By Hamric                                             H.B. No. 2578
         Line and page numbers may not match official copy.
         Bill not drafted by TLC or Senate E&E.
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the registration and issuance of a certificate of title
 1-3     to certain vehicles and the circumstances under which a person may
 1-4     legally operate a vehicle pending registration of the vehicle.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1.  Section, 501.051, Transportation Code, is amended
 1-7     to read as follows:
 1-8           Section 501.051.  Grounds for Refusal to Issue or for
 1-9     Revocation or Suspension of Certificate.  (a)  The department shall
1-10     refuse to issue a certificate of title or shall suspend or revoke a
1-11     certificate of title if:
1-12                 (1)  the application for the certificate contains a
1-13     false or fraudulent statement;
1-14                 (2)  the applicant failed to furnish required
1-15     information requested by the department;
1-16                 (3)  the applicant is not entitled to a certificate of
1-17     title;
1-18                 (4)  the department has reason to believe that the
1-19     motor vehicle is stolen;
1-20                 (5)  the department has reason to believe that the
1-21     issuance of a certificate of title would defraud the owner or a
 2-1     lienholder of the motor vehicle;
 2-2                 (6)  the registration for the motor vehicle is
 2-3     suspended or revoked; or
 2-4                 (7)  the required fee has not been paid.
 2-5           (b)  Failure to comply with Section 502.153 of this code is
 2-6     not grounds for refusal to issue a certificate of title.
 2-7           SECTION 2.  Subsection 502.153, Transportation Code, is
 2-8     amended by adding Subsection (j) to read as follows:
 2-9           (j)  This section does not prohibit the issuance of a
2-10     certificate of title to a vehicle to a person who is otherwise
2-11     entitled to obtain a certificate of title to the vehicle as
2-12     provided by Chapter 501.
2-13           SECTION 3.  Subsection (f), Section 503.063, Transportation
2-14     Code, is amended to read as follows:
2-15           (f)  Except as provided by this subsection, a [A] dealer may
2-16     not issue an additional temporary cardboard buyer's tag to a person
2-17     after the expiration of 21 days after the issue of a temporary
2-18     cardboard buyer's tag.  An additional temporary cardboard buyer's
2-19     tag issued under the terms of this subsection is valid for a
2-20     maximum of 21 days after the date of issue.  A dealer may issue an
2-21     additional temporary cardboard buyer's tag to a person, and the
2-22     person may operate the vehicle for which the tag was issued on the
2-23     additional temporary cardboard buyer's tag if the dealer has been
2-24     unable to obtain on behalf of the vehicle's owner the necessary
2-25     documents to obtain permanent metal license plates because:
 3-1                 (1)  necessary [the] documents are in the possession of
 3-2     a lienholder who has not complied with the terms of Section
 3-3     501.115(a) of this code; or
 3-4                 (2)  the purchaser has failed to comply with the terms
 3-5     of Section 502.153 of this code.  [An additional tag issued under
 3-6     the terms of this subsection is valid for a maximum of 21 days
 3-7     after the date of issue.]
 3-8           SECTION 4.  The importance of this legislation and the
 3-9     crowded condition of the calendars in both houses create an
3-10     emergency and an imperative public necessity that the
3-11     constitutional rule requiring bills to be read on three several
3-12     days in each house be suspended, and this rule is hereby suspended,
3-13     and that this Act take effect and be in force from and after its
3-14     passage, and it is so enacted.