House File 506 - Introduced HOUSE FILE BY COMMITTEE ON LOCAL GOVERNMENT (SUCCESSOR TO HSB 157) Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to identity theft protection by requiring 2 reporting and by making changes to the duties of county 3 recorders, the fees collected by the county recorders, and the 4 county land record information system. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 1556HV 83 7 md/sc/5 PAG LIN 1 1 Section 1. Section 331.601A, Code 2009, is amended by 1 2 adding the following new subsections: 1 3 NEW SUBSECTION. 0A. "Batch basis" means the delivery of 1 4 an accumulation of electronic documents or records recorded or 1 5 maintained by the county recorder. 1 6 NEW SUBSECTION. 1A. "Electronic document" means a 1 7 document or instrument that is received, processed, 1 8 disseminated, or maintained in an electronic format. The 1 9 submission of an electronic document through the county land 1 10 record information system electronic submission service shall 1 11 be equivalent to delivery of a document through the United 1 12 States postal service or by personal delivery at designated 1 13 offices in each county. Persons who submit electronic 1 14 documents for recording are responsible for ensuring that the 1 15 electronic documents comply with all requirements for 1 16 recording. 1 17 Sec. 2. Section 331.603, Code 2009, is amended by adding 1 18 the following new subsection: 1 19 NEW SUBSECTION. 5. a. The governing board of the county 1 20 land record information system shall not enter into an 1 21 agreement to provide access to electronic documents or records 1 22 on a batch basis. The county recorder may collect reasonable 1 23 fees for access to electronic documents and records pursuant 1 24 to an agreement. The fees shall not exceed the actual cost of 1 25 providing access to the electronic documents and records. 1 26 "Actual costs" means only those expenses directly attributable 1 27 to providing access to electronic documents and records. 1 28 "Actual costs" shall not include costs such as employment 1 29 benefits, depreciation, maintenance, electricity, or insurance 1 30 associated with the administration of the office of the county 1 31 recorder or the county land record information system. 1 32 b. Electronic documents and records made available under 1 33 this subsection shall not include personally identifiable 1 34 information and shall be subjected to a redaction process 1 35 prior to the transfer of the electronic documents or records 2 1 to another person pursuant to an agreement under paragraph 2 2 "a". 2 3 Sec. 3. Section 331.605B, subsection 2, Code 2009, is 2 4 amended to read as follows: 2 5 2. A recorder or the governing board of the county land 2 6 record information system shall collect only statutorily 2 7 authorized fees for land records management. A recorder or 2 8 the governing board of the county land record information 2 9 system shall not collect a fee for viewing, accessing, or 2 10 printing documents in the county land record information 2 11 system unless specifically authorized by statute. However, a 2 12 recorder or the governing board of the county land record 2 13 information system may collect actual third=party fees 2 14 associated with accepting and processing statutorily 2 15 authorized fees, including credit card fees, treasury 2 16 management fees, and other transaction fees required to enable 2 17 electronic payment. For the purposes of this subsection, the 2 18 term "third=party" does not include the county land record 2 19 information system, the Iowa state association of counties, or 2 20 any of the association's affiliates. 2 21 Sec. 4. Section 331.605C, Code 2009, is amended to read as 2 22 follows: 2 23 331.605C ELECTRONIC TRANSACTION FEE == AUDIT. 2 24 1.For the fiscal year beginning July 1, 2003, and ending 2 25 June 30, 2004, the recorder shall collect a fee of five 2 26 dollars for each recorded transaction, regardless of the 2 27 number of pages, for which a fee is paid pursuant to section 2 28 331.604 to be used for the purposes of planning and 2 29 implementing electronic recording and electronic transactions 2 30 in each county and developing county and statewide internet 2 31 websites to provide electronic access to records and 2 32 information.Each county shall participate in the county land 2 33 record information system and shall comply with the policies 2 34 and procedures established by the governing board of the 2 35 county land record information system. 