NPRRA Government NPRRA Government Affairs CommitteeAffairs Committee

2011 Conference, Park City, 2011 Conference, Park City, UTUT

Segment one:Segment one:RA9 AmendmentsRA9 Amendments

with Ed Noyer,with Ed Noyer,Director of Product MarketingDirector of Product Marketing

forfor

PARASECPARASEC

Segment two:Segment two:

GAC GAC

Current and Future Objectives Current and Future Objectives and Methodsand Methods

GAC (current) purposeGAC (current) purpose

To provide a platform to monitor federal, state and county administrative and legislative actions and initiatives, report them and consider possible actions.

Primary IssuesPrimary Issues Privacy concerns and their impact on access to public

records. Consideration of joining legal actions such as amicus briefs

when warranted. Report trends and actions of state agencies, including

reporting of IACA activities and ListServ communications to membership.

Report trends and actions of federal agencies, including reporting of actions pertaining to anti-terrorism, drug-trafficking and money laundering efforts and the impact of pertinent regulations on our industry.

Disintermediation of our industry’s core services through technological advances available to state administrators

DutiesDuties Monitoring of local and national initiatives and concerns that

may affect members’ business interests. Creating a stronger relationship with IACA (the association of

state UCC and corporate administrators). Maintain an IACA liaison who will report to the GAC as well as Monitor IACA Listserv items.

Working on privacy issues in two ways – first, through our own grass roots efforts and second, through alliances with other public records related associations (i.e. PRIA, NAPBS and REIPA) that share our concerns.

GAC Chair to maintain 5-10 active volunteer members. GAC Chair to maintain and update GAC group discussion page

at Linkedin.com Maintain an ARA (Association of Registered Agents) liaison who

will report to the GAC.

ProceduresProcedures

Listserv postsListserv posts Committee Correspondence via emailCommittee Correspondence via email Committee Correspondence via conference call Committee Correspondence via conference call

as neededas needed Linked in Group (discontinued)Linked in Group (discontinued)

Not enough benefit for just the committeeNot enough benefit for just the committee Email is quicker & more effectiveEmail is quicker & more effective Looking a replacement discussion forum for tracking: Looking a replacement discussion forum for tracking:

Secure blog accessed only via Member side of website?Secure blog accessed only via Member side of website? Newsletter RecapsNewsletter Recaps

Committee MembershipCommittee Membership New members?New members?

Looking for folks willing to contributeLooking for folks willing to contribute Occasionally follow up on items with Gov’t agenciesOccasionally follow up on items with Gov’t agencies Low stress way to get involvedLow stress way to get involved Committee members are not experts on all the issues. Committee members are not experts on all the issues.

We look to educate ourselves. pass on pertinent info and We look to educate ourselves. pass on pertinent info and help make sure membership gets the salient points. help make sure membership gets the salient points. Input from knowledgeable members and non-members Input from knowledgeable members and non-members is welcome and valuable.is welcome and valuable.

Frequent ContributorsFrequent Contributors Renee Reis (IACA BOC liaison) , Jeff Speredelozzi (IAC Renee Reis (IACA BOC liaison) , Jeff Speredelozzi (IAC

STS Liaison), Kevin Roberts (ARA Liaison), David STS Liaison), Kevin Roberts (ARA Liaison), David Silverburg, John Robinson, Steve Elias, Blair WagnerSilverburg, John Robinson, Steve Elias, Blair Wagner

SuggestionsSuggestions

Make em now or send em to us later. Make em now or send em to us later.

