Senate Bill sb2106c1

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    Florida Senate - 2006                           CS for SB 2106

    By the Committee on Judiciary; and Senator Bennett





    590-2331-06

  1                      A bill to be entitled

  2         An act relating to real property electronic

  3         recording; creating s. 695.27, F.S.; providing

  4         a short title; providing definitions; providing

  5         for the validity of electronic documents

  6         relating to real property; providing for the

  7         recording of electronic documents by the county

  8         recorder; granting the Department of State

  9         rulemaking authority; creating the Electronic

10         Recording Council; requiring the department to

11         make specific written findings if any of the

12         council's recommendations are rejected;

13         providing for membership and meetings of the

14         council; providing that council members shall

15         serve without compensation and may not claim

16         per diem and travel expenses from the Secretary

17         of State; providing guidelines for the

18         department, in consultation with the council,

19         to consider in adopting, amending, and

20         repealing standards; providing for uniformity

21         of application and construction; specifying the

22         relation to a federal act; providing an

23         effective date.

24  

25  Be It Enacted by the Legislature of the State of Florida:

26  

27         Section 1.  Section 695.27, Florida Statutes, is

28  created to read:

29         695.27  Uniform Real Property Electronic Recording

30  Act.--

31  

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    Florida Senate - 2006                           CS for SB 2106
    590-2331-06




 1         (1)  SHORT TITLE.--This section may be cited as the

 2  "Uniform Real Property Electronic Recording Act."

 3         (2)  DEFINITIONS.--As used in this section:

 4         (a)  "Document" means information that is:

 5         1.  Inscribed on a tangible medium or that is stored in

 6  an electronic or other medium and is retrievable in

 7  perceivable form; and

 8         2.  Eligible to be recorded in the land records

 9  maintained by a county recorder pursuant to s. 28.222.

10         (b)  "Electronic" means relating to technology having

11  electrical, digital, magnetic, wireless, optical,

12  electromagnetic, or similar capabilities.

13         (c)  "Electronic document" means a document that is

14  received by a county recorder in an electronic form.

15         (d)  "Electronic signature" means an electronic sound,

16  symbol, or process attached to or logically associated with a

17  document and executed or adopted by a person with the intent

18  to sign the document.

19         (e)  "Logically associated" means information recorded

20  simultaneously with the document to which it pertains and

21  assigned the same document number or a consecutive page number

22  immediately following such document.

23         (f)  "Person" means an individual, corporation,

24  business trust, estate, trust, partnership, limited liability

25  company, association, joint venture, public corporation, or

26  government; governmental subdivision, agency, or

27  instrumentality; or any other legal or commercial entity.

28         (g)  "State" means a state of the United States, the

29  District of Columbia, Puerto Rico, the United States Virgin

30  Islands, or any territory or insular possession subject to the

31  jurisdiction of the United States.

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    Florida Senate - 2006                           CS for SB 2106
    590-2331-06




 1         (3)  VALIDITY OF ELECTRONIC DOCUMENTS.--

 2         (a)  If a law requires, as a condition for recording,

 3  that a document be an original, be on paper or another

 4  tangible medium, or be in writing, the requirement is

 5  satisfied by an electronic document satisfying the

 6  requirements of this section.

 7         (b)  If a law requires, as a condition for recording,

 8  that a document be signed, the requirement is satisfied by an

 9  electronic signature.

10         (c)  A requirement that a document or a signature

11  associated with a document be notarized, acknowledged,

12  verified, witnessed, or made under oath is satisfied if the

13  electronic signature of the person authorized to perform that

14  act, and all other information required to be included, is

15  attached to or logically associated with the document or

16  signature. A physical or electronic image of a stamp,

17  impression, or seal need not accompany an electronic

18  signature.

19         (4)  RECORDING OF DOCUMENTS.--

20         (a)  In this subsection, the term "paper document"

21  means a document that is received by the county recorder in a

22  form that is not electronic.

23         (b)  A county recorder:

24         1.  Who implements any of the functions listed in this

25  section shall do so in compliance with standards established

26  by rule by the Department of State.

27         2.  May receive, index, store, archive, and transmit

28  electronic documents.

29         3.  May provide for access to, and for search and

30  retrieval of, documents and information by electronic means.

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    Florida Senate - 2006                           CS for SB 2106
    590-2331-06




 1         4.  Who accepts electronic documents for recording

 2  shall continue to accept paper documents as authorized by

 3  state law and shall place entries for both types of documents

 4  in the same index.

 5         5.  May convert paper documents accepted for recording

 6  into electronic form.

 7         6.  May convert into electronic form information

 8  recorded before the county recorder began to record electronic

 9  documents.

