SF 1544

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to real property; establishing an electronic
real estate recording task force; appropriating money;
amending Minnesota Statutes 2004, sections 507.093;
507.24, subdivision 2.

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

Section 1. new text begin TASK FORCE; MEMBERSHIP.
new text end

new text begin (a) The secretary of state shall serve as the chair of a
task force of 15 members to study and make recommendations for
the establishment of a system for the electronic filing and
recording of real estate documents. Members who are appointed
under this section shall serve for a term of three years
commencing on June 30, 2005. The state's chief information
officer, as designated under Minnesota Statutes, section 16E.02,
shall serve as the vice-chair of the task force. The task force
must include:
new text end

new text begin (1) three county government officials appointed by the
Association of County Officers, including one county recorder,
one county auditor, and one county treasurer;
new text end

new text begin (2) two county board members appointed by the Association
of Minnesota Counties, including one board member from within
the seven-county metropolitan area, and one board member from
outside the seven-county metropolitan area;
new text end

new text begin (3) seven members from the private sector appointed by the
chair, including representatives of:
new text end

new text begin (i) real estate attorneys, real estate agents, and public
and private land surveyors;
new text end

new text begin (ii) title companies, mortgage companies, and other real
estate lenders; and
new text end

new text begin (iii) technical and industry experts in electronic commerce
and electronic records management and preservation; and
new text end

new text begin (4) a representative selected by the Minnesota Historical
Society.
new text end

new text begin (b) The task force may refer items to subcommittees. The
chair shall appoint the membership of a subcommittee. An
individual may be appointed to serve on a subcommittee without
serving on the task force.
new text end

Sec. 2. new text begin STUDY AND RECOMMENDATIONS.
new text end

new text begin The task force shall study and make recommendations
regarding implementation of a system for electronic filing and
recording of real estate documents and shall consider:
new text end

new text begin (1) technology and computer needs;
new text end

new text begin (2) legal issues such as authenticity, security, timing and
priority of recordings, and the relationship between electronic
and paper recording systems;
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new text begin (3) cost-effectiveness of electronic recording systems;
new text end

new text begin (4) timetable and plan for implementing an electronic
recording system, considering types of documents and entities
using the system and volume of recordings;
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new text begin (5) permissive versus mandatory systems; and
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new text begin (6) other relevant issues identified by the task force.
new text end

new text begin The task force shall submit a report to the legislature by
January 15, 2007, outlining a proposed work plan and budget for
consideration by the legislature. The task force expires June
30, 2008.
new text end

Sec. 3. new text begin REAL ESTATE FILING SURCHARGE FUNDS.
new text end

new text begin All funds collected from the surcharge collected under
Minnesota Statutes, sections 357.18, subdivision 3; 508.82,
subdivision 1; and 508A.82, subdivision 1, as these sections
read on June 30, 2005, and existing in the electronic real
estate recording task force account as of December 1, 2005, are
appropriated to the Legislative Coordinating Commission for the
use of the task force established by this act for the purposes
in section 2.
new text end

Sec. 4. new text begin DONATIONS.
new text end

new text begin The real estate task force established under this act may
accept donations of money or resources, including loaned
employees or other services. The donations must be under the
sole control of the task force.
new text end

Sec. 5. new text begin LEGISLATIVE COORDINATING COMMISSION; DUTIES;
APPROPRIATION.
new text end

new text begin (a) The real estate task force established under section 1
may contract with the Legislative Coordinating Commission for
the provision of administrative services to the task force, the
preparation of requests for proposal, or the disbursement of
funds for the payment of vendors, salaries, and other expenses
of the task force.
new text end

new text begin (b) $75,000 is appropriated from the surcharge collected
under Minnesota Statutes, section 357.18, subdivision 3, to the
Legislative Coordinating Commission for the purpose of paragraph
(a).
new text end

Sec. 6.

Minnesota Statutes 2004, section 507.093, is
amended to read:

507.093 STANDARDS FOR DOCUMENTS TO BE RECORDED OR FILED.

(a) The following standards are imposed on documents to be
recorded with the county recorder or filed with the registrar of
titles:

(1) The document shall consist of one or more individual
sheets measuring no larger than 8.5 inches by 14 inches.

(2) The form of the document shall be printed, typewritten,
or computer generated in black ink and the form of the document
shall not be smaller than 8-point type.

(3) The document shall be on white paper of not less than
20-pound weight with no background color, images, or writing and
shall have a clear border of approximately one-half inch on the
top, bottom, and each side.

(4) The first page of the document shall contain a blank
space at the top measuring three inches, as measured from the
top of the page. The right half to be used by the county
recorder for recording information or registrar of titles for
filing information and the left half to be used by the county
auditor or treasurer for certification.

(5) The title of the document shall be prominently
displayed at the top of the first page below the blank space
referred to in clause (4).

(6) No additional sheet shall be attached or affixed to a
page that covers up any information or printed part of the form.

(7) A document presented for recording or filing must be
sufficiently legible to reproduce a readable copy using the
county recorder's or registrar of title's current method of
reproduction.

The standards in this paragraph do not apply to a document
that is recorded or filed 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.

(b) The recording or filing fee for a document that does
not conform to the standards in paragraph (a) shall be increased
as provided in sections 357.18, subdivision 5; 508.82; and
508A.82.

(c) The recorder or registrar shall refund the recording or
filing fee to the applicant if the real estate documents are not
filed or registered within 30 days after receipt, or as
otherwise provided by section 386.30.

Sec. 7.

Minnesota Statutes 2004, section 507.24,
subdivision 2, is amended to read:

Subd. 2.

Original signatures required.

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. 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. Notices filed pursuant to section 168A.141,
subdivisions 1 and 3, need not contain an acknowledgment.

Sec. 8. new text begin EFFECTIVE DATE.
new text end

new text begin This act is effective the day after final enactment and
remains effective until June 30, 2008.
new text end