Kentucky 2022 2022 Regular Session

Kentucky Senate Bill SB135 Engrossed / Bill

                    UNOFFICIAL COPY  	22 RS SB 135/GA 
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AN ACT relating to county clerks. 1 
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2 
SECTION 1.   A NEW SECTION OF KRS CHAPTER 67 IS CREATED TO 3 
READ AS FOLLOWS: 4 
(1) As used in this section: 5 
(a) "Recorded instrument" means any document relating to real property, 6 
personal property, and any property for which a Kentucky certificate of title 7 
has been issued, including but not limited to deeds and mortgages; and 8 
(b) "Portal" means a Web site or online database that: 9 
1. Is readily accessible by the public to provide remote online access to 10 
recorded instruments; 11 
2. Has a network security device that monitors incoming and outgoing 12 
network traffic and determines whether to allow or block specific 13 
traffic based on a defined set of security rules; and 14 
3. Has a system which provides for backup copies of recorded 15 
instruments to be securely stored. 16 
(2) By June 30, 2023, all county clerks shall provide and maintain the portal that 17 
allows a person to electronically file any recorded instrument. 18 
(3) (a) By June 30, 2024, each county clerk shall provide and maintain a portal 19 
that contains the following recorded instruments: 20 
1. Filed on or after June 30, 1994: 21 
a. Deeds; 22 
b. Mortgages; 23 
c. Fixture filings under the Uniform Commercial Code: 24 
d. Plats of subdivided property; 25 
e. All covenants, conditions, and restrictions that relate to real 26 
property; 27  UNOFFICIAL COPY  	22 RS SB 135/GA 
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f. Easements; 1 
g. Leases or memorandum of leases; 2 
h. Powers of attorney; 3 
i. Land contracts; 4 
j. Wills; and 5 
k. Affidavits that affect or clarify the title to property; 6 
2. Filed on or after June 30, 2004, child support liens; 7 
3. Filed on or after June 30, 2009; 8 
a. Judgment liens; 9 
b. Recoupment and unemployment liens; and 10 
c. Lis pendens notices; 11 
4. Filed on or after June 30, 2014; 12 
a. Federal and state tax liens; and 13 
b. Civil penalty liens; 14 
5. Filed on or after June 30, 2019; 15 
a. Homeowner's association or condominium liens; and 16 
b. Bail bonds. 17 
(b) By June 30, 2026, each county clerk shall provide and maintain a portal 18 
that contains the following recorded instruments filed on or after June 30, 19 
1966, but before June 30, 1994: 20 
1. Deeds; 21 
2. Mortgages; 22 
3. Fixture filings under the Uniform Commercial Code: 23 
4. Plats of subdivided property; 24 
5. All covenants, conditions, and restrictions that relate to real property; 25 
6. Easements; 26 
7. Leases or memorandum of leases; 27  UNOFFICIAL COPY  	22 RS SB 135/GA 
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8. Powers of attorney; 1 
9. Land contracts; 2 
10. Wills; and 3 
11. Affidavits that affect or clarify the title to property. 4 
(4) (a) Any fee charged by the county clerk for access to electronic copies of 5 
recorded instruments shall not exceed the actual cost of providing and 6 
maintaining the portal. 7 
(b) If a county clerk contracts with an outside vendor to provide and maintain a 8 
portal required under this section, actual costs may include: 9 
1. Development and maintenance of a portal that provides access to 10 
recorded instruments; 11 
2. Personnel costs for companies that employ staff to support county 12 
clerks; 13 
3. Maintenance of cybersecurity credentials; and 14 
4. Insurance premiums. 15 
(5) A county clerk may redact Social Security numbers from electronic copies of 16 
recorded instruments and other personal information from recorded instruments 17 
upon request from a law enforcement agency or judicial officer. 18 
Section 2.   KRS 64.012 is amended to read as follows: 19 
(1) The county clerk shall receive for the following services the following fees: 20 
(a) 1. Recording and indexing of a: 21 
a. Deed of trust or assignment for the benefit of creditors; 22 
b. Deed; 23 
c. Deed of assignment; 24 
d. File-stamped copy of documents set forth in KRS 14A.2-040(1) or 25 
(2) that have been filed first with the Secretary of State; 26 
e. Real estate option; 27  UNOFFICIAL COPY  	22 RS SB 135/GA 
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f. Power of attorney; 1 
g. Revocation of power of attorney; 2 
h. Lease which is recordable by law; 3 
i. Deed of release of a mortgage or lien under KRS 382.360; 4 
j. United States lien; 5 
k. Release of a United States lien; 6 
l. Release of any recorded encumbrance other than state liens; 7 
m. Lis pendens notice concerning proceedings in bankruptcy; 8 
n. Lis pendens notice; 9 
o. Mechanic's and artisan's lien under KRS Chapter 376; 10 
p. Assumed name; 11 
q. Notice of lien issued by the Internal Revenue Service; 12 
r. Notice of lien discharge issued by the Internal Revenue Service; 13 
s. Original, assignment, amendment, or continuation financing 14 
statement; 15 
