CHAPTER 503. DEALER'S AND MANUFACTURER'S VEHICLE LICENSE PLATES - Texas Statutes

TRANSPORTATION CODE

TITLE 7. VEHICLES AND TRAFFIC

SUBTITLE A. CERTIFICATES OF TITLE AND REGISTRATION OF VEHICLES

CHAPTER 503. DEALER'S AND MANUFACTURER'S VEHICLE LICENSE PLATES

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 503.001. DEFINITIONS. In this chapter:

(1) "Board" has the meaning assigned by Chapter 2301,

Occupations Code.

(2) "Commission" means the board of the Texas Department of

Motor Vehicles.

(3) "Converter" has the meaning assigned by Chapter 2301,

Occupations Code.

(4) "Dealer" means a person who regularly and actively buys,

sells, or exchanges vehicles at an established and permanent

location. The term includes a franchised motor vehicle dealer,

an independent motor vehicle dealer, an independent mobility

motor vehicle dealer, and a wholesale motor vehicle dealer.

(5) "Department" means the Texas Department of Motor Vehicles.

(6) "Drive-a-way operator" means a person who transports and

delivers a vehicle in this state from the manufacturer or another

point of origin to a location in this state using the vehicle's

own power or using the full-mount method, the saddle-mount

method, the tow-bar method, or a combination of those methods.

(7) "Franchise" has the meaning assigned by Chapter 2301,

Occupations Code.

(8) "Franchised motor vehicle dealer" means a person engaged in

the business of buying, selling, or exchanging new motor vehicles

at an established and permanent place of business under a

franchise in effect with a motor vehicle manufacturer or

distributor.

(8-a) "Independent mobility motor vehicle dealer" has the

meaning assigned by Section 2301.002, Occupations Code.

(9) "Independent motor vehicle dealer" means a dealer other than

a franchised motor vehicle dealer, an independent mobility motor

vehicle dealer, or a wholesale motor vehicle dealer.

(10) "Manufacturer" means a person who manufactures,

distributes, or assembles new vehicles.

(11) "Motorcycle" has the meaning assigned by Section 502.001.

(12) "Motor vehicle" has the meaning assigned by Section

502.001.

(13) "Semitrailer" has the meaning assigned by Section 502.001.

(14) "Trailer" has the meaning assigned by Section 502.001.

(15) "Vehicle" means a motor vehicle, motorcycle, house trailer,

trailer, or semitrailer.

(16) "Wholesale motor vehicle auction" means the offering of a

motor vehicle for sale to the highest bidder during a transaction

that is one of a series of regular periodic transactions that

occur at a permanent location.

(17) "Wholesale motor vehicle dealer" means a dealer who sells

motor vehicles only to a person who is:

(A) the holder of a dealer's general distinguishing number; or

(B) a foreign dealer authorized by a law of this state or

interstate reciprocity agreement to purchase a vehicle in this

state without remitting the motor vehicle sales tax.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Amended by Acts 1997, 75th Leg., ch. 165, Sec. 30.69(a), eff.

Sept. 1, 1997; Acts 2001, 77th Leg., ch. 76, Sec. 3, eff. May 14,

2001; Acts 2003, 78th Leg., ch. 1276, Sec. 14A.828, eff. Sept. 1,

2003.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

710, Sec. 3, eff. June 15, 2007.

Acts 2009, 81st Leg., R.S., Ch.

933, Sec. 2F.01, eff. September 1, 2009.

Sec. 503.002. RULES. The board may adopt rules for the

administration of this chapter.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Amended by Acts 2001, 77th Leg., ch. 76, Sec. 4, eff. May 14,

2001.

Sec. 503.003. DISPLAY OR SALE OF NONMOTORIZED VEHICLE OR

TRAILER. This chapter does not prohibit the display or sale of a

nonmotorized vehicle or trailer at a regularly scheduled vehicle

or boat show with multiple vendors in accordance with commission

rules.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Amended by Acts 2001, 77th Leg., ch. 76, Sec. 5, eff. May 14,

2001.

Sec. 503.004. BUYING, SELLING, EXCHANGING, OR MANUFACTURING

VEHICLES. This chapter does not prohibit a person from entering

into the business of buying, selling, or exchanging new or used

vehicles at wholesale or retail or from manufacturing vehicles.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 503.005. NOTICE OF SALE OR TRANSFER. (a) A manufacturer

or dealer shall immediately notify the department if the

manufacturer or dealer transfers, including by sale or lease, a

motor vehicle, trailer, or semitrailer to a person other than a

manufacturer or dealer.

(b) The notice must be in writing using the form provided by the

department and must include:

(1) the date of the transfer;

(2) the names and addresses of the transferrer and transferee;

and

(3) a description of the vehicle.

(c) A dealer who submits information to the database under

Section 503.0631 satisfies the requirement for the dealer to

notify the department of the sale or transfer of a motor vehicle,

trailer, or semitrailer under this section.

(d) The notice required under this section is in addition to the

application for vehicle registration and certificate of title a

dealer is required to submit under Section 501.0234.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

258, Sec. 8.01, eff. September 1, 2007.

Acts 2007, 80th Leg., R.S., Ch.

1336, Sec. 1, eff. September 1, 2007.

Sec. 503.006. NOTICE OF CHANGE OF ADDRESS. A dealer or

manufacturer who has been issued dealer's, converter's, or

manufacturer's license plates shall notify the department of a

change to the dealer's, converter's, or manufacturer's address

not later than the 10th day after the date the change occurs.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Amended by Acts 2001, 77th Leg., ch. 76, Sec. 6, eff. May 14,

2001.

Sec. 503.007. FEES FOR GENERAL DISTINGUISHING NUMBER. (a) The

fee for an original general distinguishing number is $500 for the

first year and $200 for each subsequent year for which the number

is valid.

(b) The fee for the renewal of a general distinguishing number

is $200 a year.

(c) The registration fee for a drive-a-way in-transit license is

$50 a year.

(d) A fee collected under this section shall be deposited to the

credit of the state highway fund.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Amended by Acts 1997, 75th Leg., ch. 165, Sec. 30.69(b), eff.

Sept. 1, 1997.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

732, Sec. 6, eff. September 1, 2007.

Sec. 503.008. FEES FOR LICENSE PLATES. (a) The fee for a metal

dealer's license plate is $20 a year.

