BILL ANALYSIS H.B. 677 By: Craddick 02-24-95 Committee Report (Unamended) BACKGROUND Section 121.004, Civil Practice and Remedies Code, requires a notary seal on a certificate of acknowledgement. Some states (i.e. New York, Massachusetts, and Rhode Island) do not require their notaries to impress seals on certificates of acknowledgement, and many do not have a notary seal or stamp. An instrument with an acknowledgement lacking a notary seal is unrecordable under Property Code, Section 12.001(b), and even where physically recorded by the county clerk, it does not provide constructive notice under Property Code, Section 13.001(a). PURPOSE The bill would validate acknowledged instruments lacking a notary seal if the state or territory where the acknowledgment or proof is taken, does not require an official seal. The bill would also require the secretary of state to compile, and maintain a list of those states or territories that require notaries to attach official seals to acknowledged instruments. The list would be sent to each of the county clerks by January 1 of each year. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 121.004, Civil Practice and Remedies Code, by adding Subsection (c): Invalidates a certificate of an acknowledgement or proof of a written instrument, for failure to attach an official seal, only if the jurisdiction in which the certificate is made requires the notary public to attach the seal. Applies to instruments made outside Texas, but within the United States or its territories. SECTION 2. Amends Section 12.001, Property Code, by adding Subsection (d): Invalidates an acknowledgement, jurat, or other proof, for failure to attach an official seal, only if the jurisdiction in which the acknowledgement, jurat, or other proof is made requires the notary public to attach the seal. Applies to instruments made outside Texas, but within the United States or its territories. SECTION 3. Amends Subchapter B, Chapter 405, Government Code by adding Section 405.019 LIST OF STATES REQUIRING AN OFFICIAL SEAL FOR CERTAIN DOCUMENTS: (a) The secretary of state shall compile a list of those states or territories within the United States that require a notary public to validate a certificate of an acknowledgement, proof of a written instrument, or a jurat by attaching an official seal. (b) The secretary of state shall send the list to each of the county clerks of Texas before January 1 of each year. (c) The secretary of state shall amend the list and immediately send the amended list to the county clerks if the secretary learns that a state or territory has changed its requirements relating to a notary public in a manner that requires it to be added to or deleted from the list. SECTION 4. Effective date: Upon passage without regard to whether: 1.) the instrument was created before, on, or after this Act; 2.) an action taken by a notary public in relation to the instrument occurred before, on, or after the effective date. SECTION 5. Emergency clause. SUMMARY OF COMMITTEE ACTION House Bill 677 was considered by the Committee on Civil Practices in a public hearing on March 1, 1995. No one testified for, against or neutral on the bill. The bill was reported favorably without amendment with the recommendation that it do pass and be printed, by a record vote of nine ayes, zero nays and zero present not voting.