10         7.  May agree with other officials of a state or a

11  political subdivision thereof, or of the United States, on

12  procedures or processes to facilitate the electronic

13  satisfaction of prior approvals and conditions precedent to

14  recording.

15         (5)  ADMINISTRATION AND STANDARDS.--

16         (a)  The Department of State, by rule pursuant to ss.

17  120.536(1) and 120.54, shall prescribe standards to implement

18  this section in consultation with the Electronic Recording

19  Council, which is hereby created. The Secretary of State shall

20  provide administrative support to the council, appoint the

21  members of the council, and appoint the chair of the council.

22  The Department of State shall make specific written findings

23  if any of the council's recommendations are rejected. The

24  council shall consist of nine members, as follows:

25         1.  Five clerks of circuit court or county recorders.

26         2.  Two persons working in the title insurance industry

27  who are members of the Florida Land Title Association.

28         3.  One banker who is a member of the Florida Bankers

29  Association.

30         4.  One attorney who is a member of the Real Property,

31  Probate and Trust Law Section of The Florida Bar.

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    Florida Senate - 2006                           CS for SB 2106
    590-2331-06




 1         (b)  The first meeting of the council shall be held on

 2  or before July 30, 2006. Thereafter, the council shall meet at

 3  the call of the chair.

 4         (c)  The members of the council shall serve without

 5  compensation and shall not claim per diem and travel expenses

 6  from the Secretary of State.

 7         (d)  To keep the standards and practices of county

 8  recorders in this state in harmony with the standards and

 9  practices of recording offices in other jurisdictions that

10  enact substantially this section and to keep the technology

11  used by county recorders in this state compatible with

12  technology used by recording offices in other jurisdictions

13  that enact substantially this section, the Department of

14  State, in consultation with the council, so far as is

15  consistent with the purposes, policies, and provisions of this

16  section, in adopting, amending, and repealing standards, shall

17  consider:

18         1.  Standards and practices of other jurisdictions.

19         2.  The most recent standards adopted by national

20  standard-setting bodies, such as the Property Records Industry

21  Association.

22         3.  The views of interested persons and governmental

23  officials and entities.

24         4.  The needs of counties of varying size, population,

25  and resources.

26         5.  Standards requiring adequate information security

27  protection to ensure that electronic documents are accurate,

28  authentic, adequately preserved, and resistant to tampering.

29         (6)  UNIFORMITY OF APPLICATION AND CONSTRUCTION.--In

30  applying and construing this section, consideration must be

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    Florida Senate - 2006                           CS for SB 2106
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 1  given to the need to promote uniformity of the law with

 2  respect to its subject matter among states that enact it.

 3         (7)  RELATION TO ELECTRONIC SIGNATURES IN GLOBAL AND

 4  NATIONAL COMMERCE ACT.--This section modifies, limits, and

 5  supersedes the federal Electronic Signatures in Global and

 6  National Commerce Act, 15 U.S.C. ss. 7001 et seq., but this

 7  section does not modify, limit, or supersede s. 101(c) of that

 8  act, 15 U.S.C. s. 7001(c), or authorize electronic delivery of

 9  any of the notices described in s. 103(b) of that act, 15

10  U.S.C. s. 7003(b).

11         Section 2.  This act shall take effect upon becoming a

12  law.

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    Florida Senate - 2006                           CS for SB 2106
    590-2331-06




 1          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
 2                         Senate Bill 2106

 3                                 

 4  The committee substitute makes the following changes to the
    underlying bill:
 5  
    --   Adds short title of "Uniform Real Property Electronic
 6       Recording Act";

 7  --   Clarifies the recorder of electronic documents is a
         county recorder pursuant to s. 28.222;
 8  
    --   Adds definition for "logically associated" and "person"
 9       to definition list;

10  --   Removes the phrase "relating to land records" after the
         term "document";
11  
    --   Removes provision allowing recorders to accept
12       electronically any fee or tax that the recorders are
         authorized to collect
13  
    --   Changes the administering body from the Electronic
14       Recording Commission to the Electronic Recording Council;

15  --   Provides that the Secretary of State provides
         administrative support for the council and appoints the
16       members and chair of the council;

17  --   Clarifies the membership of the council to consist of
         five clerks of circuit court or county recorders, two
18       persons working in the title insurance industry who are
         members of the Florida Land Title Association, one banker
19       who is a member of the Florida Bankers Association, and
         one attorney who is a member of the Real Property,
20       Probate and Trust Law Section of the Florida Bar;

21  --   Prohibits the Council from claiming per diem and travel
         expenses from the Secretary of State;
22  
    --   Adds to the list of things to consider in making
23       standards for electronic recording whether adequate
         information security protection is in place to ensure the
24       safety and authenticity of electronic documents;

25  --   Changes the effective date to upon becoming a law.

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