HF 2394

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to uniform acts; providing for the Uniform Real Property Electronic
Recording Act; amending Minnesota Statutes 2006, sections 14.03, subdivision
3; 507.24, subdivision 2; proposing coding for new law in Minnesota Statutes,
chapter 507.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2006, section 14.03, subdivision 3, is amended to read:

Subd. 3.

Rulemaking procedures.

(a) The definition of a rule in section 14.02,
subdivision 4, does not include:

(1) rules concerning only the internal management of the agency or other agencies
that do not directly affect the rights of or procedures available to the public;

(2) an application deadline on a form; and the remainder of a form and instructions
for use of the form to the extent that they do not impose substantive requirements other
than requirements contained in statute or rule;

(3) the curriculum adopted by an agency to implement a statute or rule permitting
or mandating minimum educational requirements for persons regulated by an agency,
provided the topic areas to be covered by the minimum educational requirements are
specified in statute or rule;

(4) procedures for sharing data among government agencies, provided these
procedures are consistent with chapter 13 and other law governing data practices.

(b) The definition of a rule in section 14.02, subdivision 4, does not include:

(1) rules of the commissioner of corrections relating to the release, placement, term,
and supervision of inmates serving a supervised release or conditional release term, the
internal management of institutions under the commissioner's control, and rules adopted
under section 609.105 governing the inmates of those institutions;

(2) rules relating to weight limitations on the use of highways when the substance
of the rules is indicated to the public by means of signs;

(3) opinions of the attorney general;

(4) the data element dictionary and the annual data acquisition calendar of the
Department of Education to the extent provided by section 125B.07;

(5) the occupational safety and health standards provided in section 182.655;

(6) revenue notices and tax information bulletins of the commissioner of revenue;

(7) uniform conveyancing forms adopted by the commissioner of commerce under
section 507.09; deleted text begin or
deleted text end

(8) new text begin standards adopted by the Electronic Recording Commission established under
section 507.0945; or
new text end

new text begin (9) new text end the interpretive guidelines developed by the commissioner of human services
to the extent provided in chapter 245A.

Sec. 2.

new text begin [507.0941] DEFINITIONS.
new text end

new text begin For purposes of sections 507.0941 to 507.0948:
new text end

new text begin (1) "Document" means information that is:
new text end

new text begin (i) inscribed on a tangible medium or that is stored in an electronic or other medium
and is retrievable in perceivable form; and
new text end

new text begin (ii) eligible to be recorded in the land records maintained by the recorder or registrar.
new text end

new text begin (2) "Electronic" means relating to technology having electrical, digital, magnetic,
wireless, optical, electromagnetic, or similar capabilities.
new text end

new text begin (3) "Electronic document" means a document that is received by the recorder or
registrar in an electronic form.
new text end

new text begin (4) "Electronic Recording Commission" means the commission established by
this act.
new text end

new text begin (5) "Electronic signature" means an electronic sound, symbol, or process attached
to or logically associated with a document and executed or adopted by a person with
the intent to sign the document.
new text end

new text begin (6) "Legislative Coordinating Commission" means the commission established by
section 3.303.
new text end

new text begin (7) "Paper document" means a document that a recorder or registrar receives in a
form that is not an electronic document.
new text end

new text begin (8) "Person" means an individual, corporation, business trust, estate, trust,
partnership, limited liability company, association, joint venture, public corporation,
government, or governmental subdivision, agency, or instrumentality, or any other legal or
commercial entity.
new text end

new text begin (9) "Recorder" means the county recorder for the county in which a document is
received.
new text end

new text begin (10) "Registrar" means the registrar of titles for the county in which a document is
received.
new text end

Sec. 3.

new text begin [507.0942] UNIFORMITY OF APPLICATION AND CONSTRUCTION.
new text end

new text begin In applying and construing this act, consideration must be given to the need to
promote uniformity of the law with respect to the subject matter of this act among states
that enact a law substantially similar to this act.
new text end

Sec. 4.

