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.