TITLE 43. TRANSPORTATION

§445.1. Definitions.

(a) "Application" or "applications." Except where otherwise expressly stated, the term "Application" or "applications" includes all documentation submitted with a Motor Vehicle Title Service Application Form or Motor Vehicle Title Service Runner Application Form.

(b) "Motor vehicle" has the meaning assigned by Texas Transportation Code §501.002.

(c) "MCTAC" means Montgomery County Tax Assessor-Collector.

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

(e) "Person" or "persons" means company or individual.

(f) "Sponsored" means that a MVTS has requested a license for a title service runner employed by the MVTS so that the runner may present title documents at the MCTAC's Office on behalf of the MVTS.

(g) "Title documents" means motor vehicle title applications, motor vehicle registration renewal applications, motor vehicle mechanic's lien title applications, motor vehicle storage lien title applications, motor vehicle temporary registration permits, motor vehicle title application transfers occasioned by the death of the title holder, motor vehicle inquiries, license plate and/or sticker replacement or any other motor vehicle related transaction.

(h) "Title service runner," "Runner" or "MVTSR" means any person employed and sponsored by a licensed motor vehicle title service to submit or present title documents to the Montgomery County Tax Assessor-Collector on behalf of that licensed motor vehicle title service.

§445.2. License Required.

(a) A company or individual person may not act as a motor vehicle title service or act as runner for that business in Montgomery County, Texas unless that business or person holds a license issued by Montgomery County, Texas. Licenses are required pursuant to Texas Transportation Code § 520.053.

(b) There are two categories of licenses that are required to do business:

(1) Motor Vehicle Title Service License, obtained by the owner(s) and operator(s) of a motor vehicle title service company; and

(2) Title Service Runner License, obtained before a person may act as a registered agent for a motor vehicle title service company to present motor vehicle title documents to the Montgomery County Tax Assessor-Collector's Office for processing.

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

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

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

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

§445.3. Eligible Applicants.

(a) All individual applicants must meet the following requirements in order to be eligible to hold a MVTS license or a MVTSR license:

(1) be at least 18 years of age on the date the Application is submitted;

(2) authorized to handle financial transactions whether representing himself/herself or another;

(3) a United States citizen or a legal resident; and

(4) provide proof that the applicant has filed for renditions for real property and/or business personal property with the Montgomery County Central Appraisal District.

(b) If the Application is for a MVTS license for a business entity, the applicant must provide:

(1) proof that the applicant is authorized to handle financial transactions for that business entity; and

(2) the account number or proof that the business has filed for renditions for real property and/or business Personal property with the Montgomery County Central Appraisal District.

(c) A person or business is not eligible to hold a MVTS license or MVTSR license if:

(1) the person is delinquent on real and/or business personal property taxes due and owing to Montgomery County, Texas; until they cure the delinquency;

(2) the person has been convicted of a felony or a crime of moral turpitude;

(3) the person owns or is employed by an automobile insurance company, vehicle emissions inspection service or company, or holds a motor vehicle General Distinguishing Number issued by the Texas Department of Motor Vehicles;

(4) the person applying for a Runner's License holds a MVTS Owner's License in any County in the State of Texas;

(5) the person previously held a MVTS license or MVTSR license in another county that has been suspended or revoked; or

(6) the business entity is not eligible to hold a MVTS license or sponsor a MVTSR license if the business entity is delinquent on property taxes due and owing to Montgomery County. A business entity's failure to provide proof of the items required in subsection (b) of this section will render the applicant ineligible to hold a license in Montgomery County.

(d) If a person or business who holds a MVTS license or MVTSR license becomes ineligible to hold that license due to any of the circumstances listed in subsection (c) of this section, they must immediately surrender their license to the MCTAC.

§445.4. Criminal Background Check.

(a) Each applicant for a MVTS or MVTSR license must submit with their application an FBI background check and a TX DPS background check.

(b) Each applicant will obtain their background checks at their own expense.

(c) Applications are deemed incomplete if submitted without these background checks.

§445.5. Submission of Application.

(a) Each applicant for a MVTS license or MVTSR license must submit:

(1) the completed application form;

(2) supporting documentation required by these rules; and

(3) payment of applicable fees.

(b) Each application must be submitted in person to the MCTAC or the MCTAC representative at the MCTAC Conroe, Texas office. Applications will not be accepted at any other MCTAC locations.

(c) Each applicant must present the following at the time of application submittal:

(1) a valid Texas driver's license or Texas DPS issued Identification Card;

(2) if applicable, a U.S. issued alien identification card issued by the Department of Homeland Security; and

(3) a valid Social Security card.

