By: Rodriguez of Travis H.B. No. 4014       A BILL TO BE ENTITLED   AN ACT   relating to new capital investment in the state.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subchapter C, Title 2, Tax Code, is amended by   amending Section 152.0411 and adding Section 152.0413 to read as   follows:          Sec. 152.0411.  COLLECTION BY SELLERS.  (a)  Except as   provided by this section, a seller who makes a sale subject to the   sales tax imposed by Section 152.021 shall add the amount of the tax   to the sales price, and when the amount of the tax is added:                (1)  it is a debt of the purchaser to the seller until   paid; and                (2)  if unpaid, it is recoverable at law in the same   manner as the original sales price.          (b)  The seller shall collect the tax from the purchaser and   remit it to the tax assessor-collector in the time and manner   provided by law.          (c)  This section applies only to the sale of a vehicle that   is to be titled and registered in Texas.  If a purchaser intends to   register a vehicle outside Texas, the purchaser shall comply with   the terms of Section 152.092.          (d)  This section does not apply to a seller-financed sale.          (e)  This section applies only to a sale in which the seller   is a motor vehicle dealer who holds a dealer license issued under   Chapter 503, Transportation Code, or Chapter 2301, Occupations   Code, except as provided by Section 152.0413.          (f)  This section does not apply to the sale of a motor   vehicle with a gross weight in excess of 11,000 pounds.  The seller   of a motor vehicle with a gross weight in excess of 11,000 pounds   shall maintain records of the sale in the manner and form, and   containing the information, required by the comptroller.          Sec. 152.0413.  COLLECTION BY VERIFIED INVESTED SELLERS.     (a)  This section applies to the sale of a motor vehicle by an entity   that is:                (1)  in good standing under the laws of the state in   which the entity was formed or organized, as evidenced by a   certificate issued by the secretary of state or the state official   having custody of the records pertaining to entities or other   organizations formed under the laws of that state; and                (2)  owes no delinquent taxes to a taxing unit of this   state;                (3)  made a new capital investment in this state   including a place of business and a facility for the servicing,   including warranty servicing, that shall be furnished with all the   equipment required to service;                (4)  generates more than 100 jobs in this state;                (5)  intends to remain regularly and actively engaged   in the business at a location specified; and                (6)  intends that a bona fide employee will be at the   location to buy, sell, lease, or exchange vehicles during   reasonable and lawful business hours.          (b)  This section does not apply to:                (1)  a franchised dealer as defined by section   2301.002(16), Occupations Code; or                (2)  a manufacturer that has granted a franchise the   right to sell and service new motor vehicles manufactured or   distributed by the manufacturer.          (c)  After receiving verification from the Comptroller that   an entity meets the requirements of this section, an entity to which   this section applies is exempt from Subchapter B of Chapter 503,   Transportation Code, and Chapter 2301, Occupations Code.          (d)  The owner of a motor vehicle or the owner's designated   agent may make a complaint concerning the purchase of the vehicle or   a defect in a motor vehicle that is covered by a manufacturer's   warranty agreement applicable to the vehicle.  The complaint must   be made in writing to the applicable entity and must specify each   defect in the vehicle that is covered by the warranty.     Notwithstanding any other law the attorney general may enforce this   subsection.          (e)  The comptroller shall adopt rules and promulgate forms   necessary to implement this section.          SECTION 2.  Section 503.001, 503,062, 503.0626, 503.063, and   503.0631, Transportation Code, are amended to read as follows:          Sec. 503.001.  DEFINITIONS.  In this chapter: (1)  "Board"   has the meaning assigned by Chapter 2301, Occupations Code.                (2)  "Commission" means the board of the Texas   Department of Motor Vehicles.                (3)  "Converter" has the meaning assigned by Chapter   2301, Occupations Code.                (4)  "Dealer" means a person who regularly and actively   buys, sells, or exchanges vehicles at an established and permanent   location.  The term includes a franchised motor vehicle dealer, an   independent motor vehicle dealer, an independent mobility motor   vehicle dealer, and a wholesale motor vehicle dealer.                (5)  "Department" means the Texas Department of Motor   Vehicles.                (6)  "Drive-a-way operator" means a person who   transports and delivers a vehicle in this state from the   manufacturer or another point of origin to a location in this state   using the vehicle's own power or using the full-mount method, the   saddle-mount method, the tow-bar method, or a combination of those   methods.                (6-a)  "Verified Invested Seller" has the meaning   assigned by Chapter 152, Tax Code.                (7)  "Franchise" has the meaning assigned by Chapter   2301, Occupations Code.                (8)  "Franchised motor vehicle dealer" means a person   engaged in the business of buying, selling, or exchanging new motor   vehicles at an established and permanent place of business under a   franchise in effect with a motor vehicle manufacturer or   distributor.                (8-a)  "Independent mobility motor vehicle dealer" has   the meaning assigned by Section 2301.002, Occupations Code.                (9)  "Independent motor vehicle dealer" means a dealer   other than a franchised motor vehicle dealer, an independent   mobility motor vehicle dealer, or a wholesale motor vehicle dealer.                (10)  "Manufacturer" means a person who manufactures,   distributes, or assembles new vehicles.                (11)  "Motorcycle" has the meaning assigned by Section   502.001.                (12)  "Motor vehicle" has the meaning assigned by   Section 502.001.                (13)  "Semitrailer" has the meaning assigned by Section   502.001.                (14)  "Trailer" has the meaning assigned by Section   502.001.                (15)  "Vehicle" means a motor vehicle, motorcycle,   house trailer, trailer, or semitrailer.                (16)  "Wholesale motor vehicle auction" means the   offering of a motor vehicle for sale to the highest bidder during a   transaction that is one of a series of regular periodic   transactions that occur at a permanent location.                (17)  "Wholesale motor vehicle dealer" means a dealer   who sells motor vehicles only to a person who is:                      (A)  the holder of a dealer's general   distinguishing number; or                      (B)  a foreign dealer authorized by a law of this   state or interstate reciprocity agreement to purchase a vehicle in   this state without remitting the motor vehicle sales tax.          Sec. 503.062.  [DEALER'S] TEMPORARY TAGS.  (a)  A dealer or   verified invested seller may issue a temporary tag for use on an   unregistered vehicle by the dealer, or the dealer's employees, the   verified invested seller, or the invited seller's employees only   to:                (1)  demonstrate or cause to be demonstrated to a   prospective buyer the vehicle for sale purposes only;                (2)  convey or cause to be conveyed the vehicle:                      (A)  from one of the dealer's places of business   or the place of business of a verified invested seller in this state   to another of the dealer's places of business or the place of   business of a verified invested seller in this state;                      (B)  from the dealer's place of business or the   place of business of a verified invested seller to a place the   vehicle is to be repaired, reconditioned, or serviced;                      (C)  from the state line or a location in this   state where the vehicle is unloaded to the dealer's place of   business or the place of business of a verified invested seller;                      (D)  from the dealer's place of business or the   place of business of a verified invested seller to a place of   business of another dealer or a verified invested seller;                      (E)  from the point of purchase by the dealer or a   verified invested seller to the dealer's place of business or the   place of business of a verified invested seller; or                      (F)  to road test the vehicle; or                (3)  use the vehicle for or allow its use by a   charitable organization.          (b)  Subsection (a)(1) does not prohibit a dealer or a   verified invested seller from permitting:                (1)  a prospective buyer to operate a vehicle while the   vehicle is being demonstrated; or                (2)  a customer to operate a vehicle temporarily while   the customer's vehicle is being repaired.          (c)  A vehicle being conveyed under this section is exempt   from the inspection requirements of Chapter 548.          (d)  The department may not issue a dealer or a verified   invested seller temporary tag or contract for the issuance of a   dealer or the place of business of a verified invested seller   temporary tag but shall prescribe:                (1)  the specifications, form, and color of a [dealer]   temporary tag;                (2)  procedures [for a dealer]to generate a   vehicle-specific number using the database developed under Section   503.0626 and assign it to each tag;                (3)  procedures to clearly display the   vehicle-specific number on the tag; and                (4)  the period for which a tag may be used for or by a   charitable organization.          (e)  For purposes of this section, "charitable organization"   means an organization organized to relieve poverty, to advance   education, religion, or science, to promote health, governmental,   or municipal purposes, or for other purposes beneficial to the   community without financial gain.          Sec. 503.0626.  [DEALER'S AND CONVERTER'S] TEMPORARY TAG   DATABASE.          (a)  The department shall develop and maintain a secure,   real-time database of information on vehicles to which dealers, a   verified invested seller and converters have affixed temporary   tags.  The database shall be managed by the vehicle titles and   registration division of the department.          (b)  The database must allow law enforcement agencies to use   the vehicle-specific number assigned to and displayed on the tag as   required by Section 503.062(d) or Section 503.0625(e) to obtain   information about the dealer, a verified invested seller or   converter that owns the vehicle.          (c)  Before a dealer's, a verified invested seller's or   converter's temporary tag may be displayed on a vehicle, the   dealer, a verified invested seller or converter must enter into the   database through the Internet information on the vehicle and   information about the dealer, a verified invested seller or   converter as prescribed by the department.  