Senate File 371 - Introduced SENATE FILE 371 BY KLIMESH A BILL FOR An Act concerning county recorder policies and procedures 1 including the imposition of fees and the establishment 2 of funds, and including transition and effective date 3 provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 1517XS (3) 91 ll/js

S.F. 371 Section 1. Section 331.601A, Code 2025, is amended by adding 1 the following new subsections: 2 NEW SUBSECTION . 01. “Additional parcel identifier” means a 3 parcel letter or number designation approved by the auditor in 4 accordance with section 354.4, subsection 1, paragraph “a” , and 5 section 558.63. 6 NEW SUBSECTION . 1A. “County land record management system” 7 means the physical or hosted system maintained or licensed 8 by each county for recording documents, assigning recording 9 reference numbers, specifying recording times, maintaining 10 the database and index of records, and archiving physical and 11 electronic documents and generally providing recording services 12 as required in this part 3 of subchapter V and section 558.49. 13 NEW SUBSECTION . 3A. “Electronic services system” means the 14 organization formed under chapter 28E between the counties to 15 create and implement a statewide electronic county land record 16 information system as required by 2005 Iowa Acts, ch. 179, 17 §101, as amended by 2021 Iowa Acts, ch. 126, §2, and this Act. 18 “Electronic services system” also means the statewide electronic 19 system implemented to accept, manage, and make available 20 records filed with a county recorder. 21 NEW SUBSECTION . 7A. “Parcel identification number” means an 22 existing permanent real estate index number with related tax 23 maps as provided in section 441.29, subsection 2. 24 Sec. 2. Section 331.601A, subsections 3 and 7, Code 2025, 25 are amended to read as follows: 26 3. “Electronic document” means a document or instrument 27 that is received, processed, disseminated, or maintained in an 28 electronic format. The submission of an electronic document 29 through the county land record information electronic services 30 system electronic submission service shall be equivalent to 31 delivery of a document through the United States postal service 32 or by personal delivery at designated offices in each county. 33 Persons who submit electronic documents for recording are 34 responsible for ensuring that the electronic documents comply 35 -1- LSB 1517XS (3) 91 ll/js 1/ 20

S.F. 371 with all requirements for recording. 1 7. “Page” means a writing, printing, or drawing, other than 2 a plat or survey or a drawing related to a plat or survey, 3 occurring on one side only and covering all or part of such 4 side, and not larger than eight and one-half inches in width 5 and fourteen inches in length. “Page” also includes a plat 6 of survey, as defined in section 355.1, subsection 9, or a 7 drawing related to a plat of survey occurring on one side only 8 and covering all or part of such side, with a width of not 9 larger than twenty-four inches and a length of not larger than 10 thirty-six inches. 11 Sec. 3. Section 331.603, subsection 5, paragraph a, Code 12 2025, is amended to read as follows: 13 a. The governing board of the county land record information 14 system shall not enter into an agreement to provide access 15 to electronic documents or records on a batch basis. The 16 county recorder may collect reasonable fees for access to 17 electronic documents and records pursuant to an agreement. 18 The fees shall not exceed the actual cost of providing access 19 to the electronic documents and records. “Actual cost” means 20 only those expenses directly attributable to providing access 21 to electronic documents and records. “Actual cost” shall 22 not include costs such as employment benefits, depreciation, 23 maintenance, electricity, or insurance associated with the 24 administration of the office of the county recorder or the 25 county land record information system . 26 Sec. 4. Section 331.604, Code 2025, is amended by striking 27 the section and inserting in lieu thereof the following: 28 331.604 Recording and filing fees. 29 1. a. Except as otherwise provided by state law, including 30 paragraph “b” of this subsection or section 331.605, the 31 recorder shall collect a fee of ten dollars for each page or 32 fraction of a page of an instrument that is physically or 33 electronically filed or recorded in the recorder’s office. The 34 maximum recording fee for documents with fifty or more pages 35 -2- LSB 1517XS (3) 91 ll/js 2/ 20

