Authorizes recording officers to accept conveyance of real property presented for recording as electronic records

Summary of specific provisions

Section 1 of this bill would amend State Technology Law (STL), Section 307 to remove a provision that makes the Electronic Signature and Records Act (ESRA) inapplicable to conveyances or other instruments recordable under Real Property Law (RPL) Article 9.

Section 2 of the bill amends RPL Section 290, to include definitions or terms used in the new RPL. Section 291-1, added by Section 3 of this bill.

Section 3 of the bill amends RPL Article 9 to add a new Section 291-1 that would confirm the validity of digitized paper documents, electronic records, electronic signatures and electronic notarization, as follows:

RPL Section 291-1 (1) would provide that where a law, rule or regulation requires, as a condition of recording, that an instrument be assigned and notarized paper original, the requirement is satisfied by a digitized paper document or an electronic record that had been electronically signed and notarized.

RPL Section 291-1 (2) would require electronic submissions to utilize specific technology which does not permit changes without leaving a trail of evidence.

RPL Section 291-1 (3) would authorize recording officers [County Clerks] to opt to permit electronic recording in their county. Once a clerk opts to allow electronic recording, the County must offer the option to all filers.

RPL Section 291-1 (4) requires a recording officer who permits electronic recording to obey the rules and regulations of the electronic facilitator.

RPL Section 291.1 (5) requires the State Office for Technology to assume the role of the electronic facilitator and to write rules and regulations to govern the computer technology aspects of such filings.

RPL Section 291-1 (6) would provide that recording officers must continue to furnish the State Office of Real Property Services (ORPS) with paper documents of reports required by Real Property Tax Law Section 574, unless ORM agrees to accept data submissions in lieu

thereof or has provided for the electronic transmission of such data pursuant to law.

Section 4 of this bill amends RPL Section 317 to provide that a digitized paper document or an electronic record would be considered delivered for purposes of RPL Section 317 of the date and at the time such document or record is successfully transmitted to a recording office. Such delivery stamp would be limited to the regular business hours of the recording officer.

Section 5 of the bill makes it effective 365 days after it becomes a law, provided, however, that OFT would be authorized to promulgate rules, regulations, guidelines, standards and policies to effectuate the bill prior to such effective date.

Justification

This bill responds to the ongoing challenge of local governments to deliver more services with fewer resources. County clerks are continually seeking ways to improve efficiency, enhance services, and save taxpayer dollars. This bill permits, but not mandate, the application of information and communication technologies to support their activities related to the recording of instruments affecting real property.

In the past several years, virtually all businesses have become, to some degree or another, "e-businesses." Internet technology and readily available solutions have made e-business ubiquitous. Government has experienced a parallel trend. For example, the New York State Unified Court System has established "NYSCEF", a program that permits the filing and service of legal papers by electronic means with certain county clerks, and with courts in certain types of cases. This bill seeks to achieve similar efficiencies in the realm of real property conveyances by enabling county governments to modernize the manner in which real estate professional and recording officers conduct their business together. By implementing electronic recording, a local government would be able to reduce the volume of paper documents coming into the recorders' offices. Moreover, local governments that permit electronic recording stand to save considerable money of personnel and postage for returning documents.

Owners of real property, real estate professionals and local government taxpayers would benefit from the more accurate and efficient land records system that this bill would facilitate. This bill will also eliminate the need for persons seeking to record land documents to appear at the offices of recording officers to file hard copy originals, and it would provide for a more efficient and streamlined storage and retrieval system. Ultimately, electronic recording will improve the recording process from the point of origin (e.g. title companies, banks, attorneys' offices) to county clerks' offices. It will improve work flow, increase productivity, speed up the recording process and improve data accuracy.

Prior legislative history

2010 - S.8318 (Died Rules)

Fiscal implications

None to the State. Depending on the level of participation in each county, the receipt of electronic records or digitized documents for recording will enable county clerk offices to attain significant savings from the elimination of document scanning and the reduction in time and supplies necessary to return documents to their custodians after the original copies have been recorded.

Effective date

This bill would take effect 365 days after it becomes a law.