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.
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