SB-0791, As Passed Senate, November 10, 2009

 

 

 

 

 

 

 

 

 

 

 

 

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 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.

 

     Sec. 5. (1) An electronic recording commission is created

 

within the department of information technology. The commission

 

consists of 8 members, as follows:

 

     (a) The director of the department of information technology

 

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 information technology. 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).