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BILL ANALYSIS

 

 

Senate Research Center                                                                                                      S.B. 1589

                                                                                                                                          By: Carona

                                                                                                               Intergovernmental Relations

                                                                                                                                              6/3/2005

                                                                                                                                              Enrolled

 

 

AUTHOR'S/SPONSOR'S STATEMENT OF INTENT

 

Under current law there is no requirement or authority for a county clerk who believes a document is fraudulent to seek assistance. S.B. 1589 prevents the fraudulent filing and recording of liens.  This bill requires a county clerk and the secretary of state, who in good faith believes that an instrument or document is fraudulent, to notify the county or district attorney, or the attorney general, as applicable, before filing, for a determination of whether the document is fraudulent.

 

RULEMAKING AUTHORITY

 

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

 

SECTION BY SECTION ANALYSIS

 

SECTION 1.  Amends Section 51.901, Government Code, by adding Subsection (d), as follows:

 

(d)  Requires a county clerk, if the clerk believes in good faith that a document filed with the county clerk to create a lien is fraudulent, to take certain actions relating to examining the lien.

 

SECTION 2.  Amends Subchapter B, Chapter 405, Government Code, by adding Section 405.021, as follows:

 

Sec. 405.021.  FILING OR RECORDING OF FRAUDULENT DOCUMENT.  Requires the secretary of state, if the secretary of state believes in good faith that a document filed with the secretary of state to create a lien is fraudulent, to take certain actions relating to examining the lien.

 

SECTION 3.  Effective date: September 1, 2005.