(d) In presenting the identification listed in subsection (c) of this section with their application, the person permits the Montgomery County Tax Assessor-Collector or Montgomery County Tax Assessor-Collector's designated representative to make a copy of both. License applications will not be processed without the required identification being presented.

(e) Fees are subject to change upon approval by Montgomery County Commissioners Court.

§445.6. Motor Vehicle Title Service Application Requirements.

(a) A MVTS License Application will not be considered complete under §445.5 of this chapter (relating to Submission of Application) unless:

(1) all applicable information identified on the Title Service License Application form ("TSLA Form") has been provided;

(2) all required documentation has been attached;

(3) the applicant identified on the TSLA Form has executed the applicant affidavit section of the TSLA Form as described in subsection (c) of this section; and

(4) all applicable fees have been paid.

(b) If applicant business is a partnership, each partner must submit a separate application. If applicant business is a corporation, each officer and director must submit a separate application and identify the state of incorporation on that application.

(c) Each applicant shall provide all information indicated on the TSLA Form, which information shall include but is not limited to:

(1) applicant name, address, telephone number, social security number, date of birth, Texas driver's license number, citizenship status, and what position the applicant holds in the applicant business (i.e., owner, principal, director, office, partner);

(2) applicant business name, physical address, mailing address, and telephone number(s);

(3) identification of applicant business type (i.e., DBA, Corporation, or Partnership);

(4) name under which service will conduct business (if different than applicant business name);

(5) The physical address(es) (including any applicable suite number(s) of each location/office from which the service will conduct business (a P.O. box will not be accepted) and a corresponding photo, with address numbers clearly visible, of each location/building where business is to be conducted;

(6) the name(s), as applicable, of:

(A) each individual with any ownership interest in the applicant business; and

(B) each principal, officer or director of applicant business;

(7) if the applicant or applicant business has previously applied for a MVTS license (or permit) in a Texas County, including Montgomery County, please provide the following information:

(A) when they applied;

(B) where they applied;

(C) what was the result of the previous application; and

(D) whether the applicant or applicant business has ever had a MVTS license (or permit) revoked or suspended (if revoked or suspended, which county revoked or suspended, when the license was revoked or suspended, and why the license was revoked or suspended);

(8) applicant business federal tax identification number; and

(9) applicant business state sales tax number.

(d) The following documents must be submitted with and attached to the signed and completed TSLA Form:

(1) to show proof of United States citizenship or legal residency, a copy of a current, valid applicant's valid Texas driver's license or Texas Department of Public Safety Identification Card and valid Social Security card, or if applicable, a U.S. issued alien identification card issued by the Department of Homeland Security;

(2) a certified copy of:

(A) if applicant business is a DBA, each applicable Assumed Name Certificate;

(B) if applicant business is a corporation, the applicable Articles of Incorporation; or

(C) if applicant business is a partnership, the applicable Partnership Agreement;

(3) all forms required by Montgomery County Tax Assessor-Collector, signed and completed as required by the Montgomery County Tax Assessor-Collector; and

(4) all required background checks.

(e) Each applicant shall execute the Applicant Affidavit section of the TSLA Form that information provided in and with the application is true and correct.

§445.7. Title Service License Runner Application Requirements.

(a) A MVTSR Application will not be considered complete under this chapter unless:

(1) all applicable information identified on the Title Service Runner License Application form (TSRA Form) has been provided;

(2) all required documentation has been attached;

(3) the applicant identified on the TSRA Form has executed the Applicant Affidavit section of the TSRA Form as described in subsection (c) of this section; and

(4) all applicable fees have been paid.

(b) Applicants shall provide all information indicated on the TSRA Form, which information shall include, but is not limited to:

(1) the name of the licensed motor vehicle title service for which the applicant seeks a license to submit or present title documents (sponsoring MVTS), the MVTS license number, and date of issuance;

(2) the name, office address and office phone number of the title service owner, officer or employee who will supervise applicant;

(3) applicant's name, telephone number, social security number, date of birth, Texas driver's license number and citizenship status;

(4) if the applicant or applicant business has previously applied for a MVTS or MVTSR license (or permit) in a Texas County, including Montgomery County, provide the following information: when they applied, where they applied, what was the result of the previous application, and whether the applicant or applicant business has ever had a MVTS or MVTSR license (or permit) revoked or suspended (if revoked or suspended, which county revoked or suspended), when the license was revoked or suspended, and why the license was revoked or suspended; and

(5) a sworn affidavit stating that the applicant is employed by the motor vehicle title service identified on the Application and authorized by that motor vehicle title service to submit or present title documents to the MCTAC.

