BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                       AB 679


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          ASSEMBLY THIRD READING


          AB  
          679 (Travis Allen)


          As Amended  May 18, 2015


          Majority vote


           ------------------------------------------------------------------ 
          |Committee       |Votes |Ayes                 |Noes                |
          |                |      |                     |                    |
          |                |      |                     |                    |
          |----------------+------+---------------------+--------------------|
          |Local           |6-1   |Maienschein,         |Alejo               |
          |Government      |      |Gonzalez, Chiu,      |                    |
          |                |      |Holden, Linder,      |                    |
          |                |      |Waldron              |                    |
          |                |      |                     |                    |
          |----------------+------+---------------------+--------------------|
          |Appropriations  |16-0  |Gomez, Bigelow,      |                    |
          |                |      |Bonta, Calderon,     |                    |
          |                |      |Chang, Daly, Eggman, |                    |
          |                |      |Gallagher, Eduardo   |                    |
          |                |      |Garcia, Holden,      |                    |
          |                |      |Jones, Quirk,        |                    |
          |                |      |Rendon, Wagner,      |                    |
          |                |      |Weber, Wood          |                    |
          |                |      |                     |                    |
          |                |      |                     |                    |
           ------------------------------------------------------------------ 


          SUMMARY:  Requires any document presented for county recording to  
          state the number of pages to be recorded.  Specifically, this  








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          bill:  


          1)Requires any instrument, paper, or notice presented for  
            recordation to state the number of pages to be recorded.


          2)Allows the number of pages to be recorded to be stated on a  
            cover page or a sticker on the first page of the instrument,  
            paper, or notice.


          3)Requires the county recorder to verify that the number of pages  
            to be recorded stated on the cover page or sticker matches the  
            number of pages presented for recordation.


          EXISTING LAW requires the recorder of each county, upon payment of  
          proper fees and taxes, to accept for recordation any instrument,  
          paper, or notice that is authorized or required by law to be  
          recorded.  These documents must comply with specified standards  
          respecting margins, quality of paper, print size and color, and  
          other related matters.


          FISCAL EFFECT:  According to the Assembly Appropriations  
          Committee, minor nonreimbursable state mandated costs.  County  
          recorders are authorized to assess fees to recover the  
          administrative cost of recording documents if the administrative  
          cost increases.


          COMMENTS:  


          1)Bill Summary.  This bill requires any document presented for  
            county recording to state the number of pages to be recorded,  
            which can be satisfied with a cover page or a sticker attached  
            to the first page of the filing.  This bill also requires the  








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            recorder to verify this page count.  This bill is sponsored by  
            the author.


          2)Author's Statement.  According to the author, "This bill would  
            require that a count of all pages to be submitted be on the  
            front page of recorded documents to ensure that no documents are  
            lost.  AB 679 will make it easier for individuals who are  
            submitting documents to be recorded by the county to ensure all  
            pages of a given document are present.  This will, therein,  
            reduce the risk of lengthy and expensive court procedures to  
            restore or verify recorded documents."


          3)Background.  Existing law requires the recorder of each county,  
            upon payment of proper fees and taxes, to accept for recordation  
            any instrument, paper, or notice that is authorized or required  
            by law to be recorded.  These documents must comply with  
            specified standards respecting margins, quality of paper, print  
            size and color, and other related matters.


            This recording is done by a county-appointed official, the  
            County Recorder (or, in some counties, the Clerk-Recorder), who  
            officially records these documents and archives them for public  
            access.  Documents that are commonly recorded include payments  
            of taxes or fees, filings of fictitious business names, deeds,  
            mortgage documents, easements, power of attorney documents,  
            liens, and any documents that affect the ownership of any given  
            property.


            According to the author, when documents are processed by a  
            county recorder, pages can be lost or go missing, resulting in  
            lengthy and expensive court processes to restore the document  
            and/or provide a new copy.  This bill requires documents  
            submitted for recording to state the number of pages to be  
            recorded on the first page, to ensure that no documents are  
            lost.  This bill also requires the county recorder to verify  








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            this page count.


          4)Arguments in Support.  None on file.


          5)Arguments in Opposition.  The California Land Title Association  
            (CLTA), which has taken an "oppose, unless amended" position,  
            writes:


               AB 679 could render some documents unrecordable or  
               invalid simply because a new pagination requirement is  
               not fully met:  AB 679 would require documents presented  
               to county recorders for recordation to state the number  
               of pages to be recorded sticker affixed to the cover  
               page of the document.  While CLTA applauds the intent of  
               the legislation, AB 679 as drafted stands to  
               unnecessarily complicate the recordation process and  
               could unintentionally call into question the  
               recordability or validity of documents that do not meet  
               the statute's requirements as currently drafted.  


               Furthermore, AB 679 provides no safeguards against  
               instances of missing or inaccurate page counts, which  
               could call into question the recordability or validity  
               of documents that have not met the statute's  
               requirements simply because the new pagination count  
               requirement created by this bill is not met or is  
               slightly inaccurate.   Amendments need to be added that  
               make clear that failing to comply with this new  
               requirement do NOT render the document unrecordable or  
               invalid.


               AB 679 could result in delays in real property  
               transactions:  The new requirement, if it is interpreted  
               to make a document unrecordable or invalid could  








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               substantially slow down real estate transactions if  
               documents are rejected at the time of presentation, or  
               complicate consummated transactions if the validity of  
               documents is challenged after recordation due to missing  
               or inaccurate page counts.  It is vital that AB 679  
               expressly states that if the page counts are missing or  
               inaccurate that the recordability or validity of the  
               documents not be affected.


               AB 679 should be optional for country recorders:  Given  
               that there has not been a [hue] and cry throughout  
               California to require pagination up to this point, CLTA  
               asserts that such a requirement is an isolated matter  
               and county recorders, subject to retooling of operations  
               and procedures every time a new recording requirement is  
               created, should be free to adopt or reject this new  
               requirement.  In short, counties should be allowed to  
               'opt in' to such a program.  CLTA believes amendments  
               should be taken to make this opt in provision clear.




          Analysis Prepared by:                                               
                          Angela Mapp / L. GOV. / (916) 319-3958  FN:  
          0000531