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.  Beginning For 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  6 subsections 1 and subsection 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 pay each fee collected pursuant to subsection 2 the 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 website developed and
  4 28 implemented under subsection 1 to 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 section Subsection 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 be accessible through the internet
  6 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