Michael R. Wilson

This administrative regulation establishes filing office procedures related to UCC search requests, reports, and copies.

This administrative regulation is necessary to comply with KRS 355.9-526 by establishing clarity and uniformity with regard to UCC search requests, reports, and copies.

The administrative regulation conforms to the authorizing statutes by establishing filing office rules consistent with KRS Chapter 355, Article 9, and model UCC regulations.

This administrative regulation assists with the effective administration of Article 9 of KRS Chapter 355 by establishing clearly defined procedures with regard to UCC search requests, reports, and copies.

This amendment modifies existing language to harmonize regulatory language with filing office procedures, authorizing statutes, KRS Chapter 355, Article 9, and model UCC regulations. The amendment also establishes when a search may be certified and the cost, if any, for copies of individually identified UCC documents.

This amendment is necessary to accurately reflect filing office practices, to accurately reflect UCC index search logic, to accurately reflect search report contents, to comply with KRS Chapter 13A, and to describe how copies may be provided and the corresponding costs, if any.

This amendment conforms to the content of the authorizing statute by clarifying procedures related to UCC search requests, reports, and copies of individually identified UCC documents. (d) How the amendment will assist in the effective administration of the statues: This amendment provides clarity and certainty with regard to UCC search requests, reports, and obtaining copies of individually identified UCC documents.

This amendment affects the Office of the Secretary of State and any individual, business, organization, or governmental entity that conducts a search of UCC records.

The Office of the Secretary of State already utilizes many of the procedures identified in this regulation. Users of services referenced will not have to take any additional action, but they may experience either a fee elimination or fee increase depending on whether they request electronic or paper copies of UCC documents. Individuals or entities identified in question (3) may need to familiarize themselves with the contents of this regulation if they are conducting a UCC records search.

This amendment eliminates two current fees for obtaining copies of a UCC record in an electronic format, i.e., a $.10 per page fee for regular copies and a $.050 per page fee for certified copies. The vast majority of current requestors are seeking regular or certified copies in an electronic format. These individuals or entities will see a fee decrease. Entities or individuals that request non-certified paper copies of individual UCC documents will see a fee increase from $.10 per page to $.050 per page.

This regulation provides uniformity and certainty with regard to UCC search requests, reports, and obtaining copies of individually identified UCC documents. Electronic copies of individually identified documents will be made available at no cost to the requesting party. (5) Provide an estimate of how much it will cost to implement this administrative regulation:

There will be minimal to no cost to implement this administrative regulation.

There will be minimal to no costs to implement this administrative regulation on a continuing basis.

If any costs were to be identified, existing appropriations and fund sources for the Office of the Secretary of State would be utilized. (7) Provide an assessment of whether an increase in fees or funding will be necessary to implement this administrative regulation, if new, or by the change, if it is an amendment: An increase in fees or funding will not be necessary to implement this administrative regulation. (8) State whether or not this administrative regulation establishes any fees or directly or indirectly increases any fees: This administrative regulation amendment eliminates two current fees for obtaining copies of a UCC record in an electronic format, i.e., a $.10 per page fee for regular electronic copies and a $.050 per page fee for certified electronic copies. The vast majority of current requests are seeking regular or certified copies in an electronic format. Entities or individuals that request non-certified paper copies of individual UCC documents will see a fee increase from $.10 per page to $.050 per page.

Tiering was not applied in this administrative regulation because any potential tiering would be inconsistent with the article it implements and model UCC regulations.

This administrative regulation is required by KRS 355.9-526.

This administrative regulation will not generate any additional revenue for state or local governments during the first year.

This administrative regulation will not generate any additional revenue for state or local governments during subsequent years of implementation.

There will be minimal to no additional cost to administer this program for the first year.

There will be minimal to no additional cost to administer this program in subsequent years.