RD1 - Final Report on Modernizing Land Records in Virginia - January 1, 1998


Executive Summary:
The 1997 General Assembly passed House Bill 2579 that, among other things, directs the creation of a Land Records Management Task Force (Task Force) to address the impediments identified in "The Feasibility of Modernizing Land Records in Virginia," report developed by the Joint Legislative Audit and Review Commission (JLARC) in 1995. Impediments identified in that report include the lack of standards for indexing, content, and automation of land records, and the Commonwealth's limited funding approach for modernization efforts. The JLARC report also recommended that a comprehensive, carefully planned approach for the modernization of land records be developed. The Task Force, as recommended by JLARC, was established in June 1997.

INTERIM REPORT

The Task Force submitted an Interim Report to the Governor and Chairmen of the House Appropriations and Senate Finance Committees on September 1, 1997. The Interim Report defined the concept of land-records management and provided a strategic plan for modernizing land records in Virginia. There was insufficient time from the inception of the Task Force until the due date of the Interim Report to develop recommendations regarding the format, content and technology standards for land records as directed in House Bill 2579.

Concept of Land Records Management

Land information is a vital asset that supports many governmental and non-governmental activities. Much of the land data collected and maintained by local governments are generated from land parcel transactions, building permits, zoning and subdivision reviews, voter registration, police and fire protection and locality taxation functions.

Figure 1 (on page iv of the report) is illustrative of the various public and private ownership and use interests associated with land and provides some insight into the kinds of information that must be managed and addressed in modem land records systems.

Land Records Management Definition

The Task Force has defined land records management as the uniform indexing and preservation of the instruments and data relating to land integrated with local and state geographic information systems (GIS) layered data, assessment information, and other public records relating to the land and made available to the public.

This broad definition encompasses all land records including ownership rights and interests, land record instruments recorded in the Clerks' offices, and all other information related to the land that is contained in public records.

Strategic Plan for Modernizing Land Records

Efforts to develop a modem land records management system in the Commonwealth must address all land records on the State's land base while eliminating many of the shortcomings found in current procedures and systems used to manage such information.

The Task Force published a strategic plan for modernizing land records in Virginia as part of its Interim Report. The Strategic Plan encompasses the definition of land records management and identifies four goals with corresponding objectives that, when fully implemented, will provide Virginia citizens with a modem land records management system.

FINAL REPORT

House Bill 2579 also directed the Task Force to provide a final report that includes an inventory of automated land-records technology in Circuit Court Clerks' offices, recommendations for the future automation of land records in individual Circuit Court Clerks' offices, recommended policies for the Compensation Board to follow in allocating funds appropriated from the Technology Trust Fund, and recommendations regarding user fees charged for access to land records. In addition, this report includes recommendations regarding the format, content and technology standards for land records that were not completed in time to be included in the Interim Report.

This report contains the Task Force's comprehensive plan for modernizing land records in individual Clerks' offices and providing remote access to land records throughout the Commonwealth. This plan defines a system to provide statewide remote access to land records in sufficient detail to determine the compatibility of any Clerk's proposed technology improvements with such a plan.

FORMAT AND CONTENT OF LAND RECORDS

The Task Force, through the adoption of the Strategic Plan, identified several objectives that relate to the content and format of land records including: consistent indexing of land record instruments recorded in Circuit Court Clerks' offices, accessing and using automated index information, integration of all land records, and needed improvements in land records to support the development of local government geographic information systems.

Indexing Standards

A significant portion of the Task Force's efforts were directed toward developing a set of Indexing Standards. However, the time allotted for developing and finalizing those land records indexing standards has been insufficient. A copy of the draft indexing standards, as of the date of this report, is included as Attachment A. The Task Force has identified the tasks that need to be completed to finalize the indexing standards for statewide use by late fall 1998 and recommends legislative action for the 1999 General Assembly session to require the use of the final indexing standards on a statewide basis beginning January 1, 2000.

Cover Sheet

The Task Force also developed a Land Records Cover Sheet that provides several key enhancements for automating land records management. These enhancements include providing a uniform and consistent form for indexing land record instruments and other information that may be used with technology such as optical character recognition (OCR).

The Task Force recommends the General Assembly take appropriate legislative action during the 1998 session that provides all Circuit Court Clerks the option of requiring the use of the cover sheet (when finalized) on all land record instruments filed for recording after July 1, 1998. The Task Force has identified the tasks that need to be completed to finalize the land records cover sheet and recommends legislative action be taken in the 1999 General Assembly session that will mandate the use of the final cover sheet in all clerks offices, starting no later than July 1, 2000.

Electronic Filing of Land Record Instruments

Providing a local government option to require the electronic submission of all land record instruments for recordation in a digital format has the capability of significantly reducing the time and cost required to file, index and process land record instruments and other court documents.

However, the ability to define all appropriate standards and formats needed to implement this objective are somewhat limited because of lack of documented success stories and universally accepted standards. It is the view of the Task Force that having more than one pilot program will be beneficial in developing standards and determining "what works best."

The Task Force recommends the General Assembly consider amending Section 17-83.1:1 et seq., of the Code of Virginia, to extend the pilot for electronic filing for five years. The Task Force also recommends that other Clerks' Offices be permitted to pilot electronic filing. In addition several minor changes to Section 17-83.1:1 et seq., will be required.

State Plane Coordinate System and Parcel Identification Numbers

Goal 4 of the Strategic Plan is to provide a "uniform content and format of land records that promotes their usefulness in integrated local government information systems, eliminates duplication of information, and promotes data sharing and electronic access." This report contains several local government recommendations relating to improving the content and format of land records information in their jurisdictions.

