By Lucio                                              S.B. No. 1195

         Substitute the following for S.B. No. 1195:

         By Dukes                                          C.S.S.B. No. 1195

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to relating to form specifications for the recording of

 1-3     certain legal instruments.

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

 1-5           SECTION 1.  Subsection (b), Section 191.007, Local Government

 1-6     Code, is amended to read as follows:

 1-7           (b)  A page is considered to be one side of a sheet of paper.

 1-8     A page must:

 1-9                 (1)  be a single sheet no wider than 8 1/2 inches and

1-10     no longer than 14 inches;

1-11                 (2)  have a sufficient weight and substance so that

1-12     printing, typing, or handwriting on it will not smear or bleed

1-13     through; and

1-14                 (3)  be printed in type not smaller than eight-point

1-15     type and be suitable otherwise for reproducing from it a readable

1-16     record by a photocopy or photostatic or microphotographic process

1-17     or electronic imaging used in the office of the county clerk.

1-18           SECTION 2.  Chapter 191, Local Government Code, is amended by

1-19     adding Section 191.009 to read as follows:

1-20           Sec. 191.009.  RECORDER'S INDEX INFORMATION.  (a)  When any

1-21     instrument is presented to a county clerk for recording in the

1-22     official public records of real property, the first page of the

1-23     instrument shall have a top margin of at least three inches and a

1-24     one-inch margin on the bottom and sides without printing, typing,

 2-1     or writing in the margins other than form references, form names,

 2-2     form dates, borders, graphics, file numbers, parcel numbers, or

 2-3     names of parties filing the instrument, and contain the following

 2-4     information, in the order indicated:

 2-5                 (1)  on the top left-hand side of the page, the name

 2-6     and address of the person to whom the original instrument will be

 2-7     returned and, if applicable, the name of the title company or law

 2-8     firm requesting the instrument to be filed;

 2-9                 (2)  the title of the instrument;

2-10                 (3)  the name of the grantor, with reference to the

2-11     instrument page number where additional names are to be found, if

2-12     applicable, provided that, for the purpose of this section, the

2-13     term "grantor" includes any person conveying or encumbering the

2-14     title to any property or any person against whom any lis pendens,

2-15     judgment, notice of lien, order of sale, execution, writ of

2-16     attachment, or claim of property shall be placed on record;

2-17                 (4)  the name of the grantee, with reference to the

2-18     instrument page number where additional names are to be found, if

2-19     applicable, provided that, for the purpose of this section, the

2-20     term "grantee" includes any person granted or receiving a

2-21     conveyance or encumbrance of the property or an interest in the

2-22     property, the beneficiary or creditor under or in a mortgage or

2-23     other lien, the person who makes a claim under or as reflected by a

2-24     lis pendens, judgment, notice of lien, order of sale, execution,

2-25     writ of attachment, or claim of property; and

2-26                 (5)  one of the following, if applicable:

2-27                       (A)  a legal description of the real property;

 3-1                       (B)  a brief description of the real property and

 3-2     reference to the instrument page number where the full legal

 3-3     description is included; or

 3-4                       (C)  the county clerk's file number, film code

 3-5     number, or volume, page, and book reference of the instrument

 3-6     describing the real property.

 3-7           (b)  If an instrument presented for recording does not

 3-8     contain the information required by Subsection (a) and the

 3-9     instrument is not a deed, deed of trust, mortgage, release,

3-10     assignment, water district notice, notice of restrictions,

3-11     easement, option, or lease, the person drafting or filing the

3-12     instrument for recording shall prepare a cover sheet.  A person

3-13     licensed under Chapter 9, Insurance Code, may not prepare a cover

3-14     sheet unless the person is an attorney.  The cover sheet must be

3-15     attached to the instrument and must contain the information

3-16     required by Subsection (a) and meet the requirements prescribed by

3-17     Section 191.007(a).  No additional page fee as determined under

3-18     Section 118.011(a)(2) shall be collected for recording the cover

3-19     sheet.  Any errors in the cover sheet or recorder's index

3-20     information or failure of the cover sheet or recorder's index

3-21     information to comply with this section shall not affect the

3-22     validity or enforceability of, or notice imparted by, the

3-23     instrument.  The cover sheet need not be separately signed or

3-24     acknowledged.  The county clerk may rely on the information

3-25     required by this section to generate a grantor-grantee index;

3-26     however, the validity or enforceability of, or notice imparted by,

3-27     the instrument shall be determined by the instrument.

 4-1           (c)  If the instrument does not comply with Subsections (a)

 4-2     and (b), the county clerk shall charge a penalty filing fee equal

 4-3     to the lesser of the statutory recording fee provided by other law

 4-4     for the instrument presented for recording in the official public

 4-5     records of real property or $25.  No more than one penalty filing

 4-6     fee may be charged for each instrument filed.

 4-7           (d)  The only instruments exempt from the provisions of this

 4-8     section are federal tax liens, release of federal tax liens, state

 4-9     tax liens, release of state tax liens, and standard financing

4-10     statements.

4-11           SECTION 3.  This Act takes effect January 1, 1998.

4-12           SECTION 4.  The importance of this legislation and the

4-13     crowded condition of the calendars in both houses create an

4-14     emergency and an imperative public necessity that the

4-15     constitutional rule requiring bills to be read on three several

4-16     days in each house be suspended, and this rule is hereby suspended.