AB591: Bill Text

LRB-2983/1

RJM&PJD:kmg:rs

2003 - 2004 LEGISLATURE

2003 Assembly BILL 591

October 15, 2003 - Introduced by Representatives F. Lasee, Kerkman, M. Lehman, Seratti, Hahn, Hundertmark, Ladwig, McCormick, Olsen, Hines, Kestell, Weber, Van Roy, Townsend, Bies, LeMahieu, Gunderson and Vrakas, cosponsored by Senators Cowles, Roessler, Wirch, Lassa and Breske. Referred to Committee on Financial Institutions.

AB591,1,9 An Act to repeal 59.43 (1) (um), 409.528, 409.528 (1) (title), 409.528 (2) and 779.97 (4) (d); to renumber 409.528 (1); to amend 59.43 (1) (L), 59.43 (1) (m), (n) and (o), 134.17 (4), 185.42 (2), 409.523 (3) (intro.), 779.97 (4) (a) 2., 779.97 (4) (b) 1., 779.97 (4) (c) 2. and 779.97 (4) (e); to repeal and recreate 59.43 (2) (ag), 59.43 (2) (ag), 59.43 (2) (e), 59.43 (2) (e), 59.72 (5), 59.72 (5) and 779.97 (5) (a); to create 59.43 (1) (um) and 409.519 (9) of the statutes; and to affect 1997 Wisconsin Act 27, section 9456 (3m); relating to: recording and filing documents with the offices of register of deeds and the Department of Financial Institutions.

Analysis by the Legislative Reference Bureau

This bill makes the following changes regarding the recording and filing of documents with the offices of registers of deeds and the Department of Financial Institutions:

1. Requires documents pertaining to security interests that are filed with the offices of registers of deeds to meet most of the format and legibility standards for documents recorded with those offices.

2. Requires documents pertaining to security interests and certain other records that are filed with the offices of registers of deeds to be indexed in the real estate records index, rather than other separate indexes.

3. Clarifies which documents are recorded and which are filed with the offices of registers of deeds, and which are filed with the Department of Financial Institutions. The bill also clarifies which fees apply to which documents.

4. Provides that only the Department of Financial Institutions, not the offices of registers of deeds, when assigning a file number for a document pertaining to security interests, must include a digit that is mathematically derived from or related to the other digits of the file number and aids the filing office in determining whether a number communicated as the file number includes a single-digit or transpositional error.

5. Provides that only the Department of Financial Institutions, not the offices of registers of deeds, is required to provide results of searches of its records for financing statements filed in its filing system.

6. Eliminates the requirement that the Department of Financial Institutions and the offices of registers of deeds enter all information regarding filings under the provisions of the Uniform Commercial Code relating to security interests into the statewide lien system.

7. Eliminates, effective July 1, 2010, the requirement that the statewide lien system be maintained.

8. Makes changes to the current law dealing with the filing of notices of federal tax liens and related documents to make the duties of the registers of deeds with regard to federal tax liens consistent with their duties with regard to other documents filed or recorded with their offices.

For further information see the state and local fiscal estimate, which will be printed as an appendix to this bill.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

AB591, s. 1 Section 1. 59.43 (1) (L) of the statutes is amended to read:

AB591,3,12 59.43 (1) (L) File all documents pertaining to security interests, as defined in s. 401.201 (37) (a), that are required or authorized by law to be filed with the register. Except as otherwise prescribed by the department of financial institutions under subch. V of ch. 409, these documents shall be executed on white or light colored sheets of paper, 8 or 8.5 inches wide and 5, 7, 10.5, or 14 inches long. Whenever there is offered for filing any document that varies more than one-eighth inch from the approved size, or that is not on a standard form prescribed by ch. 409 or by the department of financial institutions, then in addition to the regular filing fee an additional filing fee shall be charged by the register of deeds, as prescribed by sub. (2). No assignment, release, or other instrument shall be offered for filing that is executed or endorsed on any other document, but each shall be a separate and distinct document, except those assignments or notices that are printed or written on and immediately following the original agreement or financing statement, offered for filing at the same time, shall be considered as one document. All of these documents shall be legibly written, and shall have the names of the debtor and secured party plainly printed or typed on the document and shall provide a space for filing data of the register of deeds on the outside of the document in a manner that satisfies the requirements set forth in sub. (2m) (b) 1. to 5.

AB591, s. 2 Section 2. 59.43 (1) (m), (n) and (o) of the statutes are amended to read:

AB591,3,17 59.43 (1) (m) Except as otherwise provided in subchs. V and VII of ch. 409, keep Keep these chattel documents in consecutive numerical arrangement, for the inspection of all persons, endorsing on each document the document number and the date and time of reception.

AB591,4,5 (n) Upon the filing of a financing statement or other document evidencing the creation of a security interest, as defined in s. 401.201 (37) (a), required to be filed or recorded with the register under s. 409.501 (1) (a), enter the name of each debtor alphabetically in indexes, of which each page shall be divided into columns which shall contain the following information: number of the document, date and time of filing, name and address of debtor, name and address of secured party, name of the document, the amount if any, shown in the document, brief description of property, and the last column set aside for the entry of assignments, continuation statements, termination statements, foreclosure affidavits, extensions and releases pertaining to such financing statements or chattel security documents. If the financing statement evidences the creation of a security interest in fixtures, it also shall be entered in the tract index if one is kept in the county index the statement or document in the real estate records index under sub. (9).

