MPA H.B. 1707 76(R)    BILL ANALYSIS

Office of House Bill AnalysisH.B. 1707
By: Uher


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. 


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 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.