Title
Recorder-Clerk recommending the Board approve and authorize the Chair to sign a Letter of Support for Assembly Bill 1430 (Bennett).
FUNDING: N/A
Body
DISCUSSION / BACKGROUND
The legally established base fee for document recording and indexing every instrument, paper, or notice required or permitted by law at the County Recorder's office was last adjusted in 2010. When established, that fee was intended as a fee for service to cover the cost of the recording function at no additional expense to a county's net county cost.
Recording fees have not been aligned to inflationary factors or the state's minimum wage increases, creating significant budget challenges for some counties, where support to maintain the recording function is now being augmented from county general funds and, thus, competing with funding required for other essential public services like public safety, public health, and general county administration.
Currently the El Dorado County Recorder-Clerk's office is not a general fund supported department. The office is funded by recording revenue and restricted revenue funds. Use of restricted revenue is limited by statute. As other costs of doing business have increased, our fees remain unchanged.
Absent an adjustment, the ability to provide services, retain an adequate, trained workforce, and maintain standards for timeliness and quality are at risk. Already, California counties are facing staff reduction directly resulting from the inadequate funding of the recorder function. Other counties have been forced to decrease hours available for public counter recording and closure of satellite offices due to revenue and staff decreases. These impacts have downstream impacts on the state's economic recovery if real estate transactions are not timely and properly added to the public record.
The County Recorders' Association of California is advancing AB 1430 (Bennett) for fee stabilization and is seeking the advocacy support from industry stakeholders and labor organizations who represent employees who serve the public in fulfilling document recording and real estate transaction services that are essential to California's economy and transparency and from other stakeholders from the mortgage and escrow fields.
County Recorders' Association of California 2025 Recording Fee Stabilization Proposal
1. Adjust the 1st page base recording fee by $5 (from $10 to $15) - the increase aligns to a CPI analysis
2. Increase the additional page fees by $1 (from $3 to $4)
3. Requires fees collected to be dedicated to, and solely utilized for, the county recorder's office and prohibits the fees from exceeding the reasonable costs of the document recording function.
4. Amends Goverment Code 27361.4 sunset related to County Recorder Archive Program (Micrographics Restricted Revenue Fund).
If the fee increase is not approved, the department would be more reliant on Recorder Special Revenue funds and upon exhausting these funds the Recorder-Clerk's office would be reliant on the General Fund. This would further limit the department's ability to seek new technology and preservation without General Fund support. If we are not fiscally covering our costs and taking from the General Fund, we are indirectly taking funds away from other departments, such as Law Enforcement, County Counsel, Roads, etc.
ALTERNATIVES
The Board could choose not to take a position on the legislation.
PRIOR BOARD ACTION
N/A
OTHER DEPARTMENT / AGENCY INVOLVEMENT
County Recorder's Association of California
CAO RECOMMENDATION / COMMENTS
Approve as recommended.
FINANCIAL IMPACT
There is no fiscal impact associated with issuing this letter of support.
CLERK OF THE BOARD FOLLOW UP ACTIONS
Obtain the Chair's signature on the Letter of Support and return an original of the Letter of Support to the Recorder-Clerk
STRATEGIC PLAN COMPONENT
N/A
CONTACT
Janelle K. Horne, Recorder-Clerk