SRC-BWC H.B. 642 77(R)   BILL ANALYSIS


Senate Research Center   H.B. 642
77R9112 DWS-FBy: Flores (Shapiro)
State Affairs
4/11/2001
Engrossed


DIGEST AND PURPOSE 

Currently, when a vehicle is purchased through a loan, the Department of
Transportation (department) issues the original title to the lender or lien
holder and a duplicate, non-negotiable title to the vehicle owner.  Texas
also issues "Registration Purpose Only" titles, another type of
non-negotiable title, for vehicles registered in Texas but titled in
another state.  Other states do not issue non-negotiable titles to owners,
instead allowing purchaser to use their registration card or other
paperwork as proof of ownership.  As proposed, H.B. 642 removes the
requirement that the department issue non-negotiable titles and clarifies
that other documents may be used to prove ownership.  H.B. 642 also amends
the Transportation Code to clarify that the department may issue
registration purpose only documents and charge a fee.   

RULEMAKING AUTHORITY

Rulemaking authority is expressly granted to the Department of
Transportation in SECTION 4 (Section 501.029, Transportation Code) and
SECTION 8 of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 501.022(a), Transportation Code, to prohibit the
owner of a motor vehicle registered in this state from operating or
permitting the operation of the vehicle on a public highway until the owner
obtains a certificate of title for the vehicle or until the owner obtains
registration for the vehicle if a receipt evidencing title to the vehicle
is issued under Section 501.029(b). 

SECTION 2.  Amends Section 501.024(d), Transportation Code, to delete text
regarding an exception to the effectiveness of a title receipt after a
certain period. 

SECTION 3.  Amends Section 501.027(b), Transportation Code, to require the
Department of Transportation (department), if a lien is not disclosed on
the application, to send the certificate, rather than mark the certificate
"original" and send, by first class mail to the applicant at the address
provided on the application.  Deletes text regarding the marking of a
certificate of title "original" or "duplicate original."   

SECTION 4.  Amends Section 501.029, Transportation Code, as follows:

Sec. 501.029.  New heading:  USE OF REGISTRATION RECEIPT OR TITLE RECEIPT
TO EVIDENCE TITLE.  Authorizes a person to use a registration receipt
issued under Chapter 502 or a title receipt to evidence title to a motor
vehicle and not to transfer an interest in or establish a lien on the
vehicle.  Authorizes the department to provide by rule for the issuance of
a receipt that evidences title to a motor vehicle for registration purposes
only. Provides that the fee for application for the receipt is the fee
applicable to application for a certificate of title. 

SECTION 5.  Amends Section 501.132, Transportation Code, as follows:

 Sec. 501.132.  New heading:  DUPLICATE TITLE RECEIPT.  Makes a conforming
change. 

SECTION 6.  Amends Sections 501.134(a) and (e), Transportation Code, to
make conforming changes.   

SECTION 7.  Amends Section 502.152(a), Transportation Code, to prohibit the
department from registering or renewing the registration of a motor vehicle
for which a certificate of title is required under Chapter 501 unless the
owner presents satisfactory evidence that a certificate of title was
previously issued to the owner by the department or another jurisdiction. 

SECTION 8.  Requires the Texas Department of Transportation to adopt rules
necessary to account for abolition by this Act of duplicate original
certificates of title. 

SECTION 9.  Effective date: September 1, 2001.