HBA-MPM, MPA H.B. 2539 76(R)BILL ANALYSIS Office of House Bill AnalysisH.B. 2539 By: Davis, Yvonne Transportation 9/14/1999 Enrolled BACKGROUND AND PURPOSE Prior to the 76th Legislature, the law did not provide vehicle converters with access to special temporary license plates that would allow them to drive new, untitled and unregistered vehicles on Texas roads. H.B. 2539 allows converters to obtain special temporary plates necessary to drive newly converted vehicles to facilities that add equipment and to new car dealerships for warranty repairs. This bill also provides for a converter's temporary cardboard tags for certain vehicles, and specifies the conditions under which said tags may be used. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Subchapter C, Chapter 503, Transportation Code, by adding Section 503.0618, as follows: Sec. 503.0618. CONVERTER'S LICENSE PLATES. (a) Defines "converter." (b) Authorizes a converter to apply for, receive, and attach metal converter's license plates to a vehicle if the vehicle type is such that the converter is engaged in the business of assembling or modifying, in lieu of registering under Chapter 502 (Registration of Vehicles), Transportation Code, a vehicle that a converter operates or permits to be operated on a public street or highway. (c) Provides that the fee for a metal converter's license plate is $20. (d) Requires the Texas Department of Transportation (TxDOT) to prescribe the form of an application under this section. SECTION 2. Amends Subchapter C, Chapter 503, Transportation Code, by adding Section 503.0625, as follows: Sec. 503.0625. CONVERTER'S TEMPORARY CARDBOARD TAGS. (a) Defines "converter" for purposes of this section. (b) Authorizes a converter to issue a temporary cardboard tag for use on an unregistered vehicle by the converter or the converter's employees only for demonstration purposes and to convey the vehicle to and from specific places. (c) Specifies that Subsection (b) does not prohibit a converter from permitting a prospective buyer who is an employee of a franchised motor vehicle dealer to operate a vehicle while the vehicle is being demonstrated. (d) Exempts a vehicle being conveyed while displaying a temporary tag issued under this section from the inspection requirements of Chapter 548 (Compulsory Inspection of Vehicles), Transportation Code. (e) Prohibits TxDOT from issuing a converter temporary cardboard tag or contract for the issuance of a converter temporary cardboard tag, but requires TxDOT to prescribe the specifications, form, and color of this tag. (f) Prohibits a converter or converter's employee from using a temporary cardboard tag issued under this section as authorization to operate a vehicle for the converter's or employee's personal use. SECTION 3. Effective date: September 1, 1999. SECTION 4. Emergency clause.