t. Making a record for the establishment of a city, recording the plan 16 
or plat thereof, and all other service incident; 17 
u. Survey of a city, or any part thereof, or any addition to or 18 
extensions of the boundary of a city; 19 
v. Recording with statutory authority for which no specific fee is set, 20 
except a military discharge; 21 
w. Will or other probate document pursuant to KRS Chapter 392 or 22 
394; 23 
x. Court ordered name change pursuant to KRS Chapter 401; 24 
y. Land use restriction according to KRS 100.3681; and 25 
z. Filing with statutory authority for which no specific fee is set. 26 
 For all items in this subsection if the entire thereof does not exceed 27  UNOFFICIAL COPY  	22 RS SB 135/GA 
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 five (5) pages  .........................................................................$33.00 1 
 And, for all items in this subsection exceeding five (5) pages, 2 
 for each additional page  ...........................................................$3.00 3 
 And, for all items in this subsection for each additional reference 4 
 relating to same instrument  .....................................................$4.00 5 
2. The thirty-three dollar ($33) fee imposed by this subsection shall be 6 
divided as follows: 7 
a. Twenty-seven dollars ($27) shall be retained by the county clerk; 8 
and 9 
b. Six dollars ($6) shall be paid to the affordable housing trust fund 10 
established in KRS 198A.710 and shall be remitted by the county 11 
clerk within ten (10) days following the end of the quarter in which 12 
the fee was received. Each remittance to the affordable housing 13 
trust fund shall be accompanied by a summary report on a form 14 
prescribed by the Kentucky Housing Corporation. 15 
(b) For noting a security interest on a certificate of title pursuant to 16 
 KRS Chapter 186A  ..................................................................................$12.00 17 
(c) For filing the release of collateral under a financing statement 18 
 and noting same upon the face of the title pursuant to KRS Chapter 19 
 186 or 186A  ...............................................................................................$5.00 20 
(d) Filing or recording state tax or other state liens  .........................................$5.00 21 
(e) Filing release of a state tax or other state lien  ............................................$5.00 22 
(f) Acknowledging or notarizing any deed, mortgage, power of attorney, 23 
 or other written instrument required by law for recording and certifying 24 
 same ..................................... ......................................................................$5.00 25 
(g) Recording plats, maps, and surveys, not exceeding 24 inches by 26 
 36 inches, per page ...................................................................................$40.00 27  UNOFFICIAL COPY  	22 RS SB 135/GA 
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(h) Recording a bond, for each bond  .............................................................$10.00 1 
(i) Each bond required to be taken or prepared by the clerk  ...........................$4.00 2 
(j) Copy of any bond when ordered  ................................................................$3.00 3 
(k) Administering an oath and certificate thereof  ............................................$5.00 4 
(l) Issuing a license for which no other fee is fixed by law  ............................$8.00 5 
(m) Issuing a solicitor's license  .......................................................................$15.00 6 
(n) Marriage license, indexing, recording, and issuing certificate thereof  ....$26.50 7 
(o) Every order concerning the establishment, changing, closing, or 8 
  discontinuing of roads, to be paid out of the county levy when 9 
  the road is established, changed, closed, or discontinued, and by 10 
  the applicant when it is not  ...............................................................$3.00 11 
(p) Registration of licenses for professional persons required to register 12 
  with the county clerk  ......................................................................$10.00 13 
(q) Certified copy of any record  ......................................................................$5.00 14 
  Plus fifty cents ($.50) per page after three (3) pages 15 
(r) Filing certification required by KRS 65.070(2)(a)  ....................................$5.00 16 
(s) Filing notification and declaration and petition of candidates 17 
  for Commonwealth's attorney ........................................................$200.00 18 
(t) Filing notification and declaration and petition of candidates for county 19 
  and independent boards of education  .............................................$20.00 20 
(u) Filing notification and declaration and petition of candidates for 21 
  boards of soil and water conservation districts  ...............................$20.00 22 
(v) Filing notification and declaration and petition of candidates for 23 
