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 * * * * *