h_lg_2016a_2016-04-06t13:33:13z0 Hearing Summary

Date: 04/06/2016

01:33 PM -- SB16-115



Representative Moreno and Representative Conti presented and summarized Senate Bill 16-115 concerning electronic recording technology board. The bill creates the Electronic Recording Technology Board (board) in the Secretary of State's office (SOS) as a Type 1 transfer. The nine-member board is established as an enterprise and is authorized to issue revenue bonds. The board repeals in September 1, 2022, pending a sunset review. The board is authorized to impose a surcharge of up to $2 on all documents that a clerk and recorder retains for recording or filing between January 1, 2017, and December 31, 2021. If imposed, counties are required to collect the surcharge on behalf of the board and transmit it to the State Treasurer for deposit in the newly created Electronic Recording Technology Fund (fund). Revenue in the fund is TABOR-exempt and continuously appropriated to the board to be used for the following:

• developing a strategic plan that incorporates the core goals of security, accuracy, sequencing, online public access, standardization, and preservation of public records;

• determining functionality standards for an electronic filing system that support the core goals;

• issuing a request for proposal for electronic filing system equipment and software that will be available to counties on an optional basis;

• developing best practices for an electronic filing system; providing training to clerk and recorders related to electronic filing systems; and

• making grants to counties to establish, maintain, improve, or replace electronic filing systems for documents that are recorded with a clerk and recorder.

The board is required to give priority for grants to rural counties and counties that do not have sufficient revenue from the surcharge proceeds to maintain their existing electronic filing systems. The bill repeals the SOS's power to ensure uniformity related to electronic filing systems and grants these powers to the board. The board is required to prepare an annual report that is published online about the grants that the board made in the prior fiscal year and also to report to the General Assembly before January 1, 2021, about the overall success of the grant program. The bill also extends the $1 surcharge that a clerk and recorder is currently required to collect and use for the county's core or electronic filing system until December 31, 2026. This surcharge was set to repeal June 30, 2017.



Representatives Moreno and Conti answered questions from the committee regarding the Electronic Recording Technology Board and the services provided. They also discussed why the program is an enterprise.



The committee continued to discuss the fees collected and the designation of the program as an enterprise.



01:45 PM -- Charles Calvin, the Colorado Bar Association, spoke in favor of the bill. He discussed the issues with current recording technology systems.



Mr. Calvin answered questions from the committee regarding obsolete systems.



Mr. Calvin continued to answer questions from the committee regarding state administered programs regarding recording technology.



01:56 PM -- Debra Johnson, County Clerk and Recorder for the City and County of Denver, spoke in favor of the bill. She discussed the recording process for local governments and the current status of technology systems.



02:03 PM -- Pam Anderson, Colorado County Clerks Association, spoke in favor of the bill. She answered a question from the committee regarding privacy capability for recording technology systems. Ms. Anderson discussed the standardization of recording systems.



Ms. Johnson and Ms. Anderson answered a question from the committee regarding upgrades to recording technology systems.



02:11 PM -- Don Booher, Land Title Association of Colorado, spoke in favor of the bill. He discussed the current process and procedures for recording documents with a county.



02:18 PM -- Mike Rosser, Colorado Mortgage Lenders Association, spoke in favor of the bill.



02:20 PM -- Tim Griesmer, Colorado Secretary of State's Office, spoke in favor of the bill.



Representative Conti and Representative Moreno answered questions from the committee regarding the classification of the program as an enterprise fund.



Mr. Griesmer answered a question from the committee regarding existing oversight and funding mechanisms of recording technology systems. He also answered a question regarding the bonding authority.



Representative Moreno answered a question from the committee regarding standard language concerning enterprise funds. Representative Conti discussed the approval process for issuing bonds.



02:31 PM -- Erin Reynolds, Legislative Council Staff, discussed Senate amendments and changes made to the bill. She answered questions from the committee regarding the appropriations made in the provisions of the bill.



02:33 PM -- Ed DeCecco, Office of Legislative Legal Services, answered previous questions from the committee regarding enterprise status.



Representative Conti and Representative Moreno provided closing comments on the bill.



The committee members provided closing comments on the bill.