HBA-MPA C.S.H.B. 2409 76(R)BILL ANALYSIS Office of House Bill AnalysisC.S.H.B. 2409 By: King, Tracy Transportation 4/18/1999 Committee Report (Substituted) BACKGROUND AND PURPOSE Currently, a person cannot receive the certificate of title to a motor vehicle unless the vehicle is registered and the person can show proof of liability insurance. This can cause problems for people who want to buy old vehicles to restore, or have vehicles for use only on their farm or ranch. They cannot receive a certificate of title even though the vehicle may never be driven or only driven on a farm or ranch. C.S.H.B. 2409 requires the Texas Department of Transportation (department) from to issue a certificate of title for an unregistered vehicle that complies with other requirements for issuance of a certificate unless the vehicle is unregistered because the registration has been suspended or revoked. It also prevents the department from refusing to issue a certificate of title for a motor vehicle for which the applicant does not provide evidence of 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 501.021(a), Transportation Code, to make a conforming change. SECTION 2. Amends Section 501.0234(a), Transportation Code, to make conforming changes. SECTION 3. Amends Subchapter B, Chapter 501, Transportation Code, by adding Section 501.0275 to prohibit the Texas Department of Transportation from issuing a certificate of title for an unregistered vehicle that complies with other requirements for issuance of a certificate, unless the vehicle is unregistered because the registration has been suspended or revoked, or for which the applicant does not provide evidence of financial responsibility that complies with Section 502.153 (Evidence of Financial Responsibility). Provides that an applicant for a certificate of title under this section must surrender any license plates issued for the motor vehicle and any registration insignia for validation of those plates to the Texas Department of Transportation (department). SECTION 4. Amends Section 520.022(a), Transportation Code, to make a conforming change. SECTION 5. Amends Sections 520.031(a) and (b), Transportation Code, to make a conforming change. SECTION 6. Effective date: September 1, 1999. SECTION 7. Emergency clause. COMPARISON OF ORIGINAL TO SUBSTITUTE C.S.H.B. 2409 differs from the original by adding SECTION 2 (Section 501.0234,Transportation Code), SECTION 4 (Section 520.022,Transportation Code), and SECTION 5 (Section 520.031,Transportation Code) to make conforming changes. C.S.H.B. 2409 differs from the original by adding a new SECTION 3 (proposed Section 501.0275, Transportation Code), to provide that an applicant for a certificate of title under this section must surrender any license plates issued for the motor vehicle and any registration insignia for validation of those plates. This new section which constituted the proposed amendment of Section 501.051 in SECTION 2 of the original bill. The substitute clarifies the language of the original and adds a provision that an applicant for a certificate of registration under this section must surrender any license plates and registration insignia to the department. The substitute adds a new SECTION 6 (effective date) and redesignates the long emergency clause in SECTION 3 of the original bill to a short emergency clause in SECTION 7 of the substitute.