SB0319 95TH GENERAL ASSEMBLY

LRB095 10815 AJO 31066 b

95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
SB0319

Introduced 2/7/2007, by Sen. William R. Haine

SYNOPSIS AS INTRODUCED:

New Act

Creates the Uniform Real Property Electronic Recording Act. Provides that a recorder may receive, index, store, archive, and transmit documents eligible to be recorded in the recorder's land records in the form of electronic documents, subject to certain requirements. Provides that, if a law requires a document eligible to be recorded in the recorder's land records to be an original, on paper or other tangible medium, or in writing, the requirement is satisfied by an electronic document satisfying the Act. Provides that, if a law requires that such a document be signed, the requirement is satisfied by an electronic signature. Provides that a requirement that a document or a signature be notarized, acknowledged, verified, witnessed, or made under oath is satisfied if the appropriate electronic signature and other required information is attached to or logically associated with the document or signature. Provides that the Illinois Electronic Recording Commission shall adopt standards to implement the Act. Provides specific requirements concerning recording, conversion of documents, administration, standards, and other matters.

FISCAL NOTE ACT MAY APPLY

HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning civil law.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 1. Short title. This Act may be cited as the Uniform Real Property Electronic Recording Act.

Section 2. Definitions. In this Act:

(1) "Document" means information that is:

(A) inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form; and

(B) eligible to be recorded in the land records maintained by the recorder.

(2) "Electronic" means relating to technology having electrical, digital, magnetic, wireless, optical, electromagnetic, or similar capabilities.

(3) "Electronic document" means a document that is received by the recorder in an electronic form.

(4) "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.

(5) "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.

(6) "State" means a state of the United States, the District of Columbia, Puerto Rico, the United States Virgin Islands, or any territory or insular possession subject to the jurisdiction of the United States.

Section 3. Validity of electronic documents.

(a) 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 satisfying this Act.

(b) If a law requires, as a condition for recording, that a document be signed, the requirement is satisfied by an electronic signature.

(c) 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.

Section 4. Recording of documents.

(a) In this Section, "paper document" means a document that is received by the recorder in a form that is not electronic.

(b) A recorder:

(1) who implements any of the functions listed in this Section shall do so in compliance with standards established by the Secretary of State.

(2) may receive, index, store, archive, and transmit electronic documents.

(3) may provide for access to, and for search and retrieval of, documents and information by electronic means.

(4) who accepts electronic documents for recording shall continue to accept paper documents as authorized by State law and shall place entries for both types of documents in the same index.

(5) may convert paper documents accepted for recording into electronic form.

(6) may convert into electronic form information recorded before the recorder began to record electronic documents.

(7) may accept electronically any fee or tax that the recorder is authorized to collect.

(8) may agree with other officials of a state or a political subdivision thereof, 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 and taxes.

Section 5. Illinois Electronic Recording Commission.

(a) To adopt standards to implement this Act, there is established as an autonomous entity within the Department of Financial and Professional Regulation the Illinois Electronic Recording Commission, consisting of 9 members as follows:

(1) Five members who are county recorders representative of counties of varying size, population, and resources appointed by Illinois Association of County Clerks and Recorders;

(2) One member appointed by the Illinois Land Title Association;

(3) One member who is an attorney appointed by the Illinois State Bar Association;

(4) One member of the mortgage industry appointed by the Illinois Mortgage Bankers Association; and

(5) The Secretary of Financial and Professional Regulation or the secretary's designee.

(b) In the event that any of the appointing associations above no longer represent a majority of the members of their profession, the Commission may, by a 2/3 vote, substitute a different association which represents a greater plurality of the same profession.

(c) Each appointing association shall set its own rules regarding the qualifications and process for selecting its appointees.

(d) Appointing associations are required to submit nominations in writing, to the Chairman, 15 days before the expiration of any term. If, by the first meeting of the Commission following, the association has failed to appoint a Commissioner, the Chairman shall nominate and the Commission by majority vote approve, a duly qualified member of the same profession the association represents, who shall assume the office for the full term.

