1-1 By: Flores, Davis of Dallas H.B. No. 642
1-2 (Senate Sponsor - Shapiro)
1-3 (In the Senate - Received from the House April 5, 2001;
1-4 April 9, 2001, read first time and referred to Committee on State
1-5 Affairs; April 20, 2001, reported favorably by the following vote:
1-6 Yeas 9, Nays 0; April 20, 2001, sent to printer.)
1-7 A BILL TO BE ENTITLED
1-8 AN ACT
1-9 relating to documentation of motor vehicle ownership.
1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11 SECTION 1. Section 501.022(a), Transportation Code, is
1-12 amended to read as follows:
1-13 (a) The owner of a motor vehicle registered in this state
1-14 may not operate or permit the operation of the vehicle on a public
1-15 highway until the owner obtains a certificate of title for the
1-16 vehicle or until the owner obtains registration for the vehicle if
1-17 a receipt evidencing title to the vehicle is issued under Section
1-18 501.029(b).
1-19 SECTION 2. Section 501.024(d), Transportation Code, is
1-20 amended to read as follows:
1-21 (d) A title receipt authorizes the operation of the motor
1-22 vehicle on a public highway in this state for 10 days or until the
1-23 certificate of title is issued, whichever period is shorter.
1-24 [After that period, the receipt is not effective for any purpose,
1-25 unless the receipt is renewed as provided by department rules.]
1-26 SECTION 3. Section 501.027(b), Transportation Code, is
1-27 amended to read as follows:
1-28 (b) Not later than the fifth day after the date the
1-29 department receives an application for a certificate of title and
1-30 the department determines the requirements of this chapter are met,
1-31 the department shall issue the certificate of title. If a lien is
1-32 not disclosed on the application, the department shall [mark the
1-33 certificate "original" and] send the certificate [it] by first
1-34 class mail to the applicant at the address provided on the
1-35 application. If a lien is disclosed on the application, the
1-36 department shall[:]
1-37 [(1) issue the certificate of title in duplicate;]
1-38 [(2) mark one certificate of title "original" and]
1-39 send the certificate [it] by first class mail to the first
1-40 lienholder as disclosed on the application[; and]
1-41 [(3) mark the second certificate of title "duplicate
1-42 original" and send it by first class mail to the applicant at the
1-43 address provided on the application].
1-44 SECTION 4. Section 501.029, Transportation Code, is amended
1-45 to read as follows:
1-46 Sec. 501.029. USE OF REGISTRATION RECEIPT OR [DUPLICATE]
1-47 TITLE RECEIPT TO EVIDENCE TITLE [OR CERTIFICATE]. (a) A person
1-48 may use a registration receipt issued under Chapter 502 or a title
1-49 receipt [or certificate of title marked "Duplicate Original" only]
1-50 to evidence title to a motor vehicle and not to transfer an
1-51 interest in or establish a lien on the vehicle.
1-52 (b) The department by rule may provide for the issuance of a
1-53 receipt that evidences title to a motor vehicle for registration
1-54 purposes only. The fee for application for the receipt is the fee
1-55 applicable to application for a certificate of title.
1-56 SECTION 5. Section 501.132, Transportation Code, is amended
1-57 to read as follows:
1-58 Sec. 501.132. DUPLICATE TITLE RECEIPT [OR CERTIFICATE].
1-59 Except as otherwise provided by department rule, the department may
1-60 not issue a duplicate title receipt [or duplicate certificate of
1-61 title] unless the original title receipt or certificate of title is
1-62 surrendered.
1-63 SECTION 6. Sections 501.134(a) and (e), Transportation Code,
1-64 are amended to read as follows:
2-1 (a) If a [an original or duplicate original] certificate of
2-2 title is lost or destroyed, the owner or lienholder disclosed on
2-3 the certificate may obtain, in the manner provided by this section
2-4 and department rule, a certified copy of the lost or destroyed
2-5 certificate of title directly from the department by applying on a
2-6 form prescribed by the department and paying a fee of $2. A fee
2-7 collected under this subsection shall be deposited to the credit of
2-8 the state highway fund and may be spent only as provided by Section
2-9 501.138.
2-10 (e) If the [original or duplicate original] certificate of
2-11 title is recovered, the owner of the vehicle shall promptly
2-12 surrender the [original or duplicate original] certificate of title
2-13 to the department for cancellation, and the department shall
2-14 eliminate the words "certified copy" from any certificate of title
2-15 issued for that vehicle after that date.
2-16 SECTION 7. Section 502.152(a), Transportation Code, is
2-17 amended to read as follows:
2-18 (a) The department may not register or renew the
2-19 registration of a motor vehicle for which a certificate of title is
2-20 required under Chapter 501 unless the owner:
2-21 (1) obtains a certificate of title for the vehicle; or
2-22 (2) presents satisfactory evidence that a certificate
2-23 of title was previously issued to the owner by the department or
2-24 another jurisdiction.
2-25 SECTION 8. The Texas Department of Transportation shall adopt
2-26 rules necessary to account for abolition by this Act of duplicate
2-27 original certificates of title.
2-28 SECTION 9. This Act takes effect September 1, 2001.
2-29 * * * * *