TITLE 43. TRANSPORTATION

PART 11. FORT BEND COUNTY TAX ASSESSOR-COLLECTOR

CHAPTER 301. REGULATION OF MOTOR VEHICLE TITLE SERVICES

The Fort Bend County Tax Assessor-Collector's Office proposes amendment §301.1, concerning the regulation of motor vehicle title services. Prior to the adoption of Texas Transportation Code Chapter 520, Subchapter E, motor vehicle title services were unregulated, posted no bonds, and were not required to maintain records. Such third-party title services have been associated with fraudulent title transactions, document fraud, odometer fraud, vehicle theft, and other motor vehicle related criminal activity. Texas Transportation Code Chapter 520, Subchapter E, applies to counties meeting the population requirements established by statute. Fort Bend County is subject to these provisions and therefore regulates motor vehicle title service companies through registration, licensing, and recordkeeping requirements.

Carmen P. Turner, Fort Bend County Tax Assessor-Collector, determined that for each year of the first five-year period the proposed amendment is in effect, there are no additional costs or reduction in costs to the state or local government as a result of enforcing or administering this section. The estimated license fee revenue increase that will be retained by the county to offset the costs of administering the motor vehicle title service program is $41,400.

Carmen P. Turner, Fort Bend County Tax Assessor-Collector, has also determined that during the first five years the proposed amendment is in effect, the anticipated public benefit includes improved accountability of motor vehicle title service companies, enhanced consumer protection, increased transparency, stronger fraud prevention measures, and greater confidence in the integrity of motor vehicle transactions. The Fort Bend County Tax Assessor-Collector receives motor vehicle titles service records from 132 title service companies and 150 runners. Nearly all of these entities/individuals are small businesses, many of which are microbusinesses. The economic costs to small businesses, microbusinesses, rural communities, and/or individuals who are required to comply with this rule will be the initial license fee of $400.00, the annual renewal fee of $200.00, plus an additional $100.00 annually for each service runner license which is due upon application and is not refundable.

The Fort Bend County Tax Assessor-Collector determined that during the first five-year period the proposed amendment is in effect, it does not create or eliminate a government program; will not require the creation or elimination of employee positions and does not require future legislative appropriations to the agency. The amended rule also supports efficient administration of motor vehicle title services through standardized procedures while maintaining appropriate safeguards against fraud. In preparing this proposed amended rule, the Fort Bend County Tax Assessor-Collector considered processes which require less information from applicants, informal tracking of records and random document confirmation and concluded that clear, consistent standards promote uniform compliance, accountability, and efficient processing of motor vehicle title transactions. The Fort Bend County Tax Assessor-Collector also considered assessing lower and higher license fees but concluded that 43 TAC §95.1 set prevailing fee amounts for motor vehicle title services and proposes higher fees to promote consistency among contiguous counties expanding existing regulations. The Fort Bend County Tax Assessor-Collector determined that individuals that comply with the amended rule may experience increased business opportunities because non-compliant competitors will be sanctioned, expanding existing regulation while maintaining the same number of individuals subject to the rule's applicability. This proposed amended rule does not adversely affect the state's economy as license fee revenue will be retained by the county to offset the costs of administering the motor vehicle title service program. This amendment expands the existing regulations.

Comments on the proposed amended rule may be submitted to Jacqueline Thornton, Chief Deputy Tax Assessor-Collector, Fort Bend County Tax Office Administration, 1317 Eugene Heimann Circle, Richmond, Texas 77469. The deadline for all comments is 30 days after publication in the Texas Register.

The amended rule is proposed pursuant Transportation Code Chapter 520, Subchapter E, which provides the County Tax Assessor-Collector the authority to adopt rules regarding motor vehicle titles services.

No other statutes, articles, or codes are affected by this proposal.

§301.1. Motor Vehicle Title Service Licensing.

(a) Definitions.

(1) "Motor vehicle" has the meaning assigned by Texas Transportation Code Section 501.002.

(2) "Motor vehicle title service" means any person that for compensation directly or indirectly assists other persons in obtaining title documents by submitting, transmitting, or sending applications for title documents to the appropriate government agencies.

(3) "Title documents" means motor vehicle title applications, motor vehicle registration renewal applications, motor vehicle mechanic's lien title applications, motor vehicle storage lien title applications, motor vehicle temporary registration permits, motor vehicle title application transfers occasioned by the death of the title holder, or notifications under Chapter 683 of this code or Chapter 70, Property Code.