All are welcome.All are welcome.

jeffs@precisioncorp.comjeffs@precisioncorp.comwhitney@nprra.orgwhitney@nprra.org

NPRRA support and interactionNPRRA support and interaction

IACAIACA(International Association of Commercial (International Association of Commercial

Administrators)Administrators)

ProsPros Maintain presence and communication lines with those whose Maintain presence and communication lines with those whose

decisions have the greatest possibility of impacting our decisions have the greatest possibility of impacting our interestsinterests

Better opportunity for a seat at the table when decisions are Better opportunity for a seat at the table when decisions are being madebeing made

Increase positive perception of industryIncrease positive perception of industry Opportunity to showcase and further NPRRA’s missionOpportunity to showcase and further NPRRA’s mission Provide a voice for all industry players, including small and Provide a voice for all industry players, including small and

mid-sized firms who may not be able to justify the IACA mid-sized firms who may not be able to justify the IACA expense on their own. (Most if not all larger players are expense on their own. (Most if not all larger players are already supporting IACA and attending conferences)already supporting IACA and attending conferences)

Keep newer IACA members educated regarding our presence Keep newer IACA members educated regarding our presence and expertise as IACA members rotate over time. With newer and expertise as IACA members rotate over time. With newer members, we have the opportunity to help proactively shape members, we have the opportunity to help proactively shape their vision of NPRRA.their vision of NPRRA.

ConsCons CostCost

Sending a delegate to IACA conference is estimated Sending a delegate to IACA conference is estimated at about $ 5000 (approximately 10% of membership at about $ 5000 (approximately 10% of membership dues at our current rate and numbers)dues at our current rate and numbers)

Money could be directed towards other pertinent Money could be directed towards other pertinent endeavorsendeavors

Supporting an organization that does not have our Supporting an organization that does not have our interests at heart and in many cases whose initiatives interests at heart and in many cases whose initiatives are in direct conflict with our interestsare in direct conflict with our interests

Legal concerns pertaining to financial support for public Legal concerns pertaining to financial support for public officials? (see comment within survey response officials? (see comment within survey response handout)handout)

Segment ThreeSegment Three

Current EventsCurrent Events

NY Sales Tax NY Sales Tax 1 year later1 year later

Request for Advisory Opinion Request for Advisory Opinion abandoned abandoned

Member input so far has indicated that Member input so far has indicated that NY clients are generally accepting the NY clients are generally accepting the change without protest or loss. change without protest or loss.

Whistleblower Rule Whistleblower Rule

Proposed Federal Tax lien RegistryProposed Federal Tax lien Registry

Senate Bill # S. 1390 was introduced on 07/20/2011 by Senator Levin (D-MI) and co-sponsored by Senator Mark Begich (D-AK). It proposes creation of a centralized federal tax lien registry, removing the need for filing federal tax liens with state level agencies as well as real estate records. This is similar to a bill that was introduced in 2007 which ended up stalling as the legislature focused on other pressing matters.

Status: referred to Senate Finance Committee  Timeline: Calls for a Pilot Program within 2 years of the

passing of the Act, followed by a 3 month review period, followed by a nationwide test, after which, if successful, an implementation date would be set.

PI Licensing IssuesPI Licensing Issues

Posted by BRB Communications on 8/16/11

The Illinois Department of Professional Regulation has issued a "cease and desist" letter to a PRRN member based in Illinois for performing public record research and not having a private investigator's license. The Department interpreted that the act of researching public records is considered to be  performing an "investigation." The is regardless if the PRRN Member was merely researching a court's public record docket for an attorney, private investigator, or consumer reporting agency (CRA).  

UCC3 RE AddendumUCC3 RE Addendum IACA proposed latest forms at their 2011 IACA proposed latest forms at their 2011

conference, implementation to coincide with the July conference, implementation to coincide with the July 2013 implementation of the new RA9 amendments. 2013 implementation of the new RA9 amendments.