new text begin [507.0943] VALIDITY AND TIME OF RECORDING OF ELECTRONIC
DOCUMENTS.
new text end

new text begin (a) If a law requires, as a condition for recording, that a document be an original,
be on paper or another tangible medium, or be in writing, the requirement is satisfied by
an electronic document satisfying this act.
new text end

new text begin (b) If a law requires, as a condition for recording, that a document be signed, the
requirement is satisfied by an electronic signature.
new text end

new text begin (c) A requirement that a document or a signature associated with a document
be attested, acknowledged, verified, witnessed, or made under oath is satisfied if the
electronic signature of the person authorized to perform that act, and all other information
required to be included, is attached to or logically associated with the document or
signature. A physical or electronic image of a stamp, impression, or seal need not
accompany an electronic signature.
new text end

new text begin (d) Notwithstanding the time of its delivery, an electronic document is recorded for
purposes of chapter 507 at the earlier of (i) the time the electronic document is accepted for
recording or (ii) the next close of the recorder's office hours following the time of delivery.
new text end

new text begin (e) Notwithstanding the time of its delivery, an electronic document is registered as
to a parcel of registered land for purposes of chapters 508 and 508A when the electronic
document is memorialized or otherwise noted on the certificate of title for the parcel.
new text end

Sec. 5.

new text begin [507.0944] RECORDING OF DOCUMENTS.
new text end

new text begin (a) A recorder or registrar may:
new text end

new text begin (1) receive, index, store, archive, and transmit electronic documents;
new text end

new text begin (2) provide for access to documents and other information by electronic means;
new text end

new text begin (3) provide for search and retrieval of documents and other information by electronic
means;
new text end

new text begin (4) index, store, and archive in electronic form paper documents accepted for
recording;
new text end

new text begin (5) convert into electronic form the record of documents recorded or registered
before the recorder or registrar began to record electronic documents;
new text end

new text begin (6) accept electronically any fee or tax that the recorder or registrar is authorized
to collect; and
new text end

new text begin (7) agree with other officials of this state or a political subdivision of this state on
procedures or processes to facilitate the electronic satisfaction of conditions to recording
and the electronic payment of fees and taxes.
new text end

new text begin (b) A recorder who accepts electronic documents for recording shall:
new text end

new text begin (1) continue to accept paper documents; and
new text end

new text begin (2) place entries for paper documents and electronic documents in the same index.
new text end

new text begin (c) A registrar who accepts electronic documents for registration shall:
new text end

new text begin (1) continue to accept paper documents; and
new text end

new text begin (2) place entries for paper documents and electronic documents in the same index.
new text end

Sec. 6.

new text begin [507.0945] ADMINISTRATION.
new text end

new text begin (a) An Electronic Recording Commission administered by the Legislative
Coordinating Commission is created to adopt standards to implement this act. The
Legislative Coordinating Commission shall promulgate by rule the standards adopted,
amended, or repealed by the Electronic Recording Commission.
new text end

new text begin (b) The Electronic Recording Commission shall be appointed by the governor and
consist of the following:
new text end

new text begin (1) three members who are recorders or registrars, including one from within the
seven-county metropolitan area, one from outside the seven-county metropolitan area, and
at least one of whom must be a recorder and one of whom must be a registrar;
new text end

new text begin (2) one member who represents an association of title insurance companies;
new text end

new text begin (3) one member who represents an association of bankers;
new text end

new text begin (4) one member who represents real property lawyers;
new text end

new text begin (5) one member who is an expert in the technological aspects of electronic real
estate recording; and
new text end

new text begin (6) one member who is the state archivist appointed pursuant to section 138.17,
who shall be a nonvoting member.
new text end

new text begin (c) Members of the Electronic Recording Commission shall serve four-year terms,
except that the initial appointments of recorders and registrars shall be for two years. All
initial terms shall commence on July 1, 2008. Members shall serve until their successors
are appointed. The governor may reappoint a member for successive terms.
new text end

new text begin (d) The chair of the Legislative Coordinating Commission shall call the first meeting
of the Electronic Recording Commission. At the first meeting and biennially thereafter,
the Electronic Recording Commission shall elect from its membership a chair and
vice-chair to serve two-year terms. Meetings may be called by the chair, the vice-chair, or
the head of the Legislative Coordinating Commission. Meetings shall be held as often as
necessary, but at least once a year.
new text end

new text begin (e) A majority of the voting members of the Electronic Recording Commission
constitutes a quorum to do business, and a majority of a quorum may act in any matter
within the jurisdiction of the Electronic Recording Commission.
new text end

new text begin (f) As soon as practicable and as needed thereafter, the Electronic Recording
Commission shall identify the information-technology expertise it requires and report
its needs to the Legislative Coordinating Commission. The Electronic Recording
Commission also shall report any other expertise it needs to fulfill its responsibilities.
The Legislative Coordinating Commission shall provide professional and clerical staff
and other services and supplies, including meeting space, as needed for the Electronic
Recording Commission to carry out its duties in an effective manner.
new text end