(b) The fee for a manufacturer's license plate is $40 a year.

(c) The fee for an additional set of drive-a-way in-transit

license plates is $5 a year.

(d) A fee collected under this section shall be deposited to the

credit of the state highway fund.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Amended by Acts 1997, 75th Leg., ch. 165, Sec. 30.69(c), eff.

Sept. 1, 1997.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

732, Sec. 7, eff. September 1, 2007.

Sec. 503.009. PROCEDURE FOR CERTAIN CONTESTED CASES. (a) The

department's Motor Vehicle Board may conduct hearings in

contested cases brought under and as provided by this chapter.

(b) The procedures applicable to a hearing conducted under this

section are those applicable to a hearing conducted as provided

by Section 2301.606(a), Occupations Code.

(c) A decision or final order issued under this section is final

and may not be appealed, as a matter of right, to the commission.

(d) The department's Motor Vehicle Board may adopt rules for the

procedure, a hearing, or an enforcement proceeding for an action

brought under this section. (V.A.C.S. Art. 4413(36), Sec.

3.03(b).)

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 12, eff. June 1,

2003.

Sec. 503.010. TERM OF GENERAL DISTINGUISHING NUMBER, LICENSE, OR

LICENSE PLATE. Each general distinguishing number, license, or

license plate issued under this chapter is valid for the period

prescribed by the commission.

Added by Acts 2007, 80th Leg., R.S., Ch.

732, Sec. 8, eff. September 1, 2007.

Sec. 503.011. PRORATING FEES. If the commission prescribes the

term of a general distinguishing number, license, or license

plate under this chapter for a period other than one year, the

commission shall prorate the applicable annual fee required under

this chapter as necessary to reflect the term of the number,

license, or license plate.

Added by Acts 2007, 80th Leg., R.S., Ch.

732, Sec. 8, eff. September 1, 2007.

Sec. 503.012. COLLECTED MONEY. Section 403.095, Government

Code, does not apply to money received by the department and

deposited to the credit of the state highway fund in accordance

with this chapter.

Added by Acts 2007, 80th Leg., R.S., Ch.

732, Sec. 8, eff. September 1, 2007.

SUBCHAPTER B. GENERAL DISTINGUISHING NUMBER

Sec. 503.021. DEALER GENERAL DISTINGUISHING NUMBER. A person

may not engage in business as a dealer, directly or indirectly,

including by consignment, without a dealer general distinguishing

number in one of the categories described by Section

503.029(a)(6) for each location from which the person conducts

business as a dealer.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Amended by Acts 1997, 75th Leg., ch. 165, Sec. 30.69(d), eff.

Sept. 1, 1997.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

710, Sec. 4, eff. June 15, 2007.

Sec. 503.022. WHOLESALE MOTOR VEHICLE AUCTION GENERAL

DISTINGUISHING NUMBER. A person may not engage in the business

of conducting a wholesale motor vehicle auction without a

wholesale motor vehicle auction general distinguishing number for

each location from which the person conducts business.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 503.023. DRIVE-A-WAY OPERATOR LICENSE. A person may not

engage in business as a drive-a-way operator without a

drive-a-way in-transit license.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 503.024. EXCLUSIONS FOR DEALER. (a) A person is not

required to obtain a dealer general distinguishing number if the

person:

(1) sells or offers to sell during a calendar year fewer than

five vehicles of the same type that are owned and registered in

that person's name; or

(2) is a federal, state, or local governmental agency.

(b) For the purposes of Section 503.021, a person is not

engaging in business as a dealer by:

(1) selling or offering to sell a vehicle the person acquired

for personal or business use to a person other than a retail

buyer if the sale or offer is not made to avoid a requirement of

this chapter;

(2) selling, in a manner provided by law for the forced sale of

vehicles, a vehicle in which the person holds a security

interest;

(3) acting under a court order as a receiver, trustee,

administrator, executor, guardian, or other appointed person;

(4) selling a vehicle the person acquired from the vehicle's

owner as a result of paying an insurance claim if the person is

an insurance company;

(5) selling an antique passenger car or truck that is at least

25 years of age; or

(6) selling a special interest vehicle that is at least 12 years

of age if the person is a collector.

(c) For the purposes of Section 503.021, a domiciliary of

another state who holds a dealer license and bond, if applicable,

issued by the other state is not engaging in business as a dealer

by buying a vehicle from, selling a vehicle to, or exchanging a

vehicle with a person who:

(1) holds a general distinguishing number issued by the

department, if the transaction is not intended to avoid a

requirement of this chapter; or

(2) is a domiciliary of another state who holds a dealer license

and bond, if applicable, issued by the other state and the

transaction is not intended to avoid a requirement of this

chapter.

(d) For the purposes of Section 503.021, a licensed auctioneer

is not engaging in business as a dealer by, as a bid caller,

selling or offering to sell property to the highest bidder at a

bona fide auction if:

(1) legal or equitable title does not pass to the auctioneer;

(2) the auction is not held to avoid a requirement of this

chapter; and

(3) for an auction of vehicles owned legally or equitably by a

person who holds a general distinguishing number, the auction is

conducted at the location for which the general distinguishing

number was issued.

(e) In this section, "special interest vehicle" has the meaning

assigned by Section 683.077(b).

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 503.025. WHOLESALE MOTOR VEHICLE AUCTION EXCEPTION. A

person exempt under Section 503.024(d) is not required to obtain

a wholesale motor vehicle auction general distinguishing number.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 503.026. REQUIREMENT FOR EACH TYPE OF DEALER VEHICLE. A

person must obtain a dealer general distinguishing number for

each type of vehicle the person intends to sell.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Amended by Acts 1997, 75th Leg., ch. 871, Sec. 1, eff. Sept. 1,

1997.

Sec. 503.027. REQUIREMENTS RELATING TO DEALER LOCATION. (a) If

a person consigns for sale more than five vehicles in a calendar

year from a location other than the location for which the person

holds a wholesale motor vehicle auction general distinguishing

number or a dealer general distinguishing number, the location to

which the person consigns the vehicles must have a general

distinguishing number for that location.