The department may not   deny access to the database to any dealer who holds a general   distinguishing number issued under this chapter or who is licensed   under Chapter 2301, Occupations Code, [or] to any converter   licensed under Chapter 2301, Occupations Code, or to any verified   invested seller.          (d)  The department shall adopt rules and prescribe   procedures as necessary to implement this section.          Sec. 503.063.  BUYER'S TEMPORARY TAGS.  (a)  Except as   provided by this section, a dealer or a verified invested seller   shall issue to a person who buys a vehicle one temporary buyer's tag   for the vehicle.          (b)  Except as provided by this section, the buyer's tag is   valid for the operation of the vehicle until the earlier of:                (1)  the date on which the vehicle is registered; or                (2)  the 60th day after the date of purchase.          (c)  The dealer:                (1)  must show in ink on the buyer's tag the actual date   of sale and any other required information; and                (2)  is responsible for displaying the tag.          (d)  The dealer or a verified invested seller is responsible   for the safekeeping and distribution of each buyer's tag the dealer   or a verified invested seller obtains.          (e)  The department may not issue a buyer's tag or contract   for the issuance of a buyer's tag but shall prescribe:                (1)  the specifications, color, and form of a buyer's   tag; and                (2)  procedures for a dealer or a verified invested   seller to:                      (A)  generate a vehicle-specific number using the   database developed under Section 503.0631 and assign it to each   tag;                      (B)  generate a vehicle-specific number using the   database developed under Section 503.0631 for future use for when a   dealer or a verified invested seller is unable to access the   Internet at the time of sale; and                      (C)  clearly display the vehicle-specific number   on the tag.          (f)  The department shall ensure that a dealer or a verified   invested seller may generate in advance a sufficient amount of   vehicle-specific numbers under Subsection (e)(2)(B) in order to   continue selling vehicles for a period of up to one week in which a   dealer or a verified invested seller is unable to access the   Internet due to an emergency.  The department shall establish an   expedited procedure to allow affected dealers or a verified   invested sellers to apply for additional vehicle-specific numbers   so they may remain in business during an emergency.          (g)  For each buyer's temporary tag, a dealer or a verified   invested seller shall charge the buyer a registration fee of not   more than $5 as prescribed by the department to be sent to the   comptroller for deposit to the credit of the Texas Department of   Motor Vehicles fund.          Sec. 503.0631.  BUYER'S TEMPORARY TAG DATABASE.  (a)  The   department shall develop and maintain a secure, real-time database   of information on persons to whom temporary buyer's tags are issued   that may be used by a law enforcement agency in the same manner that   the agency uses vehicle registration information.  The database   shall be managed by the vehicle titles and registration division of   the department.          (b)  The database must allow law enforcement agencies to use   a vehicle-specific number assigned to and displayed on the tag as   required by Section 503.063(e)(2) to obtain information about the   person to whom the tag was issued.          (c)  Except as provided by Subsection (d), before a buyer's   temporary tag may be displayed on a vehicle, a dealer or a verified   invested seller must enter into the database through the Internet   information about the buyer of the vehicle for which the tag was   issued as prescribed by the department and generate a   vehicle-specific number for the tag as required by Section   503.063(e).  The department may not deny access to the database to a   a verified invested seller or to any dealer who holds a general   distinguishing number issued under this chapter or who is licensed   under Chapter 2301, Occupations Code.          (d)  A dealer or a verified invested seller shall obtain   24-hour Internet access at its place of business, but if the dealer   or a verified invested seller is unable to access the Internet at   the time of the sale of a vehicle, the dealer or a verified invested   seller shall complete and sign a form, as prescribed by the   department, that states the dealer or a verified invested seller   has Internet access, but was unable to access the Internet at the   time of sale.  The buyer shall keep the original copy of the form in   the vehicle until the vehicle is registered to the buyer.  Not later   than the next business day after the time of sale, the dealer shall   submit the information required under Subsection (c).          (e)  The department shall adopt rules and prescribe   procedures as necessary to implement this section.          (f)  The dealer or verified invested seller may charge a   reasonable fee not to exceed $20 for costs associated with   complying with this section.          SECTION 3.  Not later than September 1, 2017, the   comptroller shall adopt or modify any rules necessary to implement   the changes in law made by this Act.          SECTION 4.  Not later than September 1, 2017, the Department   of Motor Vehicles shall adopt or modify any rules necessary to   implement the changes in law made by this Act.          SECTION 5.  EFFECTIVE DATE.  This Act takes effect September   1, 2017.