TITLE 43. TRANSPORTATION

PART 10. TEXAS DEPARTMENT OF MOTOR VEHICLES

CHAPTER 215. MOTOR VEHICLE DISTRIBUTION

The Texas Department of Motor Vehicles adopts the repeal of §215.102, Representatives; amendments to §215.133, General Distinguishing Number; and new §215.161, Licensing Education Course Requirements. The department adopts amendments to §215.133 with a change to the proposed text as published in the August 23, 2019, issue of the Texas Register (44 TexReg 4462). A comma in §215.133(j)(1) was changed to a semicolon. New §215.161 is adopted with changes to the proposed text as published in the same issue of the Texas Register. Section 215.161(c) has been amended to reduce the minimum number of training hours required to 3 for renewal applicants not exempted from the training requirement. Sections 215.133 and 215.161 will be republished.

REASONED JUSTIFICATION. The repeal, amendments, and new section are necessary to implement statutory changes made by the 86th Legislature, Regular Session (2019) in House Bill (HB) 3842, HB 1667; and Senate Bill (SB) 604, 86th Legislature, Regular Session.

The repeal of §215.102, Representatives, implements SB 604, which eliminates the "representative" license.

Amended §215.133(a) implements Transportation Code §503.027(a), as amended by HB 3842. House Bill 3842 removed the exception under Transportation Code §503.027(a), that provided a dealer is not required to hold a general distinguishing number (GDN) for a location from which the dealer consigns five or fewer vehicles in a calendar year. The phrase "unless the consignment location is a wholesale motor vehicle auction" was added to conform to Transportation Code §503.027(a).

New §215.133(j) implements HB 1667. House Bill 1667 added Occupations Code §2302.009, and amended §2302.101, to provide that a person holding an independent motor vehicle GDN is exempt from the requirement that the person also hold a salvage dealer license to act as a salvage vehicle dealer or rebuilder, or store or display a motor vehicle as an agent or escrow agent of an insurance company.

New §215.133(k) implements SB 604 that added new Transportation Code §503.0296 to require an applicant for an original or renewal general distinguishing number complete web-based education and training developed or approved by the department. New §215.133(k) requires that a person must complete licensing training developed or approved by the department to be eligible for an independent motor vehicle GDN. Persons who have completed the required training will not have to retake the training for subsequent renewals. Persons who have held an independent motor vehicle distinguishing number for at least ten years as of September 1, 2019, are exempt from the licensing training requirement.

New §215.161, Licensing Education Course Requirements, implements SB 604 by adding licensing education course requirements applicable to course providers.

SUMMARY OF COMMENTS AND AGENCY RESPONSE.

Commenters: The department received 15 written comments. Dallas County Tax Assessor-Collector, Lubbock County Tax Assessor-Collector, Milam County Tax Assessor-Collector, Brewster County Tax Assessor-Collector, Denton County Tax Assessor-Collector, Lampasas County Tax Assessor-Collector, Zavala County Tax Assessor-Collector, El Paso County Tax Assessor-Collector, Scurry County Tax Assessor-Collector, Jackson County Tax Assessor-Collector, Lavaca County Tax Assessor-Collector, Comal County Tax Assessor-Collector, Grimes County Tax Assessor-Collector, the Tax Assessor-Collector Association of Texas, and the Texas Independent Automobile Dealers Association (TIADA) were in support of the proposal with changes.

Comment on §215.133(a). One commenter supports the clarifying amendment in which "a dealer must also hold a GDN for a consignment location, unless the consignment location is a wholesale motor vehicle auction."

Agency Response. The department thanks the commenter for its support.

Comment on §215.133(j). One commenter supports adoption of new section (j), which will allow an independent motor vehicle dealer to also act as a salvage dealer or rebuilder without the need for an additional license.

Agency Response. The department thanks the commenter for its support.

Comment on §215.133(k). One commenter supports new section (k), relating to educational requirements for persons or entities seeking to obtain a motor vehicle general distinguishing number license.

Agency Response. The department thanks the commenter for its support.

Comment on §215.133(k)(2). One commenter asks for clarification regarding subsection (k)(2) for persons or independent auto dealerships seeking renewal of a GDN license, but are not otherwise exempt (10 year). The commenter asks that a renewal license holder not be required to take the same class as a prospective licensee as it is redundant. The commenter also requests that alternative curriculum be made available for approval by the Department that is narrower in scope and shorter in duration, for example 30 minutes to an hour.

Agency Response. The department agrees that current license holders with established businesses do not need training on how to set up a new dealership and do not need the same number of training hours as new applicants, but disagrees with changing the duration to 30 minutes to an hour. The department amended §215.161(c) in response to the comment to reduce the minimum requirement to 3 hours of training for renewal applicants not exempted from the training requirement.

Comment on §215.133(k)(2). One commenter requests that state motor vehicle trade associations be allowed to present renewal education or training opportunities with classroom equivalent if such classroom sessions are approved by the Department in advance.

Agency Response. The department declines to make the suggested change. Senate Bill 604, 86th Legislature, Regular Session (2019) provides that the department must require web-based education and training. Allowing renewal education or training opportunities to have a classroom equivalent would not be consistent with SB 604.

Comment on §215.161. Commenters offer support for proposed §215.161. Pre-licensing training has been an item long supported by many different parties, including County Tax Assessor-Collectors. By implementing this training, commenters believe the department will see a drop off in the number of dealers that obtain licenses for one year or less and close their doors because they are not prepared for the regulatory compliance requirements and responsibilities.

Agency Response. The department appreciates the supportive comment.

Comment on §215.161. A commenter supports the department offering pre-licensing educational training prior to the issuance of dealer licensees to ensure a proper knowledge base in the laws and regulations governing the motor vehicle industry. Protecting the public from deceptive business practices and other issues related to the motor vehicle industry is in the best interest of the motoring public as well as the tax assessor-collectors of Texas.

Agency Response. The department appreciates the supportive comment.

Comment on §215.161. Commenters request that the department work with the Auto Dealer Trade Associations and Tax Assessor-Collector Association of Texas to develop meaningful training that provides the best content possible for services performed and required by an independent motor vehicle dealer. Commenters request that the training include content on how dealers can work effectively with the county offices to title and register vehicles properly, accurately, and timely.

