Adopted Rules Title 43

TITLE 43. TRANSPORTATION

PART 1. TEXAS DEPARTMENT OF TRANSPORTATION

SUBCHAPTER B. ACCESS TO OFFICIAL RECORDS

The Texas Department of Transportation (department) adopts amendments to §§3.11-3.13, concerning access to official records. The amendments to §§3.11-3.13 are adopted without changes to the proposed text as published in the March 13, 2020 issue of the Texas Register (45 TexReg 1844). The rules will not be republished.

EXPLANATION OF ADOPTED AMENDMENTS

Amendments to §3.11, Definitions, delete the definitions of "political subdivision" and "special district," as these definitions are not used in the subchapter. Amendments to §3.11 also modify the definition of "written request" to update the definition to comply with the changes made by this rulemaking in §3.12 and to remove the reference to facsimile transmission.

Amendments to §3.12, Public Access, modify the manner in which a request for records under Government Code, Chapter 552, the Texas public information law, may be made to the department. Government Code, §552.234, which was added by S. B. No. 944, Acts of the 86th Legislature, Regular Session, provides that a written request for public information must be made by United States mail, email, hand delivery, or another appropriate method approved by the agency's governing body and allows a governmental body to designate addresses for receipt of open records requests. The amendments provide that a person may send a request by United States mail or by hand delivery to any district or division office. For email requests, the amended section continues to authorize email requests through the department's Internet website and adds a specified email address as another option. Requests will no longer be accepted by facsimile transmission.

Amendments to §3.13, Waiver of Fees for Certain Copies of Official Records, to provide clarity concerning the waiver of fees for official records. Subsection (a) currently requires the department to provide without charge records that are relevant to a filed internal employee grievance, with the General Counsel of the department determining which records are relevant. The amendments clarify that on request, the department will provide without charge to an official party to an internal complaint relating to discrimination, harassment, retaliation, or unprofessional conduct copies of documents that are relevant to that complaint. The amendments also provide that the division responsible for performing the complaint investigation, rather than the department's general counsel, will determine which records are relevant because that division will have all information relating to the investigation and can make the determination more efficiently and economically.

COMMENTS

No comments concerning the proposed amendments were received.

STATUTORY AUTHORITY

The amendments are adopted under Transportation Code, §201.101, which provides the Texas Transportation Commission with the authority to establish rules for the conduct of the work of the department and Government Code, §552.234, which authorizes the commission to approve one or more methods of delivery of requests for public information in addition to those required by statute and to designate one electronic mail address for receiving requests for public information.

CROSS REFERENCE TO STATUTES IMPLEMENTED BY THIS RULEMAKING

Government Code, §552.234.

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 May 28, 2020.

TRD-202002191

Becky Blewett

Deputy General Counsel

Texas Department of Transportation

Effective date: June 17, 2020

Proposal publication date: March 13, 2020

For further information, please call: (512) 463-8630

CHAPTER 7. RAIL FACILITIES

The Texas Department of Transportation (department) adopts amendments to §§7.30, 7.32, 7.33, 7.34, 7.38, and 7.42 concerning Rail Safety and §7.105 concerning Railroad Grade Crossings. The amendments to §§7.30, 7.32, 7.33, 7.34, 7.38, 7.42 and 7.105 are adopted without changes to the proposed text as published in the December 27, 2019 issue of the Texas Register (45 TexReg 8218) and will not be republished.

EXPLANATION OF ADOPTED AMENDMENTS

The department has transferred the Rail Safety program from the Traffic Safety Division, formerly known as Traffic Operations Division, to the Rail Division. The amendments to §§7.30, Definitions, 7.32, Filing Requirements, 7.33, Reports of Accidents/Incidents, 7.34, Hazardous Materials - Telephonic Reports of Incidents, 7.38, Wayside Detector Map, List, or Chart, and 7.42, Administrative Review, are needed to change the responsible division in the rules from the Traffic Safety Division to the Rail Division.

Amendments to §§7.33 and 7.34, also delete the telephone number used for giving telephonic notice and refer to the telephone number posted on the department's website. This change allows for greater ease in locating the proper number.

Amendments to §7.105, Spur Tracks Crossing Existing Highways, delete the term "spur" from the phrase "spur tracks" so that the rule applies to all railroad tracks that cross a highway or road. This change is made to conform the text of the rule with actual practice. "Spur" is not a defined term, and §7.105 has been applied to all railroad crossings. A change is also made to §7.105 to state that the person requesting the crossing is responsible for all initial construction costs, but not necessarily all future costs as implied by the current rule. The initial construction costs include active warning devices considered appropriate by the department to assure the crossing meets applicable safety requirements. The regulation does not address future costs, as such costs are handled under applicable state and federal law.

COMMENTS

No comments on the proposed amendments to §§7.30, 7.32, 7.33, 7.34, 7.38, 7.42, and 7.105 were received.

SUBCHAPTER D. RAIL SAFETY

43 TAC §§7.30, 7.32 - 7.34, 7.38, 7.42

STATUTORY AUTHORITY

The amendments are adopted under Transportation Code, §201.101, which provides the Texas Transportation Commission (commission) with the authority to establish rules for the conduct of the work of the department and more specifically, Transportation Code, §111.101, which authorizes the commission to adopt rules to implement federal rail safety laws, Transportation Code, §193.001, which relates to the safe packing or transportation of hazardous materials, and Transportation Code, §471.004, which requires the department to adopt rules governing the installation and maintenance of reflecting material at grade crossings.

CROSS REFERENCE TO STATUTES IMPLEMENTED BY THIS RULEMAKING

Transportation Code, Chapters 111, 193, and 471.

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 May 28, 2020.

TRD-202002192

Becky Blewett

Deputy General Counsel

Texas Department of Transportation

Effective date: June 17, 2020

Proposal publication date: December 27, 2019

For further information, please call: (512) 463-8630

SUBCHAPTER F. RAILROAD GRADE CROSSINGS

43 TAC §7.105

STATUTORY AUTHORITY

CROSS REFERENCE TO STATUTES IMPLEMENTED BY THIS RULEMAKING

Transportation Code, Chapters 111, 193, and 471.

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 May 28, 2020.

TRD-202002193

Becky Blewett

Deputy General Counsel

Texas Department of Transportation

Effective date: June 17, 2020

Proposal publication date: December 27, 2019

For further information, please call: (512) 463-8630

PART 10. TEXAS DEPARTMENT OF MOTOR VEHICLES

CHAPTER 217. VEHICLE TITLES AND REGISTRATION

INTRODUCTION. The Texas Department of Motor Vehicles adopts amendments to 43 TAC §§217.3, 217.141 - 217.143 and new §§217.401 - 217.407, concerning assembled vehicles and additional changes in §217.3 to conform provisions that are not related to assembled vehicles with statute. The department adopts §§217.141, 217.143, 217.401 - 217.403, and 217.407 without changes to the proposed text as published in the December 20, 2019 issue of the Texas Register (44 TexReg 7866). The department adopts §§217.3, 217.142, and 217.404 - 217.406 with changes to the proposed text as published in the December 20, 2019 issue of the Texas Register (44 TexReg 7866). The rules will be republished.

REASONED JUSTIFICATION. The amendments to §217.3(5) and (6), §§217.141 - 217.143, and new §§217.401 - 217.407 are necessary to implement Transportation Code Chapter 731, as added by House Bill (HB) 1755, 86th Legislature, Regular Session (2019). Transportation Code Chapter 731 establishes titling and registration requirements for assembled vehicles.

House Bill 1755, Section 12, directs the board of the Texas Department of Motor Vehicles, as soon as practicable after the effective date of HB 1755, to: (1) adopt the rules required under Transportation Code Chapter 731; and (2) adopt or modify any rules necessary to implement the changes in law made by HB 1755. Transportation Code Chapter 731 requires rules concerning eligibility for title and registration in Transportation Code §731.051(a); rules concerning procedures and requirements for title and registration in Transportation Code §731.052(a); and rules concerning inspection requirements for issuance of title in Transportation Code §731.101(c). The amendments to §217.3 and §§217.141 - 217.143 and new §§217.401 - 217.407 provide the necessary rules and implement Transportation Code Chapter 731 as required in HB 1755, Section 12.

