By Lindsay                                             S.B. No. 969
         76R5414 SMJ-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to form specifications for recording certain legal
 1-3     instruments.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 191.007(b), Local Government Code, is
 1-6     amended to read as follows:
 1-7           (b)  A page is considered to be one side of a sheet of paper.
 1-8     A page must:
 1-9                 (1)  be a single sheet no wider than 8-1/2 inches and
1-10     no longer than 14 inches;
1-11                 (2)  have a sufficient weight and substance so that
1-12     printing, typing, or handwriting on it will not smear or bleed
1-13     through; and
1-14                 (3)  be printed in type not smaller than 10-point
1-15     [eight-point] type and be suitable otherwise for reproducing from
1-16     it a readable record by a photocopy or photostatic, [or]
1-17     microphotographic, or electronic imaging process used in the office
1-18     of the county clerk.
1-19           SECTION 2.  Chapter 191, Local Government Code, is amended by
1-20     adding Section 191.0075 to read as follows:
1-21           Sec. 191.0075.  ADDITIONAL SPECIFICATIONS FOR REAL PROPERTY
1-22     RECORDS; FEE FOR NONCOMPLIANCE.  (a)  In this section:
1-23                 (1)  "Grantor" includes a person:
1-24                       (A)  conveying or encumbering the title to
 2-1     property; or
 2-2                       (B)  against whom a lis pendens, judgment, notice
 2-3     of lien, order of sale, execution, writ of attachment, or claim of
 2-4     property is placed on record.
 2-5                 (2)  "Grantee" includes a person who:
 2-6                       (A)  is granted a conveyance or encumbrance of
 2-7     property or an interest in property;
 2-8                       (B)  is the beneficiary or creditor under a
 2-9     mortgage or other lien; or
2-10                       (C)  makes a claim under a lis pendens, judgment,
2-11     notice of lien, order of sale, execution, writ of attachment, or
2-12     claim of property.
2-13           (b)  The first page of an instrument presented to a county
2-14     clerk for recording in the Official Public Records of Real Property
2-15     shall:
2-16                 (1)  have margins that are:
2-17                       (A)  at least three inches on top;
2-18                       (B)  one inch on the bottom and sides; and
2-19                       (C)  free of printing, typing, and writing other
2-20     than form references, names, and dates, borders, graphics, file
2-21     numbers, parcel numbers, or names of parties filing the instrument;
2-22     and
2-23                 (2)  contain the following information, in the order
2-24     listed:
2-25                       (A)  on the top left-hand side of the page, the
2-26     name and address of the person to whom the original instrument will
2-27     be returned and, if applicable, the name of the title company or
 3-1     law firm presenting the instrument for recording;
 3-2                       (B)  the title of the instrument;
 3-3                       (C)  the grantor's name, and if applicable,
 3-4     reference to the instrument page number containing additional
 3-5     grantor names;
 3-6                       (D)  the grantee's name, and if applicable,
 3-7     reference to the instrument page number containing additional
 3-8     grantee names; and
 3-9                       (E)  if applicable, one of the following:
3-10                             (i)  a legal description of the real
3-11     property;
3-12                             (ii)  a brief description of the real
3-13     property and reference to the instrument page number containing the
3-14     legal description; or
3-15                             (iii)  the county clerk's file number, film
3-16     code number, or volume, page, and book reference of the instrument
3-17     describing the real property.
3-18           (c)  If an instrument presented for recording does not comply
3-19     with the requirements of Subsection (b), and the instrument is a
3-20     deed, deed of trust, mortgage, release, assignment, water district
3-21     notice, notice of restrictions, easement, option, or lease, the
3-22     person presenting the instrument:
3-23                 (1)  shall pay the penalty filing fee provided by
3-24     Subsection (h); and
3-25                 (2)  may not attach a cover sheet to the instrument.
3-26           (d)  If an instrument presented for recording does not comply
3-27     with the requirements of Subsection (b), and the instrument is not
 4-1     a deed, deed of trust, mortgage, release, assignment, water
 4-2     district notice, notice of restrictions, easement, option, or
 4-3     lease, the person presenting the instrument:
 4-4                 (1)  must attach a cover sheet that:
 4-5                       (A)  contains the information required by
 4-6     Subsection (b);
 4-7                       (B)  meets the requirements of Section
 4-8     191.007(a); and
 4-9                       (C)  is not required to be separately signed or
4-10     acknowledged; or
4-11                 (2)  shall pay the penalty filing fee provided by
4-12     Subsection (h).
4-13           (e)  The county clerk may not charge the additional page fee
4-14     prescribed by Section 118.011(a)(2) for recording the cover sheet.
4-15           (f)  An error in the cover sheet or recorder's index
4-16     information or the failure of the cover sheet or recorder's index
4-17     information to comply with this section does not affect the
4-18     validity or enforceability of, or notice imparted by, the
4-19     instrument.
4-20           (g)  The county clerk may use the information required by
4-21     this section to generate a grantor-grantee index.  However, the
4-22     validity or enforceability of, or notice imparted by, the
4-23     instrument shall be determined by the instrument.
4-24           (h)  If the instrument does not comply with Subsection (b),
4-25     the county clerk shall charge a penalty filing fee of $1 for each
4-26     page, not to exceed $5.
4-27           (i)  A federal tax lien, release of a federal tax lien, state
 5-1     tax lien, release of a state tax lien, and standard financing
 5-2     statement are exempt from the requirements of this section.
 5-3           SECTION 3.   This Act takes effect January 1, 2000.
 5-4           SECTION 4.  The importance of this legislation and the
 5-5     crowded condition of the calendars in both houses create an
 5-6     emergency and an imperative public necessity that the
 5-7     constitutional rule requiring bills to be read on three several
 5-8     days in each house be suspended, and this rule is hereby suspended.