Agency Response. The department agrees that an important outcome of the training is educating potential and current license holders on how to work effectively with the county tax offices to efficiently and correctly process motor vehicle titles and registrations. The department will provide the County Tax Assessor-Collectors an opportunity to review the proposed training and provide feedback prior to department course approval.

Comment on §215.161. One commenter requested that the training include the proper processing of VTR-136 forms to ensure county taxes go to the buyer's choice of county.

Agency Response. The department agrees that this issue is an important one, especially to rural counties, and that topic will be included in the training.

SUBCHAPTER D. FRANCHISED DEALERS, MANUFACTURERS, DISTRIBUTORS, AND CONVERTERS

43 TAC §215.102

STATUTORY AUTHORITY.

The repeal is adopted under Transportation Code §503.002, which authorizes the board of the Texas Department of Motor Vehicles to adopt rules for the administration of Transportation Code Chapter 503; under Transportation Code, §1002.001, which requires and authorizes the department to administer and enforce the provisions of the Occupations Code Chapter 2301; under Transportation Code §1002.001, which authorizes the board to adopt rules necessary and appropriate to implement the powers and duties of the department under the Transportation Code and other Texas laws; under Occupations Code §§2301.151 - 2301.153 and 2301.155, which provide the board's jurisdiction, require the board to ensure that the regulation of motor vehicles in Texas is conducted as required by board rules, empower, authorize, and require the board to adopt rules under Occupations Code Chapter 2301, necessary or convenient to administer Chapter 2301, and govern practice and procedure before the board; and under Occupations Code §2301.351, which prohibits a dealer from violating a board rule.

CROSS REFERENCE TO STATUTE. Transportation Code Chapter 1002.

§215.102.Representatives.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on February 10, 2020.

TRD-202000529

Tracey Beaver

General Counsel

Texas Department of Motor Vehicles

Effective date: March 1, 2020

Proposal publication date: August 23, 2019

For further information, please call: (512) 465-5665


SUBCHAPTER E. GENERAL DISTINGUISHING NUMBERS

43 TAC §215.133, §215.161

STATUTORY AUTHORITY.

The amendments and new section are adopted under Transportation Code §503.002, which authorizes the board of the Texas Department of Motor Vehicles to adopt rules for the administration of Transportation Code Chapter 503; under Transportation Code §1002.001, which requires and authorizes the department to administer and enforce the provisions of Occupations Code Chapter 2301; under Transportation Code §1002.001, which authorizes the board to adopt rules necessary and appropriate to implement the powers and duties of the department under the Transportation Code and other Texas laws; under Occupations Code §§2301.151 - 2301.153 and 2301.155, which provide the board's jurisdiction, require the board to ensure that the regulation of motor vehicles in Texas is conducted as required by board rules, empower, authorize, and require the board to adopt rules under Occupations Code Chapter 2301, necessary or convenient to administer Chapter 2301, and govern practice and procedure before the board; and under Occupations Code §2301.351, which prohibits a dealer from violating a board rule.

CROSS REFERENCE TO STATUTE. Occupations Code §§2301.251, 2301.258, 2301.264, 2301.304, 2302.009 and §2302.101; and Transportation Code §503.027 and §503.0296.

§215.133.General Distinguishing Number.

(a) No person may engage in business as a dealer unless that person has a currently valid general distinguishing number assigned by the department for each location from which the person engages in business. A dealer must also hold a general distinguishing number for a consignment location, unless the consignment location is a wholesale motor vehicle auction.

(b) The provisions of subsection (a) of this section do not apply to:

(1) a person who sells or offers for sale fewer than five vehicles of the same type as herein described in a calendar year and such vehicles are owned by him and registered and titled in his name;

(2) a person who sells or offers to sell a vehicle acquired for personal or business use if the person does not sell or offer to sell to a retail buyer and the transaction is not held for the purpose of avoiding the provisions of Transportation Code, §503.001 et seq., and this subchapter;

(3) an agency of the United States, this state, or local government;

(4) a financial institution or other secured party selling a vehicle in which it holds a security interest, in the manner provided by law for the forced sale of that vehicle;

(5) a receiver, trustee, administrator, executor, guardian, or other person appointed by or acting pursuant to the order of a court;

(6) an insurance company selling a vehicle acquired from the owner as the result of paying an insurance claim;

(7) a person selling an antique passenger car or truck that is at least 25 years old or a collector selling a special interest motor vehicle as defined in Transportation Code, §683.077, if the special interest vehicle is at least 12 years old;

(8) a licensed auctioneer who, as a bid caller, sells or offers to sell property to the highest bidder at a bona fide auction if neither legal nor equitable title passes to the auctioneer and if the auction is not held for the purpose of avoiding another provision of Transportation Code, §503.001 et seq., and this subchapter; and provided that if an auction is conducted of vehicles owned, legally or equitably, by a person who holds a general distinguishing number, the auction may be conducted only at a location for which a general distinguishing number has been issued to that person or at a location approved by the department as provided in §215.135 of this subchapter (relating to More than One Location); and

(9) a person who is a domiciliary of another state and who holds a valid dealer license and bond, if applicable, issued by an agency of that state, when the person buys a vehicle from, sells a vehicle to, or exchanges vehicles with a person who:

(A) holds a current valid general distinguishing number issued by the department, if the transaction is not intended to avoid the terms of Transportation Code, §503.001 et seq.; or

(B) is a domiciliary of another state if the person holds a valid dealer license and bond, if applicable, issued by that state, and if the transaction is not intended to avoid the terms of Transportation Code, §503.001 et seq.

(c) Application for a general distinguishing number shall be on a form prescribed by the department properly completed by the applicant showing all information requested thereon and shall be submitted to the department accompanied by the following:

(1) proof of a $25,000 surety bond as provided in §215.137 of this title (relating to Surety Bond);

(2) the fee for the general distinguishing number as prescribed by law for each type of license requested;

(3) the fee as prescribed by law for each metal dealer plate requested as prescribed by law;

(4) a copy of each assumed name certificate on file with the Office of the Secretary of State or county clerk; and

(5) a photocopy of at least one of the following documents for the owner, president, or managing partner of the dealership:

(A) current driver's license;

(B) current Department of Public Safety identification;

(C) current concealed handgun license or license to carry a handgun issued by the Texas Department of Public Safety under Government Code, Chapter 411, Subchapter H;

(D) current passport; or

(E) current United States armed forces identification.