(b) If a person is not otherwise prohibited from doing business

as a dealer at more than one location in the territory of a

municipality, a person may buy, sell, or exchange a vehicle of

the type for which the person holds a dealer general

distinguishing number from more than one location in the

territory of the municipality without obtaining an additional

dealer general distinguishing number. Each location must comply

with the requirements prescribed by this chapter and board rules

relating to an established and permanent place of business.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Amended by Acts 2001, 77th Leg., ch. 76, Sec. 7, eff. May 14,

2001.

Sec. 503.028. REQUIREMENTS RELATING TO WHOLESALE MOTOR VEHICLE

AUCTION LOCATION. (a) Except as provided by Subsection (b), the

department may not issue more than one general distinguishing

number for a location for which the wholesale motor vehicle

auction general distinguishing number has been issued.

(b) The department may issue to a person who holds a wholesale

motor vehicle auction general distinguishing number a dealer

general distinguishing number for the location for which the

wholesale motor vehicle auction general distinguishing number is

issued. The provisions of this subchapter relating to the

application for and issuance of a dealer general distinguishing

number apply to an application for and issuance of a dealer

general distinguishing number issued under this subsection.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 503.029. APPLICATION FOR DEALER GENERAL DISTINGUISHING

NUMBER. (a) An applicant for an original or renewal dealer

general distinguishing number must submit to the department a

written application on a form that:

(1) is provided by the department;

(2) contains the information required by the department;

(3) contains information that demonstrates the person meets the

requirements prescribed by Section 503.032;

(4) contains information that demonstrates the applicant has

complied with all applicable state laws and municipal ordinances;

(5) states that the applicant agrees to allow the department to

examine during working hours the ownership papers for each

registered or unregistered vehicle in the applicant's possession

or control; and

(6) specifies whether the applicant proposes to be a:

(A) franchised motor vehicle dealer;

(B) independent motor vehicle dealer;

(C) wholesale motor vehicle dealer;

(D) motorcycle dealer;

(E) house trailer dealer;

(F) trailer or semitrailer dealer; or

(G) independent mobility motor vehicle dealer.

(b) The applicant must swear to the truth of the information

contained in the application before an officer authorized to

administer oaths.

(c) A renewal application must be:

(1) submitted before the date the general distinguishing number

expires; and

(2) accompanied by the appropriate fee prescribed by Section

503.007.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Amended by Acts 1997, 75th Leg., ch. 165, Sec. 30.69(e), eff.

Sept. 1, 1997; Acts 1997, 75th Leg., ch. 871, Sec. 2, eff. Sept.

1, 1997.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

710, Sec. 5, eff. June 15, 2007.

Sec. 503.0295. INDEPENDENT MOBILITY MOTOR VEHICLE DEALERS. A

person who seeks to act as an independent mobility motor vehicle

dealer shall provide with each application for a general

distinguishing number and each renewal application:

(1) a written statement that the dealer:

(A) shall maintain written records until at least the third

anniversary of the date that adaptive work is performed; and

(B) agrees to comply with Chapter 469, Government Code; and

(2) proof that the person:

(A) maintains a garagekeeper's insurance policy in an amount of

at least $50,000 and a products-completed operations insurance

policy in an amount of at least $1 million per occurrence and in

the aggregate;

(B) holds a welder's certification, or that the person's

approved subcontractor holds a certificate, that complies with

the standards of the American Welding Society Sections D1.1 and

D1.3, if the person or subcontractor will perform any structural

modifications; and

(C) is registered with the National Highway Traffic and Safety

Administration.

Added by Acts 2007, 80th Leg., R.S., Ch.

710, Sec. 6, eff. June 15, 2007.

Sec. 503.030. APPLICATION FOR WHOLESALE MOTOR VEHICLE AUCTION

GENERAL DISTINGUISHING NUMBER. (a) An applicant for an original

or renewal wholesale motor vehicle auction general distinguishing

number must submit to the department an application that

contains:

(1) the information required by the department;

(2) information that demonstrates the person meets the

requirements prescribed by Section 503.032; and

(3) information that demonstrates the applicant has complied

with all applicable state laws and municipal ordinances.

(b) The applicant must swear to the truth of the information

contained in the application.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 503.031. APPLICATION FOR DRIVE-A-WAY IN-TRANSIT LICENSE.

(a) An applicant for a drive-a-way in-transit license must

submit to the commission an application containing the

information required by the commission.

(b) The license application must be accompanied by the

registration fee prescribed by Section 503.007(c).

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 503.032. ESTABLISHED AND PERMANENT PLACE OF BUSINESS. (a)

An applicant for a dealer general distinguishing number or

wholesale motor vehicle auction general distinguishing number

must demonstrate that the location for which the applicant

requests the number is an established and permanent place of

business. A location is considered to be an established and

permanent place of business if the applicant:

(1) 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 general distinguishing number;

(2) maintains on the location:

(A) a permanent furnished office that is equipped as required by

the department for the sale of the vehicles of the type specified

in the application; and

(B) a conspicuous sign with letters at least six inches high

showing the name of the applicant's business; and

(3) has sufficient space on the location to display at least

five vehicles of the type specified in the application.

(b) An applicant for a general distinguishing number as a

wholesale motor vehicle dealer is not required to maintain

display space in accordance with Subsection (a)(3).

(c) The applicant must demonstrate that:

(1) the applicant intends to remain regularly and actively

engaged in the business specified in the application for a time

equal to at least the term of the general distinguishing number

at the location specified in the application; and

(2) the applicant or a bona fide employee of the applicant will

be:

(A) at the location to buy, sell, lease, or exchange vehicles;

and

(B) available to the public or the department at that location

during reasonable and lawful business hours.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Amended by Acts 1997, 75th Leg., ch. 165, Sec. 30.69(f), eff.

Sept. 1, 1997.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

732, Sec. 9, eff. September 1, 2007.

Sec. 503.033. SECURITY REQUIREMENT. (a) The department may not

issue or renew a motor vehicle dealer general distinguishing

number or a wholesale motor vehicle auction general

distinguishing number unless the applicant provides to the

department:

(1) satisfactory proof that the applicant has purchased a

properly executed surety bond in the amount of $25,000 with a

good and sufficient surety approved by the department; or

(2) other security under Subsection (c).

(b) The surety bond must be:

(1) in a form approved by the attorney general;

(2) conditioned on:

(A) the payment by the applicant of all valid bank drafts,

including checks, drawn by the applicant to buy motor vehicles;

and

(B) the transfer by the applicant of good title to each motor

vehicle the applicant offers for sale.

