By Ellis                                              S.B. No. 1042
         77R2426 DWS-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to an electronic motor vehicle lien system.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1. Subchapter F, Chapter 501, Transportation Code, is
 1-5     amended by adding Section 501.117 to read as follows:
 1-6           Sec. 501.117.  ELECTRONIC LIEN SYSTEM. (a)  The department by
 1-7     rule shall develop a system under which a security interest in a
 1-8     motor vehicle may be perfected, assigned, discharged, and canceled
 1-9     electronically instead of by record maintained on a certificate of
1-10     title.  Participation by a lienholder in the system is voluntary.
1-11           (b)  The department shall publish and distribute procedures
1-12     for using the system to county assessor-collectors and to financial
1-13     institutions and other potential motor vehicle lienholders.
1-14           (c)  The provisions of this chapter relating to perfecting,
1-15     assigning, discharging, and canceling a security interest in a
1-16     motor vehicle by record maintained on a certificate of title do not
1-17     apply to the extent the security interest is governed by rules
1-18     adopted under this section.
1-19           SECTION 2. This Act takes effect September 1, 2001.