S.B. 79 Enrolled

             1     

UNIFORM REAL PROPERTY ELECTRONIC RECORDING

             2     
ACT

             3     
2014 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Lyle W. Hillyard

             6     
House Sponsor: V. Lowry Snow

             7     
             8      LONG TITLE
             9      General Description:
             10          This bill enacts provisions related to the Uniform Real Property Electronic Recording
             11      Act.
             12      Highlighted Provisions:
             13          This bill:
             14          .    defines terms;
             15          .    provides for the validity of and recording of electronic documents;
             16          .    creates the Utah Electronic Recording Commission to establish electronic recording
             17      standards;
             18          .    requires a phased-in implementation by class of county; and
             19          .    authorizes a county recorder to collect an electronic recording surcharge to recover
             20      implementation costs.
             21      Money Appropriated in this Bill:
             22          None
             23      Other Special Clauses:
             24          This bill provides an effective date.
             25      Utah Code Sections Affected:
             26      AMENDS:
             27           17-21-1 , as last amended by Laws of Utah 2008, Chapter 97
             28           17-21-18.5 , as last amended by Laws of Utah 2011, Chapter 345
             29           17-21-20 , as last amended by Laws of Utah 2011, Chapter 88


             30           57-3-106 , as last amended by Laws of Utah 2011, Chapter 88
             31      ENACTS:
             32           17-21a-101 , Utah Code Annotated 1953
             33           17-21a-102 , Utah Code Annotated 1953
             34           17-21a-201 , Utah Code Annotated 1953
             35           17-21a-202 , Utah Code Annotated 1953
             36           17-21a-203 , Utah Code Annotated 1953
             37           17-21a-301 , Utah Code Annotated 1953
             38           17-21a-302 , Utah Code Annotated 1953
             39           17-21a-401 , Utah Code Annotated 1953
             40           17-21a-402 , Utah Code Annotated 1953
             41           17-21a-403 , Utah Code Annotated 1953
             42     
             43      Be it enacted by the Legislature of the state of Utah:
             44          Section 1. Section 17-21-1 is amended to read:
             45           17-21-1. Recorder -- Document custody responsibility -- Electronic submission
             46      procedures and guidelines.
             47          The county recorder:
             48          (1) is custodian of all recorded documents and records required by law to be recorded;
             49          (2) shall establish policies and procedures that the recorder considers necessary to
             50      protect recorded documents and records in the recorder's custody, including determining the
             51      appropriate method for the public to obtain copies of the public record under Section 17-21-19
             52      and supervision of those who search and make copies of the public record; [and]
             53          (3) may establish procedures and guidelines to govern the electronic submission of
             54      plats, records, and other documents to the county recorder's office consistent with Title 46,
             55      Chapter 4, Uniform Electronic Transactions Act[.], and Chapter 21a, Uniform Real Property
             56      Electronic Recording Act; and
             57          (4) shall establish procedures to govern the electronic submission of plats, records, and


             58      other documents to the county recorder's office consistent with standards established under
             59      Chapter 21a, Uniform Real Property Electronic Recording Act, by:
             60          (a) if in a county of the first or second class, July 1, 2016;
             61          (b) if in a county of the third or fourth class, July 1, 2017; or
             62          (c) if in a county of the fifth or sixth class, July 1, 2018.
             63          Section 2. Section 17-21-18.5 is amended to read:
             64           17-21-18.5. Fees of county recorder.
             65          (1) The county recorder shall receive the following fees:
             66          (a) for recording any instrument, not otherwise provided for, other than bonds of public
             67      officers, $10;
             68          (b) for recording any instrument, including those provided for under Title 70A,
             69      Uniform Commercial Code, other than bonds of public officers, and not otherwise provided
             70      for, $10 for the first page and $2 for each additional page, and if an instrument contains more
             71      than one description, $1 for each additional description;
             72          (c) for recording a right-of-way connected with or appurtenant to any tract of land
             73      described in the instrument, $1, but if the instrument contains a description of more than one
             74      right-of-way, $1 for each additional right-of-way, and if an instrument contains more than two
             75      names for either the first or second party, or the plaintiffs or defendants, $1 for each additional
             76      name;
             77          (d) for recording mining location notices and affidavits of labor affecting mining
             78      claims, $10 for the first page and $2 for each additional page; and
             79          (e) for a location notice, affidavit, or proof of labor which contains names of more than
             80      two signers, $1 for each additional name, and for an affidavit or proof of labor which contains
             81      more than one mining claim, $1 for each additional mining claim.
             82          (2) (a) Each county recorder shall record the mining rules of the several mining
             83      districts in each county without fee.
             84          (b) Certified copies of these records shall be received in all tribunals and before all
             85      officers of this state as prima facie evidence of the rules.