(d) A person who applies for a general distinguishing number and will operate as a dealer under a name other than the name of that person shall use the name under which that person is authorized to do business, as filed with the Office of the Secretary of State or county clerk, and the assumed name of such legal entity shall be recorded on the application using the letters "DBA."

(e) If the general distinguishing number is issued to a corporation, the dealer's name and assumed name used by the dealer, as on file with the Office of the Secretary of State, shall be recorded on the application.

(f) A wholesale dealer license holder may buy, sell, or exchange vehicles with licensed dealers. A wholesale dealer license holder may not sell or exchange vehicles at retail.

(g) An independent mobility motor vehicle dealer shall retain and produce for inspection all records relating to the license requirements under Occupations Code, §2301.002(17-a) and all information and records required under Transportation Code §503.0295.

(h) An application for a general distinguishing number may be denied if an applicant for such license has committed any act that could result in license cancellation or revocation under Transportation Code, §503.001 et seq.; Occupations Code, §2301.001 et seq.; or any rule or regulation of the department.

(i) Upon request by the department, the applicant shall submit documents demonstrating that the applicant owns the real property on which the business is situated or has a written lease for the property that has a term of not less than the term of the license.

(j) A person holding an independent motor vehicle general distinguishing number license does not have to hold a salvage dealer license to:

(1) act as a salvage vehicle dealer or rebuilder; or

(2) store or display a motor vehicle as an agent or escrow agent of an insurance company.

(k) To be eligible for an independent motor vehicle general distinguishing number license, a person must complete licensing training specified by the department, except as provided herein:

(1) once a person has completed the required training, the person will not have to retake the training for subsequent license renewals, but may be required to provide proof of training completion as part of the license renewal process; and

(2) a person holding an independent motor vehicle general distinguishing number license for at least 10 years as of September 1, 2019, is exempt from the licensing training requirement.

§215.161.Licensing Education Course Requirements.

(a) A motor vehicle dealer licensing education course provider must be a Texas institution of higher education, as defined by Education Code, §61.003, or a motor vehicle trade association domiciled in this state.

(b) The licensing education course must be approved by the department and must include information on the laws and rules applicable to motor vehicle dealers and the consequences of violating those laws and rules.

(c) The licensing education course must consist of at least 6 hours of online instruction for new applicants and 3 hours of online instruction for renewal applicants.

(d) The cost for the licensing education course must not exceed $150 per person. A trade association course provider may not charge a different rate to a nonmember.

(e) The course provider must issue a certificate of completion to each person who successfully completes the licensing education course.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on February 10, 2020.

TRD-202000527

Tracey Beaver

General Counsel

Texas Department of Motor Vehicles

Effective date: March 1, 2020

Proposal publication date: August 23, 2019

For further information, please call: (512) 465-5665


CHAPTER 217. VEHICLE TITLES AND REGISTRATION

The Texas Department of Motor Vehicles adopts amendments to 43 TAC §§217.2, 217.45, and 217.46, concerning the definitions of moped, off-highway vehicle, sand rail, and utility vehicle or UTV; unregistered off-highway vehicle license plates and the fee for the license plates; and disabled veteran and other license plates for custom vehicles, street rods and certain exhibition vehicles. The department adopts amendments to §§217.2, 217.45, and 217.46 without changes to the proposed text as published in the August 30, 2019, issue of the Texas Register (44 TexReg 4667). These rules will not be republished.

REASONED JUSTIFICATION. The amendments to §§217.2, 217.45, and 217.46, are necessary to implement House Bill (HB) 1548 86th Legislature, Regular Session (2019); HB 1755, 86th Legislature, Regular Session (2019); HB 3068, 86th Legislature, Regular Session (2019); and HB 3171, 86th Legislature, Regular Session (2019).

The amendments to §217.2 are necessary to implement HB 1548, HB 1755, and HB 3171. House Bill 1548 transferred Transportation Code Chapter 663, Subchapters A and B, to new Transportation Code Chapter 551A. House Bill 1548 amended the definition of "motor vehicle" in Transportation Code §501.002 by adding a reference to "off-highway vehicle" as defined by Transportation Code §551A.001 and eliminating the references to "all-terrain vehicle" and "recreational off-highway vehicle." Transportation Code §551A.001 as added by HB 1548 defines "off-highway vehicle" as an all-terrain vehicle, recreational off-highway vehicle, or utility vehicle.

House Bill 1755 amended Transportation Code §663.001 to add a definition of "sand rail," and also amended the Transportation Code §663.001 definition of "off-highway vehicle" to include the term sand rail. The HB 1755 definition of sand rail and the amended definition of off-highway vehicle were also transferred by HB 1548 to Transportation Code §551A.001. As a result of HB 1548 and HB 1755, an off-highway vehicle under Transportation Code §551A.001 is defined as an all-terrain vehicle, recreational off-highway vehicle, utility vehicle, or sand rail.

In addition, HB 3171 amended the Transportation Code §541.201 definition of "moped" to state that a moped is a motor vehicle.

Because of the described statutory changes in HB 1548, HB 1755, and HB 3171, the amendments to §217.2 make necessary updates to statutory references in the definitions of "all-terrain vehicle" and "recreational off-highway vehicle," and add new definitions of "off-highway vehicle," "utility vehicle," and "sand rail" by reference to the definitions in Transportation Code §551A.001. In addition, the phrase "a motor vehicle as defined by" is added to the definitions of moped, off-highway vehicle, sand rail, and utility vehicle or UTV, under amended §217.2(14), (18), (22), and (25), for consistency with existing definitions of "all-terrain vehicle or ATV" and "recreational off-highway vehicle or ROV" and because the statutory definition of "motor vehicle" under Transportation Code §501.002, as amended, includes a moped and an off-highway vehicle. The definition of utility vehicle or UTV also references definition of "golf cart," which HB 1548 moved from Transportation Code §502.001 to Transportation Code §551.401. Amendments to §217.2 also renumber the paragraphs.

The amendments to §217.45 are necessary to implement HB 1548 and HB 3068. House Bill 1548 requires the department to establish, by rule, a procedure for issuance of license plates to golf carts and unregistered off-highway vehicles, and authorizes the department to charge a fee of up to $10 to cover the costs of issuing the plates. The phrase "off-highway vehicle" is defined in Transportation Code §551A.001, under HB 1548 as discussed in this adoption.

