82R19618 AJZ-F
By: Phillips H.B. No. 2575
Substitute the following for H.B. No. 2575:
By: Martinez C.S.H.B. No. 2575
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.