AN ACT ESTABLISHING AN ELECTRONIC RECORDING COMMISSION.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. (NEW) (Effective from passage) As used in this section and section 2 of this act:

(1) "State real property electronic recording system" means a state-wide real property electronic recording system, consisting of information, data bases, hardware, software and all components of each town electronic recording system.

(2) "Document" means any instrument, in either electronic or paper form, that creates, transfers, asserts or explains an interest in real estate, including a deed, patent, mortgage, will, lien instrument, grant of easement, affidavit, court order or decree, notice, order of fence viewers and any other instrument that affects an interest in real estate.

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

(4) "Electronic document" means a document created by electronic means.

(5) "Electronic signature" means an electronic sound, symbol or process, attached to or logically associated with an electronic document and executed or adopted by a person with the intent to sign the electronic document.

(6) "Paper document" means a document printed in paper form.

(7) "Town electronic recording system" means any real property electronic recording system that may be maintained by a town in this state, consisting of information, data bases, hardware, software and all components of such system.

Sec. 2. (NEW) (Effective from passage) (a) There is established an Electronic Recording Commission, which shall be within the State Library for administrative purposes only. The commission shall consist of:

(1) The Secretary of the State, or a designee;

(2) The Chief Information Officer of the Department of Information Technology, or a designee;

(3) The Public Records Administrator, or a designee;

(4) A member of the real property section of the Connecticut Bar Association, appointed by the speaker of the House of Representatives;

(5) A town clerk representing the Connecticut Town Clerk's Association, appointed by the president pro tempore of the Senate;

(6) A representative of a title insurance company, appointed by the minority leader of the House of Representatives; and

(7) A representative of the mortgage banking industry, appointed by the minority leader of the Senate.

(b) The members initially appointed under subdivisions (4) and (7) of subsection (a) of this section shall serve for a term of two years from July 1, 2005, and the members subsequently appointed under said subdivisions (4) and (7) shall serve for terms of three years from July first in the year of their appointment. The members appointed under subdivisions (5) and (6) of subsection (a) of this section shall serve for terms of three years from July first in the year of their appointment. Initial appointments under subdivisions (4) to (7), inclusive, of subsection (a) of this section shall be made not later than sixty days after the effective date of this section. Vacancies on the commission shall be filled by the appointing authority. The commission shall elect a chairperson and a vice-chairperson from among its members. Members of the commission shall serve without compensation but shall, within the limits of available funds, be reimbursed for expenses necessarily incurred in the performance of their duties.

(c) The Electronic Recording Commission shall submit recommendations to the General Assembly for standards to be used in the development, implementation and operation of a state real property electronic recording system. Such recommended standards shall set forth:

(1) The manner and format in which an electronic document shall be submitted, received, returned, stored and retrieved, and specifications for the systems established for such purposes;

(2) The type of electronic signature required, the manner, format and technological processes in which an electronic signature shall be affixed to an electronic document, the manner, format and technological processes for certifying authorities for such electronic signatures, and the identity of, or criteria that shall be met by, any third party used by town clerks to facilitate the process of affixing electronic signatures and filing electronic documents. Such formats and technological processes shall be capable of assuring that (A) the party indicated to have signed an electronic document is the party who actually signed the electronic document, and (B) the electronic document and its electronic signature have been electronically sealed to protect the document and signature from being changed after execution;

(3) Processes and procedures to ensure (A) adequate preservation, disposition, integrity, security and confidentiality of electronic documents, and (B) the ability to adequately audit electronic documents;

(4) Any other attributes for electronic documents that are required by law for corresponding paper documents or reasonably necessary for the purpose of filing such electronic documents;

(5) The manner and format in which an electronic version of a paper document shall be created;

(6) Qualifications for town clerks and other authorized persons entering information into a state real property electronic recording system, and procedures for the commission's determination as to whether such qualifications are met;

(7) The procedure for payment of recording fees required under section 7-34a of the general statutes by electronic funds transfer;

(8) The procedure for searching for real estate information in a state real property electronic recording system;

(9) Any such fee schedule for remote access searches for real estate information in a state real property electronic recording system as the commission may establish, and procedures for the collection and allocation of any such fees by and among town clerks; and

(10) Any other requirements or procedures necessary for the development, implementation or operation of a state real property electronic recording system.