S.F. 371 is five hundred dollars. 1 b. A county shall not be required to pay a fee to the 2 recorder for filing or recording instruments. However, a 3 county treasurer is required to pay recording fees pursuant to 4 sections 437A.11 and 437B.7. 5 2. The treasurer, on behalf of the recorder, shall establish 6 and maintain a recorder’s technology advancement fund into 7 which all moneys collected pursuant to subsection 3 shall be 8 deposited. Interest earned on moneys deposited in the fund 9 shall be credited to the recorder’s technology advancement 10 fund. The recorder may collaborate with other entities, 11 boards, and agencies to further the purposes of subsection 3. 12 3. From the total fee paid for the recording of a document 13 or instrument pursuant to subsection 1, two dollars shall be 14 transferred to the recorder’s technology advancement fund. 15 Moneys in the recorder’s technology advancement fund must be 16 used for the following purposes: 17 a. Maintaining and improving equipment, software, and 18 systems. 19 b. Preserving and maintaining archived physical and 20 electronic documents and instruments. 21 c. Converting physical documents to electronic documents 22 and, if it is possible to index the documents during the 23 conversion to meet the requirements outlined in sections 24 331.606 and 558.49, indexing the documents. 25 d. Education and training for advancing technology. 26 4. The treasurer, on behalf of the recorder, shall establish 27 and maintain a recorder’s electronic services system fund into 28 which all moneys collected pursuant to subsection 5 shall be 29 deposited. Interest earned on moneys deposited in the fund 30 shall be credited to the recorder’s electronic services system 31 fund. 32 5. a. From the total fee paid for the recording of a 33 document or instrument pursuant to subsection 1, three dollars 34 shall be transferred to the recorder’s electronic services 35 -3- LSB 1517XS (3) 91 ll/js 3/ 20

S.F. 371 system fund. The recorder’s electronic services system fund 1 must be used for the purposes outlined in section 331.605B, 2 subsection 1. 3 b. By the first day of each month, the treasurer shall 4 transfer the moneys deposited into the recorder’s electronic 5 services system fund to an account in a financial institution 6 designated by the electronic services system. 7 6. The recorder or the electronic services system shall 8 make available any information required by the county auditor 9 or auditor of state concerning the moneys collected from 10 fees under this section and the uses for which such fees are 11 expended. 12 Sec. 5. Section 331.605B, Code 2025, is amended by striking 13 the section and inserting in lieu thereof the following: 14 331.605B Electronic services system —— fees collected —— 15 liability. 16 1. The governing board of the electronic services system 17 shall create and implement a statewide electronic county land 18 record management system for the following purposes: 19 a. Enable electronic filing to record documents. 20 b. Provide electronic access to recorded documents to the 21 public. 22 c. Receive electronic payments to process electronic 23 documents for recording. 24 d. Implement security and redaction systems to protect 25 personally identifiable information. 26 e. Integrate with other appropriate real property filing or 27 management systems. 28 f. Establish standards for processing, recording, indexing, 29 accessing, and archiving documents for electronic county land 30 record management systems and the electronic services system. 31 g. Develop a notification system to inform a user when 32 electronic filings or records are associated with the user’s 33 name, identified property, or other recorded filing information 34 when applicable. 35 -4- LSB 1517XS (3) 91 ll/js 4/ 20

