SB-0791, As Passed Senate, July 1, 2010
HOUSE SUBSTITUTE FOR
SENATE BILL NO. 791
A bill to create the uniform real property electronic
recording act; and to create an electronic recording commission and
provide for its powers and duties.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. This act shall be known and may be cited as the
"uniform real property electronic recording act".
Sec. 2. As used in this act:
(a) "Commission" means the electronic recording commission
created in section 5.
(b) "Document" means information that is inscribed on a
tangible medium or that is stored in an electronic or other medium
and is retrievable in perceivable form, and that is eligible to be
recorded in the land records maintained by the county register of
deeds.
(c) "Electronic" means relating to technology having
electrical, digital, magnetic, wireless, optical, electromagnetic,
or similar capabilities.
(d) "Electronic document" means a document that is received by
the county register of deeds in an electronic form.
(e) "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.
(f) "Paper document" means a document that is received by the
county register of deeds in a form that is not electronic.
(g) "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.
Sec. 3. (1) 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.
(2) If a law requires as a condition for recording that a
document be signed, the requirement is satisfied by an electronic
signature.
(3) A requirement that a document or a signature associated
with a document be notarized, 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.
(4) This section does not require that a register of deeds
accept electronic documents for recording.
Sec. 4. (1) A county register of deeds who implements any of
the functions listed in subsection (2) shall do so in compliance
with any standards established by the electronic recording
commission.
(2) A county register of deeds may do any of the following:
(a) Receive, index, store, archive, and transmit electronic
documents.
(b) Provide for access to, and for search and retrieval of,
documents and information by electronic means.
(c) Convert paper documents accepted for recording into
electronic form.
(d) Convert into electronic form information recorded before
the county register of deeds began to record electronic documents.
(e) Accept electronically any fee or tax that the county
register of deeds is authorized to collect.
(f) Agree with other officials of a state or a political
subdivision of a state, or of the United States, on procedures or
processes to facilitate the electronic satisfaction of prior
approvals and conditions precedent to recording and the electronic
payment of fees or taxes.
(3) A county register of deeds who accepts electronic
documents for recording shall continue to accept paper documents
for recording as authorized by state law. The county register of
deeds shall place entries for both types of documents in the same
index.
(4) This act does not invalidate electronic documents recorded
under this act, the uniform electronic transactions act, 2000 PA
305, MCL 450.831 to 450.849, or the federal electronic signatures
in global and national commerce act, 15 USC 7001 to 7031, before
the establishment of standards under this act by the electronic
recording commission.
Sec. 5. (1) Effective January 1, 2011, an electronic recording
commission is created within the department of technology,
management, and budget. The commission consists of 8 members, as
follows:
(a) The director of the department of technology, management,
and budget or his or her designee, who shall be a nonvoting member.
(b) Seven members appointed by the governor, as follows:
(i) Four shall be county registers of deeds.
(ii) One shall be an individual who is engaged in the land
title profession.
(iii) One shall be an individual who is engaged in the business
of banking.
(iv) One shall be an individual who is an attorney licensed to
practice law in this state and whose practice emphasizes real
property matters.
(2) The appointed members of the commission shall serve for
terms of 2 years or until a successor is appointed, whichever is
later, except that of the members first appointed 3 shall serve for
1 year, 2 shall serve for 2 years, and 2 shall serve for 3 years.
(3) If a vacancy occurs on the commission, the governor shall
make an appointment for the unexpired term in the same manner as
the original appointment.
(4) The governor may remove an appointed member of the
commission for incompetency, dereliction of duty, malfeasance,
misfeasance, or nonfeasance in office, or any other good cause.
(5) The first meeting of the commission shall be called by the
director of the department of technology, management, and budget.
At the first meeting, the commission shall elect from among its
members a chairperson and other officers as it considers necessary
or appropriate. After the first meeting, the commission shall meet
at least quarterly, or more frequently at the call of the
chairperson or if requested by 5 or more members.
(6) A majority of the members of the commission constitute a
quorum for the transaction of business at a meeting of the
commission. A majority of the members present and serving are
required for official action of the commission.
(7) The business that the commission may perform shall be
conducted at a public meeting of the commission held in compliance
with the open meetings act, 1976 PA 267, MCL 15.261 to 15.275.
(8) A writing prepared, owned, used, in the possession of, or
retained by the commission in the performance of an official
function is subject to the freedom of information act, 1976 PA 442,
MCL 15.231 to 15.246.
(9) Members of the commission shall serve without
compensation. However, members of the commission may be reimbursed
for their actual and necessary expenses incurred in the performance
of their official duties as members of the commission.
(10) The commission shall adopt standards to implement this
act. To keep the standards and practices of county registers of
deeds in this state in harmony with the standards and practices of
offices of county registers of deeds in other jurisdictions that
enact substantially this act, and to keep the technology used by
county registers of deeds in this state compatible with technology
used by offices of county registers of deeds in other jurisdictions
that enact substantially this act, the commission, so far as is
consistent with the purposes, policies, and provisions of this act,
in adopting, amending, and repealing standards, shall consider all
of the following:
(a) Standards and practices of other jurisdictions.
(b) The most recent standards promulgated by national
standard-setting bodies, such as the property records industry
association.
(c) The views of interested persons and governmental officials
and entities.
(d) The needs of counties of varying size, population, and
resources.
(e) Standards requiring adequate information security
protection to ensure that electronic documents are accurate,
authentic, adequately preserved, and resistant to tampering.
Sec. 6. In applying and construing this uniform act,
consideration must be given to the need to promote uniformity of
the law with respect to its subject matter among states that enact
it.
Sec. 7. This act modifies, limits, and supersedes the federal
electronic signatures in global and national commerce act, 15 USC
7001, et seq., but does not modify, limit, or supersede section
101(c) of that act, 15 USC 7001(c), or authorize electronic
delivery of any of the notices described in section 103(b) of that
act, 15 USC 7003(b).