             86          (3) The county recorder shall receive the following fees:
             87          (a) for copies of any record or document, a reasonable fee as determined by the county
             88      legislative body;
             89          (b) for each certificate under seal, $5;
             90          (c) for recording any plat, $30 for each sheet and $1 for each lot or unit designation;
             91          (d) for taking and certifying acknowledgments, including seal, $5 for one name and $2
             92      for each additional name;
             93          (e) for recording any license issued by the Division of Occupational and Professional
             94      Licensing, $10; and
             95          (f) for recording a federal tax lien, $10, and for the discharge of the lien, $10.
             96          (4) (a) For recording a document that is subject to and complies with the Real Estate
             97      Settlement and Procedure Act, 12 U.S.C. Sec. 2601 et seq. for a residential property
             98      constructed for at least one family but no more than four families, the county recorder shall
             99      receive:
             100          (i) $14 for each deed of conveyance;
             101          (ii) $40 for each deed of trust; and
             102          (iii) $14 for each assignment of a deed of trust when recorded concurrently with the
             103      assigned deed of trust.
             104          (b) If a person submits for recording a document described in Subsection (4)(a), the
             105      person shall notify the county recorder by including the word "RESPA" in at least 16 point font
             106      on the front page of each document.
             107          (c) A county recorder is not required to:
             108          (i) refund a fee described in Subsection (4)(a); or
             109          (ii) change a fee amount shown on a recorded document if the fee described in
             110      Subsection (4)(a) is not collected at the time of recording.
             111          (d) A county recorder may examine a document recorded under this Subsection (4) for
             112      compliance with the Real Estate Settlement and Procedure Act, 12 U.S.C. Sec. 2601 et seq.
             113          (5) In addition to any other fee that the county recorder is authorized to charge and


             114      collect, if a county recorder is required to comply with the standards established under Chapter
             115      21a, Uniform Real Property Electronic Recording Act, the county recorder may charge and
             116      collect from a person who submits an electronic document, as defined in Section 17-21a-102 ,
             117      for recording, a surcharge that:
             118          (a) is calculated to recover the additional costs of complying with Chapter 21a,
             119      Uniform Real Property Electronic Recording Act; and
             120          (b) may not exceed 10% of the cost before the surcharge.
             121          [(5)] (6) The county may determine and collect a fee for all services not enumerated in
             122      this section.
             123          [(6)] (7) A county recorder may not be required to collect a fee for services that are
             124      unrelated to the county recorder's office.
             125          Section 3. Section 17-21-20 is amended to read:
             126           17-21-20. Recording required -- Recorder may impose requirements on
             127      documents to be recorded -- Prerequisites -- Additional fee for noncomplying documents
             128      -- Recorder may require tax serial number -- Exceptions -- Requirements for recording
             129      final local entity plat.
             130          (1) Subject to Subsections (2), (3), and (4), each paper, notice, and instrument required
             131      by law to be recorded in the office of the county recorder shall be recorded unless otherwise
             132      provided.
             133          (2) [Each document executed on or after July 1, 2007,] Subject to Chapter 21a,
             134      Uniform Real Property Electronic Recording Act, each document that is submitted for
             135      recording to a county recorder's office shall:
             136          (a) unless otherwise provided by law, be an original or certified copy of the document;
             137          (b) be in English or be accompanied by an accurate English translation of the
             138      document;
             139          (c) contain a brief title, heading, or caption on the first page stating the nature of the
             140      document;
             141          (d) except as otherwise provided by statute, contain the legal description of the