Transportation Code §731.051 provides that the owner of an assembled vehicle may apply for a title and register the vehicle in accordance with Transportation Code Chapters 501 and 502 and the rules adopted to implement Chapter 731. The department applies that provision in these rules to create a certain and workable path for owners to title and register assembled vehicles, but also to maintain the purpose of Transportation Code Chapter 501 that is stated, in part, in Transportation Code §501.003 as to lessen and prevent: (1) the theft of motor vehicles; and (2) the importation into this state of and traffic in motor vehicles that are stolen.

Also, the department adopts amendments to §217.3(1), (2), and (4) to conform those provisions with statute, including Transportation Code §501.036 concerning farm trailers and farm semitrailers; Transportation Code §501.037 concerning trailers and semitrailers; and Transportation Code §541.201 and other changes made in HB 3171, 86th Legislature, Regular Session (2019), concerning motor-driven cycles. The amendments to §217.3(1), (2), and (4) are unrelated to Transportation Code Chapter 731, but are necessary to conform those provisions with statute.

The amendment to §217.3 conforms the opening sentence with changes in statute made by HB 1548, 86th Legislative Session, Regular Session (2019), that allow for certain vehicles, for example off-highway vehicles, to be titled under Transportation Code Chapter 501 without a registration requirement. The amendment also adds Transportation Code Chapter 731, concerning assembled vehicles, to reflect changes in statutes made by HB 1755.

The amendments to §217.3(1), (2), and (4) conform the rules to existing statute, including statutory amendments passed by the 86th Legislature, Regular Session (2019). The amendments to §217.3(5) and (6) are necessary to implement Transportation Code Chapter 731, concerning assembled vehicles, as added by HB 1755.

The amendment to §217.3(1) removes the term "motor-driven cycle." House Bill 3171 repealed the definition of the term in Transportation Code §541.201 and removed all uses of the term in the Transportation Code.

The amendment to §217.3(2)(D) concerning farm trailers and farm semitrailers conforms the subparagraph to Transportation Code §501.004(b)(1) and §501.036. These statutes require a farm trailer or farm semitrailer with a gross weight of more than 34,000 pounds to be titled, while permissively allowing farm trailers or farm semitrailers with a gross weight of 34,000 pounds or less to be titled. As addressed in response to comments, the proposed rule text has been changed to remove the first sentence referring to registration under Transportation Code §502.146, because Transportation Code §501.036 does not require a farm trailer or farm semitrailer to be eligible for registration under Transportation Code §502.146. Thus, a reference to Transportation Code §502.146 is not necessary for permissive titling purposes under Transportation Code §501.036.

The amendment to §217.3(4) conforms the paragraph with Transportation Code §501.037, concerning trailers, semitrailers, and house trailers, by removing terms that are not in that section or the Transportation Code, and makes nonsubstantive changes to conform with department style.

The amendment to §217.3(5) removes the existing language and adds a reference to proposed new Subchapter L of Chapter 217, which will implement Transportation Code Chapter 731, concerning assembled vehicles.

The amendment to §217.3(6)(A) conforms the language to Transportation Code §731.051(b)(6), which prohibits titling of a vehicle that has been stripped to the extent that the vehicle loses its original identity. The amendment to §217.3(6)(B) removes the prohibition against titling a dune buggy, because a dune buggy is an assembled vehicle and eligible for title under Transportation Code Chapter 731.

The amendment to §217.3(6)(C) redesignates the subparagraph as subparagraph (B) and conforms the language to Transportation Code §731.051(b)(5), which prohibits titling of a vehicle that the manufacturer has designated for on-track racing only. Additionally, the amendment to §217.3(6) redesignates the subparagraphs following subparagraph (B), and changes "and/or" to "or" to reflect current department style.

The amendments to §§217.141 - 217.143 implement the assembled vehicle inspection requirements under Transportation Code §731.101 and §731.102 as enacted by HB 1755. The department has amended the existing sections related to the Transportation Code §504.501(e) street rod and custom vehicle registration inspection because it is the same inspection that will be applied to titling assembled vehicles under Transportation Code §731.101.

The amendment to §217.141 accounts for the changed scope of §§217.141 - 217.143. The sections now address the new initial titling inspection of assembled vehicles required under Transportation Code §731.101, and the existing registration inspection required for street rods and custom vehicles under Transportation Code §504.501(e).

The amendments to §217.142 provide definitions for terms used in §§217.141 - 217.143. The amendment to §217.142(a) incorporates terms defined in Transportation Code §731.001. Because Transportation Code §731.001 and the existing text of §217.142(2) and (4) both define the terms "street rod" and "custom vehicle" by reference to Transportation Code §504.501, the existing definitions of "street rod" and "custom vehicle" in this section have been removed.

The amendment to §217.142(b)(1) adds the term "modification" to clarify that the defined phrase "altered from the manufacturer's original design" is not limited to the "removal, addition, or substitution, of at least one major component part." In addition, the department has amended the definition to include a direct reference to the definition of a major component part under Transportation Code §501.091. The change is to clarify that the term "major component part" continues to apply to making a determination under Transportation Code §504.501(f) of whether a vehicle qualifies as a custom vehicle or street rod, but is not a definition for general application in Subchapter G. The department has removed the existing stand-alone definition of "major component part" in §217.142. The department has also removed the quotation marks around the defined term in accordance with current department style.

The terms "basic component part," "equipment," and "major component part" are substantively independent, and each term serves a different purpose in the proposed rules. The term "basic component part" is used in Subchapter L to identify the items for which evidence of ownership will need to be established for titling assembled vehicles. The term "major component part" is only used in the definition of "altered from the manufacturer's original design" in §217.142(b)(1) of Subchapter G to identify the elements of a motor vehicle that, when modified, substituted, removed, or added, are relevant to the classification of a vehicle as a custom vehicle or street rod. The term "equipment" is used in Subchapter G to establish the items and systems that need to be inspected under Transportation Code §504.501(e) or §731.101.

The terminology used in the definitions is based on statute, historical application, and purpose. In scope, the definitions of all three terms refer to portions of a vehicle. As defined, the term "major component part" would include all items that are "basic component parts," but not all items and systems that are "equipment."

The amendment to §217.142(b)(2) defines the term "applicant." The term clarifies the types of owners that would apply for title to an assembled vehicle. The term is defined in §217.402 with the same meaning and for the same purpose.

The amendment to §217.142(b)(3) defines the new term "equipment" to describe the items and systems that the inspector will need to inspect. The inspection will be of those items and systems required by law to be present on the vehicle as inspected, which may not include all the listed items and systems depending on the type of vehicle. The definition also distinguishes "equipment" from "basic component part" and "major component part" as previously discussed in this proposal. The definition has been changed to correct the references to the defined terms "basic component part" and "major component part."

As addressed in the response to comments, the definition of "equipment" includes four systems: brakes, steering, fuel supply, and exhaust; and the "integral items" to those systems. All the systems are items currently inspected for an assembled vehicle on the ASE Safety Inspection for Assembled Vehicles (Form VTR-64). The inspection will be of parts that cause the system to function to ensure that they are designed for the purpose for which they are being used, meet applicable safety standards, and are assembled for stable and safe operation on the roadway.

The amendment to §217.142(b)(4) defines the term "manufacturer" by reference to the definition in Occupations Code §2301.002. The definition also clarifies that a hobbyist is not a manufacturer, which is consistent with the definition of hobbyist in Transportation Code §731.001. The term is also defined in §217.402 with the same meaning and for the same purpose.

The amendment to §217.142(b)(5) clarifies that the definition of "master technician" used in this subchapter refers to a Certified Master Automobile and Light Truck Technician, which is required under Transportation Code §731.101(b)(2). The clarification is necessary because Transportation Code §731.101(a) requires an assembled vehicle to pass an inspection based on the type of assembled vehicle being inspected. Transportation Code §731.101(b) requires the applicant to submit proof that the assembled vehicle passed the inspection and a copy of the master technician's Automobile and Light Truck certification. The limitation of the credentialing requirement in §731.101(b)(2) limits the titling inspection requirement to those assembled vehicle types that can be inspected by an individual holding an Automobile and Light Truck master certification. The relevant types of assembled vehicles are assembled motor vehicles, custom vehicles, replicas, and street rods, as described in proposed amendments to §217.143(a). The legislative requirement limiting the inspection to the Automobile and Light Truck certification is also consistent with the consideration that a master certification does not exist for motorcycles or trailers; and the limited number of individuals holding a Medium and Heavy Truck master certification could create an impediment to titling glider kits.

