HBA-NMO, RAR H.B. 381 76(R)BILL ANALYSIS Office of House Bill AnalysisH.B. 381 By: Flores, K. Business & Industry 7/27/1999 Enrolled BACKGROUND AND PURPOSE Prior to the 76th Legislature, state law restricted the execution of a survivorship agreement on a title document for a motor vehicle or manufactured home to a husband and wife. By allowing only a husband and wife to pass on the title of a motor vehicle or manufactured home to each other, problems may have arisen, for example, in the passing of a motor vehicle or a manufactured home from a widow to the widow's child. H.B. 381 provides that a survivorship agreement on a title document for a motor vehicle or manufactured home be signed by two or more eligible persons, rather than a husband and wife. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 501.031, Transportation Code, by amending Subsections (a) and (b), creating a new Subsection (c), redesignating existing Subsection (c) as Subsection (d), and adding Subsections (e)-(g), as follows: Sec. 501.031. RIGHTS OF SURVIVORSHIP AGREEMENT. (a) Provides that a survivorship agreement on a motor vehicle certificate of title be signed by two or more eligible persons, rather than by a husband and wife. Makes conforming changes. (b) Authorizes that the certificate of title, if the vehicle is registered in the name of one or more of the persons who signed the agreement, contain a rights of survivorship agreement signed by all the persons, or remark if a rights of survivorship agreement is surrendered with the application for the certificate of title or otherwise on file with the Texas Department of Transportation (department). Makes conforming changes. (c) Created from existing language in Subsection (b). Authorizes the transfer of the ownership of the vehicle, except as provided in Subsection (g), only by all the persons acting jointly if all the persons are alive, and on the death of one of the persons by the surviving person or persons by transferring the certificate of title, in the manner otherwise required by law for transfer of ownership of a vehicle, with a copy of the death certificate of the deceased person attached to the certificate of the title application, rather than the title. Deletes language regarding the issuance of new certificates of title. Makes conforming changes. (d) Redesignated from existing Subsection (c). Makes conforming changes. (e) Provides that a person is eligible to sign a rights of survivorship agreement under this section if the person is married and the spouse of the signing person is the only other party to the agreement, is unmarried and attests to that unmarried status by affidavit; or is married and provides the department with the affidavit from the signing person's spouse that attests that the signing person's interest in the vehicle is the signing person's separate property. (f) Provides that the seller, if the title is being issued in connection with the sale of a vehicle, is not eligible to sign a rights of survivorship agreement under this section unless the seller is the child, grandchild, parent, grandparent, brother, or sister of each other person signing the agreement. Authorizes that a family relationship required by this subsection be a relationship established by adoption. (g) Requires the department, if an agreement, other than an agreement provided for in Subsection (a), providing for right of survivorship is signed by two or more persons, to issue a new certificate of title to the surviving person or persons upon application accompanied by a copy of the death certificate of the deceased person. Authorizes the department to develop for public use under this subsection an optional rights of survivorship agreement form. SECTION 2. Amends Section 19(a)(2), Article 5221f, V.T.C.S. (Texas Manufactured Housing Standards Act), to provide that a survivorship agreement on a manufactured home title document be signed by two or more eligible persons as determined by Subsections (x) and (y) of this section, rather than a husband and wife. Makes conforming changes. SECTION 3. Amends Section 19, Article 5221f, V.T.C.S. (Texas Manufactured Housing Standards Act), by amending Subsection (h) to make conforming changes, and by adding Subsections (x) and (y), as follows: (x) Provides that a person is eligible to sign a rights of survivorship agreement under this section if the person is married and the spouse of the signing person is the only other party to the agreement, is unmarried and attests to that unmarried status by affidavit; or is married and provides the department with the affidavit from the signing person's spouse that attests that the signing person's interest in the manufactured home is the signing person's separate property. (y) Provides that the seller, if the title is being issued in connection with the sale of a manufactured home, is not eligible to sign a rights of survivorship agreement under this section unless the seller is the child, grandchild, parent, grandparent, brother, or sister of each other person signing the agreement. Authorizes that a family relationship required by this subsection be a relationship established by adoption. SECTION 4. Effective date: September 1, 1999. SECTION 5. Emergency clause.