Bill Summary – FastDemocracy

SECOND REGULAR SESSION
                        HOUSE BILL NO. 2103
                               103RD GENERAL ASSEMBLY


                               INTRODUCED BY REPRESENTATIVE AMATO.

     4097H.03I                                                                    JOSEPH ENGLER, Chief Clerk


                                                AN ACT
     To repeal sections 59.120, 59.568, 486.735, 570.095, and 578.700, RSMo, and to enact in lieu
            thereof five new sections relating to protections against document fraud, with penalty
            provisions.


     Be it enacted by the General Assembly of the state of Missouri, as follows:

             Section A. Sections 59.120, 59.568, 486.735, 570.095, and 578.700, RSMo, are
 repealed and five new sections enacted in lieu thereof, to be known as sections 59.120,
 59.568, 486.735, 570.095, and 578.700, to read as follows:
             59.120. 1. The recorder shall keep [his] the recorder's office at the seat of justice,
 and the county commission shall provide the same with suitable books, in which the recorder
 shall record all instruments of writing authorized and required to be recorded. If there is no
 courthouse or other suitable county building at the seat of justice, the county commission
 shall provide an office for the recorder at any other place in the county where there is a
 courthouse and courts of record are held.
         2. Each recorder shall display in the recorder's office in a place visible to the
 public a printed sign with the following text in all capital letters of at least one inch in
 height: "WARNING: THE OFFENSE OF FILING FALSE DOCUMENTS IS A
 FELONY UNDER MISSOURI LAW (RSMO 570.095) WITH PENALTIES THAT
 MAY INCLUDE JAIL OR PRISON TIME AND FINANCIAL RESTITUTION.".
             59.568. 1. If a statute, regulation, or ordinance requires, as a condition for recording,
 that a document be an original, be on paper or another tangible medium, or be in writing, the
 requirement is satisfied by an electronic record that otherwise complies with the requirements
 of this chapter.

