HBA-ATS H.B. 2576 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 2576 By: Hamric Business & Industry 3/25/1999 Introduced BACKGROUND AND PURPOSE To index documents filed and recorded in the real property records of the court, the clerk must decipher the names of the parties in the documents. Because real property documents may be complex, it can be difficult to interpret them, causing inaccuracies in indexing. H.B. 2576 requires, among other things, that the first page of a real property instrument filed with the clerk contain the grantor's name, and references to the instrument page number containing any additional grantor names, and the grantee's name, and references to the instrument page number containing any additional grantee names. However, any error in the cover sheet or recorder's index information does not affect the validity or enforceability of, or notice imparted by, the instrument, as that is required to be determined by the instrument. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 191.007(b), Local Government Code, to provide that a page from a legal paper presented to a county clerk for filing or for recording must be a single sheet no wider than 8-1/2 inches and no longer than 14 inches, and that it be printed in type not smaller than 10-point, rather than eight point, type. Includes the provision that a page must be suitable for reproduction by an electronic imaging process used in the office of the county clerk. SECTION 2. Amends Chapter 191, Local Government Code, by adding Section 191.0075, as follows: Sec. 191.0075. ADDITIONAL SPECIFICATIONS FOR REAL PROPERTY RECORDS; FEE FOR NONCOMPLIANCE. (a) Defines "grantor" and "grantee" for purposes of this section. (b) Requires the first page of an instrument presented to a county clerk for recording in the Official Public Records of Real Property to have margins that are at least three inches on top, one inch on the bottom and sides, and free of printing, typing, and writing other than form references, names, and dates, borders, graphics, file numbers, parcel numbers, or names of parties filing the instrument. Requires the first page of an instrument presented to a county clerk for recording in the Official Public Records of Real Property to contain the following information, in the order listed: _on the top left-hand side of the page, the name and address of the person to whom the original instrument will be returned and, if applicable, the name of the title company or law firm presenting the instrument for recording; _the title of the instrument; _the grantor's name, and if applicable, reference to the instrument page number containing additional grantor names; _the grantee's name, and if applicable, reference to the instrument page number containing additional grantee names; and _if applicable, either a legal description of the real property, a brief description of the real property and reference to the instrument page number containing the legal description, or the county clerk's file number, film code number, or volume, page, and book reference of the instrument describing the real property. (c) Requires a person to pay a penalty of $1 for each page, not to exceed $5, if an instrument presented for recording does not comply with the requirements of Subsection (b), and the instrument is a deed, deed of trust, mortgage, release, assignment, water district notice, notice of restrictions, easement, option, or lease. Prohibits a person from attaching a cover sheet to the instrument if an instrument presented for recording does not comply with the requirements of Subsection (b), and the instrument is a deed, deed of trust, mortgage, release, assignment, water district notice, notice of restrictions, easement, option, or lease. (d) Provides that, if an instrument presented for recording does not comply with the requirements of Subsection (b), and the instrument is not a deed, deed of trust, mortgage, release, assignment, water district notice, notice of restrictions, easement, option, or lease, the person presenting the instrument must attach a cover sheet that contains the information required by Subsection (b), meets the requirements of Section 191.007(a), and is not required to be separately signed or acknowledged, or the person is required to pay the penalty filing fee of $1 for each page, not to exceed $5. (e) Prohibits the county clerk from charging the additional page fee prescribed by Section 118.011(a)(2) (Fee Schedule) for recording the cover sheet. (f) Provides that an error in the cover sheet or recorder's index information or the failure of the cover sheet or recorder's index information to comply with this section does not affect the validity or enforceability of, or notice imparted by, the instrument. (g) Authorizes the county clerk to use the information required by this section to generate a grantor-grantee index. Requires the validity or enforceability of, or notice imparted by, the instrument to be determined by the instrument. (h) Requires the county clerk to charge a penalty filing fee of $1 for each page, not to exceed $5, if the instrument does not comply with Subsection (b). (i) Provides that a federal tax lien, release of a federal tax lien, state tax lien, release of a state tax lien, and standard financing statement are exempt from the requirements of this section. SECTION 3. Effective date: September 1, 2000. SECTION 4. Emergency clause.