. .
EATTORNEY GENERAL
OF-TEXAS
AUSTIN ==.I'eKAe
PRICE DANIEL
ATTORNEY GENERAL June 23, 1950
Hon. Homer P. Garrison, Jr., Director
Texas Department of Public Safety
Austin, Texas
Opinion No. V-1073
Re: The legality of sales by a
used car dealer of motor
vehicles not registered In
Texas for the current year;
and related questlons.
Dear Col. Garrison:
Your request for an opinion presents the following
questions:
Does Article 1434, Penal Code of,Texas, as
amended and enacted by the 50th Texas Legislature
permit the transfer or sale by a used car dealer
of a used motor vehicle not registered for the
current year?
Can a temporary cardboard dealer's license
plate be used on a second-hand car by a non-
dealer purchaser when such used car has not been
registered for the current year?
Article 1434 of Vernon's Penal Code, as amended, reads
as follows:
"No person, acting for himself or another,
shall sell, trade or otherwise transfer any used
or secondhand vehicle required to be reglstered
under the laws of this State unless and until
said vehicle at the time of delivery has been
duly registered in this State for the current
year under the provisions of said law; provided,
however, that a dealer may demonstrate such
motor vehicle for the purpose of sale, trade
or transfer under a dealer's license plate issued
such dealer for demonstration purposes. Whoever,
acting for himself or another, sells, trades, or
otherwise transfers any such vehicle shall deliver
to the transferee at the time of delivery of the
vehicle the license receipt Issued by the depart-
ment for registration thereof for the current year
Hon. Homer P. Garrison, Jr., page 2 v-1073
and a properly asslgned Certificate of Title or
other evidence of title as required under the
provisions of Article 1436-l of the Penal Code
of the State of Texas. Whoever, acting for hlm-
self or another, sells, trades or otherwise
transfers any secondhand or used vehicle without
delivering to the transferee at the time of
delivery of the vehicle the license receipt
issued therefor for the current year and a
properly assigned Certificate of Title as herein
required shall be guilty of a misdemeanor and
upon conviction shall be fined in any sum not
exceeding Two Hundred Dollars ($200)."
The language of Article 1434, V.P.C., above, provides
that 'no person shall sell any used or second-hand vehicle re-
quired to be registered unless .... said vehicle .... has been
duly registered for the current year .... provided, however, a
dealer may demonstrate such motor vehicle for the purpose of sale,
trade or transfer under a dealer's license plate issued such
dealer for demonstration purposes." The quoted proviso permits
used car dealers licensed under Art. 6686, V.C.S., to transfer,
trade or sell a used motor vehicle not registered for the current
year.
The Supreme Court in Texas Automotive Dealers AssIn.,
Inc. v. Harris County Tax Assessor-Collector, et al. 229 S.W.
2d 767,in considering the applicability of Article 1434, V.C.S.,
to automobile dealers said:
"It is claimed that dealers are not expressly
named as being exempt from the provisions of this
article, and therefore they should file the transfer
within the ten-day period. First, we notice that the
Act expressly refers to Art. 1434, P.C., Art. 1435,
P.C., expressly exempts dealers who have a dealer's
license plate from the requirements that they must
registersa motor vehicle and have the current,,year's
license receipt before he can sell the car....
II..........
"Since the Legislature by the language of Art. 1434
and by references.in Art. 1435 excepts dealers who
have dealers' license from the provisions of the law
requiring them to license their used or secondhand
cars or secure Certificate of Title thereto, we hold
they are excepted from the requirement of filing the
license registration receipts and Certificate of
Title applications for transfer within the ten-day
-
Hon. Homer P. Garrison, Jr., page 3 v-1073
period provided In Art. 1435 and therefore are
not liable for penalties for failure so to do."
Your first question is therefore answered in the affirm-
ative.
The answer to your second question lies in Article
6686, V.C.S., which reads, In part, as follows:
"Each dealer holding a dealer's license
may issue temporary cardboard numbers using such
dealers' number thereon which may be used by any
person, dealer, or manufacturer purchasing a
motor vehicle, trailer, or semitrailer. Such
person purchasing a motor vehicle, trailer, or
semi-trailer from a manufacturer or dealer may
use such cardboard number for a reasonable
le th of time but in no case to exceed ten
0 days after such purchase is made. Any
(17
dealer or manufacturer may use such cardboard
license plate for the purpose of operating or
conveying a motor vehicle, trailer, or semi-
trailer, from his place of business in one part
of the State to his place of business in another
part of the State, and for the purpose of oper-
ating or conveying a motor vehicle, trailer, or
semi-trailer from the point where it is unloaded
to his place of business, and may also use such
cardboard number in transporting a motor vehicle,
trailer, or semi-trailer from the State line to
his place of business. The form of such card-
board number shall be fjrescribedby the Depart-
ment of Public Safety.
Article 6686, Sec. (b), permits a person to use tem-
porary cardboard numbers issued by the dealer holding the dls-
tinguishing dealer's license plate number. However, the purchaser
may use the number for only a reasonable time, not to exceed ten
(10) days after the date of the purchase, and thereafter the
vehicle must be registered in accordance with the registration
statutes.
In Texas Automotive Dealers Ass'n., Inc. v. Harris CountY
Tax Assessor-Collector, et al., supra, the court said:
"Art. 6686, Revised Civil Statutes, 1925, as
amended, provides who may secure dealer's license,
and provides 'Any ++* or dealer in motor vehicles
in this state may, instead of registering each
vehicle he may wish to show or demonstrate upon
Hon. Homer P. Garrison, Jr., page 4 VT1073
the public highway,' may apply for and secure a dealer's
license plate to be attached to such motor vehicle.
This specifically exempts the dealer from procuring
a current year's license registration receipt before
he may sell the vehicle. Also paragraph (9 of such
article DrOVideS that the dealer may issue temvorars
cardboard numbers, using such dealer's number,k
any nerson purchasing a motor vehicle from the dealer,
and such ourchaser may use such dealer's cardboard
number for ten days... ." (Emphasis supplled)
We are therefore of the opinion that a non-dealer pur-
chaser could use temporary cardboard numbers issued by the dealer
for a period not to exceed ten days.
SUMMARY
A licensed used car dealer is exempted
from the provisions of Article 1434, V.P.C.,
as amended, and therefore can sell motor ve-
hicles not registered for the current year in
Texas. A non-dealer purchaser of a used car
can use the temporary cardboard numbers issued
by the dealer for a period not to exceed ten
Article 1434, V.P.C.; Art. 6686,
E! ~,8~*v.c.s . Texas Automotive Dealers
Ass'n., inc. v.'iarrls County Tax Assessor-
Collector, et al*, (Sup. Ct.) 229 S.W. 2d 787.
Yours very truly,
PRICE DANIEL
Attorney General
By s/James E. Ferguson
James E. Ferguson
Assistant
JEF/rt:db:wc
APPROVED:
Ned HcDanFel
State Affalrs DivisFon
Charles D. Mathews
Executive Assistant