76R10005 DRH-D                           
         By Ramsay                                             H.B. No. 2262
         Substitute the following for H.B. No. 2262:
         By Chisum                                         C.S.H.B. No. 2262
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to electronic filing of records with a county clerk.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Chapter 191, Local Government Code, is amended by
 1-5     adding Section 191.009 to read as follows:
 1-6           Sec. 191.009.  ELECTRONIC FILING AND RECORDING.  (a)  A
 1-7     county clerk may accept instruments by electronic filing and record
 1-8     the instruments  electronically if the filing or recording complies
 1-9     with the rules adopted by the Texas State Library and Archives
1-10     Commission under Chapter 195.
1-11           (b)  An instrument that is filed electronically in compliance
1-12     with the rules adopted under Chapter 195 is considered to have been
1-13     filed in compliance with any law relating to the filing of
1-14     instruments with a county clerk.
1-15           SECTION 2.  Subtitle B, Title 6, Local Government Code, is
1-16     amended by adding Chapter 195 to read as follows:
1-17             CHAPTER 195.  ELECTRONIC FILING OF RECORDS WITH AND
1-18                          RECORDING BY COUNTY CLERK
1-19           Sec. 195.001.  DEFINITIONS.  In this chapter:
1-20                 (1)  "Commission" means the Texas State Library and
1-21     Archives Commission.
1-22                 (2)  "Director and librarian" means the executive and
1-23     administrative officer of the Texas State Library and Archives
1-24     Commission.
 2-1           Sec. 195.002.  ADOPTION OF RULES.  (a)  The commission shall
 2-2     adopt rules by which a county clerk may accept instruments by
 2-3     electronic filing and record instruments electronically under
 2-4     Section 191.009.
 2-5           (b)  The rules must provide for:
 2-6                 (1)  the electronic filing with and recording by the
 2-7     county clerk of:
 2-8                       (A)  real property records; and
 2-9                       (B)  except for records maintained under Section
2-10     192.006, other instruments filed with and recorded by the county
2-11     clerk as determined by the commission;
2-12                 (2)  the means by which an instrument may be
2-13     electronically transmitted to a county clerk for filing;
2-14                 (3)  the means by which a county clerk may
2-15     electronically record an instrument filed electronically;
2-16                 (4)  requiring that the means adopted under Subdivision
2-17     (2) or (3)  be generally available, nonproprietary technology; and
2-18                 (5)  security standards to prevent the filing and
2-19     recording of fraudulent instruments or alteration of instruments
2-20     that were previously filed and recorded electronically.
2-21           (c)  Rules adopted by the commission under this section that
2-22     permit the use of digital signatures in the electronic filing of
2-23     instruments with the county clerk must be, to the extent
2-24     practicable, consistent with rules governing digital signatures
2-25     adopted by the Department of Information Resources under Section
2-26     2054.060, Government Code, as added by Chapter 528, Acts of the
2-27     75th Legislature, Regular Session, 1997.
 3-1           (d)  Before adopting or amending a rule under this section,
 3-2     the commission shall consider the recommendations of the Electronic
 3-3     Recording Advisory Committee established under Section 195.008.
 3-4           Sec. 195.003.  PERSONS AUTHORIZED TO FILE ELECTRONICALLY.
 3-5     The following persons may file documents electronically  for
 3-6     recording with a county clerk that accepts electronic filing and
 3-7     recording under this chapter:
 3-8                 (1)  an attorney licensed in this state;
 3-9                 (2)  a bank, savings and loan association, savings
3-10     bank, or credit union doing business under laws of the United
3-11     States or this state;
3-12                 (3)  a federally chartered lending institution, a
3-13     federal government-sponsored entity, an instrumentality of the
3-14     federal government, or a person approved as a mortgagee by the
3-15     United States to make federally insured loans;
3-16                 (4)  a person licensed to make regulated loans in this
3-17     state;
3-18                 (5)  a title insurance company or title insurance agent
3-19     licensed to do business in this state; or
3-20                 (6)  an agency of this state.
3-21           Sec. 195.004.  NOTICE OF CONFIRMATION.  (a)  A county clerk
3-22     that accepts electronic filing and recording under this chapter
3-23     shall confirm or reject an electronic filing of an instrument not
3-24     later than the first business day after the date an instrument is
3-25     filed.  Notice under this section must be made:
3-26                 (1)  by electronic means if possible; or
3-27                 (2)  if notice under Subdivision (1) is not possible,
 4-1     by telephone or electronic facsimile machine.
 4-2           (b)  If the county clerk fails to provide notice of rejection
 4-3     within the time provided by Subsection (a), the instrument is
 4-4     considered accepted for filing and may not subsequently be
 4-5     rejected.
 4-6           Sec. 195.005.  TIME INSTRUMENT CONSIDERED FILED OR RECORDED.
 4-7     An instrument that is recorded electronically under this chapter is
 4-8     considered to be recorded in compliance with a law relating to the
 4-9     recording of instruments as of the county clerk's business day on
4-10     which the instrument is filed electronically.  An instrument filed
4-11     electronically under this chapter must be recorded as timely as an
4-12     instrument filed by any other means.