As discussed in response to comments, the inspection will apply to assembled vehicles newly constructed and required to be titled under Transportation Code Chapter 731. Previously titled vehicles or newly manufactured vehicles that are not assembled vehicles would be titled under the same requirements that existed prior to the enactment of Transportation Code Chapter 731. The inspection would apply to the equipment listed in §217.142(b)(3) and be based on the standards in §217.143.

The amendments to §217.143 implement the new initial titling inspection requirements under Transportation Code §731.101 and maintain the existing custom vehicle and street rod registration requirement under Transportation Code §501.504(e). To reflect the change, the department has changed the title of §217.143 to "Inspection Requirements."

The amendments to §217.143(a) provide that an assembled motor vehicle, replica, custom vehicle, or street rod must be inspected by a master technician as required under Transportation Code Chapter 731 and 43 Texas Administrative Code, Chapter 217, Subchapter L. For reasons previously discussed regarding the definition of "master technician," the inspection is not required for an assembled motorcycle, assembled trailer, or glider kit.

As discussed in response to comments, the inspection is not limited to the items listed in Transportation Code §731.102. Transportation Code §731.101(c) provides that the "[T]he board by rule shall establish procedures and requirements for the inspection required by this section. Rules adopted under this subsection: (1) must establish inspection criteria; [and] (2) may specify additional items of equipment that must be inspected by a master technician and may specify different items of equipment that must be inspected based on the type of assembled vehicle."

The amendment to §217.143(b) requires a custom vehicle or street rod to have a safety inspection performed by a master technician as required under Transportation Code §504.501(e) for initial registration.

As discussed in response to comments, the titling inspection is only required when the assembled vehicle is titled for the first time. A subsequent titling inspection would be required if the vehicle is disassembled and reassembled as described in proposed §217.407.

A street rod and custom vehicle inspection is only required if the owner of the vehicle desires street rod or custom vehicle license plates. The street rod and custom vehicle inspection is required under Transportation Code §504.501, and it applies to the owner of any vehicle seeking street rod or custom vehicle license plates. However, the department will accept a single inspection if street rod or custom vehicle license plates are requested during the initial title application process, because the inspections are the same, except for meeting the additional street rod and custom vehicle requirements.

The amendments to §217.143(c) and (d) provide the inspection requirements for assembled vehicles. The amendment to existing §217.143(c) states that the inspection of an assembled vehicle must evaluate the structural integrity of the equipment. The proposed amendments to §217.143(d)(1), (2), and (4) amend the style of existing text in §217.143(b) requiring the inspector to certify that the vehicle is structurally stable, meets the necessary conditions to be operated safely on the roadway, and is equipped and operational with all equipment required by statute as a condition of sale during the year the vehicle was manufactured or resembles. The amendments to §217.143(d) also add new §217.143(d)(3) that tracks the safety requirement in Transportation Code §731.051(b)(7). The department proposes removing the existing text of §217.143(c) because it is duplicative of the requirement in proposed §217.143(d)(4).

As discussed in response to comments, the master technician is not required to certify that the vehicle has not been built using a body or frame from a "nonrepairable" vehicle or that it does not contain any electrical or mechanical components from a "flood-damaged" vehicle. The items are prohibited under Transportation Code §731.051(2) and (3), but commenters did not describe the means, process, or costs for a master technician to reasonably make such determinations. In reviewing applications, the department will check the National Motor Vehicle Title Information System (NMVTIS) as is the department's current procedure. Purchasers and others may also inspect the motor vehicle before acquiring it as is the case with any used motor vehicle.

The amendments to §217.143 also add new §217.143(e), which provides that an inspection under §217.143(a) is in addition to any other required inspection of an assembled vehicle, including an inspection required under Transportation Code Chapter 548. An assembled vehicle designated as a custom vehicle or street rod is not subject to the annual Transportation Code Chapter 548 inspection. Other assembled vehicles may be subject to the Chapter 548 inspection requirement.

The amendments to §217.143 also add new §217.143(f) and (g) relating to the payment of fees. Under new §217.143(f), the applicant must pay all fees to the master technician for the inspection of an assembled vehicle required under subsection (a) of this section, including any reinspection. Under proposed new §217.143(g), any additional fees must be paid to the inspector or as otherwise required by law. The subsections clarify that inspection fees under this section are not to be paid to the department. The department does not set any of the inspection fees for an inspection required under this section.

New Chapter 217, Subchapter L, §§217.401 - 217.407 implements the assembled vehicle titling and registration requirements under Transportation Code Chapter 731, as enacted by HB 1755. New §217.401(a) describes the purpose and scope of proposed new Subchapter L. New §217.401(b) provides that for the purposes of this subchapter a glider kit issued a title with a "RECONSTRUCTED" remark is a replica. The purpose of this is to state the department's interpretation that a dealer may transfer, or be transferred ownership, of a glider kit under new Transportation Code §503.013.

New §217.402 defines terms that will be used in the subchapter. Proposed new §217.402(a) incorporates terms defined in Transportation Code §731.001.

New §217.402(b)(1) defines the term "applicant." The term clarifies the types of owners that would apply for title of an assembled vehicle. The term is defined in §217.142 with the same meaning and for the same purpose.

New §217.402(b)(2) defines the term "basic component part" for use in this chapter. The term is limited to the vehicle's motor, body, and frame, as applicable for the type of vehicle. For example, an automobile would have all three parts; a motorcycle just a motor and frame; and a trailer just a frame and body.

Evidence of ownership will be required based on the basic component part of the assembled vehicle under proposed new §217.405. The definition also distinguishes between "basic component part" and "major component part" as previously discussed in this proposal.

As discussed in response to comments, the department recognizes that other parts of a motor vehicle may have an identification number stamped on them, such as a motorcycle transmission. A law enforcement VIN inspection may still check for such numbers, but the department does not consider it necessary to expand the existing number or type of basic component parts that the owner must demonstrate ownership of to obtain an assembled vehicle title under Transportation Code Chapter 731.

New §217.402(b)(3) defines the term "continuous sale," which is basic in determining if a person is a hobbyist as defined in Transportation Code §731.001. The definition provides that the term means "offering for sale or the sale of five or more assembled vehicles of the same type in a calendar year when such vehicles are not owned and titled in the name of the owner." The department has proposed five vehicles in the definition because that is the number of vehicles that could classify the person as a dealer under Transportation Code §503.024.

New §217.402(b)(4) defines the term "manufacturer" by reference to the definition in Occupations Code §2301.002. The definition also clarifies that a hobbyist is not a manufacturer, which is consistent with the definition of hobbyist in Transportation Code §731.001. The term is also defined in §217.142 with the same meaning and for the same purpose.

New §217.402(b)(4) defines the term "personal use" which is basic in determining if a person is a hobbyist as defined in Transportation Code §731.001. The definition provides that the term means "the construction of an assembled vehicle by a hobbyist for use by the hobbyist."

New §217.403 provides the basic procedure for issuing an initial title on an assembled vehicle and subsequent transfers of the title. Proposed new §217.403(a) requires an applicant for an initial title on an assembled vehicle to apply for the title in accordance with 43 Texas Administrative Code Chapter 217, Subchapter L, and Transportation Code Chapter 731.

New §217.403(b) requires a person transferring title on a titled assembled vehicle to transfer title in accordance with proposed new §217.407. That section provides that once an assembled vehicle is titled, including assembled vehicles brought in from another state, title to the assembled vehicle will transfer in that same manner as any other titled vehicle, except that only assembled vehicles that are replicas may be transferred to and by dealers.

New §217.403(c) provides that unless the assembled vehicle is ineligible for title under Transportation Code §731.051(b), the department shall issue a title if the assembled vehicle passes the required inspection under proposed amended §217.143 and Transportation Code §731.101; passes any additional inspection required by Transportation Code Chapter 548; and following receipt of a fully completed application and all required forms and fees, as identified in §217.404.

New §217.404 details the application process. The process differs from ordinary title application transactions, because in this case the department will review the application before it is formally submitted to a county tax assessor-collector. The process should add uniformity and avoid rejections and the need for resubmission of the application.

New §217.404(a) lists the information required in the application. New §217.404(a)(1) requires photographs of the vehicle and, if a replica, a photograph of what the vehicle is a replica of. These will assist in identifying the vehicle.

New §217.404(a)(2) requires evidence of ownership of the basic component parts of the assembled vehicle as described in §217.405. Evidence of ownership is necessary to establish title to the vehicle or process an application for assignment or reassignment of a vehicle identification number under Transportation Code §501.033 as required by Transportation Code §731.054.

