropriate. If the title for a motor vehicle
  reflects the notation required by this subsection, the owner may
  sell, transfer, or release the motor vehicle only as provided by
  this subchapter.
         (e)  An electronic application for a nonrepairable vehicle
  title, nonrepairable record of title, salvage vehicle title, or
  salvage record of title must clearly advise the applicant of the
  same provisions required on a printed title.
         (f)  A nonrepairable vehicle title, nonrepairable record of
  title, salvage vehicle title, or salvage record of title in the
  department's electronic database must include appropriate remarks
  so that the vehicle record clearly shows the status of the vehicle
  [(e)   The department may provide a stamp to a person who is a
  licensed salvage vehicle dealer under Chapter 2302, Occupations
  Code, to mark the face of a title under this subchapter. The
  department shall provide the stamp to the person for a fee in the
  amount determined by the department to be necessary for the
  department to recover the cost of providing the stamp].
         SECTION 39.  Section 501.101, Transportation Code, is
  redesignated as Section 501.09113, Transportation Code, and
  amended to read as follows:
         Sec. 501.09113  [501.101]. OUT-OF-STATE SALVAGE OR REBUILT
  SALVAGE VEHICLE [ISSUANCE OF TITLE TO MOTOR VEHICLE BROUGHT INTO
  STATE]. (a) This section applies only to a motor vehicle brought
  into this state from another state or jurisdiction that has on any
  [certificate of] title or comparable out-of-state ownership
  document issued by the other state or jurisdiction:
               (1)  a "rebuilt," "salvage," or similar notation; or
               (2)  a "nonrepairable," "dismantle only," "parts
  only," "junked," "scrapped," or similar notation.
         (b)  On receipt of a complete application from the owner of
  the motor vehicle, the department shall issue the applicant the
  appropriate [certificate of] title for the motor vehicle.
         [(c)     A certificate of title issued under this section must
  show on its face:
               [(1)  the date of issuance;
               [(2)  the name and address of the owner;
               [(3)     any registration number assigned to the motor
  vehicle; and
               [(4)     a description of the motor vehicle or other
  notation the department considers necessary or appropriate.]
         SECTION 40.  The heading to Section 501.095, Transportation
  Code, is amended to read as follows:
         Sec. 501.095.  SALE, TRANSFER, OR RELEASE [OF NONREPAIRABLE
  MOTOR VEHICLE OR SALVAGE MOTOR VEHICLE].
         SECTION 41.  Sections 501.095(a) and (b), Transportation
  Code, are amended to read as follows:
         (a)  If the department has not issued a nonrepairable vehicle
  title, nonrepairable record of title, [or] salvage vehicle title,
  or salvage record of title for the motor vehicle and a comparable
  [an] out-of-state ownership document for the motor vehicle has not
  been issued by another state or jurisdiction, a business or
  governmental entity described by Subdivisions (1)-(3) may sell,
  transfer, or release a nonrepairable motor vehicle or salvage motor
  vehicle only to a person who is:
               (1)  a licensed salvage vehicle dealer, a used
  automotive parts recycler under Chapter 2309, Occupations Code, or
  a metal recycler under Chapter 2302, Occupations Code;
               (2)  an insurance company that has paid a claim on the
  nonrepairable or salvage motor vehicle; or
               (3)  a governmental entity[; or
               [(4)  an out-of-state buyer].
         (b)  An owner [A person], other than a salvage vehicle
  dealer, a used automotive parts recycler, or an insurance company
  licensed to do business in this state, who acquired ownership of a
  nonrepairable or salvage motor vehicle that has not been issued a
  nonrepairable vehicle title, nonrepairable record of title,
  salvage vehicle title, salvage record of title, or a comparable
  ownership document issued by another state or jurisdiction shall,
  before selling the motor vehicle, surrender the properly assigned
  [certificate of] title for the motor vehicle to the department and
  apply to the department for the appropriate ownership document[:
               [(1)     a nonrepairable vehicle title if the vehicle is a
  nonrepairable motor vehicle; or
               [(2)     a salvage vehicle title if the vehicle is a
  salvage motor vehicle].
         SECTION 42.  Section 501.097, Transportation Code, is
  amended by amending Subsections (a) and (c) and adding Subsection
  (c-1) to read as follows:
         (a)  An application for a nonrepairable vehicle title,
  nonrepairable record of title, [or] salvage vehicle title, or
  salvage record of title must:
               (1)  be made in [on] a manner [form] prescribed by the
  department and accompanied by a $8 application fee;
               (2)  include, in addition to any other information
  required by the department:
                     (A)  the name and current address of the owner;
  and
                     (B)  a description of the motor vehicle, including
  the make, style of body, model year, and vehicle identification
  number[; and
                     [(C)     a statement describing whether the motor
  vehicle:
                           [(i)     was the subject of a total loss claim
  paid by an insurance company under Section 501.092 or 501.093;
                           [(ii)     is a self-insured motor vehicle under
  Section 501.094;
                           [(iii)     is an export-only motor vehicle
  under Section 501.099; or
                           [(iv)     was sold, transferred, or released to
  the owner or former owner of the motor vehicle or a buyer at a casual
  sale]; and
               (3)  include the name and address of:
                     (A)  any currently recorded lienholder, if the
  motor vehicle is a nonrepairable motor vehicle; or
                     (B)  any currently recorded lienholder or a new
  lienholder, if the motor vehicle is a salvage motor vehicle.
         (c)  A printed nonrepairable vehicle title must state on its
  face that the motor vehicle:
               (1)  may not:
                     (A)  be repaired, rebuilt, or reconstructed;
                     (B)  be issued a [regular certificate of] title or
  registered in this state;
                     (C)  be operated on a public highway, in addition
  to any other requirement of law; and
               (2)  may only be used as a source for used parts or
  scrap metal.
         (c-1)  The department's titling system must include a remark
  that clearly identifies the vehicle as a salvage or nonrepairable
  motor vehicle.
         SECTION 43.  Sections 501.100(a), (b), (c), and (f),
  Transportation Code, are amended to read as follows:
         (a)  A vehicle for which a nonrepairable certificate of title
  issued prior to September 1, 2003, or for which a salvage vehicle
  title or salvage record of title has been issued may obtain [be
  issued] a [regular certificate of] title after the motor vehicle
  has been repaired, rebuilt, or reconstructed [by a person described
  by Section 501.104(a)] and, in addition to any other requirement of
  law, only if the application [is accompanied by a separate form
  that]:
               (1)  describes each major component part used to repair
  the motor vehicle;
               (2)  states the name of each person from whom the parts
  used in assembling the vehicle were obtained; and
               (3) [(2)]  shows the identification number required by
  federal law to be affixed to or inscribed on the part.
         (b)  On receipt of a complete application under this section
  accompanied by the [$13] fee for the [certificate of] title, the
  department shall issue the applicant a [regular certificate of]
  title [for the motor vehicle].
         (c)  A [regular certificate of] title issued under this
  section must [:
               [(1)]  describe or disclose the motor vehicle's former
  condition in a manner reasonably understandable to a potential
  purchaser of the motor vehicle [; and
               [(2)     bear on its face the words "REBUILT SALVAGE" in
  capital letters that:
                     [(A)  are red;
                     [(B)     are centered on and occupy at least 15
  percent of the face of the certificate of title; and
                     [(C)     do not prevent any other words on the title
  from being read or copied].
         (f)  The department may not issue a regular [certificate of]
  title for a motor vehicle based on a:
               (1)  nonrepairable vehicle title or comparable
  out-of-state ownership document;
               (2)  receipt issued under Section 501.1003(b)
  [501.096(b)]; or
               (3)  certificate of authority.
         SECTION 44.  Section 501.092, Transportation Code, is
  redesignated as Section 501.1001, Transportation Code, and amended
  to read as follows:
         Sec. 501.1001 [501.092].  [INSURANCE COMPANY TO SURRENDER
  CERTIFICATES OF TITLE TO CERTAIN] SALVAGE MOTOR VEHICLES OR
  NONREPAIRABLE MOTOR VEHICLES FOR INSURANCE COMPANIES OR
  SELF-INSURED PERSONS. (a)  An insurance company that is licensed to
  conduct business in this state and that acquires, through payment
  of a claim, ownership or possession of a salvage motor vehicle or
  nonrepairable motor vehicle covered by a [certificate of] title
  issued by this state or a manufacturer's certificate of origin
  shall surrender a properly assigned title or manufacturer's
  certificate of origin to the department, in [on] a manner [form]
  prescribed by the department, except that not earlier than the 31st
  [46th] day after the date of payment of the claim the insurance
  company may surrender a [certificate of] title, in [on] a manner
  [form] prescribed by the department, and receive a salvage vehicle 
  [certificate of] title or a nonrepairable vehicle [certificate of]
  title without obtaining a properly assigned [certificate of] title
  if the insurance company:
               (1)  has obtained the release of all liens on the motor
  vehicle;
               (2)  is unable to locate one or more owners of the motor
  vehicle; and
               (3)  has provided notice to the last known address in
  the department's records to each owner that has not been located:
                     (A)  by registered or certified mail, return
  receipt requested; or
                     (B)  if a notice sent under Paragraph (A) is
  returned unclaimed, by publication in a newspaper of general
  circulation in the area where the unclaimed mail notice was sent.
         (b)  For a salvage motor vehicle, the insurance company shall
  apply for a salvage vehicle title or salvage record of title. For a
  nonrepairable motor vehicle, the insurance company shall apply for
  a nonrepairable vehicle title or nonrepairable record of title.
         (c)  [An insurance company may not sell a motor vehicle to
  which this section applies unless the department has issued a
  salvage vehicle title or a nonrepairable vehicle title for the
  motor vehicle or a comparable ownership document has been issued by
  another state or jurisdiction for the motor vehicle.
         [(d)     An insurance company may sell a motor vehicle to which
  this section applies, or assign a salvage vehicle title or a
  nonrepairable vehicle title for the motor vehicle, only to a
  salvage vehicle dealer, an out-of-state buyer, a buyer in a casual
  sale at auction, a metal recycler, or a used automotive parts
  recycler. If the motor vehicle is not a salvage motor vehicle or a
  nonrepairable motor vehicle, the insurance company is not required
  to surrender the regular certificate of title for the vehicle or to
  be issued a salvage vehicle title or a nonrepairable vehicle title
  for the motor vehicle.
         [(e)]  An insurance company or other person who acquires
  ownership of a motor vehicle other than a nonrepairable or salvage
  motor vehicle may voluntarily and on proper application obtain a
  salvage vehicle title, salvage record of title, [or a]
  nonrepairable vehicle title, or nonrepairable record of title for
  the vehicle.
         (d)  This subsection applies only to a motor vehicle in this
  state that is a self-insured motor vehicle and that is damaged to
  the extent it becomes a nonrepairable or salvage motor vehicle. The
  owner of a motor vehicle to which this subsection applies shall
  submit to the department before the 31st business day after the date
  of the damage, in a manner prescribed by the department, a statement
  that the motor vehicle was self-insured and damaged. When the owner
  submits a report, the owner shall surrender the ownership document
  and apply for a nonrepairable vehicle title, nonrepairable record
  of title, salvage vehicle title, or salvage record of title.
         SECTION 45.  Section 501.093, Transportation Code, is
  redesignated as Section 501.1002, Transportation Code, and amended
  to read as follows:
         Sec. 501.1002 [501.093].  OWNER-RETAINED [INSURANCE COMPANY
  REPORT ON CERTAIN] VEHICLES. (a)  If an insurance company pays a
  claim on a nonrepairable motor vehicle or salvage motor vehicle and
  the insurance company does not acquire ownership of the motor
  vehicle, the insurance company shall:
               (1)  apply on behalf of the owner for a nonrepairable
  vehicle title, nonrepairable record of title, salvage vehicle
  title, or salvage record of title; or
               (2)  notify the owner of the information contained in:
                     (A)  Subsection (b); or
                     (B)  Section 501.09111; and
               (3)  submit to the department, before the 31st day
  after the date of the payment of the claim, in a manner [on the
  form] prescribed by the department, a report stating that the
  insurance company:
                     (A) [(1)]  has paid a claim on the motor vehicle;
  and
                     (B) [(2)]  has not acquired ownership of the motor
  vehicle.
         (b)  The owner of a motor vehicle to which this section
  applies may not operate or permit operation of the motor vehicle on
  a public highway or transfer ownership of the motor vehicle by sale
  or otherwise unless the department has issued a salvage vehicle
  title, salvage record of title, [or a] nonrepairable vehicle title,
  or nonrepairable record of title for the motor vehicle or a
  comparable ownership document has been issued by another state or
  jurisdiction for the motor vehicle.
         [(c)  Subsection (b) does not apply if:
               [(1)     the department has issued a nonrepairable vehicle
  title or salvage vehicle title for the motor vehicle; or
               [(2)     another state or jurisdiction has issued a
  comparable out-of-state ownership document for the motor vehicle.]
         SECTION 46.  Section 501.096, Transportation Code, is
  redesignated as Section 501.1003, Transportation Code, and amended
  to read as follows:
         Sec. 501.1003 [501.096].  [NONREPAIRABLE MOTOR VEHICLE OR]
  SALVAGE DEALER RESPONSIBILITIES [MOTOR VEHICLE DISMANTLED,
  SCRAPPED, OR DESTROYED]. (a)  If a salvage vehicle dealer acquires
  ownership of a nonrepairable motor vehicle or salvage motor vehicle
  for the purpose of dismantling, scrapping, or destroying the motor
  vehicle, the dealer shall, before the 31st day after the date the
  dealer acquires the motor vehicle, submit to the department a
  report stating that the motor vehicle will be dismantled, scrapped,
  or destroyed. The dealer shall:
               (1)  make the report in a manner [on a form] prescribed
  by the department; and
               (2)  submit with the report a properly assigned
  manufacturer's certificate of origin, regular certificate of
  title, nonrepairable vehicle title, salvage vehicle title, or
  comparable out-of-state ownership document for the motor vehicle.
         (b)  After receiving the report and title or document, the
  department shall issue the salvage vehicle dealer a receipt for the
  manufacturer's certificate of origin, regular certificate of
  title, nonrepairable vehicle title, salvage vehicle title, or
  comparable out-of-state ownership document.
         (c)  The department shall adopt rules to notify the salvage
  [vehicle] dealer if the vehicle was not issued a printed title, but
  has a record of title in the department's titling system [shall:
               [(1)     keep on the business premises of the dealer,
  until the third anniversary of the date the report on the motor
  vehicle is submitted to the department, a record of the vehicle, its
  ownership, and its condition as dismantled, scrapped, or destroyed;
  and
               [(2)     present to the department, on the form prescribed
  by the department, evidence that the motor vehicle was dismantled,
  scrapped, or destroyed before the 61st day after the date the dealer
  completed the dismantling, scrapping, or destruction of the motor
  vehicle].
         SECTION 47.  Section 501.104, Transportation Code, is
  amended to read as follows:
         Sec. 501.104.  REBUILDER TO POSSESS TITLE OR OTHER
  DOCUMENTATION. (a) This section applies [only] to [:
               [(1)  a rebuilder licensed as a salvage vehicle dealer;
               [(2)]  a person engaged in repairing, rebuilding, or
  reconstructing more than five motor vehicles [the business of a
  rebuilder], regardless of whether the person is licensed to engage
  in that business [; or
               [(3)     a person engaged in the casual repair,
  rebuilding, or reconstruction of fewer than three motor vehicles in
  the same 12-month period].
