Senate Study Bill 1212 SENATE FILE BY (PROPOSED COMMITTEE ON LOCAL GOVERNMENT BILL BY CHAIRPERSON QUIRMBACH) Passed Senate, Date Passed House, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to identity theft protection by making changes to 2 the duties of county recorders, the fees collected by the 3 county recorders, and the county land record information 4 system. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 1556SC 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 recorder or the governing 1 20 board of the county land record information system may enter 1 21 into an agreement to provide access to electronic documents or 1 22 records on a batch basis. The county recorder or the 1 23 governing board of the county land record information system 1 24 may collect reasonable fees for access to electronic documents 1 25 and records pursuant to such an agreement. 1 26 b. Electronic documents and records made available under 1 27 this subsection shall not include personally identifiable 1 28 information and shall be subjected to a redaction process 1 29 prior to the transfer of the electronic documents or records 1 30 to another person pursuant to an agreement under paragraph 1 31 "a". 1 32 c. Persons with access to electronic documents and records 1 33 shall certify in writing that they will not provide such 1 34 documents or records to any third party without the permission 1 35 of the county recorder or the governing board of the county 2 1 land record information system, as applicable. 2 2 Sec. 3. Section 331.605B, subsection 2, Code 2009, is 2 3 amended to read as follows: 2 4 2. A recorder or the governing board of the county land 2 5 record information system shall collect only statutorily 2 6 authorized fees for land records management. A recorder or 2 7 the governing board of the county land record information 2 8 system shall not collect a fee for viewing, accessing, or 2 9 printing documents in the county land record information 2 10 system unless specifically authorized by statute. However, a 2 11 recorder or the governing board of the county land record 2 12 information system may collect actual third=party fees 2 13 associated with accepting and processing statutorily 2 14 authorized fees, including credit card fees, treasury 2 15 management fees, and other transaction fees required to enable 2 16 electronic payment. For the purposes of this subsection, the 2 17 term "third=party" does not include the county land record 2 18 information system, the Iowa state association of counties, or 2 19 any of the association's affiliates. 2 20 Sec. 4. Section 331.605C, Code 2009, is amended to read as 2 21 follows: 2 22 331.605C ELECTRONIC TRANSACTION FEE == AUDIT. 2 23 1.For the fiscal year beginning July 1, 2003, and ending 2 24 June 30, 2004, the recorder shall collect a fee of five 2 25 dollars for each recorded transaction, regardless of the 2 26 number of pages, for which a fee is paid pursuant to section 2 27 331.604 to be used for the purposes of planning and 2 28 implementing electronic recording and electronic transactions 2 29 in each county and developing county and statewide internet 2 30 websites to provide electronic access to records and 2 31 information.Each county shall participate in the county land 2 32 record information system and shall comply with the policies 2 33 and procedures established by the governing board of the 2 34 county land record information system. 2 35 2. a.BeginningFor the period beginning July 1, 2004, 3 1 and ending June 30, 2009, the recorder shall collect a fee of 3 2 one dollar for each recorded transaction, regardless of the 3 3 number of pages, for which a fee is paid pursuant to section 3 4 331.604 to be used for the purpose set forth in subsection 4. 3 5 b. For the period beginning July 1, 2009, and ending June 3 6 30, 2011, the recorder shall collect a fee of three dollars 3 7 for each recorded transaction, regardless of the number of 3 8 pages, for which a fee is paid pursuant to section 331.604 to 3 9 be used for the following purposes: 3 10 (1) Maintaining the statewide internet website and the 3 11 county land record information system. 3 12 (2) Integrating information contained in documents and 3 13 records maintained by the recorder and other land record 3 14 information from other sources with the county land record 3 15 information system. 3 16 (3) Implementing and maintaining a process for redacting 3 17 personally identifiable information contained in electronic 3 18 documents that are displayed for public access through an 3 19 internet website or that are transferred to another person or 3 20 entity for commercial purposes. 3 21 c. Beginning July 1, 2011, the recorder shall collect a 3 22 fee of two dollars for each recorded transaction, regardless 3 23 of the number of pages, for which a fee is paid pursuant to 3 24 section 331.604 to be used for the purposes in paragraph "b" 3 25 and for the following purposes: 3 26 (1) Establishing and implementing standards for recording, 3 27 processing, and archiving electronic documents and records. 3 28 (2) Expanding access to records by encouraging electronic 3 29 indexing and scanning of documents and instruments recorded in 3 30 prior years. 