1-1     By:  Lucio                                            S.B. No. 1203

 1-2           (In the Senate - Filed March 11, 1997; March 17, 1997, read

 1-3     first time and referred to Committee on Intergovernmental

 1-4     Relations; April 25, 1997, reported adversely, with favorable

 1-5     Committee Substitute by the following vote:  Yeas 11, Nays 0;

 1-6     April 25, 1997, sent to printer.)

 1-7     COMMITTEE SUBSTITUTE FOR S.B. No. 1203                   By:  Lucio

 1-8                            A BILL TO BE ENTITLED

 1-9                                   AN ACT

1-10     relating to the recording of certain documents by electronic means

1-11     and to the creation of an electronic recording advisory committee.

1-12           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-13           SECTION 1.  Chapter 205, Local Government Code, is amended by

1-14     adding Section 205.010 to read as follows:

1-15           Sec. 205.010.  ELECTRONIC RECORDING ADVISORY COMMITTEE.

1-16     (a)  In this section, "real property records" means the deed

1-17     records, deed of trust records, and other records maintained by a

1-18     county clerk relating to real property located in the county.

1-19           (b)  The electronic recording advisory committee is created.

1-20     The advisory committee consists of 16 members appointed or selected

1-21     as follows:

1-22                 (1)  four county clerks selected by the County and

1-23     District Clerks Association of Texas, or their designees;

1-24                 (2)  four persons selected by the Texas Land Title

1-25     Association, or their designees, one of whom is employed by or is

1-26     an officer of a rural or small urban agent, one of whom is employed

1-27     by or is an officer of a metropolitan agent, and one of whom is

1-28     employed by or is an officer of a title insurer;

1-29                 (3)  two persons selected by the County Judges and

1-30     Commissioners Association of Texas, or their designees;

1-31                 (4)  one person selected by the Independent Title

1-32     Association of Texas, Incorporated, or the person's designee; and

1-33                 (5)  the following state officers or the officer's

1-34     designee:

1-35                       (A)  the attorney general;

1-36                       (B)  the comptroller;

1-37                       (C)  the executive director of the General

1-38     Services Commission;

1-39                       (D)  the executive director of the Department of

1-40     Information Resources; and

1-41                       (E)  the director and librarian of the Texas

1-42     State Library and Archives Commission.

1-43           (c)  The director and librarian of the Texas State Library

1-44     and Archives Commission is the presiding officer of the advisory

1-45     committee.

1-46           (d)  Notice of the selection of the members of the advisory

1-47     committee shall be provided to the Texas State Library and Archives

1-48     Commission on or before September 1, 1997.  If a member of the

1-49     advisory committee selected by an association under Subsection (b)

1-50     resigns, fails or refuses to serve, or is unable to serve for any

1-51     reason, the association that selected the original member shall

1-52     select a replacement member.

1-53           (e)  A meeting of the advisory committee shall be held at the

1-54     call of the presiding officer.  A meeting is subject to Chapter

1-55     551, Government Code.

1-56           (f)  The advisory committee may make recommendations under

1-57     this section only if:

1-58                 (1)  nine or more members of the advisory committee are

1-59     present; and

1-60                 (2)  all present members, except three or fewer

1-61     members, vote in favor of making the recommendation.

1-62           (g)  The advisory committee may make written recommendations

1-63     to the Texas State Library and Archives Commission on or before

1-64     December 31, 1997, concerning the adoption of rules relating to the

 2-1     recording of instruments or documents in real property or official

 2-2     public records by electronic means.  The recommendations:

 2-3                 (1)  shall provide that accessibility by electronic

 2-4     means shall be made with existing and generally accepted

 2-5     technological systems, including through the Internet or other

 2-6     means;

 2-7                 (2)  may not require any proprietary cost or investment

 2-8     expenses for accessibility by electronic means to any person who in

 2-9     the normal course of business is responsible for presenting

2-10     instruments or documents for recording; and

2-11                 (3)  may not allow any cost or charge for a computer

2-12     software program needed to facilitate accessibility by electronic

2-13     means to any person, other than the cost of copying or reproducing

2-14     the program.