(c) The following documents must be submitted with and attached to the signed and completed TSRA Form:

(1) to show proof of United States citizenship or legal residency, a copy of applicant's valid Texas driver's license and valid Social Security card, or if applicable, a U.S. issued alien identification card by the Department of Homeland Security;

(2) all forms required by Montgomery County Tax Assessor-Collector, signed and completed as required by the Montgomery County Tax Assessor-Collector;

(3) sworn affidavits of each owner, partner, officer or director of the licensed title service identified on the TSRA Form, stating that the licensed title service (which must be identified specifically in the statement by name and license no.) employs applicant and authorizes him/her to submit or present title documents to the Montgomery County Tax Assessor-Collector on its behalf; and

(4) all required background checks.

(d) Each Applicant shall execute the Applicant Affidavit Section of the TSRA Form, attesting to the following:

(1) that information provided in and with the Application is true and accurate; and

(2) the applicant is employed by the title service identified in section 1 of the Application to submit or present title documents to the Montgomery County Tax Assessor-Collector under Chapter 520 of the Texas Transportation Code.

§445.8. Application Review/Applicant Background Check.

(a) After acceptance of a completed application, the Montgomery County Tax Assessor-Collector will conduct an initial review of the application. The Montgomery County Tax Assessor-Collector may ask the applicant to provide additional clarifying or verifying information.

(b) Applicants will be notified of the outcome of an application within thirty (30) days of receiving the application. Such notice will be sent by electronic mail and regular mail:

(1) to MVTS license applicants at the business mailing address listed on the application; and

(2) to MVTSR applicants at the business mailing address for the MVTS sponsor listed on the application.

§445.9. License/Badge.

(a) License Number /Effective Date. Each license granted will be assigned a number. The effective date of issuance is the date upon which notice is sent under §445.8(c) of this chapter (relating to Application Review/Applicant Background Check/Applicant Interview).

(b) Original. Each licensee shall be issued one original license.

(c) Expiration. All licenses expire on the one year anniversary date of issuance.

(d) All licenses must be displayed in office/location of business.

(e) Licenses may be renewed pursuant to §445.12 of this chapter (relating to License Renewal).

(f) Each MVTS owner and MVTSR will be issued a badge upon issuance of their license.

§445.10. Reporting and Records.

(a) Each licensed MVTS must inform the Montgomery County Tax Assessor-Collector of a change to its primary physical and/or mailing address by submitting a written notification on MVTS letterhead to the Montgomery County Tax Assessor-Collector. The Montgomery County Tax Assessor-Collector shall update the address information upon receipt of the notification.

(b) A licensed MVTS shall report a change to its principals, partners, owners, officers, or directors as provided in §445.14 of this chapter (relating to Suspension).

(c) A licensed MVTS shall report a change to a sponsored runner, including separation of employment, name change, ineligibility, or change of business address.

(d) Each licensed MVTS must keep a file at its principal place of business:

(1) the MVTS license issued to them (displayed), a copy of the application (including all submitted documentation), and the receipt for the application;

(2) a copy of each license issued to a Runner for that MVTS, and of the Application (including all submitted documentation) submitted by each licensed runner; and

(3) all records required by Transportation Code § 520.057.

(e) Each licensed MVTS shall maintain records as required by the Montgomery County Tax Assessor-Collector for each transaction in which the license holder receives compensation. The records shall include:

(1) the date of the transaction;

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

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

(f) Each licensed MVTS shall keep:

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

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

(3) legible photocopies of any documents submitted to the Montgomery County Tax Assessor-Collector.

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

§445.11. License Fees.

(a) All license fees must be paid by cash or certified funds in the applying (MVTS license) or employing (MVTSR license) title service's name.

(b) The fee for a motor vehicle title service license shall be $500 for the initial application and $500 for each annual renewal.

(c) The fee for a title service runner license shall be $200 for the initial application and $200 for each annual renewal.

(d) The fee for replacement of a badge issued under §445.9 of this chapter (relating to License/Badge) shall be $50.

(e) All applications for new licenses and renewals submitted after the date of adoption of these rules are subject to payment of the fees listed in this section.

(f) All fees are non-refundable.

§445.12. License Renewal.

(a) A license issued under this subchapter expires on the first anniversary of the date of issuance and may be renewed annually on or before the expiration date on payment of the required renewal fee.

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

(c) If a person's license has been expired for 90 days or less, the person may renew the license by paying to the MCTAC 1-1/2 times the required renewal fee.

(d) If a person's license has been expired for longer than ninety (90) days but less than one year, the person may renew the license by paying to the MCTAC two times the required renewal fee.

