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.