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


Office of House Bill AnalysisH.B. 2217
By: Hawley
Transportation
3/22/2001
Introduced



BACKGROUND AND PURPOSE 

Currently, the Certificate of Title Act does not apply to a semitrailer
used for the purpose of transporting farm products if the products are not
transported for hire.  This means that a title is not required to be issued
for a farm semitrailer unless the semitrailer is over 4,000 pounds gross
vehicle weight.  If the owner of such a farm semitrailer applies for a
title under the current law, a commercial license plate must be issued for
the farm semitrailer for the owner to obtain the title.  If a purchaser
borrows money to purchase a semitrailer, the lending institution requires a
title to be issued so that a first lien can be recorded on the title. Upon
application to a county tax assessor-collector for a title and
registration, the applicant is 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 would reduce the fee for the issuance of
the plate to $5.30.  House Bill 2217 allows a county tax assessorcollector
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 provisions of this 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 this bill. 

EFFECTIVE DATE

September 1, 2001.