New §217.404(a)(3) requires, if applicable, proof, on a form prescribed by the department, of a safety inspection required under §217.143. Under the proposal, the requirement is applicable only to assembled motor vehicles, custom vehicles, replicas, and street rods.

New §217.404(a)(4) requires a copy of the Automobile and Light Truck certification, or a successor certification, for the master technician who completed the inspection described in §217.404(a)(3), if the inspection was required.

New §217.404(a)(5) requires a copy of the inspection that may be required under Transportation Code Chapter 548 if the assembled vehicle is to be registered for operation on the roadway. New §217.404(a)(6) requires a rebuilt vehicle statement; (7) a weight certificate; and (8) the applicant's identification information as required in §217.5(d).

New §217.404(a)(9) requires a vehicle identification number to be established by one of the four listed means. The means are authorized in Transportation Code §731.054. New §217.404(a)(9)(A) and (B) allow for the process of applying for an application for assignment or reassignment of a vehicle identification number. That process is under Transportation Code §501.033 and requires a vehicle identification number inspection under Transportation Code §501.032. The inspection is consistent with Transportation Code §731.051 which requires titling to be done under Chapter 501 and Chapter 731. Transportation Code §501.003 states that Transportation Code Chapter 501 is to be liberally construed to lessen and prevent (1) the theft of motor vehicles, and (2) the importation into this state of and traffic in motor vehicles that are stolen. New §217.404(a)(9)(C) and (D) are based on the vehicle identification numbers assigned by the maker of a kit or the manufacturer of the assembled vehicle respectively authorized in Transportation Code §731.054.

As discussed in response to comments, vehicle identification numbers (VIN), serial numbers, and motor numbers are collected in the vehicle identification number inspection process and master technician inspection process on forms VTR 68-A and VTR-64, respectively. Under existing procedures, the department will as necessary assign or reassign a motor number to a vehicle that is identified by a motor number (for example a pre-1956 General Motors vehicle). The department does not track motor or transmission numbers for vehicles identified by VIN. Also, the department does not require persons replacing a motor or a transmission on an assembled vehicle or other vehicle to go through an additional registration process if the vehicle is identified by a VIN.

New §217.404(b) provides that the department will review the documents and determine that the application is complete and the vehicle meets the qualifications to be titled as an assembled vehicle. As addressed in response to comments, the proposed procedures and document submission requirements implement Transportation Code Chapter 731 and HB 1755. The department will review each title application for compliance with the rules. If the department determines that a potential violation has occurred, the department may seek an enforcement action as authorized by statute.

New §217.404(c) provides that the department will notify the applicant in writing if the department determines the application is complete and the vehicle is determined to qualify for titling as an assembled vehicle. As addressed in response to comments, the letter under §217.404(c) will list the supporting documents and information approved by the department and required to be submitted the tax assessor collector.

New §217.404(d) provides that upon the receipt of the department's written approval, the applicant may proceed to the county tax assessor-collector for submission and processing of the application. New §217.404(d) lists that the applicant must provide the county tax assessor with the department's written letter, a copy of the items required under §217.404(a)(1) - (9) that were submitted to the department, and, if the vehicle is being registered, the requirements identified in §217.23.

New §217.405 addresses evidence of ownership and how it may be demonstrated either from a manufacturer, a hobbyist or other owner, or with a bond. New §217.405(a) provides that evidence of ownership must accompany the title application submitted to the department, which is consistent with the requirement in §217.404(a)(2).

New §217.405(b) provides that evidence of ownership for a replica, custom vehicle, street rod, or glider kit built by a manufacturer must be provided on a manufacturer's certificate of origin and contain the information listed in that subsection.

New §217.405(c) describes the evidence of ownership requirements for an assembled vehicle that has been built by a hobbyist, or has not otherwise been previously titled by the owner. Evidence is required for the basic component parts of the vehicle. If the basic component parts are from vehicles titled in the name of the owner, evidence of ownership will be based on the identifying numbers on the parts. These will vary based on the type of part and the year of manufacture. Additionally, component parts not titled in the name of the owner may be used with proper documentation, such as a bill of sale.

New §217.405(d) provides that an owner unable to obtain evidence of ownership may file a bond with the department under Transportation Code §501.053 and §217.9. Proposed new §217.405(e) lays out the process of obtaining the vehicle identification number and the bond. The bond will be the evidence of ownership to obtain the title.

The process is similar to that of any other applicant, in that the applicant must take or deliver the documentation required under §217.404(a)(1) - (9) to the department's regional service center for review, except that the applicant utilizing the bond procedure will not be required to have evidence of ownership under §217.405(a) - (c). The documentation requirements for the bond procedure would include a vehicle identification number inspection report if the applicant intends to establish a vehicle identification number under §217.404(a)(9)(A) or (B). The department will review the vehicle identification number inspection report and other documents.

A vehicle identification number will be reassigned based on the report and documentation if a vehicle identification number by which the assembled vehicle will be identified can be determined. If the vehicle identification number cannot be reassigned based on the lack of a number, the department will assign a department-issued number.

The applicant will then need to complete a statement of fact concerning the acquisition of the vehicle. If the application is complete, the department will use the assigned or reassigned number to issue a letter for the applicant to obtain a bond. The applicant will take the bond as evidence of ownership and other required documents to the county tax assessor-collector.

New §217.406 describes the issuance and form of title. Proposed new §217.406 provides that the county tax assessor-collector will process the transaction and issue a receipt upon receiving the completed application, all required documents, and all required fees.

New §217.406(b) describes the form of the title. As described in that subsection, the title will comply with the requirements of Transportation Code §731.053 and be issued with the make of "ASVE" unless original parts are used that reflect an established year and make of a manufactured vehicle and will contain the remarks "RECONSTRUCTED," or "REPLICA," as applicable, except for assembled trailers which will be titled with a make of "HMDE."

As discussed in response to comments, subsequent transfers of an assembled vehicle will be made as provided by Chapters 501 and 502, as applicable. Transportation Code Chapter 731 does not require additional disclosure requirements concerning the transfer of a titled assembled vehicle. Also, as discussed in response to comments the department will add a remark of "NOT FOR DEALER RESALE" to the titles of assembled vehicles initially titled under Transportation Code Chapter 731 and this subchapter that cannot be transferred to or by a dealer under Transportation Code §503.013. This will allow purchasers to distinguish between them and other ASVE vehicles without a REPLICA remark that were titled prior to the effective date of the implementing rules.

New §217.406(c) provides that the department will issue and mail or deliver the title to the owner or lienholder disclosed in the application. New §217.406(d) provides that the receipt issued at the time of application for title may be used only as evidence of title and may not be used to transfer any interest or ownership in a motor vehicle or to establish a new lien.

New §217.407 provides for subsequent transfer of title for a titled assembled vehicle. New §217.407(a) provides that after an assembled vehicle is titled under Transportation Code Chapter 731 and Subchapter L, the vehicle is then subject to Transportation Code Chapters 501 and 502, and 43 Texas Administrative Code Chapter 217, Subchapter L. The vehicle may be transferred similarly to any other vehicle, except as provided in §217.407(c).

New §217.407(b) provides that an assembled vehicle titled or registered in another jurisdiction may be titled and registered in this jurisdiction subject to Transportation Code Chapters 501 and 502, and 43 Texas Administrative Code Chapter 217, Subchapter L, except as provided in §217.407(c). As such, the vehicle does not have to go through the initial title process in Transportation Code Chapter 731 or Subchapter L.

New §217.407(c) states two statutory limitations that apply to the transfer and construction of assembled vehicles. New §217.407(c) states the limitation in new Transportation Code §503.013 that ownership of an assembled vehicle may not be transferred to or by a dealer unless the assembled vehicle is a "replica" as that term is defined in Transportation Code §731.001. As defined, a "replica" includes a street rod or custom vehicle. New §217.407(c) states the limitation in new Occupations Code §2302.009 that a salvage vehicle dealer may not rebuild an assembled vehicle.

New §217.407(d) provides that if an assembled vehicle is disassembled and then reassembled, the resulting vehicle is subject to the initial titling requirements in Transportation Code Chapter 731 and 43 Texas Administrative Code Chapter 217, Subchapter L.

Implementation of this rule requires the department to reconfigure its internal systems to conform to the new requirements. The department adopts §§217.3, and 217.141 - 217.143, and new §§217.401 - 217.407 to be effective June 22, 2020.

SUMMARY OF COMMENTS.