         (b)  A person described by Subsection (a) must possess:
               (1)  an acceptable [a regular certificate of title,
  nonrepairable vehicle title, salvage vehicle title, or comparable
  out-of-state] ownership document or proof of ownership for any
  motor vehicle that is:
                     (A)  owned by the person;
                     (B)  in the person's inventory; and
                     (C)  being offered for resale; or
               (2)  a contract entered into with the owner, a work
  order, or another document that shows the authority for the person
  to possess any motor vehicle that is:
                     (A)  owned by another person;
                     (B)  on the person's business or casual premises;
  and
                     (C)  being repaired, rebuilt, or reconstructed
  for the other person.
         SECTION 48.  Section 501.105, Transportation Code, is
  redesignated as Section 501.108, Transportation Code, and amended
  to read as follows:
         Sec. 501.108  [501.105].  RECORD RETENTION [OF RECORDS
  RELATING TO CERTAIN CASUAL SALES].  (a)  Each licensed salvage
  vehicle dealer, used automotive parts recycler, or insurance
  company that sells a nonrepairable motor vehicle or a salvage motor
  vehicle at a casual sale shall keep on the business premises of the
  dealer or the insurance company a list of all casual sales made
  during the preceding 36-month period that contains:
               (1)  the date of the sale;
               (2)  the name of the purchaser;
               (3)  the name of the jurisdiction that issued the
  identification document provided by the purchaser, as shown on the
  document; and
               (4)  the vehicle identification number.
         (b)  A salvage vehicle dealer or used automotive parts
  recycler shall keep on the business premises of the dealer or
  recycler, until the third anniversary of the date the report on the
  motor vehicle is submitted to the department, a record of the
  vehicle, its ownership, and its condition as dismantled, scrapped,
  or destroyed as required by Section 501.1003.
         SECTION 49.  Section 501.102, Transportation Code, is
  redesignated as Section 501.109, Transportation Code, and amended
  to read as follows:
         Sec. 501.109 [501.102].  OFFENSES. (a)  A person commits an
  offense if the person:
               (1)  applies to the department for a [regular
  certificate of] title for a motor vehicle; and
               (2)  knows or reasonably should know that:
                     (A)  the vehicle is a nonrepairable motor vehicle
  that has been repaired, rebuilt, or reconstructed;
                     (B)  the vehicle identification number assigned
  to the motor vehicle belongs to a nonrepairable motor vehicle that
  has been repaired, rebuilt, or reconstructed;
                     (C)  the title issued to the motor vehicle belongs
  to a nonrepairable motor vehicle that has been repaired, rebuilt,
  or reconstructed;
                     (D)  the vehicle identification number assigned
  to the motor vehicle belongs to an export-only motor vehicle;
                     (E)  the motor vehicle is an export-only motor
  vehicle; or
                     (F)  the motor vehicle is a nonrepairable motor
  vehicle or salvage motor vehicle for which a nonrepairable vehicle
  title, salvage vehicle title, or comparable ownership document
  issued by another state or jurisdiction has not been issued.
         (b)  A person commits an offense if the person knowingly
  sells, transfers, or releases a salvage motor vehicle in violation
  of this subchapter.
         (c)  A person commits an offense if the person knowingly
  fails or refuses to surrender a regular certificate of title after
  the person:
               (1)  receives a notice from an insurance company that
  the motor vehicle is a nonrepairable or salvage motor vehicle; or
               (2)  knows the vehicle has become a nonrepairable motor
  vehicle or salvage motor vehicle under Section 501.1001 [501.094].
         (d)  Except as provided by Subsection (e), an offense under
  this section is a Class C misdemeanor.
         (e)  If it is shown on the trial of an offense under this
  section that the defendant has been previously convicted of:
               (1)  one offense under this section, the offense is a
  Class B misdemeanor; or
               (2)  two or more offenses under this section, the
  offense is a state jail felony.
         SECTION 50.  Section 501.106, Transportation Code, is
  redesignated as Section 501.110, Transportation Code, and amended
  to read as follows:
         Sec. 501.110 [501.106].  ENFORCEMENT OF SUBCHAPTER. (a)  
  This subchapter shall be enforced by the department and any other
  governmental or law enforcement entity, including the Department of
  Public Safety, and the personnel of the entity as provided by this
  subchapter.
         (b)  The department, an agent, officer, or employee of the
  department, or another person enforcing this subchapter is not
  liable to a person damaged or injured by an act or omission relating
  to the issuance or revocation of a [regular certificate of] title,
  nonrepairable vehicle title, nonrepairable record of title, [or]
  salvage vehicle title, or salvage record of title under this
  subchapter.
         SECTION 51.  Section 501.111(a), Transportation Code, is
  amended to read as follows:
         (a)  Except as provided by Subsection (b), a person may
  perfect a security interest in a motor vehicle that is the subject
  of a first or subsequent sale only by recording the security
  interest on the [certificate of] title as provided by this chapter.
         SECTION 52.  Section 501.113, Transportation Code, is
  amended to read as follows:
         Sec. 501.113.  RECORDATION OF SECURITY INTEREST.  (a)  
  Recordation of a lien under this chapter is considered to occur
  when:
               (1)  the department's titling system is updated; or
               (2)  the county assessor-collector [:
               [(1)     is presented with an application for a
  certificate of title that discloses the lien with tender of the
  filing fee; or
               [(2)]  accepts the application of title that discloses
  the lien with the filing fee.
         (b)  For purposes of Chapter 9, Business & Commerce Code, the
  time of recording a lien under this chapter is considered to be the
  time of filing the security interest, and on such recordation, the
  recorded lienholder and assignees under Section 501.114 obtain
  priority over the rights of a lien creditor, as defined by Section
  9.102, Business & Commerce Code, for so long as the lien is recorded
  on the [certificate of] title.
         SECTION 53.  Sections 501.114(b), (d), (e), (f), and (g),
  Transportation Code, are amended to read as follows:
         (b)  An assignee or assignor may, but need not to retain the
  validity, perfection, and priority of the lien assigned, as
  evidence of the assignment of a lien recorded under Section
  501.113:
               (1)  apply  to the county assessor-collector for the
  assignee to be named as lienholder on the [certificate of] title;
  and
               (2)  notify  the debtor of the assignment.
         (d)  An application under Subsection (b) must be
  acknowledged[:
               [(1)  signed] by the assignee[; and
               [(2)  accompanied by:
                     [(A)  the applicable fee;
                     [(B)     a copy of the assignment agreement executed
  by the parties; and
                     [(C)     the certificate of title on which the lien
  to be assigned is recorded].
         (e)  On receipt of the completed application and fee, the
  department may:
               (1)  [may] amend the department's records to substitute
  the assignee for the recorded lienholder; and
               (2)  [shall] issue a new [certificate of] title as
  provided by this chapter [Section 501.027].
         (f)  The issuance of a [certificate of] title under
  Subsection (e) is recordation of the assignment.
         (g)  Regardless of whether application is made for the
  assignee to be named as lienholder on the [certificate of] title,
  the time of the recordation of a lien assigned under this section is
  considered to be the time the lien was initially recorded under
  Section 501.113.
         SECTION 54.  Section 501.115, Transportation Code, is
  amended to read as follows:
         Sec. 501.115.  DISCHARGE OF LIEN. (a) When a debt or claim
  secured by a lien has been satisfied, the lienholder shall, within a
  reasonable time not to exceed the maximum time allowed by Section
  348.408, Finance Code, execute and deliver to the owner, or the
  owner's designee, a discharge of the lien in [on] a manner [form]
  prescribed by the department.
         (b)  The owner may submit [present] the discharge and
  [certificate of] title to the department for [county
  assessor-collector with an application for a new certificate of
  title and the department shall issue] a new [certificate of] title.
         SECTION 55.  Section 501.116, Transportation Code, is
  amended to read as follows:
         Sec. 501.116.  CANCELLATION OF DISCHARGED LIEN. The
  department may cancel a discharged lien that has been recorded on a
  [certificate of] title for 10 [six] years or more if the recorded
  lienholder:
               (1)  does not exist; or
               (2)  cannot be located for the owner to obtain a release
  of the lien.
         SECTION 56.  Sections 501.134(a), (b), (c), (d), and (g),
  Transportation Code, are amended to read as follows:
         (a)  If a printed [certificate of] title is lost or
  destroyed, the owner or lienholder disclosed on the title 
  [certificate] may obtain, in the manner provided by this section
  and department rule, a certified copy of the lost or destroyed
  [certificate of] title directly from the department by applying in
  [on] a manner [form] prescribed by the department and paying a fee
  of $2. A fee collected under this subsection shall be deposited to
  the credit of the state highway fund and may be spent only as
  provided by Section 501.138.
         (b)  If a lien is disclosed on a [certificate of] title, the
  department may issue a certified copy of the original [certificate
  of] title only to the first lienholder or the lienholder's verified
  agent.
         (c)  The department must plainly mark "certified copy" on the
  face of a certified copy issued under this section [, and each
  subsequent certificate issued for the motor vehicle until the
  vehicle is transferred]. A subsequent purchaser or lienholder of
  the vehicle only acquires the rights, title, or interest in the
  vehicle held by the holder of the certified copy.
         (d)  A purchaser or lienholder of a motor vehicle having a
  certified copy issued under this section may at the time of the
  purchase or establishment of the lien require that the seller or
  owner indemnify the purchaser or lienholder and all subsequent
  purchasers of the vehicle against any loss the person may suffer
  because of a claim presented on the original [certificate of]
  title.
         (g)  The department may issue a certified copy of a
  [certificate of] title [before the fourth business day after the
  date application is made] only if the applicant:
               (1)  is the registered owner of the vehicle, the holder
  of a recorded lien against the vehicle, or a verified agent of the
  owner or lienholder; and
               (2)  submits personal identification as required by
  department rule[, including a photograph, issued by an agency of
  this state or the United States].
         SECTION 57.  Section 501.135(a), Transportation Code, is
  amended to read as follows:
         (a)  The department shall:
               (1)  make a record of each report to the department that
  a motor vehicle registered in this state has been stolen or
  concealed in violation of Section 32.33, Penal Code; and
               (2)  note the fact of the report in the department's
  records [of the vehicle's certificate of title].
         SECTION 58.  Sections 501.138(a), (b), and (b-1),
  Transportation Code, are amended to read as follows:
         (a)  An applicant for a [certificate of] title, other than
  the state or a political subdivision of the state, must pay [the
  county assessor-collector] a fee of:
               (1)  $33 if the applicant's residence is a county
  located within a nonattainment area as defined under Section 107(d)
  of the federal Clean Air Act (42 U.S.C. Section 7407), as amended,
  or is an affected county, as defined by Section 386.001, Health and
  Safety Code; or
               (2)  $28 if the applicant's residence is any other
  county.
         (b)  The fees [county assessor-collector] shall be
  distributed as follows [send]:
               (1)  $5 of the fee to the county treasurer for deposit
  in the officers' salary fund;
               (2)  $8 of the fee to the department:
                     (A)  together with the application within the time
  prescribed by Section 501.023; or
                     (B)  if the fee is deposited in an
  interest-bearing account or certificate in the county depository or
  invested in an investment authorized by Subchapter A, Chapter 2256,
  Government Code, not later than the 35th day after the date on which
  the fee is received; and
               (3)  the following amount to the comptroller at the
  time and in the manner prescribed by the comptroller:
                     (A)  $20 of the fee if the applicant's residence
  is a county located within a nonattainment area as defined under
  Section 107(d) of the federal Clean Air Act (42 U.S.C. Section
  7407), as amended, or is an affected county, as defined by Section
  386.001, Health and Safety Code; or
                     (B)  $15 of the fee if the applicant's residence
  is any other county.
         (b-1)  Fees collected under Subsection (b) to be sent to the
  comptroller shall be deposited [as follows:
               [(1)     before September 1, 2008, to the credit of the
  Texas emissions reduction plan fund; and
               [(2)  on or after September 1, 2008,] to the credit of
  the Texas Mobility Fund, except that $5 of each fee imposed under
  Subsection (a)(1) and deposited on or after September 1, 2008, and
  before September 1, 2015, shall be deposited to the credit of the
  Texas emissions reduction plan fund.
         SECTION 59.  Section 520.031, Transportation Code, as
  amended by Chapters 836 (H.B. 1743) and 1423 (H.B. 2409), Acts of
  the 76th Legislature, Regular Session, 1999, is transferred to
  Subchapter H, Chapter 501, Transportation Code, redesignated as
  Section 501.145, Transportation Code, and reenacted and amended to
  read as follows:
         Sec. 501.145 [520.031].  FILING BY PURCHASER [TRANSFEREE];
  APPLICATION FOR TRANSFER OF TITLE [AND REGISTRATION].  (a)  Not
  later than the later of the 30th [20th working] day after the date
  of assignment on [receiving] the documents or the date provided by
  Section 152.069, Tax Code [under Section 520.022 or 520.0225], the
  purchaser [transferee] of the used motor vehicle shall file with
  the county assessor-collector:
               (1)  [the license receipt and] the certificate of title
  or other evidence of title; or
               (2)  if appropriate, a document described by Section
  502.457 [520.0225(b)(1) or (2)] and the [certificate of] title or
  other evidence of ownership [title].
         (b)  The filing under Subsection (a) is an application for
  transfer of title as required under this chapter [Chapter 501] and
  [, if the license receipt is filed,] an application for transfer of
  the registration of the motor vehicle.
         (c)  [In this section, "working day" means any day other than
  a Saturday, a Sunday, or a holiday on which county offices are
  closed.
         [(d)]  Notwithstanding Subsection (a), if the purchaser
  [transferee] is a member of the armed forces of the United States, a
  member of the Texas National Guard or of the National Guard of
  another state serving on active duty under an order of the president
  of the United States, or a member of a reserve component of the
  armed forces of the United States serving on active duty under an
  order of the president of the United States, the documents
  described by Subsection (a) must be filed with the county
  assessor-collector not later than the 60th [working] day after the
  date of assignment of ownership [their receipt by the transferee].
         SECTION 60.  Section 520.032, Transportation Code, is
  transferred to Subchapter H, Chapter 501, Transportation Code,
  redesignated as Section 501.146, Transportation Code, and amended
  to read as follows:
         Sec. 501.146 [520.032].  TITLE TRANSFER [FEE]; LATE FEE.
  (a)  [The transferee of a used motor vehicle shall pay, in addition
  to any fee required under Chapter 501 for the transfer of title, a
  transfer fee of $2.50 for the transfer of the registration of the
  motor vehicle.
         [(b)]  If the [transferee does not file the] application for
  the transfer of title is not filed during the period provided by
  Section 501.145, the [520.031, the transferee is liable for a] late
  fee is to be paid to the county assessor-collector when the
  application is filed.  If the seller [transferee] holds a general
  distinguishing number issued under Chapter 503 of this code or
  Chapter 2301, Occupations Code, the seller is liable for the late
  fee in the amount of [the late fee is] $10.  If the seller
  [transferee] does not hold a general distinguishing number, subject
  to Subsection (b) [(b-1)] the applicant's [amount of the] late fee
  is $25.
         (b) [(b-1)]  If the application is filed after the 60th [31st
  working] day after the date the purchaser was assigned ownership of
  [transferee received] the documents under Section 501.0721
  [520.022], the late fee imposed under Subsection (a) [(b)] accrues
  an additional penalty in the amount of $25 for each subsequent
  30-day period, or portion of a 30-day period, in which the
  application is not filed.
         (c)  [The county assessor-collector and the surety on the
  county assessor-collector's bond are liable for the late fee if the
  county assessor-collector does not collect the late fee.
         [(d)]  Subsections (a) and (b) [and (b-1)] do not apply if
  the motor vehicle is eligible to be issued:
               (1)  classic vehicle license plates under Section
  504.501; or
               (2)  antique vehicle license plates under Section
  504.502.