(c) In lieu of the surety bond, the department may accept and

receive for the surety obligation:

(1) a pledge of cash;

(2) a cash deposit;

(3) a certificate of deposit; or

(4) another instrument the department determines to be adequate

security.

(d) A person may recover against a surety bond or other security

if the person obtains against a person issued a motor vehicle

dealer general distinguishing number or a wholesale motor vehicle

auction general distinguishing number a judgment assessing

damages and reasonable attorney's fees based on an act or

omission on which the bond is conditioned that occurred during

the term for which the general distinguishing number was valid.

(e) The liability imposed on a surety is limited to:

(1) the amount:

(A) of the valid bank drafts, including checks, drawn by the

applicant to buy motor vehicles; or

(B) paid to the applicant for a motor vehicle for which the

applicant did not deliver good title; and

(2) attorney's fees that are incurred in the recovery of the

judgment and that are reasonable in relation to the work

performed.

(f) The liability of a surety may not exceed the face value of

the surety bond. A surety is not liable for successive claims in

excess of the bond amount regardless of the number of claims made

against the bond or the number of years the bond remains in

force.

(g) This section does not apply to a person licensed as a

franchised motor vehicle dealer by the department's Motor Vehicle

Board.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Amended by Acts 1997, 75th Leg., ch. 755, Sec. 1, eff. Sept. 1,

1997.

Sec. 503.034. ISSUANCE AND RENEWAL OR DENIAL OF DEALER OR

WHOLESALE MOTOR VEHICLE AUCTION GENERAL DISTINGUISHING NUMBER.

(a) The department shall deny an application for the issuance or

renewal of a dealer general distinguishing number or a wholesale

motor vehicle auction general distinguishing number if the

department is satisfied from the application or from other

information before it that:

(1) information in the application is not true; or

(2) the applicant is guilty of conduct that would result in the

cancellation of the general distinguishing number under Section

503.038.

(b) The department may not issue a dealer general distinguishing

number until the applicant complies with the requirements of this

chapter.

(c) Repealed by Acts 2001, 77th Leg., ch. 76, Sec. 8, eff. May

14, 2001.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Amended by Acts 1997, 75th Leg., ch. 165, Sec. 30.69(g), eff.

Sept. 1, 1997; Acts 2001, 77th Leg., ch. 76, Sec. 8, eff. May 14,

2001.

Sec. 503.035. ISSUANCE AND RENEWAL OF DRIVE-A-WAY IN-TRANSIT

LICENSE. The department shall issue to an applicant on the

filing of the application and the payment of the fee a

drive-a-way in-transit license and in-transit license plates.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Amended by Acts 1997, 75th Leg., ch. 871, Sec. 3, eff. Sept. 1,

1997.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

732, Sec. 10, eff. September 1, 2007.

Sec. 503.036. REASSIGNMENT OF EVIDENCE OF OWNERSHIP; DEALER

CATEGORIES. (a) The holder of a franchised motor vehicle

dealer's general distinguishing number may buy, sell, or exchange

new or used motor vehicles and reassign a manufacturer's

certificate of origin, certificate of title, or other basic

evidence of ownership of any type of vehicle owned by the dealer

that the dealer is not otherwise prohibited by law from selling

or offering for sale.

(b) The holder of an independent motor vehicle dealer's general

distinguishing number or an independent mobility motor vehicle

dealer's general distinguishing number may reassign a certificate

of title or other basic evidence of ownership of any type of

vehicle owned by the dealer that the dealer is not otherwise

prohibited by law from selling or offering for sale.

(c) The holder of a wholesale motor vehicle dealer's general

distinguishing number may sell or offer to sell motor vehicles to

no person except:

(1) a person who holds a general distinguishing number; or

(2) a person who is legally recognized as and duly licensed or

otherwise qualified as a dealer under the laws of another state

or foreign jurisdiction.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Amended by Acts 1997, 75th Leg., ch. 165, Sec. 30.69(h), eff.

Sept. 1, 1997; Acts 1997, 75th Leg., ch. 755, Sec. 2, eff. Sept.

1, 1997.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

710, Sec. 7, eff. June 15, 2007.

Sec. 503.037. RIGHTS OF WHOLESALE MOTOR VEHICLE AUCTION. (a) A

person who holds a wholesale motor vehicle auction general

distinguishing number may accept on consignment one or more motor

vehicles to auction. The person may offer a motor vehicle for

sale only at the location for which the general distinguishing

number is issued and only by bid to the highest bidder. The title

to a motor vehicle may be in the name in which the general

distinguishing number is issued.

(b) Except as provided by Subsection (d), a person who holds a

wholesale motor vehicle auction general distinguishing number may

not sell a motor vehicle to a person other than a person who:

(1) is a dealer; or

(2) has a license and, if applicable, a bond issued by the

appropriate authority of another state or nation.

(c) A person who holds a wholesale motor vehicle auction general

distinguishing number may not allow another person to use the

auction's facilities or general distinguishing number to sell or

auction a motor vehicle.

(d) Subsection (b) does not prohibit a person who holds a

wholesale motor vehicle auction general distinguishing number

from offering for sale a motor vehicle to a person who is not a

dealer or who does not have a license issued by the appropriate

authority of another state, if the motor vehicle is owned by:

(1) this state or a department, agency, or subdivision of this

state; or

(2) the United States.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Amended by Acts 1997, 75th Leg., ch. 165, Sec. 30.70(a), eff.

Sept. 1, 1997.

Sec. 503.038. CANCELLATION OF GENERAL DISTINGUISHING NUMBER.

