Saturday, June 12, 2010

A Monopoly in Temporary Tags


By law, the State of Texas may not issue temporary tags.  According to David Dewhurst, our current Lieutenant Governor, the State does not issue tags.  But, the tags are printed from the Department of Motor Vehicles website, and the process used by the DMV effectively bars other vendors from issuing the tags.

The Tags on Demand software and the product was created in 2003.  It was already in use by several dealerships for over five years.  The product has been licensed and is currently used in the State of Florida.

The DMV, a State agency, was created in June 2009 to register and title vehicles.  The agency then created a new program which would generate the tag numbers and prescribe the tag specifications.  The dealer then prints the tag directly from the DMV website. The tag numbers are exclusively under the control of the DMV; they are not available to any other company that may wish to issue the tags.

By the process that has been instituted by the DMV, no other entity is capable of issuing the tags.  Therefore, a monopoly has been created.

The product is inferior.  The temporary tags no used are not water-proof and require the addition of plastic bags for inclement weather.

The process denies a Texas resident, a US citizen, the right to a profit from hard work, ingenuity, and the invention of a better product.
Transportation Code Sec. 503.063 Buyer's Temporary Cardboard Tags

Department of Motor Vehicles e-Tag FAQs