By: Phillips H.B. No. 2575
A BILL TO BE ENTITLED
AN ACT
relating to the use of an electronic lien system established by the
Texas Department of Motor Vehicles.
BE IT ENACTED BY THE LEGISLATUE OF THE STATE OF TEXAS:
SECTION 1. Section 501.117, Transportation Code, is amended
by amending subsection (a) and adding subsections (d) and (e) to
read as follows:
Sec. 501.117. ELECTRONIC LIEN SYSTEM. (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. Participation Except as provided by subsection (d), the
department may require participation by a lienholder in the system
is voluntary.
(d) The department may establish categories of lienholders
that may participate in the system established under subsection (a)
but are not required to participate in that system.
(e) The department:
(1) shall establish a reasonable schedule for
compliance for each category of lienholder that is required to
participate in the system; and
(2) may not:
(A) prohibit any lienholder, or any category of
lienholder, from using an intermediary between the lienholder and
the system; or
(B) require any lienholder, or any category of
lienholder, to use an intermediary, or any specific intermediary,
between a lienholder and the system.
SECTION 2. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2011.