senate Bill S2373A

Signed by Governor

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

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed by Governor
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actions

  • 19 / Jan / 2011
    • REFERRED TO ENERGY AND TELECOMMUNICATIONS
  • 01 / Mar / 2011
    • 1ST REPORT CAL.142
  • 02 / Mar / 2011
    • 2ND REPORT CAL.
  • 03 / Mar / 2011
    • ADVANCED TO THIRD READING
  • 22 / Mar / 2011
    • PASSED SENATE
  • 22 / Mar / 2011
    • DELIVERED TO ASSEMBLY
  • 22 / Mar / 2011
    • REFERRED TO GOVERNMENTAL OPERATIONS
  • 13 / Jun / 2011
    • RECALLED FROM ASSEMBLY
  • 13 / Jun / 2011
    • RETURNED TO SENATE
  • 13 / Jun / 2011
    • VOTE RECONSIDERED - RESTORED TO THIRD READING
  • 13 / Jun / 2011
    • AMENDED ON THIRD READING (T) 2373A
  • 16 / Jun / 2011
    • REPASSED SENATE
  • 16 / Jun / 2011
    • RETURNED TO ASSEMBLY
  • 16 / Jun / 2011
    • REFERRED TO JUDICIARY
  • 16 / Jun / 2011
    • SUBSTITUTED FOR A6870A
  • 16 / Jun / 2011
    • ORDERED TO THIRD READING RULES CAL.334
  • 16 / Jun / 2011
    • PASSED ASSEMBLY
  • 16 / Jun / 2011
    • RETURNED TO SENATE
  • 12 / Sep / 2011
    • DELIVERED TO GOVERNOR
  • 23 / Sep / 2011
    • SIGNED CHAP.549

Summary

Permits recording officers to require that conveyances of real property presented for recording be presented as digitized paper documents in the form of digitized images of original paper records.

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Bill Details

See Assembly Version of this Bill:
A6870A
Versions:
S2373
S2373A
Legislative Cycle:
2011-2012
Law Section:
State Technology Law
Laws Affected:
Amd §307, St Tech L; amd §§290 & 317, add §291-i, RP L
Versions Introduced in 2009-2010 Legislative Cycle:
S8318

Sponsor Memo

BILL NUMBER:S2373A

TITLE OF BILL:
An act
to amend the state technology law and
the
real property law,
in relation to permitting electronic
recording of instruments affecting real property

PURPOSE OR GENERAL IDEA OF BILL:
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.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 2373--A
    Cal. No. 142

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                            January 19, 2011
                               ___________

Introduced  by  Sens.  STEWART-COUSINS,  AVELLA,  MAZIARZ,  OPPENHEIMER,
  RITCHIE -- read twice and ordered printed,  and  when  printed  to  be
  committed  to  the  Committee  on  Energy  and  Telecommunications  --
  reported favorably from said committee, ordered to  first  and  second
  report,  ordered to a third reading, passed by Senate and delivered to
  the Assembly, recalled, vote reconsidered, restored to third  reading,
  amended  and  ordered  reprinted,  retaining its place in the order of
  third reading

AN ACT to amend the state technology law and the real property  law,  in
  relation  to  permitting electronic recording of instruments affecting
  real property

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Subdivisions 3 and 4 of section 307 of the state technology
law,  such section as renumbered by chapter 437 of the laws of 2004, are
amended to read as follows:
  3. [To any conveyance or other  instrument  recordable  under  article
nine of the real property law.
  4.]  To any other document that the electronic facilitator has specif-
ically excepted, pursuant to the rules and regulations of the electronic
facilitator, from the application of this article.
  S 2. Section 290 of the real property law, subdivision 4 as amended by
chapter 569 of the laws of 1925, subdivision 5 as amended by chapter 317
of the laws of 1943 and subdivision 6 as renumbered by  chapter  227  of
the laws of 1926, is amended to read as follows:
  S 290. Definitions; effect of article. 1. The term "real property," as
used  in  this  article, includes lands, tenements and hereditaments and
chattels real, except a lease for a term not exceeding three years.
  2. The term "purchaser" includes every person to whom  any  estate  or
interest  in real property is conveyed for a valuable consideration, and
every assignee of a mortgage, lease or other conditional estate.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07544-11-1