S.F. 371 2. The electronic services system may collect a fee of not 1 more than three dollars per recorded document to receive and 2 process electronic documents for recording. An additional 3 service charge may be added for credit or debit card payments. 4 The moneys collected from fees to receive and process 5 electronic documents for recording shall be used for the 6 purposes specified in subsection 1. The electronic services 7 system shall collect only statutorily authorized fees for land 8 records management and shall not collect a fee for viewing, 9 accessing, or printing documents in the statewide electronic 10 county land record management system unless specifically 11 authorized by statute. The electronic services system shall 12 not provide access to electronic filings or records on a batch 13 basis. 14 3. Each county shall participate in the electronic services 15 system and shall comply with the policies and procedures 16 established by the governing board of the electronic services 17 system. The board of supervisors of each county, on behalf 18 of each county recorder, may vote to amend the chapter 28E 19 agreement with other counties to provide for the ongoing 20 implementation of the electronic services system as required 21 by 2005 Iowa Acts, ch. 179, §101, as amended by 2021 Iowa Acts, 22 ch. 126, §2, and this Act. 23 4. The electronic services system is a unit of local 24 government for purposes of chapter 670. However, a person 25 who has contracted with the governing board of the electronic 26 services system to carry out the duties of the board is not an 27 employee for purposes of chapter 670. 28 Sec. 6. Section 331.606, subsections 1 and 2, Code 2025, are 29 amended to read as follows: 30 1. a. In addition to the information required in section 31 331.606B, subsection 2, section 558.49, and other requirements 32 specified by law, the recorder shall note in the electronic 33 county land record management system the date of filing 34 recording of each instrument, the number and character , type, 35 -5- LSB 1517XS (3) 91 ll/js 5/ 20

S.F. 371 or title of the instrument, and the name of each grantor 1 and grantee named in the instrument. In numbering the When 2 assigning reference numbers to documents or instruments, the 3 recorder may start with the number one immediately following 4 the date of annual settlement with the board and continue to 5 number them consecutively until the next annual settlement 6 with the board or the recorder may shall start with number one 7 on the first working day of the calendar year and continue to 8 number the instruments consecutively until the last working 9 day of the calendar year. Reference numbers shall include 10 only numbers, contain no more than six digits, and the county 11 two-digit number and four-digit year must precede each 12 reference number. The recorder may also assign a book and page 13 number to documents and instruments. 14 b. Associated and antecedent recording references shall be 15 indexed with the recorded document. 16 c. A parcel identification number shall be referenced if 17 known and shall not be modified unless the modification is 18 necessary to correct an error. 19 d. A legal description and parsed location information 20 shall be indexed if known. For platted land, the indexed 21 information shall include the lot, block, subdivision name, 22 city or township, and county. For unplatted land, the indexed 23 information shall include the section, township, range, and 24 quarter section. Indexing quarters of a quarter section is 25 recommended but not required. 26 e. Any additional parcel identifier shall be indexed as an 27 additional parcel identifier in the electronic services system. 28 2. The recorder shall also note in the index the exact 29 time hour, minute, and second of the filing recording of each 30 document or instrument. 31 Sec. 7. Section 331.606A, subsections 3 and 4, Code 2025, 32 are amended to read as follows: 33 3. Redaction from electronic documents. Personally 34 identifiable information that is contained in electronic 35 -6- LSB 1517XS (3) 91 ll/js 6/ 20

S.F. 371 documents that are displayed for public access on an internet 1 site, or which that are transferred to any person, shall be 2 redacted prior to displaying or transferring the documents. 3 Each recorder that displays electronic documents and the 4 county land record information electronic services system that 5 displays electronic documents on behalf of a county shall 6 implement a system for redacting personally identifiable 7 information. The recorder and the governing board of the 8 county land record information electronic services system shall 9 establish a procedure by which individuals may request that 10 personally identifiable information contained in an electronic 11 document displayed on an internet site be redacted, at no 12 fee to the requesting individual. The requirements of this 13 subsection shall be fully implemented not later than December 14 31, 2011. 15 4. Dissemination of documents. Persons who have contracted 16 with a county recorder or the governing board of the county 17 land record information electronic services system to redact 18 personally identifiable information from electronic documents 19 pursuant to subsection 3 shall not sell, transfer, or otherwise 20 disseminate the electronic documents in an unaltered or 21 redacted form, except as provided for in the contract. 22 Sec. 8. Section 331.606A, subsection 7, Code 2025, is 23 amended by striking the subsection and inserting in lieu 24 thereof the following: 25 7. Redaction of names. Upon request by a peace officer, 26 as defined in section 801.4, civilian employee of a law 27 enforcement agency, or state or federal judicial officer 28 or state or federal prosecutor, the county assessor or the 29 county assessor’s staff, or the county recorder or the county 30 recorder’s staff, shall redact the requestor’s name contained 31 in electronic documents that are displayed for public access 32 through an internet site. Upon request by a former peace 33 officer, as defined in section 801.4, or a former civilian 34 employee of a law enforcement agency, the county assessor or 35 -7- LSB 1517XS (3) 91 ll/js 7/ 20

