By: Harris S.B. No. 888
A BILL TO BE ENTITLED
AN ACT
1-1 relating to electronic filing of records with a county clerk.
1-2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-3 SECTION 1. Chapter 191, Local Government Code, is amended by
1-4 adding Section 191.009 to read as follows:
1-5 Sec. 191.009. ELECTRONIC FILING AND RECORDING. (a) A
1-6 county clerk may accept instruments by electronic filing and record
1-7 the instruments electronically if the filing or recording complies
1-8 with the rules adopted by the Texas State Library and Archives
1-9 Commission under Chapter 195.
1-10 (b) An instrument that is filed electronically in compliance
1-11 with the rules adopted under Chapter 195 is considered to have been
1-12 filed in compliance with any law relating to the filing of
1-13 instruments with a county clerk.
1-14 SECTION 2. Subtitle B, Title 6, Local Government Code, is
1-15 amended by adding Chapter 195 to read as follows:
1-16 CHAPTER 195. ELECTRONIC FILING OF RECORDS WITH AND
1-17 RECORDING BY COUNTY CLERK
1-18 Sec. 195.001. DEFINITIONS. In this chapter:
1-19 (1) "Commission" means the Texas State Library and
1-20 Archives Commission.
1-21 (2) "Director and librarian" means the executive and
1-22 administrative officer of the Texas State Library and Archives
1-23 Commission.
1-24 Sec. 195.002. ADOPTION OF RULES. (a) The commission shall
2-1 adopt rules by which a county clerk may accept instruments by
2-2 electronic filing and record instruments electronically under
2-3 Section 191.009.
2-4 (b) The rules must provide for:
2-5 (1) the electronic filing with and recording by the
2-6 county clerk of:
2-7 (A) real property records; and
2-8 (B) except for records maintained under Section
2-9 192.006, other instruments filed with and recorded by the county
2-10 clerk as determined by the commission;
2-11 (2) the means by which an instrument may be
2-12 electronically transmitted to a county clerk for filing;
2-13 (3) the means by which a county clerk may
2-14 electronically record an instrument filed electronically;
2-15 (4) requiring that the means adopted under Subdivision
2-16 (2) or (3) be generally available, nonproprietary technology; and
2-17 (5) security standards to prevent the filing and
2-18 recording of fraudulent instruments or alteration of instruments
2-19 that were previously filed and recorded electronically.
2-20 (c) Rules adopted by the commission under this section that
2-21 permit the use of digital signatures in the electronic filing of
2-22 instruments with the county clerk must be, to the extent
2-23 practicable, consistent with rules governing digital signatures
2-24 adopted by the Department of Information Resources under Section
2-25 2054.060, Government Code, as added by Chapter 528, Acts of the
2-26 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
4-1 (2) if notice under Subdivision (1) is not possible,
4-2 by telephone or electronic facsimile machine.
4-3 (b) If the county clerk fails to provide notice of rejection
4-4 within the time provided by Subsection (a), the instrument is
4-5 considered accepted for filing and may not subsequently be
4-6 rejected.
4-7 Sec. 195.005. TIME INSTRUMENT CONSIDERED FILED OR RECORDED.
4-8 An instrument that is recorded electronically under this chapter is
4-9 considered to be recorded in compliance with a law relating to the
4-10 recording of instruments as of the county clerk's business day on
4-11 which the instrument is filed electronically. An instrument filed
4-12 electronically under this chapter must be recorded as timely as an
4-13 instrument filed by any other means.
4-14 Sec. 195.006. ADDITIONAL FEE PROHIBITED. The fee to file or
4-15 record an instrument electronically under this chapter is the same
4-16 as the fee for filing or recording the instrument by other means,
4-17 and a county clerk may not charge an additional fee for filing or
4-18 recording an instrument electronically under this chapter.
4-19 Sec. 195.007. ACCESS TO INSTRUMENT RECORDED ELECTRONICALLY.
4-20 (a) An instrument filed or recorded electronically must be
4-21 available for public inspection in the same manner and at the same
4-22 time as an instrument filed or recorded by other means.
4-23 (b) The county clerk shall provide a requestor, as defined
4-24 by Section 552.003, Government Code, of an instrument filed or
4-25 recorded electronically under this chapter with electronic copies
4-26 of the instrument in a form that is capable of being processed by
5-1 the use of technology that is generally available and
5-2 nonproprietary in nature. The county clerk shall provide the
5-3 copies to the requestor at the cost of producing the copies in
5-4 accordance with Section 552.262, Government Code.
