THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY LONGIETTI, CALTAGIRONE, CREIGHTON, FLECK, GIBBONS, HALUSKA, HENNESSEY, JOSEPHS, KOTIK, MELIO, MURPHY, MURT, SIPTROTH, SOLOBAY, WHITE, GRUCELA, DEASY, McILVAINE SMITH AND GINGRICH, MARCH 12, 2010

AS REPORTED FROM COMMITTEE ON COMMERCE, HOUSE OF REPRESENTATIVES, AS AMENDED, JUNE 15, 2010   

AN ACT

Providing for the validity of electronic documents; authorizing

county recorders of deeds to receive electronic documents as

a means for recording real property; granting powers and

duties to the county recorders of deeds; establishing the

Electronic Recording Commission; and prescribing standards of

uniformity.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Short title.

This act shall be known and may be cited as the Uniform Real

Property Electronic Recording Act.

Section 2.  Definitions.

The following words and phrases when used in this act shall

have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Commission."  The Electronic Recording Commission

established in section 5.

"Department."  The Department of Community and Economic

Development of the Commonwealth.

"Document."  Information that is:

(1)  inscribed on a tangible medium or that is stored in

an electronic or other medium and is retrievable in

perceivable form; and

(2)  eligible to be recorded in the land records

maintained by the recorder.

"Electronic."  As defined under section 103 of the act of

December 16, 1999 (P.L.971, No.69), known as the Electronic

Transactions Act.

"Electronic document."  A document that is received by the

recorder in an electronic form.

"Electronic signature."  As defined under section 103 of the

act of December 16, 1999 (P.L.971, No.69), known as the

Electronic Transactions Act.

"Nonelectronic document."  A document that is received by the

recorder in a form that is not electronic, including a document

on paper or microfilm.

"Person."  Includes any of the following:

(1)  A corporation.

(2)  A partnership.

(3)  A limited liability company.

(4)  A business trust.

(5)  An association.

(6)  A government entity, including the Commonwealth.

(7)  An estate.

(8)  A trust.

(9)  A foundation.

(10)  An individual.

"Recorder."  A county recorder of deeds, or a county official

responsible for the recordation of documents in counties without

recorders of deeds.

"State."  A state of the United States, the District of

Columbia, Puerto Rico, the Virgin Islands or any territory or

insular possession subject to the jurisdiction of the United

States.

Section 3.  Validity of electronic documents.

(a)  Requirement for original.--If a law requires, as a

condition for recording, that a document be an original, either

on paper or another tangible medium, or be in writing, the

requirement is satisfied by an electronic document that complies

with the provisions of this act.

(b)  Signature.--If a law requires, as a condition for

recording, that a document be signed, the requirement is

satisfied by an electronic signature.

(c)  Notarization.--The following shall apply:

(1)  A requirement that a document or a signature

associated with a document be notarized, acknowledged,

verified, witnessed or made under oath is satisfied if:

(i)  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.

(ii)  The act comports with the requirements of

Chapters 1, 3 and 5 of the act of December 16, 1999

(P.L.971, No.69), known as the Electronic Transactions

Act.

(iii)  With respect to notarizations, the act

comports with the requirements and procedures of the act

of August 21, 1953 (P.L.1323, No.373), known as The

Notary Public Law, pertaining to electronic notarization,

acknowledgment and verification.

(2)  A physical or electronic image of a stamp,

impression or seal need not accompany an electronic

signature.

(d)  Record retention.--This act does not preclude the

Pennsylvania Historical and Museum Commission from specifying

additional requirements for retention of a record subject to the

commission's jurisdiction, including the requirement that the

recorder retain a record in a nonelectronic form.

Section 4.  Recording of documents.

(a)  Recorder powers and duties.--

(1)  A recorder who implements any of the functions

listed in this section shall do so in compliance with

standards established by the commission.

(2)  A recorder may receive, index, store, archive and

transmit electronic documents. A recorder who accepts

electronic documents for recording shall index the documents

in compliance with standards established by the commission.

(3)  A recorder may provide for access to, and for search

and retrieval of, documents and information by electronic

means. A recorder who accepts electronic documents for

recording shall continue to accept nonelectronic documents as

authorized by State law and shall place entries for both

types of documents in the same index.

(4)  A recorder may convert nonelectronic paper documents

accepted for recording into electronic form.

(5)  A recorder may convert into electronic form

information recorded before the recorder began to record

electronic documents.

(6)  A recorder may accept electronically any fee or tax

that the recorder is authorized to collect by any reasonable

method of payment, including electronic payment.

(7)  A recorder may agree with other officials of a state

or a political subdivision of a state, or of the United

States, concerning procedures or processes to facilitate the

electronic satisfaction of prior approvals and conditions

precedent to recording and the electronic payment of fees and

taxes.

(b)  No requirement.--This act does not require a recorder to

accept and record electronic documents.

Section 5.  Commission.

(a)  Establishment; administration of act.

