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.