S.F. 371 the county assessor’s staff, or the county recorder or the 1 county recorder’s staff, may redact, upon the presentation of 2 evidence that a compelling safety interest is served by doing 3 so, the requestor’s name contained in electronic documents that 4 are displayed for public access through an internet site. This 5 subsection does not apply to a requestor holding or seeking 6 public office. The county assessor and the county recorder 7 shall implement a process without charging a fee to facilitate 8 requests pursuant to this subsection. 9 Sec. 9. Section 331.606B, subsection 1, Code 2025, is 10 amended to read as follows: 11 1. Except as otherwise provided in subsection 7 , the county 12 recorder shall refuse any document or instrument presented 13 for recording To ensure that recorded documents are legible 14 and contain all required information in order to facilitate a 15 permanent record that can be properly archived and indexed, a 16 recorder may decline to record a document or instrument that 17 does not meet the following requirements: 18 a. Each document or instrument shall consist of one or 19 more individual pages not permanently bound or in a continuous 20 form. The For purposes of this paragraph, “continuous form” 21 means individual one-sided pages. A physical document or 22 instrument presented for filing shall not have any attachment 23 be permanently bound, stapled , taped, or otherwise affixed 24 to any page except as necessary to comply with statutory 25 requirements and must contain text or graphics on only one 26 side . However, the The individual pages of a physical document 27 or instrument may be stapled clipped together for presentation 28 for recording. A physical document or instrument containing a 29 label that is firmly attached with a bar code or return address 30 may be accepted for recording. 31 b. All preprinted text shall must be legible and the font 32 at least eight ten point in size and no more than twenty 33 characters and spaces per inch , except that the font may be 34 eight point in size if the document is a plat or survey . All 35 -8- LSB 1517XS (3) 91 ll/js 8/ 20

S.F. 371 other text typed or computer generated, including but not 1 limited to all names of parties to an agreement, shall be at 2 least ten point in size and no more than sixteen characters 3 and spaces per inch. If a document or instrument, other than 4 a plat or survey or a drawing related to a plat or survey, 5 presented for recording contains type smaller than eight point 6 type for the preprinted text and ten point type for all other 7 text, the document or instrument shall be accompanied by an 8 exact typewritten or printed copy that meets the requirements 9 of this section . 10 c. Each document shall be of sufficient legibility to 11 produce a clear reproduction. If a A document or instrument, 12 other than a plat or survey or a drawing related to a plat or 13 survey, that is not fully or partially sufficiently legible 14 to produce a clear reproduction , the document or instrument 15 shall be accompanied by an exact typewritten or printed copy 16 that meets the type size requirements of paragraph “b” and 17 shall a legible copy of the full or partial page, which will be 18 recorded contemporaneously as additional pages of the document 19 or instrument. 20 d. Each A physical document or instrument , other than a plat 21 or survey or a drawing related to a plat or survey, shall must 22 be on standard white paper of not less than twenty-pound weight 23 without watermarks or other visible inclusions markings . All 24 text within the document or instrument shall be of sufficient 25 color and clarity to ensure that the text is readable when 26 reproduced from the record. 27 e. All signatures on a document or instrument shall be in 28 black or dark blue ink and of sufficient color and clarity to 29 ensure that the signatures are readable discernible when the 30 document or instrument is reproduced from the record. The 31 corresponding name shall must be typed, printed , or stamped 32 beneath the original signature. The typing or printing of a 33 name or the application of an embossed or inked stamp shall 34 not cover or otherwise materially interfere with any part 35 -9- LSB 1517XS (3) 91 ll/js 9/ 20

