By:  Sibley                                           S.B. No. 1435
                                 A BILL TO BE ENTITLED
                                        AN ACT
    1-1  relating to joint ownership of a motor vehicle by spouses with
    1-2  rights of survivorship.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  The Certificate of Title Act (Article 6687-1,
    1-5  Vernon's Texas Civil Statutes) is amended by adding Section 35A to
    1-6  read as follows:
    1-7        Sec. 35A.  (a)  The department shall include on each
    1-8  certificate of title a rights of survivorship agreement form.  The
    1-9  form must:
   1-10              (1)  provide that if the agreement is signed by a
   1-11  husband and wife the motor vehicle is held by the husband and wife
   1-12  jointly with the interest of either spouse who dies to survive to
   1-13  the surviving spouse; and
   1-14              (2)  provide blanks for the signatures of the husband
   1-15  and wife.
   1-16        (b)  If the vehicle is registered in the name of the husband,
   1-17  the wife, or both, and if the rights of survivorship agreement is
   1-18  signed by both the husband and the wife:
   1-19              (1)  ownership of the vehicle may be transferred only
   1-20  by both spouses acting jointly, if both spouses are alive; and
   1-21              (2)  on the death of one of the spouses:
   1-22                    (A)  ownership of the vehicle may be transferred
   1-23  by the surviving spouse by transferring the certificate of title,
   1-24  in the manner otherwise required by law for transfer of ownership
    2-1  of the vehicle, with a copy of the death certificate of the
    2-2  deceased spouse attached to the certificate of title; and
    2-3                    (B)  the department shall issue a new certificate
    2-4  of title in the name of the surviving spouse or the surviving
    2-5  spouse's transferee on presentation of a copy of the certificate of
    2-6  title with the death certificate of the deceased spouse attached
    2-7  without requiring additional evidence of the spouse's death.
    2-8        (c)  A rights of survivorship agreement under this section
    2-9  may be revoked only by surrender of the certificate of title to the
   2-10  department and joint application by the husband and wife for a new
   2-11  title in the name of the person or persons designated in the
   2-12  application.
   2-13        SECTION 2.  Sections 24 and 35, Certificate of Title Act
   2-14  (Article 6687-1, Vernon's Texas Civil Statutes), are amended to
   2-15  read as follows:
   2-16        Sec. 24.  The term "Certificate of Title" means a written
   2-17  instrument which may be issued solely by and under the authority of
   2-18  the department, and which must give the following data together
   2-19  with such other data as the department may require from time to
   2-20  time:
   2-21              (a)  The name and address of the purchaser and seller
   2-22  at first sale or transferee and transferor at any subsequent sale.
   2-23              (b)  The make.
   2-24              (c)  The body type.
   2-25              (d)  The motor number.
   2-26        At such time as the stamping of permanent identification
   2-27  numbers on motor vehicles in a manner and place easily accessible
    3-1  for physical examination is universally adopted by motor vehicle
    3-2  manufacturers as the permanent vehicle identification, the
    3-3  department is authorized to use such permanent identification
    3-4  number as the major identification of motor vehicles subsequently
    3-5  manufactured.  The motor number will continue to be the major
    3-6  identification of vehicles manufactured before such change is
    3-7  adopted.
    3-8              (e)  The serial number.
    3-9              (f)  The license number of the current Texas plates.
   3-10              (g)  The names and addresses and dates of any liens on
   3-11  the motor vehicle, in chronological order of recordation.
   3-12              (h)  If no liens are registered on the motor vehicle, a
   3-13  statement of such fact.
   3-14              (i)  A space for the signature of the owner and the
   3-15  owner shall write his name with pen and ink in such space upon
   3-16  receipt of the certificate.
   3-17              (j)  <A statement indicating "rights of survivorship"
   3-18  when an agreement providing that the motor vehicle is to be held
   3-19  between a husband and his wife jointly with the interest of either
   3-20  spouse who dies to survive to the surviving spouse is surrendered
   3-21  with the application for certificate of title.  This agreement is
   3-22  valid only if signed by both husband and wife and, if signed, the
   3-23  certificate shall be issued in the name of both.>
   3-24              <(k)>  If the motor vehicle is equipped with an
   3-25  odometer, the number of miles the motor vehicle has travelled as
   3-26  reflected by the application.
   3-27        Sec. 35.  TRANSFER BY OPERATION OF LAW; NEW CERTIFICATE.
    4-1  When the ownership of a motor vehicle registered or licensed within
    4-2  this State is transferred by operation of law, as upon inheritance,
    4-3  devise or bequest, bankruptcy, receivership, judicial sale, or any
    4-4  other involuntary divestiture of ownership, the Department shall
    4-5  issue a new certificate of title upon being provided with a
    4-6  certified copy of the order appointing a temporary administrator or
    4-7  of the probate proceedings, or letters testamentary or of
    4-8  administration, if any (if no administration is necessary, then
    4-9  upon affidavit showing such fact and all of the heirs at law and
   4-10  specification by the heirs as to in whose name the certificate
   4-11  shall issue), or order, or bill of sale from the officer making the
   4-12  judicial sale.  If the security interest or other lien is
   4-13  foreclosed in accordance with law by nonjudicial means, the
   4-14  affidavit of the secured party or other mortgagee of the fact of
   4-15  the nonjudicial foreclosure in accordance with law is sufficient to
   4-16  authorize the Department to issue a new certificate of title in the
   4-17  name of the purchaser at the foreclosure sale.  If the foreclosure
   4-18  is of a constitutional or statutory lien, the affidavit of the
   4-19  mortgagee of the fact of the creation of the lien and of the
   4-20  divestiture of title by reason thereof in accordance with law and
   4-21  proof of notice as required by Article 5504a, Revised Civil
   4-22  Statutes of Texas, 1925, are sufficient to authorize the Department
   4-23  to issue a new certificate of title in the name of the purchaser.
   4-24  <If an agreement providing for right of survivorship is signed by
   4-25  the husband and wife, upon the death of either spouse the
   4-26  Department shall issue a new certificate of title to the surviving
   4-27  spouse upon being provided with a copy of the death certificate of
    5-1  the deceased spouse.>
    5-2        SECTION 3.  This Act does not affect the validity of a rights
    5-3  of survivorship indication included by the Texas Department of
    5-4  Transportation on a certificate of title before the effective date
    5-5  of this Act.  That rights of survivorship indication is governed by
    5-6  the law in effect when the indication was included on the
    5-7  certificate of title, and that law is continued in effect for that
    5-8  purpose.
    5-9        SECTION 4.  This Act takes effect September 1, 1995.
   5-10        SECTION 5.  The importance of this legislation and the
   5-11  crowded condition of the calendars in both houses create an
   5-12  emergency and an imperative public necessity that the
   5-13  constitutional rule requiring bills to be read on three several
   5-14  days in each house be suspended, and this rule is hereby suspended.