The department received written and spoken comments requesting clarifications or changes in the proposed text from: the Assembled Vehicle Coalition of Texas, Lamar County Tax Assessor-Collector, Lubbock County Tax Assessor-Collector, the Specialty Equipment Market Association, the Tarrant Regional Auto Crimes Task Force, the Tax Assessor-Collectors Association of Texas, the Texas Automobile Dealers Association, the Texas Recreational Vehicle Association, and an individual.

§217.3(2)(D)

Comment.

A commenter raises questions concerning the registration of a farm trailer or farm semitrailer and asks for confirmation that a trailer or semitrailer of more than 34,000 pounds would not be considered a farm trailer or farm semitrailer.

Agency Response.

The department disagrees with the comment. There are no weight restrictions for a farm trailer or farm semitrailer. As noticed in the preamble to the proposal, the amendment to §217.3(2)(D) is to address permissive titling requirements under Transportation Code §501.036. The section permissively allows farm trailers or farm semitrailers with a gross weight of 34,000 pounds or less to be titled. Transportation Code §501.004 and §501.036 do not limit the ultimate weight of a farm trailer or farm semitrailer.

Also, Transportation Code §501.036 does not require a farm trailer or farm semitrailer to be eligible for registration under Transportation Code §502.146. Thus, a reference to Transportation Code §502.146, is not necessary for permissive titling purposes under Transportation Code §501.036. To avoid confusion and better conform the rule to statute, the proposed rule text has been changed to remove the first sentence of §217.3(2)(D) referring to registration under Transportation Code §502.146. The change does not affect persons not on notice of this proposal or add new costs.

§217.3(6)(B)

Comment.

A commenter questioned why a certain kit car was rejected for titling and registration.

Agency Response.

The department appreciates the comment. Rules have general applicability. The department cannot make specific determinations of fact in a rule or the rulemaking process. Individual questions should be addressed to the department or one of its regional service centers. Locations and contact information can be identified online at https://www.txdmv.gov/contact-us.

§217.142

Comment.

Two commenters request the department to provide additional information concerning "all integral items" referenced with "motor fuel supply systems" and "exhaust system."

Agency Response.

The department disagrees that additional information is necessary. The definition of "equipment" includes four systems: brakes, steering, fuel supply, and exhaust; and the "integral items" to those systems. All four systems are items currently inspected for an assembled vehicle on the ASE Safety Inspection for Assembled Vehicles (Form VTR-64).

Assembled vehicles may take different forms and have different solutions for the systems listed, such that an exhaustive list for each possible system would be impractical, if not impossible. Rather, the inspection certification will be of parts that cause the system to function to determine that they are designed for the purpose for which they are being used, meet applicable safety standards, and are assembled for stable and safe operation on the roadway. The department has made no changes to the proposed text based on this comment.

§217.142

Comment.

A commenter raised the question of whether a master technician inspection will be required for a motor driven or towed recreational vehicle (RV). The commenter states that the RV industry has established its own master certified technician training program "under the guidance of two nationally recognized trade associations which are the Recreational Vehicle Dealers Association (RVDA) and the Recreational Vehicle Industry Association (RVIA). RVDA represents dealer's interests, where RVIA represents manufacturer's interests in the RV industry."

Agency Response.

The department agrees with the comment and the issues raised. The purpose of the proposal is to implement Transportation Code Chapter 731 and HB 1755, which concern assembled vehicles. Assembled vehicles are defined in Transportation Code §731.001(a)(4), as seven types of vehicles, including an assembled motor vehicle and an assembled trailer.

The master technician inspection requirement applies only to assembled vehicles newly constructed and required to be titled under Transportation Code Chapter 731. Previously titled vehicles or newly manufactured vehicles that are not assembled vehicles would be titled under the same requirements that existed prior to the enactment of Transportation Code Chapter 731. Transportation Code Chapter 731 does not make an exception because the assembled motor vehicle is built as a motor home. The inspection would apply to the equipment listed in §217.142(b)(3) and based on the standards in §217.143.

Also, the assembled vehicle must be of a type that could be inspected by a Certified Master Automobile and Light Truck Technician, or equivalent successor certification, issued by the National Institute for Automotive Service Excellence. The department is limited under Transportation Code Chapter 731 to accepting a qualifying inspection only from a person who holds a master technician certification issued by the National Institute for Automotive Service Excellence.

Assembled vehicles not subject to the inspection requirement are a motorcycle, trailer, or glider kit. An assembled trailer includes the term travel trailer as defined under Transportation Code §501.002. However, the department is not requiring an inspection by a master technician for assembled trailers because the National Institute for Automotive Service Excellence does not issue a master technician certification for trailers. The department has made no changes to the proposed text based on this comment.

§217.143

Comment.

Two commenters assert that the Certified Master Automobile and Light Truck Technician inspection should be limited to the specific equipment listed in Transportation Code §731.102.

Agency Response.

The department disagrees with the comment. Transportation Code §731.101(c), provides that the "[T]he board by rule shall establish procedures and requirements for the inspection required by this section. Rules adopted under this subsection: (1) must establish inspection criteria; [~~and~~] (2) may specify additional items of equipment that must be inspected by a master technician and may specify different items of equipment that must be inspected based on the type of assembled vehicle."

In addition, Transportation Code §731.102, provides that an inspection conducted under §731.101 must "include" those items listed in §731.102(1) and (2). Government Code §311.005(13) defines "includes" and "including" as "terms of enlargement and not of limitation or exclusive enumeration, and use of the terms does not create a presumption that components not expressed are excluded." The department has made no changes to the proposed text based on this comment.

§217.143

Comment.

A commenter requested that the owner of an assembled vehicle should not be required to obtain a subsequent inspection of the vehicle during the period of ownership and that a subsequent purchaser of an inspected and titled assembled vehicle should be allowed a grace period following purchase to obtain an inspection.

Agency Response.

The department agrees with the comment. Section 217.143 requires the assembled vehicle ASE certified master mechanic inspection only at the time the vehicle is initially titled. Sale of a titled assembled vehicle does not require another inspection for purposes of being an assembled vehicle. With limited exceptions, a titled assembled vehicle can be transferred, titled, and registered, like any other vehicle under Transportation Code Chapters 501 and 502 as addressed in Transportation Code §731.051(a); and §217.143 and §217.407. A subsequent inspection would be required if the vehicle is disassembled and reassembled as described in proposed §217.407.

Like owners of other vehicles, if the owner desires to have street rod or custom vehicle license plates, then the owner must comply with the vehicle inspection requirements under Transportation Code §504.501. That section applies based on changes in registration. However, the department will accept a single inspection for both if street rod or custom vehicle license plates are requested during the initial title application process, because the inspections are the same, except for meeting the street rod and custom vehicle requirements. The department has made no changes to the proposed text based on this comment.

§217.143

Comment.

A commenter requests that the department-prescribed verification form that is completed by the master technician require written verification that the vehicle was not assembled, built, constructed, rebuilt, or reconstructed in any manner with a body or frame from a "nonrepairable" vehicle as well as written verification from the master technician that the inspected vehicle does not have a motor or engine that has water damage.

Agency Response.

The department agrees with the comment that Transportation Code §731.051(b)(2) and (3) prohibits titling an assembled vehicle that has been built using a body or frame from a "nonrepairable" vehicle or that contains any electrical or mechanical components from a "flood-damaged" vehicle. The department's current rules also prohibit an assembled vehicle from being built with a body or frame from a "nonrepairable" or a "flood-damaged" motor or engine.

However, the department under this proposal and its current rules does not require the master technician to certify the that no "nonrepairable" or "flood-damaged" parts were used in the building of the assembled vehicle. While the master technician may identify parts that were previously damaged, the master technician will not necessarily have access to information to determine the parts were from a nonrepairable vehicle, as defined by Transportation Code §501.091, or from a "flood-damaged" vehicle.

In reviewing applications, the department will continue its current procedure to check the National Motor Vehicle Title Information System (NMVTIS) to identify assembled vehicles that would not be eligible for title under Transportation Code §731.051(b)(2) and (3).

The commenter makes no statement as to how the items would be inspected in the type of inspection contemplated by Transportation Code §731.101 or that a master technician could reasonably make such a determination. Purchasers and others can conduct their own inspection before deciding to acquire such a vehicle. Finally, the proposed change would add new requirements and costs to the inspection process. The department has made no changes to the proposed text based on the comment.

§217.143

Comment.

A commenter requests that the department-prescribed verification form that is completed by the master technician require written verification that the vehicle does not use any parts that do not meet Federal Motor Vehicle Safety Standards (FMVSS), if such standards are applicable for those parts.

