By Davis of Dallas                                    H.B. No. 1534
         77R4409 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)  A person may
 2-9     use a registration receipt issued under Chapter 502 or a title
2-10     receipt [or certificate of title marked "Duplicate Original" only]
2-11     to evidence title to a motor vehicle and not to transfer an
2-12     interest in or establish a lien on the vehicle.
2-13           (b)  The department by rule may provide for the issuance of a
2-14     receipt that evidences title to a motor vehicle for registration
2-15     purposes only.  The fee for application for the receipt is the fee
2-16     applicable to application for a certificate of title.
2-17           SECTION 4. Sections 501.134(a) and (e), Transportation Code,
2-18     are amended to read as follows:
2-19           (a)  If a [an original or duplicate original] certificate of
2-20     title is lost or destroyed, the owner or lienholder disclosed on
2-21     the certificate may obtain, in the manner provided by this section
2-22     and department rule, a certified copy of the lost or destroyed
2-23     certificate of title directly from the department by applying on a
2-24     form prescribed by the department and paying a fee of $2. A fee
2-25     collected under this subsection shall be deposited to the credit of
2-26     the state highway fund and may be spent only as provided by Section
2-27     501.138.
 3-1           (e)  If the [original or duplicate original] certificate of
 3-2     title is recovered, the owner of the vehicle shall promptly
 3-3     surrender the [original or duplicate original] certificate of title
 3-4     to the department for cancellation, and the department shall
 3-5     eliminate the words "certified copy" from any certificate of title
 3-6     issued for that vehicle after that date.
 3-7           SECTION 5. The Texas Department of Transportation shall adopt
 3-8     rules necessary to account for abolition by this Act of duplicate
 3-9     original certificates of title.
3-10           SECTION 6. This Act takes effect September 1, 2001.