1-1     By:  Lindsay                                           S.B. No. 969
 1-2           (In the Senate - Filed March 8, 1999; March 9, 1999, read
 1-3     first time and referred to Committee on Intergovernmental
 1-4     Relations; April 6, 1999, reported favorably, as amended, by the
 1-5     following vote:  Yeas 5, Nays 0; April 6, 1999, sent to printer.)
 1-6     COMMITTEE AMENDMENT NO. 1                              By:  Lindsay
 1-7           Amend S.B. No. 969 as follows:
 1-8           (1)  Strike page 1, line 49 through page 1, line 62, and
 1-9     substitute the following:
1-10                 (1)  "Grantor" includes a person who:
1-11                       (A)  conveys or encumbers the title to property;
1-12     or
1-13                       (B)  makes a claim under a lis pendens, judgment,
1-14     notice of lien, order of sale, execution, writ of attachment, or
1-15     claim of property.
1-16                 (2)  "Grantee" includes a person:
1-17                       (A)  who is granted a conveyance or encumbrance
1-18     of property or an interest in property;
1-19                       (B)  who is the beneficiary or creditor under a
1-20     mortgage or other lien; or
1-21                       (C)  against whom a lis pendens, judgment, notice
1-22     of lien, order of sale, execution, writ of attachment, or claim of
1-23     property is placed on record.
1-24           (2)  On page 2, line 12, strike "side" and substitute
1-25     "corner".
1-26                            A BILL TO BE ENTITLED
1-27                                   AN ACT
1-28     relating to form specifications for recording certain legal
1-29     instruments.
1-30           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-31           SECTION 1.  Subsection (b), Section 191.007, Local Government
1-32     Code, is amended to read as follows:
1-33           (b)  A page is considered to be one side of a sheet of paper.
1-34     A page must:
1-35                 (1)  be a single sheet no wider than 8-1/2 inches and
1-36     no longer than 14 inches;
1-37                 (2)  have a sufficient weight and substance so that
1-38     printing, typing, or handwriting on it will not smear or bleed
1-39     through; and
1-40                 (3)  be printed in type not smaller than 10-point
1-41     [eight-point] type and be suitable otherwise for reproducing from
1-42     it a readable record by a photocopy or photostatic, [or]
1-43     microphotographic, or electronic imaging process used in the office
1-44     of the county clerk.
1-45           SECTION 2.  Chapter 191, Local Government Code, is amended by
1-46     adding Section 191.0075 to read as follows:
1-47           Sec. 191.0075.  ADDITIONAL SPECIFICATIONS FOR REAL PROPERTY
1-48     RECORDS; FEE FOR NONCOMPLIANCE.  (a)  In this section:
1-49                 (1)  "Grantor" includes a person:
1-50                       (A)  conveying or encumbering the title to
1-51     property; or
1-52                       (B)  against whom a lis pendens, judgment, notice
1-53     of lien, order of sale, execution, writ of attachment, or claim of
1-54     property is placed on record.
1-55                 (2)  "Grantee" includes a person who:
1-56                       (A)  is granted a conveyance or encumbrance of
1-57     property or an interest in property;
1-58                       (B)  is the beneficiary or creditor under a
1-59     mortgage or other lien; or
1-60                       (C)  makes a claim under a lis pendens, judgment,
1-61     notice of lien, order of sale, execution, writ of attachment, or
1-62     claim of property.
1-63           (b)  The first page of an instrument presented to a county
 2-1     clerk for recording in the Official Public Records of Real Property
 2-2     shall:
 2-3                 (1)  have margins that are:
 2-4                       (A)  at least three inches on top;
 2-5                       (B)  one inch on the bottom and sides; and
 2-6                       (C)  free of printing, typing, and writing other
 2-7     than form references, names, and dates, borders, graphics, file
 2-8     numbers, parcel numbers, or names of parties filing the instrument;
 2-9     and
2-10                 (2)  contain the following information, in the order
2-11     listed:
2-12                       (A)  on the top left-hand side of the page, the
2-13     name and address of the person to whom the original instrument will
2-14     be returned and, if applicable, the name of the title company or
2-15     law firm presenting the instrument for recording;
2-16                       (B)  the title of the instrument;
2-17                       (C)  the grantor's name, and if applicable,
2-18     reference to the instrument page number containing additional
2-19     grantor names;
2-20                       (D)  the grantee's name, and if applicable,
2-21     reference to the instrument page number containing additional
2-22     grantee names; and
2-23                       (E)  if applicable, one of the following:
2-24                             (i)  a legal description of the real
2-25     property;
2-26                             (ii)  a brief description of the real
2-27     property and reference to the instrument page number containing the
2-28     legal description; or
2-29                             (iii)  the county clerk's file number, film
2-30     code number, or volume, page, and book reference of the instrument
2-31     describing the real property.
2-32           (c)  If an instrument presented for recording does not comply
2-33     with the requirements of Subsection (b) and the instrument is a
2-34     deed, deed of trust, mortgage, release, assignment, water district
2-35     notice, notice of restrictions, easement, option, or lease, the
2-36     person presenting the instrument:
2-37                 (1)  shall pay the penalty filing fee provided by
2-38     Subsection (h); and
2-39                 (2)  may not attach a cover sheet to the instrument.
2-40           (d)  If an instrument presented for recording does not comply
2-41     with the requirements of Subsection (b) and the instrument is not a
2-42     deed, deed of trust, mortgage, release, assignment, water district
2-43     notice, notice of restrictions, easement, option, or lease, the
2-44     person presenting the instrument:
2-45                 (1)  must attach a cover sheet that:
2-46                       (A)  contains the information required by
2-47     Subsection (b);
2-48                       (B)  meets the requirements of Section
2-49     191.007(a); and
2-50                       (C)  is not required to be separately signed or
2-51     acknowledged; or
2-52                 (2)  shall pay the penalty filing fee provided by
2-53     Subsection (h).
2-54           (e)  The county clerk may not charge the additional page fee
2-55     prescribed by Section 118.011(a)(2) for recording the cover sheet.
2-56           (f)  An error in the cover sheet or recorder's index
2-57     information or the failure of the cover sheet or recorder's index
2-58     information to comply with this section does not affect the
2-59     validity or enforceability of, or notice imparted by, the
2-60     instrument.
2-61           (g)  The county clerk may use the information required by
2-62     this section to generate a grantor-grantee index.  However, the
2-63     validity or enforceability of, or notice imparted by, the
2-64     instrument shall be determined by the instrument.
2-65           (h)  If the instrument does not comply with Subsection (b),
2-66     the county clerk shall charge a penalty filing fee of $1 for each
2-67     page, not to exceed $5.
2-68           (i)  A federal tax lien, release of a federal tax lien, state
2-69     tax lien, release of a state tax lien, and standard financing
 3-1     statement are exempt from the requirements of this section.
 3-2           SECTION 3.   This Act takes effect January 1, 2000.
 3-3           SECTION 4.  The importance of this legislation and the
 3-4     crowded condition of the calendars in both houses create an
 3-5     emergency and an imperative public necessity that the
 3-6     constitutional rule requiring bills to be read on three several
 3-7     days in each house be suspended, and this rule is hereby suspended.
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