         SECTION 61.  Section 520.023, Transportation Code, is
  transferred to Subchapter H, Chapter 501, Transportation Code,
  redesignated as Section 501.147, Transportation Code, and amended
  to read as follows:
         Sec. 501.147 [520.023].  [POWERS AND DUTIES OF DEPARTMENT ON
  TRANSFER OF USED] VEHICLE TRANSFER NOTIFICATION. (a)  On receipt of
  a written notice of transfer from the seller [transferor] of a motor
  vehicle, the department shall indicate the transfer on the motor
  vehicle records maintained by the department.  As an alternative to
  a written notice of transfer, the department shall establish
  procedures that permit the seller [transferor] of a motor vehicle
  to electronically submit a notice of transfer to the department
  through the department's Internet website.  A notice of transfer
  provided through the department's Internet website is not required
  to bear the signature of the seller [transferor] or include the date
  of signing.
         (b)  [The department may design the written notice of
  transfer to be part of the certificate of title for the vehicle.]
  The notice of transfer [form] shall be provided by the department
  and must include a place for the seller [transferor] to state:
               (1)  a complete description of the vehicle as
  prescribed by the department [identification number of the
  vehicle];
               (2)  [the number of the license plate issued to the
  vehicle, if any;
               [(3)]  the full name and address of the seller
  [transferor];
               (3) [(4)]  the full name and address of the purchaser
  [transferee];
               (4) [(5)]  the date the seller [transferor] delivered
  possession of the vehicle to the purchaser [transferee];
               (5) [(6)]  the signature of the seller [transferor];
  and
               (6) [(7)]  the date the seller [transferor] signed the
  form.
         (c)  This subsection applies only if the department receives
  notice under Subsection (a) before the 30th day after the date the
  seller [transferor] delivered possession of the vehicle to the
  purchaser or in accordance with Section 152.069, Tax Code
  [transferee].  After the date of the transfer of the vehicle shown
  on the records of the department, the purchaser [transferee] of the
  vehicle shown on the records is rebuttably presumed to be:
               (1)  the owner of the vehicle; and
               (2)  subject to civil and criminal liability arising
  out of the use, operation, or abandonment of the vehicle, to the
  extent that ownership of the vehicle subjects the owner of the
  vehicle to criminal or civil liability under another provision of
  law.
         (d)  The department may adopt[:
               [(1)]  rules to implement this section [; and
               [(2)     a fee for filing a notice of transfer under this
  section in an amount not to exceed the lesser of the actual cost to
  the department of implementing this section or $5].
         (e)  This section does not impose or establish civil or
  criminal liability on the owner of a motor vehicle who transfers
  ownership of the vehicle but does not disclose the transfer to the
  department.
         (f)  [This section does not require the department to issue a
  certificate of title to a person shown on a notice of transfer as
  the transferee of a motor vehicle.] The department may not issue a
  [certificate of] title or register [for] the vehicle until the
  purchaser [transferee] applies for a title to the county
  assessor-collector as provided by this chapter [Chapter 501].
         (g)  A transferor who files the appropriate form with the
  department as provided by, and in accordance with, this section,
  whether that form is a part of a [certificate of] title or a form
  otherwise promulgated by the department to comply with the terms of
  this section, has no vicarious civil or criminal liability arising
  out of the use, operation, or abandonment of the vehicle by another
  person.  Proof by the transferor that the transferor filed a form
  under this section is a complete defense to an action brought
  against the transferor for an act or omission, civil or criminal,
  arising out of the use, operation, or abandonment of the vehicle by
  another person after the transferor filed the form.  A copy of the
  form filed under this section is proof of the filing of the form.
         SECTION 62.  Section 520.033, Transportation Code, is
  transferred to Subchapter H, Chapter 501, Transportation Code,
  redesignated as Section 501.148, Transportation Code, and amended
  to read as follows:
         Sec. 501.148 [520.033].  ALLOCATION OF FEES. (a)  The
  county assessor-collector may retain as commission for services
  provided under this subchapter [half of each transfer fee
  collected,] half of each late fee[, and half of each additional
  penalty collected under Section 520.032].
         (b)  The county assessor-collector shall report and remit
  the balance of the fees collected to the department on Monday of
  each week as other [registration] fees are required to be reported
  and remitted.
         (c)  Of each late fee collected from a person who does not
  hold a general distinguishing number by [that] the department
  [receives] under Subsection (b), $10 may be used only to fund a
  statewide public awareness campaign designed to inform and educate
  the public about the provisions of this chapter.
         SECTION 63.  Section 501.152(b), Transportation Code, is
  amended to read as follows:
         (b)  It is not a violation of this section for the beneficial
  owner of a vehicle to sell or offer to sell a vehicle without having
  possession of the [certificate of] title to the vehicle if the sole
  reason he or she does not have possession of the [certificate of]
  title is that the title is in the possession of a lienholder who has
  not complied with the terms of Section 501.115(a) [of this code].
         SECTION 64.  Section 501.153, Transportation Code, is
  amended to read as follows:
         Sec. 501.153.  APPLICATION FOR TITLE FOR STOLEN OR CONCEALED
  VEHICLE. A person commits an offense if the person applies for a
  [certificate of] title for a motor vehicle that the person knows is
  stolen or concealed in violation of Section 32.33, Penal Code.
         SECTION 65.  Section 501.154, Transportation Code, is
  amended to read as follows:
         Sec. 501.154.  ALTERATION OF CERTIFICATE OR RECEIPT. A
  person commits an offense if the person alters a manufacturer's [or
  importer's] certificate, a title receipt, or a [certificate of]
  title.
         SECTION 66.  Section 501.155(a), Transportation Code, is
  amended to read as follows:
         (a)  A person commits an offense if the person knowingly
  provides false or incorrect information or without legal authority
  signs the name of another person on:
               (1)  an application for a [certificate of] title;
               (2)  an application for a certified copy of an original
  [certificate of] title;
               (3)  an assignment of title for a motor vehicle;
               (4)  a discharge of a lien on a title for a motor
  vehicle; or
               (5)  any other document required by the department or
  necessary to the transfer of ownership of a motor vehicle.
         SECTION 67.  The heading to Section 501.158, Transportation
  Code, is amended to read as follows:
         Sec. 501.158.  SEIZURE OF STOLEN VEHICLE OR VEHICLE WITH
  ALTERED VEHICLE IDENTIFICATION [SERIAL] NUMBER.
         SECTION 68.  Section 520.035, Transportation Code, is
  transferred to Subchapter H, Chapter 501, Transportation Code,
  redesignated as Section 501.161, Transportation Code, and amended
  to read as follows:
         Sec. 501.161 [520.035].  EXECUTION OF TRANSFER DOCUMENTS;
  PENALTY. (a)  A person who transfers a motor vehicle in this state
  shall complete [execute] in full and date as of the date of the
  transfer all documents relating to the transfer of registration or
  [certificate of] title. A person who transfers a vehicle commits an
  offense if the person fails to execute the documents in full.
         (b)  A person commits an offense if the person:
               (1)  accepts a document described by Subsection (a)
  that does not contain all of the required information; or
               (2)  alters or mutilates such a document.
         (c)  An offense under this section is a misdemeanor
  punishable by a fine of not less than $50 and not more than $200.
         SECTION 69.  Subchapter H, Chapter 501, Transportation Code,
  is amended by adding Sections 501.162 and 501.163 to read as
  follows:
         Sec. 501.162. MOTOR NUMBER REQUIRED FOR REGISTRATION;
  PENALTY. A person commits an offense if the person violates Section
  501.0331. An offense under this section is a misdemeanor
  punishable by a fine of not less than $50 and not more than $100.
         Sec. 501.163.  APPLICATION FOR MOTOR NUMBER RECORD; PENALTY.  
  A person who fails to comply with Section 501.0332 commits an
  offense. An offense under this section is a misdemeanor punishable
  by a fine of not less than $10 and not more than $100.
         SECTION 70.  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 in an amount not to exceed the amount of the charges
  incurred by the department to process the payment.
         (c)  The department may collect the fee set under Section
  2054.2591, Government Code, from a person making a payment by
  electronic funds transfer, credit card, or debit card through the
  online project implemented under Section 2054.252, Government
  Code.
         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 71.  Section 502.001, Transportation Code, is
  amended to read as follows:
         Sec. 502.001.  DEFINITIONS. In this chapter:
               (1)  "All-terrain vehicle" means a motor vehicle that
  is:
                     (A)  equipped with a saddle for the use of:
                           (i)  the rider; and
                           (ii)  a passenger, if the motor vehicle is
  designed by the manufacturer to transport a passenger;
                     (B)  designed to propel itself with three or more
  tires in contact with the ground;
                     (C)  designed by the manufacturer for off-highway
  use; and
                     (D)  not designed by the manufacturer primarily
  for farming or lawn care.
               (2)  "Apportioned license plate" means a license plate
  issued in lieu of a truck license plate or combination license plate
  to a motor carrier in this state who proportionally registers a
  vehicle owned or leased by the carrier in one or more other states.
               (3) [(1-a)]  "Board" means the board of the Texas
  Department of Motor Vehicles.
               (4)  "Combination license plate" means a license plate
  issued for a truck or truck-tractor that is used or intended to be
  used in combination with a semitrailer that has a gross weight of
  more than 6,000 pounds.
               (5)  "Combined gross weight" means the empty weight of
  the truck-tractor or commercial motor vehicle combined with the
  empty weight of the heaviest semitrailer used or to be used in
  combination with the truck-tractor or commercial motor vehicle plus
  the heaviest net load to be carried on the combination during the
  registration year.
               (6) [(1-a)]  "Commercial fleet" means a group of at
  least 25 nonapportioned motor vehicles, semitrailers, or trailers
  owned, operated, or leased by a corporation, limited or general
  partnership, limited liability company, or other business entity
  and used for the business purposes of that entity.
               (7) [(2)]  "Commercial motor vehicle" means a
  commercial motor vehicle as defined by Section 644.001[, other than
  a motorcycle, designed or used primarily to transport property.
  The term includes a passenger car reconstructed and used primarily
  for delivery purposes. The term does not include a passenger car
  used to deliver the United States mail].
               (8)  "Construction machinery" means a vehicle that:
                     (A)  is used for construction;
                     (B)  is built from the ground up;
                     (C)  is not mounted or affixed to another vehicle
  such as a trailer;
                     (D)  was originally and permanently designed as
  machinery;
                     (E)  was not in any way originally designed to
  transport persons or property; and
                     (F)  does not carry a load, including fuel.
               (9)  "Credit card" has the meaning assigned by Section
  501.002.
               (10)  "Debit card" has the meaning assigned by Section
  501.002.
               (11) [(3)]  "Department" means the Texas Department of
  Motor Vehicles.
               (12)  "Electric bicycle" has the meaning assigned by
  Section 541.201.
               (13)  "Electric personal assistive mobility device"
  has the meaning assigned by Section 551.201.
               (14)  "Empty weight" means the unladen weight of a
  truck-tractor or commercial motor vehicle and semitrailer
  combination fully equipped, as certified by a public weigher or
  license and weight inspector of the Department of Public Safety.
               (15) [(4)]  "Farm semitrailer" or "farm trailer" means
  a vehicle [semitrailer] designed and used primarily as a farm
  vehicle.
               (16) [(5)]  "Farm tractor" has the meaning assigned by
  Section 541.201 [means a motor vehicle designed and used primarily
  as a farm implement for drawing other implements of husbandry].
               (17)  "Forestry vehicle" [(6) "Farm trailer"] means a
  vehicle [trailer] designed and used exclusively for transporting
  forest products in their natural state, including logs, debarked
  logs, untreated ties, stave bolts, plywood bolts, pulpwood billets,
  wood chips, stumps, sawdust, moss, bark, and wood shavings, and
  property used in production of those products [primarily as a farm
  vehicle].
               (18) [(7)]  "Golf cart" means a motor vehicle designed
  by the manufacturer primarily for use [transporting persons] on a
  golf course.
               (19)  "Gross vehicle weight" has the meaning assigned
  by Section 541.401.
               (20) [(8)]  "Implements of husbandry" has the meaning
  assigned by Section 541.201 [means farm implements, machinery, and
  tools as used in tilling the soil, including self-propelled
  machinery specifically designed or adapted for applying plant food
  materials or agricultural chemicals but not specifically designed
  or adapted for the sole purpose of transporting the materials or
  chemicals. The term does not include a passenger car or truck].
               (21) [(9)]  "Light truck" has the meaning assigned by
  Section 541.201 [means a commercial motor vehicle that has a
  manufacturer's rated carrying capacity of one ton or less].
               (22) [(10)]  "Moped" has the meaning assigned by
  Section 541.201.
               (23) [(11)]  "Motor bus" includes every vehicle used to
  transport persons on the public highways for compensation, other
  than:
                     (A)  a vehicle operated by muscular power; or
                     (B)  a municipal bus.
               (24) [(12)]  "Motorcycle" has the meaning assigned by
  Section 521.001 or 541.201, as applicable [means a motor vehicle
  designed to propel itself with not more than three wheels in contact
  with the ground. The term does not include a tractor].
               (25) [(13)]  "Motor vehicle" means a vehicle that is
  self-propelled.
               (26)  "Motorized mobility device" has the meaning
  assigned by Section 542.009.
               (27) [(14)]  "Municipal bus" includes every vehicle,
  other than a passenger car, used to transport persons for
  compensation exclusively within the limits of a municipality or a
  suburban addition to the municipality.
               (28)  "Net carrying capacity" means the heaviest net
  load that is able to be carried on a vehicle, but not less than the
  manufacturer's rated carrying capacity.
               (29)  "Oil well servicing, cleanout, or drilling
  machinery":
                     (A)  has the meaning assigned by Section 623.149;
  or
                     (B)  means a mobile crane:
                           (i)  that is an unladen, self-propelled
  vehicle constructed as a machine and used solely to raise, shift, or
  lower heavy weights by means of a projecting, swinging mast with an
  engine for power on a chassis permanently constructed or assembled
  for that purpose; and
                           (ii)  for which the owner has secured a
  permit from the department under Section 623.142.
               (30) [(15)]  "Operate temporarily on the highways"
  means to travel between:
                     (A)  different farms;
                     (B)  a place of supply or storage and a farm; or
                     (C)  an owner's farm and the place at which the
  owner's farm produce is prepared for market or is marketed.
               (31) [(16)]  "Owner" means a person who:
                     (A)  holds the legal title of a vehicle;
                     (B)  has the legal right of possession of a
  vehicle; or
                     (C)  has the legal right of control of a vehicle.
               (32) [(17)]  "Passenger car" has the meaning assigned
  by Section 541.201 [means a motor vehicle, other than a motorcycle,
  golf cart, light truck, or bus, designed or used primarily for the
  transportation of persons].
               (33)  "Power sweeper" means an implement, with or
  without motive power, designed for the removal by a broom, vacuum,
  or regenerative air system of debris, dirt, gravel, litter, or sand
  from asphaltic concrete or cement concrete surfaces, including
  surfaces of parking lots, roads, streets, highways, and warehouse
  floors. The term includes a vehicle on which the implement is
  permanently mounted if the vehicle is used only as a power sweeper.
               (34)  "Private bus" means a bus that:
                     (A)  is not operated for hire; and
                     (B)  is not a municipal bus or a motor bus.
               (35) [(18)]  "Public highway" includes a road, street,
  way, thoroughfare, or bridge:
                     (A)  that is in this state;
                     (B)  that is for the use of vehicles;
                     (C)  that is not privately owned or controlled;
  and
                     (D)  over which the state has legislative
  jurisdiction under its police power.
