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A BILL TO BE ENTITLED
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AN ACT
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relating to the use of an electronic lien system established by the |
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Texas Department of Motor Vehicles. |
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BE IT ENACTED BY THE LEGISLATUE 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) and (e) to |
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read as follows: |
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Sec. 501.117. ELECTRONIC LIEN SYSTEM. (a) The department |
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by rule shall develop a system under which a security interest in a |
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motor vehicle may be perfected, assigned, discharged, and canceled |
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electronically instead of by record maintained on a certificate of |
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title. Participation Except as provided by subsection (d), the |
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department may require participation by a lienholder in the system |
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is voluntary. |
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(d) The department may establish categories of lienholders |
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that may participate in the system established under subsection (a) |
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but are not required to participate in that system. |
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(e) The department: |
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(1) shall establish a reasonable schedule for |
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compliance for each category of lienholder that is required to |
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participate in the system; and |
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(2) may not: |
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(A) prohibit any lienholder, or any category of |
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lienholder, from using an intermediary between the lienholder and |
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the system; or |
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(B) require any lienholder, or any category of |
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lienholder, to use an intermediary, or any specific intermediary, |
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between a lienholder and the system. |
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SECTION 2. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2011. |