(4) "Title service license holder" means a person who holds a motor vehicle title service license or a title service runner's license.

(5) "Title service record" means the written record for each transaction in which a motor vehicle title service receives compensation.

(6) "Title service runner" means any person employed by a licensed motor vehicle title service to submit or present title documents to the county tax assessor-collector.

(b) License Required.

(1) A person may not act as a motor vehicle title service or act as an agent for that business (which includes a title service runner) in Fort Bend County unless that person holds a license issued by the Fort Bend County Tax Assessor-Collector.

(2) A person commits an offense if the person violates a motor vehicle title service license rule adopted by the Fort Bend County Tax Assessor-Collector. Such an offense is a Class A misdemeanor.

(3) Any unlicensed individual observed conducting motor vehicle transactions on behalf of others in Fort Bend County and who claims to be doing so without compensation shall complete an affidavit stating that they are not receiving compensation for the transaction. This affidavit shall be notarized and will be forwarded to the appropriate law-enforcement agencies by a deputy of the Fort Bend County Tax Assessor-Collector.

(c) License Fees.

(1) License fees must be remitted when the application is submitted and are non-refundable.

(2) The fee for a vehicle title service company license shall be [for] $400.00 [$200.00] for the initial application and $200.00 [$100.00] for each annual renewal.

(3) The fee for a title service runner license shall be $100.00 [$50.00] for the initial application and $100.00 [$50.00] for each annual renewal.

(d) General License Application Requirements.

(1) Applications may only be made at the Fort Bend County Tax Office, 1317 Eugene Heimann Circle, Richmond, Texas.

(2) An applicant for a motor vehicle title service license must complete all forms required by Fort Bend County Tax Assessor-Collector. The applicant must sign the application form and pay the license fee.

(3) All applicants must present state issued picture identification at the time of application. Lack of valid, state issued picture identification shall disqualify an applicant from being licensed in Fort Bend County.

(4) An applicant must be at least 18 [16] years of age on the date the application is submitted to apply for a license in Fort Bend County.

(7) [(5)] The motor vehicle service company shall assume the responsibility for the accuracy and validity of all documents presented to the Fort Bend County Tax Assessor-Collector under its name.

(8) [(6)] An application must include:

(A) the applicant's name, business address, and business telephone number;

(B) the name under which the applicant will do business;

(C) the physical address of each office from which the applicant will conduct business (a P.O. Box will not be accepted) and a corresponding photo of each building where business is being conducted;

(D) the name of all individuals who have an ownership interest in the applicant motor vehicle title service company; and

(E) if applicable, motor vehicle license information for each individual who has an ownership interest in the applicant motor vehicle title service company.

(9) [(7)] Runners must be identified and sponsored by the motor vehicle title service company in order to conduct business on its behalf. The required documents for any runner must be on file with each service company for which the runner is an authorized agent. Individuals whose names are not on file of a title company will not be allowed to conduct business in Fort Bend County on behalf of that title service company.

(10) [(8)] Applicants will be notified of the outcome of an application within fifteen (15) [15] business days of the application being submitted to the Fort Bend County Tax Assessor-Collector. This notification will be mailed to the business address listed on the application.

(11) [(9)] All licenses are issued for a one (1) year period and must be renewed each year after. A renewal application has the same requirements as a new application.

(12) [(10)] A license may not be issued under a fictitious name that is similar to or may be confused with the name of a governmental entity or that is deceptive or misleading to the public.

(e) Application Requirements: Corporation. In addition to the General License Application Requirements, an applicant for a motor vehicle title service license that intends to engage in business as a corporation shall submit the following information:

(1) a "doing business as" (DBA) certificate or articles of incorporation;

(2) the name, address, date of birth, and social security number of each of the principal owners and directors of the corporation;

(3) information about each officer and director as requested by the Fort Bend County Tax Assessor-Collector to establish the business reputation and character of the applicant; and

(4) a statement indicating whether an employee, officer, or director has been refused a motor vehicle title service license or a title service runner's license or has been the holder of a license that was revoked or suspended in any Texas County.

