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.