3 31 (3) Other activities deemed necessary by the governing 3 32 board of the county land record information system. 3 33 d. To the extent possible, fees collected in excess of the 3 34 amount needed for the purposes specified in this section shall 3 35 be used by the county land record information system to reduce 4 1 or eliminate service fees for electronic submission of 4 2 documents and instruments. 4 3 3. The county treasurer, on behalf of the recorder, shall 4 4 establish and maintain a county recorder's electronic 4 5 transaction fund into which all moneys collected pursuant to 4 6subsections 1 andsubsection 2 shall be deposited. Interest 4 7 earned on moneys deposited in this fund shall be computed 4 8 based on the average monthly balance in the fund and shall be 4 9 credited to the county recorder's electronic transaction fund. 4 10 4. The local government electronic transaction fund is 4 11 established in the office of the treasurer of state under the 4 12 control of the treasurer of state. Moneys deposited into the 4 13 fund are not subject to section 8.33. Notwithstanding section 4 14 12C.7, interest or earnings on moneys in the local government 4 15 electronic transaction fund shall be credited to the fund. 4 16 Moneys in the local government electronic transaction fund are 4 17 not subject to transfer, appropriation, or reversion to any 4 18 other fund, or any other use except as provided in this 4 19 subsection. On a monthly basis, the county treasurer shall 4 20 payeach fee collected pursuant to subsection 2the fees 4 21 deposited in the county recorder's electronic transaction fund 4 22 to the treasurer of state for deposit into the local 4 23 government electronic transaction fund. Moneys credited to 4 24 the local government electronic transaction fund are 4 25 appropriated to the treasurer of state to be used for the 4 26 purpose of paying the ongoing costs of integrating and 4 27 maintaining the statewide internet websitedeveloped and 4 28 implemented under subsection 1to provide electronic access to 4 29 records and information. 4 30 5. The recorder shall make available any information 4 31 required by the county auditor or auditor of state concerning 4 32 the fees collected under this section for the purposes of 4 33 determining the amount of fees collected and the uses for 4 34 which such fees are expended. 4 35 Sec. 5. Section 331.606, Code 2009, is amended by adding 5 1 the following new subsection: 5 2 NEW SUBSECTION. 4. The recorder shall permanently archive 5 3 an unaltered version of each recorded document or instrument. 5 4 A document or instrument may be archived in its original 5 5 format, as an electronic document, or in another format 5 6 suitable for preserving information in the document or 5 7 instrument. A person may view and copy an original or 5 8 unaltered document or instrument in the office of the 5 9 recorder. 5 10 Sec. 6. Section 331.606A, subsection 1, paragraph c, Code 5 11 2009, is amended to read as follows: 5 12 c. "Redact" or "redaction" means the process of 5 13 permanently removing all or a portion of personally 5 14 identifiable information from documents. 5 15 Sec. 7. Section 331.606A, subsection 2, Code 2009, is 5 16 amended to read as follows: 5 17 2. INCLUSION OF PERSONALLY IDENTIFIABLE INFORMATION. The 5 18 preparer of a document shall not include an individual's 5 19 personally identifiable information in a document that is 5 20 prepared and presented for recording in the office of the 5 21 recorder. This subsection shall not apply to documents that 5 22 were executed by an individual prior to July 1, 2007.Unless 5 23 provided otherwise by law, all documents described by this 5 24 section are subject to inspection and copying by the public.5 25 Sec. 8. Section 331.606A, subsection 3, Code 2009, is 5 26 amended by striking the subsection and inserting in lieu 5 27 thereof the following: 5 28 3. REDACTION FROM ELECTRONIC DOCUMENTS. Personally 5 29 identifiable information that is contained in electronic 5 30 documents that are displayed for public access on a website, 5 31 or which are transferred to any person for commercial 5 32 purposes, shall be redacted prior to displaying or 5 33 transferring the documents. Each recorder that displays 5 34 electronic documents and the county land record information 5 35 system that displays electronic documents on behalf of a 6 1 county shall implement a system for redacting personally 6 2 identifiable information. The recorder and the governing 6 3 board of the county land record information system shall 6 4 establish a procedure by which individuals may request that 6 5 personally identifiable information contained in an electronic 6 6 document displayed on a website be redacted, at no fee to the 6 7 requesting individual. The requirements of this subsection 6 8 shall be fully implemented not later than December 31, 2011. 6 9 Sec. 9. Section 331.606A, subsection 5, Code 2009, is 6 10 amended to read as follows: 6 11 5. APPLICABILITY. 6 12 a.This sectionSubsection 2 shall not apply to a preparer 6 13 of a state or federal tax lien or release, a military 6 14 separation or discharge record, or a death certificate that is 6 15 prepared for recording in the office of county recorder. 