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

(f) Notwithstanding subsection (e) of this section, if a person was licensed in this state, moved to another state, and has been doing business in the other state for the two years preceding application, the person may renew an expired license. The person must pay to the MCTAC a fee that is equal to two times the required renewal fee for the license.

(g) Before the 30th day preceding the date on which a person's license expires, the MCTAC shall notify the person of the impending expiration. The notice must be in writing and sent to the person's last known address according to the records of the county tax assessor-collector.

§445.13. Denial or Revocation of License.

(a) Grounds for the denial (after a completed application is submitted) or revocation of a current license, both for MVTS and MVTSR, include, but are not limited to:

(1) past or present submission by licensee or any applicant for the license, of a an application or related document to the MCTAC that contains false information or that by its submission constitutes a misrepresentation of fact;

(2) the licensee or any applicant for the license has been convicted of any felony, any crime of moral turpitude, or deceptive business practice ;

(3) the licensee or any applicant for the license has been criminally or civilly sanctioned for the unauthorized practice of law by any government or quasi-government body with jurisdiction to do so;

(4) all of the affiant(s) described in §445.7(a)(3) of this chapter (relating to Completion of MVTSR Application) have withdrawn their affidavit(s) or otherwise informed the MCTAC that the applicants are not employed and authorized to submit title documents on behalf of the title service identified in the application;

(5) disruptive or aggressive behavior by a licensee or any applicant for the license at any MCTAC location that in the opinion of the MCTAC creates a security concern;

(6) any dishonest, fraudulent, or criminal activity by a licensee or any applicant for the license;

(7) failure to pay fines and/or fee identified in a suspension notice under §445.14(a) of this chapter (relating to Suspension) within thirty (30) days of the suspension's effective date;

(8) failure to correct reason for suspension within thirty (30) days of the suspension's effective date; and/or

(9) the license holder becomes ineligible due to the change in status listed under §445.3(c) of this chapter (relating to Eligible Applicants).

(b) Upon its determination that a license should be denied or revoked, the MCTAC shall send notice of denial/revocation to the applicant(s)/licensee by certified mail. Notice of any license denial shall be sent to each applicant at the business address listed on his/her application form. Notice of a Runner license revocation shall be sent to their sponsoring MVTS business. Notice of a title service license revocation shall be sent to the attention of all MVTS partners, owners, officers, directors, or principals (as applicable) at the most recent primary physical business address on file for licensee. The notice shall identify the grounds that warrant the determination.

(c) Revocation shall be effective upon the date notice described in subsection (b) of this section is sent.

(d) A Person whose license is revoked may not apply for a new license before the first anniversary of the date of the revocation. An applicant who was previously denied may not apply for any license before the first anniversary of the date of the denial or revocation.

§445.14. Suspension.

(a) Suspension for unpaid taxes. The MCTAC may suspend a license if the licensee or any applicant for the license is delinquent in the payment of real and/or personal property taxes or fines/fees owed to Montgomery County, Texas.

(1) Suspension notice. The MCTAC shall send notice of suspension, which shall include a statement identifying the unpaid taxes, by certified mail. Notice of suspension of a MVTSR under this section shall be sent to the most recent primary physical business address on file for the licensee. Notice of a title service license suspension under this section shall be sent to the attention of all MVTS partners, owners, officers, directors, or principals (as applicable) at the most recent primary physical business address on file for the licensee. Suspension shall become effective upon the date notice is sent. Failure to pay the delinquent taxes identified in the suspension notice within thirty (30) days of the suspension date shall result in revocation of the MVTS business license or MVTSR license.

(2) A license suspended under this subsection will be reinstated if, within thirty (30) days of the suspension's effective date, the licensee provides the MCTAC with notice that includes a certified copy of the Montgomery County invoice showing that the taxes identified in the suspension notice have been paid in full. The licensee may deliver such notice in writing by certified mail, return receipt requested, in which case notice will be considered received by the MCTAC on the date the return is signed. The licensee may deliver such notice in person by presenting a copy of the paid receipt at the MCTAC main location, in which case notice shall be considered received when the MCTAC issues the licensee a copy of the file-stamped receipt submitted.

(b) Suspension for change in MVTS ownership or MVTSR status. If the MVTS fails to notify the MCTAC of any changes in ownership or MVTSR status within ten (10) days of the change, the MVTS or MVTSR license, (whichever is applicable) shall be automatically suspended. Notifications of changes in ownership must be accompanied by the appropriate applications and fees. Once the applications have been approved and the license to the new owner has been issued, the suspension will be lifted. The new license will expire on the first anniversary of its issuance and is subject to the same renewal requirements.

