By:  Lucio                                   S.B. No. 1195

         97S0434/1                           

                                A BILL TO BE ENTITLED

                                       AN ACT

 1-1     relating to form specifications for the recording of certain legal

 1-2     instruments.

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1.  Subsection (b), Section 191.007, Local Government

 1-5     Code, is amended to read as follows:

 1-6           (b)  A page is considered to be one side of a sheet of paper.

 1-7     A page must:

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

 1-9     no longer than 14 inches;

1-10                 (2)  have at the top, bottom, and sides at least a

1-11     one-inch margin unless specified otherwise in this chapter;

1-12                 (3)  have a sufficient weight and substance so that

1-13     printing, typing, or handwriting on it will not smear or bleed

1-14     through; and

1-15                 (4) [(3)]  be printed in type not smaller than

1-16     eight-point type and be suitable otherwise for reproducing from it

1-17     a readable record by a photocopy or photostatic or

1-18     microphotographic process or electronic imaging used in the office

1-19     of the county clerk.

1-20           SECTION 2.  Chapter 191, Local Government Code, is amended by

1-21     adding Section 191.009 to read as follows:

1-22           Sec. 191.009.  RECORDER'S INDEX INFORMATION.  (a)  When any

1-23     instrument is presented to a county clerk for recording in the

 2-1     official public records of real property, the first page of the

 2-2     instrument shall have a top margin of at least three inches and a

 2-3     one-inch margin on the bottom and sides 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 term

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

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

2-15     notice of lien, order of sale, execution, writ of attachment, or

2-16     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 term

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

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

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

2-23     person who makes a claim under or as reflected by a lis pendens,

2-24     judgment, notice of lien, order of sale, execution, writ of

2-25     attachment, or claim of property; and

 3-1                 (5)  one of the following, if applicable:

 3-2                       (A)  a legal description of the real property;

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

 3-4     reference to the instrument page number where the full legal

 3-5     description is included; or

 3-6                       (C)  the county clerk's file number, film code

 3-7     number, or volume, page, and book reference of the instrument

 3-8     describing the real property.

 3-9           (b)  If an instrument presented for recording does not

3-10     contain the information required by Subsection (a) and the

3-11     instrument is not a deed, deed of trust, mortgage, release,

3-12     assignment, water district notice, notice of restrictions,

3-13     easement, option, or lease, the person preparing the instrument for

3-14     recording shall prepare a cover sheet.  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).  An additional page fee of $2, as determined

3-18     under Section 118.011(2), shall be collected for recording the

3-19     cover 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;

 4-1     however, the validity or enforceability of, or notice imparted by,

 4-2     the instrument shall be determined by the instrument.

 4-3           (c)  The county clerk shall charge a penalty filing fee equal

 4-4     to the greater of $25 or twice the statutory recording fee for any

 4-5     instrument presented for recording in the official public records

 4-6     of real property that does not comply with Subsections (a) and (b).

 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.