An Act to Implement Protections Against Deed Fraud
Maine Legislature, Session 131, LD 2240
Committee Amendment CA_A_S672 (Senate)

COMMITTEE AMENDMENT " (\ » to S.P. 960, L.D. 2240, "An Act to Implement
Protections Against Deed Fraud"
Amend the bill by striking out the title and substituting the following:
'Resolve, to Establish the Commission to Recommend Methods for Preventing Deed
Fraud in the State*
Amend the bill by striking out everything after the title and inserting the following:
'Emergency preamble. Whereas, acts and resolves of the Legislature do not
become effective until 90 days after adjournment unless enacted as emergencies; and
Whereas, deed fraud occurs when a person sells real property by falsely claiming to
be the property owner and records a deed of the fraudulently induced sale in the registry of
deeds, depriving the rightful owner of a significant asset without the owner's knowledge;
and
Whereas, the process for the rightful owner of the property to nullify a fraudulently
recorded deed is not only time-consuming and expensive but, if successful, can also leave
the innocent purchaser of the property with neither the property nor the funds used to
purchase the property from the perpetrator of the deed fraud; and
Whereas, this legislation establishes the Commission to Recommend Methods for
Preventing Deed Fraud in the State to study options for both preventing deed fraud and
recompensing the victims of deed fraud; and
Whereas, the study must be initiated before the 90-day period expires in order that
the study may be completed and a report submitted in time for submission to the next
legislative session; and
Whereas, in the judgment of the Legislature, these facts create an emergency within
the meaning of the Constitution of Maine and require the following legislation as
immediately necessaiy for the preservation of the public peace, health and safety; now,
therefore, be it
COMMITTEE AMENDMENT
COMMITTEE AMENDMENT " ti- " to S.P. 960. L.D. 2240 / ^ n17
Sec. 1. Commission established. Resolved: That the Commission to
Recommend Methods for Preventing Deed Fraud in the State, referred to in this resolve as
"the commission," is established.
Sec. 2. Commission membership. Resolved: That, notwithstanding Joint Rule
353, the commission consists of 13 members as follows:
1. Four members appointed by the President of the Senate as follows:
A. Two members of the Senate, including one member of the party holding the largest
number of seats in the Legislature and one member of the party holding the 2nd largest
number of seats in the Legislature;
B, One individual who is a register of deeds in this State; and
C. One individual who is an experienced title attorney in this State;
2. Six members appointed by the Speaker of the House as follows:
A. Three members of the House of Representatives, including 2 members of the party
holding the largest number of seats in the Legislature and one member of the party
holding the 2nd largest number of seats in the Legislature;
B. One individual who represents law enforcement interests;
C. One individual who represents a statewide association representing criminal defense
attorneys; and
D. One individual who represents a statewide association of real estate brokers;
3, The chair of the Real Estate Commission within the Department of Professional and
Financial Regulation, Office of Professional and Occupational Regulation or the chair's
designee;
4. The Secretary of State or the secretary's designee; and
5. The Attorney General or the Attorney General's designee.
Sec. 3. Chairs. Resolved: That the first-named Senate member is the Senate chair
and the first-named House of Representatives member is the House chair of the
commission.
Sec. 4. Appointments; convening of commission. Resolved: That all
appointments must be made no later than 30 days following the effective date of this
resolve. The appointing authorities shall notify the Executive Director of the Legislative
Council once all appointments have been completed. After appointment of all members,
the chairs shall call and convene the first meeting of the commission. If 30 days or more
after the effective date of this resolve a majority of but not all appointments have been
made, the chairs may request authority and the Legislative Council may grant authority for
the commission to meet and conduct its business.
