79R6562 JTS-D

By:  Goolsby                                                      H.B. No. 2166



A BILL TO BE ENTITLED

AN ACT

relating to the transfer of vehicle registration and license plates 
between vehicles with the same owner.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 502.180(b), Transportation Code, is 
amended to read as follows:
	(b)  Subject to Subchapter I, the [The] department shall 
issue only one license plate or set of plates for a vehicle during a 
five-year period.
	SECTION 2.  Chapter 502, Transportation Code, is amended by 
adding Subchapter I to read as follows:
	SUBCHAPTER I.  REGISTRATION EXPIRATION OR TRANSFER

UNDER CERTAIN CIRCUMSTANCES AND TRANSFER

OF LICENSE PLATES
	Sec. 502.451.  EXPIRATION OF REGISTRATION ON TRANSFER OR 
DESTRUCTION OF VEHICLE.  (a)  Notwithstanding Section 502.158, a 
vehicle's registration expires on the date on which:
		(1)  ownership of the vehicle is transferred; or                       
		(2)  the vehicle is destroyed.                                         
	(b)  The transferor of a transferred vehicle or the owner of 
a destroyed vehicle shall remove the license plates from the 
transferred or destroyed vehicle and:
		(1)  surrender the plates to the department; or                        
		(2)  transfer the plates to another vehicle under 
Section 502.454.   
	Sec. 502.452.  REGISTRATION OF VEHICLE WITH JOINT OWNERS.  
The registration of a vehicle registered in the names of two or more 
persons, as partners or otherwise, does not expire on a change in 
ownership of the vehicle as long as any of the persons named in the 
registration as owners of the vehicle is the owner or part owner of 
the vehicle.  If any change in the ownership of the vehicle occurs 
and the registration does not expire, the owner or owners must:
		(1)  file with the department a statement of the 
ownership of the vehicle as required by department rule; and
		(2)  pay a fee of $7.75.                                               
	Sec. 502.453.  PLATES ON VEHICLE TAKEN OUT OF STATE. If a 
vehicle is permanently removed from this state, the owner may 
remove the license plates from that vehicle and may use the plates 
on another vehicle as provided by Section 502.454.
	Sec. 502.454.  TRANSFER OF REMOVED PLATES. (a) A person may 
use license plates removed from a vehicle under Section 502.451 or 
502.453 on another vehicle currently registered to the person if 
the person, when registering the vehicle:
		(1)  submits an application on a form prescribed by the 
department;  
		(2)  pays a transfer fee of $7.75; and                                 
		(3)  pays the amount, if any, that the annual fee for 
registration of the vehicle exceeds the annual fee for the 
registration of the vehicle from which the plates were removed for 
each day or fraction of a day remaining in the unexpired 
registration period.
	(b)  The department shall issue a new registration insignia 
for a vehicle to which license plates are transferred under this 
section.
	(c)  If the license plates of the vehicle from which the 
plates were removed are not appropriate for the vehicle being 
registered, the department shall, on surrender of the inappropriate 
plates, issue appropriate license plates.
	Sec. 502.455.  TRANSFER OF PLATES BETWEEN VEHICLES WITH SAME 
OWNER.  (a)  The owner of a registered vehicle may transfer the 
registration and, if appropriate, the plates of the vehicle to a 
second vehicle owned by the person if the person:
		(1)  submits an application on a form prescribed by the 
department;  
		(2)  pays a transfer fee of $7.75; and                                 
		(3)  pays the amount, if any, that the annual fee for 
registration of the vehicle exceeds the annual fee for the 
registration of the second vehicle for each day or fraction of a day 
remaining in the unexpired registration period.
	(b)  A person who transfers registration under Subsection 
(a) must:   
		(1)  cancel the registration for the second vehicle and 
surrender the plates on the second vehicle to the department; or
		(2)  transfer the registration and plates on the second 
vehicle to a third vehicle.
	(c)  The department shall issue a new registration insignia 
for a vehicle to which license plates are transferred under this 
section.
	(d)  If the license plates of one vehicle are not appropriate 
for another vehicle, the department shall, on surrender of the 
inappropriate license plates, issue appropriate license plates.
	SECTION 3.  This Act takes effect September 1, 2005.