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A BILL TO BE ENTITLED
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AN ACT
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relating to the Texas Department of Motor Vehicles' electronic lien |
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system. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 501.117, Transportation Code, is amended |
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by amending Subsection (a) and adding Subsections (d), (d-1), |
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(d-2), (e), and (f) to read as follows: |
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(a) The department by rule shall develop a system under |
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which a security interest in a motor vehicle may be perfected, |
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assigned, discharged, and canceled electronically instead of by |
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record maintained on a certificate of title. The department may |
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establish categories of lienholders that may participate in the |
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system and, except as provided by this section, may require a |
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lienholder to participate in the system [Participation by a
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lienholder in the system is voluntary]. |
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(d) The department may not require a depository |
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institution, as defined by Section 180.002, Finance Code, to |
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participate in the system if the department has issued fewer than |
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100 notifications of security interests in motor vehicles to the |
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depository institution during a calendar year. |
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(d-1) The department may not require a depository |
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institution, as defined by Section 180.002, Finance Code, to |
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participate in the system: |
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(1) during 2011, if the department issues fewer than |
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200 notifications of security interests in motor vehicles to the |
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depository institution between September 1, 2011, and December 31, |
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2011; and |
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(2) during 2012, if the depository institution was |
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exempt under Subdivision (1) and the department issues fewer than |
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200 notifications of security interests in motor vehicles to the |
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depository institution in 2012. |
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(d-2) This subsection and Subsection (d-1) expire January |
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1, 2013. |
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(e) The department by rule shall establish a reasonable |
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schedule for compliance with the requirements of Subsection (a) for |
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each category of lienholder that the department requires to |
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participate in the system. |
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(f) The department may not: |
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(1) prohibit a lienholder from using an intermediary |
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to access the system; or |
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(2) require a lienholder to use an intermediary to |
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access the system. |
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SECTION 2. This Act takes effect September 1, 2011. |