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| PRIOR PRINTER'S NOS. 1046, 2051 | PRINTER'S NO. 2890 |
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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| HOUSE BILL |
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| INTRODUCED BY LONGIETTI, CALTAGIRONE, D. COSTA, DEASY, FLECK, GIBBONS, GINGRICH, HALUSKA, HENNESSEY, KOTIK, MARSHALL, MIRABITO, MURT, M. O'BRIEN, REICHLEY, K. SMITH, WHITE AND DALEY, MARCH 8, 2011 |
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| AS AMENDED ON THIRD CONSIDERATION, HOUSE OF REPRESENTATIVES, DECEMBER 13, 2011 |
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| AN ACT |
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1 | Providing for the validity of electronic documents; authorizing |
2 | county recorders of deeds to receive electronic documents as |
3 | a means for recording real property; granting powers and |
4 | duties to the county recorders of deeds; establishing the |
5 | Electronic Recording Commission; and prescribing standards of |
6 | uniformity. |
7 | The General Assembly of the Commonwealth of Pennsylvania |
8 | hereby enacts as follows: |
9 | Section 1. Short title. |
10 | This act shall be known and may be cited as the Uniform Real |
11 | Property Electronic Recording Act. |
12 | Section 2. Definitions. |
13 | The following words and phrases when used in this act shall |
14 | have the meanings given to them in this section unless the |
15 | context clearly indicates otherwise: |
16 | "Commission." The Electronic Recording Commission |
17 | established in section 5. |
18 | "Department." The Department of State of the Commonwealth. |
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1 | "Document." Information that is: |
2 | (1) inscribed on a tangible medium or that is stored in |
3 | an electronic or other medium and is retrievable in |
4 | perceivable form; and |
5 | (2) eligible to be recorded in the land records |
6 | maintained by the recorder. |
7 | "Electronic." As defined under section 103 of the act of |
8 | December 16, 1999 (P.L.971, No.69), known as the Electronic |
9 | Transactions Act. |
10 | "Electronic document." A document that is received by the |
11 | recorder in an electronic form. |
12 | "Electronic signature." As defined under section 103 of the |
13 | act of December 16, 1999 (P.L.971, No.69), known as the |
14 | Electronic Transactions Act. |
15 | "Nonelectronic document." A document that is received by the |
16 | recorder in a form that is not electronic, including a document |
17 | on paper or microfilm. |
18 | "Person." Includes any of the following: |
19 | (1) A corporation. |
20 | (2) A partnership. |
21 | (3) A limited liability company. |
22 | (4) A business trust. |
23 | (5) An association. |
24 | (6) A government entity, including the Commonwealth. |
25 | (7) An estate. |
26 | (8) A trust. |
27 | (9) A foundation. |
28 | (10) An individual. |
29 | "Recorder." A county recorder of deeds, or a county official |
30 | responsible for the recordation of documents in counties without |
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1 | recorders of deeds. |
2 | "State." A state of the United States, the District of |
3 | Columbia, Puerto Rico, the Virgin Islands or any territory or |
4 | insular possession subject to the jurisdiction of the United |
5 | States. |
6 | Section 3. Validity of electronic documents. |
7 | (a) Requirement for original.--If a law requires, as a |
8 | condition for recording, that a document be an original, either |
9 | on paper or another tangible medium, or be in writing, the |
10 | requirement is satisfied by an electronic document that complies |
11 | with the provisions of this act. |
12 | (b) Signature.--If a law requires, as a condition for |
13 | recording, that a document be signed, the requirement is |
14 | satisfied by an electronic signature. |
15 | (c) Notarization.--The following shall apply: |
16 | (1) A requirement that a document or a signature |
17 | associated with a document be notarized, acknowledged, |
18 | verified, witnessed or made under oath is satisfied if: |
19 | (i) The electronic signature of the person |
20 | authorized to perform that act, and all other information |
21 | required to be included, is attached to or logically |
22 | associated with the document or signature. |
