BILL NUMBER: AB 1906 CHAPTERED
BILL TEXT
CHAPTER 463
FILED WITH SECRETARY OF STATE SEPTEMBER 14, 1998
APPROVED BY GOVERNOR SEPTEMBER 13, 1998
PASSED THE ASSEMBLY AUGUST 11, 1998
PASSED THE SENATE AUGUST 6, 1998
AMENDED IN SENATE JULY 6, 1998
AMENDED IN SENATE JUNE 23, 1998
AMENDED IN ASSEMBLY MAY 12, 1998
AMENDED IN ASSEMBLY APRIL 30, 1998
INTRODUCED BY Assembly Member Brewer
FEBRUARY 17, 1998
An act to add Section 2106.5 to the Code of Civil Procedure, and
to add Sections 27279.2 and 27279.4 to, to add and repeal Section
27279.3 of, and to repeal and add Section 27279.1 of, the Government
Code, relating to local agency procedures.
LEGISLATIVE COUNSEL'S DIGEST
AB 1906, Brewer. Local agency procedures: recordable
instruments.
Existing law, until January 1, 1999, authorizes the county
recorders in the Counties of San Bernardino and Orange to accept for
recording, in lieu of a written paper document, a digitized image of
a recordable instrument if specified conditions are met.
This bill would revise and recast these provisions to require that
the requester and the addressee for delivery of the recorded image
meet specified criteria, and would make the authorization permanent
for these counties. The bill would also limit until January 1, 2000,
the authorization of requesters and addressees that are licensed
title insurers or licensed title companies who may submit a digitized
instrument or document for recording. The bill would also,
effective January 1, 2000, expand the requesters and addressees that
the counties may accept for delivery of a recorded image if certain
conditions are met.
This bill would require the state Attorney General to appoint an
Electronic Recordation Task Force to meet on a regular basis to
address technical, legal, security, and economic issues associated
with electronic recordation, recommend which persons and entities
should be authorized to digitize and record documents electronically
after January 1, 2000, and prepare and submit recommendations to the
Governor and the Legislature by July 1, 1999.
The bill would also authorize the transmission, filing, recording,
and indexing of notices of federal tax liens by electronic or
magnetic means, using computerized data processing,
telecommunications, and other similar information technologies
available to the filing offices.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 2106.5 is added to the Code of Civil Procedure,
to read:
2106.5. This title shall be applied and construed to permit the
transmission, filing, recording, and indexing of notices of federal
tax liens and all certificates that relate to or affect those liens,
including, but not limited to, certificates of release, discharge,
subordination, and nonattachment, by electronic or magnetic means,
using computerized data processing, telecommunications, and other
similar information technologies available to the filing offices.
SEC. 2. Section 27279.1 of the Government Code is repealed.
SEC. 3. Section 27279.1 is added to the Government Code, to read:
27279.1. (a) The recorders of San Bernardino County and Orange
County may accept, in lieu of a written paper document, a digitized
image of a recordable instrument if both of the following conditions
are met:
(1) The requester and addressee for delivery of the recorded image
meets the criteria set forth in either Section 27279.2 or 27279.3.
(2) The county recorder determines that accepting electronically
recorded documents from the requester is in the best interest of the
county and the public. Factors the county recorder shall consider
include, but are not limited to, both of the following:
(A) Whether or not the volume and quality of digitized instruments
submitted by the requester will be sufficient to warrant electronic
recordation.
(B) Whether, in order to protect the county and the public, the
requester has effective security precautions addressing potential
fraud and forging of documents in the electronic recordation process.
(b) The Legislature finds and declares that, because of the unique
circumstances applicable to the counties referenced in subdivision
(a), as regards the present ability of these counties to process
digitized images for electronic recordation, a statute of general
applicability cannot be enacted within the meaning of subdivision (b)
of Section 16 of Article IV of the California Constitution.
SEC. 4. Section 27279.2 is added to the Government Code, to read:
27279.2. For purposes of Section 27279.1, the requester and
addressee for delivery of a recorded image may record a digitized
image of a recordable instrument if it is an entity, agency, branch,
or instrumentality of the state or federal government qualifying
under either Section 27279 of this code or Section 2106.5 of the Code
of Civil Procedure.
SEC. 5. Section 27279.3 is added to the Government Code, to read:
27279.3. (a) For purposes of Section 27279.1, a requester and
addressee for delivery of a recorded image may record a digitized
image of a recordable instrument if it is a licensed title insurer,
as defined in Section 12340.4 of the Insurance Code, or a licensed
underwritten title company, as defined in Section 12340.5 of the
Insurance Code.
(b) This section shall remain in effect only until January 1,
2000, and as of that date is repealed, unless a later enacted
statute, enacted before January 1, 2000, deletes or extends that
date.
SEC. 6. Section 27279.3 is added to the Government Code, to read:
27279.3. (a) A requester and addressee for delivery of a recorded
image may record a digitized image of a recordable instrument if the
requester meets the conditions set forth in paragraph (2) of
subdivision (a) of Section 27279.1.
(b) This section shall become operative on January 1, 2000.
SEC. 7. Section 27279.4 is added to the Government Code, to read:
27279.4. (a) The California Attorney General shall appoint an
Electronic Recordation Task Force consisting of voluntary
representatives from governmental agencies and industry groups
specified in subdivision (b) who shall meet on a regular basis to
address the technical, legal, security and economic issues associated
with electronic recordation. The task force shall make
recommendations regarding all of the following:
(1) In addition to requesters qualifying under Section 27279.2,
which persons and entities should be authorized to digitize and
record documents electronically after January 1, 2000, in order to
limit real property fraud, forgery, and consumer risks associated
with electronic recordation and provide a cost benefit to the county.
(2) Guidelines for the standardization of both software and
hardware used by counties to ensure maximum efficiency, cost
effectiveness, and maximum use of the electronic recordation process
by requesters qualifying under Sections 27279.2 and 27279.3.
(3) Appropriate recording fees and other assessments to cover
increased costs to both county recorders and requesters.
(b) The task force described in subdivision (a) shall consist of
representatives from governmental and industry groups, including
county recorders, county district attorneys, the Franchise Tax Board,
Fannie Mae, the United States Internal Revenue Service, trustees,
mortgage bankers, financial institutions, and the title insurance and
real estate industries.
(c) Notwithstanding Section 7550.5, the task force shall prepare
and submit its complete recommendations to the Governor and the
Legislature no later than July 1, 1999.