SF 3391

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

A bill for an act
relating to real property; providing for electronic recording; proposing coding for
new law in Minnesota Statutes, chapter 507.

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

Section 1.

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 real estate recording commission" and "commission" mean the
commission established by sections 507.0941 to 507.0948.
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.
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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. 2.

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

new text begin Persons applying or construing this act must consider 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. 3.

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. If a law requires or refers to something related to
tangible media including, without limitation, book, certificate, floor plan, page, volume,
or words derived from them, the requirement or reference 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 this chapter 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

new text begin (f) A law that authorizes or requires any act to be performed with respect to any
document affecting real property that is to be filed in the office of the recorder or registrar
shall be deemed satisfied if the act is performed electronically in accordance with the
standards established by the electronic real estate recording commission. By way of
illustration, the acts referred to in this section include, without limitation, the following
words as well as words derived from them: affix, apply, attest, bind, certify, conform,
contain, copy, deliver, draw, duplicate, endorse, enter, file, form, hold, issue, leave, make,
mark, mount, note, open, present, print, proffer, receive, recite, record, refer, register, seal,
send, sign, stamp, state, store, subscribe, witness, and write.
new text end

Sec. 4.

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;
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new text begin (3) provide for search and retrieval of documents and other information by electronic
means;
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new text begin (4) index, store, and archive, in electronic form, paper documents accepted for
recording;
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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;
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new text begin (6) accept electronically any fee or tax that the recorder or registrar is authorized
to collect; and
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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:
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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:
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new text begin (1) continue to accept paper documents; and
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new text begin (2) place entries for paper documents and electronic documents in the same index.
new text end

Sec. 5.

new text begin [507.0945] ADMINISTRATION.
new text end

new text begin (a) An Electronic Real Estate 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 Real Estate Recording Commission.
new text end

new text begin (b) The Electronic Real Estate Recording Commission shall consist of the following:
new text end

new text begin (1) three members appointed by the Minnesota Association of County Officials who
are county employees, including one from within the seven-county metropolitan area, one
from outside the seven-county metropolitan area, and at least one of whom is a county
recorder and at least one of whom is a registrar of titles;
new text end

new text begin (2) one member appointed by the Minnesota Land Title Association;
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new text begin (3) one member who represents the Minnesota Bankers Association;
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new text begin (4) one member who represents the Section of Real Property Law of the Minnesota
State Bar Association;
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new text begin (5) one nonvoting member who is appointed by the other members of the commission
and an expert in the technological aspects of electronic real estate recording; and
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new text begin (6) one member who is the state archivist appointed pursuant to section 138.17.
new text end

new text begin (c) Members of the Electronic Real Estate Recording Commission shall serve
four-year terms, except that (1) the initial appointments of county employees shall be for
two years and (2) the expert in the technological aspects of electronic real estate recording
shall serve at the pleasure of a majority of the other members of the commission. All
initial terms shall commence on July 1, 2008. Members shall serve until their successors
are appointed. Any member may be reappointed for successive terms.
new text end

new text begin (d) The state archivist shall call the first meeting of the Electronic Real Estate
Recording Commission. At the first meeting and biennially thereafter, the commission
shall elect from its membership a chair and vice-chair to serve two-year terms. Meetings
may be called by the chair or 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 Real Estate Recording
Commission constitutes a quorum to do business, and a majority of a quorum may act
in any matter within the jurisdiction of the commission.
new text end

new text begin (f) As soon as practicable and as needed thereafter, the Electronic Real Estate
Recording Commission shall identify the information-technology expertise it requires
and report its needs to the Legislative Coordinating Commission. The Electronic Real
Estate 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 Real Estate Recording Commission to carry out its duties in an effective manner.
new text end

Sec. 6.

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 in
harmony 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 Real Estate Recording Commission, so
far as is consistent with the purposes, policies, and provisions of this act, in adopting,
amending, and repealing standards, shall consider:
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new text begin (1) standards and practices of other jurisdictions;
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new text begin (2) the most recent standards promulgated by national standard-setting bodies;
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new text begin (3) the views of interested persons and governmental officials and entities;
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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. 7.

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. 8.

new text begin [507.0948] TITLE.
new text end

new text begin This act may be cited as the Minnesota Real Property Electronic Recording Act.
new text end

Sec. 9. new text begin EFFECTIVE DATE.
new text end

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