BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 578
                                                                  Page  1

          Date of Hearing:   April 30, 2003

                       ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
                                Sim?n Salinas, Chair
                     AB 578 (Leno) - As Amended:  April 24, 2003
           
          SUBJECT  :   County recorders: electronic recording.

           SUMMARY  :   Creates the Electronic Recording Delivery System Act  
          of 2003.   Specifically,  this bill  authorizes, until January 1,  
          2011, up to 12 county recorders to establish an electronic  
          recording delivery system after first obtaining approval from  
          their respective boards of supervisors, and subjects the  
          establishment of the systems to oversight and regulation by the  
          Attorney General (AG), and numerous other specified conditions.

           EXISTING LAW  :

          1)Requires county recorders to record written documents that  
            transfer title to or impose liens on property, or give a right  
            to a debt or duty. 

          2)Authorizes county recorders to accept digitized images from  
            any local, state or federal agency, so long as the technology  
            used to create the image conforms to all applicable statutes  
            regulating document reliability. 

          3)The Uniform Electronic Transactions Act (UETA) provides rules  
            and procedures for the sending and receiving of electronic  
            records and signatures, the formation of contracts using  
            electronic records, and procedures governing changes and  
            errors in electronically transmitted records.  The UETA  
            applies to all transactions in which records or signatures are  
            electronically transmitted by parties who have agreed to  
            conduct the transaction electronically. 

          4)Permits the recorders from the counties of Orange and San  
            Bernardino to accept digitized images for recordation subject  
            to specified criteria. 

          5)Provides that the AG shall appoint a Task Force to make  
            recommendations regarding the technical, legal, security and  
            economic issues associated with electronic recordation, and  
            that the Task Force shall report its recommendations to the  
            Governor and Legislature no later than July 1, 1999.








                                                                  AB 578
                                                                  Page  2

           
           FISCAL EFFECT  :   Unknown

           COMMENTS  :   This bill is on calendar for the sole purpose of  
          adopting an urgency clause.

           






          REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          CA Association of Realtors [CO-SPONSOR]
          CA Mortgage Bankers Association [CO-SPONSOR]
          FANNIE MAE [CO-SPONSOR]
          CA Bankers Association
          CA Business Properties Association

           Opposition 
           
          Los Angeles District Attorney's Office
           

          Analysis Prepared by  :    Frances Chacon / L. GOV. / (916)  
          319-3958