1-1     By:  Hightower, Allen, et al.                         H.B. No. 1185

 1-2          (Senate Sponsor -Armbrister)

 1-3           (In the Senate - Received from the House March 17, 1997;

 1-4     March 18, 1997, read first time and referred to Committee on

 1-5     Jurisprudence; March 26, 1997, reported favorably, as amended, by

 1-6     the following vote:  Yeas 6, Nays 0; March 26, 1997, sent to

 1-7     printer.)

 1-8     COMMITTEE AMENDMENT NO. 1                                By:  Ogden

 1-9     Amend H.B. 1185 as follows:

1-10           On page 3 of the bill, line 54, strike the words "felony of

1-11     the third degree" and substitute "state jail felony".

1-12                            A BILL TO BE ENTITLED

1-13                                   AN ACT

1-14     relating to the fraudulent exercise of certain governmental

1-15     functions and the fraudulent creation or use of certain pleadings,

1-16     governmental documents, and records; providing penalties.

1-17           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-18           SECTION 1.  Sections 32.21(e) and (f), Penal Code, are

1-19     amended to read as follows:

1-20           (e)  An offense under this section is a felony of the third

1-21     degree if the writing is or purports to be:

1-22                 (1)  part of an issue of money, securities, postage or

1-23     revenue stamps;

1-24                 (2)  a government record listed in Section 37.01(2)(C)

1-25     [37.01(1)(C)]; or

1-26                 (3)  other instruments issued by a state or national

1-27     government or by a subdivision of either, or part of an issue of

1-28     stock, bonds, or other instruments representing interests in or

1-29     claims against another person.

1-30           (f)  A person is presumed to intend to defraud or harm

1-31     another if the person acts with respect to two or more writings of

1-32     the same type and if each writing is a government record listed in

1-33     Section 37.01(2)(C) [37.01(1)(C)].

1-34           SECTION 2.  Section 32.46, Penal Code, is amended to read as

1-35     follows:

1-36           Sec. 32.46.  SECURING EXECUTION OF DOCUMENT BY DECEPTION.

1-37     (a)  A person commits an offense if, with intent to defraud or harm

1-38     any person, he, by deception:

1-39                 (1)  [,] causes another to sign or execute any document

1-40     affecting property or service or the pecuniary interest of any

1-41     person; or

1-42                 (2)  causes or induces a public servant to file or

1-43     record any purported judgment or other document purporting  to

1-44     memorialize or evidence an act, an order, a directive, or process

1-45     of:

1-46                       (A)  a purported court that is not expressly

1-47     created or established under the constitution or the laws of this

1-48     state or of the United States;

1-49                       (B)  a purported judicial entity that is not

1-50     expressly created or established under the constitution or laws of

1-51     this state or of the United States; or

1-52                       (C)  a purported judicial officer of a purported

1-53     court or purported judicial entity described by Paragraph (A) or

1-54     (B).

1-55           (b)  An offense under Subsection (a)(1) [this section] is a:

1-56                 (1)  Class C misdemeanor if the value of the property,

1-57     service, or pecuniary interest is less than $20;

1-58                 (2)  Class B misdemeanor if the value of the property,

1-59     service, or pecuniary interest is $20 or more but less than $500;

1-60                 (3)  Class A misdemeanor if the value of the property,

1-61     service, or pecuniary interest is $500 or more but less than

1-62     $1,500;

1-63                 (4)  state jail felony if the value of the property,

1-64     service, or pecuniary interest is $1,500 or more but less than

 2-1     $20,000;

 2-2                 (5)  felony of the third degree if the value of the

 2-3     property, service, or pecuniary interest is $20,000 or more but

 2-4     less than $100,000;

 2-5                 (6)  felony of the second degree if the value of the

 2-6     property, service, or pecuniary interest is $100,000 or more but

 2-7     less than $200,000; or

 2-8                 (7)  felony of the first degree if the value of the

 2-9     property, service, or pecuniary interest is $200,000 or more.

2-10           (c)  An offense under Subsection (a)(2) is a state jail

2-11     felony.

2-12           (d)  In this section, "deception" has the meaning assigned by

2-13     Section 31.01.

2-14           SECTION 3.  Subchapter D, Chapter 32, Penal Code, is amended

2-15     by adding Section 32.48 to read as follows:

2-16           Sec. 32.48.  SIMULATING LEGAL PROCESS.  (a)  A person commits

2-17     an offense if the person recklessly causes to be delivered to

2-18     another any document that simulates a summons, complaint, judgment,

2-19     or other court process with the intent to:

2-20                 (1)  induce payment of a claim from another person; or

2-21                 (2)  cause another to:

2-22                       (A)  submit to the putative authority of the

2-23     document; or

2-24                       (B)  take any action or refrain from taking any

2-25     action in response to the document, in compliance with the

2-26     document, or on the basis of the document.

2-27           (b)  Proof that the document was mailed to any person with

2-28     the intent that it be forwarded to the intended recipient is a

2-29     sufficient showing that the document was delivered.

2-30           (c)  It is not a defense to prosecution under this section

2-31     that the simulating document:

2-32                 (1)  states that it is not legal process; or

2-33                 (2)  purports to have been issued or authorized by a

2-34     person or entity who did not have lawful authority to issue or

2-35     authorize the document.

2-36           (d)  If it is shown on the trial of an offense under this

2-37     section that the simulating document was filed with, presented to,

2-38     or delivered to a clerk of a court or an employee of a clerk of a

2-39     court created or established under the constitution or laws of this

2-40     state, there is a rebuttable presumption that the document was

2-41     delivered with the intent described by Subsection (a).

2-42           (e)  Except as provided by Subsection (f), an offense under

2-43     this section is a Class A misdemeanor.

