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Home My WebLink AboutMINUTES - 03202001 - C.60 TO: BOARD OF SUPERVISORS ~� * CONTRA COSTA COUNTY FROM: John Sweeten, County Administrator DATE: March 20, 2001 SUBJECT: AB 478 (Cancimilla) - Sponsor SPECIFIC REQUEST(S) OR RECOMMIENDATION(S) & BACKGROUND AND JUSTIFICATION RECOMMENDATION(S): SPONSOR AB 478 (Canciamilla) which authorizes the Contra Costa County Recorder to accept digitized images of recordable instruments under specified terms and conditions. BACKGROUND/REASON(S) FOR RECOMMENDATION(S): During the 2000 legislative session, the Board of Supervisors sponsored legislation to allow the Contra Costa County Recorder to accept digitized images of recordable images under specified terms and conditions. Due to various reasons, the bill was not enacted. This bill continues the County's sponsorship to allow the County Recorder to accept digitized images of recordable instruments. CONTINUED ON ATTACHMENT: —YES SIGNATURE: _ RECOMMENDATION OF COUNTY ADMINISTRATOR_RECOMMENDATION OF BoAp COMMITTEE --.,APPROVE —OTHER SIGNATURE(S): ACTION OF BOAR O March 20 2001 APPROVED A3 RECOMMENDED XX OTHER VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A XX_UNANIMOUS(ABSENT - - - - - ) TRUE AND CORRECT COPY OF AN AYES: NOES: ACTION TAKEN AND ENTERED ABSENT: ABSTAIN: ON MINUTES OF THE BOARD OF SUPERVISORS ON THE DATE SHOWN. Contact: ATTESTED March 20. 2001 JOHN SWEETEN,CLERK OF THE BOARD OF SUPERVISORS AND COUNTY ADMINISTRATOR cc: CAO Clerk-Recorder BY DEPUTY AB 478 Assembly Bill- INTRODUCED Pagel of 3 v . C�Go BILL NUMBER: AB 478 INTRODUCED BILL TEXT INTRODUCED BY Assembly Member Canciamilla FEBRUARY 21, 2001 An act to add and repeal Sections 27279.6, 27279.7, and 27279.8 of the Government Code, relating to local agency procedures, and making an appropriation therefor. LEGISLATIVE COUNSEL'S DIGEST AB 478, as introduced, Canciamilla. Local agency procedures: recordable instruments. Existing law 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 grant the same authority to the county recorder of Contra Costa County and, with respect to that county, would authorize acceptance of a digitized image or an electronic record of a recordable instrument if those specified conditions and additional conditions are met. The bill would authorize the district attorney and the county recorder to conduct an audit of a person who provides recording services, as specified. The district attorney or county recorder would be authorized to suspend or decertify a recording system upon a finding of system defects, and the county recorder would be required to adopt procedures governing the review and approval of systems and processes to conduct electronic recording of digitized images or electronic records of recordable instruments. This bill would require each private contractor submitting a system for review to pay a specified fee to the county recorder. The bill would also make persons who provide recording services financially liable for willful or negligent acts of their employees that result in consumer harm and would authorize the district attorney to issue a cease and desist order to these persons, as specified. This bill would repeal these provisions as of January 1, 2005. Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 27279.6 is added to the Government Code, to read: 27279.6. The Contra Costa County recorder, subject to Section 27279.7, may accept, in lieu of a written paper document, a digitized image or an electronic record of a recordable instrument if all of the following conditions are met: (a) The requester and addressee for delivery of the recorded image meets the criteria set forth in Section 27279.2 or subdivisions (b) , . (c) , and (d) . (b) The requester is legally authorized to conduct business in this state and has a legitimate business reason for recording documents with the county recorder. The requester is licensed, provides services, is identified, or is partially owned by, an entity http://www.leginfo.ca.gov/pubibilVasm/ab 0451-0500/ab 478 bill 20010221_introduced.html 3/8/01 AB 478 Assembly Bill- INTRODUCED Page 2 of 3 identified pursuant to one or more of the following: (1) Section 10131 or subdivision (a) of Section 10133.1 of the Business and Professions Code. (2) Section 2924 as it applies to a mortgagee or trustee, Section 2934a or 2941 of the Civil Code. (3) Section 143, Division 2 (commencing with Section 50000) , or Division 9 (commencing with Section 22000) of the Financial Code. (4) Sections 12340.4, 12340.5, ELnd 12340.6 of the Insurance Code. (5) Financial institutions, as defined