senate Bill S2373A

Signed By Governor
2011-2012 Legislative Session

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

download bill text pdf

Sponsored By

Archive: Last Bill Status - Signed by Governor


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

do you support this bill?

Actions

view actions (20)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Sep 23, 2011 signed chap.549
Sep 12, 2011 delivered to governor
Jun 16, 2011 returned to senate
passed assembly
ordered to third reading rules cal.334
substituted for a6870a
referred to judiciary
returned to assembly
repassed senate
Jun 13, 2011 amended on third reading (t) 2373a
vote reconsidered - restored to third reading
Jun 13, 2011 returned to senate
recalled from assembly
Mar 22, 2011 referred to governmental operations
delivered to assembly
passed senate
Mar 03, 2011 advanced to third reading
Mar 02, 2011 2nd report cal.
Mar 01, 2011 1st report cal.142
Jan 19, 2011 referred to energy and telecommunications

Votes

view votes

Mar 1, 2011 - Energy and Telecommunications committee Vote

S2373
9
0
committee
9
Aye
0
Nay
3
Aye with Reservations
0
Absent
0
Excused
0
Abstained
show committee vote details

Committee Vote: Mar 1, 2011

aye wr (3)

Bill Amendments

Original
A (Active)
Original
A (Active)

Co-Sponsors

S2373 - Bill Details

See Assembly Version of this Bill:
A6870A
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 Session:
S8318

S2373 - Bill Texts

view 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.

view sponsor memo
BILL NUMBER:S2373

TITLE OF BILL:

An act
to amend the state technology law,
the
real property law and the civil practice law and rules,
in relation to permitting electronic
recording of instruments affecting real property

PURPOSE OR GENERAL IDEA OF BILL:

The fundamental purpose of this bill is to clarify the authorization
for real property records official to accept records in electronic
form, storing electronic records, and setting up systems for search
for and retrieving these real property records. This bill modernizes
the real estate transaction process.

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 germs 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 29l-i
that would confirm the validity of digitized paper documents,
electronic records, electronic signatures and electronic
notarization, as follows:

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

o RPL Section 291-1 (2) would provide a form for a Certification as to
Authenticity of digitized paper documents presented for recording or
filing.

o RPL Section 291-1 (3) would authorize recording officers to receive,
index, store, archive, transmit and provide access to electronic
records, and to convert paper documents into electronic documents.

o RPL Section 291-1 (4) would provide that nothing in RPL Section
291-1 shall be construed to require electronic recording, but the
governing body of a county may by local law authorize its recording
officer to require electronic recording of instruments affecting real
property. A recording officer so authorized would be required to
provide for the waiver of such requirement in accordance with the


rules and standards promulgated by the State Office for Technology
(OFT) as provided in RPL Section 291-1 (6).

o RPL Section 291·1 (5) would provide that where any recording officer
permits or requires electronic recording pursuant to RPL Section
291-1, it must be in accordance with the rules, regulations,
guidelines, standards, and policies established by OFT>

o RPL Section 291-1 (6) would provide that to ensure consistency in
the practices and technology used by county clerks in the State, OFT
would promulgate rules, regulations, guidelines, standards and
policies as appropriate, governing the use and acceptance of digitized
paper documents, electronic records, and electronic signatures under
RPL Article 9.

o RPL Section 291-1 (7) 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 ORPS 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.

Section 5 of this bill would amend CPLR Section 8021 (a) (4) (a) (I),
to provide that no fee would be charged for a page transmitted for
recording that contains the Certification as to Authentication of
Digitized Paper Documents Presented for Recording or filing required
pursuant to RPL Section 291·1 (2).

Section 6 of the bill makes it effective 270 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, ebusinesses. 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 an 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.

