RULES AND REGULATIONS
Title 19--CORPORATIONS
AND BUSINESS ASSOCIATIONS
DEPARTMENT OF STATE
[19 PA. CODE CH. 3]
UCC Fees
[31 Pa.B. 4405] The Secretary of the Commonwealth amends § 3.30 (relating to Uniform Commercial Code) pertaining to filings under 13 Pa.C.S. §§ 1101--9507 (relating to the Uniform Commercial Code) (UCC) by revising certain fees of the Department of State (Department) to read as set forth in Annex A.
Purpose and Need for the Amendment
Section 9525(d) of the Uniform Commercial Code Modernization Act of 2001, 13 Pa.C.S. § 9525(d) (Act 2001-18) requires the Department to promulgate regulations that establish UCC filing fees sufficient to generate revenue equivalent to the amounts collected by the counties from UCC filings in calendar year 2000 and the general fund from UCC filings in Fiscal Year 1999-2000. These fee regulations are intended to hold the general fund fiscally harmless and all of the counties fiscally harmless when taken in the aggregate. The fees for UCC filings made at the Department are being increased substantially to account for the elimination by section 18 of Act 2001-18, of the 75% that the general fund currently receives from UCC filings made with the county prothonotary offices provided for under 15 Pa.C.S. § 153(a)(8)(vi) (relating to fee schedule).
The following table outlines the affected application fees and proposed changes:
Proposed Current Service Fee Fee Financing statement filed with the county recorder of deeds office $95 $59.50 Financing statement filed with the Department of State $84 $12 per debtor name The current fees are in 15 Pa.C.S. § 153(a)(8)(i) for the Department and the basic county fee. The county fee has been increased to reflect the provisions of 15 Pa.C.S. § 153(a)(8)(vii) which provides for the increase of the county fee, beginning on January 1, 1994, by the percentage of increase in the Consumer Price Index for Urban Workers for the immediate preceding calendar year.
Public notice of intention to amend the section under the procedures specified in sections 201 and 202 of the act of July 31, 1968 (P. L. 769, No. 240) (45 P. S. §§ 1201 and 1202) (CDL) has been omitted as authorized under section 204(3) of the CDL (45 P. S. § 1204(3)), because the Department finds that these procedures are, under the circumstances, unnecessary. Public comment is unnecessary because section 9525(d) of Act 2001-18 requires the Department to promulgate the fee regulation and specifically states that changes in the fees shall be promulgated as a final regulation with proposed rulemaking omitted as provided for in the Regulatory Review Act (71 P. S. §§ 745.1--745.14).
Compliance with Executive Order 1996-1
The Department reviewed this rulemaking under the directives of Executive Order 1996-1. Given that under section 9525(d) of Act 2001-18 the Department is mandated to promulgate the fee regulation and that the rulemaking must be promulgated as a final regulation with proposed rulemaking omitted, the Department has concluded that the regulation complies with the order.
Statutory Authority
The amendments are mandated under section 9525(d) of Act 2001-18.
Fiscal Impact and Paperwork Requirements
This rulemaking is intended to prevent an adverse fiscal impact on the Commonwealth and the counties when taken in the aggregate. Based upon an analysis of the county filing fees in calendar year 2000, provided by the Governor's Office of the Budget based upon figures supplied by the Department of Revenue, it has been determined that the counties are held fiscally harmless, in the aggregate, with a recorder of deeds fixture filing fee of $95. However, while the counties are held fiscally harmless in the aggregate with this proposed fee, the majority of counties (41) will experience a reduction in revenues. Of these losses, estimated losses range from a low of $184 to a high of $16,650. To avoid all possible losses to individual counties, a recorder of deeds fixture filing fee of $286 would be necessary. To hold the general fund fiscally harmless to offset the elimination of the 75% of the county fees that are remitted to the Commonwealth, a State UCC financing statement fee of $84 must be established. Overall, the rulemaking will benefit the Commonwealth and the counties by helping the Commonwealth to avoid a loss of about $9.3 million per year and an estimated $1.3 million loss for the counties.
While these fees will have a fiscal impact on those members of the private sector who file financing statements under the provisions of the UCC, this outcome is unavoidable based upon the statutory requirements of section 9525(d) of Act 2001-18.
This rulemaking imposes no additional paperwork requirements upon the Commonwealth, political subdivisions or the private sector.
Regulatory Review
Under section 5.1(c) of the Regulatory Review Act (71 P. S. § 745.5a(c)), the Department submitted a copy of the final-omitted regulation on June 26, 2001, to the Independent Regulatory Review Commission (IRRC) and the Chairpersons of the House State Government Committee and the Senate State Government Committee. On the same date, the final-omitted regulation was submitted to the Office of Attorney General for review and approval under the Commonwealth Attorneys Act (71 P. S. §§ 732-101--732-506).
In accordance with section 5.1(d) and (e) of the Regulatory Review Act, the final-omitted regulation was deemed approved by the House and Senate Committees on July 16, 2001. Under section 5.1(e) of the Regulatory Review Act, IRRC met on July 26, 2001, and approved the final-omitted regulation. A copy of the material is available to the public upon request.
Additional Information
Individuals who desire information are invited to submit inquiries to Ken Rapp, 308 North Office Building, Harrisburg, PA 17120-0029, (717) 783-9210.
Findings
The Secretary finds that:
(1) Public notice of the Department's intention to amend its regulation as adopted by this order, under the procedures specified in sections 201 and 202 of the CDL, has been omitted under the authority contained in section 204(3) of the CDL because the Department has, for good cause, found that the procedures specified in sections 201 and 202 of the CDL are in this circumstance, unnecessary because section 9525(d) of Act 2001-18 mandates the Department to promulgate the fee regulation and that the rulemaking must be promulgated as a final-omitted regulation.
(2) The amendment of the regulation of the Department in the manner provided in this order is necessary and appropriate for the administration of its authorizing statute.
Order
The Secretary, acting under her authorizing statute, orders that:
(a) The regulations of the Department, 19 Pa. Code Chapter 3, are amended by amending § 3.30 to read as set forth in Annex A.
(b) The Secretary of the Commonwealth shall submit this order and Annex A to the Office of General Counsel and the Office of Attorney General for approval as to form and legality as required by law.
(c) The Secretary of the Commonwealth shall certify this order and Annex A and deposit them with the Legislative Reference Bureau as required by law.
(d) This order shall become effective immediately upon publication in the Pennsylvania Bulletin.
KIM PIZZINGRILLI,
Secretary of the Commonwealth(Editor's Note: For the text of the order of the Independent Regulatory Review Commission, relating to this document, see 31 Pa.B. 4503 (August 11, 2001).)
Fiscal Note: 16-27. No fiscal impact; (8) recommends adoption.
Annex A
TITLE 19. CORPORATIONS AND BUSINESS ASSOCIATIONS
PART I. DEPARTMENT OF STATE
Subpart A. PRELIMINARY PROVISIONS
CHAPTER 3. FEES AND CHARGES
FEES § 3.30. Uniform Commercial Code.
(a) The fee for filing a financing statement with the Department of State under 13 Pa.C.S. (relating to the Uniform Commercial Code) is $84 regardless of the number of debtors or pages.
(b) The fee for filing a financing statement with the county recorder of deeds offices under 13 Pa.C.S. (relating to Uniform Commercial Code) is $95 regardless of the number of debtors or pages.
[Pa.B. Doc. No. 01-1454. Filed for public inspection August 10, 2001, 9:00 a.m.]
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