             142      property that is the subject of the document;
             143          (e) comply with the requirements of Section 17-21-25 and Subsections 57-3-105 (1)
             144      and (2);
             145          (f) except as otherwise provided by statute, be notarized with the notary stamp with the
             146      seal legible; and
             147          (g) have original signatures.
             148          (3) (a) [Beginning September 1, 2007] Subject to Chapter 21a, Uniform Real Property
             149      Electronic Recording Act, a county recorder may require that each paper, notice, and
             150      instrument submitted for recording in the county recorder's office:
             151          (i) be on white paper that is 8-1/2 inches by 11 inches in size;
             152          (ii) have a margin of one inch on the left and right sides and at the bottom of each
             153      page;
             154          (iii) have a space of 2-1/2 inches down and 4-1/2 inches across the upper right corner
             155      of the first page and a margin of one inch at the top of each succeeding page;
             156          (iv) not be on sheets of paper that are continuously bound together at the side, top, or
             157      bottom;
             158          (v) not contain printed material on more than one side of each page;
             159          (vi) be printed in black ink and not have text smaller than seven lines of text per
             160      vertical inch; and
             161          (vii) be sufficiently legible to make certified copies.
             162          (b) A county recorder who intends to establish requirements under Subsection (3)(a)
             163      shall first:
             164          (i) provide formal notice of the requirements; and
             165          (ii) establish and publish an effective date for the requirements that is at least three
             166      months after the formal notice under Subsection (3)(b)(i).
             167          (c) If a county recorder establishes requirements under this Subsection (3), the county
             168      recorder may charge and collect from persons who submit a document for recording that does
             169      not comply with the requirements, in addition to any other fee that the county recorder is


             170      authorized to charge and collect, a fee that:
             171          (i) is calculated to recover the additional cost of handling and recording noncomplying
             172      documents; and
             173          (ii) may not exceed $2 per page.
             174          (4) (a) To facilitate the abstracting of an instrument, a county recorder may require that
             175      the applicable tax serial number of each parcel described in the instrument be noted on the
             176      instrument before it may be accepted for recording.
             177          (b) If a county recorder requires the applicable tax serial number to be on an instrument
             178      before it may be recorded:
             179          (i) the county recorder shall post a notice of that requirement in a conspicuous place at
             180      the recorder's office;
             181          (ii) the tax serial number may not be considered to be part of the legal description and
             182      may be indicated on the margin of the instrument; and
             183          (iii) an error in the tax serial number does not affect the validity of the instrument or
             184      effectiveness of the recording.
             185          (5) Subsections (2), (3), and (4) do not apply to:
             186          (a) a map;
             187          (b) a certificate or affidavit of death;
             188          (c) a military discharge;
             189          (d) a document regarding taxes that is issued by the Internal Revenue Service of the
             190      United States Department of the Treasury;
             191          (e) a document submitted for recording that has been filed with a court and conforms to
             192      the formatting requirements established by the court; or
             193          (f) a document submitted for recording that is in a form required by law.
             194          (6) (a) As used in this Subsection (6):
             195          (i) "Boundary action" has the same meaning as defined in Section 17-23-20 .
             196          (ii) "Local entity" has the same meaning as defined in Section 67-1a-6.5 .
             197          (b) A person may not submit to a county recorder for recording a plat depicting the


