By Marchant H.B. No. 2930
77R6733 DWS-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to use of electronic documents in connection with vehicle
1-3 titles.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 501.002(9), Transportation Code, is
1-6 amended to read as follows:
1-7 (9) "Lien" means:
1-8 (A) a lien provided for by the constitution or
1-9 statute in a motor vehicle; [or]
1-10 (B) a security interest, as defined by Section
1-11 1.201, Business & Commerce Code, in a motor vehicle, other than an
1-12 absolute title, created by any written security agreement, as
1-13 defined by Section 9.102, Business & Commerce Code, including a
1-14 lease, conditional sales contract, deed of trust, chattel mortgage,
1-15 trust receipt, or reservation of title; or
1-16 (C) an electronic lien provided for by this
1-17 chapter.
1-18 SECTION 2. Section 501.021, Transportation Code, is amended
1-19 to read as follows:
1-20 Sec. 501.021. CERTIFICATE OF TITLE. (a) A motor vehicle
1-21 certificate of title is an electronic or paper instrument issued by
1-22 the department that includes:
1-23 (1) the name and address of the purchaser and seller
1-24 at the first sale or the transferee and transferor at a subsequent
2-1 sale;
2-2 (2) the make of the motor vehicle;
2-3 (3) the body type of the vehicle;
2-4 (4) the manufacturer's permanent vehicle
2-5 identification number of the vehicle or the vehicle's motor number
2-6 if the vehicle was manufactured before the date that stamping a
2-7 permanent identification number on a motor vehicle was universally
2-8 adopted;
2-9 (5) the serial number for the vehicle;
2-10 (6) the number on the vehicle's current Texas license
2-11 plates, if any;
2-12 (7) a statement:
2-13 (A) that no lien on the vehicle is recorded; or
2-14 (B) of the name and address of each lienholder
2-15 and the date of each lien on the vehicle, listed in the
2-16 chronological order in which the lien was recorded;
2-17 (8) a space for, or method for implementing
2-18 electronically, the signature of the owner of the vehicle;
2-19 (9) a statement indicating rights of survivorship
2-20 under Section 501.031;
2-21 (10) if the vehicle has an odometer, the odometer
2-22 reading indicated by the application for the certificate of title;
2-23 and
2-24 (11) any other information required by the department.
2-25 (b) A paper certificate of title must bear the following
2-26 statement on its face:
2-27 "UNLESS OTHERWISE AUTHORIZED BY LAW, IT IS A VIOLATION OF
3-1 STATE LAW TO SIGN THE NAME OF ANOTHER PERSON ON A CERTIFICATE OF
3-2 TITLE OR OTHERWISE GIVE FALSE INFORMATION ON A CERTIFICATE OF
3-3 TITLE."
3-4 SECTION 3. Subchapter B, Chapter 501, Transportation Code, is
3-5 amended by adding Section 501.0211 to read as follows:
3-6 Sec. 501.0211. AGREEMENT FOR ELECTRONIC DOCUMENT INSTEAD OF
3-7 WRITTEN DOCUMENT. (a) If this subtitle requires the department to
3-8 deliver a written certificate or other document to an owner,
3-9 registrant, licensee, lienholder, or other person, the department
3-10 and the person may agree that the department may provide the
3-11 document by electronic means. The department is not required to
3-12 produce a paper document for a document subject to the agreement
3-13 unless subsequently requested to do so by the other party to the
3-14 agreement.
3-15 (b) The electronic document may include all the information
3-16 included on the corresponding paper document or may be an abstract
3-17 or listing of the information held in electronic form by the
3-18 department.
3-19 (c) The department may not require a person to accept an
3-20 electronic certificate or other document.