House Bill 3068 provides, in part, that a person who qualifies for a disabled veteran license plate under Transportation Code §504.202 may use an embossed Texas disabled veteran license plate on a classic motor vehicle, custom vehicle, street rod, and on certain exhibition vehicles as defined by Transportation Code §504.501 and §504.502. The embossed disabled veteran license plate must have been issued in the same year as the model year of the vehicle and be approved for use by the department. House Bill 3068 also provides that any person may use a Texas license plate that is embossed with an alphanumeric pattern of a plate design that was issued the same year as the model year of the vehicle for vehicles that meet the requirements of the same two sections (Transportation Code §504.501 and §504.502).

The amendments to §217.45 make necessary updates to implement HB 1548. The amendment to §217.45(a) adds a reference to new Transportation Code Chapter 551A as added by HB 1548.

The amendment to §217.45(c)(3)(B) adds the phrase "off-highway vehicle," because Transportation Code §551A.052 authorizes the department to establish a procedure to issue license plates to unregistered off-highway vehicles by rule. In addition, Transportation Code §551A.052(b) allows a person to operate an unregistered off-highway vehicle on a highway in a manner authorized by Transportation Code Chapter 551A, Subchapter D, only if the vehicle displays a license plate issued under Transportation Code §551A.052. The existing requirement in §217.27(b) that a vehicle display two license plates is applicable to vehicles registered under Transportation Code Chapter 502.

The amendment to §217.45(c)(7)(E) adds the phrase "off-highway vehicle," because license plates for off-highway vehicles are authorized by Transportation Code Chapter 551. Personalized license plates are authorized by Transportation Code §504.0051 and §504.101. As such, license plates for off-highway vehicles are not eligible for personalization.

The amendment to §217.45(c)(7)(E) adds the phrase "off-highway vehicle," because under Transportation Code §551A.052(d), off-highway vehicle license plates are only authorized for off-highway vehicles, do not expire, and may not be used by a subsequent owner of an off-highway vehicle. In addition, license plates are only eligible for transfer if the vehicle is a passenger vehicle with a gross weight of 6,000 pounds or less or a light truck with a gross weight of 10,000 pounds or less. Passenger vehicles and light trucks are defined in Transportation Code §502.001 by reference to Transportation Code §541.201.

The amendments to §217.45 also add new §217.45(k) to establish the process by which a county tax assessor-collector may issue an off-highway vehicle license plate and sets the fee for an off-highway vehicle license plate. The fee for an off-highway license plate is $10, which is the same fee charged for a license plate for a golf cart under existing §217.45(j). This fee is appropriate because the standard cost for the department to produce a license plate is $8. However, this cost does not include programming and the cost of the receipt. Setting the fee at $10 will account for all costs associated with issuance of the plate.

The amendments to §217.45 make necessary updates to implement HB 3068. The amendment to §217.45(c)(2)(A)(ii) creates an exception that will allow the use of disabled veteran embossed license plates on classic motor vehicles, custom vehicles, street rods, and certain exhibition vehicles by a disabled veteran as authorized in Transportation Code §504.202.

The amendment to §217.46 is necessary to implement HB 3171, which amended the definition of "commercial motor vehicle" in Transportation Code §502.001(7) to exclude "moped." The amendment to §217.46(a) adds a reference to moped for consistency with Transportation Code §502.001(7) as amended by House Bill 3171.

Additionally, the department adopts nonsubstantive changes throughout the text of §§217.2, 217.45, and 217.46. These nonsubstantive changes include reformatting and updating citations.

In conjunction with amending these rules, the department is also reconfiguring its internal systems. Therefore, the effective dates of the rules may be extended to correspond with completion of the programming necessary to fully implement the rules.

SUMMARY OF COMMENTS.

No comments on the amendments were received.

SUBCHAPTER A. MOTOR VEHICLE TITLES

43 TAC §217.2

STATUTORY AUTHORITY. The department adopts amendments to §217.2 under Transportation Code §§501.0041, 502.0021, 504.0011 and 1002.001.

Transportation Code §501.0041 authorizes the department to adopt rules to administer Chapter 501.

Transportation Code §502.0021 authorizes the department to adopt rules to administer Chapter 502.

Transportation Code §504.0011 authorizes the board of the Texas Department of Motor Vehicles to adopt rules to implement and administer Chapter 504.

Transportation Code §1002.001 authorizes the board to adopt rules that are necessary and appropriate to implement the powers and the duties of the department.

CROSS REFERENCE TO STATUTE. Transportation Code §§501.002, 502.001, 542.201, 551.401, and 551A.001.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on February 10, 2020.

TRD-202000543

Tracey Beaver

General Counsel

Texas Department of Motor Vehicles

Effective date: March 1, 2020

Proposal publication date: August 30, 2019

For further information, please call: (512) 465-5665


SUBCHAPTER B. MOTOR VEHICLE REGISTRATION

43 TAC §217.45, §217.46

STATUTORY AUTHORITY. The department adopts amendments to §217.45 and §217.46 under Transportation Code §§501.0041, 502.0021, 504.0011, 504.002, 551.402, 551A.052, and 1002.001.

Transportation Code §501.0041 authorizes the department to adopt rules to administer Chapter 501.

Transportation Code §502.0021 authorizes the department to adopt rules to administer Chapter 502.

Transportation Code §504.0011 authorizes the board of the Texas Department of Motor Vehicles to adopt rules to implement and administer Chapter 504.

Transportation Code §504.002 authorizes the department to charge a fee to cover the costs of issuing license plates for golf carts or off-highway vehicles in an amount established by rule.

Transportation Code §551.402 requires the department to adopt rules establishing a procedure to issue license plates for golf carts and charge a fee not to exceed $10.

Transportation Code §551A.052 requires the department to adopt rules establishing a procedure to issue license plates for unregistered off-highway vehicles and charge a fee not to exceed $10.

Transportation Code §1002.001 authorizes the board to adopt rules that are necessary and appropriate to implement the powers and the duties of the department.

CROSS REFERENCE TO STATUTE. Transportation Code §§501.002, 502.001, 504.202, 504.202, 504.501, 541.201, 542.201, 551.401, 551.402, and 551A.052.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on February 10, 2020.

