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.