(1)  The Electronic Recording Commission is established

as an administrative board within the department. The

department shall supply adequate administrative support to

the commission in accordance with section 214 of the act of

April 9, 1929 (P.L.177, No.175), known as The Administrative

Code of 1929, including personnel, office space and any other

assistance required by the commission to carry out its duties

under this act. Policy determinations regarding the

implementation of this act shall be made by the commission

and shall not be subject to review or approval by the

department.

(2)  The commission shall administer this act.

(b)  Membership.--The commission shall consist of the

following members:

(1)  Eight members shall be appointed as follows:

(i)  The President pro tempore of the Senate shall

appoint two members. One member under this subparagraph

must be a sitting recorder serving in a county of the

first class through fourth class, and one member under

this subparagraph must be a sitting recorder serving in a

county of the fifth class through eighth class.

(ii)  The Minority Leader of the Senate shall appoint

two members. One member under this subparagraph must be a

sitting recorder serving in a county of the first class

through fourth class, and one member under this

subparagraph must be a sitting recorder serving in a

county of the fifth class through eighth class.

(iii)  The Speaker of the House of Representatives

shall appoint two members. One member under this

subparagraph must be a sitting recorder serving in a

county of the first class through fourth class, and one

member under this subparagraph must be a sitting recorder

serving in a county of the fifth class through eighth

class.

(iv)  The Minority Leader of the House of

Representatives shall appoint two members. One member

under this subparagraph must be a sitting recorder

serving in a county of the first class through fourth

class, and one member under this subparagraph must be a

sitting recorder serving in a county of the fifth class

through eighth class.

(2)  The Governor shall appoint five members, one from

and representing each of the following entities from a

nomination list containing a minimum of four nominees

provided to the Governor by each entity, as follows:

(i)  The Pennsylvania Historical and Museum

Commission.

(ii)  The Department of State.

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(ii) (iii)  The Pennsylvania Association of Notaries.

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(iii) (iv)  The Pennsylvania Land Title Association.

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(iv) (v)  The Pennsylvania Bankers Association.

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(v)  The county records committee established in

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section 1 of the act of August 14, 1963 (P.L.839,

No.407), entitled "An act entitled, as amended, 'An act

creating a county records committee; imposing powers and

duties upon it; authorizing the Pennsylvania Historical

and Museum Commission to assist and cooperate with it;

defining county records; and authorizing the disposition

of certain county records by county officers in counties

of the second to eighth class.'"

(c)  Terms.--

(1)  Except as set forth in paragraph (2), each member

shall serve a three-year term.

(2)  For initial terms under subsection (b)(1), each

appointing authority shall make one appointment for a one-

year term and one appointment for a two-year term.

(d)  Vacancies.--A vacancy in membership shall be filled in

the same manner as the original appointment.

(e)  Chair.--

(1)  A member of the commission who is a recorder shall

annually be elected by the members of the commission to serve

as chair of the commission.

(2)  A member of the commission may be elected chair of

the commission more than once.

(3)  Should the chair of the commission leave the

commission or resign as chair, a member of the commission who

is a recorder shall be elected by the members of the

commission to complete the chair's annual term.

(f)  Compensation.--Members of the commission shall not

receive compensation, but shall be reimbursed for reasonable

expenses incurred in performing official duties.

(g)  Department.--The department shall provide office space,

resources and personnel to assist the commission in carrying out

its responsibilities.

Section 6.  Administration and standards.

(a)  Standards for implementation.--The commission shall

adopt standards to implement this act in the form of

administrative regulations. This act shall not impair the

validity of electronic documents and electronic signatures

utilized prior to the effective date of the standards adopted

under this subsection, except that such electronic documents or

electronic signatures shall comport with:

(1)  Chapters 1, 3 and 5 of the act of December 16, 1999

(P.L.971, No.69), known as the Electronic Transactions Act.

(2)  With respect to notarizations, the requirements and

procedures of the act of August 21, 1953 (P.L.1323, No.373),

known as The Notary Public Law, pertaining to electronic

notarization, acknowledgment and verification.

(b)  Manner of formulating standards.--To keep the standards

and practices of recording offices in this Commonwealth 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 recorders in this Commonwealth

compatible with technology used by recording offices in other

jurisdictions that enact substantially this act, the commission,

so far as is consistent with the purposes, policies and

provisions of this act, in adopting, amending and repealing

standards, shall do all of the following:

(1)  Consult with electronic recording commissions in

other states.

(2)  Consider the most recent standards promulgated by

the Property Records Industry Association or any successor

organization.

(3)  Consider the standards and practices of and the

technology used by the other states.

(4)  Consider the views of interested persons for the

purposes of obtaining guidance and assuring uniformity.

(5)  Consider the needs of counties of varying size,

population and resources.

(6)  Provide for adequate information security protection

to ensure that electronic documents are accurate, authentic,

adequately preserved and resistant to tampering.