23 | (ii) The act comports with the requirements of |
24 | Chapters 1, 3 and 5 of the act of December 16, 1999 |
25 | (P.L.971, No.69), known as the Electronic Transactions |
26 | Act. |
27 | (iii) With respect to notarizations, the act |
28 | comports with the requirements and procedures of the act |
29 | of August 21, 1953 (P.L.1323, No.373), known as The |
30 | Notary Public Law, pertaining to electronic notarization, |
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1 | acknowledgment and verification. |
2 | (2) A physical or electronic image of a stamp, |
3 | impression or seal need not accompany an electronic |
4 | signature. |
5 | (d) Record retention.--This act does not preclude the |
6 | Pennsylvania Historical and Museum Commission from specifying |
7 | additional requirements for retention of a record subject to the |
8 | commission's jurisdiction, including the requirement that the |
9 | recorder retain a record in a nonelectronic form. |
10 | Section 4. Recording of documents. |
11 | (a) Recorder powers and duties.-- |
12 | (1) A recorder who implements any of the functions |
13 | listed in this section shall do so in compliance with |
14 | standards established by the commission. |
15 | (2) A recorder may receive, index, store, archive and |
16 | transmit electronic documents. A recorder who accepts |
17 | electronic documents for recording shall index the documents |
18 | in compliance with standards established by the commission. |
19 | (3) A recorder may provide for access to, and for search |
20 | and retrieval of, documents and information by electronic |
21 | means. A recorder who accepts electronic documents for |
22 | recording shall continue to accept nonelectronic documents as |
23 | authorized by State law and shall place entries for both |
24 | types of documents in the same index. |
25 | (4) A recorder may convert nonelectronic paper documents |
26 | accepted for recording into electronic form. |
27 | (5) A recorder may convert into electronic form |
28 | information recorded before the recorder began to record |
29 | electronic documents. |
30 | (6) A recorder may accept electronically any fee or tax |
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1 | that the recorder is authorized to collect by any reasonable |
2 | method of payment, including electronic payment. |
3 | (7) A recorder may agree with other officials of a state |
4 | or a political subdivision of a state, or of the United |
5 | States, concerning procedures or processes to facilitate the |
6 | electronic satisfaction of prior approvals and conditions |
7 | precedent to recording and the electronic payment of fees and |
8 | taxes. |
9 | (b) No requirement.--This act does not require a recorder to |
10 | accept and record electronic documents. |
11 | (c) Jurisdiction.--Recording or causing a document to be | <-- |
12 | recorded pursuant to this act, either directly or through an |
13 | agent, shall constitute transacting business in this |
14 | Commonwealth for purposes of empowering a tribunal of this |
15 | Commonwealth to exercise personal jurisdiction over a person, |
16 | including an agent, and authorizing service of process outside |
17 | of this Commonwealth pursuant to 42 Pa.C.S. § 5322 (relating to |
18 | bases of personal jurisdiction over persons outside this |
19 | Commonwealth). |
20 | Section 5. Commission. |
21 | (a) Establishment; administration of act. |
22 | (1) The Electronic Recording Commission is established |
23 | as an administrative board within the department. The |
24 | department shall supply adequate administrative support to |
25 | the commission in accordance with section 214 of the act of |
26 | April 9, 1929 (P.L.177, No.175), known as The Administrative |
27 | Code of 1929, including personnel, office space and any other |
28 | assistance required by the commission to carry out its duties |
29 | under this act. Policy determinations regarding the |
30 | implementation of this act shall be made by the commission |
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1 | and shall not be subject to review or approval by the |
2 | department. |
3 | (2) The commission shall administer this act. |
4 | (b) Membership.--The commission shall consist of the |
5 | following members: |
6 | (1) Eight members shall be appointed as follows: |
