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.
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