in Public Law 106-102 (15 U.S.C. Sec. 6801 and following) . (c) There is a contractual relationship between the recorder and the person requesting recordation. These contracts shall include mutually agreed upon standards of operation for digital imaging or an electronic record of a recordable instrument and shall be offered to all qualified parties on the same terms and conditions. The contract shall include provisions requiring that the requester use only software and systems approved by the Attorney General, an identification of each party who can record for the requester, and a requirement that the requester comply with any audit of the electronic recording system that may be conducted by the district attorney or county recorder. (d) 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: (1) Whether or not the volume and quality of digitized instruments submitted by the requester will be sufficient to warrant electronic recordation. (2) 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. (e) The district attorney or county recorder may conduct audits of any requester who has contracted to conduct electronic recording of documents. (f) No surcharge or additional fee shall be charged by the county recorder for documents recorded in digital or electronic form. For purposes of this section, a single cover page that is necessary to contain indexing and other required information shall be considered an additional page for purposes of recording fees. (g) This section shall remain in effect only until January 1, 2005, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2005, deletes or extends that date. SEC. 2. Section 27279.7 is added to the Government Code, to read: 27279.7. (a) If the Contra Costa County recorder intends to accept digitized images or electronic records of recordable instruments pursuant to Section 27279.6, the district attorney may first review and approve the system to be utilized in accordance with Section 27279.8. (b) This section shall remain in effect only until January 1, 2005, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2005, deletes or extends that date. SEC. 3. Section 27279.8 is added to the Government Code, to read: 27279.8. (a) The Contra Costa County recorder shall develop procedures for conducting electronic recording of digitized images or electronic records of recordable instruments pursuant to Section 27279.6. The procedures shall include the factors of security, capacity, reliability, and uniformity. The procedures shall ensure http://www.leginfo.ca.gov/pub/bifl/asm/ab 0451-0500/ab 478_bill 20010221_introduced.html 3/8/01 AB 478 Assembly Bill- INTRODUCED Page 3 of 3 that systems have the capability of identifying unusual activity that may indicate fraud and shall specify the approximate frequency of audits that may be conducted pursuant to subdivision (e) of Section 27279.6, and the procedure for decertification or suspension of a system pursuant to subdivision (g) of this section. (b) The county recorder shall adopt the procedures developed pursuant to subdivision (a) after a public comment period. (c) The county recorder shall use the procedures adopted pursuant to subdivision (b) for the review of electronic recording systems submitted by private contractors intending to provide those systems to county recorders for electronic recording purposes. (d) Requesters shall be financially liable for willful or negligent acts of their employees that result in consumer harm through electronic recording of documents. (e) Each private contractor submitting an electronic recording system to the county recorder for review and approval shall pay a fee determined by the county recorder to cover the actual cost of the review. (f) The county recorder may, at his or her discretion, conduct background checks of each private contractor submitting an electronic recording system for review and approval. (g) The county recorder or district attorney may suspend or decertify the use of any system upon a finding of system defects. The district attorney may also issue an order to any requester to cease and desist electronic recording if the county recorder or district attorney has reasonable suspicion of fraudulent activity. (h) Nothing in this section shall be construed to remove current requirements for document examination and permanent archival preservation by county recorders. (i) This section shall remain in effect only until January 1, 2005, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2005, deletes or extends that date. http://www.leginfo.ca.gov/pub/bifl/asn/ab 0451-0500/ab 478 bill 20010221_introduced.html 3/8/01