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.