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.