3 1 2. a.BeginningFor the period beginning July 1, 2004, 3 2 and ending June 30, 2009, the recorder shall collect a fee of 3 3 one dollar for each recorded transaction, regardless of the 3 4 number of pages, for which a fee is paid pursuant to section 3 5 331.604 to be used for the purpose set forth in subsection 4. 3 6 b. For the period beginning July 1, 2009, and ending June 3 7 30, 2011, the recorder shall collect a fee of three dollars 3 8 for each recorded transaction, regardless of the number of 3 9 pages, for which a fee is paid pursuant to section 331.604 to 3 10 be used for the following purposes: 3 11 (1) Maintaining the statewide internet website and the 3 12 county land record information system. 3 13 (2) Integrating information contained in documents and 3 14 records maintained by the recorder and other land record 3 15 information from other sources with the county land record 3 16 information system. 3 17 (3) Implementing and maintaining a process for redacting 3 18 personally identifiable information contained in electronic 3 19 documents that are displayed for public access through an 3 20 internet website or that are transferred to another person or 3 21 entity for commercial purposes. 3 22 c. Beginning July 1, 2011, the recorder shall collect a 3 23 fee of two dollars for each recorded transaction, regardless 3 24 of the number of pages, for which a fee is paid pursuant to 3 25 section 331.604 to be used for the purposes in paragraph "b" 3 26 and for the following purposes: 3 27 (1) Establishing and implementing standards for recording, 3 28 processing, and archiving electronic documents and records. 3 29 (2) Expanding access to records by encouraging electronic 3 30 indexing and scanning of documents and instruments recorded in 3 31 prior years. 3 32 d. Fees collected in excess of the amount needed for the 3 33 purposes specified in this section shall be used by the county 3 34 land record information system to reduce or eliminate service 3 35 fees for electronic submission of documents and instruments. 4 1 3. The county treasurer, on behalf of the recorder, shall 4 2 establish and maintain a county recorder's electronic 4 3 transaction fund into which all moneys collected pursuant to 4 4subsections 1 andsubsection 2 shall be deposited. Interest 4 5 earned on moneys deposited in this fund shall be computed 4 6 based on the average monthly balance in the fund and shall be 4 7 credited to the county recorder's electronic transaction fund. 4 8 4. The local government electronic transaction fund is 4 9 established in the office of the treasurer of state under the 4 10 control of the treasurer of state. Moneys deposited into the 4 11 fund are not subject to section 8.33. Notwithstanding section 4 12 12C.7, interest or earnings on moneys in the local government 4 13 electronic transaction fund shall be credited to the fund. 4 14 Moneys in the local government electronic transaction fund are 4 15 not subject to transfer, appropriation, or reversion to any 4 16 other fund, or any other use except as provided in this 4 17 subsection. On a monthly basis, the county treasurer shall 4 18 payeach fee collected pursuant to subsection 2the fees 4 19 deposited in the county recorder's electronic transaction fund 4 20 to the treasurer of state for deposit into the local 4 21 government electronic transaction fund. Moneys credited to 4 22 the local government electronic transaction fund are 4 23 appropriated to the treasurer of state to be used for the 4 24 purpose of paying the ongoing costs of integrating and 4 25 maintaining the statewide internet websitedeveloped and 4 26 implemented under subsection 1to provide electronic access to 4 27 records and information. 4 28 5. The recorder shall make available any information 4 29 required by the county auditor or auditor of state concerning 4 30 the fees collected under this section for the purposes of 4 31 determining the amount of fees collected and the uses for 4 32 which such fees are expended. 4 33 Sec. 5. Section 331.606, Code 2009, is amended by adding 4 34 the following new subsection: 4 35 NEW SUBSECTION. 4. The recorder shall permanently archive 5 1 an unaltered version of each recorded document or instrument. 