BWH C.S.H.B. 1877 75(R)BILL ANALYSIS


COUNTY AFFAIRS
C.S.H.B. 1877
By: Chisum
4-9-97
Committee Report (Substituted)



BACKGROUND 

The rapid development of electronic technology has resulted in the
transfer of information by an electronic medium.  States are beginning to
adopt electronic recording statutes for the recording and filing of
documents and instruments in the public record.  However, because this
type of activity is relatively new, many of the potential pitfalls are
unforseen. 

PURPOSE

To create an Electronic Recording Task Force to establish standards and
specifications for a pilot program for the electronic filing and recording
of instruments in the public records. 

RULEMAKING AUTHORITY

This bill would give the Texas State Library and Archives Commission
rulemaking authority to establish permissive standards for counties to use
relating to the filing and recording of instruments in the public records
of the County or District Clerks. The rules will expire on January 1,
2000. 

SECTION BY SECTION ANALYSIS

SECTION 1.  (a) creates a 13 member Electronic Recording Task Force; the
chair will be the Executive Director of the Texas State Library and
Archives Commission. 
(b) task force may recommend by a vote of 10 of 13 members, rules for
adoption by the Commission relating to electronic recording of all or a
portion of public records. 
(c) Definitions of "Electronic Recording Rules" and "public records".
(d) The Task force may make written recommendations for future legislation
on Electronic Recording. 
(e) establishes that rules for recording are entirely permissive for use
by a county or district clerk. 
(f) insures that a parallel duplicative system is in place and that the
original document under this law is preserved and available under existing
applicable law. 
(g) provides for equivalency of processes.
(h) provides that instruments filed electronically are a public record.
(I) Task Force and permissive rules expire January 1, 2000.

SECTION 2. Effective date: immediately.

SECTION 3. Emergency clause.

COMPARISON OF ORIGINAL TO SUBSTITUTE

1.The Electronic Recording Task force is now known as The Electronic
Recording Advisory Committee. 

2. Committee is enlarged to sixteen members from thirteen, adding two from
the County Judges Association and one from another title Association. The
four private vendors were replaced with four state agencies. 1. The
Attorney General. 2.The State Comptroller. 3. The executive director of
the Department of Information Resources 4.The General Services Commission
executive  director. 

3. A quorum was established at nine and the supermajority vote was
preserved with no less than three dissents of those present to adopt
recommendations. 

4.The advisory committee was placed in a more appropriate section of the
local government code--205.010. 

5.  New extraordinary proprietary costs or investment expenses for
accessibility is prohibited for this pilot program. 

6. Language for working in conjunction with existing records retention
statutes in the local government code was added. Rules adopted by the
State Library must also be reviewed by the local government records
committee. 

7. District Clerks are removed from the pilot program.

8. "Public Records" is more narrowly defined and limited to real property
records.