2-44           (f)  If it is shown on the trial of an offense under this

2-45     section that the defendant has previously been convicted of a

2-46     violation of this section, the offense is a state jail felony.

2-47           SECTION 4.  Subchapter D, Chapter 32, Penal Code, is amended

2-48     by adding Section 32.49 to read as follows:

2-49           Sec. 32.49.  REFUSAL TO EXECUTE RELEASE OF FRAUDULENT LIEN OR

2-50     CLAIM.  (a)  A person commits an offense if, with intent to defraud

2-51     or harm another, the person:

2-52                 (1)  owns, holds, or is the beneficiary of a purported

2-53     lien or claim asserted against real or personal property or an

2-54     interest in real or personal property that is fraudulent, as

2-55     described by Section 51.901(c), Government Code; and

2-56                 (2)  not later than the 21st day after the date of

2-57     receipt of actual or written notice sent by either certified or

2-58     registered mail, return receipt requested, to the person's last

2-59     known address, or by telephonic document transfer to the

2-60     recipient's current telecopier number, requesting the execution of

2-61     a release of the fraudulent lien or claim, refuses to execute the

2-62     release on the request of:

2-63                       (A)  the obligor or debtor; or

2-64                       (B)  any person who owns any interest in the real

2-65     or personal property described in the document or instrument that

2-66     is the basis for the lien or claim.

2-67           (b)  A person who fails to execute a release of the purported

2-68     lien or claim within the period prescribed by Subsection (a)(2) is

2-69     presumed to have had the intent to harm or defraud another.

 3-1           (c)  An offense under this section is a Class A misdemeanor.

 3-2           SECTION 5.  Section 37.01, Penal Code, is amended to read as

 3-3     follows:

 3-4           Sec. 37.01.  DEFINITIONS.  In this chapter:

 3-5                 (1)  "Court record" means a decree, judgment, order,

 3-6     subpoena, warrant, minutes, or other document issued by a court of:

 3-7                       (A)  this state;

 3-8                       (B)  another state;

 3-9                       (C)  the United States;

3-10                       (D)  a foreign country recognized by an act of

3-11     congress or a treaty or other international convention to which the

3-12     United States is a party;

3-13                       (E)  an Indian tribe recognized by the United

3-14     States; or

3-15                       (F)  any other jurisdiction, territory, or

3-16     protectorate entitled to full faith and credit in this state under

3-17     the United States Constitution.

3-18                 (2)  "Governmental record" means:

3-19                       (A)  anything belonging to, received by, or kept

3-20     by government for information, including a court record;

3-21                       (B)  anything required by law to be kept by

3-22     others for information of government; or

3-23                       (C)  a license, certificate, permit, seal, title,

3-24     letter of patent, or similar document issued by government.

3-25                 (3) [(2)]  "Statement" means any representation of

3-26     fact.

3-27           SECTION 6.  Section 37.10, Penal Code, is amended by amending

3-28     Subsection (d) and adding Subsection (h) to read as follows:

3-29           (d)  An offense under this section is a felony of the third

3-30     degree if it is shown on the trial of the offense that the

3-31     governmental record was a license, certificate, permit, seal,

3-32     title, letter of patent, or similar document issued by government,

3-33     unless the actor's intent is to defraud or harm another, in which

3-34     event the offense is a felony of the second degree.

3-35           (h)  If conduct that constitutes an offense under this

3-36     section also constitutes an offense under Section 32.48 or 37.13,

3-37     the actor may be prosecuted under any of those sections.

3-38           SECTION 7.  Section 37.11, Penal Code, is amended to read as

3-39     follows:

3-40           Sec. 37.11.  IMPERSONATING PUBLIC SERVANT.  (a)  A person

3-41     commits an offense if he:

3-42                 (1)  impersonates a public servant with intent to

3-43     induce another to submit to his pretended official authority or to

3-44     rely on his pretended official acts; or

3-45                 (2)  knowingly purports to exercise any function of a

3-46     public servant or of a public office, including that of  a judge

3-47     and court, and the position or office through which he purports to

3-48     exercise a function of a public servant or public office has no

3-49     lawful existence under the constitution or laws of this state or of

3-50     the United States.

3-51           (b)  An offense under this section is [a Class A misdemeanor

3-52     unless the person impersonated a peace officer, in which event it

3-53     is] a felony of the third degree.

3-54           SECTION 8.  Chapter 37, Penal Code, is amended by adding

3-55     Section 37.13 to read as follows:

3-56           Sec. 37.13.  RECORD OF A FRAUDULENT COURT.  (a)  A person

3-57     commits an offense if the person makes, presents, or uses any

3-58     document or other record with:

3-59                 (1)  knowledge that the document or other record is not

3-60     a record of a court created under or established by the

3-61     constitution or laws of this state or of the United States; and

3-62                 (2)  the intent that the document or other record be

3-63     given the same legal effect as a record of a court created under or

3-64     established by the constitution or laws of this state or of the

3-65     United States.

3-66           (b)  An offense under this section is a Class A misdemeanor,

3-67     except that the offense is a felony of the third degree if it is

3-68     shown on the trial of the offense that the defendant has previously

3-69     been convicted under this section on two or more occasions.

 4-1           (c)  If conduct that constitutes an offense under this

 4-2     section also constitutes an offense under Section 32.48 or 37.10,

 4-3     the actor may be prosecuted under any of those sections.