5-5 Sec. 195.008. ELECTRONIC RECORDING ADVISORY COMMITTEE. (a)
5-6 The Electronic Recording Advisory Committee shall be appointed as
5-7 required by this section to recommend to the commission initial and
5-8 subsequent rules to be adopted under this chapter.
5-9 (b) The committee consists of:
5-10 (1) the following persons appointed by the director
5-11 and librarian:
5-12 (A) one person who is employed by or is an
5-13 officer of a title insurance agent or title insurance company;
5-14 (B) an officer or employee of a federal
5-15 government-sponsored entity;
5-16 (C) a person who as a usual business practice
5-17 obtains copies of recorded instruments from a county clerk to
5-18 maintain an abstract or title plant; and
5-19 (D) a public representative;
5-20 (2) two persons who are county judges or county
5-21 commissioners appointed by the County Judges and Commissioners
5-22 Association of Texas;
5-23 (3) four county clerks appointed by the County and
5-24 District Clerks' Association of Texas;
5-25 (4) three persons who are employed by or officers of
5-26 different title insurance agents or companies appointed by the
6-1 Texas Land Title Association;
6-2 (5) the presiding officer of the Title Insurance
6-3 Subcommittee of the Real Estate, Probate, and Trust Law section of
6-4 the State Bar of Texas or the functional equivalent of that
6-5 subcommittee;
6-6 (6) the attorney general or a person designated by the
6-7 attorney general;
6-8 (7) the comptroller or a person designated by the
6-9 comptroller;
6-10 (8) the executive director of the General Services
6-11 Commission or a person designated by the executive director;
6-12 (9) the executive director of the Department of
6-13 Information Resources or a person designated by the executive
6-14 director; and
6-15 (10) the director and librarian or a person designated
6-16 by the director and librarian, who also serves as presiding officer
6-17 of the committee.
6-18 (c) A member of the committee serves a term of two years
6-19 that expires on August 31 of each odd-numbered year.
6-20 (d) A vacancy in the membership of the committee is filled
6-21 in the same manner as the initial appointment and is for the
6-22 remainder of the unexpired term.
6-23 (e) A meeting of the committee is at the call of the
6-24 presiding officer and is subject to Chapter 551, Government Code.
6-25 (f) A member of the committee is not entitled to
6-26 compensation or reimbursement of expenses from the commission for
7-1 serving on the committee. A member of the committee who is an
7-2 employee or officer of a state agency is entitled to compensation
7-3 and reimbursement of expenses for service on the committee as
7-4 determined by the state agency of which the member is an officer or
7-5 employee. Chapter 2110, Government Code, does not apply to the
7-6 committee.
7-7 SECTION 3. (a) The entities entitled to make appointments
7-8 to the Electronic Recording Advisory Committee established under
7-9 Section 195.008, Local Government Code, as added by this Act, shall
7-10 make the appointments not later than November 1, 1999. The terms
7-11 of the initial members of the Electronic Recording Advisory
7-12 Committee expire August 31, 2001.
7-13 (b) The Electronic Recording Advisory Committee shall make
7-14 its recommendations for the initial adoption of rules under Chapter
7-15 195, Local Government Code, as added by this Act, not later than
7-16 September 1, 2000.
7-17 (c) The Texas State Library and Archives Commission shall
7-18 adopt rules to implement Chapter 195, Local Government Code, as
7-19 added by this Act, not later than January 1, 2001.
7-20 (d) Not later than December 31, 2000, the Electronic
7-21 Recording Advisory Committee shall make written recommendations on
7-22 statutory changes necessary to allow for digital signatures on real
7-23 estate transactions and the electronic filing and recording of
7-24 instruments executed by digital signature. The committee shall
7-25 send the recommendations to the lieutenant governor, the speaker of
7-26 the house of representatives, and the Texas State Library and
8-1 Archives Commission.
8-2 SECTION 4. The importance of this legislation and the
8-3 crowded condition of the calendars in both houses create an
8-4 emergency and an imperative public necessity that the
8-5 constitutional rule requiring bills to be read on three several
8-6 days in each house be suspended, and this rule is hereby suspended,
8-7 and that this Act take effect and be in force from and after its
8-8 passage, and it is so enacted.