Agency Response.

The department agrees with the comment. As proposed, the inspection requirement in §217.143(d)(3) requires the master technician to certify that parts used in the vehicle meet FMVSS, if a standard is applicable. The department has made no changes to the proposed text based on the comment.

§217.402

Comment.

A commenter disagrees with the department's reference in the preamble that the basic component parts of an assembled motorcycle are limited to the motorcycle's motor and frame, because an identifying number may also be stamped on the transmission.

Agency Response.

The department agrees with the comment. A motorcycle may have an identifying number stamped on the transmission. However, the purpose of the definition of "basic component part" is to establish the parts of the vehicle that the owner must demonstrate ownership of for titling purposes under §217.404.

Also, the definition is consistent with the department's existing assembled vehicle rules §217.3(5)(A) and §217.3(5)(B)(i), which are being incorporated into the Subchapter G rules. A law enforcement VIN inspection may still check the transmission, but the department does not consider it necessary to expand the existing number or type of basic component parts. The department has not made any changes to the proposed text in response to this comment.

§217.404(a)

Comment.

A commenter proposes that an applicant should submit the preliminary title application directly to the department instead of the county tax assessor-collector office.

Agency Response.

The department agrees with the comment. The department has revised proposed §217.404(a) to remove reference to the county tax assessor-collector, because the county tax assessor-collector offices would not be reimbursed for the costs associated with preparing and delivering the preliminary title application to the department for review.

Counties may accept and transmit preliminary title applications directly to the department if they choose to do so. The proposal identified submission of the preliminary application to the department or a county tax assessor-collector for forwarding to the department, so the change does not add a new requirement not addressed in the proposal or new costs to the proposal.

The change to the text in response to this comment does not affect the requirement for the final application to be submitted to the county tax assessor-collector under §217.404(d).

Comment.

A commenter proposes that the submission under §217.404(a) be amended to require photocopies.

Agency Response.

The department disagrees with the comment. The department intends to be flexible, but in some cases the department may need to review the original document or under §217.404(d)(2) the original document may be required by statute. The department has not made any changes to the proposed text in response to this comment.

217.404(a)(9)

Comment.

A commenter suggests requiring the inspector to record the motor number or the transmission number on the inspection if the numbers differ from the manufacturer's original vehicle identification number (VIN). The commenter also suggests assigning a VIN to a motor if no number exists on the motor.

Agency Response.

The department agrees with the comment. VINs, serial numbers, and motor numbers should be identified and recorded in the vehicle identification number inspection process conducted by law enforcement on Form VTR 68-A. The rule does not prevent law enforcement from identifying a transmission and determining whether it is stolen, or from a stolen vehicle.

Under existing procedures, the department will as necessary assign or reassign a motor number to a vehicle that is identified by a motor number (for example a pre-1956 General Motors vehicle). However, for most vehicles the department uses the VIN on the body of the vehicle or requires an assigned or reassigned VIN to be affixed on the body of the vehicle. For vehicles identified by VIN, the department does not track motor numbers. The department does not identify vehicles by transmission numbers, record transmission numbers, or require evidence of ownership for the transmission.

In addition, requiring the motor to be assigned a number would require persons replacing a motor or transmission on an assembled vehicle to go through an additional registration process when the vehicle is identified by VIN. The process would add costs and would not be consistent with the requirement for other vehicles titled under Transportation Code Chapter 501. The requirement is also not specifically authorized in Transportation Code Chapter 731. The department has not made any changes to the proposed text in response to this comment.

217.404(b)

Comment.

A commenter states that it is necessary for the department to confirm the title applicant's status before issuing the title on the assembled vehicle and requests that the department adopt procedures regarding the verification and enforcement that an assembled vehicle title "applicant" meets the requirements for an assembled vehicle title issuance prior to issuing the title.

Agency Response.

The department agrees with the comment. The proposed procedures and requirement to submit documents for review prior to title issuance implement Transportation Code Chapter 731, and HB 1755. The department will review each title application for compliance with the statute and rules. If the department determines that a potential violation has occurred, the department may seek an enforcement action as authorized by statute. The department has made no changes to the proposed text based on the comment.

§217.404(c) and (d)(1)

Comment.

A commenter proposes that the letter issued under §217.404(c) list the supporting documents and information required to be submitted as approved by the department.

Agency Response.

The department agrees with the comment. A second sentence has been added to §217.404(c) to read "The letter shall include a list of the supporting documents and information identified in subsection (d)(2) of this section." The department has also added to 217.404(d)(1) the statement "described in subsection (c) of this section" to clarify the letter being referred to. The changes will provide assurance to the county and the applicant that the application submitted to the county is complete. The change does not add a new requirement or cost for applicants or county tax assessor-collectors.

§217.406

Comment.

A commenter is concerned that the "REPLICA" title notation may not be an adequate disclosure to a purchaser that the vehicle is an assembled vehicle, especially if an individual does not have access to the title, to the state's title system, or does not know to look for the title remark. The commenter requests the department to require that a disclosure statement accompany the vehicle in which the master technician's inspection certification is incorporated and provided to the buyer prior to purchase. The commenter asserts that requiring disclosure of the master technician's inspection informs the subsequent purchaser of the master technician's findings and the details regarding that inspection, allowing the purchaser to make an informed decision regarding the assembled vehicle.

Agency Response.

The department agrees with the comment as to the benefits of disclosure, but disagrees that an additional requirement is necessary. Transportation Code §731.051 provides that an owner of an assembled vehicle shall apply for a title for the vehicle and register the vehicle as provided by Transportation Code Chapters 501 and 502, as applicable. Transportation Code Chapter 731 does not require additional disclosure requirements concerning the transfer of a titled assembled vehicle.

Assembled vehicles will have the title issued with a make of ASVE, or HMDE if it is a homemade trailer. Further, the title should be present and available to the purchaser when the transfer is completed by the seller in accordance with Transportation Code §501.028.

However, the department does agree that identifying whether the assembled vehicle is subject to the sales restriction under Transportation Code §503.013 could be difficult to determine. This is because Transportation Code Chapter 731 and HB 1755 apply to assembled vehicles to be titled under Transportation Code Chapter 731 and these rules. Transportation Code Chapter 731 and HB 1755 does not state that either applies to assembled vehicles that are currently titled or that either limits the ability of an owner to transfer title to that vehicle.

Transportation Code §731.051(a) provides that "... an owner of an assembled vehicle shall apply for a title for the vehicle and register the vehicle as provided by Chapters 501 and 502, as applicable, and in accordance with rules adopted under this chapter..." Transportation Code §731.002 authorizes "the board may adopt rules as necessary to implement and administer this chapter." House Bill 1755 Section 12 requires "[A]s soon as practicable after the effective date of this Act, the board of the Texas Department of Motor Vehicles shall: (1) adopt the rules required by Chapter 731, Transportation Code as added by this Act; and (2) adopt or modify any rules necessary to implement the changes in law made by this Act."

Transportation Code §503.013 applies to an assembled vehicle as defined in Transportation Code §731.001. Transportation Code §731.051(a) and the requirements of Transportation Code Chapter 731 and HB 1755 provide that an "assembled vehicle" cannot be titled under Chapter 731 until the department adopts implementing rules. Transportation Code Chapter 731 and HB 1755 make no reference to assembled vehicles that were titled prior to the adoption of the department's implementing and administrative rules.

Titled assembled vehicles that are subsequently transferred would be transferred in the same manner as any used vehicle under Transportation Code Chapter 501 and Chapter 502, either because the vehicle was not initially titled under Transportation Code Chapter 731 and these rules, or because of §217.407 for vehicles initially titled under Transportation Code Chapter 731 and these rules.

As such, a title indicating ASVE as make may not indicate if and how Transportation Code §503.013 applies. To aid in identification of assembled vehicles initially titled after the effective date of these rules and that cannot be transferred to or by a dealer under Transportation Code §503.013, the department will add a remark "NOT FOR DEALER RESALE."

The change has been made by the department adding to the text of §217.406(b) "A vehicle that is titled under Transportation Code Chapter 731 and this subchapter that cannot be transferred to or by a dealer under Transportation Code §503.013 shall have a "NOT FOR DEALER RESALE" remark included on the title." All affected persons were on notice of the limitation, because Transportation Code §503.013 is in statute, and the proposal discusses its limitations on the subsequent transfer of assembled vehicles titled under Transportation Code Chapter 731 and this subchapter. The change does not add new costs or affect the rights of persons owning vehicles titled before or after the effective date of the proposed rules, including dealers who may have such vehicles for sale.