 4-4           SECTION 9.  Section 71.02(a), Penal Code, is amended to read

 4-5     as follows:

 4-6           (a)  A person commits an offense if, with the intent to

 4-7     establish, maintain, or participate in a combination or in the

 4-8     profits of a combination or as a member of a criminal street gang,

 4-9     he commits or conspires to commit one or more of the following:

4-10                 (1)  murder, capital murder, arson, aggravated robbery,

4-11     robbery, burglary, theft, aggravated kidnapping, kidnapping,

4-12     aggravated assault, aggravated sexual assault, sexual assault,

4-13     forgery, deadly conduct, assault punishable as a Class A

4-14     misdemeanor, burglary of a motor vehicle, or unauthorized use of a

4-15     motor vehicle;

4-16                 (2)  any gambling offense punishable as a Class A

4-17     misdemeanor;

4-18                 (3)  promotion of prostitution, aggravated promotion of

4-19     prostitution, or compelling prostitution;

4-20                 (4)  unlawful manufacture, transportation, repair, or

4-21     sale of firearms or prohibited weapons;

4-22                 (5)  unlawful manufacture, delivery, dispensation, or

4-23     distribution of a controlled substance or dangerous drug, or

4-24     unlawful possession of a controlled substance or dangerous drug

4-25     through forgery, fraud, misrepresentation, or deception;

4-26                 (6)  any unlawful wholesale promotion or possession of

4-27     any obscene material or obscene device with the intent to wholesale

4-28     promote the same;

4-29                 (7)  any unlawful employment, authorization, or

4-30     inducing of a child younger than 17 years of age in an obscene

4-31     sexual performance;

4-32                 (8)  any felony offense under Chapter 32, Penal Code;

4-33                 (9)  any offense under Chapter 36, Penal Code; [or]

4-34                 (10)  any offense under Chapter 34, Penal Code; or

4-35                 (11)  any offense under Section 37.11(a), Penal Code.

4-36           SECTION 10.  Chapter 37, Penal Code, is amended by adding

4-37     Section 37.101 to read as follows:

4-38           Sec. 37.101.  FRAUDULENT FILING OF FINANCING STATEMENT.  (a)

4-39     A person commits an offense if the person knowingly presents for

4-40     filing or causes to be presented for filing a financing statement

4-41     that the person knows:

4-42                 (1)  is forged;

4-43                 (2)  contains a material false statement; or

4-44                 (3)  is groundless.

4-45           (b)  An offense under Subsection (a)(1) is a felony of the

4-46     third degree, unless it is shown on the trial of the offense that

4-47     the person had previously been convicted under this section on two

4-48     or more occasions,  in which event the offense is a felony of the

4-49     second degree.  An offense under Subsection (a)(2) or (a)(3) is a

4-50     Class A misdemeanor, unless the person commits the offense with the

4-51     intent to defraud or harm another, in which event the offense is a

4-52     state jail felony.

4-53           SECTION 11.  Chapter 1, Code of Criminal Procedure, is

4-54     amended by adding Article 1.052 to read as follows:

4-55           Art. 1.052.  SIGNED PLEADINGS OF DEFENDANT.  (a)  A pleading,

4-56     motion, and other paper filed for or on behalf of a defendant

4-57     represented by an attorney must be signed by at least one attorney

4-58     of record in the attorney's name and state the attorney's address.

4-59     A defendant who is not represented by an attorney must sign any

4-60     pleading, motion, or other paper filed for or on the defendant's

4-61     behalf and state the defendant's address.

4-62           (b)  The signature of an attorney or a defendant constitutes

4-63     a certificate by the attorney or defendant that the person has read

4-64     the pleading, motion, or other paper and that to the best of the

4-65     person's knowledge, information, and belief formed after reasonable

4-66     inquiry that the instrument is not groundless and brought in bad

4-67     faith or groundless and brought for harassment, unnecessary delay,

4-68     or other improper purpose.

4-69           (c)  If a pleading, motion, or other paper is not signed, the

 5-1     court shall strike it unless it is signed promptly after the

 5-2     omission is called to the attention of the attorney or defendant.

 5-3           (d)  An attorney or defendant who files a fictitious pleading

 5-4     in a cause for an improper purpose described by Subsection (b) or

 5-5     who makes a statement in a pleading that the attorney or defendant

 5-6     knows to be groundless and false to obtain a delay of the trial of

 5-7     the cause or for the purpose of harassment shall be held guilty of

 5-8     contempt.

 5-9           (e)  If a pleading, motion, or other paper is signed in

5-10     violation of this article, the court, on motion or on its own

5-11     initiative, after notice and hearing, shall impose an appropriate

5-12     sanction, which may include an order to pay to the other party or

5-13     parties to the prosecution or to the general fund of the county in

5-14     which the pleading, motion, or other paper was filed the amount of

5-15     reasonable expenses incurred because of the filing of the pleading,

5-16     motion, or other paper, including reasonable attorney's fees.

5-17           (f)  A court shall presume that a pleading, motion, or other

5-18     paper is filed in good faith.  Sanctions under this article may not

5-19     be imposed except for good cause stated in the sanction order.

5-20           (g)  A plea of "not guilty" or "no contest" or "nolo

5-21     contendere" does not constitute a violation of this article.  An

5-22     allegation that an event took place or occurred on or about a

5-23     particular date does not constitute a violation of this article.

5-24           (h)  In this article, "groundless" means without basis in law

5-25     or fact and not warranted by a good faith argument for the

5-26     extension, modification, or reversal of existing law.

5-27           SECTION 12.  Chapter 13, Code of Criminal Procedure, is

5-28     amended by adding Article 13.26 to read as follows:

5-29           Art. 13.26.  SIMULATING LEGAL PROCESS.  An offense under

5-30     Section 32.46, 32.48, 32.49, or 37.13, Penal Code, may be

5-31     prosecuted either in the county from which any material document

5-32     was sent or in the county in which it was delivered.

5-33           SECTION 13.  Section 51.605(c), Government Code, is amended

5-34     to read as follows:

5-35           (c)  A clerk must successfully complete 20 hours of

5-36     continuing education courses in the performance of the duties of

5-37     office at least one time in each 24-month period. The 20 hours of

5-38     required continuing education courses must include at least one

5-39     hour of continuing education regarding fraudulent court documents

5-40     and fraudulent document filings.