               (36) [(19)]  "Public property" means property owned or
  leased by this state or a political subdivision of this state.
               (37) [(19-a)]  "Recreational off-highway vehicle"
  means a motor vehicle that is:
                     (A)  equipped with a non-straddle seat for the use
  of:
                           (i)  the rider; and
                           (ii)  a passenger, if the vehicle is
  designed by the manufacturer to transport a passenger;
                     (B)  designed to propel itself with four or more
  tires in contact with the ground;
                     (C)  designed by the manufacturer for off-highway
  use by the operator only; and
                     (D)  not designed by the manufacturer primarily
  for farming or lawn care.
               (38) [(20)]  "Road tractor" means a vehicle designed
  for the purpose of mowing the right-of-way of a public highway or a
  motor vehicle designed or used for drawing another vehicle or a load
  and not constructed to carry:
                     (A)  an independent load; or
                     (B)  a part of the weight of the vehicle and load
  to be drawn.
               (39) [(21)]  "Semitrailer" means a vehicle designed or
  used with a motor vehicle so that part of the weight of the vehicle
  and its load rests on or is carried by another vehicle.
               (40)  "Token trailer" means a semitrailer that:
                     (A)  has a gross weight of more than 6,000 pounds;
  and
                     (B)  is operated in combination with a truck or a
  truck-tractor that has been issued:
                           (i)  an apportioned license plate;
                           (ii)  a combination license plate; or
                           (iii)  a forestry vehicle license plate.
               (41)  "Tow truck" means a motor vehicle adapted or used
  to tow, winch, or otherwise move another motor vehicle.
               (42) [(22)]  "Trailer" means a vehicle that:
                     (A)  is designed or used to carry a load wholly on
  its own structure; and
                     (B)  is drawn or designed to be drawn by a motor
  vehicle.
               (43)  "Travel trailer" has the meaning assigned by
  Section 501.002.
               (44) [(23)]  "Truck-tractor" means a motor vehicle:
                     (A)  designed and used primarily for drawing
  another vehicle; and
                     (B)  not constructed to carry a load other than a
  part of the weight of the vehicle and load to be drawn.
               (45) [(24)]  "Vehicle" means a device in or by which a
  person or property is or may be transported or drawn on a public
  highway, other than a device used exclusively on stationary rails
  or tracks.
         SECTION 72.  Section 502.0021, Transportation Code, is
  amended to read as follows:
         Sec. 502.0021.  RULES AND FORMS.  (a)  The department may
  adopt rules to administer this chapter.
         (b)  The department shall post forms on the Internet and[:
               [(1)     prescribe forms determined by the department to
  be necessary for the administration of this chapter; and
               [(2)]  provide each county assessor-collector with a
  sufficient [an adequate] supply of any [each form] necessary forms
  on request [for the performance of a duty under this chapter by the
  assessor-collector].
         SECTION 73.  Section 502.052, Transportation Code, is
  transferred to Subchapter A, Chapter 502, Transportation Code,
  redesignated as Section 502.00211, Transportation Code, and
  amended to read as follows:
         Sec. 502.00211 [502.052].  DESIGN OF [LICENSE PLATES AND]
  REGISTRATION INSIGNIA[; REFLECTORIZED MATERIAL]. [(a)] The
  department shall prepare the designs and specifications [of license
  plates and devices selected by the board] to be used as the
  registration insignia.
         [(b)     The department shall design each license plate to
  include a design at least one-half inch wide that represents in
  silhouette the shape of Texas and that appears between letters and
  numerals. The department may omit the silhouette of Texas from
  specially designed license plates.
         [(c)     To promote highway safety, each license plate shall be
  made with a reflectorized material that provides effective and
  dependable brightness for the period for which the plate is
  issued.     The purchase of reflectorized material shall be submitted
  to the comptroller for approval.]
         SECTION 74.  The heading to Section 502.0023, Transportation
  Code, is amended to read as follows:
         Sec. 502.0023.  EXTENDED REGISTRATION OF COMMERCIAL FLEET
  [MOTOR] VEHICLES.
         SECTION 75.  Section 502.0023, Transportation Code, is
  amended by amending Subsections (a) and (c) and adding Subsection
  (i) to read as follows:
         (a)  Notwithstanding Section 502.044(c) [502.158(c)], the
  department shall develop and implement a system of registration to
  allow an owner of a commercial fleet to register the motor vehicles,
  semitrailers, and trailers in the commercial fleet for an extended
  registration period of not less than one year or more than eight
  years.  The owner may select the number of years for registration
  under this section within that range and register the commercial
  fleet for that period.  Payment for all registration fees for the
  entire registration period selected is due at the time of
  registration.
         (c)  In addition to the registration fees prescribed by this
  chapter [Subchapter D], an owner registering a commercial fleet
  under this section shall pay:
               (1)  an annual commercial fleet registration fee of $10
  per motor vehicle, semitrailer, or trailer in the fleet; and
               (2)  except as provided by Subsection (e), a one-time
  license plate manufacturing fee of $1.50 for each fleet motor
  vehicle, semitrailer, or trailer license plate.
         (i)  The department may provide for credits for fleet
  registration.
         SECTION 76.  Section 502.185, Transportation Code, is
  transferred to Subchapter A, Chapter 502, Transportation Code,
  redesignated as Section 502.010, Transportation Code, and amended
  to read as follows:
         Sec. 502.010 [502.185].  COUNTY SCOFFLAW [REFUSAL TO
  REGISTER VEHICLE IN CERTAIN COUNTIES]. (a)  A county
  assessor-collector or the department may refuse to register a motor
  vehicle if the assessor-collector or the department receives
  information that the owner of the vehicle owes the county money for
  a fine, fee, or tax that is past due.
         (b)  A county may contract with the department to provide
  information to the department necessary to make a determination
  under Subsection (a).
         (c)  A county that has a contract under Subsection (b) shall
  notify the department regarding a person for whom the county
  assessor-collector or the department has refused to register a
  motor vehicle on:
               (1)  the person's payment or other means of discharge of
  the past due fine, fee, or tax; or
               (2)  perfection of an appeal of the case contesting
  payment of the fine, fee, or tax.
         (d)  After notice is received under Subsection (c), the
  county assessor-collector or the department may not refuse to
  register the motor vehicle under Subsection (a).
         (e)  A contract under Subsection (b) must be entered into in
  accordance with Chapter 791, Government Code, and is subject to the
  ability of the parties to provide or pay for the services required
  under the contract.
         (f)  A county that has a contract under Subsection (b) may
  impose an additional fee to a person paying a fine, fee, or tax to
  the county after it is past due. The additional fee may be used only
  to reimburse the department or the county for its expenses for
  providing services under the contract.
         (g)  In this section:
               (1)  a fine, fee, or tax is considered past due if it is
  unpaid 90 or more days after the date it is due; and
               (2)  registration of a motor vehicle includes renewal
  of the registration of the vehicle.
         (h)  This section does not apply to the registration of a
  motor vehicle under Section 501.0234, unless the vehicle is titled
  and registered in the name of a person who holds a general
  distinguishing number.
         SECTION 77.  The heading to Subchapter B, Chapter 502,
  Transportation Code, is amended to read as follows:
  SUBCHAPTER B. REGISTRATION REQUIREMENTS [STATE ADMINISTRATION]
         SECTION 78.  Section 502.002, Transportation Code, is
  transferred to Subchapter B, Chapter 502, Transportation Code,
  redesignated as Section 502.040, Transportation Code, and amended
  to read as follows:
         Sec. 502.040 [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 79.  Section 502.157, Transportation Code, is
  transferred to Subchapter B, Chapter 502, Transportation Code,
  redesignated as Section 502.041, Transportation Code, and amended
  to read as follows:
         Sec. 502.041 [502.157].  INITIAL REGISTRATION.  (a)  
  Notwithstanding Section 502.040 [502.002], [when a motor vehicle
  must be registered before an application for a certificate of title
  will be accepted,] the owner of a [the] vehicle may concurrently
  apply for a [certificate of] title and for registration through the
  county assessor-collector of the county in which:
               (1)  the owner resides; or
               (2)  the vehicle is purchased or encumbered.
         (b)  The first time an owner applies for registration of a
  vehicle, the owner may demonstrate compliance with Section
  502.046(a) [502.153(a)] as to the vehicle by showing proof of
  financial responsibility in any manner specified in Section
  502.046(c) [502.153(c)] as to:
               (1)  any vehicle of the owner; or
               (2)  any vehicle used as part of the consideration for
  the purchase of the vehicle the owner applies to register.
         SECTION 80.  Section 502.152, Transportation Code, is
  transferred to Subchapter B, Chapter 502, Transportation Code,
  redesignated as Section 502.042, Transportation Code, and amended
  to read as follows:
         Sec. 502.042 [502.152].  [CERTIFICATE OF] TITLE REQUIRED
  FOR REGISTRATION.  [(a)]  The department may not register or renew
  the registration of a motor vehicle for which a [certificate of]
  title is required under Chapter 501 unless the owner:
               (1)  obtains a [certificate of] title for the vehicle;
  or
               (2)  presents satisfactory evidence that a
  [certificate of] title was previously issued to the owner by the
  department or another jurisdiction.
         [(b)     This section does not apply to an automobile that was
  purchased new before January 1, 1936.]
         SECTION 81.  Section 502.151, Transportation Code, is
  transferred to Subchapter B, Chapter 502, Transportation Code,
  redesignated as Section 502.043, Transportation Code, and amended
  to read as follows:
         Sec. 502.043 [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, family member,
  corporate officer, or shareholder;
               (2)  has a vehicle that has been prohibited from
  operating by the Federal Motor Carrier Safety Administration for
  safety-related reasons;
               (3)  is a carrier whose business is operated, managed,
  or otherwise controlled or affiliated with a person who is
  ineligible for registration, including the owner, a relative, a
  family member, a corporate officer, or a shareholder; or
               (4)  fails to [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 82.  Section 502.158, Transportation Code, is
  transferred to Subchapter B, Chapter 502, Transportation Code,
  redesignated as Section 502.044, Transportation Code, and amended
  to read as follows:
         Sec. 502.044 [502.158].  REGISTRATION PERIOD [YEAR].  (a)  
  The department shall designate a vehicle registration year of 12
  consecutive months to begin on the first day of a calendar month and
  end on the last day of the 12th calendar month.
         (b)  The department shall designate vehicle registration
  years so as to distribute the work of the department and the county
  assessor-collectors as uniformly as possible throughout the year.
  The department may establish separate registration years for any
  vehicle or classification of vehicle and may adopt rules to
  administer the year-round registration system.
         (c)  The department may designate a registration period of
  less than 12 months to be [. The registration fee for a
  registration period of less than 12 months is] computed at a rate of
  one-twelfth the annual registration fee multiplied by the number of
  months in the registration period. The board by rule may allow
  payment of [department may not designate a registration period of
  more than 12 months, but:
               [(1)     with the consent of the department, an owner may
  pay] registration fees for a designated period not to exceed the
  amount of time determined by department rule [of more than 12
  months; and
               [(2)     an owner of a vehicle may pay registration fees
  for a designated period of 12, 24, or 36 months.
         [(d)     An application for registration shall be made during
  the two months preceding the date on which the registration
  expires.
         [(e)     The fee to be paid for renewing a registration is the
  fee that will be in effect on the first day of the vehicle
  registration year].
         (d) [(g)]  The department shall issue [the applicant for
  registration who pays registration fees for a designated period of
  24 or 36 months] a registration receipt and registration insignia
  that are valid until the expiration of the designated period.
         SECTION 83.  Section 502.176, Transportation Code, is
  transferred to Subchapter B, Chapter 502, Transportation Code,
  redesignated as Section 502.045, Transportation Code, and amended
  to read as follows:
         Sec. 502.045 [502.176].  DELINQUENT REGISTRATION.  (a)  A
  registration fee [prescribed by this chapter] for a vehicle becomes
  delinquent immediately if the vehicle is used on a public highway
  without the fee having been paid in accordance with this chapter.
         (b)  An [A county assessor-collector that determines that
  an] applicant for registration who provides [for which payment of
  the registration fee is delinquent has provided] evidence
  [acceptable to the assessor-collector sufficient] to establish
  good reason for delinquent registration and who [that the
  application] complies with the other requirements for registration
  under this chapter may [shall] register the vehicle for a 12-month
  period that ends on the last day of the 11th month after the month in
  which the registration occurs under this subsection. [The
  registration period for vehicles registered in accordance with
  Sections 502.164, 502.167, 502.203, 502.255, 502.267, 502.277,
  502.278, 502.293, as added by Chapter 1222, Acts of the 75th
  Legislature, Regular Session, 1997, and 502.295, as added by
  Chapter 625, Acts of the 75th Legislature, Regular Session, 1997,
  will end on the annual registration date, and the registration fees
  will be prorated.]
         (c)  An [A county assessor-collector that determines that
  an] applicant for registration who [that] is delinquent and has not
  provided evidence acceptable [to the assessor-collector
  sufficient] to establish good reason for delinquent registration
  but who [that the application] complies with the other requirements
  for registration under this chapter shall register the vehicle for
  a 12-month period without changing the initial month of
  registration.
         (d)  A person who has been arrested or received a citation
  for a violation of Section 502.472 [502.402] may register the
  vehicle being operated at the time of the offense [with the county
  assessor-collector] for a 12-month period without change to the
  initial month of registration only if the person:
               (1)  meets the other requirements for registration
  under this chapter; and
               (2)  pays an additional charge equal to 20 percent of
  the prescribed fee.
         (e)  The board by rule [county assessor-collector] shall
  adopt a list of evidentiary items sufficient to establish good
  reason for delinquent registration under Subsection (b) and provide
  for the [forms of] evidence that may be used to establish good
  reason under that subsection. [The list of evidentiary items
  adopted under this section must allow for delinquent registration
  under Subsection (b) because of:
               [(1)  extensive repairs on the vehicle;
               [(2)     the absence of the owner of the vehicle from this
  country;
               [(3)  seasonal use of the vehicle; or
               [(4)     any other reason determined by the
  assessor-collector to be a valid explanation for the delinquent
  registration.]
         (f)  The board [department] by rule shall adopt procedures to
  implement this section in connection with the delinquent
  registration of a vehicle registered directly with the department
  or through other means.
         SECTION 84.  Section 502.153, Transportation Code, is
  transferred to Subchapter B, Chapter 502, Transportation Code,
  redesignated as Section 502.046, Transportation Code, and amended
  to read as follows:
         Sec. 502.046 [502.153].  EVIDENCE OF FINANCIAL
  RESPONSIBILITY. (a)  Evidence [Except as provided by Subsection
  (j), the owner of a motor vehicle, other than a trailer or
  semitrailer, for which evidence] of financial responsibility as
  [is] required by Section 601.051 other than for a trailer or
  semitrailer [or a person who represents the owner for purposes of
  registering a motor vehicle] shall be submitted [submit evidence of
  financial responsibility] with the application for registration
  under Section 502.043 [502.151]. A county assessor-collector may
  not register the motor vehicle unless the owner or the owner's
  representative submits the evidence of financial responsibility.
         (b)  The county assessor-collector shall examine the
  evidence of financial responsibility to determine whether it
  complies with Subsection (c). After examination, [examining] the
  evidence [, the assessor-collector] shall be returned [return the
  evidence] unless it is in the form of a photocopy or an electronic
  submission.
