RS H.B. 989 75(R)BILL ANALYSIS


INSURANCE
H.B. 989
By: Dutton
4-24-97
Committee Report (Unamended)



BACKGROUND 

Currently, Section 502.153, Transportation Code requires that evidence of
financial responsibility must be submitted with all applications for
registration of motor vehicles.  This requirement places a burden on the
seller of a motor vehicle to obtain the purchaser's evidence of financial
responsibility in order to transfer title to the vehicle.  The burden
creates difficulty in the perfection of the seller's lien on the vehicle,
and it further delays the payment of state sales tax on the sale of the
vehicle.  This bill proposes an exception to Section 502.153,
Transportation Code, which will eliminate the requirement of evidence of
financial responsibility when registration occurs at the time of the
transfer of title to a motor vehicle. 

PURPOSE

As proposed, H.B. 989 provides an exception to Section 502.153,
Transportation Code, which eliminates the requirement that evidence of
financial responsibility be submitted when registration occurs at the time
of the transfer of title to a motor vehicle.  

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. 

SECTION BY SECTION ANALYSIS

SECTION 1.  

Amends Section 502.153(a), Transportation Code, by creating an exception
to the requirement for the submission of evidence of financial
responsibility at time of registration of a motor vehicle. 

SECTION 2.  

Amends Section 502.153, Transportation Code, by adding a new Subsection
(i) which eliminates the requirement for evidence of financial
responsibility if registration of a motor vehicle is in connection with
the transfer of title to the motor vehicle. 

SECTION 3.  

This Act applies only to a registration occurring on or after the
effective date of this Act. 

SECTION 4.  

Emergency Clause.