TRD-202000545

Tracey Beaver

General Counsel

Texas Department of Motor Vehicles

Effective date: March 1, 2020

Proposal publication date: August 30, 2019

For further information, please call: (512) 465-5665


CHAPTER 217. VEHICLE TITLES AND REGISTRATION

The Texas Department of Motor Vehicles adopts new 43 TAC §217.16 and an amendment to 43 TAC §217.40 concerning applications for title when a dealer goes out of business. The department adopts new §217.16 and the amendment to §217.40 without changes to the proposed text as published in the August 30, 2019, issue of the Texas Register (44 TexReg 4680). These rules will not be republished.

REASONED JUSTIFICATION. The new §217.16 and amendment to §217.40 are necessary to implement House Bill 3842, 86th Legislature, Regular Session (2019). House Bill 3842 requires the department to adopt rules to permit a person to apply for title if an out of business dealer failed to apply for title as required by Transportation Code, §501.0234. House Bill 3842 also authorizes the department to waive fees for a title, if the purchaser can show that fees for a title were paid to the dealer, and the fee for one 30-day permit.

The new §217.16 is necessary to implement HB 3842. Section 217.16(a) establishes the process for a person to apply for a title if the person purchased a vehicle from a dealer who is required to apply for title, but did not because the dealer went out of business. Section 217.16(b) provides that a dealer is considered out of business if the dealer's license has been closed or has expired, or if operations have ceased at the licensed location as determined by the department. Section 217.16(c) is necessary to allow a person to obtain a letter on department letterhead stating the dealer has gone out of business. The purpose of the letter is to confirm the dealer is out of business, regardless of whether the dealer's license has closed or expired or operations have ceased at the licensed location as determined by the department, and authorize a county tax assessor-collector to waive fees in accordance with §217.16(f). A purchaser may request the letter by contacting the department, including a Regional Service Center, or a county tax assessor-collector's office by email, phone, or in-person. The department also has an online complaint entry system for the public that provides status updates on the submitted complaint that may be used to request the letter. The department may be contacted directly weekdays between 8:00 a.m. and 4:30 p.m. at (888) 368-4689 for questions regarding a complaint submission, or a customer may go into the online system to find out the status of the submission. Additionally, once the department is made aware of a dealer closure through an initial customer's request for a letter, individuals requesting a letter could receive a letter very quickly as subsequent requests would not require additional research on the dealer. The department's Regional Service Center staff will coordinate issuance of the letter to the customer. Section 217.16(d) requires an applicant to comply with all requirements for title application under §217.4, Initial Application for Title, except that an applicant may provide either the sales contract, retail installment agreement, or buyer's order in lieu of the assigned manufacturer's certificate of origin or title required under §217.5(a), Evidence of Motor Vehicle Ownership. The applicant must also provide the letter stating the dealer has gone out of business, but is not required to provide a release of lien if the only recorded lienholder is the dealer that has gone out of business. The applicant will have their transaction completed at the county tax assessor-collector's office at the time they submit their application if the proper documentation is presented. Section 217.16(e) provides that a title application under the new section must include a properly completed odometer disclosure statement, if applicable, or the odometer brand will be recorded as "NOT ACTUAL MILEAGE." Lastly, §217.16(f) provides that the department will waive the title application fee, the delinquent transfer penalty, all fees under Transportation Code, Chapter 502, and the buyer's temporary tag fee.

The amendment to §217.40 is necessary to implement HB 3842. The amendment to §217.40 allows for waiver of the fee for one 30-day permit if the applicant is exempt from payment of fees under Transportation Code, §501.0236, and provides the letter on department letterhead stating the dealer has gone out of business.

SUMMARY OF COMMENTS.

No comments were received.

SUBCHAPTER A. MOTOR VEHICLE TITLES

43 TAC §217.16

STATUTORY AUTHORITY. The department adopts new §217.16 under Transportation Code, §§501.0236(f), 502.401(g), 502.402(f), 520.003, and 1002.001.

Transportation Code, §501.0236(f) requires the department to adopt rules necessary to implement the section.

Transportation Code, §502.401(g) authorizes the department to adopt rules necessary to administer registration for a vehicle being registered in a county imposing a fee under the section. Transportation Code, §502.402(f) authorizes the department to adopt rules necessary to administer registration for a vehicle being registered in a county imposing a fee under the section.

Transportation Code, §520.003 allows the department to adopt rules to administer Transportation Code, Chapter 520, including rules that waive the payment of fees if a dealer has gone out of business and the applicant can show that fees were paid to the dealer.

Transportation Code, §1002.001 authorizes the board of the Texas Department of Motor Vehicles with the authority to adopt rules that are necessary and appropriate to implement the powers and the duties of the department.

CROSS REFERENCE TO STATUTE. Transportation Code, Chapters 501, 502, 503, and §520.003.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on February 10, 2020.

TRD-202000549

Tracey Beaver

General Counsel

Texas Department of Motor Vehicles

Effective date: March 1, 2020

Proposal publication date: August 30, 2019

For further information, please call: (512) 465-5665


SUBCHAPTER B. MOTOR VEHICLE REGISTRATION

43 TAC §217.40

STATUTORY AUTHORITY. The department adopts the amendment to §217.40 under Transportation Code, §§501.0236(f), 502.401(g), 502.402(f), 520.003, and 1002.001.

Transportation Code, §501.0236(f) requires the department to adopt rules necessary to implement the section.

Transportation Code, §502.401(g) authorizes the department to adopt rules necessary to administer registration for a vehicle being registered in a county imposing a fee under the section. Transportation Code, §502.402(f) authorizes the department to adopt rules necessary to administer registration for a vehicle being registered in a county imposing a fee under the section.

Transportation Code, §520.003 allows the department to adopt rules to administer Transportation Code, Chapter 520, including rules that waive the payment of fees if a dealer has gone out of business and the applicant can show that fees were paid to the dealer.

Transportation Code, §1002.001 authorizes the board of the Texas Department of Motor Vehicles with the authority to adopt rules that are necessary and appropriate to implement the powers and the duties of the department.

CROSS REFERENCE TO STATUTE. Transportation Code, Chapters 501, 502, 503, and §520.003.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on February 10, 2020.

