Pursuant to § 30-10-423 and the rulemaking provisions of the State Administrative Procedures Act, § 24-4-103, C.R.S., I, Donetta Davidson, Colorado Secretary of State, do hereby adopt and give NOTICE of the permanent adoption this 9th day of December, 2002, of the "Rules Concerning the Electronic Recording Technology Grant Program", which are attached hereto.

Donetta Davidson
Colorado Secretary of State

Signed
William A. Hobbs
Deputy Colorado Secretary of State

Statements of Basis, Purpose and Specific Statutory Authority

Office of the Secretary of State

Rules Concerning the Electronic Recording Technology Grant Program

Basis and Purpose

These rules are adopted to implement the provisions of Section 30-10-421, C.R.S., requiring each county clerk and recorder to collect a one dollar surcharge for each document received for recording or filing in his or her office. The county clerk and recorder must then transmit fifty cents out of each dollar collected to the Secretary of State who shall credit the same to the Clerk and Recorder Electronic Filing Technology Fund. There are no current rules regarding the implementation of the Clerk and Recorder Electronic Filing Technology Fund.

Rule 1:

The purpose of new Rule 1, Rules Concerning the Electronic Recording Technology Grant Program, is to prescribe the mechanism for the transmittal of such surcharge from the county clerks and recorders and the Office of the Secretary of State.

The purpose of new Rule 1.1 is to clarify which documents are subject to the surcharge.

The purpose of new Rule 1.2 is to require monthly reporting of the accounting of all amounts collected by the county clerk and recorder during the preceding month to the Secretary of State, on a form so prescribed.

The purpose of new Rule 1.3 is to establish quarterly reporting of an accounting of all amounts retained by the county clerk and recorder during the preceding quarter pursuant to the $1.00 filing surcharge imposed pursuant to section 30-10-421, C.R.S., together with a description of how this money was spent in the preceding quarter.

Statutory Authority

The Secretary of State shall promulgate rules concerning the Electronic Recording Technology Grant Program pursuant to section 30-10-423, C.R.S.

Rules Concerning the Electronic Recording Technology Grant Program

Section 1 - Document filing surcharge.

1.1 Scope of Documents Subject to Surcharge. County clerk and recorders will collect the $1.00 filing surcharge on every real estate document filed for recording in the office of the county clerk and recorder and every miscellaneous document filed for recording in such office for which a fee is charged. County clerks and recorders will not collect the $1.00 filing surcharge on any motor vehicle certificate of title or mortgage thereon.

1.2 Monthly Reporting. No later than the 20th of each month, each county clerk and recorder shall transmit to the Secretary of State, on a form prescribed by the Secretary of State, an accounting of all amounts collected by the county clerk and recorder during the preceding calendar month pursuant to the $1.00 filing surcharge imposed pursuant to section 30-10-421, C.R.S., together with payment of the amount to be credited to the clerk and recorder electronic filing technology fund.

1.3 Quarterly Reporting. No later than the 20th of April, July, October, and January, each county clerk and recorder shall transmit to the Secretary of State, on a form prescribed by the Secretary of State, an accounting of all amounts retained by the county clerk and recorder during the preceding quarter pursuant to the $1.00 filing surcharge imposed pursuant to section 30-10-421, C.R.S., together with a description of what this surcharge was spent on during the preceding quarter.

Section 2 - Electronic recording technology grants. (Reserved)