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 270 days after it becomes a law.

view full text
download pdf
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  2373

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                            January 19, 2011
                               ___________

Introduced  by  Sen.  STEWART-COUSINS -- read twice and ordered printed,
  and when printed to be committed to the Committee on Energy and  Tele-
  communications

AN  ACT to amend the state technology law, the real property law and the
  civil practice law and rules, 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.
  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-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07544-01-1

S. 2373                             2

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,
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:

S. 2373                             3

(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)  A  RECORDING  OFFICER  MAY  RECORD A DIGITIZED PAPER DOCUMENT
PURSUANT TO THIS SECTION IF SUCH DOCUMENT IS AFFIRMED AS A  TRUE,  ACCU-
RATE  AND  COMPLETE COPY OF THE ORIGINAL PAPER DOCUMENT. THE AFFIRMATION
CONCERNING SUCH DIGITIZED PAPER DOCUMENT SHALL BE MADE BY THE  CUSTODIAN
OF THE ORIGINAL PAPER DOCUMENT AND THE SIGNATURE OF THAT PERSON SHALL BE
ACKNOWLEDGED  IN ACCORDANCE WITH THE APPLICABLE PROVISIONS OF THIS ARTI-
CLE GOVERNING ACKNOWLEDGEMENT OR PROOF OF A CONVEYANCE OF REAL PROPERTY.
THE AFFIRMATION SHALL BE TRANSMITTED WITH SUCH DIGITIZED PAPER  DOCUMENT
AND SHALL BE RECORDED BY THE RECORDING OFFICER AS A PART OF THE DOCUMENT
BEING RECORDED. THE AFFIRMATION CONCERNING SUCH DIGITIZED PAPER DOCUMENT
MUST  CONFORM  SUBSTANTIALLY  WITH  THE FOLLOWING FORM, THE BLANKS BEING
PROPERLY FILLED:

     AFFIRMATION CONCERNING DIGITIZED PAPER DOCUMENTS PRESENTED FOR
                                RECORDING
STATE OF NEW YORK)
              SS:
COUNTY OF _______)
I                  HEREBY AFFIRM, THAT THE DIGITIZED  PAPER  DOCUMENT(S)
PRESENTED HEREWITH WAS (WERE) CREATED BY A SOFTWARE APPLICATION OR OTHER
ELECTRONIC  PROCESS WHICH STORES AN IMAGE OF THE ORIGINAL PAPER DOCUMENT
AND WHICH DOES NOT PERMIT ADDITIONS, DELETIONS, OR CHANGES TO THE  DIGI-
TIZED  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.  I AFFIRM THAT I HAVE PERSONALLY
EXAMINED ALL PAGES OF THE ORIGINAL PAPER DOCUMENT(S) WHICH CONTAIN(S)  A
WET  SIGNATURE  AND  COMPARED  THEM  TO ALL PAGES OF THE DIGITIZED PAPER
DOCUMENT PRESENTED HEREWITH FOR RECORDING  AND  THE  ATTACHED  DIGITIZED
PAPER DOCUMENT IS A TRUE, ACCURATE, AND COMPLETE ELECTRONIC IMAGE OF THE
ORIGINAL PAPER DOCUMENT. I FURTHER AFFIRM THAT EACH SIGNATURE OR MARK ON
THE ORIGINAL PAPER DOCUMENT IS A WET SIGNATURE OR MARK.
SUBSCRIBED AND AFFIRMED, UNDER THE PENALTY OF PERJURY,
by ________________________ on _________________________
   PRINT NAME OF AFFIRMANT          INSERT DATE
___________________________
SIGNATURE OF AFFIRMANT
  ON  THE  _____  DAY  OF ______ IN THE YEAR ______ BEFORE ME PERSONALLY
APPEARED __________________, TO MAKE  THIS  AFFIRMATION  CONCERNING  THE