S. 2373--A                          2

  3. The term "conveyance" includes every written instrument,  by  which
any  estate  or interest in real property is created, transferred, mort-
gaged or assigned, or by which the title to any  real  property  may  be
affected,  including an instrument in execution of a power, although the
power  be one of revocation only, and an instrument postponing or subor-
dinating a mortgage lien; except a will, a lease for a term not  exceed-
ing  three  years,  an  executory  contract  for the sale or purchase of
lands, and an instrument containing a power to convey real  property  as
the agent or attorney for the owner of such property.
  4.  The term "recording officer" means the county clerk of the county,
except in a county having a register, where it means the register of the
county.
  5. "Recording" or "recorded" means the  entry,  at  length,  upon  the
pages of the proper record books in a plain and legible hand writing, or
in  print  or in symbols of drawing or by photographic process or partly
in writing, partly in printing, partly in symbols of drawing  or  partly
by  photographic  process  or  by  any combination of writing, printing,
drawing or photography or either or any two of them, OR BY AN ELECTRONIC
PROCESS BY WHICH A RECORD OR INSTRUMENT AFFECTING REAL  PROPERTY,  AFTER
DELIVERY  IS  INCORPORATED  INTO  THE  PUBLIC  RECORD.    "Recording" or
"recorded" also means the reproduction of instruments by  microphotogra-
phy  or  other photographic process on film which is kept in appropriate
files.
  6.  "ELECTRONIC" MEANS OF OR RELATING TO TECHNOLOGY HAVING ELECTRICAL,
DIGITAL, MAGNETIC, WIRELESS, OPTICAL, ELECTROMAGNETIC OR  SIMILAR  CAPA-
BILITIES.
  7.  "ELECTRONIC  RECORD"  MEANS INFORMATION EVIDENCING ANY ACT, TRANS-
ACTION, OCCURRENCE, EVENT OR OTHER ACTIVITY, PRODUCED OR STORED BY ELEC-
TRONIC MEANS AND CAPABLE OF BEING ACCURATELY REPRODUCED IN FORMS PERCEP-
TIBLE BY HUMAN SENSORY CAPABILITIES.
  8. "ELECTRONIC SIGNATURE" MEANS AN ELECTRONIC SOUND, SYMBOL, OR  PROC-
ESS,  ATTACHED  TO OR LOGICALLY ASSOCIATED WITH AN ELECTRONIC RECORD AND
EXECUTED OR ADOPTED BY A PERSON WITH THE INTENT TO SIGN THE RECORD.
  9. "PAPER DOCUMENT" MEANS A DOCUMENT IN A FORM THAT IS NOT ELECTRONIC.
  10.  "DIGITIZED PAPER DOCUMENT" MEANS A DIGITIZED  IMAGE  OF  A  PAPER
DOCUMENT  THAT  ACCURATELY DEPICTS THE INFORMATION ON THE PAPER DOCUMENT
IN A FORMAT THAT CANNOT BE ALTERED WITHOUT DETECTION.
  11. "WET SIGNATURE" MEANS A SIGNATURE AFFIXED  IN  INK  OR  PENCIL  OR
OTHER MATERIAL TO A PAPER DOCUMENT.
  12.  This  article  does not apply to leases for life or lives, or for
years, heretofore made, of lands in either of the  counties  of  Albany,
Ulster, Sullivan, Herkimer, Dutchess, Columbia, Delaware or Schenectady.
  S 3. The real property law is amended by adding a new section 291-i to
read as follows:
  S 291-I. VALIDITY OF ELECTRONIC RECORDING. 1.  NOTWITHSTANDING ANY LAW
TO  THE  CONTRARY,  (A)  WHERE  A LAW, RULE OR REGULATION REQUIRES, AS A
CONDITION FOR RECORDING, THAT AN INSTRUMENT AFFECTING REAL  PROPERTY  BE
AN  ORIGINAL,  BE  ON PAPER OR ANOTHER TANGIBLE MEDIUM OR BE IN WRITING,
THE REQUIREMENT IS SATISFIED BY A DIGITIZED PAPER DOCUMENT OR  AN  ELEC-
TRONIC RECORD OF SUCH INSTRUMENT;
  (B)  WHERE  A  LAW,  RULE  OR  REGULATION REQUIRES, AS A CONDITION FOR
RECORDING, THAT AN INSTRUMENT AFFECTING REAL  PROPERTY  BE  SIGNED,  THE
REQUIREMENT  IS  SATISFIED,  WHERE  THE INSTRUMENT EXISTS AS A DIGITIZED
PAPER DOCUMENT, IF THE DIGITIZED IMAGE OF A WET SIGNATURE OF THE  PERSON
EXECUTING  SUCH  INSTRUMENT APPEARS ON SUCH DIGITIZED PAPER DOCUMENT OR,

