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