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AB-2980 Fictitious business names: county recorder: statements: blockchain technology.(2023-2024)

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Date Published: 06/04/2024 09:00 PM
AB2980:v96#DOCUMENT

Amended  IN  Senate  June 04, 2024
Amended  IN  Assembly  May 20, 2024
Amended  IN  Assembly  May 02, 2024

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill
No. 2980


Introduced by Assembly Member Low

February 16, 2024


An act to amend, repeal, and add Section 27201 of the Government Code, relating to local government. amend Section 17926 of the Business and Professions Code, relating to business.


LEGISLATIVE COUNSEL'S DIGEST


AB 2980, as amended, Low. County recorder. Fictitious business names: county recorder: statements: blockchain technology.
Existing law requires every person who regularly transacts business in California for profit under a fictitious business name to file and maintain a current fictitious business name statement. Existing law requires the county clerk to provide any person who so requests a certified copy of any statement, as defined, on file in the county clerk’s office for a fee of $2.
This bill would authorize a county clerk to, upon request, issue a statement using blockchain technology, as defined.

Existing law establishes various county offices, including the office of the recorder. Existing law requires the recorder to, among other things, accept for recordation any instrument, paper, or notice that is authorized or required to be recorded, as provided. Existing law requires the recorder to maintain various indices of specified documents and records. Existing law, the Electronic Recording Delivery Act of 2004, authorizes, among other things, a county recorder, upon approval by a resolution of the board of supervisors and system certification by the Attorney General, to establish an electronic recording delivery system for the delivery and recording of specified digitized and digital electronic records, subject to specified conditions.

This bill would authorize, until January 1, 2030, the recorder to cross-reference any property record using blockchain technology, as defined. The bill would require the county board of supervisors, before the county recorder is authorized to use blockchain technology for the purposes of these provisions, to adopt a resolution detailing findings, as specified. The bill would require any use of blockchain technology under these provisions to be consistent with applicable requirements under the Electronic Recording Delivery Act of 2004.

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NO   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 17926 of the Business and Professions Code is amended to read:

17926.
 (a) As used in this section, “statement” the following definitions apply:
(1) “Blockchain technology” means a decentralized data system, in which the data stored is mathematically verifiable, that uses distributed ledgers or databases to store specialized data.
(2) “Statement” means a fictitious business name statement, a statement of abandonment of use of fictitious business name, or a statement of withdrawal from partnership operating under fictitious business name.
(b) For a fee of two dollars ($2), the county clerk shall provide any person who so requests a certified copy of any statement on file in his or her office. the county clerk’s office. This statement may be issued, upon request, using blockchain technology.
(c) A copy of a statement, when certified as provided in subdivision (b), establishes a rebuttable presumption of all of the following:
(1) The existence of the original statement.
(2) The execution of the statement by the person by whom it purports to have been executed.
(3) The truth of the information required by Sections 17913, 17922, or 17923 that is contained in the statement.
(d) The presumptions established by subdivision (c) are presumptions affecting the burden of producing evidence.
(e) All of the provisions of this section are subject to Section 54985 of the Government Code.

SECTION 1.Section 27201 of the Government Code is amended to read:
27201.

(a)(1)(A)The recorder shall, upon payment of proper fees and taxes, accept for recordation any instrument, paper, or notice that is authorized or required by statute, or court order to be recorded, or authorized or required to be recorded by a local ordinance that relates to the recordation of any instrument, paper, or notice that relates to real property, if the instrument, paper, or notice contains sufficient information to be indexed as provided by statute, meets recording requirements of state statutes and local ordinances, and is photographically reproducible. The county recorder shall not refuse to record any instrument, paper, or notice that is authorized or required by statute, court order, or local ordinance that relates to the recordation of any instrument, paper, or notice that relates to real property to be recorded on the basis of its lack of legal sufficiency.

(B)“Photographically reproducible,” for purposes of this division, means all instruments, papers, or notices that comply with standards as recommended by the American National Standards Institute or the Association for Information and Image Management for recording of records.

(2)(A)A person of or related to the record may request that the recorder correct the information contained in an index of a record. The request shall identify the exact location of an error within a specifically identified index entry.

(B)If the person making the request provides sufficient evidence to the recorder to determine that there is an error in the index that needs to be corrected, the recorder shall correct that index entry within 30 business days of receiving the request.

(C)The corrected index entry shall be entered into the public index to reflect both the error and the correction. The recorder shall note that an index entry has been corrected in accordance with local policy.

(b)(1)Each instrument, paper, or notice shall contain an original signature or signatures, except as otherwise provided by law, or be a certified copy of the original.

(2)A facsimile signature shall be accepted on a lien recorded by a governmental agency when that facsimile signature has been officially adopted by that agency. The lien shall have noted on its face a statement to that effect. The officially adopted facsimile signature shall be provided to the county recorder by a letter from the agency. A facsimile signature shall continue to be valid until the agency notifies the county recorder that the facsimile signature has been revoked.

(c)(1)Subject to paragraphs (2) and (3), the recorder may cross-reference any property record using blockchain technology.

(2)Before a recorder may use blockchain technology for the purposes specified in paragraph (1), the county board of supervisors shall first adopt a resolution detailing findings that the use of such technology is at least as secure and privacy protective as any other electronic system of indexing a record currently used by recorders in the state.

(3)Any use of blockchain technology pursuant to this subdivision shall be consistent with applicable requirements under the Electronic Recording Delivery Act of 2004 (Article 6 (commencing with Section 27390)) and any implementing regulations adopted pursuant to that act.