(c)  Procedure.--

(1)  Initial standards under this section shall be

promulgated as temporary regulations, in accordance with the

following:

(i)  The rulemaking shall be exempt from all of the

following:

(A)  Sections 201, 202, 203, 204 and 205 of the

act of July 31, 1968 (P.L.769, No.240), referred to

as the Commonwealth Documents Law.

(B)  Sections 204(b) and 301(10) of the act of

October 15, 1980 (P.L.950, No.164), known as the

Commonwealth Attorneys Act.

(C)  The act of June 25, 1982 (P.L.633, No.181),

known as the Regulatory Review Act.

(ii)  The temporary regulations shall not be

effective for more than two years.

(2)  The commission shall promulgate permanent

regulations in accordance with law.

(d)  Conflict.--

(1)  The powers and duties of the following may not be

exercised in a manner which is inconsistent with the powers

and duties exercised by the commission under this section:

(i)  The county and Local Government Records

Committees under the act of May 9, 1949 (P.L.908,

No.250), entitled, as amended, "An act relating to public

records of political subdivisions other than cities and

counties of the first class; authorizing the recording

and copying of documents, plats, papers and instruments

of writing by digital, photostatic, photographic,

microfilm or other process, and the admissibility thereof

and enlargements thereof in evidence; providing for the

storage of duplicates and sale of microfilm and digital

copies of official records and for the destruction of

other records deemed valueless; and providing for the

services of the Pennsylvania Historical and Museum

Commission to political subdivisions."

(ii)  An officer of a county of the first class or of

a city of the first class under the act of May 11, 1949

(P.L.1076, No.311), entitled, as amended, "An act

authorizing the recording, copying and recopying, of

documents, plats, papers, written instruments, records

and books on file or of record, and the replacement and

certification of originals previously filed and of

record, by officers of counties of the first class and of

cities of the first class, by photostatic, photographic,

microphotographic, microfilm, or other mechanical

process; relating to the effect and use of such copies,

records, reproductions, replacements and transcripts, or

certified copies thereof; providing for a recording fee

and its use; and providing for revision of and entries to

be made on originals and copies so produced or replaced."

(2)  Standards under this section shall supersede

standards, policies and procedures of the persons listed in

paragraph (1) to the extent of any inconsistency.

Section 7.  Construction of act.

As far as practicable, the commission shall administer this

act so as to promote uniformity of the law with respect to its

subject matter among states that enact it.

Section 8.  Relation to Electronic Signatures in Global and

National Commerce Act.

Under the authority granted by section 102 of the Electronic

Signatures in Global and National Commerce Act (Public Law

106-229, 15 U.S.C. § 7002), this act modifies, limits and

supersedes the Electronic Signatures in Global and National

Commerce Act but does not modify, limit or supersede section

101(c) of the Electronic Signatures in Global and National

Commerce Act (15 U.S.C. § 7001(c)) or authorize electronic

delivery of any of the notices described in section 103(b) of

the Electronic Signatures in Global and National Commerce Act

(15 U.S.C. § 7003(b)).

Section 9.  Savings provision.

Nothing in this act shall be construed to repeal any of the

following acts or parts of acts:

(1)  Section 5 of the act of March 18, 1875 (P.L.32,

No.36), entitled "An act requiring recorders of deeds to

prepare and keep in their respective offices general, direct

and ad sectum indexes of deeds and mortgages recorded

therein, prescribing the duty of said recorders and declaring

that the entries in said general indexes shall be notice to

all persons."

(2)  Section 10 of the act of April 1, 1909 (P.L.91,

No.53), entitled "An act relating to deeds for conveying or

releasing lands, construing words and phrases used therein,

and prescribing a form of deed and acknowledgment which may

be used for conveying or releasing lands."

(3)  Section 3 of the act of April 24, 1931 (P.L.48,

No.40), entitled "An act requiring the recording of certain

written agreements pertaining to real property, and

prescribing the effect thereof as to subsequent purchasers,

mortgagees, and judgment creditors of the parties thereto."

(4)  The act of January 15, 1988 (P.L.1, No.1), known as

the Uniform Parcel Identifier Law.

Section 10.  Repeal.

All (a)  Specific.--The following acts and parts of acts are

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repealed insofar as they prohibit electronic filing of

satisfaction pieces allowed by this act:

(1)  Sections 3 and 7 of the act of March 15, 1956 (1955

P.L.1280, No.392), entitled "An act relating to the

satisfaction of mortgages in cities and counties of the first

class by the recording of a satisfaction piece, prescribing

forms therefor, and fixing the fees thereof."

(2)  Section 4 of the act of July 26, 1961 (P.L.887,

No.382), entitled, as amended, "An act relating to the

satisfaction of mortgages in counties of the second, second

A, third, fourth, fifth, sixth, seventh and eighth class by

the recording of a satisfaction piece, prescribing forms

therefor, and fixing fees for the recording thereof."

(3)  The act of December 9, 2002 (P.L.1530, No.197),

known as the Mortgage Satisfaction Act.

(b)  General.--All acts and parts of acts are repealed

insofar as they are inconsistent with this act.

Section 11.  Effective date.

This act shall take effect immediately.