  other office  ......................................................................................$50.00 24 
(w) Filing declaration of intent to be a write-in candidate for office ..............$50.00 25 
(x) Filing petitions for elections, other than nominating petitions  ................$50.00 26 
(y) Notarizing any signature, per signature  .....................................................$2.00 27  UNOFFICIAL COPY  	22 RS SB 135/GA 
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(z) Filing bond for receiving bodies under KRS 311.310  .............................$10.00 1 
(aa) Noting the assignment of a certificate of delinquency and recording 2 
 and indexing the encumbrance under KRS 134.126 or 134.127  .............$27.00 3 
(ab) Filing a going-out-of-business permit under KRS 365.445  .....................$50.00 4 
(ac) Filing a renewal of a going-out-of-business permit under KRS 365.445  $50.00 5 
(ad)  Filing and processing a transient merchant permit under KRS 365.680  .$25.00 6 
(ae) Recording and indexing a real estate mortgage: 7 
1. For a mortgage that does not exceed thirty (30) pages ....................$63.00 8 
2. And, for a mortgage that exceeds thirty (30) pages, for each additional 9 
page   .........................................................................................$3.00 10 
(af) Filing or recording a lien or release of lien by a consolidated local 11 
government, urban-county government, unified local government, or city of 12 
any class ................................................................................................$20.00 13 
(2) The sixty-three dollar ($63) fee imposed by subsection (1)(ae) of this section shall 14 
be divided as follows: 15 
(a) Fifty-seven dollars ($57) shall be retained by the county clerk; and 16 
(b) Six dollars ($6) shall be paid to the affordable housing trust fund established 17 
in KRS 198A.710 and shall be remitted by the county clerk within ten (10) 18 
days following the end of the quarter in which the fee was received. Each 19 
remittance to the affordable housing trust fund shall be accompanied by a 20 
summary report on a form prescribed by the Kentucky Housing Corporation. 21 
(3) (a) For services related to the permanent storage of records listed in paragraphs 22 
(a), (g), (n), and (ae) of subsection (1) of this section, the clerk shall be 23 
entitled to receive a reimbursement of ten dollars ($10). 24 
(b) This fee shall: 25 
1. Not be paid annually to the fiscal court under KRS 64.152; 26 
2. Not be paid to the Finance and Administration Cabinet under KRS 27  UNOFFICIAL COPY  	22 RS SB 135/GA 
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64.345; 1 
3. Be accumulated and transferred to the fiscal court or the legislative 2 
body of a consolidated local government or an urban-county 3 
government on a monthly basis within ten (10) days following the end 4 
of the month; 5 
4. Be maintained by the fiscal court or the legislative body of a 6 
consolidated local government or an urban-county government in a 7 
separate bank account and accounted for in a separate fund; and 8 
5. Not lapse to the general fund of the county, consolidated local 9 
government, or urban-county government. 10 
(c) The moneys accumulated from this fee shall be held in perpetuity by the 11 
fiscal court or the legislative body of a consolidated local government or an 12 
urban-county government for the county clerk's exclusive use for: 13 
1. Equipment related to the permanent storage of and access to records, 14 
including deed books, binders, shelves, microfilm equipment, and 15 
fireproof equipment; 16 
2. Hardware for the permanent storage of and access to records, 17 
including computers, servers, and scanners; 18 
3. Software for the permanent storage of and access to records, including 19 
vendor services and consumer subscription fees; 20 
4. Personnel costs for the permanent storage of and access to records, 21 
including overtime costs for personnel involved in the digitization of 22 
records; and 23 
5. Cloud storage and cybersecurity services for the permanent storage of 24 
and access to records. 25 
(d) Notwithstanding KRS 68.275, claims by a county clerk that are for the 26 
approved expenditures in paragraph (c) of this subsection shall be paid by 27  UNOFFICIAL COPY  	22 RS SB 135/GA 
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the county judge/executive or the chief executive officer of a consolidated 1 
local government or an urban-county government by a warrant drawn on 2 
the fund and co-signed by the treasurer of the county, consolidated local 3 
government, or urban-county government. 4 
(e) No later than July 1 of each year, each county fiscal court or legislative 5 
body of a consolidated local government or an urban-county government 6 
shall submit a report to the Legislative Research Commission detailing the 7 
receipts, expenditures, and any amounts remaining in the fund. 8 
Section 3.   KRS 142.010 is amended to read as follows: 9 