§445.15. Appeals.

(a) An applicant/licensee may appeal the denial or revocation of a license by filing a written appeal request with the MCTAC within thirty (30) days of the date of notice is sent under §445.13(b) of this chapter (relating to Denial or Revocation of License). Any information/documentation in support of such appal must be submitted with the appeal request.

(b) The MCTAC shall appoint a Review Board ("Review Board") consisting of three (3) members. At least one member of the Review Board shall be a law enforcement officer. The MCTAC may appoint one or more MCTAC employees to serve on the Review Board. Provided at least one law enforcement officer is in attendance, appeals shall be reviewed at a meeting of at least three (3) members of the Review Board.

(c) Timely filed appeals will be scheduled for review at the next Review Board meeting, which shall take place no less than sixty (60) days following the filing of the appeal. An applicant/licensee whose appeal is under review may attend the meeting and, at the Review Board's discretion, provide testimony in support of the appeal. The Review Board also has discretion to consider documentation not timely provided under subsection (a) of this section.

(d) Recommendation. The law enforcement officer in attendance shall preside over the meeting and determine when each appeal has been sufficiently considered, discussed and reviewed by the members in attendance. Following such determination, each member in attendance shall state and briefly describe the reasons for his/her opinion as to whether the action appealed should be sustained.

(e) Within fifteen (15) days of receiving the presiding officer's written recommendation, the MCTAC shall make a final determination on the appeal. The MCTAC shall consider the presiding officer's recommendation before making the final determination.

(f) The MCTAC shall send notice of its final determination to the applicant/licensee by certified mail as follows:

(1) license denial- to each applicant at the business address listed on his/her application form;

(2) runner license denial and revocation- to the most recent primary physical business address for the sponsoring MVTS; and

(3) title service license revocation- to the attention of all partner, owners, officers, directors, or principals (as applicable) at the most recent primary physical business address on file.

§445.16. Requirements for Conducting Motor Vehicle License Transactions.

(a) All vehicle transactions for Montgomery County will be processed at the Montgomery County Tax Office, 400 N. San Jacinto St., Conroe, Texas.

(b) MCTAC will process motor vehicle transactions solely for purchasers who live in Montgomery County, Texas. The MVTS/MVTSR processing the transaction must provide proof that the purchaser is a Montgomery County resident.

(c) A MCTAC vehicle transaction form must accompany all motor vehicle service transactions. The MVTS officer or owner shall print or sign his name in the space provided and fill in the company authorization number in the space provided.

(d) The person preparing the vehicle transaction form will print and sign his or her name in the spaces provided.

(e) All runners presenting documents at the MCTAC for processing shall print and sign their names in the spaces provided. Runners shall also fill in their MCTAC authorization number in the appropriate block.

(f) The MVTS company is responsible for the accuracy and validity of the information for each vehicle listed. Only vehicles for which the MVTS has been authorized to process the title will be processed by the MCTAC. The MVTS/MVTSR must provide proof of authorization from the purchaser of the vehicle to process the title transaction, including the purchaser's driver's license or state issued ID and a signed authorization form showing they have authorized the transaction.

(g) All vehicles for which the title service company wishes to complete a transaction must be listed and identified as transfer or ownership, renewal or replacement of license plates or registration sticker on the transaction form. The vehicle make, model, year and vehicle identification number must be printed legibly. Only vehicles for which the MVTS has been authorized to process can be printed on the form.

(h) After the final vehicle transaction on each transaction sheet is completed, the original transaction form will be retained by the MCTAC.

(i) MCTAC shall refuse to process motor vehicle title transactions for any runner that does not present their current MCTAC issued runner photo ID badge when paperwork is submitted. Persons are prohibited to use another person's MCTAC issued runner photo ID badge when presenting title documents at MCTAC for processing. The photo ID badge may only be used by the person to whom it was issued.

(j) Title documents may only be submitted in person at the MCTAC, by mail, or by common carrier. Submission by internet or email is prohibited.

(k) Runners may present work for only their sponsoring MVTS and work they are authorized to conduct. Runners may not present work for other runners.

§445.17. Amendment of Rules.

(a) The MCTAC may amend these rules in his/her sole discretion and as deemed necessary at any time.

(b) The MCTAC may authorize other policies and procedures that are not inconsistent with these sections or other law and to the extent authorized by law.

(c) All persons and businesses who hold a MCTAC issued license on the effective date of these rules are subject to these rules.

(d) All applications for new licenses and for renewal submitted after the effective date of these rules are subject to these rules.