         (c)  In this section, evidence of financial responsibility
  may be:
               (1)  a document listed under Section 601.053(a) or
  verified in compliance with Section 601.452;
               (2)  a liability self-insurance or pool coverage
  document issued by a political subdivision or governmental pool
  under the authority of Chapter 791, Government Code, Chapter 119,
  Local Government Code, or other applicable law in at least the
  minimum amounts required by Chapter 601;
               (3)  a photocopy of a document described by Subdivision
  (1) or (2); or
               (4)  an electronic submission of a document or the
  information contained in a document described by Subdivision (1) or
  (2).
         (d)  A personal automobile policy used as evidence of
  financial responsibility under this section must comply with
  Section 1952.052 et seq. and Sections 2301.051 through 2301.055
  [Article 5.06 or 5.145], Insurance Code.
         (e)  At the time of registration, the county
  assessor-collector shall provide to a person registering a motor
  vehicle a [separate] statement that the motor vehicle [being
  registered] may not be operated in this state unless:
               (1)  liability insurance coverage for the motor vehicle
  in at least the minimum amounts required by law remains in effect to
  insure against potential losses; or
               (2)  the motor vehicle is exempt from the insurance
  requirement because the person has established financial
  responsibility in a manner described by Sections [Section]
  601.051(2)-(5) or is exempt under Section 601.052.
         (f)  A county assessor-collector is not liable to any person
  for refusing to register a motor vehicle to which this section
  applies because of the person's failure to submit evidence of
  financial responsibility that complies with Subsection (c).
         (g)  A county, a county assessor-collector, a deputy county
  assessor-collector, a person acting for or on behalf of a county or
  a county assessor-collector, or a person acting on behalf of an
  owner for purposes of registering a motor vehicle is not liable to
  any person for registering a motor vehicle under this section.
         (h)  This section does not prevent a person from registering
  a motor vehicle by mail or through an electronic submission.
         (i)  To be valid under this section, an electronic submission
  must be in a format that is:
               (1)  submitted by electronic means, including a
  telephone, facsimile machine, or computer;
               (2)  approved by the department; and
               (3)  authorized by the commissioners court for use in
  the county.
         (j)  This section does not apply to a vehicle registered
  pursuant to Section 501.0234.
         SECTION 85.  Section 502.009, Transportation Code, is
  transferred to Subchapter B, Chapter 502, Transportation Code,
  redesignated as Section 502.047, Transportation Code, and amended
  to read as follows:
         Sec. 502.047 [502.009].  MOTOR VEHICLE EMISSIONS INSPECTION
  AND MAINTENANCE REQUIREMENTS. (a)  The Department of Public Safety
  shall ensure compliance with the motor vehicle emissions inspection
  and maintenance program through a vehicle inspection sticker-based
  enforcement system except as provided by this section or Section
  548.3011. Subsections (b)-(e) apply only if the United States
  Environmental Protection Agency determines that the state has not
  demonstrated, as required by 40 C.F.R. Section 51.361, that
  sticker-based enforcement of the program is more effective than
  registration-based enforcement and gives the Texas [Natural
  Resource Conservation] Commission on Environmental Quality or the
  governor written notification that the reregistration-based
  enforcement of the program, as described by those subsections, will
  be required. If Subsections (b)-(e) are made applicable as
  provided by this subsection, the department shall terminate
  reregistration-based enforcement of the program under those
  subsections on the date the United States Environmental Protection
  Agency gives the Texas [Natural Resource Conservation] Commission
  on Environmental Quality or a person the commission designates
  written notification that reregistration-based enforcement is not
  required for the state implementation plan.
         (b)  A [The department may not register a] motor vehicle may
  not be registered if the department receives from the Texas
  [Natural Resource Conservation] Commission on Environmental
  Quality or the Department of Public Safety notification that the
  registered owner of the vehicle has not complied with Subchapter F,
  Chapter 548.
         (c)  A motor vehicle [The county tax assessor-collector] may
  not be registered if the [register a] vehicle was denied
  registration under Subsection (b) unless [the tax
  assessor-collector has] verification is received that the
  registered vehicle owner is in compliance with Subchapter F,
  Chapter 548.
         (d)  The department, the Texas [Natural Resource
  Conservation] Commission on Environmental Quality, and the
  Department of Public Safety shall enter an agreement regarding the
  responsibilities for costs associated with implementing this
  section.
         (e)  A county tax assessor-collector is not liable to any
  person for refusing to register a motor vehicle because of the
  person's failure to provide verification of the person's compliance
  with Subchapter F, Chapter 548.
         SECTION 86.  Section 502.005, Transportation Code, is
  transferred to Subchapter B, Chapter 502, Transportation Code,
  redesignated as Section 502.048, Transportation Code, and amended
  to read as follows:
         Sec. 502.048 [502.005].  REFUSAL TO REGISTER UNSAFE
  VEHICLE. [(a)]  The department may refuse to register a motor
  vehicle and may cancel, suspend, or revoke a registration if the
  department determines that a motor vehicle is unsafe, improperly
  equipped, or otherwise unfit to be operated on a public highway.
         [(b)     The department may refuse to register a motorcycle and
  may suspend or revoke the registration of a motorcycle if the
  department determines that the motorcycle's braking system does not
  comply with Section 547.408.]
         SECTION 87.  Section 502.055(b), Transportation Code, is
  amended to read as follows:
         (b)  The department may require an applicant for
  registration under this chapter to provide the department with
  evidence of:
               (1)  the manufacturer's rated carrying capacity for the
  vehicle; or
               (2)  [the nominal tonnage rating of the vehicle;
               [(3)]  the gross vehicle weight rating [of the vehicle;
  or
               [(4)     any combination of information described in
  Subdivisions (1)-(3)].
         SECTION 88.  Section 502.178, Transportation Code, is
  transferred to Subchapter B, Chapter 502, Transportation Code,
  redesignated as Section 502.057, Transportation Code, and amended
  to read as follows:
         Sec. 502.057  [502.178].  REGISTRATION RECEIPT. [(a)]  The
  department shall issue or require to be issued to the owner of a
  vehicle registered under this chapter a registration receipt
  showing the information required by rule [:
               [(1)  the date of issuance;
               [(2)  the license number assigned to the vehicle;
               [(3)  the name and address of the owner; and
               [(4)     other information as determined by the
  department.
         [(b)     The registration receipt issued for a commercial motor
  vehicle, truck-tractor, trailer, or semitrailer must show the gross
  weight for which the vehicle is registered].
         SECTION 89.  Section 502.179, Transportation Code, is
  transferred to Subchapter B, Chapter 502, Transportation Code,
  redesignated as Section 502.058, Transportation Code, and amended
  to read as follows:
         Sec. 502.058  [502.179].  DUPLICATE REGISTRATION RECEIPT.
  (a)  The owner of a vehicle for which the registration receipt has
  been lost or destroyed may obtain a duplicate receipt from the
  department or the county assessor-collector who issued the original
  receipt by paying a fee of $2.
         (b)  The office issuing a duplicate receipt shall retain the
  fee received [as a fee of office].
         SECTION 90.  Section 502.180, Transportation Code, is
  transferred to Subchapter B, Chapter 502, Transportation Code,
  redesignated as Section 502.059, Transportation Code, and amended
  to read as follows:
         Sec. 502.059  [502.180].  ISSUANCE OF [LICENSE PLATE OR]
  REGISTRATION INSIGNIA. (a)  On payment of the prescribed fee [,
  the department shall issue to] an applicant for motor vehicle
  registration shall be issued a [license plate or set of plates or a
  device that, when attached to the vehicle as prescribed by the
  department, is the] registration insignia [for the period for which
  it was issued].
         (b)  [Subject to Subchapter I, the department shall issue
  only one license plate or set of plates for a vehicle during a
  five-year period.
         [(c)]  On application and payment of the prescribed fee for a
  renewal of the registration of a vehicle through the period set by
  rule [for the first, second, third, or fourth registration year
  after the issuance of a license plate or set of plates for the
  vehicle], the department shall issue a registration insignia for
  the validation of the license plate or plates to be attached as
  provided by Subsection (c) [(d)].
         (c) [(d)]  Except as provided by Subsection (f) [(h)], the
  registration insignia for validation of a license plate shall be
  attached to the inside of the vehicle's windshield, if the vehicle
  has a windshield, within six inches of the place where the motor
  vehicle inspection sticker is required to be placed. If the vehicle
  does not have a windshield, the owner, when applying for
  registration or renewal of registration, shall notify the
  department, and the department shall issue a distinctive device for
  attachment to the rear license plate of the vehicle.
         (d)  Department [(e)     The department shall adopt rules for
  the issuance and use of license plates and registration insignia
  issued under this chapter. The] rules may provide for the use of an
  automated registration process, including:
               (1)  the automated on-site production of registration
  insignia; and
               (2)  automated on-premises and off-premises
  self-service registration.
         (e)  Subsection (c) does [(f)  Subsections (b)-(d) do] not
  apply to:
               (1)  the issuance of specialized license plates as
  designated by the department, including state official license
  plates, exempt plates for governmental entities, and temporary
  registration plates; or
               (2)  the issuance or validation of replacement license
  plates, except as provided by Chapter 504 [Section 502.184].
         (f)  [(g)     The department shall provide a separate and
  distinctive tab to be affixed to the license plate of an automobile,
  pickup, or recreational vehicle that is offered for rent, as a
  business, to any part of the public.
         [(h)]  The registration insignia [for validation of a
  license plate] shall be attached to the rear license plate of the
  vehicle, if the vehicle is:
               (1)  a motorcycle;
               (2)  machinery used exclusively to drill water wells or
  construction machinery for which a distinguishing license plate has
  been issued under Section 502.146 [504.504];  or
               (3)  oil well servicing, oil clean out, or oil well
  drilling machinery or equipment for which a distinguishing license
  plate has been issued under Subchapter G, Chapter 623.
         SECTION 91.  Section 502.184, Transportation Code, as
  effective September 1, 2011, is transferred to Subchapter B,
  Chapter 502, Transportation Code, redesignated as Section 502.060,
  Transportation Code, and amended to read as follows:
         Sec. 502.060  [502.184].  REPLACEMENT OF REGISTRATION
  INSIGNIA. (a) The owner of a registered motor vehicle may obtain a
  replacement registration insignia by:
               (1)  certifying that the replacement registration
  insignia will not be used on any other vehicle owned or operated by
  the person making the statement;
               (2)  paying a fee of $6 plus the fees required by
  Section 502.356(a) [502.1705(a)] for each replacement registration
  insignia, except as provided by other law; and
               (3)  returning each replaced registration insignia in
  the owner's possession.
         (b)  No fee is required under this section if the replacement
  fee for a license plate has been paid under Section 504.007 
  [502.1841].
         (c)  [The fee for replacement of license plates issued under
  Section 504.507 is the amount prescribed by the department as
  necessary to recover the cost of providing the replacement plates.
         [(d)     If license plates approved under Section 504.501(b) or
  504.502(c) are lost, stolen, or mutilated, the owner of the vehicle
  may obtain approval of another set of license plates as provided by
  Section 504.501 or 504.502, respectively.     The fee for approval of
  replacement license plates is $5.
         [(e)]  A county assessor-collector may not issue a
  replacement registration insignia without complying with this
  section.
         (d) [(f)]  A county assessor-collector shall retain $2.50 of
  each fee collected under this section and shall report and send the
  remainder to the department.
         [(g)     Replacement license plates may be used in the
  registration year in which the plates are issued and during each
  succeeding year of the five-year period as prescribed by Section
  502.180(b) if the registration insignia is properly attached.
         [(h)     Subsection (g) does not apply to the issuance of
  specialized license plates as designated by the department,
  including state official license plates, exempt plates for
  governmental entities, and temporary registration plates.
         [(i)     The owner of a vehicle listed in Section 502.180(h) may
  obtain replacement plates and a replacement registration insignia
  by paying a fee of $5 plus the fees required by Sections 502.170(a)
  and 502.1705(a).]
         SECTION 92.  The heading to Subchapter C, Chapter 502,
  Transportation Code, is amended to read as follows:
  SUBCHAPTER C. SPECIAL REGISTRATIONS [COUNTY ADMINISTRATION]
         SECTION 93.  Section 502.0025, Transportation Code, is
  transferred to Subchapter C, Chapter 502, Transportation Code,
  redesignated as Section 502.090, Transportation Code, and amended
  to read as follows:
         Sec. 502.090  [502.0025].  EFFECT OF CERTAIN MILITARY
  SERVICE ON REGISTRATION REQUIREMENT. (a)  This section applies
  only to a motor vehicle that is owned by a person who:
               (1)  is a resident of this state;
               (2)  is on active duty in the armed forces of the United
  States;
               (3)  is stationed in or has been assigned to another
  nation under military orders; and
               (4)  has registered the vehicle or been issued a
  license for the vehicle under the applicable status of forces
  agreement by:
                     (A)  the appropriate branch of the armed forces of
  the United States; or
                     (B)  the nation in which the person is stationed
  or to which the person has been assigned.
         (b)  Unless the registration or license issued for a vehicle
  described by Subsection (a) is suspended, canceled, or revoked by
  this state as provided by law:
               (1)  Section 502.040(a) [502.002(a)] does not apply;
  and
               (2)  the registration or license issued by the armed
  forces or host nation remains valid and the motor vehicle may be
  operated in this state under that registration or license for a
  period of not more than 90 days after the date on which the vehicle
  returns to this state.
         SECTION 94.  Section 502.054, Transportation Code, is
  transferred to Subchapter C, Chapter 502, Transportation Code,
  redesignated as Section 502.091, Transportation Code, and amended
  to read as follows:
         Sec. 502.091  [502.054].  INTERNATIONAL REGISTRATION PLAN
  [AGREEMENTS WITH OTHER JURISDICTIONS; OFFENSE]. (a)  The
  department, through its director, may enter into an agreement with
  an authorized officer of another jurisdiction, including another
  state of the United States, a foreign country or a state, province,
  territory, or possession of a foreign country, to provide for:
               (1)  the registration of vehicles by residents of this
  state and nonresidents on an allocation or mileage apportionment
  plan, as under the International Registration Plan; and
               (2)  the exemption from payment of registration fees by
  nonresidents if residents of this state are granted reciprocal
  exemptions.
         (b)  The department may adopt and enforce rules to carry out
  the International Registration Plan or other agreement under this
  section.
         (c)  To carry out the International Registration Plan or
  other agreement under this section, the department shall direct
  that fees collected for other jurisdictions under the agreement be
  deposited to the credit of the proportional registration
  distributive fund in the state treasury and distributed to the
  appropriate jurisdiction through that fund.  The department is not
  required to refund any amount less than $10 unless required by the
  plan.
         (d)  This section prevails to the extent of conflict with
  another law relating to the subject of this section.
         (e)  A person commits an offense if the person owns or
  operates a vehicle not registered in this state in violation of:
               (1)  an agreement under this section; or
               (2)  the applicable registration laws of this state, in
  the absence of an agreement under this section.
         (f)  An offense under Subsection (e) is a misdemeanor
  punishable by a fine not to exceed $200.
         SECTION 95.  Section 502.355, Transportation Code, is
  transferred to Subchapter C, Chapter 502, Transportation Code,
  redesignated as Section 502.092, Transportation Code, and amended
  to read as follows:
         Sec. 502.092  [502.355].  NONRESIDENT-OWNED VEHICLES USED
  TO TRANSPORT FARM PRODUCTS[; OFFENSE]. (a) The department may
  issue to a nonresident owner a permit for a truck, truck-tractor,
  trailer, or semitrailer that:
               (1)  is registered in the owner's home state or country;
  and
               (2)  will be used to transport:
                     (A)  farm products produced in this state from the
  place of production to a place of market or storage or a railhead
  that is not more than 75 miles from the place of production;
                     (B)  machinery used to harvest farm products
  produced in this state; or
                     (C)  farm products produced outside this state
  from the point of entry into this state to a place of market,
  storage, or processing or a railhead or seaport that is not more
  than 80 miles from the point of entry.