3-21 SECTION 4. Section 501.023, Transportation Code, is amended
3-22 by amending Subsection (a) and adding Subsection (d) to read as
3-23 follows:
3-24 (a) Except as provided by Subsection (d), the [The] owner of
3-25 a motor vehicle must apply for a certificate of title:
3-26 (1) to the county assessor-collector in the county in
3-27 which:
4-1 (A) the owner is domiciled; or
4-2 (B) the motor vehicle is purchased or
4-3 encumbered; and
4-4 (2) on a form or in the electronic format prescribed
4-5 by the department.
4-6 (d) An application for an electronic certificate of title
4-7 must be submitted to the department.
4-8 SECTION 5. Section 501.0234(a), Transportation Code, is
4-9 amended to read as follows:
4-10 (a) A person who sells at the first or a subsequent sale a
4-11 motor vehicle and who holds a general distinguishing number issued
4-12 under Chapter 503 or the Texas Motor Vehicle Commission Code
4-13 (Article 4413(36), Vernon's Texas Civil Statutes) shall:
4-14 (1) in the time and manner provided by law, apply, in
4-15 the name of the purchaser of the vehicle, for the registration of
4-16 the vehicle, if the vehicle is to be registered, and a certificate
4-17 of title for the vehicle and file with the appropriate designated
4-18 agent or, if applicable, the department, each document necessary to
4-19 transfer title to or register the vehicle; and at the same time
4-20 (2) remit any required motor vehicle sales tax.
4-21 SECTION 6. Section 501.024, Transportation Code, is amended
4-22 by adding Subsection (e) to read as follows:
4-23 (e) Notwithstanding any other law, if the department
4-24 receives the application electronically, the department shall
4-25 provide an electronic original receipt to the applicant or the
4-26 first lienholder disclosed on the application, unless the applicant
4-27 or lienholder requests in writing the issuance of a paper original
5-1 receipt. The department shall issue a duplicate original receipt as
5-2 provided by Subsection (c)(2). The department may adopt rules for
5-3 electronic titling procedures as necessary to achieve the purposes
5-4 of this chapter.
5-5 SECTION 7. Section 501.025, Transportation Code, is amended
5-6 to read as follows:
5-7 Sec. 501.025. TITLE RECEIPT REQUIRED ON FIRST SALE;
5-8 MANUFACTURER'S CERTIFICATE. (a) A county assessor-collector may
5-9 not issue a title receipt on the first sale of a motor vehicle
5-10 unless the applicant for the certificate of title provides to the
5-11 assessor-collector the application for a certificate of title and a
5-12 manufacturer's certificate, on a form prescribed by the department,
5-13 that:
5-14 (1) is assigned to the applicant by the manufacturer,
5-15 distributor, or dealer shown on the manufacturer's certificate as
5-16 the last transferee; and
5-17 (2) shows the transfer of the vehicle from its
5-18 manufacturer to the purchaser, whether a distributor, dealer, or
5-19 owner, and each subsequent transfer from distributor to dealer,
5-20 dealer to dealer, and dealer to applicant.
5-21 (b) To expedite an electronic titling transaction, the
5-22 department may accept a copy of the manufacturer's certificate
5-23 electronically, including by facsimile transaction.
5-24 SECTION 8. Section 501.026, Transportation Code, is amended
5-25 by adding Subsection (c) to read as follows:
5-26 (c) To expedite an electronic titling transaction, the
5-27 department may accept a copy of the importer's certificate and
6-1 accompanying evidence electronically, including by facsimile
6-2 transaction.
6-3 SECTION 9. Section 501.027, Transportation Code, is amended
6-4 by amending Subsection (b) and adding Subsection (c) to read as
6-5 follows:
6-6 (b) Not later than the fifth day after the date the
6-7 department receives an application for a certificate of title and
6-8 the department determines the requirements of this chapter are met,
6-9 the department shall issue the certificate of title, except as
6-10 provided by Subsection (c). If a lien is not disclosed on the
6-11 application, the department shall mark the certificate "original"
6-12 and send it by first class mail to the applicant at the address
6-13 provided on the application. If a lien is disclosed on the
6-14 application, the department shall:
6-15 (1) issue the certificate of title in duplicate;
6-16 (2) mark one certificate of title "original" and send
6-17 it by first class mail to the first lienholder as disclosed on the
6-18 application; and
6-19 (3) mark the second certificate of title "duplicate
6-20 original" and send it by first class mail to the applicant at the
6-21 address provided on the application.