Sec. 7.

new text begin [507.0946] STANDARDS.
new text end

new text begin To keep the standards and practices of recorders and registrars in this state consistent
with the standards and practices of recorders' and registrars' offices in other jurisdictions
that enact a law that is substantially similar to this act, and to keep the technology used
by recorders and registrars in this state compatible with technology used by recorders'
and registrars' offices in other jurisdictions that enact a law that is substantially similar to
this act, the Electronic Recording Commission, so far as is consistent with the purposes,
policies, and provisions of this act, in adopting, amending, and repealing standards shall
consider:
new text end

new text begin (1) standards and practices of other jurisdictions;
new text end

new text begin (2) the most recent standards promulgated by national standard-setting bodies;
new text end

new text begin (3) the views of interested persons and governmental officials and entities;
new text end

new text begin (4) the needs of counties of varying size, population, and resources; and
new text end

new text begin (5) standards requiring adequate information security protection to ensure that
electronic documents are accurate, authentic, adequately preserved, and resistant to
tampering.
new text end

Sec. 8.

new text begin [507.0947] RELATION TO ELECTRONIC SIGNATURES IN GLOBAL
AND NATIONAL COMMERCE ACT.
new text end

new text begin This act modifies, limits, and supersedes the federal Electronic Signatures in Global
and National Commerce Act, United States Code, title 15, section 7001, et seq., but does
not modify, limit, or supersede section 101(c) of that act, United States Code, title 15,
section 7001(c), or authorize electronic delivery of any of the notices described in section
103(b) of that act, United States Code, title 15, section 7003(b).
new text end

Sec. 9.

new text begin [507.0948] TITLE.
new text end

new text begin Sections 507.0941 to 507.0948 may be cited as the "Minnesota Uniform Real
Property Electronic Recording Act."
new text end

Sec. 10.

Minnesota Statutes 2006, section 507.24, subdivision 2, is amended to read:

Subd. 2.

Original signatures required.

(a) Unless otherwise provided by law, an
instrument affecting real estate that is to be recorded as provided in this section or other
applicable law must contain the original signatures of the parties who execute it and of the
notary public or other officer taking an acknowledgment. However, a financing statement
that is recorded as a filing pursuant to section 336.9-502(b) need not contain: (1) the
signatures of the debtor or the secured party; or (2) an acknowledgment.

(b) Any electronic instruments, including signatures and seals, affecting real estate
may only be recorded as part of a pilot project for the electronic filing of real estate
documents implemented by the task force created in Laws 2000, chapter 391, or by
the Electronic Real Estate Recording Task Force created under section 507.094. new text begin The
Electronic Real Estate Recording Task Force created under section 507.094 may amend
standards set by the task force created in Laws 2000, chapter 391, and may set new or
additional standards and establish pilot projects to the full extent permitted in section
507.094, subdivision 2, paragraph (b). Documents recorded in conformity with those
standards and in those pilot projects are deemed to meet the requirements of this section.
new text end

new text begin (c) new text end A county that participated in the pilot project for the electronic filing of real
estate documents under the task force created in Laws 2000, chapter 391, may continue to
record or file documents electronically, if:

(1) the county complies with standards adopted by the task force; and

(2) the county uses software that was validated by the task force.

new text begin (d) new text end A county that did not participate in the pilot project may record or file a real
estate document electronically, if:

deleted text begin (i) deleted text end new text begin (1) new text end the document to be recorded or filed is of a type included in the pilot project
for the electronic filing of real estate documents under the task force created in Laws
2000, chapter 391;

deleted text begin (ii) deleted text end new text begin (2) new text end the county complies with the standards adopted by the task force;

deleted text begin (iii) deleted text end new text begin (3) new text end the county uses software that was validated by the task force; and

deleted text begin (iv) deleted text end new text begin (4) new text end the task force created under section 507.094, votes to accept a written
certification of compliance with paragraph (b), clause (2), of this section by the county
board and county recorder of the county to implement electronic filing under this section.

deleted text begin (c) deleted text end new text begin (e) new text end Notices filed pursuant to section 168A.141, subdivisions 1 and 3, need not
contain an acknowledgment.

Sec. 11. new text begin EFFECTIVE DATE.
new text end

new text begin This act is effective July 1, 2008.
new text end