5-41           SECTION 14.  Chapter 51, Government Code, is amended by

5-42     adding Subchapter J to read as follows:

5-43           SUBCHAPTER J.  CERTAIN FRAUDULENT RECORDS OR DOCUMENTS

5-44           Sec. 51.901.  FRAUDULENT DOCUMENT OR INSTRUMENT.  (a)  If a

5-45     clerk of the supreme court, clerk of the court of criminal appeals,

5-46     clerk of a court of appeals, district clerk, county clerk, district

5-47     and county clerk, or municipal clerk has a reasonable basis to

5-48     believe in good faith that a document or instrument previously

5-49     filed or recorded or offered or submitted for filing or for filing

5-50     and recording is fraudulent, the clerk shall:

5-51                 (1)  if the document is a purported judgment or other

5-52     document purporting to memorialize or evidence an act, an order, a

5-53     directive, or process of a purported court, provide written notice

5-54     of the filing, recording, or submission for filing or for filing

5-55     and recording to the stated or last known address of the person

5-56     against whom the purported judgment, act, order, directive, or

5-57     process is rendered; or

5-58                 (2)  if the document or instrument purports to create a

5-59     lien or assert a claim on real or personal property or an interest

5-60     in real or personal property, provide written notice of the filing,

5-61     recording, or submission for filing or for filing and recording to

5-62     the stated or last known address of the person named in the

5-63     document or instrument as the obligor or debtor and to any person

5-64     named as owning any interest in the real or personal property

5-65     described in the document or instrument.

5-66           (b)  A clerk shall provide written notice under Subsection

5-67     (a):

5-68                 (1)  not later than the second business day after the

5-69     date that the document or instrument is offered or submitted for

 6-1     filing or for filing and recording; or

 6-2                 (2)  if the document or instrument has been previously

 6-3     filed or recorded, not later than the second business day after the

 6-4     date that the clerk becomes aware that the document or instrument

 6-5     may be fraudulent.

 6-6           (c)  For purposes of this section, a document or instrument

 6-7     is presumed to be fraudulent if:

 6-8                 (1)  the document is a purported judgment or other

 6-9     document purporting to memorialize or evidence an act, an order, a

6-10     directive, or process of:

6-11                       (A)  a purported court or a purported judicial

6-12     entity not expressly created or established under the constitution

6-13     or the laws of this state or of the United States; or

6-14                       (B)  a purported judicial officer of a purported

6-15     court or purported judicial entity described by Paragraph (A); or

6-16                 (2)  the document or instrument purports to create a

6-17     lien or assert a claim against real or personal property or an

6-18     interest in real or personal property and:

6-19                       (A)  is not a document or instrument provided for

6-20     by the constitution or laws of this state or of the United States;

6-21                       (B)  is not created by implied or express consent

6-22     or agreement of the obligor, debtor, or the owner of the real or

6-23     personal property or an interest in the real or personal property,

6-24     if required under the laws of this state, or by implied or express

6-25     consent or agreement of an agent, fiduciary, or other

6-26     representative of that person; or

6-27                       (C)  is not an equitable, constructive, or other

6-28     lien imposed by a court with jurisdiction created or established

6-29     under the constitution or laws of this state or of the United

6-30     States.

6-31           Sec. 51.902.  ACTION ON FRAUDULENT JUDGMENT LIEN.  (a)  A

6-32     person against whom a purported judgment was rendered who has

6-33     reason to believe that a document previously filed or recorded or

6-34     submitted for filing or for filing and recording is fraudulent may

6-35     complete and file with the district clerk a motion, verified by

6-36     affidavit by a completed form for ordinary certificate of

6-37     acknowledgment, of the same type described by Section 121.007,

6-38     Civil Practice and Remedies Code, that contains, at a minimum, the

6-39     information in the following suggested form:

6-40                         MISC. DOCKET NO. __________

6-41     In Re:  A Purported                In the _______ Judicial District

6-42     Judgment Lien Against              In and For _____________________

6-43     (Name of Purported                 County, Texas                   

6-44     Debtor)

6-45         Motion for Judicial Review of a Documentation Purporting to

6-46                           Create a Judgment Lien

6-47           Now Comes (name) and files this motion requesting a judicial

6-48     determination of the status of a court, judicial entity, or

6-49     judicial officer purporting to have taken an action that is the

6-50     basis of a judgment lien filed in the office of said clerk, and in

6-51     support of the motion would show the court as follows:

6-52                                     I. 

6-53           (Name), movant herein, is the person against whom the

6-54     purported judgment was rendered.

6-55                                    II. 

6-56           On (date), in the exercise of the county clerk's official

6-57     duties as County Clerk of (county name) County, Texas, the county

6-58     clerk received and filed or filed and recorded the documentation

6-59     attached hereto and containing (number) pages.  Said documentation

6-60     purports to have been rendered on the basis of a judgment, act,

6-61     order, directive, or process of a court, judicial entity, or

6-62     judicial officer called therein "(name of purported court, judicial

6-63     entity, or judicial officer)" against one (name of purported

6-64     debtor).

6-65                                    III. 

6-66           Movant alleges that the purported court, judicial entity, or

6-67     judicial officer referred to in the attached documentation is one

6-68     described in Section 51.901(c)(1), Government Code, as not legally

6-69     created or established under the constitution or laws of this state

 7-1     or of the United States, and that the documentation should

 7-2     therefore not be accorded lien status.

 7-3                                    IV. 

 7-4           Movant further attests that the assertions contained herein

 7-5     are true and correct.

 7-6                                   PRAYER

 7-7           Movant requests the court to review the attached

 7-8     documentation and enter an order determining whether it should be

 7-9     accorded lien status, together with such other orders as the court

7-10     deems appropriate.