(a) The department may cancel a dealer's general distinguishing

number if the dealer:

(1) falsifies or forges a title document, including an affidavit

making application for a certified copy of a title;

(2) files a false or forged tax document, including a sales tax

affidavit;

(3) fails to take assignment of any basic evidence of ownership,

including a certificate of title or manufacturer's certificate,

for a vehicle the dealer acquires;

(4) fails to assign any basic evidence of ownership, including a

certificate of title or manufacturer's certificate, for a vehicle

the dealer sells;

(5) uses or permits the use of a metal dealer's license plate or

a dealer's temporary tag on a vehicle that the dealer does not

own or control or that is not in stock and offered for sale;

(6) makes a material misrepresentation in an application or

other information filed with the department;

(7) fails to maintain the qualifications for a general

distinguishing number;

(8) fails to provide to the department within 30 days after the

date of demand by the department satisfactory and reasonable

evidence that the person is regularly and actively engaged in

business as a wholesale or retail dealer;

(9) has been licensed for at least 12 months and has not

assigned at least five vehicles during the previous 12-month

period;

(10) has failed to demonstrate compliance with Sections 23.12,

23.121, and 23.122, Tax Code;

(11) uses or allows the use of the dealer's general

distinguishing number or the location for which the general

distinguishing number is issued to avoid the requirements of this

chapter;

(12) misuses or allows the misuse of a temporary tag authorized

under this chapter;

(13) refuses to show on a buyer's temporary tag the date of sale

or other reasonable information required by the department; or

(14) otherwise violates this chapter or a rule adopted under

this chapter.

(b) The department shall cancel a dealer's general

distinguishing number if the dealer obtains the number by

submitting false or misleading information.

(c) A person whose general distinguishing number is canceled

under this chapter shall surrender to a representative of the

department each license, license plate, temporary tag, sticker,

and receipt issued under this chapter not later than the 10th day

after the date the general distinguishing number is canceled.

The department shall direct any peace officer to secure and

return to the department any plate, tag, sticker, or receipt of a

person who does not comply with this subsection.

(d) A person whose general distinguishing number is canceled

automatically loses any benefits and privileges afforded under

Chapter 501 to the person as a dealer.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Amended by Acts 1997, 75th Leg., ch. 165, Sec. 30.69(i), eff.

Sept. 1, 1997; Acts 1997, 75th Leg., ch. 871, Sec. 4, 11(a), eff.

Sept. 1, 1997; Acts 2003, 78th Leg., ch. 1320, Sec. 3, eff. Sept.

1, 2003.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

793, Sec. 2, eff. September 1, 2009.

Sec. 503.039. PUBLIC MOTOR VEHICLE AUCTIONS. A motor vehicle

may not be the subject of a subsequent sale at an auction by a

holder of a dealer's general distinguishing number unless:

(1) equitable or legal title passes to the holder of a dealer's

general distinguishing number before a transfer of title to the

buyer; and

(2) the holder of a dealer's general distinguishing number

transfers the certificate of title to the buyer before the 21st

day after the date of the sale.

Added by Acts 2005, 79th Leg., Ch.

1127, Sec. 2, eff. September 1, 2005.

Sec. 503.040. SALES OF CERTAIN USED MOTOR VEHICLES CONSTITUTE

PRIVATE DISPOSITION. (a) This section applies only to the sale

of a used motor vehicle that constitutes collateral by a secured

party acting under Chapter 9, Business & Commerce Code, and

occurs at an auction conducted by an independent motor vehicle

dealer:

(1) at which neither the debtor nor the secured party is

permitted to bid; and

(2) for which there has been no advertisement or public notice

before the sale that specifically describes the collateral to be

sold, other than the inclusion of the motor vehicle in a list of

the vehicles to be offered at the auction made available to

potential bidders at the auction.

(b) The sale of the used motor vehicle constitutes a private

disposition for purposes of Chapter 9, Business & Commerce

Code.

Added by Acts 2009, 81st Leg., R.S., Ch.

836, Sec. 1, eff. September 1, 2009.

SUBCHAPTER C. LICENSE PLATES AND TAGS

Sec. 503.061. DEALER'S LICENSE PLATES. (a) Instead of

registering under Chapter 502 a vehicle that the dealer owns,

operates, or permits to be operated on a public street or

highway, the dealer may apply for, receive, and attach metal

dealer's license plates to the vehicle if it is the type of

vehicle:

(1) that the dealer sells; and

(2) for which the dealer has been issued a general

distinguishing number.

(b) The board may adopt rules regulating the issuance and use of

a license plate issued pursuant to the terms of this section.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Amended by Acts 2003, 78th Leg., ch. 1320, Sec. 4, eff. Sept. 1,

2003.

Sec. 503.0615. PERSONALIZED PRESTIGE DEALER'S LICENSE PLATES.

(a) The department shall establish and issue personalized

prestige dealer's license plates. The department may not issue

identically lettered or numbered dealer's plates to more than one

dealer.

(b) The department shall establish procedures for continuous

application for and issuance of personalized prestige dealer's

license plates. A dealer must make a new application and pay a

new fee for each registration period for which the dealer seeks

to obtain personalized prestige dealer's license plates. A dealer

who obtains personalized prestige dealer's license plates has

first priority on those plates for each subsequent registration

period for which the dealer applies.

(c) The annual fee for personalized prestige dealer's license

plates is $40, in addition to any fee otherwise prescribed by

this chapter.

(d) The department may issue to an applicant only one set of

personalized prestige dealer's license plates for a vehicle for a

six-year period. The department may issue a new set of

personalized prestige dealer's license plates within the six-year

period if the applicant pays a fee of $50 in addition to the fees

required by Subsection (c).

(e) On application and payment of the required fee for a

registration period following the issuance of the plates, the

department shall issue a registration insignia.

(f) Of each fee collected by the department under this section:

(1) $1.25 shall be deposited to the credit of the state highway

fund to defray the cost of administering this section; and

(2) the remainder shall be deposited to the credit of the

general revenue fund.

Added by Acts 1997, 75th Leg., ch. 871, Sec. 5, eff. Sept. 1,

1997.

Sec. 503.0618. CONVERTER'S LICENSE PLATES. (a) In this

section, "converter" means a person who holds a converter's

license issued under Chapter 2301, Occupations Code.

(b) Instead of registering under Chapter 502 a vehicle that a

converter operates or permits to be operated on a public street

or highway, the converter may apply for, receive, and attach

metal converter's license plates to the vehicle if it is the type

of vehicle that the converter is engaged in the business of

assembling or modifying.

(c) The fee for a metal converter's license plate is $20 a year.

(d) The department shall prescribe the form of an application

under this section.

Added by Acts 1999, 76th Leg., ch. 964, Sec. 1, eff. Sept. 1,

1999. Amended by Acts 2003, 78th Leg., ch. 1276, Sec. 14A.829,

eff. Sept. 1, 2003.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

732, Sec. 11, eff. September 1, 2007.

