HBA- MPA H.B. 1707 76(R)BILL ANALYSIS Office of House Bill AnalysisH.B. 1707 By: Uher Transportation 5/22/1999 Enrolled BACKGROUND AND PURPOSE Currently, sellers of motor vehicles must act as the "owner's representative" prior to sale of the vehicle when applying for title and registration. The law requires proof of insurance to be shown at the time of application, placing a burden on commerce in motor vehicles, as well as for the state, which loses the motor vehicle sales tax if the transaction is not completed. H.B. 1707 allows dealers to apply for title and registration on behalf of the purchaser without having to show proof of insurance to the county tax assessor-collector, and to remit the motor vehicle sales tax in a timely manner. Subsequent renewals of registration by the owner will still be subject to the proof of financial responsibility requirement. This bill will not change the requirement that every driver be able to demonstrate financial responsibility. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 502.153, Transportation Code, to exempt from the conditions of Section 601.051 (Requirement of Financial Responsibility) vehicles registered by a licensed dealer under the provisions of Section 501.0234 (Duty of Vehicle Dealer on Sale of Certain Vehicles). Makes conforming and nonsubstantive changes. SECTION 2.Emergency clause. Effective date: upon passage.