S.F. 371 of the document or instrument except where when provided by 1 law. Failure to print or type signatures as provided in this 2 paragraph does not invalidate the document or instrument. 3 f. The first page of each document or instrument, other than 4 a plat or survey or a drawing related to a plat or survey, shall 5 have a top margin of at least three inches of vertical space 6 from left to right which shall be reserved one-half of one 7 inch. If the document or instrument does not include a cover 8 page, then there must be a blank rectangular space with the 9 dimensions of three and three-fourths inches in width and two 10 and one-half inches in height adjacent to the top margin on the 11 first page and designated for the recorder’s use. All other 12 margins on the document or instrument shall be a minimum of 13 three-fourths of one inch. Nonessential information including 14 but not limited to form numbers, page numbers, or customer 15 notations may be placed in a margin except the top margin. The 16 recorder shall not incur any liability for not showing a seal 17 or information that extends beyond the margin of the permanent 18 archival record. 19 g. Each A document or instrument presented for recording 20 shall meet the requirements of section 331.606A, subsection 2 21 not include personally identifiable information unless redacted 22 in accordance with section 331.606A, subsection 3 . 23 Sec. 10. Section 331.606B, subsection 2, unnumbered 24 paragraph 1, Code 2025, is amended to read as follows: 25 Each document or instrument, other than a plat or survey or 26 a drawing related to a plat or survey, that is presented for 27 recording shall contain the following information on the first 28 page below the three-inch margin or on a cover page : 29 Sec. 11. Section 331.606B, subsection 2, paragraphs a, d, 30 and i, Code 2025, are amended to read as follows: 31 a. The name, address, and either the telephone number or 32 email address of the individual who prepared the document , or 33 the contact information for an individual familiar with the 34 document or instrument who is able to address questions from 35 -10- LSB 1517XS (3) 91 ll/js 10/ 20

S.F. 371 the recorder . 1 d. The title or type of the document or instrument. 2 i. A document or instrument number for statutory 3 requirements Associated and antecedent recording references , 4 if applicable. 5 Sec. 12. Section 331.606B, subsection 3, Code 2025, is 6 amended to read as follows: 7 3. A cover page meeting the requirements of section 8 331.606B, subsection 1, may be included with the document 9 or instrument and will be recorded contemporaneously as an 10 additional page of the document or instrument. If insufficient 11 space exists on the first page or the cover page for all of the 12 information described in subsection 2 , the person presenting 13 the document for recording must identify on the first page 14 or the cover page a page reference of for the document or 15 instrument where the required information is located shall be 16 noted on the first page can be located . 17 Sec. 13. Section 331.606B, subsection 4, Code 2025, is 18 amended by striking the subsection and inserting in lieu 19 thereof the following: 20 4. A recording of a document or instrument evidencing a 21 transaction for the conveyance or assignment of property, 22 transactions related to the property’s financing, or a release 23 of a legal or financial obligation on the property applies 24 solely to the parties identified and participating in the 25 recorded transaction and not any other party concerning any 26 other transaction. 27 Sec. 14. Section 331.606B, subsection 6, Code 2025, is 28 amended to read as follows: 29 6. A physical document or instrument rejected declined 30 for recording by a recorder shall be returned to the preparer 31 or presenter accompanied by an explanation of the reason 32 for rejection declining the document or instrument and any 33 information necessary to correct the defect . A person who 34 files an electronic document or instrument declined for 35 -11- LSB 1517XS (3) 91 ll/js 11/ 20