5 2 A document or instrument may be archived in its original 5 3 format, as an electronic document, or in another format 5 4 suitable for preserving information in the document or 5 5 instrument. A person may view and copy an original or 5 6 unaltered document or instrument in the office of the 5 7 recorder. 5 8 Sec. 6. Section 331.606A, subsection 1, paragraph c, Code 5 9 2009, is amended to read as follows: 5 10 c. "Redact" or "redaction" means the process of 5 11 permanently removing all or a portion of personally 5 12 identifiable information from documents. 5 13 Sec. 7. Section 331.606A, subsection 2, Code 2009, is 5 14 amended to read as follows: 5 15 2. INCLUSION OF PERSONALLY IDENTIFIABLE INFORMATION. The 5 16 preparer of a document shall not include an individual's 5 17 personally identifiable information in a document that is 5 18 prepared and presented for recording in the office of the 5 19 recorder. This subsection shall not apply to documents that 5 20 were executed by an individual prior to July 1, 2007.Unless 5 21 provided otherwise by law, all documents described by this 5 22 section are subject to inspection and copying by the public.5 23 Sec. 8. Section 331.606A, subsection 3, Code 2009, is 5 24 amended by striking the subsection and inserting in lieu 5 25 thereof the following: 5 26 3. REDACTION FROM ELECTRONIC DOCUMENTS. Personally 5 27 identifiable information that is contained in electronic 5 28 documents that are displayed for public access on a website, 5 29 or which are transferred to any person, shall be redacted 5 30 prior to displaying or transferring the documents. Each 5 31 recorder that displays electronic documents and the county 5 32 land record information system that displays electronic 5 33 documents on behalf of a county shall implement a system for 5 34 redacting personally identifiable information. The recorder 5 35 and the governing board of the county land record information 6 1 system shall establish a procedure by which individuals may 6 2 request that personally identifiable information contained in 6 3 an electronic document displayed on a website be redacted, at 6 4 no fee to the requesting individual. The requirements of this 6 5 subsection shall be fully implemented not later than December 6 6 31, 2011. 6 7 Sec. 9. Section 331.606A, subsection 5, Code 2009, is 6 8 amended to read as follows: 6 9 5. APPLICABILITY.This section6 10 a. Subsection 2 shall not apply to a preparer of a state 6 11 or federal tax lien or release, a military separation or 6 12 discharge record, or a death certificate that is prepared for 6 13 recording in the office of county recorder. 6 14 b. Subsection 3 shall not apply to a military separation 6 15 or discharge record, a birth record, a death certificate, or 6 16 marriage certificate unless such record or certificate is 6 17 incorporated within another document or instrument that is 6 18 recorded and displayed for public access on a website. 6 19 c. If a military separation or discharge record or a death 6 20 certificate is recorded in the office of the county recorder, 6 21 the military separation or discharge record or the death 6 22 certificate shall not beaccessible through the internet6 23 displayed for public access on an internet website, public 6 24 access terminal or other medium, or be transferred to any 6 25 person for commercial purposes. 6 26 Sec. 10. Section 331.606A, Code 2009, is amended by adding 6 27 the following new subsection: 6 28 NEW SUBSECTION. 6. LIMITATION OF LIABILITY. The county 6 29 land record information system is a unit of local government 6 30 for purposes of chapter 670, relating to tort liability of 6 31 governmental subdivisions. 6 32 Sec. 11. Section 331.606B, subsection 1, Code 2009, is 6 33 amended by adding the following new paragraph: 6 34 NEW PARAGRAPH. g. Each document or instrument presented 6 35 for recording shall meet the requirements of section 331.606A, 7 1 subsection 2. 7 2 Sec. 12. REPORT TO THE GENERAL ASSEMBLY. On or before 7 3 January 1, 2012, the governing board of the county land record 7 4 information system shall submit a report to the general 7 5 assembly. The report shall include a summary of the actions 7 6 taken by the county recorders and the county land record 7 7 information system relating to the redaction of personally 7 8 identifiable information, a detailed financial accounting of 7 9 the county land record information system, and a detailed 7 10 summary of expenditures made from the local government 7 11 electronic transaction fund. 7 12 Sec. 13. IMPLEMENTATION OF ACT. Section 25B.2, subsection 7 13 3, shall not apply to this Act. 7 14 EXPLANATION 7 15 This bill relates to the duties and authority of county 7 16 recorders and the county land record information system. 