SRC-JXG S.B. 969 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 969
76R 5414 SMJ-DBy: Lindsay
Intergovernmental Relations
3/25/1999
As Filed


DIGEST 

Currently, the county clerk must interpret the name of parties to index
documents filed and recorded in the real property records. Some documents
are complex and difficult to interpret, which causes inaccuracies in
indexing. S.B. 969 would require the filer to clearly identify the grantors
and grantees of any document filed in real property records, and would
require the filer to provide information on a recorder's index information
page. S.B. 969 also would exempt a federal tax lien, release of a federal
tax lien, state tax lien, release of a state tax lien, and a standard
financing statement.  

PURPOSE

As proposed, S.B. 969 reduces indexing errors, which reduce the liability
of a county. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 191.007(b), Local Government Code, to require a
page to be a single sheet, and to be printed in type no smaller than
10-point type, rather than eight-point, and be suitable for reproducing a
readable record by electronic imaging process used in the office of the
county clerk.   

SECTION 2. Amends Chapter 191, Local Government Code, by adding Section
191.0075, as follows: 

Sec. 191.0075. ADDITIONAL SPECIFICATIONS FOR REAL PROPERTY RECORDS; FEE FOR
NONCOMPLIANCE. Defines "grantor" and "grantee." Sets forth provisions of
the first page of  an instrument presented to a county clerk for recording
in the Official Public Records of Real Property. Requires the person
presenting the instrument to pay the penalty filing fee provided by
Subsection (h), and from attaching a cover sheet to the instrument, if an
instrument presented for recording does not comply with the requirements of
Subsection (b), and the instrument is a deed, deed of trust, mortgage,
release, assignment, water district notice, notice of restrictions,
easement, option, or lease. Sets forth requirements for an instrument
presented for recording that does not comply. Prohibits the county clerk
from charging the additional page fee prescribed by Section 118.011(a)(2)
for recording the cover sheet. Provides that an error in the cover sheet or
recorder's index information or the failure of the cover sheet or
recorder's index information to comply with this section does not affect
the validity or enforceability of, or notice imparted by, the instrument.
Authorizes the county clerk to use the information required by this section
to generate a grantor-grantee index. Requires the validity or
enforceability of, or notice imparted by, the instrument to be determined
by the instrument. Requires the county clerk to charge a penalty filing fee
of $1 for each page, not to exceed $5, if the instrument does not comply
with Subsection (b). Provides that a federal tax lien, release of a federal
tax lien, state tax lien, release of a state tax lien, and standard
financing statement are exempt from the requirements of this section. 

SECTION 3. Effective date: January 1, 2000.

SECTION 4. Emergency clause.