7-11                                               Respectfully submitted,  

7-12                                               _________________________

7-13                                               (Signature and typed name

7-14                                               and address)             

7-15           (b)  The completed form for ordinary certificate of

7-16     acknowledgment, of the same type described by Section 121.007,

7-17     Civil Practice and Remedies Code, must be as follows:

7-18                                  AFFIDAVIT

7-19     THE STATE OF TEXAS

7-20     COUNTY OF ______________

7-21           BEFORE ME, the undersigned authority, personally appeared

7-22     ____________, who, being by me duly sworn, deposed as follows:

7-23           "My name is __________________.  I am over 21 years of age,

7-24     of sound mind, with personal knowledge of the following facts, and

7-25     fully competent to testify.

7-26           I further attest that the assertions contained in the

7-27     accompanying motion are true and correct."

7-28           Further affiant sayeth not.

7-29                                      __________________________________

7-30                                 SUBSCRIBED and SWORN TO before me, this

7-31     _______ day of _________________________, ____.

7-32                                      __________________________________

7-33                                          NOTARY PUBLIC, State of Texas 

7-34                                              Notary's printed name:    

7-35                                              ______________________    

7-36                                              My commission expires:    

7-37                                              ________________________  

7-38           (c)  A motion filed under this section may be ruled on by a

7-39     district judge having jurisdiction over real property matters in

7-40     the county where the subject documentation was filed.  The court's

7-41     finding may be made solely on a review of the documentation

7-42     attached to the movant's motion and without hearing any testimonial

7-43     evidence.  The court's review may be made ex parte without delay or

7-44     notice of any kind.  The court's ruling on the motion, in the

7-45     nature of a finding of fact and a conclusion of law, is

7-46     unappealable if it is substantially similar to the form suggested

7-47     in Subsection (g).

7-48           (d)  The district clerk may not collect a filing fee for

7-49     filing a motion under this section.

7-50           (e)  After reviewing the documentation attached to a motion

7-51     under this section, the district judge shall enter an appropriate

7-52     finding of fact and conclusion of law, which must be filed and

7-53     indexed in the same class of records in which the subject

7-54     documentation or instrument was originally filed.

7-55           (f)  The county clerk may not collect a filing fee for filing

7-56     a district judge's finding of fact and conclusion of law under this

7-57     section.

7-58           (g)  A suggested form order appropriate to comply with this

7-59     section is as follows:

7-60                         MISC. DOCKET NO. __________

7-61     In Re:  A Purported                In the _______ Judicial District

7-62     Judgment Lien Against              In and For _____________________

7-63     (Name of Purported                 County, Texas                   

7-64     Debtor)

7-65               Judicial Finding of Fact and Conclusion of Law

7-66       Regarding a Documentation Purporting to Create a Judgment Lien

7-67           On the (number) day of (month), (year), in the above entitled

7-68     and numbered cause, this court reviewed a motion verified by

7-69     affidavit of (name) and the documentation attached thereto.  No

 8-1     testimony was taken from any party, nor was there any notice of the

 8-2     court's review, the court having made the determination that a

 8-3     decision could be made solely on review of the documentation under

 8-4     the authority vested in the court under Subchapter J, Chapter 51,

 8-5     Government Code.

 8-6           The court finds as follows (only an item checked and

 8-7     initialed is a valid court ruling):

 8-8     ______  The documentation attached to the motion herein refers to a

 8-9     legally constituted court, judicial entity, or judicial officer

8-10     created by or established under the constitution or laws of this

8-11     state or of the United States.  This judicial finding and

8-12     conclusion of law does not constitute a finding as to any

8-13     underlying claims of the parties.

8-14     ______  The documentation attached to the motion herein DOES NOT

8-15     refer to a legally constituted court, judicial entity, or judicial

8-16     officer created by or established under the constitution or laws of

8-17     this state or of the United States.  There is no valid judgment

8-18     lien created by the documentation.

8-19           This court makes no finding as to any underlying claims of

8-20     the parties involved and expressly limits its finding of fact and

8-21     conclusion of law to a ministerial act.  The county clerk shall

8-22     file this finding of fact and conclusion of law in the same class

8-23     of records as the subject documentation was originally filed, and

8-24     the court directs the county clerk to index it using the same names

8-25     that were used in indexing the subject document.

8-26           SIGNED ON THIS THE ________ DAY OF____________________.

8-27                                        _______________________________

8-28                                        DISTRICT JUDGE                   

8-29                                        ________ JUDICIAL DISTRICT     

8-30                                        _________________ COUNTY, TEXAS

8-31           Sec. 51.903.  ACTION ON FRAUDULENT LIEN ON PROPERTY.  (a)  A

8-32     person who is the purported debtor or obligor or who owns real or

8-33     personal property or an interest in real or personal property and

8-34     who has reason to believe that the document purporting to create a

8-35     lien or a claim against the real or personal property or an

8-36     interest in the real or personal property previously filed or

8-37     submitted for filing and recording is fraudulent may complete and

8-38     file with the district clerk a motion, verified by affidavit by a

8-39     completed form for ordinary certificate of acknowledgment, of the

8-40     same type described by Section 121.007, Civil Practice and Remedies

8-41     Code, that contains, at a minimum, the information in the following

8-42     suggested form:

8-43                         MISC. DOCKET NO. __________

8-44     In Re:  A Purported                In the _______ Judicial District

8-45     Lien or Claim Against              In and For _____________________

8-46     (Name of Purported                 County, Texas                   

8-47     Debtor)

8-48          Motion for Judicial Review of Documentation or Instrument

8-49                    Purporting to Create a Lien or Claim

8-50           Now Comes (name) and files this motion requesting a judicial

8-51     determination of the status of documentation or an instrument

8-52     purporting to create an interest in real or personal property or a

8-53     lien or claim on real or personal property or an interest in real

8-54     or personal property filed in the office of the Clerk of (county

8-55     name) County, Texas, and in support of the motion would show the

8-56     court as follows:

8-57                                     I. 

