HBA-CMT H.B. 2217 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 2217
By: Hawley
Transportation
7/17/2001
Enrolled



BACKGROUND AND PURPOSE 

Prior to the 77th Legislature, the Certificate of Title Act did not apply
to a semitrailer used for the purpose of transporting farm products if the
products were not transported for hire.  This meant that a title was not
required to be issued for a farm semitrailer unless the semitrailer was
over 4,000 pounds gross vehicle weight.  If the owner of such a farm
semitrailer applied for a title under the previous law, a commercial
license plate would be issued for the farm semitrailer for the owner to
obtain the title.  If a purchaser borrowed money to purchase a semitrailer,
the lending institution required a title to be issued so that a first lien
could be recorded on the title.  Upon application to a county tax
assessor-collector for a title and registration, the applicant was sold
commercial registration plates which cost approximately $175 to $300,
depending on the gross weight of the vehicle.  Allowing the owner of a
semitrailer to  register the semitrailer with a farm vehicle license plate
reduces the fee for the issuance of the plate to $5.30.  House Bill 2217
allows a county tax assessor-collector to issue title to a farm semitrailer
of more than 4,000 pounds and to register that semitrailer with a farm
vehicle license plate. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the Texas Department of Transportation
in SECTION 1 (Section 501.036, Transportation Code) of this bill. 

ANALYSIS

House Bill 2217 amends the Transportation Code to authorize the Texas
Department of Transportation (TxDOT) to issue a certificate of title for a
farm semitrailer with a gross weight of more than 4,000 pounds if the farm
semitrailer is eligible for registration under the provisions for  certain
farm vehicles and drilling and construction equipment, and all other
requirements for issuance of a certificate of title are met.  To obtain a
certificate of title under the bill, the owner of the farm semitrailer is
required to apply for the certificate of title in the manner required by
the Certificate of Title Act, and to pay the required fee.  The bill
requires  TxDOT to adopt rules and forms to implement and administer the
provisions of the bill. 

EFFECTIVE DATE

September 1, 2001.