SRC-TNM H.B. 1137 75(R)   BILL ANALYSIS


Senate Research Center   H.B. 1137
By: Uher (Brown)
State Affairs
4-27-97
Engrossed


DIGEST 

Currently, because of the frequency of turnover in ownership of financial
institutions, many lien records are moved from institution to institution
and become more difficult to locate.  Therefore, current law requires a
motor vehicle lienholder to pay to have the lien added to the Texas
Department of Transportation's (TXDOT) records.  Upon the demand of the
owner, the lienholder discharges the retired lien and forwards the title
to the owner.  However, the TXDOT records continue to reflect the lien
until a records management fee is paid by the owner.  H.B. 1137 would
facilitate the orderly and timely transfer of a title to a motor vehicle
when a lien against the motor vehicle has been discharged. 
 
PURPOSE

As proposed, H.B. 1137 outlines provisions regarding the discharge of a
lien on a motor vehicle and the subsequent sale of or issuance of
temporary tags for the vehicle. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 501.115(a), Transportation Code, to require a
lienholder, within a reasonable time not to exceed 21 days from receipt of
the final payment, rather than on the demand of the owner, to execute and
deliver to the owner, or the owner's designee, a discharge of the lien.
Makes a nonsubstantive change. 

SECTION 2. Amends Section 501.152, Transportation Code, to set forth
instances in which a person commits an offense, except as provided by this
section.  Provides that it is not a violation of this section for the
beneficial owner of a vehicle to sell or offer to sell a vehicle without
having possession of the certificate of title to the vehicle if the sole
reason he or she does not have possession of the certificate of title is
that the title is in the possession of a lienholder who has not complied
with the terms of Section 501.115(a) of this code. 

SECTION 3. Amends Section 503.063, Transportation Code, by amending
Subsections (a) and (b) and adding Subsection (f), to outline provisions
regarding the issuance of an temporary buyer's tag. Makes conforming
changes. 

SECTION 4. Emergency clause.
  Effective date: upon passage.