SUBCHAPTER A. MOTOR VEHICLE TITLES

43 TAC §217.3

STATUTORY AUTHORITY. The department adopts amendments to §217.3 and §§217.141 - 217.143 and new §§217.401 - 217.407 under Occupations Code §2301.155 and §2302.051; and Transportation Code §§501.0041, 502.0021, 504.011, 731.002, 731.051, 731.052, 731.101, and 1002.001.

- Occupations Code §2301.155 authorizes the board of the Texas Department of Motor Vehicles to adopt rules as necessary or convenient to administer this chapter and to govern practice and procedure before the board.

- Occupations Code §2302.051 authorizes the board to adopt rules as necessary to administer this chapter.

- 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 to adopt rules to implement and administer Transportation Code Chapter 504.

- Transportation Code §731.002 authorizes the board to adopt rules as necessary to implement and administer Transportation Code Chapter 731.

- Transportation Code §731.051 authorizes the board to adopt rules under Transportation Code Chapter 731 for owners to apply for a title and register as provided by Chapters 501 and 502, as applicable, regardless of whether the assembled vehicle was built or assembled using a vehicle that was previously titled in this state or another jurisdiction.

- Transportation Code §731.052 requires the board to adopt rules establishing procedures and requirements for: (1) issuance of a title for an assembled vehicle; and (2) registration of an assembled vehicle. Rules adopted under this section may not exclude a type of assembled vehicle, other than an assembled vehicle described by Section 731.051(b), from eligibility for title and registration; must establish the form of a title issued for an assembled vehicle; and must exempt an assembled vehicle or a type of assembled vehicle from any provision of Chapter 501 or 502 that an assembled vehicle or type of assembled vehicle, by its nature, cannot comply with or otherwise meet the requirements of.

- Transportation Code §731.101 requires the board to adopt rules establishing procedures and requirements for the inspection required by Transportation Code §731.101. Rules adopted under Transportation Code §731.101: (1) must establish inspection criteria; (2) may specify additional items of equipment that must be inspected by a master technician and may specify different items of equipment that must be inspected based on the type of assembled vehicle; and (3) must require an owner of an assembled vehicle that is being inspected under this section to pay all fees required for the inspection, including any reinspection, in addition to all applicable fees required under Chapter 548 for an inspection or reinspection conducted under that chapter.

- 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. Occupations Code §2301.0045 and §2302.009; and Transportation Code §§501.003, 501.032, 501.033, 501.036, 501.037, 501.052, 501.053, 503.013, 504.501, 731.051 - 731.054, 731.101, and 731.102.

§217.3.Motor Vehicle Titles.

Unless otherwise exempted by law or this chapter, the owner of any motor vehicle that is required to be titled, including any motor vehicle required to be registered in accordance with Transportation Code Chapter 502, shall apply for a Texas title in accordance with Transportation Code Chapter 501 or 731.

(1) Motorcycles, autocycles, and mopeds.

(A) The title requirements for a motorcycle, autocycle, and moped are the same requirements prescribed for any motor vehicle.

(B) A vehicle that meets the criteria for a moped and has been certified as a moped by the Department of Public Safety will be registered and titled as a moped. If the vehicle does not appear on the list of certified mopeds published by that agency, the vehicle will be treated as a motorcycle for title and registration purposes.

(2) Farm vehicles.

(A) The term "motor vehicle" does not apply to implements of husbandry, which may not be titled.

(B) Farm tractors owned by agencies exempt from registration fees in accordance with Transportation Code §502.453, are required to be titled and registered with "Exempt" license plates issued in accordance with Transportation Code §502.451.

(C) Farm tractors used as road tractors to mow rights of way or used to move commodities over the highway for hire are required to be registered and titled.

(D) Owners of farm trailers and farm semitrailers with a gross weight of 34,000 pounds or less may apply for a Texas title. Owners of farm trailers and farm semitrailers with a gross weight in excess of 34,000 pounds shall apply for a Texas title. If a farm trailer or farm semitrailer with a gross weight of 34,000 pounds or less has been titled previously, any subsequent owner shall apply for a Texas title for the farm trailer or farm semitrailer.

(3) Neighborhood electric vehicles. The title requirements of a neighborhood electric vehicle (NEV) are the same requirements prescribed for any motor vehicle.

(4) Trailers, semitrailers, and house trailers. Owners of trailers and semitrailers shall apply for a Texas title for any trailer or semitrailer with a gross weight in excess of 4,000 pounds. Owners of trailers and semitrailers with a gross weight of 4,000 pounds or less may apply for a Texas title. If a trailer or semitrailer with a gross weight of 4,000 pounds or less has been titled previously, any subsequent owner shall apply for a Texas title for the trailer or semitrailer. House trailer-type vehicles must meet the criteria outlined in subparagraph (C) of this paragraph to be titled:

(A) The rated carrying capacity will not be less than one-third of its empty weight.

(B) Mobile office trailers, mobile oil field laboratories, and mobile oil field bunkhouses are not designed as dwellings, but are classified as commercial semitrailers and must be registered and titled as commercial semitrailers if operated on the public streets and highways.

(i) A house trailer-type vehicle that is less than eight feet six inches in width or less than 45 feet in length is classified as a travel trailer and shall be registered and titled.

(ii) A camper trailer shall be titled as a house trailer and shall be registered with travel trailer license plates.

(iii) A recreational park model type trailer that is primarily designed as temporary living quarters for recreational, camping or seasonal use, is built on a single chassis, and is 400 square feet or less when measured at the largest horizontal projection when in the set up mode shall be titled as a house trailer and may be issued travel trailer license plates.

(5) Assembled vehicles. The title requirements for assembled vehicles are prescribed in Subchapter L of this title (relating to Assembled Vehicles).

(6) Not Eligible for Title. The following are not eligible for a Texas title regardless of the vehicle's previous title or registration in this or any other jurisdiction:

(A) vehicles that are missing or are stripped of their motor, frame, or body, to the extent that the vehicle loses its original identity or makes the vehicle unsafe for on-road operation as determined by the department;

(B) vehicles designed by the manufacturer for on-track racing only;

(C) vehicles designed or determined by the department to be for off-highway use only, unless specifically defined as a "motor vehicle" in Transportation Code Chapter 501; or

(D) vehicles assembled, built, constructed, rebuilt, or reconstructed in any manner with:

(i) a body or frame from a vehicle which is a "nonrepairable motor vehicle" as that term is defined in Transportation Code §501.091(9); or

(ii) a motor or engine from a vehicle which is flood damaged, water damaged, or any other term which may reasonably establish the vehicle from which the motor or engine was obtained is a loss due to a water related event.

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 June 1, 2020.

TRD-202002222

Tracey Beaver

General Counsel

Texas Department of Motor Vehicles

Effective date: June 22, 2020

Proposal publication date: December 20, 2019

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

SUBCHAPTER G. INSPECTIONS

43 TAC §§217.141 - 217.143

- Occupations Code §2302.051 authorizes the board to adopt rules as necessary to administer this chapter.

- 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 to adopt rules to implement and administer Transportation Code Chapter 504.

- Transportation Code §731.002 authorizes the board to adopt rules as necessary to implement and administer Transportation Code Chapter 731.

- 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.

§217.142.Definitions.

(a) The definitions in Transportation Code §731.001 apply to this subchapter.

(b) The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.

(1) Altered from the manufacturer's original design - as that term is used in §504.501(f), Transportation Code, is defined as the removal, addition, modification, or substitution, of at least one major component part, as defined in Transportation Code §501.091, except that an engine, frame, and body or cab, must be replaced if removed.

(2) Applicant - a person applying for title to an assembled vehicle who:

(A) is a hobbyist;

(B) is the owner of an assembled vehicle that has not been previously titled as an assembled vehicle; or

(C) purchased an assembled vehicle constructed and designated by the manufacturer as a replica, custom vehicle, street rod, or glider kit.

(3) Equipment - items and systems, including the connection points of the items and systems, to include the frame; chassis; structural components; wheel assembly; tires; brake system, including each brake, power brake unit, and all integral items of the system; steering system, including power steering, and all integral items of the system; front seat belts if constructed with seat belt anchorages; body; drivetrain; suspension; motor; fuel supply system and all integral items of the system; exhaust system and all integral items of the system; mirrors; windshield; windshield wipers; turn signal lamps; beam indicator; head lamps, minimum of two; tail lamps; stop lamps; and rear red reflectors. This term includes the basic component parts of motor, body, and frame, as defined in §217.402 of this chapter; and some major component parts as defined in Transportation Code §501.091. The term basic component part is defined by rule to identify the parts that will be used in determining evidence of ownership. The term major component part is defined by statute for use in determining whether the vehicle is a custom vehicle or street rod.