7 | (i) The President pro tempore of the Senate shall |
8 | appoint two members. One member under this subparagraph |
9 | must be a sitting recorder serving in a county of the |
10 | first class through fourth class, and one member under |
11 | this subparagraph must be a sitting recorder serving in a |
12 | county of the fifth class through eighth class. |
13 | (ii) The Minority Leader of the Senate shall appoint |
14 | two members. One member under this subparagraph must be a |
15 | sitting recorder serving in a county of the first class |
16 | through fourth class, and one member under this |
17 | subparagraph must be a sitting recorder serving in a |
18 | county of the fifth class through eighth class. |
19 | (iii) The Speaker of the House of Representatives |
20 | shall appoint two members. One member under this |
21 | subparagraph must be a sitting recorder serving in a |
22 | county of the first class through fourth class, and one |
23 | member under this subparagraph must be a sitting recorder |
24 | serving in a county of the fifth class through eighth |
25 | class. |
26 | (iv) The Minority Leader of the House of |
27 | Representatives shall appoint two members. One member |
28 | under this subparagraph must be a sitting recorder |
29 | serving in a county of the first class through fourth |
30 | class, and one member under this subparagraph must be a |
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1 | sitting recorder serving in a county of the fifth class |
2 | through eighth class. |
3 | (2) The Governor shall appoint five members, one from |
4 | and representing each of the following entities from a |
5 | nomination list containing a minimum of four nominees |
6 | provided to the Governor by each entity, as follows: |
7 | (i) The Pennsylvania Historical and Museum |
8 | Commission. |
9 | (ii) The department. |
10 | (iii) The Pennsylvania Association of Notaries. |
11 | (iv) The Pennsylvania Land Title Association. |
12 | (v) The Pennsylvania Bankers Association. |
13 | (c) Terms.-- |
14 | (1) Except as set forth in paragraph (2), each member |
15 | shall serve a three-year term. |
16 | (2) For initial terms under subsection (b)(1), each |
17 | appointing authority shall make one appointment for a one- |
18 | year term and one appointment for a two-year term. |
19 | (d) Vacancies.--A vacancy in membership shall be filled in |
20 | the same manner as the original appointment. |
21 | (e) Chair.-- |
22 | (1) A member of the commission who is a recorder shall |
23 | annually be elected by the members of the commission to serve |
24 | as chair of the commission. |
25 | (2) A member of the commission may be elected chair of |
26 | the commission more than once. |
27 | (3) Should the chair of the commission leave the |
28 | commission or resign as chair, a member of the commission who |
29 | is a recorder shall be elected by the members of the |
30 | commission to complete the chair's annual term. |
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1 | (f) Compensation.--Members of the commission shall not |
2 | receive compensation, but shall be reimbursed for reasonable |
3 | expenses incurred in performing official duties. |
4 | (g) Department.--The department shall provide office space, |
5 | resources and personnel to assist the commission in carrying out |
6 | its responsibilities. |
7 | Section 6. Administration and standards. |
8 | (a) Standards for implementation.--The commission shall |
9 | adopt standards to implement this act in the form of |
10 | administrative regulations. This act shall not impair the |
11 | validity of electronic documents and electronic signatures |
12 | utilized prior to the effective date of the standards adopted |
13 | under this subsection, except that such electronic documents or |
14 | electronic signatures shall comport with: |
15 | (1) Chapters 1, 3 and 5 of the act of December 16, 1999 |
16 | (P.L.971, No.69), known as the Electronic Transactions Act. |
17 | (2) With respect to notarizations, the requirements and |
18 | procedures of the act of August 21, 1953 (P.L.1323, No.373), |
19 | known as The Notary Public Law, pertaining to electronic |
20 | notarization, acknowledgment and verification. |
21 | (b) Manner of formulating standards.--To keep the standards |
22 | and practices of recording offices in this Commonwealth in |