             198      boundary of a local entity as the boundary exists as a result of a boundary action, unless:
             199          (i) the plat has been approved under Section 17-23-20 by the county surveyor as a final
             200      local entity plat, as defined in Section 17-23-20 ; and
             201          (ii) the person also submits for recording:
             202          (A) the original notice of an impending boundary action, as defined in Section
             203      67-1a-6.5 , for the boundary action for which the plat is submitted for recording;
             204          (B) the original applicable certificate, as defined in Section 67-1a-6.5 , issued by the
             205      lieutenant governor under Section 67-1a-6.5 for the boundary action for which the plat is
             206      submitted for recording; and
             207          (C) each other document required by statute to be submitted for recording with the
             208      notice of an impending boundary action and applicable certificate.
             209          (c) Promptly after recording the documents described in Subsection (6)(b) relating to a
             210      boundary action, but no later than 10 days after recording, the county recorder shall send a copy
             211      of all those documents to the State Tax Commission.
             212          Section 4. Section 17-21a-101 is enacted to read:
             213     
CHAPTER 21a. UNIFORM REAL PROPERTY ELECTRONIC RECORDING     ACT

             214     
Part
    1. General Provisions

             215          17-21a-101. Title.
             216          (1) This chapter is known as the "Uniform Real Property Electronic Recording Act."
             217          (2) This part is known as "General Provisions."
             218          Section 5. Section 17-21a-102 is enacted to read:
             219          17-21a-102. Definitions.
             220          As used in this chapter:
             221          (1) "Commission" means the Utah Electronic Recording Commission established in
             222      Section 17-21a-302 .
             223          (2) "Document" means information that is:
             224          (a) inscribed on a tangible medium or that is stored in an electronic or other medium
             225      and is retrievable in perceivable form; and


             226          (b) eligible to be recorded in the land records maintained by the county recorder.
             227          (3) "Electronic" means relating to technology having electrical, digital, magnetic,
             228      wireless, optical, electromagnetic, or similar capabilities.
             229          (4) "Electronic document" means a document that is received by the county recorder in
             230      an electronic form.
             231          (5) "Electronic signature" means an electronic sound, symbol, or process attached to or
             232      logically associated with a document and executed or adopted by a person with the intent to
             233      sign the document.
             234          (6) "Person" means an individual, corporation, business trust, estate, trust, partnership,
             235      limited liability company, association, joint venture, public corporation, government, or
             236      governmental subdivision, agency, or instrumentality, or any other legal or commercial entity.
             237          (7) "State" means a state of the United States, the District of Columbia, Puerto Rico,
             238      the United States Virgin Islands, or any territory or insular possession subject to the jurisdiction
             239      of the United States.
             240          Section 6. Section 17-21a-201 is enacted to read:
             241     
Part 2. Electronic Documents

             242          17-21a-201. Title.
             243          This part is known as "Electronic Documents."
             244          Section 7. Section 17-21a-202 is enacted to read:
             245          17-21a-202. Validity of electronic documents.
             246          (1) If a law requires, as a condition for recording, that a document be an original, be on
             247      paper or another tangible medium, or be in writing, the requirement is satisfied by an electronic
             248      document satisfying this chapter.
             249          (2) If a law requires, as a condition for recording, that a document be signed, the
             250      requirement is satisfied by an electronic signature.
             251          (3) (a) A requirement that a document or a signature associated with a document be
             252      notarized, acknowledged, verified, witnessed, or made under oath is satisfied if the electronic
             253      signature of the person authorized to perform that act, and all other information required to be


             254      included, is attached to or logically associated with the document or signature.
             255          (b) A physical or electronic image of a stamp, impression, or seal need not accompany
             256      an electronic signature.
             257          Section 8. Section 17-21a-203 is enacted to read:
             258          17-21a-203. Recording of documents.
             259          (1) As used in this section, "paper document" means a document that is received by the
             260      county recorder in a form that is not electronic.
             261          (2) A county recorder:
             262          (a) who implements any of the functions listed in this section shall do so in compliance
             263      with standards established by the Utah Electronic Recording Commission created in Section
             264      17-21a-301 ;
             265          (b) may receive, index, store, archive, and transmit electronic documents;
             266          (c) may provide for access to, and for search and retrieval of, documents and
             267      information by electronic means;
             268          (d) who accepts electronic documents for recording shall continue to accept paper
             269      documents as authorized by state law and shall place entries for both types of documents in the
             270      same index;
             271          (e) may convert paper documents accepted for recording into electronic form;
             272          (f) may convert into electronic form information recorded before the county recorder
             273      began to record electronic documents;
             274          (g) may accept electronically any fee that the county recorder is authorized to collect;
             275      and
             276          (h) may agree with other officials of a state or a political subdivision thereof, or of the
             277      United States, on procedures or processes to facilitate the electronic satisfaction of prior
             278      approvals and conditions precedent to recording and the electronic payment of fees.
             279          Section 9. Section 17-21a-301 is enacted to read:
             280     
Part 3. Administration and Standards