     EXPLANATION — Matter enclosed in bold-faced brackets [thus] in the above bill is not enacted and is
     intended to be omitted from the law. Matter in bold-face type in the above bill is proposed language.
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         2. A requirement that a document or a signature associated with a document be
 notarized, acknowledged, verified, witnessed, or made under oath is satisfied if the electronic
 signature of the person authorized to perform that act, and all other information required to be
 included, is attached to or logically associated with the document or signature. A physical or
 electronic image of a stamp, impression, or seal need not accompany an electronic signature if
 the notary public has attached an electronic notarial certificate that meets the requirements of
 this chapter.
         3. A document submitted to a recorder of deeds for electronic recording shall not
 be altered or modified from its original size or to add or remove any text or images from
 the document. The individual submitting the document shall transmit only scanned
 images of original ink-signed documents or submit original documents that have been
 created, signed, and notarized electronically with the electronic indexing information.
         4. Subsections 1 and 2 of this section shall only apply to documents presented to a
 recorder of deeds for recordings pursuant to chapter 442 or 443.
             486.735. 1. A vendor or manufacturer shall register with the secretary prior to selling
 or manufacturing notary seals. The secretary shall maintain an internet site for the purpose of
 allowing vendors and manufacturers to confirm the current standing of any notary in the state.
         2. A vendor or manufacturer shall not provide a notary seal to a purchaser claiming to
 be a notary, unless the purchaser presents a notary commission issued by the secretary, and
 unless:
         (1) In the case of a purchaser appearing in person, the vendor or manufacturer
 identifies this individual as the person named in the commission, through either personal
 knowledge or satisfactory evidence of identity; or
         (2) In the case of a purchaser ordering a seal by mail or delivery service, the vendor or
 manufacturer confirms the notary's standing as a commissioned notary through the internet
 site.
         3. For each commission, a vendor or manufacturer shall make or sell only one seal
 and, if requested by the person presenting the commission, only one embossing seal.
         4. After manufacturing or providing a notary seal, the vendor shall affix an image of
 all seals on a form as prescribed by the secretary and, within seven business days, send the
 completed form to the secretary, retaining a copy of the form and the commission for a period
 of five years.
         5. A notary obtaining a seal as a result of a name change shall present a copy of the
 confirmation of notary's name or address change from the secretary in accordance with
 sections 486.780 and 486.785.
         6. A vendor or manufacturer who fails to comply with this section shall be subject to a
 fine of [one] ten thousand dollars for each violation. For multiple violations, a vendor's
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permission to sell or manufacture notary seals may be withdrawn by the secretary. Such
violation shall not preclude the civil liability of the vendor to parties injured by the vendor's
failure to comply with this section.
            570.095. 1. A person commits the offense of filing false documents if:
        (1) With the intent to defraud, deceive, harass, alarm, or negatively impact
financially, or in such a manner reasonably calculated to deceive, defraud, harass, alarm, or
negatively impact financially, he or she files, causes to be filed or recorded, or attempts to file
or record, creates, uses as genuine, transfers or has transferred, presents, or prepares with
knowledge or belief that it will be filed, presented, recorded, or transferred to the secretary of
state or the secretary's designee, to the recorder of deeds of any county or city not within a
county or the recorder's designee, to any municipal, county, district, or state government
entity, division, agency, or office, or to any credit bureau or financial institution any of the
following types of documents:
        (a) Common law lien;
        (b) Uniform commercial code filing or record;
        (c) Real property recording;
        (d) Financing statement;
        (e) Contract;
        (f) Warranty, special, or quitclaim deed;
        (g) Quiet title claim or action;
        (h) Deed in lieu of foreclosure;
        (i) Legal affidavit;
        (j) Legal process;
        (k) Legal summons;
        (l) Bills and due bills;
        (m) Criminal charging documents or materially false criminal charging documents;
        (n) Any other document not stated in this subdivision that is related to real property;
or
        (o) Any state, county, district, federal, municipal, credit bureau, or financial
institution form or document; and
        (2) Such document listed under subdivision (1) of this subsection contains materially
false information; is fraudulent; is a forgery, as [defined] described under section 570.090;
lacks the consent of all parties listed in a document that requires mutual consent; or is invalid
under Missouri law.
        2. Filing false documents under this section is a class [D] C felony for the first
offense except the following circumstances shall be a class [C] B felony:
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         (1) The defendant has been previously found guilty or pleaded guilty to a violation of
 this section;
         (2) The victim or named party in the matter:
         (a) Is an official elected to municipal, county, district, federal, or statewide office;
         (b) Is an official appointed to municipal, county, district, federal, or statewide office;
 or
         (c) Is an employee of an official elected or appointed to municipal, county, district,
 federal, or statewide office;
         (3) The victim or named party in the matter is a judge or magistrate of:
         (a) Any court or division of the court in this or any other state or an employee thereof;
 or
         (b) Any court system of the United States or is an employee thereof;
         (4) The victim or named party in the matter is a full-time, part-time, or reserve or
 auxiliary peace officer, as defined under section 590.010, who is licensed in this state or any
 other state;
         (5) The victim or named party in the matter is a full-time, part-time, or volunteer
 firefighter in this state or any other state;
         (6) The victim or named party in the matter is an officer of federal job class 1811 who
 is empowered to enforce United States laws;
         (7) The victim or named party in the matter is a law enforcement officer of the United
 States as defined under 5 U.S.C. Section 8401(17)(A) or (D);
         (8) The victim or named party in the matter is an employee of any law enforcement or
 legal prosecution agency in this state, any other state, or the United States;
         (9) The victim or named party in the matter is an employee of a federal agency that
 has agents or officers of job class 1811 who are empowered to enforce United States laws or
 is an employee of a federal agency that has law enforcement officers as defined under 5
 U.S.C. Section 8401(17)(A) or (D); or
         (10) The victim or named party in the matter is an officer of the railroad police as
 [defined] authorized under section 388.600.
         3. For a penalty enhancement as described under subsection 2 of this section to apply,
 the occupation of the victim or named party shall be material to the subject matter of the
 document or documents filed or the relief sought by the document or documents filed, and the
 occupation of the victim or named party shall be materially connected to the apparent reason
 that the victim has been named, victimized, or involved. For purposes of subsection 2 of this
 section and this subsection, a person who has retired or resigned from any agency, institution,
 or occupation listed under subsection 2 of this section shall be considered the same as a
 HB 2103                                              5