6-22 (c) Notwithstanding any other law, if the department
6-23 receives an application for title or for registration or release of
6-24 a lien electronically, the department shall provide an electronic
6-25 notice that represents an original certificate of title or evidence
6-26 that the lien has been registered or released. In an electronic
6-27 transaction a paper original certificate of title may not be issued
7-1 unless requested by the lienholder. The department shall issue a
7-2 duplicate original certificate of title as provided by Subsection
7-3 (b)(3).
7-4 SECTION 10. Section 501.028, Transportation Code, is amended
7-5 to read as follows:
7-6 Sec. 501.028. OWNER'S SIGNATURE. On receipt of a certificate
7-7 of title, other than an electronically issued certificate of title,
7-8 the owner of a motor vehicle shall write the owner's name in ink in
7-9 the space provided on the certificate. For the purposes of this
7-10 chapter, an electronic signature has the same force and effect as a
7-11 signature in ink.
7-12 SECTION 11. Section 501.031, Transportation Code, is amended
7-13 to read as follows:
7-14 Sec. 501.031. RIGHTS OF SURVIVORSHIP AGREEMENT. (a) The
7-15 department shall include on each certificate of title a rights of
7-16 survivorship agreement form. The form must:
7-17 (1) provide that if the agreement is entered into
7-18 [signed] by two or more eligible persons, the motor vehicle is held
7-19 jointly by those persons with the interest of a person who dies to
7-20 survive to the surviving person or persons; and
7-21 (2) provide blanks for the signatures of the persons
7-22 or other means of signifying agreement.
7-23 (b) If the vehicle is registered in the name of one or more
7-24 of the persons who signed the agreement, the certificate of title
7-25 may contain a:
7-26 (1) rights of survivorship agreement signed by all the
7-27 persons; or
8-1 (2) remark if a rights of survivorship agreement is
8-2 surrendered with the application for certificate of title or
8-3 otherwise on file with the department or if a rights of
8-4 survivorship agreement has been made by other means.
8-5 (c) Except as provided in Subsections [Subsection] (g) and
8-6 (h), ownership of the vehicle may be transferred only:
8-7 (1) by all the persons acting jointly, if all the
8-8 persons are alive; and
8-9 (2) on the death of one of the persons by the
8-10 surviving person or persons by transferring the certificate of
8-11 title, in the manner otherwise required by law for transfer of
8-12 ownership of the vehicle, with a copy of the death certificate of
8-13 the deceased person attached to the certificate of title
8-14 application.
8-15 (d) A rights of survivorship agreement under this section
8-16 may be revoked only by surrender of the certificate of title to the
8-17 department and joint application by the persons who signed the
8-18 agreement for a new title in the name of the person or persons
8-19 designated in the application.
8-20 (e) A person is eligible to sign a rights of survivorship
8-21 agreement under this section if the person:
8-22 (1) is married and the spouse of the signing person is
8-23 the only other party to the agreement;
8-24 (2) is unmarried and attests to that unmarried status
8-25 by affidavit; or
8-26 (3) is married and provides the department with an
8-27 affidavit from the signing person's spouse that attests that the
9-1 signing person's interest in the vehicle is the signing person's
9-2 separate property.
9-3 (f) If the title is being issued in connection with the sale
9-4 of the vehicle, the seller is not eligible to sign or otherwise
9-5 enter into a rights of survivorship agreement under this section
9-6 unless the seller is the child, grandchild, parent, grandparent,
9-7 brother, or sister of each other person signing the agreement. A
9-8 family relationship required by this subsection may be a
9-9 relationship established by adoption.
9-10 (g) If an agreement, other than the agreement provided for
9-11 in Subsection (a), providing for right of survivorship is signed or
9-12 otherwise entered into by two or more persons, the department shall
9-13 issue a new certificate of title to the surviving person or persons
9-14 upon application accompanied by a copy of the death certificate of
9-15 the deceased person. The department may develop for public use
9-16 under this subsection an optional rights of survivorship agreement
9-17 form.
9-18 (h) The department may adopt rules it considers necessary to
9-19 effectively provide an electronic method for a rights of
9-20 survivorship agreement.
9-21 SECTION 12. Section 501.071(b), Transportation Code, is
9-22 amended to read as follows:
9-23 (b) The transfer of the certificate of title must be on a
9-24 form or, if the transfer is electronic, in a format prescribed by
9-25 the department that includes a statement that:
9-26 (1) the transferor [signer] is the owner of the
9-27 vehicle; and
10-1 (2) there are no liens on the vehicle except as shown
10-2 on the certificate of title or as fully described in the statement.
10-3 SECTION 13. Section 501.072(a), Transportation Code, is
10-4 amended to read as follows:
10-5 (a) Except as provided by Subsection (c), the seller of a
10-6 motor vehicle sold in this state shall provide to the buyer, on a
10-7 form or, if done electronically, in a format prescribed by the
10-8 department, a written disclosure of the vehicle's odometer reading
10-9 at the time of the sale. The form must include space for or other
10-10 means of providing the signature and printed name of both the
10-11 seller and buyer.
10-12 SECTION 14. Section 501.113(a), Transportation Code, is
10-13 amended to read as follows:
10-14 (a) Recordation of a lien under this chapter is considered
10-15 to occur when:
10-16 (1) the county assessor-collector:
10-17 (A) [(1)] is presented with an application for a
10-18 certificate of title that discloses the lien with tender of the
10-19 filing fee; or
10-20 (B) [(2)] accepts the application; or
10-21 (2) the lien is recorded directly with the department
10-22 through electronic filing.
10-23 SECTION 15. Section 501.114, Transportation Code, is amended
10-24 by adding Subsection (f) to read as follows:
10-25 (f) A lienholder may assign a lien using the electronic lien
10-26 filing system and notifying the debtor of assignment. A
10-27 lienholder's failure to notify a debtor of an assignment does not
11-1 create a cause of action against the lienholder.
11-2 SECTION 16. Section 501.115, Transportation Code, is amended
11-3 to read as follows:
11-4 Sec. 501.115. DISCHARGE OF LIEN. (a) When a debt or claim
11-5 secured by a lien has been satisfied, the lienholder shall, within
11-6 a reasonable time not to exceed the maximum time allowed by Section
11-7 348.408, Finance Code, execute and deliver to the owner, or the
11-8 owner's designee, a discharge of the lien on a form prescribed by
11-9 the department or electronically.
11-10 (b) The owner may present the discharge and certificate of
11-11 title to the county assessor-collector with an application for a
11-12 new certificate of title and the department shall issue a new
11-13 certificate of title or the owner may request the lienholder to
11-14 submit an electronic application for a new certificate of title at
11-15 the time of discharge of the lien. The lienholder may provide the
11-16 owner with a copy of the electronic acknowledgment from the
11-17 department that a lien has been released or other appropriate
11-18 document that provides proof that the lien has been discharged.
11-19 SECTION 17. Section 501.131, Transportation Code, is amended
11-20 by adding Subsection (c) to read as follows:
11-21 (c) The department shall also prescribe the forms in
11-22 electronic format for use in connection with an electronic
11-23 certificate of title.
11-24 SECTION 18. Section 501.138(a), Transportation Code, is
11-25 amended to read as follows:
11-26 (a) An applicant for a certificate of title, other than the
11-27 state or a political subdivision of the state or an applicant
12-1 submitting the application electronically, must pay the county
12-2 assessor-collector a fee of $13.
12-3 SECTION 19. This Act takes effect September 1, 2001.