             281          17-21a-301. Title.


             282          This part is knows as "Administration and Standards."
             283          Section 10. Section 17-21a-302 is enacted to read:
             284          17-21a-302. Administration and standards.
             285          (1) (a) (i) There is established the Utah Electronic Recording Commission consisting
             286      of six members.
             287          (ii) The commission shall adopt standards to implement this chapter.
             288          (b) (i) The governor shall appoint:
             289          (A) four elected county recorders with no two appointees representing the same class
             290      of county; and
             291          (B) one person practicing in the land title industry nominated by the Utah Land Title
             292      Association.
             293          (ii) The term for each appointee is four years, except that the term for:
             294          (A) the first two appointed county recorders is for two years; and
             295          (B) the first appointed person practicing in the land title industry is for two years.
             296          (c) The five members appointed by the governor shall select one elected county
             297      commissioner to serve as the sixth member of the commission for a four year term.
             298          (d) (i) The members of the commission shall annually elect from its members a
             299      commission chair, vice chair, and secretary.
             300          (ii) The members of the commission shall serve as its own staff to the commission.
             301          (e) A member of the commission may designate another person to represent the
             302      member in voting and attendance of meetings.
             303          (f) An action of the commission requires four affirmative votes.
             304          (2) To keep the standards and practices of county recorders in this state in harmony
             305      with the standards and practices of recording offices in other jurisdictions that enact
             306      substantially this chapter, and to keep the technology used by county recorders in this state
             307      compatible with technology used by recording offices in other jurisdictions that enact
             308      substantially this chapter, the commission, so far as is consistent with the purposes, policies,
             309      and provisions of this chapter, in adopting, amending, and repealing standards, shall consider:


             310          (a) standards and practices of other jurisdictions;
             311          (b) the most recent standards promulgated by national standard-setting bodies, such as
             312      the Property Records Industry Association;
             313          (c) the views of interested persons and governmental officials and entities;
             314          (d) the needs of counties of varying size, population, and resources; and
             315          (e) standards requiring adequate information security protection to ensure that
             316      electronic documents are accurate, authentic, adequately preserved, and resistant to tampering.
             317          Section 11. Section 17-21a-401 is enacted to read:
             318     
Part 4. Relationship to Other Laws

             319          17-21a-401. Title.
             320          This part is known as "Relationship to Other Laws."
             321          Section 12. Section 17-21a-402 is enacted to read:
             322          17-21a-402. Uniformity of application and construction.
             323          In applying and construing this uniform act, consideration must be given to the need to
             324      promote uniformity of the law with respect to its subject matter among states that enact it.
             325          Section 13. Section 17-21a-403 is enacted to read:
             326          17-21a-403. Relation to Electronic Signatures in Global and National Commerce
             327      Act.
             328          This chapter modifies, limits, and supersedes the federal Electronic Signatures in
             329      Global and National Commerce Act (15 U.S.C. Sec. 7001, et seq.) but does not modify, limit,
             330      or supersede Section 101(c) of that act (15 U.S.C. Sec. 7001(c)) or authorize electronic delivery
             331      of any of the notices described in Section 103(b) of that act (15 U.S.C. Sec. 7003(b)).
             332          Section 14. Section 57-3-106 is amended to read:
             333           57-3-106. Original documents required -- Captions -- Legibility.
             334          (1) A person may not present and a county recorder may refuse to accept a document
             335      for recording if the document does not comply with this section.
             336          (2) (a) Unless otherwise provided, a document presented for recording in the office of
             337      the county recorder shall:


