SRC-SEW S.B. 713 77(R)   BILL ANALYSIS


Senate Research Center   S.B. 713
77R4409 DWS-DBy: Shapiro
State Affairs
3/14/2001
As Filed


DIGEST AND PURPOSE 

Currently, when a vehicle is purchased through a loan, the Texas Department
of Transportation (TxDOT) 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 the purchaser to use a registration card or other
paperwork as proof of ownership.  As proposed, S.B. 713 removes the
Transportation Code requirement that TxDOT issue non-negotiable titles and
clarifies that other documents may be used to prove ownership.  This bill
also clarifies that TxDOT is currently authorized to issue Registration
Purpose Only documents and charge a fee. 

RULEMAKING AUTHORITY

Rulemaking authority is expressly granted to the Texas Department of
Transportation in SECTION 3 (Section 501.029, Transportation Code) and
SECTION 5 of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 501.024(d), Transportation Code, to delete
language regarding a title receipt not being effective after a certain
period unless renewed as provided by Texas Department of Transportation
(department) rules. 

SECTION 2.  Amends Section 501.027(b), Transportation Code, to delete text
regarding marking certificates of title "original" and issuing certificates
of title in duplicate.  Makes conforming changes. 

SECTION 3.  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 by rule to provide 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.  Makes a conforming
change. 

SECTION 4.  Amends Sections 501.134(a) and (e), Transportation Code, to
make conforming changes. 

SECTION 5.  Requires the department to adopt rules necessary to account for
abolition by this Act of duplicate original certificates of title. 

SECTION 6.  Effective date:  September 1, 2001.