HBA-ALS H.B. 3502 76(R)    HBA-ALS H.B. 3502 76(R)    HBA-ALS H.B. 3502
76(R)    BILL ANALYSIS 


Office of House Bill AnalysisH.B. 3502
By: Hawley
Transportation
4/4/1999
Introduced



BACKGROUND AND PURPOSE 

Under current law, the Texas Department of Transportation (TxDOT) does not
have the authority to require certain information needed to effect a legal
transfer of title of an motor vehicle through rights of survivorship.
There is a concern that this may create litigation among the heirs of a
deceased owner of motor vehicle. In addition, current law only allows a
transfer of title though the rights of survivorship to a spouse. 

H.B. 3502 provides for the transfer of a certificate of title through a
rights of survivorship agreement between any two persons, not just between
spouses.  This bill also allows a rights of survivorship statement to be
printed on the certificate of title, if a rights of survivorship agreement
is presented with an application for title or if such an agreement is on
file with TxDOT. 

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 501.031, Transportation Code, as follows:

Sec. 501.031.  RIGHTS OF SURVIVORSHIP AGREEMENT. (a) Requires the Texas
Department of Transportation (TxDOT) to include on each motor vehicle
certificate of title a rights of survivorship agreement form which provides
that if the agreement is signed by two persons, rather than a husband and
wife jointly, the motor vehicle is held jointly by those persons with the
interest of either person who dies to survive to the surviving person.
Makes conforming changes. 

(b)  Authorizes a certificate of title to contain, if the vehicle is
registered in the name of either person who signed the agreement, a rights
of survivorship agreement signed by both persons or a remark if a rights of
survivorship agreement is surrendered with the application for certificate
of title or otherwise on file with TxDOT.   

(c)  Creates this subsection from existing text. Deletes language providing
that if a vehicle is registered in the name of the husband or wife, or
both, and if the rights of survivorship agreement is signed by both, the
ownership of the vehicle may only be transferred by both spouses acting
jointly, if both spouses are alive.  Deletes language providing that on the
death of one spouse ownership may be transferred by transferring the
certificate of title attached to a copy of the death certificate of the
deceased spouse.  Deletes language requiring TxDOT, upon presentation of a
copy of the certificate of title attached to a copy of the death
certificate, to issue a new certificate of title in the name of the
surviving spouse or the surviving spouse's transferee.   Provides an
exception under Subsection (e).  
(d) Redesignates existing Subsection (c) to (d).  Makes a conforming change.

(e) Requires TxDOT, to develop an optional rights of survivorship agreement
form. Requires TxDOT to issue a new certificate of title to a surviving
person possessing a right  of survivorship agreement on the death of
another person. 

SECTION 2.Effective date: September 1, 1999. 

SECTION 3.Emergency clause.