By:  Lucio                                            S.B. No. 1203

                                A BILL TO BE ENTITLED

                                       AN ACT

 1-1     relating to the recording of certain documents by electronic means

 1-2     and to the creation of an electronic recording advisory committee.

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

 1-4           SECTION 1.  Chapter 205, Local Government Code, is amended by

 1-5     adding Section 205.010 to read as follows:

 1-6           Sec. 205.010.  ELECTRONIC RECORDING ADVISORY COMMITTEE.

 1-7     (a)  In this section, "real property records" means the deed

 1-8     records, deed of trust records, and other records maintained by a

 1-9     county clerk relating to real property located in the county.

1-10           (b)  The electronic recording advisory committee is created.

1-11     The advisory committee consists of 16 members appointed or selected

1-12     as follows:

1-13                 (1)  four county clerks selected by the County and

1-14     District Clerks Association of Texas, or their designees;

1-15                 (2)  four persons selected by the Texas Land Title

1-16     Association, or their designees, one of whom is employed by or is

1-17     an officer of a rural or small urban agent, one of whom is employed

1-18     by or is an officer of a metropolitan agent, and one of whom is

1-19     employed by or is an officer of a title insurer;

1-20                 (3)  two persons selected by the County Judges and

1-21     Commissioners Association of Texas, or their designees;

1-22                 (4)  one person selected by the Independent Title

1-23     Association of Texas, Incorporated, or the person's designee; and

 2-1                 (5)  the following state officers or the officer's

 2-2     designee:

 2-3                       (A)  the attorney general;

 2-4                       (B)  the comptroller;

 2-5                       (C)  the executive director of the General

 2-6     Services Commission;

 2-7                       (D)  the executive director of the Department of

 2-8     Information Resources; and

 2-9                       (E)  the director and librarian of the Texas

2-10     State Library and Archives Commission.

2-11           (c)  The director and librarian of the Texas State Library

2-12     and Archives Commission is the presiding officer of the advisory

2-13     committee.

2-14           (d)  Notice of the selection of the members of the advisory

2-15     committee shall be provided to the Texas State Library and Archives

2-16     Commission on or before September 1, 1997.  If a member of the

2-17     advisory committee selected by an association under Subsection (b)

2-18     resigns, fails or refuses to serve, or is unable to serve for any

2-19     reason, the association that selected the original member shall

2-20     select a replacement member.

2-21           (e)  A meeting of the advisory committee shall be held at the

2-22     call of the presiding officer.  A meeting is subject to Chapter

2-23     551, Government Code.

2-24           (f)  The advisory committee may make recommendations under

2-25     this section only if:

 3-1                 (1)  nine or more members of the advisory committee are

 3-2     present; and

 3-3                 (2)  all present members, except three or fewer

 3-4     members, vote in favor of making the recommendation.

 3-5           (g)  The advisory committee may make written recommendations

 3-6     to the Texas State Library and Archives Commission on or before

 3-7     December 31, 1997, concerning the adoption of rules relating to the

 3-8     recording of instruments or documents in real property or official

 3-9     public records by electronic means.  The recommendations:

3-10                 (1)  shall provide that accessibility by electronic

3-11     means shall be made with existing and generally accepted

3-12     technological systems, including through the Internet or other

3-13     means;

3-14                 (2)  may not require any proprietary cost or investment

3-15     expenses for accessibility by electronic means to any person who in

3-16     the normal course of business is responsible for presenting

3-17     instruments or documents for recording; and

3-18                 (3)  may not allow any cost or charge for a computer

3-19     software program needed to facilitate accessibility by electronic

3-20     means to any person, other than the cost of copying or reproducing

3-21     the program.

3-22           (h)  If the advisory committee makes written recommendations

3-23     under this section, the Texas State Library and Archives Commission

3-24     may adopt rules to permit a county clerk to record instruments or

3-25     documents by electronic means in the real property or official

 4-1     public records.  The rules may not prohibit recording instruments

 4-2     or documents by other lawful means.

 4-3           (i)  If the Texas State Library and Archives Commission

 4-4     adopts rules under Subsection (h), the county clerk may, in the

 4-5     clerk's discretion, accept for recording by electronic means in

 4-6     accordance with the rules an instrument or document eligible for

 4-7     recording in the real property or official public records.  The

 4-8     county clerk who accepts an electronic filing under this subsection

 4-9     must require that the original instrument or document also be filed

4-10     or that a paper copy of the instrument or document be generated by

4-11     that county clerk in order for the electronic filing to be

4-12     effective.

4-13           (j)  If an instrument or  document  is recorded under

4-14     Subsection (i), the electronic filing is considered to have been

4-15     recorded in compliance with any law relating to the recording of

4-16     instruments or documents in the real property or official public

4-17     records as of the date of the receipt of the original paper

4-18     instrument or document or the generation of a paper copy of the

4-19     instrument or document.  The county clerk shall maintain a paper,

4-20     microfilm, or optical image of the instrument or document under any

4-21     other applicable law other than this section.  If the original

4-22     paper instrument or document or the generated paper copy of the

4-23     instrument or document conflicts with an electronic filing of the

4-24     instrument or document, the original paper instrument or document

4-25     or the generated paper copy controls.

 5-1           (k)  A county clerk shall collect filing fees as provided by

 5-2     Section 118.011 and any other law for an instrument or document

 5-3     filed under this section regardless of whether the original

 5-4     instrument or document is also filed or a paper copy is generated

 5-5     by the clerk.  The clerk may not charge an additional fee for

 5-6     recording an instrument under this section.  The advisory committee

 5-7     may include in its recommendation under Subsection (m) an amount

 5-8     for fees to be charged for the electronic filing of instruments.

 5-9           (l)  The retention and other disposition of instruments or

5-10     documents recorded by electronic means and the original or paper

5-11     copies of the instruments or documents required by this section is

5-12     controlled by the rules adopted by the Texas State Library and

5-13     Archives Commission under Sections 203.048, 204.004, and 205.003 of

5-14     this code and Section 441.158, Government Code.  An electronically

5-15     recorded instrument or document or an original or paper copy of the

5-16     instrument or document is a local government record under Section

5-17     201.003(8)(A).

5-18           (m)  The advisory committee may make written recommendations

5-19     to the lieutenant governor, the speaker of the house of

5-20     representatives, and the Texas State Library and Archives

5-21     Commission on or before December 31, 1998, concerning any statutory

5-22     changes relating to the recording of instruments or documents by

5-23     electronic means in the real property or official public records.

5-24           (n)  This section and any rules adopted under this section

5-25     expire January 1, 2000.  On and after that date, an instrument or

 6-1     document may not be recorded by electronic means unless allowed by

 6-2     another law.

 6-3           SECTION 2.  Section 441.165, Government Code, is amended to

 6-4     read as follows:

 6-5           Sec. 441.165.  CERTAIN COMMISSION RULES.  Rules and any

 6-6     revisions to the rules developed under Sections 203.048, 204.004,

 6-7     [and] 205.003, and 205.010, Local Government Code, must be approved

 6-8     by the local government records committee established under Section

 6-9     441.161.

6-10           SECTION 3.  The importance of this legislation and the

6-11     crowded condition of the calendars in both houses create an

6-12     emergency and an imperative public necessity that the

6-13     constitutional rule requiring bills to be read on three several

6-14     days in each house be suspended, and this rule is hereby suspended,

6-15     and that this Act take effect and be in force from and after its

6-16     passage, and it is so enacted.