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.