By Flores H.B. No. 642
77R2417 DWS-D
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 501.024(d), Transportation Code, is
1-5 amended to read as follows:
1-6 (d) A title receipt authorizes the operation of the motor
1-7 vehicle on a public highway in this state for 10 days or until the
1-8 certificate of title is issued, whichever period is shorter.
1-9 [After that period, the receipt is not effective for any purpose,
1-10 unless the receipt is renewed as provided by department rules.]
1-11 SECTION 2. Section 501.027(b), Transportation Code, is
1-12 amended to read as follows:
1-13 (b) Not later than the fifth day after the date the
1-14 department receives an application for a certificate of title and
1-15 the department determines the requirements of this chapter are met,
1-16 the department shall issue the certificate of title. If a lien is
1-17 not disclosed on the application, the department shall [mark the
1-18 certificate "original" and] send the certificate [it] by first
1-19 class mail to the applicant at the address provided on the
1-20 application. If a lien is disclosed on the application, the
1-21 department shall[:]
1-22 [(1) issue the certificate of title in duplicate;]
1-23 [(2) mark one certificate of title "original" and]
1-24 send the certificate [it] by first class mail to the first
2-1 lienholder as disclosed on the application[; and]
2-2 [(3) mark the second certificate of title "duplicate
2-3 original" and send it by first class mail to the applicant at the
2-4 address provided on the application].
2-5 SECTION 3. Section 501.029, Transportation Code, is amended
2-6 to read as follows:
2-7 Sec. 501.029. USE OF REGISTRATION RECEIPT OR [DUPLICATE]
2-8 TITLE RECEIPT TO EVIDENCE TITLE [OR CERTIFICATE]. A person may use
2-9 a registration receipt issued under Chapter 502 or a title receipt
2-10 [or certificate of title marked "Duplicate Original" only] to
2-11 evidence title to a motor vehicle and not to transfer an interest
2-12 in or establish a lien on the vehicle.
2-13 SECTION 4. Subchapter B, Chapter 501, Transportation Code, is
2-14 amended by adding Section 501.0301 to read as follows:
2-15 Sec. 501.0301. REGISTRATION ONLY TITLE. (a) The department
2-16 by rule may provide for the issuance of a title valid for
2-17 registration purposes only.
2-18 (b) The fee for application for a registration only title is
2-19 the fee applicable to application for a certificate of title.
2-20 SECTION 5. Sections 501.134(a) and (e), Transportation Code,
2-21 are amended to read as follows:
2-22 (a) If a [an original or duplicate original] certificate of
2-23 title is lost or destroyed, the owner or lienholder disclosed on
2-24 the certificate may obtain, in the manner provided by this section
2-25 and department rule, a certified copy of the lost or destroyed
2-26 certificate of title directly from the department by applying on a
2-27 form prescribed by the department and paying a fee of $2. A fee
3-1 collected under this subsection shall be deposited to the credit of
3-2 the state highway fund and may be spent only as provided by Section
3-3 501.138.
3-4 (e) If the [original or duplicate original] certificate of
3-5 title is recovered, the owner of the vehicle shall promptly
3-6 surrender the [original or duplicate original] certificate of title
3-7 to the department for cancellation, and the department shall
3-8 eliminate the words "certified copy" from any certificate of title
3-9 issued for that vehicle after that date.
3-10 SECTION 6. The Texas Department of Transportation shall adopt
3-11 rules necessary to account for abolition by this Act of duplicate
3-12 original certificates of title.
3-13 SECTION 7. This Act takes effect September 1, 2001.