(4) Manufacturer - is a person that builds an assembled vehicle and is not a hobbyist, has the meaning as defined in Occupations Code §2301.002, and is subject to the requirements of that chapter applicable to manufacturers, including sale through a franchise dealer network.

(5) Master technician - a person who holds a valid certification as a Certified Master Automobile and Light Truck Technician, or equivalent successor certification, issued by the National Institute for Automotive Service Excellence.

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 June 1, 2020.

TRD-202002223

Tracey Beaver

General Counsel

Texas Department of Motor Vehicles

Effective date: June 22, 2020

Proposal publication date: December 20, 2019

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

SUBCHAPTER L. ASSEMBLED VEHICLES

43 TAC §§217.401 - 217.407

- Occupations Code §2302.051 authorizes the board to adopt rules as necessary to administer this chapter.

- 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 to adopt rules to implement and administer Transportation Code Chapter 504.

- Transportation Code §731.002 authorizes the board to adopt rules as necessary to implement and administer Transportation Code Chapter 731.

- 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.

§217.404.Initial Application for Title.

(a) Prior to applying for title, an applicant must submit to the department a complete application for title. The application may be submitted in person, by mail, or electronically, to the department. The application must include:

(1) photographs of the front, rear, and side of the assembled vehicle, and if a replica, a photograph of what the vehicle is a replica of;

(2) evidence of ownership of the basic component parts of the assembled vehicle as described in §217.405 of this subchapter (relating to Evidence of Ownership), as applicable to the type of assembled vehicle;

(3) if applicable, proof, on a form prescribed by the department, of a safety inspection required under §217.143 of this chapter (relating to Assembled Vehicle Inspection Requirements), and Transportation Code §731.101;

(4) if applicable, a copy of the Automobile and Light Truck certification, or a successor certification, for the master technician who completed the inspection described in paragraph (3) of this subsection;

(5) a copy of the inspection that may be required under Transportation Code Chapter 548 if the assembled vehicle is to be registered for operation on the roadway;

(6) a Rebuilt Vehicle Statement;

(7) a weight certificate;

(8) identification as required in §217.5(d) of this chapter (relating to Evidence of Motor Vehicle Ownership); and

(9) any of the following means to establish the vehicle identification number:

(A) an Application for Assigned or Reassigned Number, and Notice of Assigned Number or Installation of Reassigned Vehicle Identification Number, on forms prescribed by the department;

(B) an Application for Assigned or Reassigned Number, establishing the vehicle identification number assigned by the manufacturer of the component part by which the assembled vehicle will be identified;

(C) acceptable proof, as established by the department, of a vehicle identification number assigned by the maker of the kit used to construct the assembled vehicle; or

(D) acceptable proof, as established by the department, of a vehicle identification number assigned by the manufacturer of the replica, custom vehicle, street rod, or glider kit.

(b) Following receipt of all information required under subsection (a) of this section, the department will review the application for completeness and to determine that the vehicle meets assembled vehicle qualifications.

(c) If the department determines that the application is complete and the vehicle meets assembled vehicle qualifications, the department will issue a letter to the applicant on department letterhead, stating that the application is complete and that the vehicle qualifies as an assembled vehicle. The letter shall include a list of the supporting documents and information identified in subsection (d)(2) of this section.

(d) Following receipt of the department's letter described in subsection (c) of this section, the applicant may then submit the letter and the completed application to the county tax assessor-collector for processing. The application must include:

(1) the department-issued letter described in subsection (c) of this section;

(2) copies of all items required to be submitted to the department in subsection (a)(1) - (9) of this section; and

(3) the requirements as identified in §217.23 of this chapter (relating to Initial Application for Vehicle Registration) if obtaining registration.

§217.405.Evidence of Ownership.

(a) Evidence of ownership in the name of or properly assigned to the applicant must accompany the title application submitted to the department.

(b) The evidence of ownership for a replica, custom vehicle, street rod, or glider kit built by a manufacturer must be a manufacturer's certificate of origin, indicating:

(1) the vehicle identification number assigned to the vehicle by the manufacturer;

(2) the make as ASVE, unless a glider kit;

(3) a notation the vehicle is a replica and what the vehicle is a replica of if a replica, custom vehicle, or street rod; and

(4) the municipality and state in which the vehicle was completed.

(c) The evidence of ownership for an assembled vehicle not previously titled as an assembled vehicle by the owner, or built by a hobbyist, must contain the identifying number(s) of the corresponding basic component part(s). Evidence of ownership is required for basic component parts used from a vehicle titled in the name of the applicant, depending on the year and manufacturer of the vehicle. The following evidence of ownership is required if the assembled vehicle is constructed with basic component parts from a vehicle not titled in the name of the applicant:

(1) Motor. A bill of sale is required.

(2) Frame. A bill of sale, certificate of origin, or title depending on the year and manufacturer of the frame.

(3) Body. A bill of sale, certificate of origin, or title depending on the year and manufacturer of the body.

(4) Kit. A bill of sale or certificate of origin for the kit.

(5) New fabrication. A bill of sale, invoice, or receipts covering the material used to construct the basic component part.

(d) An owner who is unable to obtain the evidence of ownership required under subsection (a) of this section may:

(1) file a bond with the department in accordance with Transportation Code §501.053, and §217.9 of this chapter (relating to Bonded Titles); and

(2) submit an application for title in the same manner as an applicant in accordance with Transportation Code Chapter 731, and this subchapter.

(e) The department will assign a number or reassign the manufacturer's vehicle identification number to an assembled vehicle based on the result of the vehicle inspection under §217.404(a)(9)(A) or (B) of this subchapter (relating to Initial Application for Title). The owner under subsection (d) of this section establishing the vehicle identification number of an assembled vehicle under §217.404(a)(9)(A) or (B) of this subchapter, may use the vehicle identification number to satisfy the vehicle identification number requirement under §217.9 of this chapter and obtain a bond under §217.9 of this chapter to be filed with the department. The bond will be evidence of ownership under subsection (a) of this section.

§217.406.Title Issuance.

(a) Issuance. The county tax assessor-collector shall process the application for title and issue a receipt upon receiving:

(1) a completed application for title;

(2) required documents identified in §217.404(d) of this subchapter (relating to Initial Application for Title);

(3) the statutory fee for a title application, unless exempt under:

(A) Transportation Code §501.138; or

(B) Government Code §437.217, and copies of official military orders are presented as evidence of the person's active duty status and deployment orders to a hostile fire zone; and

(4) any other applicable fees.

(b) Form of Title. In addition to the requirements under Transportation Code §731.053, an assembled vehicle, other than an assembled trailer, will be titled using the year it was assembled as the model year and "ASVE" for assembled as the make of the vehicle unless it is established to the department's satisfaction to be constructed from original parts that reflect an established year and make of a manufactured vehicle. An assembled vehicle constructed from original parts that reflect an established year and make of a manufactured vehicle will be titled by that year and make, but must reflect a "RECONSTRUCTED" remark if the component parts, excluding the motor, used to construct the vehicle are not original to that vehicle. An assembled vehicle not utilizing an original body may obtain a title with a "REPLICA" remark featuring the year and make of the replica if the vehicle resembles a prior model year vehicle. This subsection applies regardless of how the vehicle's model year or make was previously identified in this or any other jurisdiction. An assembled trailer will be titled using the year it was assembled as the model year and "HMDE" for homemade as the make. A vehicle that is titled under Transportation Code Chapter 731 and this subchapter that cannot be transferred to or by a dealer under Transportation Code §503.013 shall have a "NOT FOR DEALER RESALE" remark included on the title.

(c) Distribution. The department will issue and mail or deliver a title to the applicant, or if a lien is disclosed in the application, to the first lienholder unless the title is an electronic record of title.

(d) Receipt. The receipt issued at the time of application for title may be used only as evidence of title and may not be used to transfer any interest or ownership in a motor vehicle or to establish a new lien.

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 June 1, 2020.

TRD-202002224

Tracey Beaver

General Counsel

Texas Department of Motor Vehicles

Effective date: June 22, 2020

Proposal publication date: December 20, 2019

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