SRC-MKV H.B. 2217 77(R)   BILL ANALYSIS


Senate Research Center   H.B. 2217
77R7647 JD-FBy: Hawley (Fraser)
Natural Resources
5/2/2001
Engrossed


DIGEST AND PURPOSE 

Currently, the Certificate of Title Act does not apply to a semitrailer
used for the purpose of transporting farm products if the products are not
transported for hire. This means that a title is not required to be issued
for a farm semitrailer unless the semitrailer is over 4,000 pounds gross
vehicle weight. If the owner of such a farm semitrailer applies for a title
under the current law, a commercial license plate must be issued for the
farm semitrailer for the owner to obtain the title. If a purchaser borrows
money to purchase a semitrailer, the lending institution requires a title
to be issued so that a first lien can be recorded on the title. Upon
application to a county tax assessor-collector for a title and
registration, the applicant is sold commercial registration plates which
cost approximately $175 to $300 depending on the gross weight of the
vehicle. Allowing the owner of a semitrailer to register the semitrailer
with a farm vehicle license plate would reduce the fee for the issuance of
the plate to $5.30. H.B. 2217 allows a county tax assessorcollector to
issue title to a farm semitrailer of more than 4,000 pounds and to register
that semitrailer with a farm vehicle license plate.  

RULEMAKING AUTHORITY

Rulemaking authority is expressly granted to the Texas Department of
Transportation in SECTION 1 (Section 501.036, Transportation Code) of this
bill. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Chapter 501B, Transportation Code, by adding Section
501.036, as follows: 

Sec. 501.036.  CERTIFICATE OF TITLE FOR FARM SEMITRAILER.  (a) Authorizes
the Texas Department of Transportation (department), notwithstanding any
other provision of this chapter, to issue a certificate of title for a farm
semitrailer with a gross weight of more than 4,000 pounds under certain
conditions. 

(b) Requires the owner of the farm semitrailer to take certain actions to
obtain a certificate of title under this section. 

(c) Requires the department to adopt rules and forms to implement and
administer this section. 

SECTION 2.  Effective date: September 1, 2001.