7 17 The bill requires each county to participate in the county 7 18 land record information system and to comply with the policies 7 19 and procedures established by the governing board of the 7 20 county land record information system. 7 21 The bill increases the electronic transaction fee from $1 7 22 per recorded transaction to $3 for transactions recorded 7 23 between July 1, 2009, and June 30, 2011. The bill also 7 24 provides that the electronic transaction fee for transactions 7 25 recorded on or after July 1, 2011, is $2. The bill specifies 7 26 the purposes for which electronic transaction fees may be used 7 27 and provides that fees collected in excess of the amount 7 28 needed shall be used by the county land record information 7 29 system to reduce or eliminate service fees for electronic 7 30 submission services. 7 31 The bill prohibits the governing board of the county land 7 32 record information system from entering into an agreement to 7 33 provide access to electronic documents or records on a batch 7 34 basis, as defined in the bill. The bill authorizes a county 7 35 recorder to provide access to electronic documents and records 8 1 pursuant to an agreement and to collect fees for such access. 8 2 Fees collected pursuant to such an agreement must be 8 3 reasonable and shall not exceed the actual cost of providing 8 4 access to the electronic documents and records. 8 5 The bill amends the definition of "redact" or "redaction" 8 6 to mean the process of permanently removing all or a portion 8 7 of personally identifiable information from documents and 8 8 requires that personally identifiable information contained in 8 9 electronic documents that are displayed for public access on a 8 10 website, or which are transferred to any person, be redacted 8 11 prior to displaying or transferring the documents. 8 12 The bill also requires each county recorder that displays 8 13 electronic documents and the county land record information 8 14 system that displays electronic documents on behalf of a 8 15 county to implement a system for redacting personally 8 16 identifiable information and to establish a procedure by which 8 17 individuals may request that personally identifiable 8 18 information contained in an electronic document displayed on a 8 19 website be redacted, at no fee to the requesting individual. 8 20 The bill requires procedures for redaction to be fully 8 21 implemented by December 31, 2011. The bill excludes certain 8 22 recorded documents and certificates from the prohibition on 8 23 inclusion of personally identifiable information and the 8 24 requirements for redaction of such information. 8 25 The bill provides that a county recorder shall refuse any 8 26 document or instrument presented for recording that contains 8 27 personally identifiable information, unless the person pays an 8 28 additional recording fee of $10 per document or instrument. 8 29 The bill requires a county recorder to permanently archive 8 30 an unaltered version of each recorded document or instrument 8 31 and provides that such documents and instruments may be viewed 8 32 or copied in the office of the recorder. 8 33 The bill specifies that the county land record information 8 34 system is a unit of local government for purposes of Code 8 35 chapter 670, relating to tort liability of governmental 9 1 subdivisions. 9 2 The bill requires the governing board of the county land 9 3 record information system to submit a report to the general 9 4 assembly on or before January 1, 2012. The report is required 9 5 to include information relating to redaction efforts, a 9 6 financial accounting of the county land record information 9 7 system, and a summary of expenditures from the local 9 8 government electronic transaction fund. 9 9 The bill may include a state mandate as defined in Code 9 10 section 25B.3. The bill makes inapplicable Code section 9 11 25B.2, subsection 3, which would relieve a political 9 12 subdivision from complying with a state mandate if funding for 9 13 the cost of the state mandate is not provided or specified. 9 14 Therefore, political subdivisions are required to comply with 9 15 any state mandate included in the bill. 9 16 LSB 1556HV 83 9 17 md/sc/5