S. 2373                             4

DIGITIZED  PAPER  DOCUMENT  PRESENTED  FOR RECORDING AND/OR FILING, WITH
WHOM I AM PERSONALLY ACQUAINTED, WHO, BEING BY ME FIRST DULY SWORN,  DID
DEPOSE  AND  SAY  THAT  HE/SHE RESIDES IN ____________________; AND THAT
HE/SHE  IS  THE  INDIVIDUAL  DESCRIBED IN AND WHO EXECUTED THE FOREGOING
AFFIRMATION CONCERNING DIGITIZED PAPER DOCUMENTS PRESENTED FOR RECORDING
OR FILING.
(SIGNATURE OF NOTARY)
  (B) FOR PURPOSES OF THIS SUBDIVISION,  A  CUSTODIAN  OF  THE  ORIGINAL
PAPER  DOCUMENTS  WHO MAKES THE AFFIRMATION REQUIRED BY THIS SUBDIVISION
SHALL NOT BE REQUIRED TO KEEP, HOLD OR MAINTAIN SUCH DOCUMENTS AFTER THE
DATE ON WHICH THE DIGITIZED PAPER DOCUMENTS OF SUCH ORIGINAL PAPER DOCU-
MENTS ARE RECORDED OR FILED.
  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.
  4. WHERE ANY RECORDING OFFICER PERMITS OR REQUIRES INSTRUMENTS AFFECT-
ING 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, REGULATIONS, GUIDELINES, STANDARDS AND  POLI-
CIES  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, REGULATIONS, GUIDE-
LINES, STANDARDS AND POLICIES, AND AMENDMENTS  THERETO,  AS  APPROPRIATE
GOVERNING THE USE AND ACCEPTANCE OF DIGITIZED PAPER DOCUMENTS, ELECTRON-
IC  RECORDS  AND  ELECTRONIC  SIGNATURES UNDER THIS ARTICLE, TAKING INTO
CONSIDERATION: (A) THE 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  ENTITIES,  INCLUDING  BUT  NOT  LIMITED TO
RECORDING OFFICERS AND REPRESENTATIVES OF THE  STATE  TITLE,  LEGAL  AND
BANKING INDUSTRIES; AND (C) THE NEEDS OF COUNTIES OF VARYING SIZE, POPU-
LATION, AND RESOURCES. SUCH PROMULGATION SHALL INCLUDE BUT NOT BE LIMIT-
ED  TO  STANDARDS  REQUIRING ADEQUATE INFORMATION SECURITY PROTECTION TO
ENSURE THAT ELECTRONIC RECORDS OF INSTRUMENTS  AFFECTING  REAL  PROPERTY
DOCUMENTS ARE ACCURATE, AUTHENTIC, ADEQUATELY PRESERVED AND RESISTANT TO
TAMPERING.
  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, and is considered recorded
from the time of such delivery;  PROVIDED,  HOWEVER,  THAT  A  DIGITIZED
PAPER DOCUMENT OR AN ELECTRONIC RECORD SHALL BE CONSIDERED DELIVERED FOR
PURPOSES OF THIS SECTION AT THE DATE AND TIME OF RECEIPT INDICATED ON AN

S. 2373                             5

ELECTRONIC  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.  Clause 1 of subparagraph a of paragraph 4 of subdivision (a) of
section 8021 of the civil practice law and rules, as amended by  chapter
288 of the laws of 2008, is amended to read as follows:
  (1)  For  recording, entering, indexing and endorsing a certificate on
any instrument, five dollars, and, in addition  thereto,  three  dollars
for  each page or portion of a page, and fifty cents for each additional
town, city, block or other indices in which such  instrument  is  to  be
indexed  as  directed by the endorsement thereon. On the assignment of a
mortgage which assigns more than one mortgage or on a release  of  lease
which  releases  more  than one lease, then there shall be an additional
fee of three dollars for every mortgage assigned or  lease  released  in
excess  of one. PROVIDED, HOWEVER, THAT THERE SHALL BE NO FEE FOR A PAGE
TRANSMITTED FOR RECORDING OR FILING THAT CONTAINS ONLY THE CERTIFICATION
AS TO AUTHENTICITY OF DIGITIZED PAPER DOCUMENTS PRESENTED FOR  RECORDING
OR   FILING   PURSUANT   TO  SUBDIVISION  TWO  OF  SECTION  TWO  HUNDRED
NINETY-ONE-I OF THE REAL PROPERTY LAW.
  S 6. This act shall take effect on  the  two  hundred  seventieth  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.

Co-Sponsors

S2373A (ACTIVE) - Bill Details

See Assembly Version of this Bill:
A6870A
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 Session:
S8318

S2373A (ACTIVE) - Bill Texts

view 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.

view 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 full text
download pdf
                    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.

Comments

Open Legislation comments facilitate discussion of New York State legislation. All comments are subject to moderation. Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity or hate speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Comment moderation is generally performed Monday through Friday.

By contributing or voting you agree to the Terms of Participation and verify you are over 13.