23 | harmony with the standards and practices of recording offices in |
24 | other jurisdictions that enact substantially this act and to |
25 | keep the technology used by recorders in this Commonwealth |
26 | compatible with technology used by recording offices in other |
27 | jurisdictions that enact substantially this act, the commission, |
28 | so far as is consistent with the purposes, policies and |
29 | provisions of this act, in adopting, amending and repealing |
30 | standards, shall do all of the following: |
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1 | (1) Consult with electronic recording commissions in |
2 | other states. |
3 | (2) Consider the most recent standards promulgated by |
4 | the Property Records Industry Association or any successor |
5 | organization. |
6 | (3) Consider the standards and practices of and the |
7 | technology used by the other states. |
8 | (4) Consider the views of interested persons for the |
9 | purposes of obtaining guidance and assuring uniformity. |
10 | (5) Consider the needs of counties of varying size, |
11 | population and resources. |
12 | (6) Provide for adequate information security protection |
13 | to ensure that electronic documents are accurate, authentic, |
14 | adequately preserved and resistant to tampering. |
15 | (7) Consider the need to prevent and detect fraud. | <-- |
16 | (8) Provide methods to ensure that any person submitting |
17 | electronic documents for recording is approved as a trusted |
18 | submitter by the recording office and has provided sufficient |
19 | information to enable the recording office to identify and |
20 | contact the person if necessary to correct errors and prevent |
21 | fraud. |
22 | (9) Provide methods to ensure that information is |
23 | provided in connection with recording that is adequate to |
24 | identify and serve process upon a person or any agent of a |
25 | person causing a document to be recorded so as to facilitate |
26 | the availability of remedies for the improper or fraudulent |
27 | recording of documents. |
28 | (c) Procedure.-- |
29 | (1) Initial standards under this section shall be |
30 | promulgated as temporary regulations, in accordance with the |
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1 | following: |
2 | (i) The rulemaking shall be exempt from all of the |
3 | following: |
4 | (A) Sections 201, 202, 203, 204 and 205 of the |
5 | act of July 31, 1968 (P.L.769, No.240), referred to |
6 | as the Commonwealth Documents Law. |
7 | (B) Sections 204(b) and 301(10) of the act of |
8 | October 15, 1980 (P.L.950, No.164), known as the |
9 | Commonwealth Attorneys Act. |
10 | (C) The act of June 25, 1982 (P.L.633, No.181), |
11 | known as the Regulatory Review Act. |
12 | (ii) The temporary regulations shall not be |
13 | effective for more than two years. |
14 | (2) The commission shall promulgate permanent |
15 | regulations in accordance with law. |
16 | (d) Conflict.-- |
17 | (1) The powers and duties of the following may not be |
18 | exercised in a manner which is inconsistent with the powers |
19 | and duties exercised by the commission under this section: |
20 | (i) The county and Local Government Records |
21 | Committees under the act of May 9, 1949 (P.L.908, |
22 | No.250), entitled, as amended, "An act relating to public |
23 | records of political subdivisions other than cities and |
24 | counties of the first class; authorizing the recording |
25 | and copying of documents, plats, papers and instruments |
26 | of writing by digital, photostatic, photographic, |
27 | microfilm or other process, and the admissibility thereof |
28 | and enlargements thereof in evidence; providing for the |
29 | storage of duplicates and sale of microfilm and digital |
30 | copies of official records and for the destruction of |
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1 | other records deemed valueless; and providing for the |
2 | services of the Pennsylvania Historical and Museum |
3 | Commission to political subdivisions." |
4 | (ii) An officer of a county of the first class or of |
5 | a city of the first class under the act of May 11, 1949 |
6 | (P.L.1076, No.311), entitled, as amended, "An act |
7 | authorizing the recording, copying and recopying, of |
8 | documents, plats, papers, written instruments, records |