8-58           (Name), movant herein, is the purported obligor or debtor or

8-59     person who owns the real or personal property or the interest in

8-60     real or personal property described in the documentation or

8-61     instrument.

8-62                                    II. 

8-63           On (date), in the exercise of the county clerk's official

8-64     duties as County Clerk of (county name) County, Texas, the county

8-65     clerk received and filed and recorded the documentation or

8-66     instrument attached hereto and containing (number) pages.  Said

8-67     documentation or instrument purports to have created a lien on real

8-68     or personal property or an interest in real or personal property

8-69     against one (name of purported debtor).

 9-1                                    III. 

 9-2           Movant alleges that the documentation or instrument attached

 9-3     hereto is fraudulent, as defined by Section 51.901(c)(2),

 9-4     Government Code, and that the documentation or instrument should

 9-5     therefore not be accorded lien status.

 9-6                                    IV. 

 9-7           Movant attests that assertions herein are true and correct.

 9-8                                     V. 

 9-9           Movant does not request the court to make a finding as to any

9-10     underlying claim of the parties involved and acknowledges that this

9-11     motion does not seek to invalidate a legitimate lien.  Movant

9-12     further acknowledges that movant may be subject to sanctions, as

9-13     provided by Chapter 10, Civil Practice and Remedies Code, if this

9-14     motion is determined to be frivolous.

9-15                                   PRAYER

9-16           Movant requests the court to review the attached

9-17     documentation or instrument and enter an order determining whether

9-18     it should be accorded lien status, together with such other orders

9-19     as the court deems appropriate.

9-20                                               Respectfully submitted,  

9-21                                               _________________________

9-22                                               (Signature and typed name

9-23                                               and address)             

9-24           (b)  The completed form for ordinary certificate of

9-25     acknowledgment, of the same type described by Section 121.007,

9-26     Civil Practice and Remedies Code, must be as follows:

9-27                                  AFFIDAVIT

9-28     THE STATE OF TEXAS

9-29     COUNTY OF _____________

9-30           BEFORE ME, the undersigned authority, personally appeared

9-31     _____________, who, being by me duly sworn, deposed as follows:

9-32           "My name is _________________.  I am over 21 years of age, of

9-33     sound mind, with personal knowledge of the following facts, and

9-34     fully competent to testify.

9-35           I further attest that the assertions contained in the

9-36     accompanying motion are true and correct."

9-37           Further affiant sayeth not.

9-38                                      __________________________________

9-39                                 SUBSCRIBED and SWORN TO before me, this

9-40     _______ day of ___________________, ____.

9-41                                     ___________________________________

9-42                                          NOTARY PUBLIC, State of Texas 

9-43                                              Notary's printed name:    

9-44                                              ______________________    

9-45                                              My commission expires:    

9-46                                              ______________________    

9-47           (c)  A motion under this section may be ruled on by a

9-48     district judge having jurisdiction over real property matters in

9-49     the county where the subject document was filed.  The court's

9-50     finding may be made solely on a review of the documentation or

9-51     instrument attached to the motion and without hearing any

9-52     testimonial evidence.  The court's review may be made ex parte

9-53     without delay or notice of any kind.  An appellate court shall

9-54     expedite review of a court's finding under this section.

9-55           (d)  The district clerk may not collect a filing fee for

9-56     filing a motion under this section.

9-57           (e)  After reviewing the documentation or instrument attached

9-58     to a motion under this section, the district judge shall enter an

9-59     appropriate finding of fact and conclusion of law, which must be

9-60     filed and indexed in the same class of records in which the subject

9-61     documentation or instrument was originally filed.  A copy of the

9-62     finding of fact and conclusion of law shall be sent, by first class

9-63     mail, to the movant and to the person who filed the fraudulent lien

9-64     or claim at the last known address of each person within seven days

9-65     of the date that the finding of fact and conclusion of law is

9-66     issued by the judge.

9-67           (f)  The county clerk may not collect a fee for filing a

9-68     district judge's finding of fact and conclusion of law under this

9-69     section.

 10-1          (g)  A suggested form order appropriate to comply with this

 10-2    section is as follows:

 10-3                        MISC. DOCKET NO. __________

 10-4    In Re:  A Purported                In the _______ Judicial District

 10-5    Lien or Claim Against              In and For _____________________

 10-6    (Name of Purported                 County, Texas                   

 10-7    Debtor)

 10-8        Judicial Finding of Fact and Conclusion of Law Regarding a

 10-9     Documentation or Instrument Purporting to Create a Lien or Claim

10-10          On the (number) day of (month), (year), in the above entitled

10-11    and numbered cause, this court reviewed a motion, verified by

10-12    affidavit, of (name) and the documentation or instrument attached

10-13    thereto.  No testimony was taken from any party, nor was there any

10-14    notice of the court's review, the court having made the

10-15    determination that a decision could be made solely on review of the

10-16    documentation or instrument under the authority vested in the court

10-17    under Subchapter J, Chapter 51, Government Code.

10-18          The court finds as follows (only an item checked and

10-19    initialed is a valid court ruling):

10-20    _______  The documentation or instrument attached to the motion

10-21    herein IS asserted against real or personal property or an interest

10-22    in real or personal property and:

10-23                (1)  IS provided for by specific state or federal

10-24    statutes or constitutional provisions;

10-25                (2)  IS created by implied or express consent or

10-26    agreement  of the obligor, debtor, or the owner of the real or

10-27    personal property or an interest in the real or personal property,

10-28    if required under the laws of this state, or by consent of an

10-29    agent, fiduciary, or other representative of that person; or

10-30                (3)  IS an equitable, constructive, or other lien

10-31    imposed by a court of competent  jurisdiction created or

10-32    established under the constitution or laws of this state or of the

10-33    United States.

