SRC-JBJ S.B. 478 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 478
76R3690 WP-DBy: Carona
State Affairs
2/22/1999
As Filed


DIGEST 

Currently, Texas law authorizes a person to file financing statements
electronically with the secretary of state.  Nevertheless, some lenders
have been apprehensive about electronic filing because of legal a concern
regarding the permissibility of electronic filing under the law.  This
ambiguity requires clarification by codifying the current and future
acceptability of electronically filed financing statements. S.B. 478
clarifies existing law regarding the permissibility of filing financing
statements electronically with the secretary of state. 

PURPOSE

As proposed, S.B. 478 clarifies existing law regarding the permissibility
of filing financing statements electronically with the secretary of state. 

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 9.402, Business & Commerce Code, by adding
Subsection (i), to provide that this code does not require a financing
statement or other filing made under this subchapter be created or
transmitted to the secretary of state on paper.  Provides that a financing
statement or other filing made in accordance with rules adopted under this
subchapter are not ineffective or insufficient because the statements or
other filings are generated or transmitted electronically.   

SECTION 2.  Intends Section 9.402(i), Business & Commerce Code, to clarify
existing law.  Provides that the authority granted under Section 9.402(i)
to the secretary of state is within the authority previously granted to the
secretary of state under 9.411, Business & Commerce Code.  Makes
application of this Act retroactive. 

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