Proposed versions can be found at: Proposed versions can be found at: http://www.iaca.org/node/145

Instruction pages are still being tweaked. Our Instruction pages are still being tweaked. Our concern regarding having debtor names presented concern regarding having debtor names presented on UCC3s pertaining to real estate was taken into on UCC3s pertaining to real estate was taken into account during the drafting stage with NPRRA account during the drafting stage with NPRRA participation. IACA has added instruction to section participation. IACA has added instruction to section 1b of the UCC3 form (box indicating to be recorded 1b of the UCC3 form (box indicating to be recorded in Real Estate Records), instructing filer to attach in Real Estate Records), instructing filer to attach form UCC3ad and to include debtor name in box 13 form UCC3ad and to include debtor name in box 13 of UCC3ad. We look forward to the final draft of the of UCC3ad. We look forward to the final draft of the instruction page. instruction page.

Knock Knock Knockin’ Knock Knock Knockin’ on Levin’s Door on Levin’s Door

On 08/02/2011 Senator Levin (D-MI) along with Co-sponsor Senator Chuck Grassley (R-IA), reintroduced legislation pertaining to reporting of beneficial ownership information by corporations and LLCs formed in the U.S. 

Status of S. 1483: referred to Senate Homeland Security and Status of S. 1483: referred to Senate Homeland Security and Government Affairs CommitteeGovernment Affairs Committee

Calls for Implementation by 2014Calls for Implementation by 2014 Addresses Shelf companies and requires reporting of beneficial owners Addresses Shelf companies and requires reporting of beneficial owners

within 10 days of transfer.within 10 days of transfer. States may license formation agents to acquire & maintain the info, States may license formation agents to acquire & maintain the info,

including verification of identityincluding verification of identity Exemptions provided for several entity types where beneficial owner info Exemptions provided for several entity types where beneficial owner info

is available through other avenues (such as SEC registration, Non-Profit is available through other avenues (such as SEC registration, Non-Profit reporting and several other)reporting and several other)

Exempts attorneys or law firms from being considered a formation agent Exempts attorneys or law firms from being considered a formation agent if they use a paid formation agent operating within the US to form the if they use a paid formation agent operating within the US to form the entity.entity.

SC UCC Lapse DateSC UCC Lapse Date South Carolina implemented a new UCC system earlier in 2011 that

considers a filing lapsed as of 12:01 am on the 5th anniversary of the initial file date (unless continued prior). Those waiting until the very last day to continue a filing will find that SC will refuse to accept the continuation.   example:  Initial filing made 05/20/2006 at 2:00 pm will lapse at 12:01

am on 05/20/2011.  A filer that shows up at 10 am on the lapse date of 5/20 looking to file a

continuation will be out of luck under SC policy.

This is in contrast to the IACA model rule, which is as follows: 201.2 Last day permitted: The last day on which a continuation statement may

be filed is the date upon which the related financing statement lapses. The foregoing rule is subject to the ability of the filing office to take delivery of the continuation statement as tendered and to rule 101. Accordingly, the time of filing of the continuation statement under rule 101 must be on or prior to such last day and delivery by certain means of communication may not be available on such last day if the filing office is not open for business on such day.

SC has not responded to our inquiries as to whether they intend to remedy this situation. We have no indication that any modifications are under consideration.

NM UCC Lunch BreakNM UCC Lunch Break We learned that at some point during the lunch hour of 12-1 p.m. MDT, New

Mexico conducts a few minutes of system maintenance each day which causes searches to come back "No Record" regardless of whether or not there are filings on record. We recommend avoiding using the system during this time if possible and we recommend exercising caution when receiving and reporting "No Record" results.

NM has posted the following notice on their website: "The UCC Research On-Line application is unavailable between the hours of 12:00 pm - 1:00 pm MDT for routine system maintenance. We recommend that any UCC on-line research be conducted prior to or after the system maintenance." http://www.sos.state.nm.us/sos-ucc.html

It is important to note that you will not see this notice if you follow a link directly to the search value entry page. The notice is posted on New Mexico's general UCC information page. The phrase "application is unavailable" may be inadequate to describe the issue, as the system gives no indication that it is not working properly during this time. It simply returns a "No Record" result. The application itself remains "available" while the actual information pertaining to active UCCs on record may be "unavailable”.