SRC-JXG S.B. 888 76(R)BILL ANALYSIS


Senate Research CenterS.B. 888
By: Harris
Intergovernmental Relations
6/29/1999
Enrolled


DIGEST 

Currently, Texas law does not provide standards for electronic filing and
recording of instruments in public records. However, states are beginning
to adopt electronic recording statutes for recording and filing documents
and instruments in public record. S.B. 888 will create an Electronic
Recording Advisory Committee to assist the Texas State Library and Archives
Commission to establish standards for electronic filing and recording of
instruments in public record in a county, and will recommend legislation
for future adoption of electronic recording and digital signatures statutes
relating to real property transactions. 

PURPOSE

As enrolled, S.B. 888 establishes standards for electronic filing and
recording of instruments in public record.  

RULEMAKING AUTHORITY

Rulemaking authority is granted to the Texas State Library and Archives
Commission in SECTION 2 (Section 195.002(a), Local Government Code) of this
bill. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 191, Local Government Code, by adding Section
191.009, as follows: 

Sec. 191.009. ELECTRONIC FILING AND RECORDING. Authorizes a county clerk to
accept instruments by electronic filing and record the instruments
electronically, if the filing or recording complies with the rules adopted
by the Texas State Library and Archives Commission (commission) under
Chapter 195. Provides that an instrument that is filed electronically in
compliance with the rules adopted under Chapter 195 is considered to have
been filed in compliance with any law relating to the filing of instruments
with a county clerk. 

SECTION 2. Amends Title 6B, Local Government Code, by adding Chapter 195,
as follows: 

CHAPTER 195. ELECTRONIC FILING OF RECORDS WITH AND 
RECORDING BY COUNTY CLERK

 Sec. 195.001. DEFINITIONS. Defines "commission" and "director and
librarian." 

Sec. 195.002. ADOPTION OF RULES. Authorizes  the commission to adopt rules
by which a county clerk may accept instruments by electronic filing and
record instruments electronically under Section 191.009. Sets forth rules
for electronic filing and recording instruments. Requires rules adopted by
the commission under this section that permit the use of digital signatures
in the electronic filing of instruments with the county clerk, to the
extent practicable, to be consistent with rules governing digital
signatures adopted by the Department of Information Resources under Section
2054.060, Government Code, as added by Chapter 528, Acts of the 75th
Legislature, Regular Session, 1997. Requires the commission to consider the
recommendations of the Electronic Recording Advisory Committee established
under Section 195.008, before adopting or amending a rule under this
section.  
 
Sec. 195.003. PERSONS AUTHORIZED TO FILE ELECTRONICALLY. Authorizes certain
persons and entities, including a federal government-sponsored entity and
an instrumentality of the federal government, to file documents
electronically for recording with a county clerk that accepts electronic
filing and recording under this chapter.  

Sec. 195.004. NOTICE OF CONFIRMATION. Requires a county clerk that accepts
electronic filing and recording under this chapter to confirm or reject an
electronic filing of an instrument, no later than the first business day
after the date an instrument is filed. Requires notice under this section
to be made by electronic means if possible, or if notice under Subdivision
(1) is not possible by telephone or electronic facsimile machine. Provides
that the instrument is considered accepted for filing and may not
subsequently be rejected, if the county clerk fails to provide notice of
rejection within the time provided by Subsection (a). 

Sec. 195.005. TIME INSTRUMENT CONSIDERED FILED OR RECORDED. Provides that
an instrument that is recorded electronically under this chapter is
considered to be recorded in compliance with a law relating to the
recording of instruments as of the county clerk's business day on which the
instrument is filed electronically. Requires an instrument filed
electronically under this chapter to be recorded as timely as an instrument
filed by any other means. 

Sec. 195.006. ADDITIONAL FEE PROHIBITED. Provides that the fee to file or
record an instrument electronically under this chapter is the same as the
fee for filing or recording the instrument by other means, and a county
clerk may not charge an additional fee for filing or recording an
instrument electronically under this chapter. 

Sec. 195.007. ACCESS TO INSTRUMENT RECORDED ELECTRONICALLY. Requires an
instrument filed or recorded electronically to be available for public
inspection in the same manner and at the same time as an instrument filed
or recorded by other means. Requires the county clerk to provide a
requestor, as defined by Section 552.003, Government Code, of an instrument
filed or recorded electronically under this chapter with electronic copies
of the instrument in a form that is capable of being processed by the use
of technology that is generally available and nonproprietary in nature.
Requires the county clerk to provide the copies to the requestor at the
cost of producing the copies in accordance with Section 552.262, Government
Code. 

Sec. 195.008. ELECTRONIC RECORDING ADVISORY COMMITTEE. Requires the
Electronic Recording Advisory Committee (committee) to be appointed as
required by this section to recommend to the commission initial and
subsequent rules to be adopted under this chapter. Provides that the
committee consists of certain persons, including an officer or employee of
a federal government-sponsored entity appointed by the director and
librarian, and two persons who are county judges or county commissioners
appointed by the County Judges and Commissioners Association of Texas.
Provides that a member of the committee serves a term of two years that
expires on August 31 of each odd-numbered year. Provides that a vacancy in
the membership of the committee is filled in the same manner as the initial
appointment and is for the remainder of the unexpired term. Provides that a
meeting of the committee is at the call of the presiding officer and is
subject to Chapter 551, Government Code. Provides that a member of the
committee is not entitled to compensation or reimbursement of expenses from
the commission for serving on the committee. Entitles a member of the
committee who is an employee or officer of a state agency to compensation
and reimbursement of expenses for service on the committee as determined by
the state agency of which the member is an officer or employee. Provides
that Chapter 2110, Government Code, does not apply to the committee.  

SECTION 3. Entitles the entities to make appointments to the committee
established under Section 195.008, Local Government Code, as added by this
Act, no later than November 1, 1999. Provides that the terms of the initial
members of the committee expire August 31, 2001. Requires the committee to
make its recommendations for the initial adoption of rules under Chapter
195, Local Government Code, as added by this Act, no later than September
1, 2000. Requires the commission to adopt rules to implement Chapter 195,
Local Government Code, as added by this Act, no later  than January 1,
2001. Requires the committee to make written recommendations on statutory
changes necessary to allow for digital signatures on real estate
transactions and the electronic filing and recording of instruments
executed by digital signatures, no later than December 31, 2000. Requires
the committee to send the recommendations to the lieutenant governor, the
speaker of the house of representatives, and the commission. 

SECTION 4. Emergency clause.
           Effective date: upon passage.