By Sibley                                             S.B. No. 1435
       74R1945 DWS-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to joint ownership of a motor vehicle by spouses with
    1-3  rights of survivorship.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  The Certificate of Title Act (Article 6687-1,
    1-6  Vernon's Texas Civil Statutes) is amended by adding Section 35A to
    1-7  read as follows:
    1-8        Sec. 35A.  (a)  If a rights of survivorship agreement meeting
    1-9  the requirements of Subsection (b) of this section is submitted
   1-10  with an application for a certificate of title, the department
   1-11  shall issue the certificate in the name of both the husband and
   1-12  wife and include on the certificate of title a statement indicating
   1-13  rights of survivorship.
   1-14        (b)  A rights of survivorship agreement must:
   1-15              (1)  provide that the motor vehicle is to be held by a
   1-16  husband and wife jointly with the interest of either spouse who
   1-17  dies to survive to the surviving spouse; and
   1-18              (2)  be signed by both the husband and the wife.
   1-19        (c)  If a certificate of title includes a rights of
   1-20  survivorship indication as provided by Subsection (a) of this
   1-21  section, on the death of one of the spouses the department shall
   1-22  issue a new certificate of title in the name of the surviving
   1-23  spouse on presentation of a copy of the death certificate of the
   1-24  deceased spouse.  The department may not require additional
    2-1  evidence of the rights of survivorship agreement or the spouse's
    2-2  death.
    2-3        SECTION 2.  Sections 24 and 35, Certificate of Title Act
    2-4  (Article 6687-1, Vernon's Texas Civil Statutes), are amended to
    2-5  read as follows:
    2-6        Sec. 24.  The term "Certificate of Title" means a written
    2-7  instrument which may be issued solely by and under the authority of
    2-8  the department, and which must give the following data together
    2-9  with such other data as the department may require from time to
   2-10  time:
   2-11              (a)  The name and address of the purchaser and seller
   2-12  at first sale or transferee and transferor at any subsequent sale.
   2-13              (b)  The make.
   2-14              (c)  The body type.
   2-15              (d)  The motor number.
   2-16        At such time as the stamping of permanent identification
   2-17  numbers on motor vehicles in a manner and place easily accessible
   2-18  for physical examination is universally adopted by motor vehicle
   2-19  manufacturers as the permanent vehicle identification, the
   2-20  department is authorized to use such permanent identification
   2-21  number as the major identification of motor vehicles subsequently
   2-22  manufactured.  The motor number will continue to be the major
   2-23  identification of vehicles manufactured before such change is
   2-24  adopted.
   2-25              (e)  The serial number.
   2-26              (f)  The license number of the current Texas plates.
   2-27              (g)  The names and addresses and dates of any liens on
    3-1  the motor vehicle, in chronological order of recordation.
    3-2              (h)  If no liens are registered on the motor vehicle, a
    3-3  statement of such fact.
    3-4              (i)  A space for the signature of the owner and the
    3-5  owner shall write his name with pen and ink in such space upon
    3-6  receipt of the certificate.
    3-7              (j)  <A statement indicating "rights of survivorship"
    3-8  when an agreement providing that the motor vehicle is to be held
    3-9  between a husband and his wife jointly with the interest of either
   3-10  spouse who dies to survive to the surviving spouse is surrendered
   3-11  with the application for certificate of title.  This agreement is
   3-12  valid only if signed by both husband and wife and, if signed, the
   3-13  certificate shall be issued in the name of both.>
   3-14              <(k)>  If the motor vehicle is equipped with an
   3-15  odometer, the number of miles the motor vehicle has travelled as
   3-16  reflected by the application.
   3-17        Sec. 35.  When the ownership of a motor vehicle registered or
   3-18  licensed within this State is transferred by operation of law, as
   3-19  upon inheritance, devise or bequest, bankruptcy, receivership,
   3-20  judicial sale, or any other involuntary divestiture of ownership,
   3-21  the Department shall issue a new certificate of title upon being
   3-22  provided with a certified copy of the order appointing a temporary
   3-23  administrator or of the probate proceedings, or letters
   3-24  testamentary or of administration, if any (if no administration is
   3-25  necessary, then upon affidavit showing such fact and all of the
   3-26  heirs at law and specification by the heirs as to in whose name the
   3-27  certificate shall issue), or order, or bill of sale from the
    4-1  officer making the judicial sale.  If the security interest or
    4-2  other lien is foreclosed in accordance with law by nonjudicial
    4-3  means, the affidavit of the secured party or other mortgagee of the
    4-4  fact of the nonjudicial foreclosure in accordance with law is
    4-5  sufficient to authorize the Department to issue a new certificate
    4-6  of title in the name of the purchaser at the foreclosure sale.  If
    4-7  the foreclosure is of a constitutional or statutory lien, the
    4-8  affidavit of the mortgagee of the fact of the creation of the lien
    4-9  and of the divestiture of title by reason thereof in accordance
   4-10  with law and proof of notice as required by Article 5504a, Revised
   4-11  Civil Statutes of Texas, 1925, are sufficient to authorize the
   4-12  Department to issue a new certificate of title in the name of the
   4-13  purchaser.  <If an agreement providing for right of survivorship is
   4-14  signed by the husband and wife, upon the death of either spouse the
   4-15  Department shall issue a new certificate of title to the surviving
   4-16  spouse upon being provided with a copy of the death certificate of
   4-17  the deceased spouse.>
   4-18        SECTION 3.  A rights of survivorship indication that was
   4-19  included by the department on a certificate of title before the
   4-20  effective date of this Act has the same effect as an indication of
   4-21  rights of survivorship included on a certificate of title under
   4-22  Section 35A, Certificate of Title Act (Article 6687-1, Vernon's
   4-23  Texas Civil Statutes), as added by this Act.  On the death of one
   4-24  of the spouses the department shall issue a new certificate of
   4-25  title as provided by Section 35A(c), Certificate of Title Act.
   4-26        SECTION 4.  This Act takes effect September 1, 1995.
   4-27        SECTION 5.  The importance of this legislation and the
    5-1  crowded condition of the calendars in both houses create an
    5-2  emergency and an imperative public necessity that the
    5-3  constitutional rule requiring bills to be read on three several
    5-4  days in each house be suspended, and this rule is hereby suspended.