AB591,4,13 (o) Except as otherwise provided in subch. V of ch. 409, upon Upon the filing of an assignment, continuation statement, termination statement, foreclosure affidavit, extension, or release pertaining to a filed financing statement or other chattel security document, enter the document number and the date and time of filing in the appropriate column of the indexes referred to in par. (n) and on the same line as that on which the entry of the filed financing statement or other chattel security document appears index the document in the real estate records index under sub. (9).

AB591, s. 3 Section 3. 59.43 (1) (um) of the statutes is created to read:

AB591,4,17 59.43 (1) (um) Submit that portion of recording and filing fees collected under sub. (2) (ag) 1. or (e) and not retained by the county to the land information board under s. 59.72 (5).

AB591, s. 4 Section 4. 59.43 (1) (um) of the statutes, as created by 2003 Wisconsin Act .... (this act), is repealed.

AB591, s. 5 Section 5 . 59.43 (2) (ag) of the statutes is repealed and recreated to read:

AB591,4,24 59.43 (2) (ag) 1. Subject to s. 59.72 (5), for recording any instrument entitled to be recorded in the office of register of deeds, $11 for the first page and $2 for each additional page, except that no fee may be collected for recording a change of address that is exempt from a filing fee under s. 185.83 (1) (b).

AB591,5,2 2. In the event of conflict in the statutes regarding recording fees, subd. 1. shall control.

AB591, s. 6 Section 6 . 59.43 (2) (ag) of the statutes, as affected by 2003 Wisconsin Act .... (this act), is repealed and recreated to read:

AB591,5,10 59.43 (2) (ag) 1. For recording any instrument entitled to be recorded in the office of register of deeds, $8 for the first page if the county maintains a land information office under s. 59.72 (3) and $4 for the first page if the county does not maintain such an office, and $2 for each additional page, except that no fee may be collected for recording a change of address that is exempt from a filing fee under s. 185.83 (1) (b).

AB591,5,12 2. In the event of conflict in the statutes regarding recording fees, subd. 1. shall control.

AB591, s. 7 Section 7. 59.43 (2) (e) of the statutes is repealed and recreated to read:

AB591,5,16 59.43 (2) (e) Subject to s. 59.72 (5), for filing any instrument which is entitled to be filed in the office of register of deeds and for which no other specific fee is specified, $11 for the first page and $2 for each additional page.

AB591, s. 8 Section 8 . 59.43 (2) (e) of the statutes, as affected by 2003 Wisconsin Act .... (this act), is repealed and recreated to read:

AB591,5,22 59.43 (2) (e) For filing any instrument which is entitled to be filed in the office of register of deeds and for which no other specific fee is specified, $8 for the first page if the county maintains a land information office under s. 59.72 (3) and $4 for the first page if the county does not maintain such an office, and $2 for each additional page.

AB591, s. 9 Section 9. 59.72 (5) of the statutes, as affected by 1997 Wisconsin Act 27, is repealed and recreated to read:

AB591,6,4 59.72 (5) Land record modernization funding. (a) Before the 16th day of each month a register of deeds shall submit to the land information board $7 from the fee for recording or filing the first page of each instrument that is recorded or filed under s. 59.43 (2) (ag) 1. or (e), less any amount retained by the county under par. (b).

AB591,6,7 (b) A county may retain $5 of the $7 submitted under par. (a) from the fee for recording or filing the first page of each instrument that is recorded or filed under s. 59.43 (2) (ag) 1. or (e) if all of the following conditions are met:

AB591,6,8 1. The county has established a land information office under sub. (3).

AB591,6,11 2. A land information office has been established for less than 2 years or has received approval for a countywide plan for land records modernization under sub. (3) (b).

AB591,6,17 3. The county uses $4 of each $5 fee retained under this paragraph to develop, implement, and maintain the countywide plan for land records modernization, and $1 of each $5 fee retained under this paragraph to develop and maintain a computerized indexing of the county's land information records relating to housing, including the housing element of the county's land use plan under s. 66.1001 (2) (b), in a manner that would allow for greater public access through use of the Internet.

AB591, s. 10 Section 10 . 59.72 (5) of the statutes, as affected by 2003 Wisconsin Act .... (this act), is repealed and recreated to read:

AB591,6,23 59.72 (5) Land record modernization funding. A county that establishes a land information office shall use $4 of the $8 per page received under s. 59.43 (2) (ag) 1. and (e) to develop, implement, and maintain a countywide plan for land records modernization.

AB591, s. 11 Section 11. 134.17 (4) of the statutes is amended to read:

AB591,7,2 134.17 (4) For each recording, the register of deeds shall receive the fee specified for filing recording under s. 59.43 (2) (ag).

AB591, s. 12 Section 12. 185.42 (2) of the statutes is amended to read: