SRC-VRA H.B. 3414 78(R)    BILL ANALYSIS


Senate Research CenterH.B. 3414
78R10394 RCJ-FBy: Marchant (Brimer)
Administration
5/9/2003
Engrossed

DIGEST AND PURPOSE 

Currently,  the secretary of state must accept filings relating to
collateral security in commercial transactions in any format, although 95
percent of filers utilize the national standard form.  H.B. 3414 mandates
the approved form for filing financing statement records under the Uniform
Commercial Code. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to
a state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 9.516(b), Business & Commerce Code, to provide
that filing does not occur with respect to a record that a filing office
refuses to accept because the record is not on the national standard form
or a form approved by the International Association  of Commercial
Administrators (IACA), adopted by the secretary of state. 

SECTION 2.  Amends Subchapter E, Chapter 9, Business & Commerce Code, by
adding Section 9.5211, as follows: 

Sec.  9.5211.  UNIFORM FORM OF WRITTEN FINANCING STATEMENT AND AMENDMENT.
(a)  Prohibits a filing office that accepts written records from refusing
to accept a written initial financing statement on an industry standard
form, including a national standard form or a form approved by the
International Association of Commercial Administrators IACA and adopted by
rule by the secretary of state, except as provided by Section 9.516(b). 

(b)  Prohibits a filing office that accepts written records from refusing
to accept a written record on an industry standard form, including a
national standard form or a form approved by (IACA) and adopted by rule by
the secretary of state, except as provided by Section 9.516(b).   

SECTION 3.  Repealer:  Section 9.521, Business & Commerce Code (Uniform
Form of Written Financing Statement and Amendment). 

SECTION 4.Effective date:  January 1, 2004.
  Makes application of this Act prospective.