(1) The following taxes shall be paid: 10 
(a) A tax of four dollars and fifty cents ($4.50) on each marriage license; 11 
(b) A tax of four dollars ($4) on each power of attorney to convey real or personal 12 
property; 13 
(c) A tax of four dollars ($4) on each mortgage, financing statement, or security 14 
agreement and on each notation of a security interest on a certificate of title 15 
under KRS 186A.190; 16 
(d) A tax of four dollars ($4) on each conveyance of real property; and 17 
(e) A tax of four dollars ($4) on each lien or conveyance of coal, oil, gas, or other 18 
mineral right or privilege. 19 
(2) The tax imposed by this section shall be collected by each county clerk as a 20 
prerequisite to the issuance of a marriage license or the original filing of an 21 
instrument subject to the tax. Subsequent assignment of the original instrument 22 
shall not be cause for additional taxation under this section. This section shall not 23 
be construed to require any tax upon a deed of release of a lien retained in a deed or 24 
mortgage. 25 
(3) Taxes imposed under this section shall be reported and paid to the Department of 26 
Revenue by each county clerk within ten (10) days following the end of the calendar 27  UNOFFICIAL COPY  	22 RS SB 135/GA 
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month in which instruments subject to tax are filed or marriage licenses issued. 1 
Each remittance shall be accompanied by a summary report on a form prescribed by 2 
the department. 3 
(4) Any county clerk who violates any of the provisions of this section shall be subject 4 
to the uniform civil penalties imposed pursuant to KRS 131.180. In every case, any 5 
tax not paid on or before the due date shall bear interest at the tax interest rate as 6 
defined in KRS 131.010(6) from the date due until the date of payment. 7 
(5) (a) One dollar ($1) of the amount collected under each paragraph of subsection 8 
(1) of this section shall be placed in an agency fund in the Department for 9 
Libraries and Archives to be used exclusively for the purpose of preserving 10 
and retaining public records by continuing the local records grant program 11 
active in the Department for Libraries and Archives.[ The budgeted amount of 12 
funds allocated to the grant program in the fiscal year 2005-2006 departmental 13 
budget shall not be reduced in future years, and shall be increased annually by 14 
this additional revenue to be used exclusively for the grants program.] 15 
(b) Ninety percent (90%) of all funds allocated to the Department for Libraries 16 
and Archives under paragraph (a) of this subsection for the local records 17 
grant program shall be set aside for grants to county clerks and distributed 18 
annually, except as provided in paragraph (c) of this subsection. 19 
(c) If there are insufficient grant applications from county clerks for the 20 
Department for Libraries and Archives to distribute ninety percent (90%) of 21 
all funds allocated under paragraph (a) of this subsection, the Department 22 
for Libraries and Archives may grant those funds to other agencies. 23 
SECTION 4.   A NEW SECTION OF KRS CHAPTER 64 IS CREATED TO 24 
READ AS FOLLOWS: 25 
(1) (a) A county clerk in a county containing a population of less than seventy 26 
thousand (70,000) may be entitled to receive an advancement to: 27  UNOFFICIAL COPY  	22 RS SB 135/GA 
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1. Defray necessary official expenses; and 1 
2. Supplement the payment of the salaries of the county clerk or the 2 
county clerk's deputies and assistants. 3 
(b) 1. The secretary of the Finance and Administration Cabinet shall, on the 4 
first day of each calendar month, determine the necessary amount that 5 
may be advanced to the county clerk. 6 
2. The advance shall be the lesser of: 7 
a. One-twelfth (1/12) of the total fees collected by the county clerk 8 
for the preceding year; or 9 
b. Sixty thousand ($60,000) dollars per month. 10 
(c) When approved by the secretary of the Finance and Administration 11 
Cabinet, a warrant shall be drawn on the State Treasury in favor of the 12 
county clerk for such advancement. 13 
(d) Funds advanced under this section shall be repaid by the county clerk to 14 
whom the funds were advanced no later than the close of the calendar year 15 
in which the funds were advanced. If the funds are not timely repaid, then 16 
the county clerk in his or her official capacity or the surety for the county 17 
clerk shall be liable to the Commonwealth. 18 
(2) If a county clerk makes a request for funds from the State Treasury to defray 19 
necessary official expenses, the county clerk shall not be required to submit a 20 
detailed statement of his or her personal assets and liabilities as a condition of the 21 
application process. 22 
(3) The Finance and Administration Cabinet shall promulgate administrative 23 
regulations in accordance with KRS Chapter 13A as necessary to implement the 24 
provisions of this section. 25