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.