6 16 b. Subsection 3 shall not apply to a military separation 6 17 or discharge record, a birth record, a death certificate, or 6 18 marriage certificate unless such record or certificate is 6 19 incorporated within another document or instrument that is 6 20 recorded and displayed for public access on a website. 6 21 c. If a military separation or discharge record or a death 6 22 certificate is recorded in the office of the county recorder, 6 23 the military separation or discharge record or the death 6 24 certificate shall not beaccessible through the internet6 25 displayed for public access on an internet website, public 6 26 access terminal or other medium, or be transferred to any 6 27 person for commercial purposes. 6 28 Sec. 10. Section 331.606A, Code 2009, is amended by adding 6 29 the following new subsection: 6 30 NEW SUBSECTION. 6. LIMITATION OF LIABILITY. The county 6 31 land record information system is a unit of local government 6 32 for purposes of chapter 670, relating to tort liability of 6 33 governmental subdivisions. 6 34 Sec. 11. Section 331.606B, subsection 1, Code 2009, is 6 35 amended by adding the following new paragraph: 7 1 NEW PARAGRAPH. g. Each document or instrument presented 7 2 for recording shall meet the requirements of section 331.606A, 7 3 subsection 2. 7 4 Sec. 12. IMPLEMENTATION OF ACT. Section 25B.2, subsection 7 5 3, shall not apply to this Act. 7 6 EXPLANATION 7 7 This bill relates to the duties and authority of county 7 8 recorders and the county land record information system. 7 9 The bill requires each county to participate in the county 7 10 land record information system and comply with the policies 7 11 and procedures established by the governing board of the 7 12 county land record information system. 7 13 The bill increases the electronic transaction fee from $1 7 14 per recorded transaction to $3 for transactions recorded 7 15 between July 1, 2009, and June 30, 2011. The bill also 7 16 provides that the electronic transaction fee for transactions 7 17 recorded on or after July 1, 2011, is $2. The bill specifies 7 18 the purposes for which electronic transaction fees may be used 7 19 and provides that fees collected in excess of the amount 7 20 needed shall be used by the county land record information 7 21 system to reduce or eliminate service fees for electronic 7 22 submission services. 7 23 The bill authorizes the county recorder or the governing 7 24 board of the county land record information system to enter 7 25 into an agreement to provide access to electronic documents or 7 26 records on a batch basis, as defined in the bill, and to 7 27 collect fees for such access. Any such agreement must require 7 28 the person with access to certify in writing that they will 7 29 not provide such documents or records to any third party 7 30 without the permission of the county recorder or the governing 7 31 board of the county land record information system. 7 32 The bill amends the definition of "redact" or "redaction" 7 33 to mean the process of permanently removing all or a portion 7 34 of personally identifiable information from documents and 7 35 requires that personally identifiable information contained in 8 1 electronic documents that are displayed for public access on a 8 2 website, or which are transferred to any person for commercial 8 3 purposes, be redacted prior to displaying or transferring the 8 4 documents. 8 5 The bill also requires each county recorder that displays 8 6 electronic documents and the county land record information 8 7 system that displays electronic documents on behalf of a 8 8 county to implement a system for redacting personally 8 9 identifiable information and to establish a procedure by which 8 10 individuals may request that personally identifiable 8 11 information contained in an electronic document displayed on a 8 12 website be redacted, at no fee to the requesting individual. 8 13 The bill requires procedures for redaction to be fully 8 14 implemented by December 31, 2011. The bill excludes certain 8 15 recorded documents and certificates from the prohibition on 8 16 inclusion of personally identifiable information and the 8 17 requirements for redaction of such information. 8 18 The bill provides that a county recorder shall refuse any 8 19 document or instrument presented for recording that contains 8 20 personally identifiable information, unless the person pays an 8 21 additional recording fee of $10 per document or instrument. 8 22 The bill requires a county recorder to permanently archive 8 23 an unaltered version of each recorded document or instrument 8 24 and provides that such documents and instruments may be viewed 8 25 or copied in the office of the recorder. 8 26 The bill designates the county land record information 8 27 system as a unit of local government for purposes of Code 8 28 chapter 670, relating to tort liability of governmental 8 29 subdivisions. 8 30 The bill may include a state mandate as defined in Code 8 31 section 25B.3. The bill makes inapplicable Code section 8 32 25B.2, subsection 3, which would relieve a political 8 33 subdivision from complying with a state mandate if funding for 8 34 the cost of the state mandate is not provided or specified. 8 35 Therefore, political subdivisions are required to comply with 9 1 any state mandate included in the bill. 9 2 LSB 1556SC 83 9 3 md/sc/5.2