9 | and books on file or of record, and the replacement and |
10 | certification of originals previously filed and of |
11 | record, by officers of counties of the first class and of |
12 | cities of the first class, by photostatic, photographic, |
13 | microphotographic, microfilm, or other mechanical |
14 | process; relating to the effect and use of such copies, |
15 | records, reproductions, replacements and transcripts, or |
16 | certified copies thereof; providing for a recording fee |
17 | and its use; and providing for revision of and entries to |
18 | be made on originals and copies so produced or replaced." |
19 | (2) Standards under this section shall supersede |
20 | standards, policies and procedures of the persons listed in |
21 | paragraph (1) to the extent of any inconsistency. |
22 | Section 7. Construction of act. |
23 | As far as practicable, the commission shall administer this |
24 | act so as to promote uniformity of the law with respect to its |
25 | subject matter among states that enact it. |
26 | Section 8. Relation to Electronic Signatures in Global and |
27 | National Commerce Act. |
28 | Under the authority granted by section 102 of the Electronic |
29 | Signatures in Global and National Commerce Act (Public Law |
30 | 106-229, 15 U.S.C. § 7002), this act modifies, limits and |
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1 | supersedes the Electronic Signatures in Global and National |
2 | Commerce Act but does not modify, limit or supersede section |
3 | 101(c) of the Electronic Signatures in Global and National |
4 | Commerce Act (15 U.S.C. § 7001(c)) or authorize electronic |
5 | delivery of any of the notices described in section 103(b) of |
6 | the Electronic Signatures in Global and National Commerce Act |
7 | (15 U.S.C. § 7003(b)). |
8 | Section 9. Savings provision. |
9 | Nothing in this act shall be construed to repeal any of the |
10 | following acts or parts of acts: |
11 | (1) Section 5 of the act of March 18, 1875 (P.L.32, |
12 | No.36), entitled "An act requiring recorders of deeds to |
13 | prepare and keep in their respective offices general, direct |
14 | and ad sectum indexes of deeds and mortgages recorded |
15 | therein, prescribing the duty of said recorders and declaring |
16 | that the entries in said general indexes shall be notice to |
17 | all persons." |
18 | (2) Section 10 of the act of April 1, 1909 (P.L.91, |
19 | No.53), entitled "An act relating to deeds for conveying or |
20 | releasing lands, construing words and phrases used therein, |
21 | and prescribing a form of deed and acknowledgment which may |
22 | be used for conveying or releasing lands." |
23 | (3) Section 3 of the act of April 24, 1931 (P.L.48, |
24 | No.40), entitled "An act requiring the recording of certain |
25 | written agreements pertaining to real property, and |
26 | prescribing the effect thereof as to subsequent purchasers, |
27 | mortgagees, and judgment creditors of the parties thereto." |
28 | (4) The act of January 15, 1988 (P.L.1, No.1), known as |
29 | the Uniform Parcel Identifier Law. |
30 | Section 10. Repeal. |
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1 | (a) Specific.--The following acts and parts of acts are |
2 | repealed insofar as they prohibit electronic filing of |
3 | satisfaction pieces allowed by this act: |
4 | (1) Sections 3 and 7 of the act of March 15, 1956 (1955 |
5 | P.L.1280, No.392), entitled "An act relating to the |
6 | satisfaction of mortgages in cities and counties of the first |
7 | class by the recording of a satisfaction piece, prescribing |
8 | forms therefor, and fixing the fees thereof." |
9 | (2) Section 4 of the act of July 26, 1961 (P.L.887, |
10 | No.382), entitled, as amended, "An act relating to the |
11 | satisfaction of mortgages in counties of the second, second |
12 | A, third, fourth, fifth, sixth, seventh and eighth class by |
13 | the recording of a satisfaction piece, prescribing forms |
14 | therefor, and fixing fees for the recording thereof." |
15 | (3) The act of December 9, 2002 (P.L.1530, No.197), |
16 | known as the Mortgage Satisfaction Act. |
17 | (b) General.--All acts and parts of acts are repealed |
18 | insofar as they are inconsistent with this act. |
19 | Section 11. Effective date. |
20 | This act shall take effect immediately. |
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