Texas Department of Motor Vehicles

Final Results of Last Sunset Review

Continue 

• Continue the Texas Department of Motor Vehicles (TxDMV) for 12 years.  

Governance

• Require the board to adopt rules and policies to establish clear standards for conduct and handling of contested cases coming before the board for final decisions.
• Remove the board’s exemption from providing balanced representation on its advisory committees.
• Direct the board to establish advisory committees to provide expertise for rulemaking and other issues and adopt rules regarding standard committee structure and operating criteria.  (Management action – nonstatutory)
• Apply and update the standard across-the-board requirements related to alternative dispute resolution, complaint processing, and board member training, including training on anticompetitive board behavior.
• Update the Sunset across-the-board requirement that requires agencies to adopt policies clearly delineating the policymaking functions of the board from the day-to-day administration of the agency, to clarify the division of responsibilities between the department’s board and its executive director.  

Vehicle Title Fraud

• Require counties to follow standard state contracting practices when outsourcing registration and title services to full-service deputies and to rebid existing full service deputy contracts, with required assistance from TxDMV, by March 31, 2020.  The department must provide guidance and recommendations on contracting practices to the county tax assessor-collector to assist in the rebidding of the contracts.  
• Clarify the department has sole authority to control access to the state registration and title system and require the department work with county tax assessor-collectors to create clear criteria for the department to suspend or deny access to the system by March 1, 2020.  
• Require the department to implement a proactive, risk-based approach to monitoring registration and title fraud, and share best practice protocols with county tax assessor-collectors.
• Require the department to implement a mandatory fraud training program for all persons performing state registration or titling services and, as a management action, specify the training will be provided online or in-person as needed, prior to gaining access to the registration and title system.  
• Authorize the department and the respective county tax assessor-collectors to audit or perform a compliance review of any entity providing registration and title services.  
• Authorize the comptroller of public accounts, in coordination with the department, to include as part of its regular audits of state revenue collections by county tax assessor-collector offices, a review of processes relating to a county’s collection and remittance of revenues.
• Direct the department to adopt its current “red flag” fraud warning system to further implement a clear and efficient path for county tax assessor-collectors to report and request department action for suspected fraud, waste, or abuse of the registration and title system by employees, dealers, and full-service deputies.  (Management action – nonstatutory)
• Authorize Automobile Burglary and Theft Prevention Authority, renamed the Motor Vehicle Crime Prevention Authority, grant recipients to use funds to combat a broader range of motor vehicle crimes, such as title and odometer fraud, beyond just automobile burglary and theft; and codify the authority’s statutes.

Salvage Dealer Regulation

• Eliminate the salvage agent license.
• Eliminate separate salvage license endorsements and establish a single, streamlined salvage license and authorize the department to set salvage license terms in rule.
• Specify a licensed salvage vehicle dealer may buy or sell salvage and nonrepairable motor vehicles that have been issued a salvage or nonrepairable vehicle title.
• Remove unnecessary application requirements for salvage licenses.  (Management action – nonstatutory)
• Direct the department to adopt criminal history evaluation rules and guidelines consistent with Chapter 53, Texas Occupations Code for salvage industry regulation.  (Management action – nonstatutory)
• Direct the department to establish a risk-based approach to its salvage vehicle dealer inspections.  (Management action – nonstatutory)
• Authorize the department to use cease-and-desist authority for unlicensed salvage activity.

Licensing and Enforcement 

• Eliminate the requirement for motor vehicle dealers to receive written approval from the department to participate in a new motor vehicle show or exhibition, but require dealers to provide the department with written notice before the date the show or exhibition opens. 
• Eliminate the representative license.
• Direct the department to conduct criminal history checks for all motor vehicle license renewals.  (Management action – nonstatutory)
• Direct the department to identify and implement methods to reduce its complaint resolution timeframes; develop clear guidance and criteria for prioritizing investigations and inspections; and improve enforcement data tracking within its existing systems.  (Management action – nonstatutory)
• Direct the department to revise and expand key performance indicators and annual enforcement reports.  (Management action – nonstatutory)
• Authorize the department to require refunds for consumers for motor vehicle and motor carrier violations.
• Direct the department to publish penalty matrices and provide more detailed enforcement histories of regulated motor vehicle and motor carrier businesses online.  (Management action – nonstatutory)
• Require independent auto dealers to complete a web-based education and training program developed or approved by the department at issuance or the next renewal of their general distinguishing number.  
• Require the department to keep complaint investigations confidential until the investigation is dismissed or finally resolved, but only if the disclosure of the information would interfere with or jeopardize the investigation.  

Information Technology

• Require the department to ensure webDEALER is available to automobile dealers in all Texas counties by September 1, 2020.
• Require the board to adopt rules regulating the use of digital license plates on certain types of motor vehicles, no later than December 31, 2020.  Only vehicles in commercial fleets or vehicles owned or operated by a governmental entity may be equipped with a digital license plate.  Authorizes the department to contract with digital license plate providers under specific contracting provisions.
• Direct the department to develop a comprehensive approach to developing, maintaining, and updating its IT infrastructure.  (Management action – nonstatutory)
• Direct the department to evaluate and identify further opportunities to consolidate and modernize its customer service functions.  (Management action – nonstatutory)

Studies 

• Require TxDMV to organize a study on the impact of the alternatively fueled vehicles (AFV) industry on the state, available options to collect fees from AFV owners to replace the loss of motor fuel taxes, and the feasibility of establishing a fee for AFVs.  Require the study to be conducted by TxDMV, Public Utility Commission, Texas Department of Transportation, and Department of Public Safety, and completed by December 1, 2020.
• Direct the Sunset Commission to request that the Legislature examine all state boards, including the TxDMV board, for any legislation needed to mitigate the potential liability of boards controlled by active market participants.  (Management action – nonstatutory)
• Direct the department to complete the existing contracted study, as required under House Bill 1959 (85th Legislature, Regular Session), to identify and assess alternative technologies for registering commercial vehicles by March 31, 2019, instead of December 1, 2021.  (Management action – nonstatutory)