S.F. 371 recording by a recorder shall be notified by the recorder that 1 the document or instrument has been declined, the reason the 2 document or instrument has been declined, and any information 3 necessary to correct the defect. If the recording fee for an 4 electronic document or instrument was calculated and processed 5 incorrectly, the person who filed the document or instrument 6 shall be notified of the error and the reason for the fee 7 adjustment by the recorder. 8 Sec. 15. Section 331.606B, subsection 7, Code 2025, is 9 amended by striking the subsection. 10 Sec. 16. NEW SECTION . 331.612 Recording of surveys. 11 1. Notwithstanding section 331.606B, the following 12 document or document formatting standards shall apply to 13 surveys submitted by licensed professional land surveyors for 14 recording: 15 a. All text must be legible and the font at least eight 16 point in size. 17 b. All text font, signatures, and drawings must have 18 sufficient weight, contrast, and darkness to produce a clear 19 reproduction. 20 c. Physical documents submitted to a county for recording 21 shall be on standard white paper without watermarks or other 22 visible markings and shall have dimensions no greater than 23 eleven by seventeen inches. Notwithstanding the dimensions 24 specified for physical documents in this section, a physical 25 document with dimensions no greater than twenty-four inches by 26 thirty-six inches may be submitted to the county if the county 27 is able to scan or digitize the document while maintaining 28 the original scale and quality of the document as specified 29 in paragraphs “a” and “b” . Electronic documents submitted to 30 a county for recording through the electronic services system 31 shall have dimensions no greater than twenty-four inches by 32 thirty-six inches. 33 d. The survey must contain an index legend as outlined in 34 subsection 2. 35 -12- LSB 1517XS (3) 91 ll/js 12/ 20

S.F. 371 e. A survey must provide a cover page or a blank rectangular 1 space on the first page with the dimensions of three and 2 three-fourths inches in width and two and one-half inches in 3 height designated for the recorder’s use. 4 2. A survey must contain an index legend consisting of a 5 compact table or a grid with lines that provides the following 6 information: 7 a. County name. 8 b. For platted land, the index information shall include 9 the additional parcel identifier, if applicable; lot or unit; 10 block; unabbreviated subdivision name; town, city, or county; 11 section; township; and range. For unplatted land, the indexed 12 information shall include the additional parcel identifier, 13 if applicable, section, township, range, and quarter section. 14 Indexing quarters of a quarter section is recommended but 15 not required. Subdivision plats, acquisition plats, and 16 retracement plats of survey shall reference the existing 17 auditor’s parcel designation in accordance with section 354.4, 18 subsection 1, paragraph “a” . A plat of survey shall reference 19 the approved auditor’s parcel designation in accordance with 20 section 354.4, subsection 1, paragraph “a” . 21 c. The parcel identification number and additional parcel 22 identifier, if applicable. 23 d. Proprietor’s name. 24 e. Requester’s name. 25 f. Associated reference numbers for previously recorded 26 surveys. 27 g. The surveyor’s name, address, and phone number or email 28 address. 29 h. Information necessary for the county recorder to return 30 the survey document. 31 i. If the survey document is a monument preservation 32 certificate, the name of the government entity requesting the 33 certification in accordance with section 355.6A. 34 Sec. 17. Section 354.18, subsection 2, Code 2025, is amended 35 -13- LSB 1517XS (3) 91 ll/js 13/ 20

S.F. 371 to read as follows: 1 2. The recorder shall examine each plat of survey and 2 subdivision plat to determine whether the plat is clearly 3 legible and whether the approval by the applicable governing 4 body and the other attachments required by this chapter are 5 presented with the plat. The recorder shall also keep a 6 reproducible physical or electronic copy of the plat from 7 which legible copies can be made. The When a physical plat is 8 presented for recording, the recorder may specify the material 9 and the size of the plat , accepted for recording as long as the 10 document is not less than eight and one-half inches in width by 11 eleven inches , that will be accepted for recording in order to 12 comply with this section in height . The recorder must accept a 13 plat or subdivision plat meeting the requirements of section 14 355.7, 355.7A, or 355.8, respectively, submitted electronically 15 through the electronic services system. The recorder shall not 16 record a subdivision plat that violates this chapter . 17 Sec. 18. Section 355.6A, subsection 4, paragraphs a and b, 18 Code 2025, are amended to read as follows: 19 a. The monument preservation certificate shall be filed with 20 the county recorder pursuant to section 331.606B, subsection 21 5 section 331.612, subsection 2, paragraph “i” , no later than 22 thirty days after the certificate is signed by the surveyor. 23 b. The county recorder shall index the monument preservation 24 certificate according to the township, range, section number, 25 and quarter section on in which the monument is located within . 26 If the monument is located within an official plat, the county 27 recorder shall also index the certificate alphabetically by the 28 official plat name. 29 Sec. 19. Section 355.6A, subsection 4, paragraph c, Code 30 2025, is amended by striking the paragraph. 31 Sec. 20. Section 355.12, Code 2025, is amended to read as 32 follows: 33 355.12 Indexing of survey documents by recorder. 34 The recorder shall index survey documents and United States 35 -14- LSB 1517XS (3) 91 ll/js 14/ 20

