BILL ANALYSIS

C.S.H.B. 2522

By: Dean

Transportation

Committee Report (Substituted)

BACKGROUND AND PURPOSE

In 2022, the Texas Department of Motor Vehicles (TxDMV) adopted rules requiring applicants for and holders of all types of dealer general distinguishing numbers (GDN), including vehicle, trailer, and recreational vehicle dealers, to be fingerprinted as part of TxDMV's efforts to prevent and deter fraud. The bill author has informed the committee that these rules, implemented in response to reports of the fraudulent issuance of temporary tags for traditional motor vehicles, mandate that each licensed location have on file the fingerprints of an employee who is a Texas resident and physically present at the licensed location, have been applied too broadly, and have resulted in large retailers that sell trailers and recreational vehicles facing significant regulatory challenges in complying with the requirement.

C.S.H.B. 2522 seeks to address this issue by allowing large retailers that operate 75 or more locations in Texas to designate a single manager or other bona fide employee to be fingerprinted and serve as the registered employee of record for all locations within a 100-mile radius. This tailored approach seeks to preserve the purpose of TxDMV rules in preventing fraud while providing appropriate flexibility to retailers.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

C.S.H.B. 2522 amends the Transportation Code to authorize the Texas Department of Motor Vehicles (TxDMV) to require a person who is an applicant for or holds a dealer general distinguishing number (GDN) for 75 or more locations and applies for an original or renewal dealer GDN to submit a complete set of fingerprints to TxDMV to obtain the GDN. This authorization is only applicable if TxDMV requires, for each location for which the person applies for a dealer GDN, a complete set of fingerprints from not more than one manager or other bona fide employee whose regular place of work is located within 100 miles of that location. The bill establishes that for these purposes, a complete set of fingerprints from one manager or other bona fide employee satisfies the fingerprint requirements for a person's application for a dealer GDN for all locations from which the person conducts business as a dealer that are located within 100 miles of the location of the fingerprinted manager's or employee's regular place of work.

EFFECTIVE DATE

September 1, 2025.

COMPARISON OF INTRODUCED AND SUBSTITUTE

While C.S.H.B. 2522 may differ from the introduced in minor or nonsubstantive ways, the following summarizes the substantial differences between the introduced and committee substitute versions of the bill.

The substitute increases the number of locations for which a person is an applicant for or holder of a GDN that makes the person subject to the bill's provisions from 10 or more locations, as in the introduced, to 75 or more locations.