Sec. 503.062. DEALER'S TEMPORARY TAGS. (a) A dealer may issue

a temporary tag for use on an unregistered vehicle by the dealer

or the dealer's employees only to:

(1) demonstrate or cause to be demonstrated to a prospective

buyer the vehicle for sale purposes only;

(2) convey or cause to be conveyed the vehicle:

(A) from one of the dealer's places of business in this state to

another of the dealer's places of business in this state;

(B) from the dealer's place of business to a place the vehicle

is to be repaired, reconditioned, or serviced;

(C) from the state line or a location in this state where the

vehicle is unloaded to the dealer's place of business;

(D) from the dealer's place of business to a place of business

of another dealer;

(E) from the point of purchase by the dealer to the dealer's

place of business; or

(F) to road test the vehicle; or

(3) use the vehicle for or allow its use by a charitable

organization.

(b) Subsection (a)(1) does not prohibit a dealer from

permitting:

(1) a prospective buyer to operate a vehicle while the vehicle

is being demonstrated; or

(2) a customer to operate a vehicle temporarily while the

customer's vehicle is being repaired.

(c) A vehicle being conveyed under this section is exempt from

the inspection requirements of Chapter 548.

(d) The department may not issue a dealer temporary tag or

contract for the issuance of a dealer temporary tag but shall

prescribe:

(1) the specifications, form, and color of a dealer temporary

tag;

(2) procedures for a dealer to generate a vehicle-specific

number using the database developed under Section 503.0626 and

assign it to each tag;

(3) procedures to clearly display the vehicle-specific number on

the tag; and

(4) the period for which a tag may be used for or by a

charitable organization.

(e) For purposes of this section, "charitable organization"

means an organization organized to relieve poverty, to advance

education, religion, or science, to promote health, governmental,

or municipal purposes, or for other purposes beneficial to the

community without financial gain.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Amended by Acts 1997, 75th Leg., ch. 871, Sec. 6, eff. Sept. 1,

1997.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

258, Sec. 8.02, eff. September 1, 2007.

Acts 2007, 80th Leg., R.S., Ch.

1336, Sec. 2, eff. September 1, 2007.

Acts 2009, 81st Leg., R.S., Ch.

793, Sec. 3, eff. September 1, 2009.

Acts 2009, 81st Leg., R.S., Ch.

793, Sec. 4, eff. September 1, 2009.

Sec. 503.0625. CONVERTER'S TEMPORARY TAGS. (a) In this

section, "converter" means a person who holds a converter's

license issued under Chapter 2301, Occupations Code.

(b) A converter may issue a temporary tag for use on an

unregistered vehicle by the converter or the converter's

employees only to:

(1) demonstrate or cause to be demonstrated to a prospective

buyer who is an employee of a franchised motor vehicle dealer the

vehicle; or

(2) convey or cause to be conveyed the vehicle:

(A) from one of the converter's places of business in this state

to another of the converter's places of business in this state;

(B) from the converter's place of business to a place the

vehicle is to be assembled, repaired, reconditioned, modified, or

serviced;

(C) from the state line or a location in this state where the

vehicle is unloaded to the converter's place of business;

(D) from the converter's place of business to a place of

business of a franchised motor vehicle dealer; or

(E) to road test the vehicle.

(c) Subsection (b)(1) 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) A vehicle being conveyed while displaying a temporary tag

issued under this section is exempt from the inspection

requirements of Chapter 548.

(e) The department may not issue a converter temporary tag or

contract for the issuance of a converter temporary tag but shall

prescribe:

(1) the specifications, form, and color of a converter temporary

tag;

(2) procedures for a converter to generate a vehicle-specific

number using the database developed under Section 503.0626 and

assign it to each tag; and

(3) procedures to clearly display the vehicle-specific number on

the tag.

(f) A converter or employee of a converter may not use a

temporary tag issued under this section as authorization to

operate a vehicle for the converter's or the employee's personal

use.

Added by Acts 1999, 76th Leg., ch. 964, Sec. 2, eff. Sept. 1,

1999. Amended by Acts 2003, 78th Leg., ch. 1276, Sec. 14A.830,

eff. Sept. 1, 2003.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

258, Sec. 8.03, eff. September 1, 2007.

Acts 2007, 80th Leg., R.S., Ch.

1336, Sec. 3, eff. September 1, 2007.

Acts 2009, 81st Leg., R.S., Ch.

793, Sec. 5, eff. September 1, 2009.

Acts 2009, 81st Leg., R.S., Ch.

793, Sec. 6, eff. September 1, 2009.

Sec. 503.0626. DEALER'S AND CONVERTER'S TEMPORARY TAG DATABASE.

(a) The department shall develop and maintain a secure,

real-time database of information on vehicles to which dealers

and converters have affixed temporary tags. The database shall

be managed by the vehicle titles and registration division of the

department.

(b) The database must allow law enforcement agencies to use the

vehicle-specific number assigned to and displayed on the tag as

required by Section 503.062(d) or Section 503.0625(e) to obtain

information about the dealer or converter that owns the vehicle.

(c) Before a dealer's or converter's temporary tag may be

displayed on a vehicle, the dealer or converter must enter into

the database through the Internet information on the vehicle and

information about the dealer or converter as prescribed by the

department. The department may not deny access to the database

to any dealer who holds a general distinguishing number issued

under this chapter or who is licensed under Chapter 2301,

Occupations Code, or to any converter licensed under Chapter

2301, Occupations Code.

(d) The department shall adopt rules and prescribe procedures as

necessary to implement this section.

Added by Acts 2007, 80th Leg., R.S., Ch.

258, Sec. 8.04, eff. September 1, 2007.

Added by Acts 2007, 80th Leg., R.S., Ch.

1336, Sec. 4, eff. September 1, 2007.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

793, Sec. 7, eff. September 1, 2009.

Sec. 503.063. BUYER'S TEMPORARY TAGS. (a) Except as provided

by this section, a dealer shall issue to a person who buys a

vehicle one temporary buyer's tag for the vehicle.

(b) Except as provided by this section, the buyer's tag is valid

for the operation of the vehicle until the earlier of:

(1) the date on which the vehicle is registered; or

(2) the 60th day after the date of purchase.

(c) The dealer:

(1) must show in ink on the buyer's tag the actual date of sale

and any other required information; and

(2) is responsible for displaying the tag.

(d) The dealer is responsible for the safekeeping and

distribution of each buyer's tag the dealer obtains.