             338          (i) (A) be an original; or
             339          (B) be an electronic document that satisfies the requirements under Title 17, Chapter
             340      21a, Uniform Real Property Electronic Recording Act;
             341          (ii) contain a brief caption on the first page of the document stating the nature of the
             342      document; and
             343          (iii) contain a legal description of the property as required under Section 57-3-105 .
             344          (b) If a document is a master form, as defined in Section 57-3-201 , the caption required
             345      by Subsection (2)(a)(ii) shall state that the document is a master form.
             346          (3) A court judgment or an abstract of a court judgment presented for recording in the
             347      office of the county recorder in compliance with Section 78B-5-202 shall:
             348          (a) be an original [or], a certified copy, or an electronic document that satisfies the
             349      requirements under Title 17, Chapter 21a, Uniform Real Property Electronic Recording Act;
             350      and
             351          (b) include the information identifying the judgment debtor as referred to in Subsection
             352      78B-5-201 (4) either:
             353          (i) in the judgment or abstract of judgment; or
             354          (ii) as a separate information statement of the judgment creditor as referred to in
             355      Subsection 78B-5-201 (5).
             356          (4) A judgment, abstract of judgment, or separate information statement of the
             357      judgment creditor does not require an acknowledgment, a legal description, or notarization to
             358      be recorded.
             359          (5) A foreign judgment or an abstract of a foreign judgment recorded in the office of a
             360      county recorder shall include the affidavit as required in Section 78B-5-303 .
             361          (6) Any document recorded in the office of the county recorder to release, assign,
             362      renew, or extend a judgment lien shall include:
             363          (a) the name of any judgment creditor, debtor, assignor, or assignee;
             364          (b) the date on which the instrument creating the lien was recorded in the office of the
             365      county recorder;


             366          (c) the entry number and book and page of the recorded instrument creating the
             367      judgment lien; and
             368          (d) the date on which the document is recorded.
             369          (7) A document presented for recording shall be sufficiently legible for the recorder to
             370      make certified copies of the document.
             371          (8) (a) (i) A document that is of record in the office of the appropriate county recorder
             372      in compliance with this chapter may not be recorded again in that same county recorder's office
             373      unless the original document has been reexecuted by all parties who executed the document.
             374          (ii) Unless exempt by statute, an original document that is reexecuted shall contain the
             375      appropriate acknowledgment, proof of execution, jurat, or other notarial certification for all
             376      parties who are reexecuting the document as required by Title 46, Chapter 1, Notaries Public
             377      Reform Act, and Title 57, Chapter 2, Acknowledgments.
             378          (iii) A document submitted for rerecording shall contain a brief statement explaining
             379      the reason for rerecording.
             380          (b) A person may not present and a county recorder may refuse to accept a document
             381      for rerecording if that document does not conform to this section.
             382          (c) This Subsection (8) applies only to documents executed after July 1, 1998.
             383          (9) Minor typographical or clerical errors in a document of record may be corrected by
             384      the recording of an affidavit or other appropriate instrument.
             385          (10) (a) Except as required by federal law, or by agreement between a borrower under
             386      the trust deed and a grantee under the trustee's deed, and subject to Subsection (10)(b), neither
             387      the recordation of an affidavit under Subsection (9) nor the reexecution and rerecording of a
             388      document under Subsection (8):
             389          (i) divests a grantee of any real property interest;
             390          (ii) alters an interest in real property; or
             391          (iii) returns to the grantor an interest in real property conveyed by statute.
             392          (b) A person who reexecutes and rerecords a document under Subsection (8), or
             393      records an affidavit under Subsection (9), shall include with the document or affidavit a notice


             394      containing the name and address to which real property valuation and tax notices shall be
             395      mailed.
             396          Section 15. Effective date.
             397          (1) Except as provided in Subsection (2), this bill takes effect on July 1, 2015.
             398          (2) Section 17-21a-302 takes effect on May 13, 2014.


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