10-34    _______  The documentation or instrument attached to the motion

10-35    herein:

10-36                (1)  IS NOT provided for by specific state or federal

10-37    statutes or constitutional provisions;

10-38                (2)  IS NOT created by implied or express consent or

10-39    agreement of the obligor, debtor, or the owner of the real or

10-40    personal property or an interest in the real or personal property,

10-41    if required under the law of this state or by implied or express

10-42    consent or agreement of an agent, fiduciary, or other

10-43    representative of that person;

10-44                (3)  IS NOT an equitable, constructive, or other lien

10-45    imposed by a court of competent jurisdiction created by or

10-46    established under the constitution or laws of this state or the

10-47    United States; or

10-48                (4)  IS NOT asserted against real or personal property

10-49    or an interest in real or personal property.  There is no valid

10-50    lien or claim created by this documentation or instrument.

10-51          This court makes no finding as to any underlying claims of

10-52    the parties involved, and expressly limits its finding of fact and

10-53    conclusion of law to the review of a ministerial act.  The county

10-54    clerk shall file this finding of fact and conclusion of law in the

10-55    same class of records as the subject documentation or instrument

10-56    was originally filed, and the court directs the county clerk to

10-57    index it using the same names that were used in indexing the

10-58    subject documentation or instrument.

10-59          SIGNED ON THIS THE ________ DAY OF____________________.

10-60                                       _______________________________

10-61                                       DISTRICT JUDGE                   

10-62                                       ________ JUDICIAL DISTRICT     

10-63                                       _________________ COUNTY, TEXAS

10-64          Sec. 51.904.  WARNING SIGN.  A clerk described by Section

10-65    51.901(a) shall post a sign, in letters at least one inch in

10-66    height, that is clearly visible to the general public in or near

10-67    the clerk's office stating that it is a crime to intentionally or

10-68    knowingly file a fraudulent court record or a fraudulent instrument

10-69    with the clerk.

 11-1          Sec. 51.905.  DOCUMENTS FILED WITH SECRETARY OF STATE.

 11-2    (a)  If the lien or other claim that is the subject of a judicial

 11-3    finding of fact and conclusion of law authorized by this subchapter

 11-4    is one that is authorized by law to be filed with the secretary of

 11-5    state, any person may file a certified copy of the judicial finding

 11-6    of fact and conclusion of law in the records of the secretary of

 11-7    state, who shall file the certified copy of the finding in the same

 11-8    class of records as the subject document or instrument was

 11-9    originally filed and index it using the same names that were used

11-10    in indexing the subject document or instrument.

11-11          (b)  The secretary of state may charge a filing fee of $15

11-12    for filing a certified copy of a judicial finding of fact and

11-13    conclusion of law under this section.

11-14          SECTION 15.  Section 12.013, Property Code, is amended to

11-15    read as follows:

11-16          Sec. 12.013.  JUDGMENT.  A judgment or an abstract of a

11-17    judgment of a court [in this state] may be recorded if:

11-18                (1)  the judgment is of a court:

11-19                      (A)  expressly created or established under the

11-20    constitution or laws of this state or of the United States;

11-21                      (B)  that is a court of a foreign country and

11-22    that is recognized by an Act of congress or a treaty or other

11-23    international convention to which the United States is a party; or

11-24                      (C)  of any other jurisdiction, territory, or

11-25    protectorate entitled to full faith and credit in this state under

11-26    the Constitution of the United States; and

11-27                (2)  the judgment is attested under the signature and

11-28    seal of the clerk of the court that rendered the judgment.

11-29          SECTION 16.  Subtitle A, Title 2, Civil Practice and Remedies

11-30    Code, is amended by adding Chapter 11 to read as follows:

11-31            CHAPTER 11. LIABILITY RELATED TO A FRAUDULENT COURT

11-32          RECORD OR A FRAUDULENT LIEN OR CLAIM FILED AGAINST REAL

11-33                           OR PERSONAL PROPERTY

11-34          Sec. 11.001.  DEFINITIONS.  In this chapter:

11-35                (1)  "Court record" has the meaning assigned by Section

11-36    37.01, Penal Code.

11-37                (2)  "Exemplary damages" has the meaning assigned by

11-38    Section 41.001.

11-39                (3)  "Lien" means a claim in property for the payment

11-40    of a debt and includes a security interest.

11-41                (4)  "Public servant" has the meaning assigned by

11-42    Section 1.07, Penal Code, and includes officers and employees of

11-43    the United States.

11-44          Sec. 11.002.  LIABILITY.  (a)  A person may not make,

11-45    present, or use a document or other record with:

11-46                (1)  knowledge that the document or other record is a

11-47    fraudulent court record or a fraudulent lien or claim against real

11-48    or personal property or an interest in real or personal property;

11-49                (2)  intent that the document or other record be given

11-50    the same legal effect as a court record or document of a court

11-51    created by or established under the constitution or laws of this

11-52    state or the United States or another entity listed in Section

11-53    37.01, Penal Code, evidencing a valid lien or claim against real or

11-54    personal property or an interest in real or personal property; and

11-55                (3)  intent to cause another person to suffer:

11-56                      (A)  physical injury;

11-57                      (B)  financial injury; or

11-58                      (C)  mental anguish or emotional distress.

11-59          (b)  A person who violates Subsection (a) is liable to each

11-60    injured person for:

11-61                (1)  the greater of:

11-62                      (A)  $10,000; or

11-63                      (B)  the actual damages caused by the violation;

11-64                (2)  court costs;

11-65                (3)  reasonable attorney's fees; and

11-66                (4)  exemplary damages in an amount determined by the

11-67    court.

11-68          Sec. 11.003.  CAUSE OF ACTION.  (a)  The following persons

11-69    may bring an action to enjoin violation of this chapter or to

 12-1    recover damages under this chapter:

 12-2                (1)  the attorney general;

 12-3                (2)  a district attorney;

 12-4                (3)  a criminal district attorney;

 12-5                (4)  a county attorney with felony responsibilities;

 12-6                (5)  a county attorney;

 12-7                (6)  a municipal attorney;

 12-8                (7)  in the case of a fraudulent judgment lien, the

 12-9    person against whom the judgment is rendered; and

12-10                (8)  in the case of a fraudulent lien or claim against

12-11    real or personal property or an interest in real or personal

12-12    property, the obligor or debtor, or a person who owns an interest

12-13    in the real or personal property.

12-14          (b)  Notwithstanding any other law, a person or a person

12-15    licensed or regulated by Chapter 9, Insurance Code (the Texas Title

12-16    Insurance Act), does not have a duty to disclose a fraudulent, as

12-17    described by Section 51.901(c), Government Code, court record,

12-18    document, or instrument purporting to create a lien or purporting

12-19    to assert a claim on real property or an interest in real property

12-20    in connection with a sale, conveyance, mortgage, or other transfer

12-21    of the real property or interest in real property.

12-22          (c)  Notwithstanding any other law, a purported judgment lien

12-23    or document establishing or purporting to establish a judgment lien

12-24    against property in this state, that is issued or purportedly

12-25    issued by a court or a purported court other than a court

12-26    established under the laws of this state or the United States, is

12-27    void and has no effect in the determination of any title or right

12-28    to the property.

12-29          Sec. 11.004.  VENUE.  An action under this chapter may be

12-30    brought in any district court in the county in which the recorded

12-31    document is recorded or in which the real property is located.

12-32          Sec. 11.005.  FILING FEES.  (a)  The fee for filing an action

12-33    under this chapter is $15.  The plaintiff must pay the fee to the

12-34    clerk of the court in which the action is filed.  Except as

12-35    provided by Subsection (b), the plaintiff may not be assessed any

12-36    other fee, cost, charge, or expense by the clerk of the court or

12-37    other public official in connection with the action.

12-38          (b)  The fee for service of notice of an action under this

12-39    section charged to the plaintiff may not exceed:

12-40                (1)  $20 if the notice is delivered in person; or

12-41                (2)  the cost of postage if the service is by

12-42    registered or certified mail.

12-43          (c)  A plaintiff who is unable to pay the filing fee and fee

12-44    for service of notice may file with the court an affidavit of

12-45    inability to pay under the Texas Rules of Civil Procedure.

12-46          (d)  If the fee imposed under Subsection (a) is less than the

12-47    filing fee the court imposes for filing other similar actions and

12-48    the plaintiff prevails in the action, the court may order a

12-49    defendant to pay to the court the differences between the fee paid

12-50    under Subsection (a) and the filing fee the court imposes for

12-51    filing other similar actions.

12-52          Sec. 11.006.  PLAINTIFF'S COSTS.  (a)  The court shall award

12-53    the plaintiff the costs of bringing the action if:

12-54                (1)  the plaintiff prevails; and

12-55                (2)  the court finds that the defendant, at the time

12-56    the defendant caused the recorded document to be recorded or filed,

12-57    knew or should have known that the recorded document is fraudulent,

12-58    as described by Section 51.901(c), Government Code.

12-59          (b)  For purposes of this section, the costs of bringing the

12-60    action include all court costs, attorney's fees, and related

12-61    expenses of bringing the action, including investigative expenses.

12-62          Sec. 11.007.  EFFECT ON OTHER LAW.  This law is cumulative of

12-63    other law under which a person may obtain judicial relief with

12-64    respect to a recorded document or other record.

12-65          SECTION 17.  Section 9.412(c), Business & Commerce Code, is

12-66    repealed.

12-67          SECTION 18.  An action for an order under Subchapter J,

12-68    Chapter 51, Government Code, as added by this Act, may be brought

12-69    with respect to a recorded document or instrument without regard to

 13-1    whether the document or instrument was filed before, on, or after

 13-2    the effective date of this Act.

 13-3          SECTION 19.  A clerk must successfully complete one hour of

 13-4    continuing education regarding fraudulent court documents and

 13-5    fraudulent document filings required by Section 51.605(c),

 13-6    Government Code, as amended by this Act, before September 1, 1998.

 13-7          SECTION 20.  The change in law made by Section 16 of this Act

 13-8    applies only to a cause of action that accrues on or after the

 13-9    effective date of this Act.  A cause of action that accrues before

13-10    the effective date of this Act is governed by the law in effect on

13-11    the date the cause of action accrues, and that law is continued in

13-12    effect for this purpose.

13-13          SECTION 21.  (a)  The change in law made by this Act applies

13-14    only to a criminal offense committed on or after the effective date

13-15    of this Act.  For the purposes of this Act, a criminal offense is

13-16    committed before the effective date of this Act if any element of

13-17    the offense occurs before that date.

13-18          (b)  An offense committed before the effective date of this

13-19    Act is covered by the law in effect when the criminal offense was

13-20    committed, and the former law is continued in effect for this

13-21    purpose.

13-22          SECTION 22.  The importance of this legislation and the

13-23    crowded condition of the calendars in both houses create an

13-24    emergency and an imperative public necessity that the

13-25    constitutional rule requiring bills to be read on three several

13-26    days in each house be suspended, and this rule is hereby suspended,

13-27    and that this Act take effect and be in force from and after its

13-28    passage, and it is so enacted.

13-29                                 * * * * *