1-1 By: Davis of Dallas (Senate Sponsor - Ellis) H.B. No. 1535 1-2 (In the Senate - Received from the House April 2, 2001; 1-3 April 3, 2001, read first time and referred to Committee on State 1-4 Affairs; May 8, 2001, reported favorably by the following vote: 1-5 Yeas 7, Nays 0; May 8, 2001, sent to printer.) 1-6 A BILL TO BE ENTITLED 1-7 AN ACT 1-8 relating to an electronic motor vehicle lien system. 1-9 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-10 SECTION 1. Subchapter F, Chapter 501, Transportation Code, is 1-11 amended by adding Section 501.117 to read as follows: 1-12 Sec. 501.117. ELECTRONIC LIEN SYSTEM. (a) The department by 1-13 rule shall develop a system under which a security interest in a 1-14 motor vehicle may be perfected, assigned, discharged, and canceled 1-15 electronically instead of by record maintained on a certificate of 1-16 title. Participation by a lienholder in the system is voluntary. 1-17 (b) The department shall publish and distribute procedures 1-18 for using the system to county assessor-collectors and to financial 1-19 institutions and other potential motor vehicle lienholders. 1-20 (c) The provisions of this chapter relating to perfecting, 1-21 assigning, discharging, and canceling a security interest in a 1-22 motor vehicle by record maintained on a certificate of title do not 1-23 apply to the extent the security interest is governed by rules 1-24 adopted under this section. 1-25 SECTION 2. This Act takes effect September 1, 2001. 1-26 * * * * *