         (b)  The department shall issue a distinguishing insignia
  for a vehicle issued a permit under this section. The insignia must
  be attached to the vehicle in lieu of regular license plates and
  must show the permit expiration date. A permit issued under this
  section is valid until the earlier of:
               (1)  the date the vehicle's registration in the owner's
  home state or country expires; or
               (2)  the 30th day after the date the permit is issued.
         (c)  A person may obtain a permit under this section by:
               (1)  applying to the department in a manner [on a form]
  prescribed by the department;
               (2)  paying a fee equal to 1/12 the registration fee
  prescribed by this chapter for the vehicle;
               (3)  furnishing satisfactory evidence that the motor
  vehicle is insured under an insurance policy that complies with
  Section 601.072 and that is written by:
                     (A)  an insurance company or surety company
  authorized to write motor vehicle liability insurance in this
  state; or
                     (B)  with the department's approval, a surplus
  lines insurer that meets the requirements of Chapter 981, Insurance
  Code, and rules adopted by the commissioner of insurance under that
  chapter, if the applicant is unable to obtain insurance from an
  insurer described by Paragraph (A); and
               (4)  furnishing evidence that the vehicle has been
  inspected as required under Chapter 548.
         (d)  A nonresident owner may not obtain more than three
  permits under this section during a registration year.
         (e)  A vehicle for which a permit is issued under this
  section may not be operated in this state after the permit expires
  unless the owner:
               (1)  obtains another temporary permit; or
               (2)  registers the vehicle under Section 502.253,
  502.254, 502.255 [502.162, 502.165, 502.166], or 502.256
  [502.167], as appropriate, for the remainder of the registration
  year.
         (f)  A vehicle for which a permit is issued under this
  section may not be registered under Section 502.433 [502.163].
         (g)  A mileage referred to in this section is a state highway
  mileage.
         [(h)     A person operating a vehicle under a permit issued
  under this section commits an offense if the person:
               [(1)     transports farm products to a place of market,
  storage, or processing or a railhead or seaport that is farther from
  the place of production or point of entry, as appropriate, than the
  distance provided for in the permit; or
               [(2)     follows a route other than that prescribed by the
  board.
         [(i)     An offense under Subsection (h) is a misdemeanor
  punishable by a fine of not less than $25 or more than $200.]
         SECTION 96.  Section 502.353, Transportation Code, is
  transferred to Subchapter C, Chapter 502, Transportation Code,
  redesignated as Section 502.093, Transportation Code, and amended
  to read as follows:
         Sec. 502.093  [502.353].  [FOREIGN COMMERCIAL VEHICLES;]
  ANNUAL PERMITS [; OFFENSE]. (a)  The department may issue an annual
  permit in lieu of registration to a foreign commercial motor
  vehicle, trailer, or semitrailer that [:
               [(1)]  is subject to registration in this state [;] and
               [(2)]  is not authorized to travel on a public highway
  because of the lack of registration in this state or the lack of
  reciprocity with the state or country in which the vehicle is
  registered.
         (b)  A permit issued under this section [:
               [(1)  is in lieu of registration; and
               [(2)]  is valid for a vehicle registration year to
  begin on the first day of a calendar month designated by the
  department and end on the last day of the last calendar month of the
  registration year.
         (c)  A permit may not be issued under this section for the
  importation of citrus fruit into this state from a foreign country
  except for foreign export or processing for foreign export.
         (d)  A person may obtain a permit under this section by:
               (1)  applying in the manner prescribed by [to] the
  department;
               (2)  paying a fee in the amount required by Subsection
  (e) in the manner prescribed by the department, including a service
  charge for a credit card payment or escrow account [cash or by
  postal money order or certified check]; and
               (3)  furnishing evidence of financial responsibility
  for the motor vehicle that complies with Sections 502.046(c)
  [502.153(c)] and 601.168(a), the policies to be written by an
  insurance company or surety company authorized to write motor
  vehicle liability insurance in this state.
         (e)  The fee for a permit under this section is the fee that
  would be required for registering the vehicle under Section 502.253
  [502.162] or 502.255 [502.167], except as provided by Subsection
  (f).
         (f)  A vehicle registered under this section is exempt from
  the token fee and is not required to display the associated
  distinguishing license plate if the vehicle:
               (1)  is a semitrailer that has a gross weight of more
  than 6,000 pounds; and
               (2)  is used or intended to be used in combination with
  a truck tractor or commercial motor vehicle with a gross vehicle
  weight [manufacturer's rated carrying capacity] of more than 10,000
  pounds [one ton].
         (g)  A vehicle registered under this section is not subject
  to the fee required by Section 502.401 [502.172] or 502.403
  [502.173].
         [(h)  The department may:
               [(1)  adopt rules to administer this section; and
               [(2)     prescribe an application for a permit and other
  forms under this section.
         [(i)     A person who violates this section commits an offense.
  An offense under this section is a misdemeanor punishable by a fine
  not to exceed $200.]
         SECTION 97.  Section 502.352, Transportation Code, is
  transferred to Subchapter C, Chapter 502, Transportation Code,
  redesignated as Section 502.094, Transportation Code, and amended
  to read as follows:
         Sec. 502.094  [502.352].  72- OR 144-HOUR PERMITS [FOREIGN
  COMMERCIAL VEHICLES]. (a)  The department may issue a temporary
  registration permit in lieu of registration for a commercial motor
  vehicle, trailer, semitrailer, or motor bus that:
               (1)  is owned by a resident of the United States,
  Canada, or the United Mexican States;
               (2)  is subject to registration in this state; and
               (3)  is not authorized to travel on a public highway
  because of the lack of registration in this state or the lack of
  reciprocity with the state or province in which the vehicle is
  registered.
         (b)  A permit issued under this section [:
               [(1)  is in lieu of registration; and
               [(2)]  is valid for the period stated on the permit,
  effective from the date and time shown on the receipt issued as
  evidence of registration under this section.
         (c)  A person may obtain a permit under this section by:
               (1)  applying to the county assessor-collector, the
  department, or the department's wire service agent, if the
  department has a wire service agent;
               (2)  paying a fee of $25 for a 72-hour permit or $50 for
  a 144-hour permit in the manner prescribed by the department that
  may include a service charge for a credit card payment or escrow
  account[:
                     [(A)  in cash;
                     [(B)  by postal money order;
                     [(C)  by certified check;
                     [(D)     by wire transfer through the department's
  wire service agent, if any;
                     [(E)  by an escrow account; or
                     [(F)     where the service is provided, by a credit
  card issued by:
                           [(i)     a financial institution chartered by a
  state or the United States; or
                           [(ii)     a nationally recognized credit
  organization approved by the board;
               [(3)     paying a discount or service charge for a credit
  card payment or escrow account, in addition to the fee];
               (3) [(4)]  furnishing to the county
  assessor-collector, the department, or the department's wire
  service agent, evidence of financial responsibility for the vehicle
  that complies with Sections 502.046(c) [502.153(c)] and 601.168(a)
  [and is written by an insurance company or surety company
  authorized to write motor vehicle liability insurance in this
  state]; and
               (4) [(5)]  submitting a copy of the applicable federal
  declaration form required by the Federal Motor Carrier Safety
  Administration or its successor in connection with the importation
  of a motor vehicle or motor vehicle equipment subject to the federal
  motor vehicle safety, bumper, and theft prevention standards.
         (d)  A county assessor-collector shall report and send a fee
  collected under this section in the manner provided by Section
  502.198 [Sections 502.102 and 502.105]. Each week, a wire service
  agent shall send to the department a report of all permits issued by
  the agent during the previous week. The board [department] by rule
  shall prescribe the format [form] and content of a report required
  by this subsection.
         (e)  [The department may:
               [(1)  adopt rules to administer this section; and
               [(2)     prescribe an application for a permit and other
  forms under this section.
         [(f)]  A vehicle issued a permit under this section is
  subject to Subchapters B and F, Chapter 548, unless the vehicle:
               (1)  is registered in another state of the United
  States, in a province of Canada, or in a state of the United Mexican
  States; or
               (2)  is mobile drilling or servicing equipment used in
  the production of gas, crude petroleum, or oil, including a mobile
  crane or hoisting equipment, mobile lift equipment, forklift, or
  tug.
         (f) [(g)]  A commercial motor vehicle, trailer, semitrailer,
  or motor bus apprehended for violating a registration law of this
  state:
               (1)  may not be issued a permit under this section; and
               (2)  is immediately subject to registration in this
  state.
         (g) [(h)]  A person who operates a commercial motor vehicle,
  trailer, or semitrailer with an expired permit issued under this
  section is considered to be operating an unregistered vehicle
  subject to each penalty prescribed by law.
         (h) [(i)]  The department may establish one or more escrow
  accounts in the state highway fund for the prepayment of a 72-hour
  permit or a 144-hour permit. Any fee established by the department
  for the administration of this subsection shall be administered as
  required by an agreement entered into by the department.
         SECTION 98.  Section 502.354, Transportation Code, is
  transferred to Subchapter C, Chapter 502, Transportation Code,
  redesignated as Section 502.095, Transportation Code, and amended
  to read as follows:
         Sec. 502.095  [502.354].  ONE-TRIP [SINGLE] OR 30-DAY TRIP
  PERMITS [; OFFENSE]. (a)  The department may issue a temporary
  permit in lieu of registration for a vehicle [that:
               [(1)  is] subject to registration in this state that [;
  and
               [(2)]  is not authorized to travel on a public highway
  because of the lack of registration in this state or the lack of
  reciprocity with the state or country in which the vehicle is
  registered.
         (b)  A permit issued under this section [:
               [(1)  is in lieu of registration; and
               [(2)]  is valid for:
               (1) [(A)]  one trip, as provided by Subsection (c); or
               (2) [(B)]  30 days, as provided by Subsection (d).
         (c)  A one-trip permit is valid for one trip between the
  points of origin and destination and those intermediate points
  specified in the application and registration receipt. Unless the
  vehicle is a bus operating under charter that is not covered by a
  reciprocity agreement with the state or country in which the bus is
  registered, a one-trip permit is for the transit of the vehicle
  only, and the vehicle may not be used for the transportation of any
  passenger or property. A one-trip permit may not be valid for
  longer than 15 days from the effective date of registration.
         (d)  A 30-day permit may be issued only to a passenger
  vehicle, a private bus, a trailer or semitrailer with a gross weight
  of not more than 10,000 pounds, a light truck, or a light commercial
  vehicle with a gross vehicle weight [manufacturer's rated carrying
  capacity] of more than 10,000 pounds [one ton] that will operate
  unladen. A person may obtain multiple 30-day permits. The
  department may issue a single registration receipt to apply to all
  of the periods for which the vehicle is registered.
         (e)  A person may obtain a permit under this section by:
               (1)  applying as [on a form] provided by the department
  to:
                     (A)  the county assessor-collector of the county
  in which the vehicle will first be operated on a public highway; or
                     (B)  the department in Austin or at one of the
  department's vehicle title and registration regional offices;
               (2)  paying a fee, in the manner prescribed by the
  department including a registration service charge for a credit
  card payment or escrow account [cash or by postal money order or
  certified check,] of:
                     (A)  $5 for a one-trip permit; or
                     (B)  $25 for each 30-day period; and
               (3)  furnishing evidence of financial responsibility
  for the vehicle in a form listed under Section 502.046(c)
  [502.153(c)].
         (f)  A registration receipt [and temporary tag] shall be
  carried in the vehicle at all times during the period in which it is
  valid [issued on forms provided by the department]. The temporary
  tag must contain all pertinent information required by this section
  and must be displayed in the rear window of the vehicle so that the
  tag is clearly visible and legible when viewed from the rear of the
  vehicle. If the vehicle does not have a rear window, the temporary
  tag must be attached on or carried in the vehicle to allow ready
  inspection. The registration receipt must be carried in the
  vehicle at all times during the period in which it is valid.
         (g)  The department may refuse and may instruct a county
  assessor-collector to refuse to issue a temporary registration for
  any vehicle if, in the department's opinion, the vehicle or the
  owner of the vehicle has been involved in operations that
  constitute an abuse of the privilege granted by this section. A
  registration issued after notice to a county assessor-collector
  under this subsection is void.
         [(h)     A person issued a temporary registration under this
  section who operates a vehicle in violation of Subsection (f)
  commits an offense. An offense under this subsection is a Class C
  misdemeanor.
         [(i)  The department may:
               [(1)  adopt rules to administer this section; and
               [(2)     prescribe an application for a permit and other
  forms under this section.]
         SECTION 99.  The heading to Subchapter D, Chapter 502,
  Transportation Code, is amended to read as follows:
  SUBCHAPTER D. VEHICLES NOT ISSUED REGISTRATION [PROCEDURES AND
  FEES]
         SECTION 100.  Section 502.006, Transportation Code, is
  transferred to Subchapter D, Chapter 502, Transportation Code,
  redesignated as Section 502.140, Transportation Code, and amended
  to read as follows:
         Sec. 502.140  [502.006].  CERTAIN OFF-HIGHWAY VEHICLES.
  (a) Except as provided by Subsection (b), a person may not register
  an all-terrain vehicle or a recreational off-highway vehicle, with
  or without design alterations, for operation on a public highway.
         (b)  The state, a county, or a municipality may register an
  all-terrain vehicle or a recreational off-highway vehicle for
  operation on a public beach or highway to maintain public safety and
  welfare.
         (c)  A recreational off-highway vehicle registered as
  provided by Subsection (b) may be operated on a public or private
  beach in the same manner as a golf cart may be operated on a public
  or private beach under Section 551.403 [502.0071].  The operator
  must hold and have in the operator's possession a driver's license
  issued under Chapter 521 or a commercial driver's license issued
  under Chapter 522.
         (d)  Section 504.401 [502.172] does not apply to an
  all-terrain vehicle or a recreational off-highway vehicle.
         (e)  Operation of an all-terrain vehicle or recreational
  off-highway vehicle in compliance with Section 663.037 does not
  require registration under Subsection (b).
         SECTION 101.  Section 502.0072, Transportation Code, is
  transferred to Subchapter D, Chapter 502, Transportation Code, and
  redesignated as Section 502.142, Transportation Code, to read as
  follows:
         Sec. 502.142  [502.0072].  MANUFACTURED HOUSING.
  Manufactured housing, as defined by Section 1201.003, Occupations
  Code, is not a vehicle subject to this chapter.
         SECTION 102.  Section 502.0073, Transportation Code, is
  transferred to Subchapter D, Chapter 502, Transportation Code,
  redesignated as Section 502.143, Transportation Code, and amended
  to read as follows:
         Sec. 502.143  [502.0073].  OTHER VEHICLES [POWER SWEEPERS].
  [(a)]  An owner may [of a power sweeper is] not [required to]
  register the following vehicles for operation on a public highway:
               (1)  power sweepers;
               (2)  motorized mobility devices;
               (3)  electric personal assistive mobility devices; and
               (4)  electric bicycles [sweeper].
         [(b)     In this section, "power sweeper" means an implement,
  with or without motive power, designed for the removal by broom,
  vacuum, or regenerative air system of debris, dirt, gravel, litter,
  or sand from asphaltic concrete or cement concrete surfaces,
  including surfaces of parking lots, roads, streets, highways, and
  warehouse floors. The term includes a vehicle on which the
  implement is permanently mounted if the vehicle is used only as a
  power sweeper.]
