AB 578 established the Electronic Recording Delivery Act of 2004 (Article 6 of Chapter 6 of Part 3 of Division 4 of Title 1 of the Government Code). This act provided for the California Attorney General's office to develop and adopt regulations for review, approval, and oversight of electronic recording delivery systems. These regulations provide for system certification and security audits of the system and the users. Electronic Recordng Delivery System means a system to electronically deliver for recording, and to return to the party requesting recording, digitized or digital electronic records.   
  
In order to pay costs under this section, Government Code sections 27397 allows a county to impose a fee in an amount up to and including one dollar ($1.00) for each instrument that is recorded by a county. The funds generated by the fee can only be used to pay for the implementation and operation of the electronic recording delivery system, the delivery and approval of vendors and potential authorized submitters, security testing as required by Government Code sections 27300 through 27399, and reimbursement to the California Attorney General for regulation and oversight of the electronic recording delivery system.  
  

The Clerk-Recorder would have to fund the electronic recording delivery system by another funding mechanism (potentially with General Fund monies) or not participate in this time and cost saving new technology.