(f) Application Requirements: Partnership. In addition to the information required in General License Application Requirements, a motor vehicle title service license applicant that intends to engage in business as a partnership shall submit an application that includes the following information:

(1) the name, address, date of birth, and social security number of each partner;

(2) information about each partner as requested by the Fort Bend County Tax Assessor-Collector to establish the business reputation and character of the applicant; and

(3) a statement indicating whether a partner or employee has been refused a motor vehicle title service license or a title service runner's license or has been the holder of a license that was revoked or suspended in any Texas County.

(g) Denial, Suspension, or Revocation of License.

(1) Grounds for the denial, suspension, revocation, or reinstatement of a license in Fort Bend County:

(A) submitting false information on the application form or any supporting documents;

(B) having been convicted of a felony or a crime of moral turpitude for which the completion date of the applicant's sentence is less than five (5) years from the date of applying for a motor vehicle title service license; or

(C) having been found in violation of the administrative procedures required by the Texas Department of Motor Vehicles [Transportation];

(D) having been found to have submitted a vehicle packet to the Fort Bend County Tax Assessor-Collector's office which contains false information, and the Fort Bend County Tax Assessor-Collector determines that the false information was intentionally submitted by the motor vehicle title service company;

(E) A runner license may be cancelled or suspended if the runner has presented a title packet to the Fort Bend County Tax Assessor- Collector that was not authorized by a licensed motor vehicle title service company or if the runner altered or forged the original paperwork prepared for and signed by the motor vehicle title service.

(2) If the Fort Bend County Tax Assessor-Collector makes a determination that a person's license hereunder should be denied, cancelled, suspended or revoked, then the County Tax Assessor-Collector shall send notice of the action to the person, by registered or certified mail, stating the facts or conduct alleged to warrant the action.

(3) Upon a determination of misrepresentation, fraud, or other cause, the Fort Bend County Tax Assessor-Collector may order a 90-day suspension of license until awaiting final decision for the first offense and a 180-day suspension of license for the second offense. A license may be revoked upon a third offense.

(4) The Fort Bend County Tax Assessor-Collector may revoke any license upon conviction of license holder for a felony or crime of moral turpitude.

(5) A person whose license is revoked may not apply for a new license before the first anniversary of the date of the revocation.

(h) Appeals.

(1) The Fort Bend County Tax Assessor-Collector shall appoint a five member Review Board to review any appeal of action for refusal, cancellation, suspension, revocation, or reinstatement of license. The Review Board shall consist of two (2) deputies from the Fort Bend County Tax Assessor-Collector's office, two (2) law enforcement officers and one (1) representative from the motor vehicle industry.

(2) Memberships will last for two (2) years and replacements will be selected on a staggered basis. For the first year that the Board is established, two (2) of the memberships shall be for one (1) year to accommodate staggering. A member may be reappointed for additional terms as deemed appropriate by the Fort Bend County Tax Assessor-Collector.

(3) A person that receives notice of adverse action taken on their own license by the Fort Bend County Tax Assessor-Collector may submit a written request for appeal or protest, and submit evidence, in the form of documents or testimony, to demonstrate that person's compliance with all requirements for the issuance, retention, or reinstatement of their license. The person must submit evidence and/or file a written request for an appeal of action taken on their own license with the County Tax Assessor-Collector within twenty (20) [20] calendar days from the date of the notice of action on their license.

(4) Submitting evidence and/or filing a written request for an appeal must be sent to Fort Bend County Tax Office, 1317 Eugene Heimann Circle, Richmond, Texas by certified mail.

(5) Upon timely filing of a request for an appeal, the County Tax Assessor-Collector shall request review by the Review Board. The adverse action shall be stayed until a final decision is made on the license.

(6) The Review Board shall meet as needed, on a date determined by the Fort Bend County Tax Assessor-Collector. The Board will review any appeals and make a recommendation to the County Tax Assessor-Collector stating whether the Board agrees or disagrees with the action taken.

(7) The Fort Bend County Tax Assessor-Collector shall appoint a member of the Review Board to chair meetings of the Review Board.

(8) A quorum of three (3) members of the Review Board must be present to render a decision. No proxy votes will be allowed.

(9) A simple majority vote of Review Board members shall determine the recommendation on matters under consideration.