         SECTION 103.  Section 502.0078, Transportation Code, is
  transferred to Subchapter D, Chapter 502, Transportation Code, and
  redesignated as Section 502.144, Transportation Code, to read as
  follows:
         Sec. 502.144  [502.0078].  VEHICLES OPERATED ON PUBLIC
  HIGHWAY SEPARATING REAL PROPERTY UNDER VEHICLE OWNER'S CONTROL.
  Where a public highway separates real property under the control of
  the owner of a motor vehicle, the operation of the motor vehicle by
  the owner or the owner's agent or employee across the highway is not
  a use of the motor vehicle on the public highway.
         SECTION 104.  Section 502.0079, Transportation Code, is
  transferred to Subchapter D, Chapter 502, Transportation Code,
  redesignated as Section 502.145, Transportation Code, and amended
  to read as follows:
         Sec. 502.145  [502.0079].  VEHICLES OPERATED BY CERTAIN
  NONRESIDENTS. (a)  [A nonresident owner of a motor vehicle,
  trailer, or semitrailer that is registered in the state or country
  in which the person resides may operate the vehicle to transport
  persons or property for compensation without being registered in
  this state, if the person does not exceed two trips in a calendar
  month and each trip does not exceed four days.
         [(b)     A nonresident owner of a privately owned vehicle that
  is not registered in this state may not make more than five
  occasional trips in any calendar month into this state using the
  vehicle. Each occasional trip into this state may not exceed five
  days.
         [(c)]  A nonresident owner of a privately owned passenger car
  that is registered in the state or country in which the person
  resides and that is not operated for compensation may operate the
  car in this state for the period in which the car's license plates
  are valid. In this subsection, "nonresident" means a resident of a
  state or country other than this state whose presence in this state
  is as a visitor and who does not engage in gainful employment or
  enter into business or an occupation, except as may otherwise be
  provided by any reciprocal agreement with another state or country.
         (b) [(d)]  This section does not prevent:
               (1)  a nonresident owner of a motor vehicle from
  operating the vehicle in this state for the sole purpose of
  marketing farm products raised exclusively by the person; or
               (2)  a resident of an adjoining state or country from
  operating in this state a privately owned and registered vehicle to
  go to and from the person's place of regular employment and to make
  trips to purchase merchandise, if the vehicle is not operated for
  compensation.
         (c) [(e)]  The privileges provided by this section may be
  allowed only if, under the laws of the appropriate state or country,
  similar privileges are granted to vehicles registered under the
  laws of this state and owned by residents of this state.
         (d) [(f)]  This section does not affect the right or status
  of a vehicle owner under any reciprocal agreement between this
  state and another state or country.
         SECTION 105.  Section 504.504, Transportation Code, is
  transferred to Subchapter D, Chapter 502, Transportation Code,
  redesignated as Section 502.146, Transportation Code, and amended
  to read as follows:
         Sec. 502.146  [504.504].  CERTAIN FARM VEHICLES AND DRILLING
  AND CONSTRUCTION EQUIPMENT. (a)  The department shall issue
  specialty license plates to a vehicle described by Subsection (b)
  or (c). The fee for the license plates is $5.
         (b)  An owner is not required to register a vehicle that is
  used only temporarily on the highways if the vehicle is:
               (1)  a farm trailer or farm semitrailer with a gross
  weight of more than 4,000 pounds but not more than 34,000 pounds
  that is  used exclusively to transport:
                     (A)  seasonally harvested agricultural products
  or livestock from the place of production to the place of
  processing, market, or storage; or
                     (B)  farm supplies from the place of loading to
  the farm;
               (2)  machinery used exclusively for the purpose of
  drilling water wells; [or]
               (3)  oil well servicing or drilling machinery and if at
  the time of obtaining the license plates, the applicant submits
  proof that the applicant has a permit under Section 623.142; or
               (4)  construction machinery [that is not designed to
  transport persons or property on a public highway].
         (c)  An owner is not required to register a vehicle that is:
               (1)  a farm trailer or farm semitrailer owned by a
  cotton gin and used exclusively to transport agricultural products
  without charge from the place of production to the place of
  processing, market, or storage;
               (2)  a trailer used exclusively to transport fertilizer
  without charge from a place of supply or storage to a farm; or
               (3)  a trailer used exclusively to transport cottonseed
  without charge from a place of supply or storage to a farm or place
  of processing.
         (d)  A vehicle described by Subsection (b) is exempt from the
  inspection requirements of Subchapters B and F, Chapter 548.
         (e)  This section does not apply to a farm trailer or farm
  semitrailer that:
               (1)  is used for hire;
               (2)  has metal tires operating in contact with the
  highway;
               (3)  is not equipped with an adequate hitch pinned or
  locked so that it will remain securely engaged to the towing vehicle
  while in motion; or
               (4)  is not operated and equipped in compliance with
  all other law.
         (f)  A vehicle to which this section applies that is operated
  on a public highway in violation of this section is considered to be
  operated while unregistered and is immediately subject to the
  applicable registration fees and penalties prescribed by this
  chapter [Chapter 502].
         (g)  In this section, the gross weight of a trailer or
  semitrailer is the combined weight of the vehicle and the load
  carried on the highway.
         SECTION 106.  The heading to Subchapter E, Chapter 502,
  Transportation Code, is amended to read as follows:
  SUBCHAPTER E. ADMINISTRATION OF FEES [SPECIALLY DESIGNATED LICENSE
  PLATES; EXEMPTIONS FOR GOVERNMENTAL AND QUASI-GOVERNMENTAL
  VEHICLES]
         SECTION 107.  Section 502.159, Transportation Code, is
  transferred to Subchapter E, Chapter 502, Transportation Code,
  redesignated as Section 502.190, Transportation Code, and amended
  to read as follows:
         Sec. 502.190  [502.159].  SCHEDULE OF REGISTRATION FEES.
  The department shall post [compile and furnish to each county
  assessor-collector] a complete schedule of registration fees on the
  Internet [to be collected on the various makes, models, and types of
  vehicles].
         SECTION 108.  Section 502.004, Transportation Code, is
  transferred to Subchapter E, Chapter 502, Transportation Code,
  redesignated as Section 502.191, Transportation Code, and amended
  to read as follows:
         Sec. 502.191  [502.004].  COLLECTION OF FEES. (a)  A person
  may not collect a registration fee under this chapter unless the
  person is:
               (1)  an officer or employee of the department; or
               (2)  a county assessor-collector or a deputy county
  assessor-collector.
         (b)  The department may accept electronic payment by
  electronic funds transfer, credit card, or debit card of any fee
  that the department is authorized to collect under this chapter.
         (c)  The department may collect a fee for processing a
  payment by electronic funds transfer, credit card, or debit card in
  an amount not to exceed the amount of the charges incurred by the
  department to process the payment.
         (d)  The department may collect the fee set under Section
  2054.2591, Government Code, from a person making a payment by
  electronic funds transfer, credit card, or debit card through the
  online project implemented under Section 2054.252, Government
  Code.
         (e)  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.
         SECTION 109.  Subchapter E, Chapter 502, Transportation
  Code, is amended by adding Section 502.192 to read as follows:
         Sec. 502.192.  TRANSFER FEE. The purchaser of a used motor
  vehicle shall pay, in addition to any fee required under Chapter 501
  for the transfer of title, a transfer fee of $2.50 for the transfer
  of the registration of the motor vehicle.  The county
  assessor-collector may retain as commission for services provided
  under this subchapter half of each transfer fee collected.
         SECTION 110.  Section 502.181, Transportation Code, is
  transferred to Subchapter E, Chapter 502, Transportation Code,
  redesignated as Section 502.193, Transportation Code, and amended
  to read as follows:
         Sec. 502.193 [502.181].  PAYMENT [OF REGISTRATION FEE] BY
  CHECK DRAWN AGAINST INSUFFICIENT FUNDS. (a) A county
  assessor-collector who receives from any person a check or draft
  for [drawn on a bank or trust company in] payment of a registration
  fee for a registration year that has not ended [on a motor vehicle,
  trailer, or motorcycle sidecar] that is returned unpaid because of
  insufficient funds or no funds in the bank or trust company to the
  credit of the drawer of the check or draft shall certify the fact to
  the sheriff or a constable or highway patrol officer in the county
  after attempts to contact the person fail to result in the
  collection of payment.  The certification must be made before the
  30th day after the date the check or draft is returned unpaid and:
               (1)  be under the assessor-collector's official seal;
               (2)  include the name and address of the person who gave
  the [assessor-collector the] check or draft;
               (3)  include the license plate number and make of the
  vehicle;
               (4)  be accompanied by the check or draft; and
               (5)  be accompanied by documentation of any attempt to
  contact the person and collect payment.
         (b)  On receiving a complaint under Subsection (a) from the
  county assessor-collector, the sheriff, constable, or highway
  patrol officer shall find the person who gave the
  [assessor-collector the] check or draft, if the person is in the
  county, and demand immediate redemption of the check or draft from
  the person. If the person fails or refuses to redeem the check or
  draft, the sheriff, constable, or highway patrol officer shall:
               (1)  seize and remove the license plates and
  registration insignia from the vehicle; and
               (2)  return the license plates and registration
  insignia to the county assessor-collector.
         SECTION 111.  Section 502.182, Transportation Code, is
  transferred to Subchapter E, Chapter 502, Transportation Code,
  redesignated as Section 502.194, Transportation Code, and amended
  to read as follows:
         Sec. 502.194 [502.182].  CREDIT FOR REGISTRATION FEE PAID ON
  MOTOR VEHICLE SUBSEQUENTLY DESTROYED. (a)  The owner of a motor
  vehicle that is destroyed to the extent that it cannot afterwards be
  operated on a public highway is entitled to a registration fee
  credit if the prorated portion of the registration fee for the
  remainder of the registration year is more than $15. The owner must
  claim the credit by [:
               [(1)]  sending the registration fee receipt [and the
  license plates] for the vehicle to the department [; and
               [(2)     executing a statement on a form provided by the
  department showing that the license plates have been surrendered to
  the department].
         (b)  The department, on satisfactory proof that the vehicle
  is destroyed, shall issue a registration fee credit slip to the
  owner in an amount equal to the prorated portion of the registration
  fee for the remainder of the registration year. The owner, during
  the same or the next registration year, may use the registration fee
  credit slip as payment or part payment for the registration of
  another vehicle to the extent of the credit.
         [(c)     A statement executed under Subsection (a)(2) shall be
  delivered to a purchaser of the destroyed vehicle. The purchaser
  may surrender the statement to the department in lieu of the vehicle
  license plates.
         [(d)     The department shall adopt rules to administer this
  section.]
         SECTION 112.  Section 502.183, Transportation Code, is
  transferred to Subchapter E, Chapter 502, Transportation Code,
  redesignated as Section 502.195, Transportation Code, and amended
  to read as follows:
         Sec. 502.195  [502.183].  REFUND OF OVERCHARGED
  REGISTRATION FEE. (a)  The owner of a motor vehicle [that is
  required to be registered] who pays an annual registration fee in
  excess of the statutory amount is entitled to a refund of the
  overcharge.
         (b)  The county assessor-collector who collects the
  excessive fee shall refund an overcharge on presentation to the
  assessor-collector of satisfactory evidence of the overcharge[.
  The owner must make a claim for a refund of an overcharge] not later
  than the first [fifth] anniversary of the date the excessive
  registration fee was paid.
         (c)  A refund shall be paid from the fund in which the
  county's share of registration fees is deposited.
         SECTION 113.  Section 502.051, Transportation Code, is
  transferred to Subchapter E, Chapter 502, Transportation Code, and
  redesignated as Section 502.196, Transportation Code, to read as
  follows:
         Sec. 502.196 [502.051].  DEPOSIT OF REGISTRATION FEES IN
  STATE HIGHWAY FUND. Except as otherwise provided by this chapter,
  the board and the department shall deposit all money received from
  registration fees in the state treasury to the credit of the state
  highway fund.
         SECTION 114.  Section 502.101, Transportation Code, is
  transferred to Subchapter E, Chapter 502, Transportation Code, and
  redesignated as Section 502.197, Transportation Code, to read as
  follows:
         Sec. 502.197 [502.101].  REGISTRATION BY MAIL OR ELECTRONIC
  MEANS; SERVICE CHARGE. (a)  A county assessor-collector may
  collect a service charge of $1 from each applicant registering a
  vehicle by mail. The service charge shall be used to pay the costs
  of handling and postage to mail the registration receipt and
  insignia to the applicant.
         (b)  With the approval of the commissioners court of a
  county, a county assessor-collector may contract with a private
  entity to enable an applicant for registration to use an electronic
  off-premises location. A private entity may charge an applicant
  not more than $1 for the service provided.
         (c)  The department may adopt rules to cover the timely
  application for and issuance of registration receipts and insignia
  by mail or through an electronic off-premises location.
         SECTION 115.  Section 502.102, Transportation Code, is
  transferred to Subchapter E, Chapter 502, Transportation Code,
  redesignated as Section 502.198, Transportation Code, and amended
  to read as follows:
         Sec. 502.198  [502.102].  DISPOSITION OF FEES GENERALLY.
  (a)  Except as provided by Sections 502.1982 [502.103] and 502.357 
  [502.104], this section applies to all fees collected by a county
  assessor-collector under this chapter.
         (b)  Each Monday, a county assessor-collector shall credit
  to the county road and bridge fund an amount equal to the net
  collections made during the preceding week until the amount so
  credited for the calendar year equals the total of:
               (1)  $60,000;
               (2)  $350 for each mile of county road maintained by the
  county, according to the most recent information available from the
  department, not to exceed 500 miles; and
               (3)  an additional amount of fees equal to the amount
  calculated under Section 502.1981 [502.1025].
         (c)  After the credits to the county road and bridge fund
  equal the total computed under Subsection (b), each Monday the
  county assessor-collector shall:
               (1)  credit to the county road and bridge fund an amount
  equal to 50 percent of the net collections made during the preceding
  week, until the amount so credited for the calendar year equals
  $125,000; and
               (2)  send to the department an amount equal to 50
  percent of those collections.
         (d)  After the credits to the county road and bridge fund
  equal the total amounts computed under Subsections (b) and (c)(1),
  each Monday the county assessor-collector shall send to the
  department all collections made during the preceding week.
         [(e)     Each Monday the county assessor-collector shall send
  to the department a copy of each receipt issued the previous week
  for a registration fee under this chapter.]
         SECTION 116.  Section 502.1025, Transportation Code, is
  transferred to Subchapter E, Chapter 502, Transportation Code,
  redesignated as Section 502.1981, Transportation Code, and amended
  to read as follows:
         Sec. 502.1981 [502.1025].  CALCULATION OF ADDITIONAL FEE
  AMOUNTS RETAINED BY A COUNTY. (a)  The county tax
  assessor-collector each calendar year shall calculate five percent
  of the tax and penalties collected by the county tax
  assessor-collector under Chapter 152, Tax Code, in the preceding
  calendar year. In addition, the county tax assessor-collector
  shall calculate each calendar year an amount equal to five percent
  of the tax and penalties that the comptroller:
               (1)  collected under Section 152.047, Tax Code, in the
  preceding calendar year; and
               (2)  determines are attributable to sales in the
  county.
         (b)  A county tax assessor-collector shall retain under
  Section 502.198(b) [502.102(b)] fees based on the following
  percentage of the amounts calculated under Subsection [subsection]
  (a) during each of the following fiscal years:
               (1)  [in fiscal year 2006, 90 percent;
               [(2)  in fiscal year 2007, 80 percent;
               [(3)  in fiscal year 2008, 70 percent;
               [(4)  in fiscal year 2009, 60 percent;
               [(5)  in fiscal year 2010, 50 percent;
               [(6)  in fiscal year 2011, 40 percent;
               [(7)]  in fiscal year 2012, 30 percent;
               (2) [(8)]  in fiscal year 2013, 20 percent;
               (3) [(9)]  in fiscal year 2014, 10 percent;
               (4) [(10)]  in fiscal year 2015 and succeeding years, 0
  percent.