(e) The department may not issue a buyer's tag or contract for

the issuance of a buyer's tag but shall prescribe:

(1) the specifications, color, and form of a buyer's tag; and

(2) procedures for a dealer to:

(A) generate a vehicle-specific number using the database

developed under Section 503.0631 and assign it to each tag;

(B) generate a vehicle-specific number using the database

developed under Section 503.0631 for future use for when a dealer

is unable to access the Internet at the time of sale; and

(C) clearly display the vehicle-specific number on the tag.

(f) The department shall ensure that a dealer may generate in

advance a sufficient amount of vehicle-specific numbers under

Subsection (e)(2)(B) in order to continue selling vehicles for a

period of up to one week in which a dealer is unable to access

the Internet due to an emergency. The department shall establish

an expedited procedure to allow affected dealers to apply for

additional vehicle-specific numbers so they may remain in

business during an emergency.

(g) For each buyer's temporary tag, a dealer shall charge the

buyer a registration fee of not more than $5 as prescribed by the

department to be sent to the comptroller for deposit to the

credit of the state highway fund.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Amended by Acts 1997, 75th Leg., ch. 296, Sec. 3, eff. Sept. 1,

1997; Subsec. (e) amended by Acts 1997, 75th Leg., ch. 871, Sec.

7, eff. Sept. 1, 1997.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

258, Sec. 8.05, eff. September 1, 2007.

Acts 2007, 80th Leg., R.S., Ch.

1336, Sec. 5, eff. September 1, 2007.

Acts 2009, 81st Leg., R.S., Ch.

793, Sec. 8, eff. September 1, 2009.

Acts 2009, 81st Leg., R.S., Ch.

793, Sec. 9, eff. September 1, 2009.

Sec. 503.0631. BUYER'S TEMPORARY TAG DATABASE. (a) The

department shall develop and maintain a secure, real-time

database of information on persons to whom temporary buyer's tags

are issued that may be used by a law enforcement agency in the

same manner that the agency uses vehicle registration

information. The database shall be managed by the vehicle titles

and registration division of the department.

(b) The database must allow law enforcement agencies to use a

vehicle-specific number assigned to and displayed on the tag as

required by Section 503.063(e)(2) to obtain information about the

person to whom the tag was issued.

(c) Except as provided by Subsection (d), before a buyer's

temporary tag may be displayed on a vehicle, a dealer must enter

into the database through the Internet information about the

buyer of the vehicle for which the tag was issued as prescribed

by the department and generate a vehicle-specific number for the

tag as required by Section 503.063(e). The department may not

deny access to the database to any dealer who holds a general

distinguishing number issued under this chapter or who is

licensed under Chapter 2301, Occupations Code.

(d) A dealer shall obtain 24-hour Internet access at its place

of business, but if the dealer is unable to access the Internet

at the time of the sale of a vehicle, the dealer shall complete

and sign a form, as prescribed by the department, that states the

dealer has Internet access, but was unable to access the Internet

at the time of sale. The buyer shall keep the original copy of

the form in the vehicle until the vehicle is registered to the

buyer. Not later than the next business day after the time of

sale, the dealer shall submit the information required under

Subsection (c).

(e) The department shall adopt rules and prescribe procedures as

necessary to implement this section.

(f) The dealer may charge a reasonable fee not to exceed $20 for

costs associated with complying with this section.

Added by Acts 2007, 80th Leg., R.S., Ch.

258, Sec. 8.06, eff. September 1, 2007.

Added by Acts 2007, 80th Leg., R.S., Ch.

1336, Sec. 6, eff. September 1, 2007.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

793, Sec. 10, eff. September 1, 2009.

Sec. 503.064. MANUFACTURER'S LICENSE PLATES. (a) Instead of

registering a new vehicle that a manufacturer intends to test on

a public street or highway or to loan to a consumer for the

purpose described by Section 2301.605, Occupations Code, the

manufacturer may apply for, receive, and attach manufacturer's

license plates to the vehicle.

(b) If the vehicle to which the manufacturer's license plates

are attached is a commercial motor vehicle, the vehicle may not

carry a load.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Amended by Acts 2003, 78th Leg., ch. 1276, Sec. 14A.831, eff.

Sept. 1, 2003.

Sec. 503.065. BUYER'S OUT-OF-STATE LICENSE PLATES. (a) The

department may issue or cause to be issued to a person a

temporary license plate authorizing the person to operate a new

unregistered vehicle on a public highway of this state if the

person:

(1) buys the vehicle from a dealer outside this state and

intends to drive the vehicle from the dealer's place of business;

or

(2) buys the vehicle from a dealer in this state but intends to

drive the vehicle from the manufacturer's place of business

outside this state.

(b) The department may not issue a temporary license plate under

this section to a manufacturer or dealer of a motor vehicle,

trailer, or semitrailer or to a representative of such a dealer.

(c) A person may not use a temporary license plate issued under

this section on a vehicle transporting property.

(d) A temporary license plate issued under this section expires

not later than the 30th day after the date on which it is issued.

The department shall place or cause to be placed on the license

plate at the time of issuance the date of expiration and the type

of vehicle for which the license plate is issued.

(e) The fee for a temporary license plate issued under this

section is $3. Only one license plate may be issued for each

vehicle.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

793, Sec. 11, eff. September 1, 2009.

Sec. 503.066. APPLICATION FOR DEALER'S OR MANUFACTURER'S LICENSE

PLATES. (a) An applicant for one or more original or renewal

dealer's or manufacturer's license plates must submit to the

department a written application on a form that:

(1) is provided by the department; and

(2) contains a statement that the applicant agrees to allow the

department to examine during working hours the ownership papers

for each registered or unregistered vehicle in the applicant's

possession or control.

(b) The applicant must swear to the truth of the information

contained in the application before an officer authorized to

administer oaths.

(c) An application must be:

(1) submitted before the date the plate expires; and

(2) accompanied by the appropriate fee prescribed by Section

503.008.

(d) A metal license plate issued under this chapter expires on

the same date as the expiration of the license under which it is

issued.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Amended by Acts 1997, 75th Leg., ch. 165, Sec. 30.69(j), eff.

Sept. 1, 1997; Acts 1997, 75th Leg., ch. 871, Sec. 8, eff. Sept.