TRD-202000550

Tracey Beaver

General Counsel

Texas Department of Motor Vehicles

Effective date: March 1, 2020

Proposal publication date: August 30, 2019

For further information, please call: (512) 465-5665


SUBCHAPTER C. REGISTRATION AND TITLE SYSTEMS

43 TAC §§217.76 - 217.78

The Texas Department of Motor Vehicles adopts new sections to 43 TAC Subchapter C, Registration and Title Systems, §§217.76 - 217.78, concerning access to the department's automated registration and titling system (RTS), including suspension and denial. The new sections are necessary to implement Transportation Code, §520.021 and §520.022, as added by Senate Bill (SB) 604, 86th Legislature, Regular Session (2019). Transportation Code, §520.021, authorizes the department to adopt rules and policies for the maintenance and use of the RTS and Transportation Code, §520.022, provides that the department has sole authority to determine access to RTS. The department adopts the new sections with changes to the proposed text as published in the October 18, 2019, issue of the Texas Register (44 TexReg 6018). The department has revised typographical errors in §§217.76 - 217.78. These rules will be republished.

The department has also adopted new 43 TAC §§223.1 - 223.3, concerning the department's "red flag" fraud reporting system in this issue of the Texas Register.

REASONED JUSTIFICATION. Transportation Code, §520.022, provides that the department has sole authority to determine access to RTS. The department interprets SB 604, Section 4.07, as requiring the department to identify the types of suspected activity that will result in suspension or denial. The types of suspected activity are stated in proposed §217.76. Suspension and denial are addressed in proposed §217.77. Reinstatement is addressed in §217.78.

Section 217.76 is also necessary to implement SB 604, Section 4.07, which requires the department, not later than March 1, 2020, in coordination with county tax assessor-collectors, and in accordance with Subchapter C, Chapter 520, Transportation Code, as added, to develop, adopt, and implement rules that create clear criteria for the suspension or denial of access to RTS if a county tax assessor-collector suspects fraud, waste, or abuse relating to RTS by a county tax assessor-collector employee or a person deputized under Transportation Code, §520.0071. As part of the coordination process with county tax assessor-collectors, on August 20, 2019, the department provided draft language for proposed §217.76 to the Tax Assessor-Collectors Association of Texas (TACA) and the TxDMV county tax assessor-collector Liaison. The proposal incorporated comments received.

Proposed §217.76(a) establishes that §§217.76 - 217.78 apply to individuals, other than department employees, and entities, with RTS access. The sections do not apply to department employees because their access, and denial of access, is at the will of the department. Stating that the sections do not apply to them clarifies that the sections do not create procedures or requirements related to RTS access, suspension, or denial, for a department employee. The reference to entities includes only entities with RTS access.

Proposed §217.76(b) establishes the criteria for the department to suspend or deny access to RTS. As stated, prior to proposal the department provided draft criteria to TACA and county tax assessor-collectors as part of the SB 604, Section 4.07, coordination process. After reviewing comments received from TACA and county tax assessor-collectors, the department modified the draft text to require a reasonable suspicion and added the sources of information that could validate that suspicion. A reasonable suspicion standard is consistent with the "suspects" language in SB 604, Section 4.07. Requiring a final determination or knowing conduct would not be consistent with the legislative instruction.

In addition, the department's draft of the criteria for the suspension or denial of access to RTS provided to TACA and county tax assessor-collectors for review listed "a crime of moral turpitude." The draft further defined "a crime of moral turpitude" to include reasonable suspicion of misappropriation of money, falsification of government records, or a crime involving fraud, theft, deceit, dishonesty, misrepresentation, or that otherwise reflects poorly on the person's honesty or trustworthiness. Based on feedback received from TACA and the county tax assessor-collector commenters, the department kept the listed types of criminal activity and removed the term "a crime of moral turpitude."

Section 217.76(b)(2) also provides that the department may suspend or deny access to RTS based on a demonstration of non-compliance with applicable statutes and rules, including Texas Administrative Code, Chapter 217 and Transportation Code, Chapters 501, 502, 504, or 520. Section 217.76(c) lists the types of acceptable forms of information that can be used to support a reasonable suspicion.

Proposed §217.77(a) clarifies that the executive director or the executive director's designee has sole authority to determine access to RTS, determine if information exists to support a reasonable suspicion, and may suspend or deny RTS access, based on the criteria in §217.76. This is based on Transportation Code, §520.022. Proposed §217.77(b) provides that a county tax assessor-collector may request the executive director or the executive director's designee immediately suspend a county employee or full service deputy's access to RTS based on the same criteria. Although not a criterion, TACA and county tax assessor-collector commenters in the SB 604, Section 4.07, coordination process suggested including a notice, such as the notice set forth in the current §217.163 addendum. Proposed §217.77(c) incorporates the existing notice provision from the addendum into the rule, with modifications to refer to an exception for federal law enforcement, a request for immediate termination by the county tax assessor-collector, and for differences in style between the proposal and the addendum.

The department has changed §217.77(b) to correct a typographical error by changing the word "employee" to "employee's" for consistency with other uses in the text. The change does not add additional costs or affect persons not on notice of the proposed rules.

TACA and county tax assessor-collector commenters in the coordination process also suggested the need for a reinstatement process. Proposed §217.78(a) incorporates the addendum reinstatement process which was agreed upon after negotiation between the county tax assessor-collectors and the department. The process has been modified to reflect that it applies to individuals in addition to entities, and to correct differences in style between the rule and the addendum. Proposed §217.78(b) provides that access to RTS may be reinstated if the person whose access has been suspended is not the subject of a pending criminal investigation by a law enforcement entity. Access may be reinstated if the department determines no fraud, waste, or abuse was committed; the matter has been remedied to the satisfaction of the department; or the person is in compliance with applicable statutes or rules.

The department has changed §217.78(b) to correct a typographical error by changing the word "individual" to "individual's" for consistency with other uses in the text. The change does not add additional costs or affect persons not on notice of the proposed rules.

SUMMARY OF COMMENTS.

The department received written comments on the proposal from the Tax Assessor-Collectors Association of Texas (TACA), on behalf of its board and 254 county tax assessor-collector members.

General Comments

The commenter supports the rules provided that a county tax assessor-collector retains the ability to manage their employees and full service deputies pursuant to both department rules and county policies/provisions.

Response. The department agrees with the comment. The rules address only suspension of employees and full service deputies from RTS system access based on suspicion of fraud, waste, or abuse as provided in the adopted sections.

The commenter also asks for confirmation that a county tax assessor-collector may submit a request to the department to deny an employee or full service deputy access to the RTS system if the county tax assessor-collector believes, suspects, or finds that the employee or full service deputy is in violation of or acting against the statutes, rules or procedures set forth by the department or by the tax assessor collector.

