By Flores, Davis of Dallas                             H.B. No. 642
         77R9112 DWS-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to documentation of motor vehicle ownership.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Section 501.022(a), Transportation Code, is
 1-5     amended to read as follows:
 1-6           (a)  The owner of a motor vehicle registered in this state
 1-7     may not operate or permit the operation of the vehicle on a public
 1-8     highway until the owner obtains a certificate of title for the
 1-9     vehicle or until the owner obtains registration for the vehicle if
1-10     a receipt evidencing title to the vehicle is issued under Section
1-11     501.029(b).
1-12           SECTION 2. Section 501.024(d), Transportation Code, is
1-13     amended to read as follows:
1-14           (d)  A title receipt authorizes the operation of the motor
1-15     vehicle on a public highway in this state for 10 days or until the
1-16     certificate of title is issued, whichever period is shorter.
1-17     [After that period, the receipt is not effective for any purpose,
1-18     unless the receipt is renewed as provided by department rules.]
1-19           SECTION 3. Section 501.027(b), Transportation Code, is
1-20     amended to read as follows:
1-21           (b)  Not later than the fifth day after the date the
1-22     department receives an application for a certificate of title and
1-23     the department determines the requirements of this chapter are met,
1-24     the department shall issue the certificate of title.  If a lien is
 2-1     not disclosed on the application, the department shall [mark the
 2-2     certificate "original" and] send the certificate [it] by first
 2-3     class mail to the applicant at the address provided on the
 2-4     application.  If a lien is disclosed on the application, the
 2-5     department shall[:]
 2-6                 [(1)  issue the certificate of title in duplicate;]
 2-7                 [(2)  mark one certificate of title "original" and]
 2-8     send the certificate [it] by first class mail to the first
 2-9     lienholder as disclosed on the application[; and]
2-10                 [(3)  mark the second certificate of title "duplicate
2-11     original" and send it by first class mail to the applicant at the
2-12     address provided on the application].
2-13           SECTION 4. Section 501.029, Transportation Code, is amended
2-14     to read as follows:
2-15           Sec. 501.029.  USE OF REGISTRATION RECEIPT OR [DUPLICATE]
2-16     TITLE RECEIPT TO EVIDENCE TITLE [OR CERTIFICATE].  (a)  A person
2-17     may use a registration receipt issued under Chapter 502 or a title
2-18     receipt [or certificate of title marked "Duplicate Original" only]
2-19     to evidence title to a motor vehicle and not to transfer an
2-20     interest in or establish a lien on the vehicle.
2-21           (b)  The department by rule may provide for the issuance of a
2-22     receipt that evidences title to a motor vehicle for registration
2-23     purposes only. The fee for application for the receipt is the fee
2-24     applicable to application for a certificate of title.
2-25           SECTION 5. Section 501.132, Transportation Code, is amended
2-26     to read as follows:
2-27           Sec. 501.132.  DUPLICATE TITLE RECEIPT [OR CERTIFICATE].
 3-1     Except as otherwise provided by department rule, the department may
 3-2     not issue a duplicate title receipt [or duplicate certificate of
 3-3     title] unless the original title receipt or certificate of title is
 3-4     surrendered.
 3-5           SECTION 6. Sections 501.134(a) and (e), Transportation Code,
 3-6     are amended to read as follows:
 3-7           (a)  If a [an original or duplicate original] certificate of
 3-8     title is lost or destroyed, the owner or lienholder disclosed on
 3-9     the certificate may obtain, in the manner provided by this section
3-10     and department rule, a certified copy of the lost or destroyed
3-11     certificate of title directly from the department by applying on a
3-12     form prescribed by the department and paying a fee of $2. A fee
3-13     collected under this subsection shall be deposited to the credit of
3-14     the state highway fund and may be spent only as provided by Section
3-15     501.138.
3-16           (e)  If the [original or duplicate original] certificate of
3-17     title is recovered, the owner of the vehicle shall promptly
3-18     surrender the [original or duplicate original] certificate of title
3-19     to the department for cancellation, and the department shall
3-20     eliminate the words "certified copy" from any certificate of title
3-21     issued for that vehicle after that date.
3-22           SECTION 7. Section 502.152(a), Transportation Code, is
3-23     amended to read as follows:
3-24           (a)  The department may not register or renew the
3-25     registration of a motor vehicle for which a certificate of title is
3-26     required under Chapter 501 unless the owner:
3-27                 (1)  obtains a certificate of title for the vehicle; or
 4-1                 (2)  presents satisfactory evidence that a certificate
 4-2     of title was previously issued to the owner by the department or
 4-3     another jurisdiction.
 4-4           SECTION 8. The Texas Department of Transportation shall adopt
 4-5     rules necessary to account for abolition by this Act of duplicate
 4-6     original certificates of title.
 4-7           SECTION 9. This Act takes effect September 1, 2001.