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.