(10) All decisions related to license appeals or protests shall be subject to final review and determination by the Fort Bend County Tax Assessor-Collector. The Fort Bend County Tax Assessor-Collector shall send disposition of the Appeal to the person, by registered or certified mail. If the Fort Bend Tax Assessor-Collector does not reinstate the license, any adverse action stayed by the appeal will be reinstated.

(i) License Renewal.

(1) A license pursuant to these rules [this section] expires on the first anniversary of the date of issuance and may be renewed annually on or before the expiration date on payment of the required renewal fee.

(2) A person who is otherwise eligible to renew a license may renew an unexpired license by paying to the Fort Bend County Tax Assessor-Collector before the expiration date of the license the required renewal fee. A person whose license has expired may not engage in activities that require a license until the license has been renewed under this section.

(3) If a person's license has been expired for ninety (90) [90] days or less, the person may renew the license by paying [to] the Fort Bend County Tax Assessor-Collector 1-1/2 times the required renewal fee.

(4) If a person's license has been expired for longer than ninety (90) [90] days but less than one (1) year, the person may renew the license by paying [to] the Fort Bend County Tax Assessor-Collector two (2) times the required renewal fee.

(5) If a person's license has been expired for one (1) year or longer, the person may not renew the license. The person may obtain a new license by complying with the requirements and procedures for obtaining an original license.

(6) Notwithstanding Section 5, if a person was licensed in this state, moved to another state, and has been doing business in the other state for the two (2) years preceding application, the person may renew an expired license. The person must pay to the Fort Bend County Tax Assessor-Collector a fee that is equal to two (2) times the required renewal fee for the license.

(7) Before the 30th day preceding the date on which a person's license expires, the Fort Bend County Tax Assessor-Collector shall notify the person of the impending expiration. The notice must be in writing and sent to the person's last known address according to the records of the Fort Bend County Tax Assessor-Collector.

(j) Requirements for Conducting Motor Vehicle License Transactions.

(1) All vehicle transactions for Fort Bend County will be processed at Fort Bend County Tax Office, 1317 Eugene Heimann Circle, Richmond, Texas.

(2) A Fort Bend County Tax Assessor-Collector vehicle transaction form must accompany all motor vehicle service transactions. The motor vehicle title service company is responsible for the accuracy and validity of the information for each vehicle listed. Only vehicles authorized and listed by the licenses motor vehicle title service company will be processed.

(3) All vehicles for which the title service company wants to complete a transaction on must be listed and identified as transfer or ownership, renewal or replacement of license plates or registration sticker on the transaction form.

(4) After the final vehicle transaction on each transaction sheet is completed, a copy of the transaction sheet will remain on file at the office of the Fort Bend County Tax Assessor-Collector.

(5) A holder of a motor vehicle title service license shall maintain records as required by the Fort Bend County Tax Assessor-Collector for each transaction in which the license holder receives compensation. The records shall include:

(A) the date of the transaction;

(B) the name, age, address, sex, driver's license number, and a legible photocopy of the driver's license for each customer; and

(C) the vehicle make, model, year, license plate number, vehicle identification number, and a legible photocopy of proof of financial responsibility for the motor vehicle involved.

(6) A motor vehicle title service shall keep:

(A) two (2) copies of all records required under this section for at least two (2) years after the date of the transaction;

(B) legible photocopies of any documents submitted by a customer; and

(C) legible photocopies of any documents submitted to the Fort Bend County Tax Assessor-Collector.

(7) A motor vehicle title service license holder or any of its employees shall allow an inspection of the required records by a peace officer on the premises of the motor vehicle title service at any reasonable time to verify, check, or audit the records.

(k) Exemptions. The following persons and their agents are exempt from the licensing and other requirements described herein:

(1) a franchised motor vehicle dealer or independent motor vehicle dealer who holds a general distinguishing number issued by the department under Texas Transportation Code Chapter 503;

(2) a vehicle lessor holding a license issued by the Motor Vehicle Board under Chapter 2301, Texas Occupations Code, or a trust or other entity that is specifically not required to obtain a lessor license under §2301.254(a) of that code; and

(3) a vehicle lease facilitator holding a license issued by the Motor Vehicle Board under Chapter 2301, Texas Occupations Code.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on August 28, 2026.

TRD-202603771

Carmen P. Turner

Tax Assessor-Collector

Fort Bend County Tax Assessor-Collector

Earliest possible date of adoption: October 11, 2026

For further information, please call: (281) 341-3737