BILL NUMBER: AB 578	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Leno

                        FEBRUARY 18, 2003

   An act to amend Section 27361.4 of, and to add Section 27279.5 to,
the Government Code, relating to county recorders.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 578, as introduced, Leno.  County recorders: electronic
recording.
   (1) Existing law generally provides that the recorder of any
county may, in lieu of a written paper, accept for recording a
digitized image of a recordable instrument, subject to specified
conditions.
   This bill would authorize the county recorder to develop a system
for accepting records for recording electronically.  The bill would
require a county developing an electronic recording system to obtain
a report addressing the safety and security considerations of the
proposed system from a qualifying computer security firm or
consultant, as specified.  The bill would also authorize an
unspecified agency to adopt certain general standards for electronic
recording systems and would require that unspecified agency to report
to the Legislature on counties' electronic recording systems, as
specified.
   (2) Existing law authorizes the board of supervisors of any county
to provide for specified fees for the filing and indexing of
documents with the county recorder.
   This bill would authorize the board of supervisors of any county
to provide for an additional fee of up to $1 per document for
recording of a document electronically.  It would authorize charging
this fee for an unspecified period after a county implements an
electronic recording system.
   Vote:  majority.  Appropriation:  no.  Fiscal committee:  yes.
State-mandated local program:  no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 27279.5 is added to the Government Code, to
read:
   27279.5.  (a) The county recorder may develop an electronic
recording system in accordance with this section.  In establishing
this system, a county recorder shall perform due diligence to ensure
the safety and security of the proposed system.  Any system developed
pursuant to this section shall provide for proper offsite archival
procedures in accordance with guidelines developed pursuant to
Section 12236.  Nothing in this section shall preclude the
application of Section 27203.
   (b) The recorder shall be guided in the exercise of his or her
discretion pursuant to subdivision (a) by the following factors:
   (1) Whether accepting electronically transmitted records is in the
best interest of the county and the public.
   (2) Whether persons requesting access to the program for the
purpose of electronically recording documents have effective security
precautions in place to address potential fraud and forgery of
documents during the electronic recording process.
   (3) Whether the volume and quality of electronic records submitted
will be sufficient to warrant electronic recordation.
   (4) Whether a written agreement exists between the county and
persons requesting access to the program in order to define the
rights and responsibilities of each of them.
   (5) Whether factors of cost, capacity, or security require the
limitation of the provision of access to persons requesting to
participate, based upon business reasons for recording documents,
scope of authority under a license, if any, and volume of documents
recorded in previous years.
   (c) The ____ may adopt standards for the review and approval by
county recorders of systems and processes to conduct electronic
recording of digitized images or electronic records of recordable
instruments.  The standards shall include general guidelines relating
to security, capacity, reliability, and uniformity.
   (d) Before developing an electronic recording system, a county or
county recorder shall consult with, and obtain a report from, a
computer security firm or consultant selected from a list of firms or
consultants approved by the ____.  The report of the consultant
shall be transmitted to ____ and shall include, but not be limited
to, all of the following considerations:
   (1) Safety and security of the proposed system.
   (2) Results of testing of the system's protections against fraud
or intrusion.
   (3) Recommendations of any additional precautions or provisions
needed to ensure that the proposed system is as secure as the
existing paper-based system, and protects the integrity of the
recorder's records.
   (4) Recommendations from the district attorney as to the safety
and security of the proposed system.
   (e) If a district attorney or county counsel for a county
developing an electronic recording system or the Attorney General
reasonably believes that a system pursuant to this section has been
compromised by fraud or intrusion, he or she shall immediately take
the necessary steps to alert the county recorder to guard against any
compromise of the system, which may result in the suspension of
electronic recording.
   (f) Upon request of the county recorder, the Department of Justice
shall conduct a criminal background check of a requester or a
private contractor submitting an electronic recording system for
review and approval.  The cost of the background check may be charged
to the private contractor or requester.
   (g) For the purposes of this section, security testing means an
independent security audit, including, but not limited to, the use of
computer security experts to attempt to penetrate a system for
recording digitized images or electronic recording for the purposes
of testing the security of the system.  The contractor shall perform
an independent security audit prior to and after beginning operation
of an electronic recording system, with results to be provided to the
county recorder and the district attorney for the respective
counties.
   (h) No later than two years after beginning operation of an
electronic recording system, counties continuing to implement an
electronic recording system pursuant to this section shall obtain a
report evaluating the system from a firm or consultant with expertise
in computer security, selected from a list of those firms or
consultants approved by the ____ .
   (i) Periodically, and in no event later than January 31, 2007, the
____ shall compile all of the reports received pursuant to
subdivision (d) and shall report to the Legislature on the results of
the county systems.  The report shall include information regarding
the volume of instruments recorded, costs savings or cost increases,
and changes in the number and effect, if any, of the incidence of
fraudulent documents.
   (j) This authority is in addition to any other authority or
obligation under California or federal law.
  SEC. 2.  Section 27361.4 of the Government Code is amended to read:

   27361.4.  (a) The board of supervisors of any county may provide
for an additional fee of one dollar ($1) for filing every instrument,
paper, or notice for record, in order to defray the cost of
converting the county recorder's document storage system to
micrographics.  Upon completion of the conversion and payment of the
costs therefor,  this additional fee shall no longer be imposed.
   (b) The board of supervisors of any county may provide for an
additional fee, other than the fees authorized in subdivisions (a)
and (c), of one dollar ($1) for filing every instrument, paper, or
notice for record provided that the resolution providing for the
additional fee establishes the days of operation of the county
recorder's offices as every business day except for legal holidays
and those holidays designated as judicial holidays pursuant to
Section 135 of the Code of Civil Procedure.
   (c) The board of supervisors of any county may provide for an
additional fee, other than the fees authorized in subdivisions (a)
and (b), of one dollar ($1) for filing every instrument, paper, or
notice for record provided that the resolution providing for the
additional fee requires that the instrument, paper, or notice be
indexed within two business days after the date of recordation.  

   (d) The board of supervisors of any county may provide for an
additional fee, other than the fee provided for in subdivisions (a),
(b), and (c), of up to one dollar ($1) per document for recording a
document electronically.  This additional fee may be charged for up
to ____ years after the implementation of an electronic recording
system.