(e) The Commission shall be organized under the following rules:

(1) Upon this Act becoming law, the President of the Illinois Association of County Clerks and Recorders, or his designee, shall become Acting Chairman of the Commission. Within 10 days the Acting Chairman shall solicit, in writing, appointments to the Commission by the chief officer of each of the appointing associations and the Secretary. Upon receipt of six nominations in writing, the acting Chairman shall set a time and place of the first meeting of the Commission to take place within 30 days.

(2) Within 60 days of its first meeting the Commission shall by a 2/3 vote adopt by-laws to govern its operation and elect a Chairman and other officers that it deems necessary.

(3) The Commission shall meet at least once every year with the times and places of meetings within the State of Illinois to be determined by the Chairman and approved by majority vote of the Commission.

(4) Six members of the Commission constitute a quorum.

(5) Commission members shall receive no compensation for their services but may be reimbursed for reasonable expenses directly related to their duties as Commissioners and participation at Commission meetings.

(6) Commission members shall serve terms of 3 years, which shall expire on December 1st. Three Commission members first taking office, including at least one county recorder, shall serve terms of one year and 3 years, including at least one recorder, two years, to be determined by lot. The calculation of the terms in office of the first commissioners shall begin on the first December 1st after commissioners have served at least 12 months in office. The Commission shall notify the Secretary of the name, address, and related affiliation, if any, of a Commission member within 30 days after the appointment of the member to the Commission.

(7) The Chairman shall declare a Commission member's office vacant immediately after receipt of a written resignation, death, or when a member fails to attend 3 consecutive meetings, and shall notify the appointing association of the vacancy within 10 days. The appointing association shall fill the unexpired term within 30 days or by the next meeting of the Commission, whichever is the longer time and shall notify the chairman in the manner the Commission establishes. Failing to do so, the office shall be appointed by the Chairman at the next meeting of the Commission, to be affirmed by a majority vote of the Commission members.

(f) The Illinois Electronic Recording Commission shall adopt standards to implement this Act.

(g) To keep the standards and practices of county recorders in this state in harmony with the standards and practices of recording offices in other jurisdictions that enact substantially this Act and to keep the technology used by county recorders in this state compatible with technology used by recording offices in other jurisdictions that enact substantially this Act, the Illinois Electronic Recording Commission, so far as is consistent with the purposes, policies, and provisions of this Act, in adopting, amending, and repealing standards shall consider:

(1) standards and practices of other jurisdictions;

(2) the most recent standards promulgated by national standard-setting bodies, such as the Property Records Industry Association; the views of interested persons and governmental officials and entities;

(3) the need for security protection to ensure that electronic documents are accurate, authentic, adequately preserved, and resistant to tampering.

(h) The Electronic Recording Commission shall review the statutes related to real property and the statutes related to recording real property documents and shall recommend to the legislature any changes in the statutes that the council finds necessary or advisable.

(i) The Department of Financial and Professional Regulation shall provide administrative support to the Commission, including the preparation of the agenda and minutes for Commission meetings, distribution of notices and proposed rules to Commission members, and reimbursement for expenses of Commission members.

(j) Subject to review and approval of the Commission, the Department of Financial and Professional Regulation shall promulgate by rule the standards adopted, amended, or repealed by the council under this paragraph.

Section 6. Uniformity of application and construction. 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.

Section 7. Relation to electronic signatures in Global and National Commerce Act. This Act modifies, limits, and supersedes the federal Electronic Signatures in Global and National Commerce Act (15 U.S.C. Section 7001, et seq.) but does not modify, limit, or supersede Section 101(c) of that Act (15 U.S.C. Section 7001(c)) or authorize electronic delivery of any of the notices described in Section 103(b) of that Act (15 U.S.C. Section 7003(b)).