By Ramsay                                             H.B. No. 2262
         76R8374 DRH-F                           
                                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 or a
3-13     person approved as a mortgagee by the United States to make
3-14     federally insured loans;
3-15                 (4)  a person licensed to make regulated loans in this
3-16     state;
3-17                 (5)  a title insurance company or title insurance agent
3-18     licensed to do business in this state; or
3-19                 (6)  an agency of this state.
3-20           Sec. 195.004.  NOTICE OF CONFIRMATION.  (a)  A county clerk
3-21     that accepts electronic filing and recording under this chapter
3-22     shall confirm or reject an electronic filing of an instrument not
3-23     later than the first business day after the date an instrument is
3-24     filed.  Notice under this section must be made:
3-25                 (1)  by electronic means if possible; or
3-26                 (2)  if notice under Subdivision (1) is not possible,
3-27     by telephone or electronic facsimile machine.
 4-1           (b)  If the county clerk fails to provide notice of rejection
 4-2     within the time provided by Subsection (a), the instrument is
 4-3     considered accepted for filing and may not subsequently be
 4-4     rejected.
 4-5           Sec. 195.005.  TIME INSTRUMENT CONSIDERED FILED OR RECORDED.
 4-6     An instrument that is recorded electronically under this chapter is
 4-7     considered to be recorded in compliance with a law relating to the
 4-8     recording of instruments as of the county clerk's business day on
 4-9     which the instrument is filed electronically.  An instrument filed
4-10     electronically under this chapter must be recorded as timely as an
4-11     instrument filed by any other means.
4-12           Sec. 195.006.  ADDITIONAL FEE PROHIBITED.  The fee to file or
4-13     record an instrument electronically under this chapter is the same
4-14     as the fee for filing or recording the instrument by other means,
4-15     and a county clerk may not charge an additional fee for filing or
4-16     recording an instrument electronically under this chapter.
4-17           Sec. 195.007.  ACCESS TO INSTRUMENT RECORDED ELECTRONICALLY.
4-18     (a)  An instrument filed or recorded electronically must be
4-19     available for public inspection in the same manner and at the same
4-20     time as an instrument filed or recorded by other means.
4-21           (b)  The county clerk shall provide a requestor, as defined
4-22     by Section 552.003, Government Code, of an instrument filed or
4-23     recorded electronically under this chapter with electronic copies
4-24     of the instrument in a form that is capable of being processed by
4-25     the use of technology that is generally available and
4-26     nonproprietary in nature.  The county clerk shall provide the
4-27     copies to the requestor at the cost of producing the copies in
 5-1     accordance with Section 552.262, Government Code.
 5-2           Sec. 195.008.  ELECTRONIC RECORDING ADVISORY COMMITTEE.  (a)
 5-3     The Electronic Recording Advisory Committee shall be appointed as
 5-4     required by this section to recommend to the commission initial and
 5-5     subsequent rules to be adopted under this chapter.
 5-6           (b)  The committee consists of:
 5-7                 (1)  the following persons appointed by the director
 5-8     and librarian:
 5-9                       (A)  one person who is employed by or is an
5-10     officer of a title insurance agent or title insurance company;
5-11                       (B)  two persons who are county judges or county
5-12     commissioners;
5-13                       (C)  a person who as a usual business practice
5-14     obtains copies of recorded instruments from a county clerk to
5-15     maintain an abstract or title plant; and
5-16                       (D)  a public representative;
5-17                 (2)  four county clerks appointed by the County and
5-18     District Clerks' Association of Texas;
5-19                 (3)  three persons who are employed by or officers of
5-20     different title insurance agents or companies appointed by the
5-21     Texas Land Title Association;
5-22                 (4)  the presiding officer of the Title Insurance
5-23     subcommittee of the Real Estate, Probate, and Trust section of the
5-24     State Bar of Texas or the functional equivalent of that
5-25     subcommittee;
5-26                 (5)  the attorney general or a person designated by the
5-27     attorney general;
 6-1                 (6)  the comptroller or a person designated by the
 6-2     comptroller;
 6-3                 (7)  the executive director of the General Services
 6-4     Commission or a person designated by the executive director;
 6-5                 (8)  the executive director of the Department of
 6-6     Information Resources or a person designated by the executive
 6-7     director; and
 6-8                 (9)  the director and librarian or a person designated
 6-9     by the director and librarian, who also serves as presiding officer
6-10     of the committee.
6-11           (c)  A member of the committee serves a term of two years
6-12     that expires on August 31 of each odd-numbered year.
6-13           (d)  A vacancy in the membership of the committee is filled
6-14     in the same manner as the initial appointment and is for the
6-15     remainder of the unexpired term.
6-16           (e)  A meeting of the committee is at the call of the
6-17     presiding officer and is subject to Chapter 551, Government Code.
6-18           (f)  A member of the committee is not entitled to
6-19     compensation or reimbursement of expenses from the commission for
6-20     serving on the committee.  A member of the committee who is an
6-21     employee or officer of a state agency is entitled to compensation
6-22     and reimbursement of expenses for service on the committee as
6-23     determined by the state agency of which the member is an officer or
6-24     employee. Chapter 2110, Government Code, does not apply to the
6-25     committee.
6-26           SECTION 3.  (a)  The entities entitled to make appointments
6-27     to the Electronic Recording Advisory Committee established under
 7-1     Section 195.008, Local Government Code, as added by this Act, shall
 7-2     make the appointments not later than November 1, 1999.  The terms
 7-3     of the initial members of the Electronic Recording Advisory
 7-4     Committee expire August 31, 2001.
 7-5           (b)  The Electronic Recording Advisory Committee shall make
 7-6     its recommendations for the initial adoption of rules under Chapter
 7-7     195, Local Government Code, as added by this Act, not later than
 7-8     September 1, 2000.
 7-9           (c)  The Texas State Library and Archives Commission shall
7-10     adopt rules to implement Chapter 195, Local Government Code, as
7-11     added by this Act, not later than January 1, 2001.
7-12           (d)  Not later than December 31, 2000, the Electronic
7-13     Recording Advisory Committee shall make written recommendations on
7-14     statutory changes necessary to allow for digital signatures on real
7-15     estate transactions and the electronic filing and recording of
7-16     instruments executed by digital signature. The committee shall send
7-17     the recommendations to the lieutenant governor, the speaker of the
7-18     house of representatives, and the Texas State Library and Archives
7-19     Commission.
7-20           SECTION 4.  The importance of this legislation and the
7-21     crowded condition of the calendars in both houses create an
7-22     emergency and an imperative public necessity that the
7-23     constitutional rule requiring bills to be read on three several
7-24     days in each house be suspended, and this rule is hereby suspended,
7-25     and that this Act take effect and be in force from and after its
7-26     passage, and it is so enacted.