Response. The department agrees with the comment. The adopted sections do not impose a duty on a county tax assessor-collector to allow, or continue to allow, an employee or full service deputy to have access to the RTS system. A county tax assessor-collector may submit a request to the department to deny an employee or full service deputy access to the RTS system for any reason, including reasons of fraud, waste, and abuse set forth in §217.76. The purpose of the rules is to provide criteria and a procedure for the department to suspend a county tax assessor-collector employee's or full service deputy's access to the RTS system based on reasons of fraud, waste, and abuse.

STATUTORY AUTHORITY. The department adopts new §§217.76 - 217.78 under SB 604, Section 4.06, and Transportation Code, §520.021 and §1002.001.

Senate Bill 604, Section 4.06, 86th Legislature, Regular Session (2019), provides that not later than March 1, 2020, the department shall, in coordination with county tax assessors-collectors and in accordance with Subchapter C, Chapter 520, Transportation Code, as added by this Act, develop, adopt, and implement rules that create clear criteria for the suspension or denial of access to the department's automated registration and titling system if a county tax assessor-collector suspects fraud, waste, or abuse relating to the system by an employee of the tax assessor-collector's or a person deputized under Transportation Code, §520.0071.

Transportation Code, §520.021, authorizes the department to adopt rules and policies for the maintenance and use of the department's automated registration and titling system.

Transportation Code, §1002.001, authorizes the board to adopt rules that are necessary and appropriate to implement the powers and the duties of the department.

CROSS REFERENCE TO STATUTE. Transportation Code, §520.021.

§217.76.Criteria for Suspension or Denial of Access to RTS.

(a) Sections 217.77, 217.78, and this section apply to individuals, other than department employees, and entities, with RTS access.

(b) The department may suspend or deny any individual user's or entity's access to RTS if:

(1) information exists to support a reasonable suspicion that the individual or entity is committing fraud, waste, or abuse related to RTS, including:

(A) misappropriation of money;

(B) falsification of government records; or

(C) a crime involving fraud, theft, deceit, dishonesty, misrepresentation, or that otherwise reflects poorly on the individual's honesty or trustworthiness; or

(2) the individual or entity demonstrates non-compliance with applicable statutes and rules, including Texas Administrative Code, Chapter 217 and Transportation Code, Chapters 501, 502, 504, or 520.

(c) Acceptable forms of information that can support a reasonable suspicion include:

(1) information gathered in an audit under Transportation Code, §520.010 or §520.011;

(2) a request to suspend or deny the individual or entity access from a county tax assessor-collector;

(3) review of transactions processed by the individual or entity; and

(4) oral or written information or complaints from:

(A) a law enforcement agency;

(B) another government agency;

(C) an association or trade group;

(D) an entity; or

(E) an identifiable individual.

§217.77.Process for Suspension or Denial of Access to RTS.

(a) The executive director or the executive director's designee has sole authority to:

(1) determine access to RTS;

(2) determine that information exists to support a reasonable suspicion that the individual or entity is committing fraud, waste, or abuse related to RTS; and

(3) suspend or deny the individual's or entity's access to RTS, based on the criteria in §217.76 of this title (relating to Criteria for Suspension or Denial of Access to RTS).

(b) A county tax assessor-collector may request the executive director or the executive director's designee immediately suspend a county employee's or full service deputy's access to RTS based on the criteria in §217.76 of this title.

(c) The department shall inform the county tax assessor-collector before taking action to suspend or deny the individual's or entity's access to RTS under subsection (a) of this section, unless:

(1) the action is as a result of a court order;

(2) time is of the essence;

(3) revealing this action would detrimentally interfere with or compromise an active investigation by the department or an enforcement agency of this state or the federal government; or

(4) the action is based on the county tax collector-assessor's request in subsection (b) of this section.

§217.78.Reinstatement of Access to RTS.

(a) A county tax assessor-collector may request a review of a decision to suspend or terminate RTS access by submitting a request for reinstatement in writing to the department.

(1) The request for reinstatement should include all supporting information that is relevant to support reinstatement.

(2) A county tax assessor-collector may submit information in support of or relevant to a request for reinstatement to the department.

(3) The executive director shall make a final determination on reinstatement within 21 calendar days from the date the department receives the request for reinstatement. If the department requests additional information from the individual, entity, or county tax assessor-collector, the deadline for determination of the request for reinstatement is tolled until the additional information is received.

(b) Unless an individual or entity is the subject of a pending criminal investigation by a law enforcement entity, the individual's or entity's access to RTS will be reinstated if the department determines that:

(1) no fraud, waste, or abuse was committed;

(2) the matter has been remedied to the satisfaction of the department; or

(3) the individual or entity is in compliance with applicable statutes and rules.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on February 10, 2020.

TRD-202000552

Tracey Beaver

General Counsel

Texas Department of Motor Vehicles

Effective date: March 1, 2020

Proposal publication date: October 18, 2019

For further information, please call: (512) 465-5665


CHAPTER 223. COMPLIANCE AND INVESTIGATIONS DIVISION

SUBCHAPTER A. FRAUD, WASTE, OR ABUSE

43 TAC §§223.1 - 223.3

The Texas Department of Motor Vehicles adopts new Chapter 223, Compliance and Investigations Division, Subchapter A., Fraud, Waste, or Abuse, 43 TAC §§223.1 - 223.3, concerning the department's "red flag" fraud reporting system. The new sections are necessary to formalize the department's current "red flag" fraud reporting system and implement a management action within the Sunset Advisory Commission's Recommendation 2.2, as stated in the Sunset Staff Report with Commission Decisions, 2018-2019, 86th Legislature (2019). The department adopts new Chapter 223 without changes to the proposed text as published in the October 18, 2019, issue of the Texas Register (44 TexReg 6021). These rules will not be republished.

The department also adopts new 43 TAC §§217.76-217.78, concerning access to the department's automated registration and title system (RTS) in this issue of the Texas Register.

REASONED JUSTIFICATION. The department originally proposed new Chapter 223 in the March 1, 2019, issue of the Texas Register (44 TexReg 1114) and received comments from the Tax Assessor-Collector Association of Texas (TACA). The department did not adopt the proposal and it was withdrawn in the September 20, 2019, issue of the Texas Register (44 TexReg 5387). The department incorporated the prior comments received on the March 1, 2019, published proposal in the October 18, 2019, proposal.

