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.