S. 2373--A                          3

WHERE THE INSTRUMENT EXISTS AS AN ELECTRONIC RECORD, IF  THE  INSTRUMENT
IS SIGNED BY USE OF AN ELECTRONIC SIGNATURE;
  (C)  WHERE  A  LAW,  RULE  OR  REGULATION  REQUIRES, AS A CONDITION OF
RECORDING, THAT AN INSTRUMENT AFFECTING REAL  PROPERTY  OR  A  SIGNATURE
ASSOCIATED WITH SUCH AN INSTRUMENT BE NOTARIZED, ACKNOWLEDGED, VERIFIED,
WITNESSED OR MADE UNDER OATH, THE SIGNATURE REQUIREMENT IS SATISFIED IF:
(I)  THE  DIGITIZED IMAGE OF A WET SIGNATURE OF THE PERSON AUTHORIZED TO
PERFORM THAT ACT AND ANY STAMP, IMPRESSION OR SEAL REQUIRED BY LAW TO BE
INCLUDED, APPEARS ON A DIGITIZED PAPER DOCUMENT OF SUCH  INSTRUMENT;  OR
(II)  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 AN ELECTRONIC RECORD OF SUCH INSTRUMENT,
PROVIDED, HOWEVER THAT NO PHYSICAL  OR  ELECTRONIC  IMAGE  OF  A  STAMP,
IMPRESSION OR SEAL SHALL BE REQUIRED TO ACCOMPANY SUCH ELECTRONIC SIGNA-
TURE.
  (D)  WHERE  A  LAW,  RULE  OR  REGULATION  REQUIRES, AS A CONDITION OF
RECORDING AN INSTRUMENT AFFECTING REAL PROPERTY, THAT  ANY  ACCOMPANYING
DOCUMENT  BE  FILED  THEREWITH,  THE REQUIREMENT IS SATISFIED IF, IN THE
CASE OF RECORDING BY ELECTRONIC MEANS, A  DIGITIZED  PAPER  DOCUMENT  OR
ELECTRONIC  RECORD OF ANY SUCH ACCOMPANYING DOCUMENT IS PRESENTED TO THE
RECORDING OFFICER AT THE SAME TIME AS SUCH  INSTRUMENT  IS  RECORDED  BY
ELECTRONIC  MEANS;  PROVIDED  THAT EACH SUCH DOCUMENT OR RECORD SHALL BE
PRESENTED TO THE RECORDING OFFICER AS A SEPARATE DIGITIZED  PAPER  DOCU-
MENT OR ELECTRONIC RECORD UNTO ITSELF.
  2.  A  DIGITIZED  PAPER DOCUMENT OR DOCUMENTS SHALL BE CREATED USING A
SOFTWARE APPLICATION OR OTHER ELECTRONIC PROCESS WHICH STORES  AN  IMAGE
OF  THE  ORIGINAL PAPER DOCUMENT OR DOCUMENTS, AND WHICH DOES NOT PERMIT
ADDITIONS, DELETIONS OR OTHER CHANGES TO  THE  DIGITIZED  IMAGE,  OR  IF
ADDITIONS,  DELETIONS  OR  CHANGES  ARE  PERMITTED, A MEDIA TRAIL EXISTS
WHICH CREATES AN ELECTRONIC RECORD WHICH MAKES IT POSSIBLE  TO  IDENTIFY
THESE CHANGES.
  3.  NOTHING  IN  THIS  SECTION  OR ANY OTHER PROVISION OF LAW SHALL BE
CONSTRUED TO REQUIRE THE RECORDING BY ELECTRONIC  MEANS  OF  INSTRUMENTS
AFFECTING  REAL PROPERTY.   THE DECISION BY EACH COUNTY CLERK TO PARTIC-
IPATE IN ELECTRONIC RECORDING IS  DISCRETIONARY.  ONCE  A  COUNTY  CLERK
PERMITS  ELECTRONIC  RECORDING,  THE COUNTY SHALL ACCEPT SUCH ELECTRONIC
RECORDINGS.
  4. WHERE ANY RECORDING  OFFICER  PERMITS  INSTRUMENTS  AFFECTING  REAL
PROPERTY AND ANY ACCOMPANYING DOCUMENTS TO BE PRESENTED FOR RECORDING OR
FILING  AS  DIGITIZED  PAPER DOCUMENTS OR ELECTRONIC RECORDS PURSUANT TO
THIS SECTION, SUCH RECORDING BY ELECTRONIC MEANS SHALL BE IN  ACCORDANCE
WITH THE RULES AND REGULATIONS ESTABLISHED BY THE ELECTRONIC FACILITATOR
PURSUANT TO SUBDIVISION FIVE OF THIS SECTION.
  5.  IN  ORDER TO ENSURE CONSISTENCY IN THE STANDARDS AND PRACTICES OF,
AND THE TECHNOLOGY USED BY RECORDING OFFICERS IN THE  STATE,  THE  ELEC-
TRONIC  FACILITATOR,  AS DESCRIBED IN SECTION THREE HUNDRED THREE OF THE
STATE TECHNOLOGY LAW, SHALL, CONSISTENT WITH THE PROVISIONS  OF  ARTICLE
THREE OF THE STATE TECHNOLOGY LAW, PROMULGATE RULES AND REGULATIONS, AND
AMENDMENTS  THERETO,  AS APPROPRIATE GOVERNING THE USE AND ACCEPTANCE OF
DIGITIZED PAPER DOCUMENTS, ELECTRONIC RECORDS AND ELECTRONIC  SIGNATURES
UNDER  THIS  ARTICLE.    SUCH  AUTHORITY SHALL ADDRESS AND BE LIMITED TO
STANDARDS REQUIRING ADEQUATE INFORMATION SECURITY PROTECTION  TO  ENSURE
THAT ELECTRONIC RECORDS OF INSTRUMENTS AFFECTING REAL PROPERTY DOCUMENTS
ARE  ACCURATE,  AUTHENTIC, ADEQUATELY PRESERVED FOR LONG-TERM ELECTRONIC
STORAGE AND RESISTANT TO TAMPERING. WHEN PROMULGATING  RULES  AND  REGU-
LATIONS, THE ELECTRONIC FACILITATOR MAY TAKE INTO CONSIDERATION: (A) THE