Because the adopted sections were developed over two proposals, the department refers to comments received on each proposal in this Reasoned Justification section. Only comments received on the October 18, 2019, proposal are listed, addressed, and responded to in the Summary of Comments section.

The Tax Assessor-Collectors Association of Texas (TACA) commented that the March 1, 2019, proposal was inconsistent with the Sunset recommendation. TACA also suggested that the department's CID investigation and notification process mirror the dealer enforcement complaint process, because that process works well with cross communication and access to investigations. Some changes were made based on the comments received and to further improve the rules.

However, the adopted rules do not mirror the department's dealer enforcement complaint process. Throughout the dealer investigation and enforcement process, investigators and enforcement attorneys communicate with the complainant and respondent as necessary to work through allegations to either resolve the issues or assess civil penalties. The CID, on the other hand, is a unique division with no authority or duty to determine administrative violations or assess civil penalties.

As addressed in the response to comments, the CID will try to work in partnership with county tax assessor-collectors. However, the CID may not be able to provide status updates for ongoing investigations. The CID serves as a liaison with law enforcement entities on potential criminal law violations and has no authority to independently enforce or prosecute criminal law violations. Sharing information regarding an ongoing criminal investigation could jeopardize the investigation and damage the CID's working relationship with law enforcement.

Every person processing registration and title transactions in RTS has a duty to stop or prevent fraud, waste, or abuse. The adopted "red flag" rules provide a means for county tax assessor-collectors to flag and report suspected fraud, waste, or abuse to the CID. As addressed in the response to comments, the adopted sections are based on the county tax assessor-collectors having continued management and control of county employees and deputies, and do not limit or expand the exercise of statutory authority of a county tax assessor-collector or the department.

Adopted §223.1 outlines the purpose and scope of the subchapter, which is to prescribe the policies and procedures for county tax assessor-collectors, including county tax assessor-collector employees and deputies, to report suspected fraud, waste, or abuse, related to motor vehicle titling and registration to the CID for investigation.

Adopted §223.2 establishes that the words and terms defined in Transportation Code, Chapter 501, have the same meaning when used in the subchapter, unless the context clearly indicates otherwise. The adopted section also defines terms specific to this subchapter.

Adopted §223.3 establishes the process for requesting rejection of a possible fraudulent transaction and reporting suspected possible fraud, waste, or abuse to the CID. The section does not require the county tax assessor-collector to make a request or submit information. However, submitting information to the CID is a means to work in partnership with the CID to stop or prevent fraud, waste, or abuse, and serve the motoring public.

Under §223.3, a county tax assessor-collector who suspects possible fraud, waste, or abuse by an employee, motor vehicle dealer, deputy, or any person transacting motor vehicle-related business for or with the county, may submit a request for rejection of the suspected fraudulent transaction. The county tax assessor-collector must submit the request through a department Regional Service Center and mail, or e-mail, certain information to the CID, including the original transaction, a detailed narrative, and any supporting documentation or evidence. Adopted §223.3 requires a full service deputy to report suspected fraud, waste, or abuse to the county tax assessor-collector. The county tax assessor-collector may then submit the full service deputy's information to the CID using the process in §223.3.

Section 223.3 also establishes that the CID will provide notification to the county tax assessor-collector if it determines it will not conduct an investigation. As addressed in response to comments and this Reasoned Justification section, the CID may not be able to provide additional information.

SUMMARY OF COMMENTS. The department received written comments on the proposal from the Tax Assessor-Collectors Association of Texas (TACA), on behalf of its board and 254 county tax assessor-collector members.

General Comment

The commenter strongly supports all measures to ensure the motoring public is protected while ensuring the county tax assessor-collectors have management control of their employees and full service deputies.

Response. The department appreciates the commenter's support. The purpose of the adopted section is to provide a process for county tax assessor collectors to report suspected fraud, waste, or abuse to the CID so that county tax assessor-collectors and the CID can work together to stop or prevent it. The adopted sections are based on the county tax assessor-collector having continued management and control of their employees and deputies. It is the county tax assessor-collector's decision to make the report. The adopted sections do not limit or expand the exercise of statutory authority of a county tax assessor-collector or the department.

Section 223.3 Comments

The commenter requests confirmation that §223.3 does not require a county tax assessor collector to submit a request to the CID that a suspected fraudulent transaction be rejected or otherwise report on suspected fraud, waste, or abuse to the CID.

Response. The department agrees with the comment. Section 223.3 establishes the process for requesting rejection of a possible fraudulent transaction and reporting suspected possible fraud, waste, or abuse, to the CID. The section does not require the county tax assessor-collector to make a request or report information. Submitting information to the CID is a means to work in partnership with the CID to stop or prevent fraud, waste, or abuse, and serve the motoring public as emphasized by the commenter.

The commenter requests that the CID provide county tax assessor-collectors updated status on investigations every 60 days in order to combat the possibility of issuing titles erroneously.

Response. The department agrees with the comment. The CID will try to work in partnership with county tax assessor-collectors. However, the CID may not be able to provide status updates for ongoing investigations. The CID serves as a liaison with law enforcement entities on potential criminal law violations and has no authority to independently enforce or prosecute criminal law violations. Sharing information regarding an ongoing criminal investigation could jeopardize the investigation and damage the CIDs working relationship with law enforcement.

STATUTORY AUTHORITY. The department adopts new §§223.1-223.3 under Transportation Code, §§501.0041, 502.0021, 520.021, and 1002.001.

Transportation Code, §501.0041 authorizes the department to adopt rules to administer Chapter 501.

Transportation Code, §502.0021 authorizes the department to adopt rules to administer Chapter 502.

Transportation Code, §520.021 authorizes department to adopt rules and policies for the maintenance and use of the department's automated registration and titling system.

Transportation Code, §1002.001 authorizes the board to adopt rules that are necessary and appropriate to implement the powers and the duties of the department.

CROSS REFERENCE TO STATUTE. Transportation Code, Chapters 501, 502, and 520; and more specifically, Transportation Code,§501.003 and §520.022.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on February 10, 2020.

TRD-202000553

Tracey Beaver

General Counsel

Texas Department of Motor Vehicles

Effective date: March 1, 2020

Proposal publication date: October 18, 2019

For further information, please call: (512) 564-5665