1, 1997; Acts 2001, 77th Leg., ch. 76, Sec. 9, eff. May 14, 2001;

Acts 2003, 78th Leg., ch. 1320, Sec. 5, eff. Sept. 1, 2003.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

732, Sec. 12, eff. September 1, 2007.

Sec. 503.067. UNAUTHORIZED REPRODUCTION, PURCHASE, USE, OR SALE

OF TEMPORARY TAGS. (a) A person may not produce or reproduce a

temporary tag or an item represented to be a temporary tag for

the purpose of distributing the tag to someone other than a

dealer or converter.

(b) A person may not operate a vehicle that displays an

unauthorized temporary tag.

(c) A person other than a dealer or converter may not purchase a

temporary tag.

(d) A person may not sell or distribute a temporary tag or an

item represented to be a temporary tag unless the person is:

(1) a dealer issuing the tag in connection with the sale of a

vehicle; or

(2) a printer or distributor engaged in the business of selling

temporary tags solely for uses authorized under this chapter.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

258, Sec. 8.08, eff. September 1, 2007.

Acts 2007, 80th Leg., R.S., Ch.

1336, Sec. 7, eff. September 1, 2007.

Acts 2007, 80th Leg., R.S., Ch.

1336, Sec. 8, eff. September 1, 2007.

Acts 2009, 81st Leg., R.S., Ch.

793, Sec. 12, eff. September 1, 2009.

Sec. 503.068. LIMITATION ON USE OF DEALER'S LICENSE PLATES AND

TAGS. (a) A dealer or an employee of a dealer may not use a

dealer's temporary tag as authorization to operate a vehicle for

the dealer's or the employee's personal use.

(b) A person may not use a metal dealer's license plate or

dealer's temporary tag on:

(1) a service or work vehicle; or

(2) a commercial vehicle that is carrying a load.

(c) For purposes of this section, a boat trailer carrying a boat

is not a commercial vehicle carrying a load. A dealer complying

with this chapter may affix to the rear of a boat trailer the

dealer owns or sells a metal dealer's license plate or temporary

tag issued under Section 503.061, 503.062, or 503.063.

(d) This section does not prohibit the operation or conveyance

of an unregistered vehicle using the full-mount method,

saddle-mount method, tow-bar method, or a combination of those

methods in accordance with Section 503.062 or 503.063.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

793, Sec. 13, eff. September 1, 2009.

Sec. 503.069. DISPLAY OF LICENSE PLATES AND TAGS. (a) A

license plate, other than an in-transit license plate, or a

temporary tag issued under this chapter shall be displayed in

accordance with commission rules.

(b) A drive-a-way operator who has been issued a drive-a-way

in-transit license shall display the operator's in-transit

license plates on each transported motor vehicle from the

vehicle's point of origin to its point of destination in this

state in accordance with the laws relating to the operation of a

vehicle on a public highway.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Amended by Acts 2001, 77th Leg., ch. 76, Sec. 10, eff. May 14,

2001.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

793, Sec. 14, eff. September 1, 2009.

Sec. 503.070. REMOVAL OF OUT-OF-STATE LICENSE PLATES. (a) A

dealer who purchases a vehicle that displays an out-of-state

license plate must remove the plate within a reasonable time.

(b) A dealer who purchases a vehicle for resale may not operate

the vehicle on a public street or highway in this state while the

vehicle displays an out-of-state license plate.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 503.071. NOTICE OF DRIVING OR TOWING FROM OUT OF STATE.

(a) A motor vehicle that is manufactured outside this state and

is driven or towed from the place of manufacture to this state

for sale in this state must have affixed to it a sticker stating

that the vehicle is being driven or towed from the place it was

manufactured.

(b) The sticker must be at least three inches in diameter and

must be affixed to the windshield or front of the motor vehicle

in plain view.

(c) The sticker must remain on the motor vehicle until the

vehicle is sold by a dealer.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

SUBCHAPTER D. ENFORCEMENT

Sec. 503.091. ENFORCEMENT AGREEMENT. The department may agree

with an authorized official of another jurisdiction to regulate

activities and exchange information relating to the wholesale

operations of nonresident vehicle dealers.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 503.092. ACTION TO ENFORCE CHAPTER. (a) The attorney

general or a district, county, or city attorney may enforce this

chapter and bring an enforcement action in the county in which a

violation of this chapter is alleged to have occurred.

(b) A justice or municipal court has concurrent original

jurisdiction with the county court or a county court at law over

an action to enforce this chapter.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Amended by:

Acts 2005, 79th Leg., Ch.

1128, Sec. 1, eff. June 18, 2005.

Sec. 503.093. ACTION TO ENFORCE SUBCHAPTER. (a) The department

or any interested person may bring an action, including an action

for an injunction, to:

(1) enforce a provision of Subchapter B; or

(2) prohibit a person from operating in violation of the

person's application for a general distinguishing number.

(b) A plaintiff other than the department may recover the

plaintiff's attorney's fees.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Amended by Acts 1997, 75th Leg., ch. 871, Sec. 9, eff. Sept. 1,

1997.

Sec. 503.094. CRIMINAL PENALTY. (a) A person commits an

offense if the person violates this chapter.

(b) Except as otherwise provided by this section, an offense

under this section is a misdemeanor punishable by a fine of not

less than $50 or more than $5,000.

(c) If the trier of fact finds that the person committed the

violation wilfully or with conscious indifference to law, the

court may treble the fine otherwise due as a penalty for the

violation.

(d) An offense involving a violation of:

(1) Section 503.067(b) or (c) is a Class C misdemeanor;

(2) Section 503.067(d) is a Class A misdemeanor;

(3) Section 503.067(a) is a state jail felony; and

(4) Section 503.067(b), (c), or (d) is a state jail felony if

the person who committed the offense criminally conspired to

engage in organized criminal activity.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

258, Sec. 8.09, eff. September 1, 2007.

Acts 2007, 80th Leg., R.S., Ch.

1336, Sec. 9, eff. September 1, 2007.

Sec. 503.095. CIVIL PENALTY. (a) In addition to any other

penalty prescribed by this chapter, a person who violates this

chapter or a rule adopted under this chapter is subject to a

civil penalty of not less than $50 or more than $1,000.

(b) For purposes of this section, each act in violation of this

chapter and each day of a continuing violation is a separate

violation.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.