S. 2373--A                          4

MOST  RECENT  STANDARDS  PROMULGATED BY NATIONAL STANDARD-SETTING BODIES
SUCH AS, WITHOUT LIMITATION, THE PROPERTY RECORDS INDUSTRY  ASSOCIATION;
(B) THE VIEWS OF INTERESTED PERSONS AND GOVERNMENTAL OFFICIALS AND ENTI-
TIES,  INCLUDING  BUT  NOT  LIMITED  TO RECORDING OFFICERS AND REPRESEN-
TATIVES OF THE STATE TITLE, LEGAL AND BANKING INDUSTRIES;  AND  (C)  THE
NEEDS OF COUNTIES OF VARYING SIZE, POPULATION, AND RESOURCES.
  6. NOTHING CONTAINED IN THIS SECTION SHALL BE CONSTRUED TO AUTHORIZE A
RECORDING  OFFICER  TO  FURNISH DIGITIZED PAPER DOCUMENTS OF THE REPORTS
REQUIRED BY SECTION FIVE HUNDRED SEVENTY-FOUR OF THE REAL  PROPERTY  TAX
LAW.  SUCH REPORTS SHALL BE FURNISHED AS PAPER DOCUMENTS WITH THE REQUI-
SITE NOTATIONS THEREON, EXCEPT WHERE THE STATE BOARD  OF  REAL  PROPERTY
SERVICES  HAS  AGREED  TO ACCEPT DATA SUBMISSIONS IN LIEU THEREOF OR HAS
PROVIDED FOR THE ELECTRONIC TRANSMISSION OF SUCH DATA PURSUANT TO LAW.
  S 4. Section 317 of the real  property  law  is  amended  to  read  as
follows:
  S  317. Order of recording. Every instrument, entitled to be recorded,
must be recorded by the recording officer in the order  and  as  of  the
time of its delivery to him OR HER therefor, DURING BUSINESS HOURS MAIN-
TAINED  BY  THE  RECORDING  OFFICER, and is considered recorded from the
time of such delivery; PROVIDED, HOWEVER, THAT A DIGITIZED  PAPER  DOCU-
MENT  OR AN ELECTRONIC RECORD SHALL BE CONSIDERED DELIVERED FOR PURPOSES
OF THIS SECTION AT THE DATE AND TIME OF RECEIPT INDICATED  ON  AN  ELEC-
TRONIC  OR  OTHER  WRITTEN  NOTIFICATION  WHICH SHALL BE PROVIDED BY THE
RECORDING OFFICER IMMEDIATELY UPON RECEIPT OF A DIGITIZED PAPER DOCUMENT
OR ELECTRONIC RECORD.
  S 5. This act shall take effect on the three hundred  sixty-fifth  day
after  it shall have become a law; provided, however that the electronic
facilitator shall be authorized to promulgate rules, regulations, guide-
lines, standards and policies to  effectuate  this  act  prior  to  such
effective date.

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