S.F. 371 public land corner certificates submitted in accordance with 1 section 331.612, subsection 2, paragraph “b” , by township, 2 range, and section number. If the survey is in a recorded 3 subdivision, the recorder shall also index the document 4 alphabetically by subdivision name. 5 Sec. 21. Section 670.2, subsection 2, Code 2025, is amended 6 to read as follows: 7 2. For the purposes of this chapter , “employee” includes a 8 person who performs services for a municipality whether or not 9 the person is compensated for the services, unless the services 10 are performed only as an incident to the person’s attendance 11 at a municipality function. “Employee” does not include 12 contractors employed by the governing board of the electronic 13 services system to provide services in accordance with section 14 331.605B. 15 Sec. 22. 2005 Iowa Acts, chapter 179, section 101, 16 subsection 1, as amended by 2021 Iowa Acts, chapter 126, 17 section 2, is amended to read as follows: 18 1. The board of supervisors of each county, on behalf of 19 each county recorder, shall execute a chapter 28E agreement 20 with the other counties for the implementation of the county 21 land record information electronic services system to create 22 and implement a statewide electronic county land record 23 information system . 24 Sec. 23. TRANSITION. Any moneys remaining in each county’s 25 county recorder’s records management fund, as described in 26 section 331.604, subsection 2, paragraph “a”, Code 2025, as 27 of the effective date of this Act shall be transferred to the 28 respective county’s recorder’s technology advancement fund, as 29 described in section 331.604, subsection 2, as amended by this 30 Act. Any moneys remaining in each county’s county recorder’s 31 electronic transaction fund, as described in section 331.604, 32 subsection 3, paragraph “c”, Code 2025, as of the effective 33 date of this Act shall be transferred to the respective 34 county’s recorder’s electronic services system fund, as 35 -15- LSB 1517XS (3) 91 ll/js 15/ 20

S.F. 371 described in section 331.604, subsection 4, as amended by this 1 Act. Any moneys remaining in the local government electronic 2 transaction fund, as described in section 331.604, subsection 3 3, paragraph “d”, Code 2025, after the effective date of this 4 Act are appropriated to the treasurer of state to be used by 5 the treasurer of state to assist the governing board of the 6 electronic services system in accomplishing the purposes stated 7 in section 331.605B, subsection 1, as amended by this Act. 8 Sec. 24. EFFECTIVE DATE. The following takes effect January 9 1, 2026: 10 The portion of the section of this Act amending section 11 331.606, subsection 1. 12 EXPLANATION 13 The inclusion of this explanation does not constitute agreement with 14 the explanation’s substance by the members of the general assembly. 15 This bill relates to certain required document criteria to 16 file documents and instruments with county recorders, fees 17 paid for recording documents, funds created for recorders and 18 the electronic services system and associated authorization 19 for spending moneys in those funds for certain purposes, the 20 creation of the electronic services system, organized by 21 an agreement pursuant to Code chapter 28E (28E agreement), 22 and the electronic filing system used to accept, manage, 23 and make available county recorder filings electronically. 24 Under current law, county recorders are required to execute 25 a 28E agreement with other counties to implement a county 26 land record information system in accordance with 2005 Iowa 27 Acts, chapter 179, section 101, subsection 1, as amended by 28 2021 Iowa Acts, chapter 126, section 2. The bill amends this 29 provision to require county recorders to enter into a 28E 30 agreement to create and implement the electronic services 31 system, a statewide electronic county land record information 32 system. The bill defines “electronic services system” as the 33 organization formed under the 28E agreement. The electronic 34 services system is also the name of the actual electronic 35 -16- LSB 1517XS (3) 91 ll/js 16/ 20