2-15           (h)  If the advisory committee makes written recommendations

2-16     under this section, the Texas State Library and Archives Commission

2-17     may adopt rules to permit a county clerk to record instruments or

2-18     documents by electronic means in the real property or official

2-19     public records.  The rules may not prohibit recording instruments

2-20     or documents by other lawful means.

2-21           (i)  If the Texas State Library and Archives Commission

2-22     adopts rules under Subsection (h), the county clerk may, in the

2-23     clerk's discretion, accept for recording by electronic means in

2-24     accordance with the rules an instrument or document eligible for

2-25     recording in the real property or official public records.  The

2-26     county clerk who accepts an electronic filing under this subsection

2-27     must require that the original instrument or document also be filed

2-28     or that a paper copy of the instrument or document be generated by

2-29     that county clerk in order for the electronic filing to be

2-30     effective.

2-31           (j)  If an instrument or  document  is recorded under

2-32     Subsection (i), the electronic filing is considered to have been

2-33     recorded in compliance with any law relating to the recording of

2-34     instruments or documents in the real property or official public

2-35     records as of the date of the receipt of the original paper

2-36     instrument or document or the generation of a paper copy of the

2-37     instrument or document.  The county clerk shall maintain a paper,

2-38     microfilm, or optical image of the instrument or document under any

2-39     other applicable law other than this section.  If the original

2-40     paper instrument or document or the generated paper copy of the

2-41     instrument or document conflicts with an electronic filing of the

2-42     instrument or document, the original paper instrument or document

2-43     or the generated paper copy controls.

2-44           (k)  A county clerk shall collect filing fees as provided by

2-45     Section 118.011 and any other law for an instrument or document

2-46     filed under this section regardless of whether the original

2-47     instrument or document is also filed or a paper copy is generated

2-48     by the clerk.  The clerk may not charge an additional fee for

2-49     recording an instrument under this section.  The advisory committee

2-50     may include in its recommendation under Subsection (m) an amount

2-51     for fees to be charged for the electronic filing of instruments.

2-52           (l)  The retention and other disposition of instruments or

2-53     documents recorded by electronic means and the original or paper

2-54     copies of the instruments or documents required by this section is

2-55     controlled by the rules adopted by the Texas State Library and

2-56     Archives Commission under Sections 203.048, 204.004, and 205.003 of

2-57     this code and Section 441.158, Government Code. An electronically

2-58     recorded instrument or document or an original or paper copy of the

2-59     instrument or document is a local government record under Section

2-60     201.003(8)(A).

2-61           (m)  The advisory committee may make written recommendations

2-62     to the lieutenant governor, the speaker of the house of

2-63     representatives, and the Texas State Library and Archives

2-64     Commission on or before December 31, 1998, concerning any statutory

2-65     changes relating to the recording of instruments or documents by

2-66     electronic means in the real property or official public records.

2-67           (n)  This section and any rules adopted under this section

2-68     expire January 1, 2000.  On and after that date, an instrument or

2-69     document may not be recorded by electronic means unless allowed by

 3-1     another law.

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

 3-3     read as follows:

 3-4           Sec. 441.165.  CERTAIN COMMISSION RULES.  Rules and any

 3-5     revisions to the rules developed under Sections 203.048, 204.004,

 3-6     [and] 205.003, and 205.010, Local Government Code, must be approved

 3-7     by the local government records committee established under Section

 3-8     441.161.

 3-9           SECTION 3.  The importance of this legislation and the

3-10     crowded condition of the calendars in both houses create an

3-11     emergency and an imperative public necessity that the

3-12     constitutional rule requiring bills to be read on three several

3-13     days in each house be suspended, and this rule is hereby suspended,

3-14     and that this Act take effect and be in force from and after its

3-15     passage, and it is so enacted.

3-16                                  * * * * *