(4)For purposes of this subdivision, “blockchain technology” means a decentralized data system, in which the data stored is mathematically verifiable, that uses distributed ledgers or databases to store specialized data in the permanent order of transactions recorded.

(d)(1)Each instrument, paper, or notice that is rerecorded shall be executed and acknowledged or verified as a new document, in addition to any previous execution and acknowledgment or verification, unless any of the following apply:

(A)The instrument, paper, or notice is otherwise exempted by Section 27287 or any other law.

(B)The instrument, paper, or notice is presented solely to correct a recording sequence. The intent of the parties with regard to the priority of recorded documents shall be controlling regardless of the sequence of recording by a county recorder or the sequence of recording specified in instructions given by a submitter to a county recorder. This subparagraph is declaratory of existing law, and any rerecording of documents to change the sequential numbers assigned to a document by the recorder shall not require the document to be executed and acknowledged or verified as a new document.

(C)(i)The instrument, paper, or notice is presented solely to make a minor correction with a corrective affidavit. The corrective affidavit shall satisfy all of the following:

(I)Be attached to the original recorded instrument, paper, or notice.

(II)Set out the information corrected.

(III)Be certified by the party submitting the affidavit under penalty of perjury.

(IV)Be acknowledged pursuant to Section 27287.

(ii)For purposes of this subparagraph, “minor correction” includes any of the following:

(I)An incorrect or missing address of the party to which the instrument, paper, or notice is to be returned following recording pursuant to Section 27361.6.

(II)A clarification of illegible text pursuant to Section 27361.7.

(III)An incorrect or missing printed or typed name of an individual or entity near the signature pursuant to Section 27280.5.

(IV)An incorrect or missing documentary transfer tax amount due pursuant to Section 11932 of the Revenue and Taxation Code.

(2)Each rerecorded instrument, paper, or notice shall include a cover sheet that complies with Section 27361.6 and shall state the reason for rerecording on the cover sheet.

(e)This section shall remain in effect only until January 1, 2030, and as of that date is repealed.

SEC. 2.Section 27201 is added to the Government Code, to read:
27201.

(a)(1)(A)The recorder shall, upon payment of proper fees and taxes, accept for recordation any instrument, paper, or notice that is authorized or required by statute, or court order to be recorded, or authorized or required to be recorded by a local ordinance that relates to the recordation of any instrument, paper, or notice that relates to real property, if the instrument, paper, or notice contains sufficient information to be indexed as provided by statute, meets recording requirements of state statutes and local ordinances, and is photographically reproducible. The county recorder shall not refuse to record any instrument, paper, or notice that is authorized or required by statute, court order, or local ordinance that relates to the recordation of any instrument, paper, or notice that relates to real property to be recorded on the basis of its lack of legal sufficiency.

(B)“Photographically reproducible,” for purposes of this division, means all instruments, papers, or notices that comply with standards as recommended by the American National Standards Institute or the Association for Information and Image Management for recording of records.

(2)(A)A person of or related to the record may request that the recorder correct the information contained in an index of a record. The request shall identify the exact location of an error within a specifically identified index entry.

(B)If the person making the request provides sufficient evidence to the recorder to determine that there is an error in the index that needs to be corrected, the recorder shall correct that index entry within 30 business days of receiving the request.

(C)The corrected index entry shall be entered into the public index to reflect both the error and the correction. The recorder shall note that an index entry has been corrected in accordance with local policy.

(b)(1)Each instrument, paper, or notice shall contain an original signature or signatures, except as otherwise provided by law, or be a certified copy of the original.

(2)A facsimile signature shall be accepted on a lien recorded by a governmental agency when that facsimile signature has been officially adopted by that agency. The lien shall have noted on its face a statement to that effect. The officially adopted facsimile signature shall be provided to the county recorder by a letter from the agency. A facsimile signature shall continue to be valid until the agency notifies the county recorder that the facsimile signature has been revoked.

(c)(1)Each instrument, paper, or notice that is rerecorded shall be executed and acknowledged or verified as a new document, in addition to any previous execution and acknowledgment or verification, unless any of the following apply:

(A)The instrument, paper, or notice is otherwise exempted by Section 27287 or any other law.

(B)The instrument, paper, or notice is presented solely to correct a recording sequence. The intent of the parties with regard to the priority of recorded documents shall be controlling regardless of the sequence of recording by a county recorder or the sequence of recording specified in instructions given by a submitter to a county recorder. This subparagraph is declaratory of existing law, and any rerecording of documents to change the sequential numbers assigned to a document by the recorder shall not require the document to be executed and acknowledged or verified as a new document.

(C)(i)The instrument, paper, or notice is presented solely to make a minor correction with a corrective affidavit. The corrective affidavit shall satisfy all of the following:

(I)Be attached to the original recorded instrument, paper, or notice.

(II)Set out the information corrected.

(III)Be certified by the party submitting the affidavit under penalty of perjury.

(IV)Be acknowledged pursuant to Section 27287.

(ii)For purposes of this subparagraph, “minor correction” includes any of the following:

(I)An incorrect or missing address of the party to which the instrument, paper, or notice is to be returned following recording pursuant to Section 27361.6.

(II)A clarification of illegible text pursuant to Section 27361.7.

(III)An incorrect or missing printed or typed name of an individual or entity near the signature pursuant to Section 27280.5.

(IV)An incorrect or missing documentary transfer tax amount due pursuant to Section 11932 of the Revenue and Taxation Code.

(2)Each rerecorded instrument, paper, or notice shall include a cover sheet that complies with Section 27361.6 and shall state the reason for rerecording on the cover sheet.

(d)This section shall become operative on January 1, 2030.