4-13           Sec. 195.006.  ADDITIONAL FEE PROHIBITED.  The fee to file or
4-14     record an instrument electronically under this chapter is the same
4-15     as the fee for filing or recording the instrument by other means,
4-16     and a county clerk may not charge an additional fee for filing or
4-17     recording an instrument electronically under this chapter.
4-18           Sec. 195.007.  ACCESS TO INSTRUMENT RECORDED ELECTRONICALLY.
4-19     (a)  An instrument filed or recorded electronically must be
4-20     available for public inspection in the same manner and at the same
4-21     time as an instrument filed or recorded by other means.
4-22           (b)  The county clerk shall provide a requestor, as defined
4-23     by Section 552.003, Government Code, of an instrument filed or
4-24     recorded electronically under this chapter with electronic copies
4-25     of the instrument in a form that is capable of being processed by
4-26     the use of technology that is generally available and
4-27     nonproprietary in nature.  The county clerk shall provide the
 5-1     copies to the requestor at the cost of producing the copies in
 5-2     accordance with Section 552.262, Government Code.
 5-3           Sec. 195.008.  ELECTRONIC RECORDING ADVISORY COMMITTEE.  (a)
 5-4     The Electronic Recording Advisory Committee shall be appointed as
 5-5     required by this section to recommend to the commission initial and
 5-6     subsequent rules to be adopted under this chapter.
 5-7           (b)  The committee consists of:
 5-8                 (1)  the following persons appointed by the director
 5-9     and librarian:
5-10                       (A)  one person who is employed by or is an
5-11     officer of a title insurance agent or title insurance company;
5-12                       (B)  an officer or employee of a federal
5-13     government-sponsored entity;
5-14                       (C)  a person who as a usual business practice
5-15     obtains copies of recorded instruments from a county clerk to
5-16     maintain an abstract or title plant; and
5-17                       (D)  a public representative;
5-18                 (2)  two persons who are county judges or county
5-19     commissioners appointed by the County Judges and Commissioners
5-20     Association of Texas;
5-21                 (3)  four county clerks appointed by the County and
5-22     District Clerks' Association of Texas;
5-23                 (4)  three persons who are employed by or officers of
5-24     different title insurance agents or companies appointed by the
5-25     Texas Land Title Association;
5-26                 (5)  the presiding officer of the Title Insurance
5-27     subcommittee of the Real Estate, Probate, and Trust section of the
 6-1     State Bar of Texas or the functional equivalent of that
 6-2     subcommittee;
 6-3                 (6)  the attorney general or a person designated by the
 6-4     attorney general;
 6-5                 (7)  the comptroller or a person designated by the
 6-6     comptroller;
 6-7                 (8)  the executive director of the General Services
 6-8     Commission or a person designated by the executive director;
 6-9                 (9)  the executive director of the Department of
6-10     Information Resources or a person designated by the executive
6-11     director; and
6-12                 (10)  the director and librarian or a person designated
6-13     by the director and librarian, who also serves as presiding officer
6-14     of the committee.
6-15           (c)  A member of the committee serves a term of two years
6-16     that expires on August 31 of each odd-numbered year.
6-17           (d)  A vacancy in the membership of the committee is filled
6-18     in the same manner as the initial appointment and is for the
6-19     remainder of the unexpired term.
6-20           (e)  A meeting of the committee is at the call of the
6-21     presiding officer and is subject to Chapter 551, Government Code.
6-22           (f)  A member of the committee is not entitled to
6-23     compensation or reimbursement of expenses from the commission for
6-24     serving on the committee.  A member of the committee who is an
6-25     employee or officer of a state agency is entitled to compensation
6-26     and reimbursement of expenses for service on the committee as
6-27     determined by the state agency of which the member is an officer or
 7-1     employee. Chapter 2110, Government Code, does not apply to the
 7-2     committee.
 7-3           SECTION 3.  (a)  The entities entitled to make appointments
 7-4     to the Electronic Recording Advisory Committee established under
 7-5     Section 195.008, Local Government Code, as added by this Act, shall
 7-6     make the appointments not later than November 1, 1999.  The terms
 7-7     of the initial members of the Electronic Recording Advisory
 7-8     Committee expire August 31, 2001.
 7-9           (b)  The Electronic Recording Advisory Committee shall make
7-10     its recommendations for the initial adoption of rules under Chapter
7-11     195, Local Government Code, as added by this Act, not later than
7-12     September 1, 2000.
7-13           (c)  The Texas State Library and Archives Commission shall
7-14     adopt rules to implement Chapter 195, Local Government Code, as
7-15     added by this Act, not later than January 1, 2001.
7-16           (d)  Not later than December 31, 2000, the Electronic
7-17     Recording Advisory Committee shall make written recommendations on
7-18     statutory changes necessary to allow for digital signatures on real
7-19     estate transactions and the electronic filing and recording of
7-20     instruments executed by digital signature. The committee shall send
7-21     the recommendations to the lieutenant governor, the speaker of the
7-22     house of representatives, and the Texas State Library and Archives
7-23     Commission.
7-24           SECTION 4.  The importance of this legislation and the
7-25     crowded condition of the calendars in both houses create an
7-26     emergency and an imperative public necessity that the
7-27     constitutional rule requiring bills to be read on three several
 8-1     days in each house be suspended, and this rule is hereby suspended,
 8-2     and that this Act take effect and be in force from and after its
 8-3     passage, and it is so enacted.