SRC-DPW S.B. 477 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 477
76R2698 WP-DBy: Carona
State Affairs
2/22/1999
As Filed


DIGEST 

Currently, the secretary of state's office has in place an electronic
filing system which utilizes the Data Interchange Standards Association
(DISA).  The DISA system allows the electronic transmission of financing
statements, which are acceptable without the debtor's signature.  This bill
would authorize the secretary of state to authorize the electronic
generation or transmission of a financing statement or other filing made
under this subchapter in lieu of a paper filing. 

PURPOSE

As proposed, S.B. 477 authorizes the secretary of state to authorize the
electronic generation or transmission of a financing statement or other
filing made under this subchapter in lieu of a paper filing.  

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 9.409, Business & Commerce Code, by adding
Subsection (c), as follows: 

(c) Authorizes the secretary of state, by rule adopted under Section 9.411,
to authorize the electronic generation or transmission of a financing
statement or other filing made under this subchapter in lieu of a paper
filing. 

SECTION 2. Provides that the intent of Section 9.409(c), Business &
Commerce Code, is to clarify existing law and that the authority expressed
in that section is within the authority previously granted to the secretary
of state under Section 9.409.  Makes application of this Act retroactive. 

SECTION 3.Emergency clause.
  Effective date: upon passage.