         (c)  The county shall credit the amounts retained under
  Subsection (b) to the county road and bridge fund. Money credited
  to the fund under this section may only be used for:
               (1)  county road construction, maintenance, and
  repair;
               (2)  bridge construction, maintenance, and repair;
               (3)  the purchase of right-of-way for road or highway
  purposes; or
               (4)  the relocation of utilities for road or highway
  purposes.
         SECTION 117.  Section 502.103, Transportation Code, is
  transferred to Subchapter E, Chapter 502, Transportation Code,
  redesignated as Section 502.1982, Transportation Code, and amended
  to read as follows:
         Sec. 502.1982 [502.103].  DISPOSITION OF OPTIONAL COUNTY
  ROAD AND BRIDGE FEE. Each Monday a county assessor-collector shall
  apportion the collections for the preceding week for a fee imposed
  under Section 502.401 [502.172] by:
               (1)  crediting an amount equal to 97 percent of the
  collections to the county road and bridge fund; and
               (2)  sending to the department an amount equal to three
  percent of the collections to defray the department's costs of
  administering Section 502.401 [502.172].
         SECTION 118.  Section 502.106, Transportation Code, is
  transferred to Subchapter E, Chapter 502, Transportation Code,
  redesignated as Section 502.1983, Transportation Code, and amended
  to read as follows:
         Sec. 502.1983 [502.106].  DEPOSIT OF FEES IN
  INTEREST-BEARING ACCOUNT.  (a)  Except as provided by Sections
  502.1982 [502.103] and 502.357 [502.104], a county
  assessor-collector may:
               (1)  deposit the fees in an interest-bearing account or
  certificate in the county depository; and
               (2)  send the fees to the department not later than the
  34th day after the date the fees are due under Section 502.357 
  [502.104].
         (b)  The county owns all interest earned on fees deposited
  under this section. The county treasurer shall credit the interest
  to the county general fund.
         SECTION 119.  Section 502.107, Transportation Code, is
  transferred to Subchapter E, Chapter 502, Transportation Code, and
  redesignated as Section 502.1984, Transportation Code, to read as
  follows:
         Sec. 502.1984 [502.107].  INTEREST ON FEES.  (a)  A fee
  required to be sent to the department under this chapter bears
  interest for the benefit of the state highway fund at an annual rate
  of 10 percent beginning on the 60th day after the date the county
  assessor-collector collects the fee.
         (b)  The department shall audit the registration and
  transfer fees collected and disbursed by each county
  assessor-collector and shall determine the exact amount of interest
  due on any fee not sent to the department.
         (c)  The state has a claim against a county
  assessor-collector and the sureties on the assessor-collector's
  official bond for the amount of interest due on a fee.
         SECTION 120.  Section 502.108, Transportation Code, is
  transferred to Subchapter E, Chapter 502, Transportation Code,
  redesignated as Section 502.1985, Transportation Code, and amended
  to read as follows:
         Sec. 502.1985 [502.108].  USE OF REGISTRATION FEES RETAINED
  BY COUNTY.  (a)  Money credited to the county road and bridge fund
  under Section 502.198 [502.102] or 502.1982 [502.103] may not be
  used to pay the compensation of the county judge or a county
  commissioner. The money may be used only for the construction and
  maintenance of lateral roads in the county, under the supervision
  of the county engineer.
         (b)  If there is not a county engineer, the commissioners
  court of the county may require the services of the department's
  district engineer or resident engineer to supervise the
  construction and surveying of lateral roads in the county.
         (c)  A county may use money allocated to it under this
  chapter to:
               (1)  pay obligations issued in the construction or
  improvement of any roads, including state highways in the county;
               (2)  improve the roads in the county road system; or
               (3)  construct new roads.
         (d)  To the maximum extent possible, contracts for roads
  constructed by a county using funds provided under this chapter
  should be awarded by competitive bids.
         SECTION 121.  Section 502.110, Transportation Code, is
  transferred to Subchapter E, Chapter 502, Transportation Code, and
  redesignated as Section 502.1986, Transportation Code, to read as
  follows:
         Sec. 502.1986 [502.110].  CONTINGENT PROVISION FOR
  DISTRIBUTION OF FEES BETWEEN STATE AND COUNTIES.  If the method of
  distributing vehicle registration fees collected under this
  chapter between the state and counties is declared invalid because
  of inequality of collection or distribution of those fees, 60
  percent of each fee shall be distributed to the county collecting
  the fee and 40 percent shall be sent to the state in the manner
  provided by this chapter.
         SECTION 122.  The heading to Subchapter F, Chapter 502,
  Transportation Code, is amended to read as follows:
  SUBCHAPTER F.  REGULAR REGISTRATION FEES [SPECIALIZED LICENSE
  PLATES; EXEMPTIONS FOR PRIVATELY OWNED VEHICLES]
         SECTION 123.  Section 502.160, Transportation Code, as
  effective September 1, 2011, is transferred to Subchapter F,
  Chapter 502, Transportation Code, and redesignated as Section
  502.251, Transportation Code, to read as follows:
         Sec. 502.251  [502.160].  FEE: MOTORCYCLE OR MOPED. The
  fee for a registration year for registration of a motorcycle or
  moped is $30.
         SECTION 124.  Section 502.161, Transportation Code, as
  effective September 1, 2011, is transferred to Subchapter F,
  Chapter 502, Transportation Code, redesignated as Section 502.252,
  Transportation Code, and amended to read as follows:
         Sec. 502.252 [502.161].  FEE: VEHICLES THAT WEIGH 6,000
  POUNDS OR LESS. (a) The fee for a registration year for
  registration of a vehicle with a gross weight of 6,000 pounds or
  less is $50.75, unless otherwise provided in this chapter.
         (b) [(c)]  For registration purposes, the weight of a
  passenger car, a municipal bus, or a private bus is the weight
  generally accepted as its correct shipping weight plus 100 pounds.
         [(d)     In this section, "private bus" has the meaning assigned
  by Section 502.294.]
         SECTION 125.  Section 502.162, Transportation Code, as
  effective September 1, 2011, is transferred to Subchapter F,
  Chapter 502, Transportation Code, redesignated as Section 502.253,
  Transportation Code, and amended to read as follows:
         Sec. 502.253 [502.162].  FEE: VEHICLES THAT WEIGH MORE THAN
  6,000 POUNDS. [(a)] The fee for a registration year for
  registration of a vehicle with a gross weight of more than 6,000
  pounds is as follows unless otherwise provided in this chapter:
 
Weight Classification Fee Schedule
 
in pounds
 
6,001-10,000 $54.00
 
10,001-18,000 $110.00
 
18,001-25,999 $205.00
 
26,000-40,000 $340.00
 
40,001-54,999 $535.00
 
55,000-70,000 $740.00
 
70,001-80,000 $840.00
         [(b)     The gross weight of a vehicle is the actual weight of
  the vehicle, fully equipped with a body and other equipment, as
  certified by a public weigher or a license and weight inspector of
  the Department of Public Safety, plus its net carrying capacity.
         [(c)     The net carrying capacity of a vehicle other than a bus
  is the heaviest net load to be carried on the vehicle, but not less
  than the manufacturer's rated carrying capacity.
         [(d)     The net carrying capacity of a bus is computed by
  multiplying its seating capacity by 150 pounds. The seating
  capacity of a bus is:
               [(1)     the manufacturer's rated seating capacity,
  excluding the operator's seat; or
               [(2)     if the manufacturer has not rated the vehicle for
  seating capacity, a number computed by allowing one passenger for
  each 16 inches of seating on the bus, excluding the operator's
  seat.]
         SECTION 126.  Section 502.166, Transportation Code, as
  effective September 1, 2011, is transferred to Subchapter F,
  Chapter 502, Transportation Code, redesignated as Section 502.254,
  Transportation Code, and amended to read as follows:
         Sec. 502.254 [502.166].  FEE: TRAILER, TRAVEL TRAILER, OR
  SEMITRAILER. (a) The fee for a registration year for registration
  of a trailer, travel trailer, or semitrailer with a gross weight of
  6,000 pounds or less is $45.00.
         (b) [(a-1)]  The fee for a registration year for
  registration of a trailer, travel trailer, or semitrailer with a
  gross weight of more than 6,000 pounds is calculated by gross weight
  according to Section 502.253 [502.162].
         [(b)     The gross weight of a trailer or semitrailer is the
  actual weight of the vehicle, as certified by a public weigher or a
  license and weight inspector of the Department of Public Safety,
  plus its net carrying capacity.
         [(c)     The net carrying capacity of a vehicle is the heaviest
  net load to be carried on the vehicle, but not less than the
  manufacturer's rated carrying capacity.
         [(d)     The department may issue specially designed license
  plates for rental trailers and travel trailers that include, as
  appropriate, the words "rental trailer" or "travel trailer."
         [(e)  In this section:
               [(1)     "Rental fleet" means five or more vehicles that
  are:
                     [(A)  owned by the same owner;
                     [(B)     offered for rent or rented without drivers;
  and
                     [(C)     designated by the owner in the manner
  prescribed by the department as a rental fleet.
               [(2)  "Rental trailer" means a utility trailer that:
                     [(A)     has a gross weight of 4,000 pounds or less;
  and
                     [(B)  is part of a rental fleet.
               [(3)     "Travel trailer" means a house trailer-type
  vehicle or a camper trailer that is:
                     [(A)     less than eight feet in width or 40 feet in
  length, exclusive of any hitch installed on the vehicle; and
                     [(B)     designed primarily for use as temporary
  living quarters in connection with recreational, camping, travel,
  or seasonal use and not as a permanent dwelling; provided that
  "travel trailer" shall not include a utility trailer, enclosed
  trailer, or other trailer not having human habitation as its
  primary purpose.]
         SECTION 127.  Section 502.167, Transportation Code, as
  effective September 1, 2011, is transferred to Subchapter F,
  Chapter 502, Transportation Code, redesignated as Section 502.255,
  Transportation Code, and amended to read as follows:
         Sec. 502.255 [502.167].  TRUCK-TRACTOR OR COMMERCIAL MOTOR
  VEHICLE COMBINATION FEE; SEMITRAILER TOKEN FEE.  (a) This section
  applies only to a truck-tractor or commercial motor vehicle with a
  gross weight of more than 10,000 pounds that is used or is to be used
  in combination with a semitrailer that has a gross weight of more
  than 6,000 pounds.
         (b)  The fee for a registration year for registration of a
  truck-tractor or commercial motor vehicle is calculated by gross
  weight according to Section 502.253 [502.162].
         (c)  The fee for a registration year for registration of a
  semitrailer used in the manner described by Subsection (a),
  regardless of the date the semitrailer is registered, is:
               (1)  $30, for a semitrailer being propelled by a power
  unit for which a permit under Section 623.011 has been issued; or
               (2)  $15, for a semitrailer being propelled by a power
  unit for which a permit under Section 623.011 has not been issued.
         (d)  A registration made under Subsection (c) is valid only
  when the semitrailer is used in the manner described by Subsection
  (a).
         (e)  For registration purposes, a semitrailer converted to a
  trailer by means of an auxiliary axle assembly retains its status as
  a semitrailer.
         (f)  A combination of vehicles may not be registered under
  this section for a combined gross weight of less than 18,000 pounds.
         (g)  This section does not apply to:
               (1)  a combination of vehicles that includes a vehicle
  that has a distinguishing license plate under Section 502.146 
  [504.504];
               (2)  a truck-tractor or commercial motor vehicle
  registered or to be registered with $5 distinguishing license
  plates for which the vehicle is eligible under this chapter;
               (3)  a truck-tractor or commercial motor vehicle used
  exclusively in combination with a semitrailer of the travel trailer 
  [housetrailer] type; or
               (4)  a vehicle registered or to be registered:
                     (A)  with a temporary registration permit;
                     (B)  under Section 502.433 [502.163]; or
                     (C)  under Section 502.435 [502.188].
         (h)  The department may adopt rules to administer this
  section.
         (i)  The department may issue specially designed license
  plates for token trailers.
         (j)  A person may register a semitrailer under this section
  [for a registration period of five consecutive years] if the
  person:
               (1)   applies to the department for [the five-year]
  registration;
               (2)  provides proof of the person's eligibility to
  register the vehicle under this subsection as required by the
  department; and
               (3)  pays a fee of $15, plus any applicable fee under
  Section 502.401 [502.172], for each year included in the
  registration period.
         [(k)     If during the five-year registration period for a
  vehicle registered under Subsection (j) the amount of a fee imposed
  under that subsection is increased, the owner of the vehicle is
  liable to the department for the amount of the increase. If the
  amount of a fee is decreased, the owner of the vehicle is not
  entitled to a refund.
         [(l)  In this section:
               [(1)     "Combined gross weight" means the empty weight of
  the truck-tractor or commercial motor vehicle combined with the
  empty weight of the heaviest semitrailer used or to be used in
  combination with the truck-tractor or commercial motor vehicle plus
  the heaviest net load to be carried on the combination during the
  registration year.
               [(2)     "Empty weight" means the unladen weight of the
  truck-tractor or commercial motor vehicle and semitrailer
  combination fully equipped, as certified by a public weigher or
  license and weight inspector of the Department of Public Safety.
               [(3)  "Token trailer" means a semitrailer that:
                     [(A)     has a gross weight of more than 6,000
  pounds; and
                     [(B)     is operated in combination with a truck or a
  truck-tractor that has been issued:
                           [(i)  an apportioned license plate;
                           [(ii)  a combination license plate; or
                           [(iii)  a forestry vehicle license plate.
               [(4)     "Apportioned license plate" means a license plate
  issued in lieu of truck license plates or combination license
  plates to a motor carrier in this state who proportionally
  registers a vehicle owned by the carrier in one or more other
  states.
               [(5)     "Combination license plate" means a license plate
  issued for a truck or truck-tractor that:
                     [(A)     has a manufacturer's rated carrying
  capacity of more than one ton; and
                     [(B)     is used or intended to be used in
  combination with a semitrailer that has a gross weight of more than
  6,000 pounds.]
         SECTION 128.  Section 502.165, Transportation Code, as
  effective September 1, 2011, is transferred to Subchapter F,
  Chapter 502, Transportation Code, redesignated as Section 502.256,
  Transportation Code, and amended to read as follows:
         Sec. 502.256 [502.165].  FEE: ROAD TRACTOR. The fee for a
  registration year for registration of a road tractor is the fee
  prescribed by weight as certified by a public weigher or a license
  and weight inspector of the Department of Public Safety under
  Section 502.252 [502.161] or 502.253 [502.162], as applicable.
         SECTION 129.  The heading to Subchapter G, Chapter 502,
  Transportation Code, is amended to read as follows:
  SUBCHAPTER G. ADDITIONAL FEES [TEMPORARY REGISTRATION]
         SECTION 130.  Section 502.1705, Transportation Code, as
  effective September 1, 2011, is transferred to Subchapter G,
  Chapter 502, Transportation Code, redesignated as Section 502.356,
  Transportation Code, and amended to read as follows:
         Sec. 502.356 [502.1705].  [ADDITIONAL FEE FOR] AUTOMATED
  REGISTRATION AND TITLING [TITLE] SYSTEM. (a) In addition to other
  registration fees for a license plate or set of license plates or
  other device used as the registration insignia, a fee of $1 shall be
  collected.
         (b)  The department may use money collected under this
  section to provide for or enhance:
     &