S.F. 371 system implemented to accept, manage, and make available 1 records filed with a county recorder. 2 Several sections of Code chapter 331, subchapter V, 3 part 3, pertaining to the county recorder are amended to 4 specify certain requirements for documents or instruments 5 submitted to a county recorder for filing either in person 6 or electronically. Many of these requirements pertain to 7 required recording references, indexing, formatting, text, 8 margin sizes, and document size limitations with an emphasis on 9 legibility. References to the county land record information 10 system are removed throughout Code chapter 331 and replaced 11 with “electronic services system”. 12 Under current law, in addition to the $5 county recorders 13 collect for each page of a document or instrument filed in 14 the county recorder’s office, $1 is collected for the county 15 recorder’s records management fund, and $1 is collected for 16 the county recorder’s electronic transaction fund. The bill 17 changes the fees to a flat fee of $10 for each page filed or 18 recorded in the recorder’s office, with a maximum recording fee 19 of $500 for 50 or more pages filed. From the total fee of $10 20 per page of a document or instrument filed with a recorder, $2 21 is transferred to the recorder’s technology advancement fund 22 and $3 is transferred to the recorder’s electronic services 23 system fund. 24 The bill eliminates the county recorder’s records management 25 funds and creates recorder’s technology advancement funds to 26 be used for the following purposes: maintaining and improving 27 equipment, software, and systems; preserving and maintaining 28 archived physical and electronic documents or instruments; 29 converting physical documents to electronic documents; and 30 education and training for advancing technology. The bill 31 eliminates the county recorder’s electronic transaction funds 32 and creates recorder’s electronic services funds. By the first 33 day of each month, the treasurer shall transfer the moneys 34 deposited into the recorder’s electronic services system fund 35 -17- LSB 1517XS (3) 91 ll/js 17/ 20

S.F. 371 to an account in a financial institution designated by the 1 governing board of the electronic services system to be used 2 as outlined in new Code section 331.605B for the following 3 purposes: to enable electronic filing for recording documents; 4 to provide electronic access to recorded public documents; to 5 receive electronic payments to process electronic documents 6 for recording; to implement security and redaction systems to 7 protect personally identifiable information; to integrate with 8 other appropriate real property filing or management systems; 9 to establish standards for processing, recording, indexing, 10 accessing, and archiving documents for electronic county land 11 record management systems; and to develop a notification system 12 for users when electronic filings or records are associated 13 with the user’s name, property, or other recorded filing 14 information. The recorder or the electronic services system 15 shall make available any information required by the county 16 auditor or auditor of state concerning the moneys collected 17 from fees and the uses for which such fees are expended. 18 The county treasurer must transfer moneys remaining in the 19 county recorder’s records management fund to the recorder’s 20 technology advancement fund and moneys remaining in the county 21 recorder’s electronic transaction fund to the recorder’s 22 electronic services fund on the effective date of the bill. 23 The bill provides that any moneys remaining in the local 24 government electronic transaction fund after the effective date 25 of the bill are appropriated to the treasurer of state to be 26 used by the treasurer of state to assist the governing board of 27 the electronic services system in accomplishing the purposes 28 stated in Code section 331.605B(1). 29 The electronic services system may collect a fee of not more 30 than $3 per recorded document, along with any service charges 31 associated with a credit or debit card payment, to receive and 32 process a document or instrument. Moneys collected from these 33 fees by the electronic services system must be used for the 34 same purposes as the recorder’s electronic services fund. The 35 -18- LSB 1517XS (3) 91 ll/js 18/ 20