SRC-JBJ H.B. 2409 76(R)   BILL ANALYSIS


Senate Research Center   H.B. 2409
76R11118 DRH-FBy: King, Tracy (Bernsen)
State Affairs
5/13/1999
Engrossed


DIGEST 

Currently, a person cannot receive the certificate of title to a motor
vehicle unless the vehicle is registered and the person can show proof of
liability insurance. This can cause problems for people who want to buy old
vehicles to restore, or have vehicles for use only on their farm or ranch.
They cannot receive a certificate of title even though the vehicle may
never be driven or only driven on a farm or ranch.  H.B. 2409 requires the
Texas Department of Transportation (department) to issue a certificate of
title for an unregistered vehicle that complies with other requirements for
issuance of a certificate unless the vehicle is unregistered because the
registration has been suspended or revoked.  This bill also also prevents
the department from refusing to issue a certificate of title for a motor
vehicle for which the applicant does not provide evidence of financial
responsibility. 

PURPOSE

As proposed, H.B. 2409 amends regulations regarding the issuance of a
certificate of title for and the transfer of a motor vehicle that is not
registered in this state. 

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 501.021(a), Transportation Code, to make a
conforming change. 

SECTION 2.  Amends Section 501.0234(a), Transportation Code, to make
conforming changes. 

SECTION 3.   Amends Subchapter B, Chapter 501, Transportation Code, by
adding Section 501.0275, as follows: 

Sec. 501.0275.  ISSUANCE OF TITLE FOR UNREGISTERED VEHICLE.  Prohibits the
Texas Department of Transportation (department) from issuing a certificate
of title for an unregistered vehicle that complies with other requirements
for issuance of a certificate, unless the vehicle is unregistered because
the registration has been suspended or revoked, or for which the applicant
does not provide evidence of financial responsibility that complies with
Section 502.153 (Evidence of Financial Responsibility).  Provides that an
applicant for a certificate of title under this section must surrender any
license plates issued for the motor vehicle and any registration insignia
for validation of those plates to the department. 

SECTION 4.  Amends Section 520.022(a), Transportation Code, to make a
conforming change. 

SECTION 5.  Amends Sections 520.031(a) and (b), Transportation Code, to
make conforming changes. 

SECTION 6.  Effective date: September 1, 1999.

SECTION 7.  Emergency clause.