1-1     By:  King of Uvalde, Pickett                          H.B. No. 2409
 1-2          (Senate Sponsor - Bernsen)
 1-3           (In the Senate - Received from the House May 5, 1999;
 1-4     May 6, 1999, read first time and referred to Committee on State
 1-5     Affairs; May 14, 1999, reported favorably by the following vote:
 1-6     Yeas 8, Nays 0; May 14, 1999, sent to printer.)
 1-7                            A BILL TO BE ENTITLED
 1-8                                   AN ACT
 1-9     relating to the issuance of a certificate of title for and the
1-10     transfer of a motor vehicle that is not registered in this state.
1-11           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12           SECTION 1.  Section 501.021(a), Transportation Code, is
1-13     amended to read as follows:
1-14           (a)  A motor vehicle certificate of title is an instrument
1-15     issued by the department that includes:
1-16                 (1)  the name and address of the purchaser and seller
1-17     at the first sale or the transferee and transferor at a subsequent
1-18     sale;
1-19                 (2)  the make of the motor vehicle;
1-20                 (3)  the body type of the vehicle;
1-21                 (4)  the manufacturer's permanent vehicle
1-22     identification number of the vehicle or the vehicle's motor number
1-23     if the vehicle was manufactured before the date that stamping a
1-24     permanent identification number on a motor vehicle was universally
1-25     adopted;
1-26                 (5)  the serial number for the vehicle;
1-27                 (6)  the number on the vehicle's current Texas license
1-28     plates, if any;
1-29                 (7)  a statement:
1-30                       (A)  that no lien on the vehicle is recorded; or
1-31                       (B)  of the name and address of each lienholder
1-32     and the date of each lien on the vehicle, listed in the
1-33     chronological order in which the lien was recorded;
1-34                 (8)  a space for the signature of the owner of the
1-35     vehicle;
1-36                 (9)  a statement indicating rights of survivorship
1-37     under Section 501.031;
1-38                 (10)  if the vehicle has an odometer, the odometer
1-39     reading indicated by the application for the certificate of title;
1-40     and
1-41                 (11)  any other information required by the department.
1-42           SECTION 2.  Section 501.0234(a), Transportation Code, is
1-43     amended to read as follows:
1-44           (a)  A person who sells at the first or a subsequent sale a
1-45     motor vehicle and who holds a general distinguishing number issued
1-46     under Chapter 503 or the Texas Motor Vehicle Commission Code
1-47     (Article 4413(36), Vernon's Texas Civil Statutes) shall:
1-48                 (1)  in the time and manner provided by law, apply, in
1-49     the name of the purchaser of the vehicle, for the registration of
1-50     the vehicle, if the vehicle is to be registered, and a certificate
1-51     of title for the vehicle and file with the appropriate designated
1-52     agent each document necessary to transfer title to or [and]
1-53     register the vehicle; and at the same time
1-54                 (2)  remit any required motor vehicle sales tax.
1-55           SECTION 3.  Subchapter B, Chapter 501, Transportation Code,
1-56     is amended by adding Section 501.0275 to read as follows:
1-57           Sec. 501.0275.  ISSUANCE OF TITLE FOR UNREGISTERED VEHICLE.
1-58     (a)  The department shall issue a certificate of title for a motor
1-59     vehicle that complies with the other requirements for issuance of a
1-60     certificate of title under this chapter except that:
1-61                 (1)  the vehicle is not registered for a reason other
1-62     than a reason provided by Section 501.051(6); and
1-63                 (2)  the applicant does not provide evidence of
1-64     financial responsibility that complies with Section 502.153.
 2-1           (b)  On application for a certificate of title under this
 2-2     section, the applicant must surrender any license plates issued for
 2-3     the motor vehicle and any registration insignia for validation of
 2-4     those plates to the department.
 2-5           SECTION 4.  Section 520.022(a), Transportation Code, is
 2-6     amended to read as follows:
 2-7           (a)  A person, whether acting for that person or another, who
 2-8     sells, trades, or otherwise transfers a used motor vehicle shall
 2-9     deliver to the transferee at the time of delivery of the vehicle:
2-10                 (1)  the license receipt issued by the department for
2-11     registration of the vehicle, if the vehicle was required to be
2-12     registered at the time of the delivery; and
2-13                 (2)  a properly assigned certificate of title or other
2-14     evidence of title as required under Chapter 501.
2-15           SECTION 5.  Sections 520.031(a) and (b), Transportation Code,
2-16     are amended to read as follows:
2-17           (a)  Not later than the 20th working day after the date of
2-18     receiving the documents under Section 520.022, the transferee of
2-19     the used motor vehicle shall file with the county
2-20     assessor-collector each document received under that section [the
2-21     license receipt and the certificate of title or other evidence of
2-22     title].
2-23           (b)  The filing under Subsection (a) is an application for
2-24     transfer of title as required under Chapter 501 and, if the license
2-25     receipt is filed, an application for transfer of the registration
2-26     of the motor vehicle.
2-27           SECTION 6.  This Act takes effect September 1, 1999.
2-28           SECTION 7.  The importance of this legislation and the
2-29     crowded condition of the calendars in both houses create an
2-30     emergency and an imperative public necessity that the
2-31     constitutional rule requiring bills to be read on three several
2-32     days in each house be suspended, and this rule is hereby suspended.
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