Bill Analysis

Legislative Service Commission

LSC Preliminary Summary

Sub. S.B. 148

126th General Assembly

(As Passed by the General Assembly)

 

Sens.      Hottinger, Grendell, Carey, Spada

Reps.     Wolpert, Domenick, McGregor, J., Bubp, Uecker, Combs, Yuko, Fende, Blessing, Calvert, Carano, Cassell, Chandler, Daniels, DeBose, Distel, Dolan, Evans, C., Evans, D., Flowers, Hughes, Key, Latta, Otterman, Patton, T., Raussen, Reidelbach, Sayre, Schneider, Seitz, Setzer, Smith, G., Smith, S., Stewart, J., Willamowski, Williams

Effective date:  *

ACT SUMMARY

·        Authorizes county recorders to use electronic or magnetic mediums for indexing and recording federal tax liens and other federal liens.

·        Authorizes county recorders to request a revision to the county's schedule of records retention and disposal in order to dispose of unnecessary paper versions of those recorded documents.

CONTENT AND OPERATION

Continuing law

In general

Under continuing law, a county recorder generally is required to keep specified documents either in six separate sets of records or two separate sets of records.  If only two sets of records are kept, one must contain everything that otherwise would be contained in the record of plats, and the other set, which is called the "official records," must contain all of the other documents required to be kept and recorded.  (R.C. 317.08(A) and (C)--not in the act.)

All instruments or memoranda of instruments entitled to record must be recorded in the proper record in the order in which they are presented for record.  The county recorder may index, keep, and record in one volume unemployment compensation liens, federal tax and other federal liens, personal tax liens, mechanic's liens, agricultural product liens, notices of liens, certificates of satisfaction or partial release of estate tax liens, discharges of recognizances, excise and franchise tax liens on corporations, broker's liens, and other specified liens.  (R.C. 317.08(B)--not in the act.)

Recording of federal liens specifically

Federal tax liens and other federal liens must be recorded in a book known as the "federal tax and other federal lien index" in alphabetical order, showing on one line the name and residence of the person named in the lien notice, the serial number or other identifying number of the notice, and the total amount of the lien.  The county recorder must file and keep all original notices in numerical order.  And, when a certificate of discharge or release of any federal lien is filed for record in the office of the county recorder in which the original notice is filed, the recorder must enter the certificate with the date of filing in the federal tax and other federal lien index on the line on which the notice so discharged or released is entered and permanently attach the original certificate of discharge or release to the original notice.  (R.C. 317.09(A).)

When the county recorder maintains all instruments in two sets of records as discussed above, the federal lien notices and certificates of discharge or release must be recorded in the "official records" (R.C. 317.09(B)).

Changes made by the act

The act authorizes the county recorder to enter federal liens in an electronic or magnetic medium known as the "federal tax and other federal lien index" as an alternative to the book format of that index.  (See COMMENT.)  If the county recorder uses any nonpaper electronic or magnetic medium specified in a provision of general law to record federal lien notices and certificates of their discharge or release (R.C. 9.01--not in the act), an "original notice" otherwise provided for in this law means the notice as originally recorded by the nonpaper electronic or magnetic medium, and the recorder, instead of permanently attaching an original certificate of discharge or release to the original notice, must otherwise clearly indicate on the original notice that it has been discharged or released by the particular certificate.  (R.C. 317.09(A) and (C).)

If such a county recorder wishes to dispose of paper versions of federal lien notices and certificates of their discharge or release that are no longer needed in that format, the act requires the recorder to request the county records commission to revise the county's schedule of records retention and disposal in accordance with continuing law to provide for the disposal of those paper records (R.C. 317.09(C)).

COMMENT

Federal law provides that a notice of federal tax lien (Form 668) generally means a paper form, but if a state permits a notice of federal tax lien to be filed by the use of an electronic or magnetic medium, Form 668 includes a Form 668 filed by the use of any electronic or magnetic medium permitted by that state (26 C.R.F. 301.6323(f)-1(d)(1) and (2)).

HISTORY

ACTION

DATE

 

 

Introduced

05-17-05

Reported, S. State & Local Gov't & Veterans Affairs

06-21-05

Passed Senate (30-2)

06-22-05

Reported, H. Local and Municipal Gov't and
Urban Revitalization


11-22-05

Re-referred to H. Local and Municipal Gov't and
Urban Revitalization


02-23-06

Re-reported, H. Local and Municipal Gov't and
Urban Revitalization


03-14-06

Passed House (94-0)

03-15-06

Senate concurred in House amendments (33-0)

03-28-06

 

 

 

06-sb148-126.doc/jc



* The Legislative Service Commission had not received formal notification of the effective date at the time this analysis was prepared.  Additionally, the analysis may not reflect action taken by the Governor.