1-1 By: Shapiro S.B. No. 713
1-2 (In the Senate - Filed February 14, 2001; February 15, 2001,
1-3 read first time and referred to Committee on State Affairs;
1-4 March 26, 2001, reported adversely, with favorable Committee
1-5 Substitute by the following vote: Yeas 7, Nays 0; March 26, 2001,
1-6 sent to printer.)
1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 713 By: Shapiro
1-8 A BILL TO BE ENTITLED
1-9 AN ACT
1-10 relating to documentation of motor vehicle ownership.
1-11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12 SECTION 1. Subsection (a), Section 501.022, Transportation
1-13 Code, is amended to read as follows:
1-14 (a) The owner of a motor vehicle registered in this state
1-15 may not operate or permit the operation of the vehicle on a public
1-16 highway until the owner obtains a certificate of title for the
1-17 vehicle or until the owner obtains registration for the vehicle if
1-18 a receipt evidencing title to the vehicle is issued under Section
1-19 501.029(b).
1-20 SECTION 2. Subsection (d), Section 501.024, Transportation
1-21 Code, is amended to read as follows:
1-22 (d) A title receipt authorizes the operation of the motor
1-23 vehicle on a public highway in this state for 10 days or until the
1-24 certificate of title is issued, whichever period is shorter.
1-25 [After that period, the receipt is not effective for any purpose,
1-26 unless the receipt is renewed as provided by department rules.]
1-27 SECTION 3. Subsection (b), Section 501.027, Transportation
1-28 Code, is amended to read as follows:
1-29 (b) Not later than the fifth day after the date the
1-30 department receives an application for a certificate of title and
1-31 the department determines the requirements of this chapter are met,
1-32 the department shall issue the certificate of title. If a lien is
1-33 not disclosed on the application, the department shall [mark the
1-34 certificate "original" and] send the certificate [it] by first
1-35 class mail to the applicant at the address provided on the
1-36 application. If a lien is disclosed on the application, the
1-37 department shall[:]
1-38 [(1) issue the certificate of title in duplicate;]
1-39 [(2) mark one certificate of title "original" and]
1-40 send the certificate [it] by first class mail to the first
1-41 lienholder as disclosed on the application[; and]
1-42 [(3) mark the second certificate of title "duplicate
1-43 original" and send it by first class mail to the applicant at the
1-44 address provided on the application].
1-45 SECTION 4. Section 501.029, Transportation Code, is amended
1-46 to read as follows:
1-47 Sec. 501.029. USE OF REGISTRATION RECEIPT OR [DUPLICATE]
1-48 TITLE RECEIPT TO EVIDENCE TITLE [OR CERTIFICATE]. (a) A person
1-49 may use a registration receipt issued under Chapter 502 or a title
1-50 receipt [or certificate of title marked "Duplicate Original" only]
1-51 to evidence title to a motor vehicle and not to transfer an
1-52 interest in or establish a lien on the vehicle.
1-53 (b) The department by rule may provide for the issuance of a
1-54 receipt that evidences title to a motor vehicle for registration
1-55 purposes only. The fee for application for the receipt is the fee
1-56 applicable to application for a certificate of title.
1-57 SECTION 5. Section 501.132, Transportation Code, is amended
1-58 to read as follows:
1-59 Sec. 501.132. DUPLICATE TITLE RECEIPT [OR CERTIFICATE].
1-60 Except as otherwise provided by department rule, the department may
1-61 not issue a duplicate title receipt [or duplicate certificate of
1-62 title] unless the original title receipt or certificate of title is
1-63 surrendered.
1-64 SECTION 6. Subsections (a) and (e), Section 501.134,
2-1 Transportation Code, are amended to read as follows:
2-2 (a) If a [an original or duplicate original] certificate of
2-3 title is lost or destroyed, the owner or lienholder disclosed on
2-4 the certificate may obtain, in the manner provided by this section
2-5 and department rule, a certified copy of the lost or destroyed
2-6 certificate of title directly from the department by applying on a
2-7 form prescribed by the department and paying a fee of $2. A fee
2-8 collected under this subsection shall be deposited to the credit of
2-9 the state highway fund and may be spent only as provided by Section
2-10 501.138.
2-11 (e) If the [original or duplicate original] certificate of
2-12 title is recovered, the owner of the vehicle shall promptly
2-13 surrender the [original or duplicate original] certificate of title
2-14 to the department for cancellation, and the department shall
2-15 eliminate the words "certified copy" from any certificate of title
2-16 issued for that vehicle after that date.
2-17 SECTION 7. Subsection (a), Section 502.152, Transportation
2-18 Code, is amended to read as follows:
2-19 (a) The department may not register or renew the
2-20 registration of a motor vehicle for which a certificate of title is
2-21 required under Chapter 501 unless the owner:
2-22 (1) obtains a certificate of title for the vehicle; or
2-23 (2) presents satisfactory evidence that a certificate
2-24 of title was previously issued to the owner by the department or
2-25 another jurisdiction.
2-26 SECTION 8. The Texas Department of Transportation shall
2-27 adopt rules necessary to account for abolition by this Act of
2-28 duplicate original certificates of title.
2-29 SECTION 9. This Act takes effect September 1, 2001.
2-30 * * * * *