By Chisum H.B. No. 1877 75R7507 T A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to creation of an Electronic Recording Task force and to 1-3 certain electronic recording. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Chapter 194, Local Government Code, is amended by 1-6 adding Section 194.003 to read as follows: 1-7 Section 194.003. Electronic Recording. (a) An Electronic 1-8 Recording Task Force shall consist of thirteen (13) members: 1-9 (1) four (4) persons selected by The County and 1-10 District Clerks Association of Texas; 1-11 (2) four (4) persons selected by the Texas Land Title 1-12 Association; 1-13 (3) two (2) electronic or computer vendors selected by 1-14 The County and District Clerks Association of Texas; 1-15 (4) two (2) electronic or computer vendors selected by 1-16 the Texas Land Title Association; and 1-17 (5) the Chair of the Electronic Recording Task Force, 1-18 who shall be the Executive Director of the Texas State Library and 1-19 Archives Commission. 1-20 Notice of the selection of the members of the Electronic Recording 1-21 Task Force shall be provided to the Texas State Library and 1-22 Archives Commission on or before September 1, 1997. If any member 1-23 of the Task Force resigns, fails or refuses to serve, or is unable 1-24 to serve for any reason, the Association that selected the original 2-1 member shall select the replacement. 2-2 (b) The Electronic Recording Task Force may make written 2-3 recommendations to the Texas State Library and Archives Commission 2-4 on or before December 31, 1997 for Electronic Recording Rules 2-5 relating to the filing and recording of instruments in the public 2-6 records of the County and/or District Clerk. The written 2-7 recommendations of the Electronic Recording Task Force must be 2-8 approved by ten (10) or more of its members. If the Electronic 2-9 Recording Task Force makes written recommendations, the Texas State 2-10 Library and Archives Commission may adopt Electronic Recording 2-11 Rules. The written recommendations and the Electronic Recording 2-12 Rules may relate to all or a portion of public records, including 2-13 real property records. 2-14 (c) Definitions: 2-15 (1) For purposes of this Section, "Electronic 2-16 Recording Rules" means rules for transmission, filing, and 2-17 retention of instruments filed electronically or by use of other 2-18 technological means. 2-19 (2) For purposes of this Section, "public records" 2-20 means the records maintained by a county clerk or district clerk. 2-21 (d) The Electronic Recording Task Force may make written 2-22 recommendations on or before December 31, 1998 for adoption of laws 2-23 relating to electronic filing of instruments in the public records. 2-24 The written recommendations of the Electronic Recording Task Force 2-25 must be approved by ten (10) or more of its members. 2-26 (e) If the Texas State Library and Archives Commission 2-27 adopts Electronic Recording Rules, the county clerk or district 3-1 clerk may, in his or her sole discretion, accept for recording, in 3-2 lieu of a written instrument or document eligible for recording in 3-3 the public records which are subject to the Electronic Recording 3-4 Rules, an instrument which is transmitted for filing electronically 3-5 in accordance with the Electronic Recording Rules, provided the 3-6 original instrument or document is eligible for recordation under 3-7 applicable law. If the instrument is electronically recorded by 3-8 the county or district clerk, the instrument shall be conclusively 3-9 presumed to comply with the Electronic Recording Rules. Unless the 3-10 electronic duplication of the instrument evidences the failure of 3-11 the original instrument to comply with applicable law for 3-12 recordation of instruments, the instrument shall be presumed to 3-13 comply with that law. 3-14 (f) The county clerk or district clerk who accepts 3-15 electronic filing of instruments pursuant to the Electronic 3-16 Recording Rules adopted by the Texas State Library and Archives 3-17 Commission must require that original or duplicate paper 3-18 instruments also be filed in order for the electronic filing to be 3-19 effective and must maintain a paper, optical image or microfilm 3-20 copy of the instruments pursuant to applicable law other than this 3-21 section as public records. The applicable filing fees shall be 3-22 paid for the filing of the original or duplicate paper instruments 3-23 and no additional filing fee may be charged for the electronic 3-24 filing of instruments. The county clerk or district clerk who 3-25 accepts electronic filing of instruments pursuant to the Electronic 3-26 Recording Rules adopted by the Texas State Library and Archives 3-27 Commission must make available to the public upon request for 4-1 review and/or copying promptly after recordation any instrument or 4-2 document that is filed with the county clerk or district clerk 4-3 pursuant to the Electronic Recording Rules and relevant statutes. 4-4 (g) This chapter applies, to the extent feasible, to the 4-5 electronic data storage process, the electronic technology used in 4-6 that process, and the records stored by that process pursuant to 4-7 the Electronic Recording Rules in a manner equivalent to the manner 4-8 in which this chapter applies to a microfilm process, the film used 4-9 in that process, and the records stored by that process. 4-10 (h) Any instrument filed pursuant to the Electronic 4-11 Recording Rules adopted by the Texas State Library and Archives 4-12 Commission shall be considered recorded and a public record. 4-13 (i) This Section shall not apply to instruments or documents 4-14 filed with the county clerk or district clerk after December 31, 4-15 1999 and shall expire on January 1, 2000. 4-16 SECTION 2. This Act takes effect immediately. 4-17 SECTION 3. The importance of this legislation and the 4-18 crowded condition of the calendars in both houses create an 4-19 emergency and an imperative public necessity that the 4-20 constitutional rule requiring bills to be read on three several 4-21 days in each house be suspended, and this rule is hereby suspended.