The Task Force identified a unique parcel identification number as a common key that can be used to access land records information in Clerks' offices and offices of other local and state governmental organizations that maintain information related to a parcel of land. To ensure the development and use of that common key:

• The Task Force recommends the General Assembly enact appropriate legislation to require the use of a unique parcel identification number on all land record instruments filed for recording in a Circuit Court Clerk's office, starting January 1, 2000.

• In the interim, the Task Force recommends the General Assembly take appropriate legislative action to amend Section 17-79.3 of the Code of Virginia, to permit all Clerks to require the use of unique parcel identification numbers on land record instruments filed for recording.

LAND RECORDS ARCHITECTURE

The land records architecture required to support the goals and objectives defined in the Strategic Plan must address the data needs, business applications and the underlying information technology resources.

Information technology resources, such as telecommunications, computers, routers, modems, database management systems, operating systems, web browsers, other support software products and information technology personnel, are required to support the business applications.

The technology architecture part of the model as shown in Figure 7 (shown on page vii of the report) must be based on a minimum set of standards to ensure all interested parties are fully able to participate and communicate by electronic means.

These minimum standards must address internal requirements within each network or user computing environment and the external telecommunications infrastructure requirements that permit external users to retrieve from or send information to another network or user.

The Task Force recommends the General Assembly consider directing the Compensation Board and the Council on Information Management monitor new and emerging standards and technologies and review and modify as necessary the technology architecture portion of the Land Records Architecture on an annual basis. This must include the development of appropriate recommendations and standards for premium services and electronic filing of land record instruments. The General Assembly should consider providing the appropriate level of General Fund resources necessary to accomplish this recommendation.

COMPREHENSIVE PLAN FOR THE FUTURE AUTOMATION OF LAND RECORDS

The comprehensive plan for the future automation of land records in the Commonwealth is presented in two parts, the tactical plan for the Commonwealth and tactical plans for individual Clerk's offices.

State-Level Tactical Plan for Modernizing Land Records in Virginia

The State-Level Tactical Plan identifies the tasks and activities, including applicable timelines that are necessary for implementing the goals and objectives defined in the Strategic Plan for Modernizing Land Records in the Commonwealth. State-level milestones for implementing the comprehensive plan are shown on Figure 8 (on page iv of the report).

Long Term Funding Needs For Implementing the Five Year Planning Horizon

The Task Force has not been able to determine a reasonable estimate of the costs required to implement the goals and objectives defined in the Strategic Plan. However, the Task Force recognizes that significant funding mechanisms will be required for the development and maintenance of automated systems that support land record indexes, onsite and remote access to land record indexes, imaging of land record instruments, onsite and remote access to land record instruments, conversion of manually maintained indexes, integration of land records information, and access to land records in other local government organizations. The Task Force recommends legislation for action by the 1998 General Assembly that will extend the $3 fee currently collected on all recorded documents pursuant to Section 14.1-125.2 of the Code of Virginia for an additional two years.

The Task Force, through the comprehensive planning process has established a means for determining the long-term funding needs for implementing the Strategic Plan. It is planned for this information to be provided to the Governor and the Chairmen of the Senate Finance and House Appropriation Committees with recommendations on the future long-term funding needs for modernizing land records in the Commonwealth.

Clerks' Tactical Plans for Modernizing Land Records

The Clerks' Tactical Plan identifies the tasks and activities, including applicable timelines that are necessary for developing and implementing a plan that meets the goals and objectives defined in the Strategic Plan. This report identifies the minimum areas that must be addressed in each Clerk's plan, the goals and objectives that must be addressed in priority order, minimum standards of service, and established time lines for each of the seven identified priorities.

Goals and Objectives for Clerks' Plans

The following goals and objectives are provided in a priority order that is consistent with the State-Level Plan. It is expected that higher priorities should be in progress or completed prior to attempting to implement lower priorities.

1. Participate in the statewide electronic gateway process.

2. Automated land records indexing system.

• Implement approved Standards for Indexing Land Record Instruments.
• Implement approved Land Records Cover Sheet.
• Implement the use of Parcel Identification Numbers.
• Index land record instruments by Parcel Identification Numbers.

3. Onsite and remote access to automated land records indexing system.

4. Automated land record instruments imaging system.

5. Onsite and remote access to automated land record instruments imaging system.
6. Ensure land records maintained in an electronic format by local government entities are available and accessible as determined by the local government in accordance with State law.

7. Provide capabilities for submitting land record instruments for recording electronically.

SUMMARY RECOMMENDATION

The Land Records Management Task Force has accomplished a great deal in the short time it has been in existence; however, it has also documented additional efforts and tasks that must be accomplished over the next several years to implement the Strategic Plan for Modernizing Land Records.

Key tasks that must be completed include: finalizing the land records indexing standards and the land records cover sheet, developing a business data model and minimal business applications specifications to complete the Land Records Architecture Model, evaluating Clerks' plans to develop accurate estimates of the long term funding needs required to implement the Strategic Plan, and developing proposed legislation for action by the General Assembly that is consistent with the time schedules presented in this report.

The Task Force recommends the General Assembly consider enacting legislation that continues the Land Records Management Task Force through June 30, 1999, in its present form and with its present members. The Task Force recommends the General Assembly consider enacting this legislation as emergency legislation, to ensure the continued active participation of the current members of the Task Force and to maintain the scheduled time frames contained in this report.

The General Assembly may also wish to consider adding a member to the Task Force from the Virginia State Bar as a voting member.

The General Assembly may also wish to require the Task Force to submit an interim report on January 1, 1999, and a final report on July I, 1999, to the Governor and the Chairmen of the House Appropriations and Senate Finance Committees. At a minimum, these reports should address progress to date in completing those unfinished tasks identified in this report and the status of implementing the comprehensive plan on a statewide basis.