Sec. 5. Duties. Resolved: That the commission shall:
1. Gather information on the practice and prevalence of deed fraud in the State,
including information and data, if available, on the number and characteristics of incidents
of deed fraud and unsuccessful attempts at deed fraud;
2. Examine the sufficiency of state laws and practices related to the following:
COMMITTEE AMENDMENT
COMMITTEE AMENDMENT " (\ " to S.P. 960, L.D, 2240 fS-<
A. Identity verification for the sale of real property located in the State;
B. Notarization and recording of instruments affecting title to real property in the State,
including the requirements for conducting remote notarization;
C. Existing criminal penalties potentially applicable to perpetrators of deed fraud; and
D, Civil remedies available to victims of deed fraud, including processes for nullifying
fraudulently recorded deeds and returning ownership of the property to the rightful
owners; and
3. Gather and review any educational materials regarding the prevention of deed fraud
that are currently available to property owners, real estate brokerage agencies, title
insurance companies, real estate attorneys and other professionals involved in the sale of
real property; examine the sufficiency of these materials; and consider the best methods for
. ensuring that appropriate educational materials are disseminated to property owners and
relevant real estate professionals across the State.
Sec. 6. Staff assistance. Resolved: That the Legislative Council shall provide
necessary staffing services to the commission, except that Legislative Council staff support
is not authorized when the Legislature is in regular or special session.
Sec. 7. Report. Resolved: That, no later than November 6, 2024, the commission
shall submit to the joint standing committee of the Legislature having jurisdiction over
judiciary matters a report that includes the commission's findings and recommendations for
preventing deed fraud in the State, including recommendations for enhanced public
awareness of deed fraud and any suggested legislation for preventing deed fraud, including,
but not limited to, enhancing identity verification requirements for real estate transactions
in the State and for improving the civil and criminal remedies available in the State. The
joint standing committee is authorized to report out legislation related to the report to the
132nd Legislature in 2025.
Emergency clause. In view of the emergency cited in the preamble, this legislation
takes effect when approved,'
Amend the bill by relettering or renumbering any nonconsecutive Part letter or section
number to read consecutively,
SUMMARY
This amendment replaces the bill with a resolve. The amendment establishes the
Commission to Recommend Methods for Preventing Deed Fraud in the State. The
commission must, no later than November 6, 2024, submit to the joint standing committee
of the Legislature having jurisdiction over judiciary matters a report that includes the
commission's findings and recommendations for preventing deed fraud in the State,
including recommendations for enhanced public awareness of deed fraud and any
suggested legislation for enhancing identity verification requirements for real estate
transactions in the State and for improving the civil and criminal remedies available in the
State. The joint standing committee is authorized to report out legislation related to the
report to the 132nd Legislature in 2025.
COMMIHEE AMENDMENT
COMMITTEE AMENDMENT " ^-" to S.P. 960, L.D, 2240 {^IjHl
It also adds an emergency preamble and an emergency clause,
FISCAL NOTE REQUIRED
(See attached)
COMMITTEE AMENDMENT
Revised: 04/01/24 /-^?^
LD 2240 LR 3011(02)
An Act to Implement Protections Against Deed Fraud
Fiscal Note for Bill as Amended by Committee Amendment "Q!I<\.((^IJ
Committee: Judiciary
Fiscal Note Required: Yes
Fiscal Note
Legislative Cost/Study
Legislative Cost/Study
The general operating expenses of this study are projected to be $2,100 in fiscal year 2023-24 and $2,350 in fiscal
year 2024-25. The Legislature's budget for the 2024-2025 biennium includes $14,500 in each of fiscal years 2023-24
and 2024-25 for the costs of legislative studies, as well as $38,909 of balances earned over from prior years for this
purpose. Whether these amounts are sufficient to fund all shidies will depend on the number of studies authorized by
the Legislative Council and the Legislature. The additional costs of providing staffing assistance to the study during
.the interim can be absorbed utilizing existing budgeted staff resources.
Fiscal Detail and Notes
Any additional costs to the Office of the Attorney General,.the Maine Real Estate Commission and the Department of
Secretary of State from the provisions of this bill are expected to be minor and can be absorbed within existing
budgeted resources.
LR3011(02) - Fiscal Note - Page 1 of 1