BILL ANALYSIS



C.S.H.B. 3162
By: Brady
4-25-95
Committee Report (Substituted)


BACKGROUND

Currently, UCC documents filed with the Secretary of State (SOS)
are required to be filed on paper.  This results in a number of
problems including: documents being lost or arriving late as a
result of the U.S. postal service; increased work load for the SOS
staff that must key in the data into their computer system; and the
risk that data can be inaccurate from having to be keyed in twice.

PURPOSE

To allow UCC documents to be filed electronically with the
Secretary of State.

RULEMAKING AUTHORITY

Under Section 1, Section 7.412,  Secretary of State may adopt rules
for the implementation of the program.  May also allow the
Secretary of State to establish reasonable fees for providing
electronic information services.

SECTION BY SECTION ANALYSIS

SECTION 1.   Amends Chapter 9, Business and Commerce Code, by
adding section 9.412.  A financing statement or other document
filed under subchapter may be filed electronically if the document
complies with the requirements of Section 9.402 and the rules
adopted by the secretary of state.  Allows the Secretary of State
to promulgate rules, for the implementation of the program and may
establish reasonable fees for providing electronic information
services.

SECTION 2.   Effective Date:  September 1, 1995.

SECTION 3.  Emergency Clause.

COMPARISON OF ORIGINAL TO SUBSTITUTE

The major difference between H.B. 3162 as introduced and the
committee substitute is, H.B. 3162, as filed, was not a Legislative
Council draft.  The substitute was drafted by the Legislative
Council, incorporating the language under Chapter 9, Business and
Commerce Code, by adding Section 9.412, and deleting Section
9.402(i) entirely.

SUMMARY OF COMMITTEE ACTION

The Business and Industry Committee considered H.B. 3162 in a
public hearing on April 25, 1995.  The following witness testified
on H.B. 3162:  Wally Boggus, representing Office of the Secretary
of State.  The committee considered a complete committee substitute
for the bill.  The substitute was adopted without objection.  H.B.
3162, as substituted, was reported favorably with the
recommendation that it do pass and be printed and be sent to the
Committee on Local and Consent Calendars, by a record vote of 7
(seven) ayes, 0 (zero) nays, 0 (zero) present-not-voting, 2 (two)
absent.