 person who remains in employment and shall also include the following family members of a
 person listed under subdivisions (2) to (9) of subsection 2 of this section:
         (1) Such person's spouse;
         (2) Such person or such person's spouse's ancestor or descendant by blood or
 adoption; or
         (3) Such person's stepchild while the marriage creating that relationship exists.
         4. Any person who pleads guilty or is found guilty under subsections 1 to 3 of this
 section shall be ordered by the court to make full restitution to any person or entity that has
 sustained actual losses or costs as a result of the actions of the defendants. Such restitution
 shall not be paid in lieu of jail or prison time but rather in addition to any jail or prison time
 imposed by the court.
         5. (1) Nothing in this section shall limit the power of the state to investigate, charge,
 or punish any person for any conduct that constitutes a crime by any other statute of this state
 or the United States.
         (2) No receiving entity shall be required under this section to retain the filing or
 record for prosecution under this section. A filing or record being rejected by the receiving
 entity shall not be used as an affirmative defense.
         6. (1) Any agency of the state, a county, or a city not within a county that is
 responsible for or receives document filings or records, including county recorders of deeds
 and the secretary of state's office, shall, by January 1, 2019, impose a system in which the
 documents that have been submitted to the receiving agency, or those filings rejected by the
 secretary of state under its legal authority, are logged or noted in a ledger, spreadsheet, or
 similar recording method if the filing or recording officer or employee believes the filings or
 records appear to be fraudulent or contain suspicious language. The receiving agency shall
 make noted documents available for review by:
         (a) The jurisdictional prosecuting or circuit attorney or such attorney's designee;
         (b) The county sheriff or the sheriff's designee;
         (c) The police chief of a county or city not within a county or such chief's designee; or
         (d) A commissioned peace officer as defined under section 590.010.
 99
 Review of such documents is permissible for the agent or agencies under this subdivision
 without the need of a grand jury subpoena or court order. No fees or monetary charges shall
 be levied on the investigative agents or agencies for review of documents noted in the ledger
 or spreadsheet. The ledger or spreadsheet and its contents shall be retained by the agency that
 controls entries into such ledger or spreadsheet for a minimum of three years from the earliest
 entry listed in the ledger or spreadsheet.
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          (2) The receiving entity shall, upon receipt of a filing or record that has been noted as
 a suspicious filing or record, notify the chief law enforcement officer or such officer's
 designee of the county and the prosecutor or the prosecutor's designee of the county of the
 filing's or record's existence. Such notification shall be made within two business days of the
 filing or record having been received. Notification may be accomplished via email or via
 paper memorandum.
          (3) No agency receiving the filing or record shall be required under this section to
 notify the person conducting the filing or record that the filing or record is entered as a logged
 or noted filing or record.
          (4) Reviews to ensure compliance with the provisions of this section shall be the
 responsibility of any commissioned peace officer. Findings of noncompliance shall be
 reported to the jurisdictional prosecuting or circuit attorney or such attorney's designee by any
 commissioned peace officer who has probable cause to believe that the noncompliance has
 taken place purposely, knowingly, recklessly, or with criminal negligence, as described under
 section 562.016.
          7. To petition for a judicial review of a filing or record that is believed to be
 fraudulent, false, misleading, forged, or contains materially false information, a petitioner
 may file a probable cause statement that delineates the basis for the belief that the filing or
 record is materially false, contains materially false information, is a forgery, is fraudulent, or
 is misleading. This probable cause statement shall be filed in the associate or circuit court of
 the county in which the original filing or record was transferred, received, or recorded.
          8. A filed petition under this section shall have an initial hearing date within twenty
 business days of the date the petition is filed with the court. A court ruling of invalid shall be
 evidence that the original filing or record was not accurate, true, or correct. A court ruling of
 invalid shall be retained or recorded at the original receiving entity. The receiving entity shall
 waive all filing or recording fees associated with the filing or recording of the court ruling
 document in this subsection. Such ruling may be forwarded to credit bureaus or other
 institutions at the request of the petitioner via motion to the applicable court at no additional
 cost to the petitioner.
          9. If a filing or record is deemed invalid, court costs and fees are the responsibility of
 the party who originally initiated the filing or record. If the filing or record is deemed valid,
 no court costs or fees, in addition to standard filing fees, shall be assessed.
          10. (1) An owner of an interest in real property that has been subject to a filing
 or record that is believed to be fraudulent, false, misleading, or forged or that contains
 materially false information may petition for a judicial review under subsections 7, 8,
 and 9 of this section.
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       (2) A county recorder of deeds may post information on such petition process in
the recorder's office and online.
            578.700. 1. For purposes of this section, all definitions from section 486.600 shall
apply.
       2. In performing a notarial act, a notary shall be guilty of:
       (1) A class E felony for executing a false notarial certificate under subsection 1 of
section 486.660; or
       (2) A misdemeanor, punishable upon conviction by a fine not exceeding five hundred
dollars or imprisonment for not more than six months, or both, for knowingly:
       [(1)] (a) Failing to require the presence of a principal at the time of a notarial act; or
       [(2)] (b) Failing to identify a principal through personal knowledge or satisfactory
evidence[; or
       (3) Executing a false notarial certificate under subsection 1 of section 486.660].
       3. A notary who knowingly performs any other act prohibited by chapter 486 or fails
to perform any other act required by chapter 486 shall be guilty of a misdemeanor, punishable
upon conviction by a fine not exceeding five hundred dollars or imprisonment for not more
than six months, or both.
       4. Any person who is not a notary and who knowingly acts as or otherwise
impersonates a notary shall be guilty of a [misdemeanor, punishable upon conviction by a fine
not exceeding five hundred dollars or imprisonment for not more than six months, or both]
class E felony.
       5. Any person who knowingly obtains, conceals, defaces, or destroys the seal,
journal, or official records of a notary shall be guilty of a [misdemeanor, punishable upon
conviction by a fine not exceeding five hundred dollars] class E felony.
       6. Any person who knowingly solicits, coerces, or in any way influences a notary to
commit official misconduct shall be guilty of a [misdemeanor, punishable upon conviction by
a fine not exceeding five hundred dollars] class E felony.
       7. Any person who knowingly obtains, conceals, damages, or destroys the coding,
disk, certificate, card, token, program, software, or hardware that is intended exclusively to
enable an electronic notary public to produce a registered electronic signature, notary seal, or
single element combining the required features of an electronic signature and notary seal,
shall be guilty of a [misdemeanor, punishable upon conviction by a fine not exceeding five
hundred dollars or imprisonment for not more than six months, or both] class E f