75R10654 CAG-F                           

         By Chisum                                             H.B. No. 1877

         Substitute the following for H.B. No. 1877:

         By Lewis of Orange                                C.S.H.B. No. 1877

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the recording of certain documents by electronic means

 1-3     and to the creation of an electronic recording advisory committee.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Chapter 205, Local Government Code, is amended by

 1-6     adding Section 205.010 to read as follows:

 1-7           Sec. 205.010.  ELECTRONIC RECORDING ADVISORY COMMITTEE.  (a)

 1-8     In this section, "real property records" means the deed records,

 1-9     deed of trust records, and other records maintained by a county

1-10     clerk relating to real property located in the county.

1-11           (b)  The electronic recording advisory committee is created.

1-12     The advisory committee consists of 16 members appointed or selected

1-13     as follows:

1-14                 (1)  four county clerks selected by the County and

1-15     District Clerks Association of Texas, or their designees;

1-16                 (2)  four persons selected by the Texas Land Title

1-17     Association, or their designees, one of whom is employed by or is

1-18     an officer of a rural or small urban agent, one of whom is employed

1-19     by or is an officer of a metropolitan agent, and one of whom is

1-20     employed by or is an officer of a title insurer;

1-21                 (3)  two persons selected by the County Judges and

1-22     Commissioners Association of Texas, or their designees;

1-23                 (4)  one person selected by the Independent Title

1-24     Association of Texas, Incorporated, or the person's designee; and

 2-1                 (5)  the following state officers or the officer's

 2-2     designee:

 2-3                       (A)  the attorney general;

 2-4                       (B)  the comptroller;

 2-5                       (C)  the executive director of the General

 2-6     Services Commission;

 2-7                       (D)  the executive director of the Department of

 2-8     Information Resources; and

 2-9                       (E)  the director and librarian of the Texas

2-10     State Library and Archives Commission.

2-11           (c)  The director and librarian of the Texas State Library

2-12     and Archives Commission is the presiding officer of the advisory

2-13     committee.

2-14           (d)  Notice of the selection of the members of the advisory

2-15     committee shall be provided to the Texas State Library and Archives

2-16     Commission on or before September 1, 1997.  If a member of the

2-17     advisory committee selected by an association under Subsection (b)

2-18     resigns, fails or refuses to serve, or is unable to serve for any

2-19     reason, the association that selected the original member shall

2-20     select a replacement member.

2-21           (e)  A meeting of the advisory committee shall be held at the

2-22     call of the presiding officer.  A meeting is subject to Chapter

2-23     551, Government Code.

2-24           (f)  The advisory committee may make recommendations under

2-25     this section only if:

2-26                 (1)  nine or more members of the advisory committee are

2-27     present; and

 3-1                 (2)  all present members, except three or fewer

 3-2     members, vote in favor of making the recommendation.

 3-3           (g)  The advisory committee may make written recommendations

 3-4     to the Texas State Library and Archives Commission on or before

 3-5     December 31, 1997, concerning the adoption of rules relating to the

 3-6     recording of instruments or documents in real property or official

 3-7     public records by electronic means.  The recommendations:

 3-8                 (1)  shall provide that accessibility by electronic

 3-9     means shall be made with existing and generally accepted

3-10     technological systems; and

3-11                 (2)  may not require any proprietary cost or investment

3-12     expenses for accessibility by electronic means to any person who in

3-13     the normal course of business is responsible for presenting

3-14     instruments or documents for recording.

3-15           (h)  If the advisory committee makes written recommendations

3-16     under this section, the Texas State Library and Archives Commission

3-17     may adopt rules to permit a county clerk to record instruments or

3-18     documents by electronic means in the real property or official

3-19     public records.

3-20           (i)  If the Texas State Library and Archives Commission

3-21     adopts rules under Subsection (h), the county clerk may, in the

3-22     clerk's discretion, accept for recording by electronic means in

3-23     accordance with the rules an instrument or document eligible for

3-24     recording in the real property or official public records. The

3-25     county clerk who accepts an electronic filing under this subsection

3-26     must require that the original instrument or document also be filed

3-27     or that a paper copy of the instrument or document be generated by

 4-1     that county clerk in order for the electronic filing to be

 4-2     effective.

 4-3           (j)  If an instrument or  document  is recorded under

 4-4     Subsection (i), the electronic filing is considered to have been

 4-5     recorded in compliance with any law relating to the recording of

 4-6     instruments or documents in the real property or official public

 4-7     records as of the date of the receipt of the original paper

 4-8     instrument or document or the generation of a paper copy of the

 4-9     instrument or document. The county clerk shall maintain a paper,

4-10     microfilm, or optical image of the instrument or document under any

4-11     other applicable law other than this section.

4-12           (k)  A county clerk shall collect filing fees as provided by

4-13     Section 118.011 and any other law for an instrument or document

4-14     filed under this section regardless of whether the original

4-15     instrument or document is also filed or a paper copy is generated

4-16     by the clerk. The clerk may not charge an additional fee for

4-17     recording an instrument under this section.

4-18           (l)  The retention and other disposition of instruments or

4-19     documents recorded by electronic means and the original or paper

4-20     copies of the instruments or documents required by this section is

4-21     controlled by the rules adopted by the Texas State Library and

4-22     Archives Commission under Sections 203.048, 204.004, and 205.003 of

4-23     this code and Section 441.158, Government Code. An electronically

4-24     recorded instrument or document or an original or paper copy of the

4-25     instrument or document is a local government record under Section

4-26     201.003(8)(A).

4-27           (m)  The advisory committee may make written recommendations

 5-1     to the lieutenant governor, the speaker of the house of

 5-2     representatives, and the Texas State Library and Archives

 5-3     Commission on or before December 31, 1998, concerning the need for

 5-4     any statutory changes relating to the recording of instruments or

 5-5     documents by electronic means in the real property or official

 5-6     public records.

 5-7           (n)  This section and any rules adopted under this section

 5-8     expire January 1, 2000.  On and after that date, an instrument or

 5-9     document may not be recorded by electronic means unless allowed by

5-10     another law.

5-11           SECTION 2.  Section 441.165, Government Code, is amended to

5-12     read as follows:

5-13           Sec. 441.165.  CERTAIN COMMISSION RULES.  Rules and any

5-14     revisions to the rules developed under Sections 203.048, 204.004,

5-15     [and] 205.003, and 205.010, Local Government Code, must be approved

5-16     by the local government records committee established under Section

5-17     441.161.

5-18           SECTION 3.  The importance of this legislation and the

5-19     crowded condition of the calendars in both houses create an

5-20     emergency and an imperative public necessity that the

5-21     constitutional rule requiring bills to be read on three several

5-22     days in each house be suspended, and this rule is hereby suspended,

5-23     and that this Act take effect and be in force from and after its

5-24     passage, and it is so enacted.