When legislation is proposed that has the potential to impact our business, the bill is reviewed by a Legislative Committee Team. 

Bills that are relevant but not disruptive are rated Priority 3. Bills that concern title insurance but have an unclear or uncertain impact are rated Priority 2. Priority 2 bills are closely watched by our lobbyists for amendments and the velocity of its progress through the two chamber of the legislature.

Bills that directly impact title insurance, either positively or negatively call for action and are rated Priority 1 by the Legislative Committee. Priority 1 bills are taken up by the Advocacy Committee, our professional lobbyists, and any NYSLTA Committee that may be effected by the bills passage.

Each Priority 1 bill is treated separately.  The action taken may be contacting the bill sponsor to offer guidance, issuing a memorandum in support of in opposition to the bill or providing subject matter expertise.  Priority 1 bills may also involve collaborating with non-title entities such as the Association of County Clerks, the Mortgage Bankers Association, and the Bar Association - to name a few.

The following was originally posted to the ALTA Open Forum Security Buzz.

Cybercriminals are exploiting a system designed for emergencies to steal your personal information. The FBI has issued a warning about a concerning trend: the increasing use of fraudulent emergency data requests (EDRs) by cybercriminals.

EDRs are legitimate tools that law enforcement uses to obtain information from online service providers in urgent situations where there isn't enough time to secure a warrant or subpoena. These requests are usually approved as long as they originate from a valid law enforcement email address.

Unfortunately, cybercriminals are exploiting this process by utilizing hacked police and government email accounts to send fake EDRs. This makes it challenging for companies to verify the authenticity of the requests, placing them in a difficult situation.  

If a company refuses to comply with what appears to be a legitimate request, it could have serious consequences if there is a real emergency. Conversely, if they comply, it may result in the exposure of sensitive customer information to criminals.

Examples of This Scheme in Action:

• Cybercriminals are selling access to hacked .gov email addresses, including US credentials, which they claim can be used for EDRs
• One individual, known as "Pwnstar," is selling fake EDR services, claiming to have access to government emails from over 25 countries
• Another tactic involves the use of forged court-approved subpoenas sent through compromised email accounts
• Cybercriminals are even using Kodex, a platform designed to verify law enforcement requests, to make their fake requests appear more legitimate

Verizon's transparency report indicates a high compliance rate with EDRs, with records being provided in approximately 90% of cases. This highlights the effectiveness of this tactic. Financial institutions and cryptocurrency platforms are particularly concerned about fake EDRs being used to freeze or seize funds.

Takeaways:

• Our data is at risk: All this means our personal information is more vulnerable than ever. It's a stark reminder that cybercriminals are constantly finding new ways to exploit systems, even those designed for emergencies.
• Financial institutions are particularly vulnerable: Banks and cryptocurrency platforms are prime targets for this kind of scam because fake EDRs can be used to steal money directly from customer accounts. It's a wake-up call for these institutions to step up their security measures.

Both law enforcement agencies and companies need to be more vigilant. Law enforcement needs better cybersecurity to protect their systems, and companies need more robust verification processes to weed out these fake requests. This isn't going away anytime soon, so staying ahead of these criminals is an ongoing challenge.

This bill was signed by Governor Hochul and chaptered:

S2271 / A3225

An act to amend the real property law and the civil practice law and rules, in relation to clarifying requirements for acknowledgments, proofs, oaths and affirmations without the state Clarifies requirements for acknowledgements, proofs, oaths and affirmations without the state

These bills were vetoed by Governor Hochul:

S8136A / A9507

Establishes the New York state cryptocurrency and blockchain study task force to provide the governor and the legislature with information on the effects of the widespread use of cryptocurrencies and other forms of digital currencies and their ancillary systems, including but not limited to blockchain technology, in the state.

S8663 / A7241A

An act to amend the executive law, in relation to limiting recordkeeping
and reporting duties of public notaries

Exempt notarial acts as they relate non-electronic notarization, from being recorded or maintained in a notarial record.

S4289A  OBERACKER
Relates to authorizing the county of Otsego to impose an additional mortgage recording tax of 25 cents per $100 of principal debt
Same as A 5167-A Tague
SUMM : Add §253-z, Tax L Authorizes the county of Otsego to impose an additional mortgage recording tax of 25 cents per $100 of principal debt or obligation.

S5780A  OBERACKER
Relates to establishing an additional mortgage recording tax in Chenango county
Same as A 5849-A Gallahan
SUMM : Add §253-z, Tax L Relates to establishing an additional mortgage recording tax in Chenango county; provides for the repeal of such provisions.

S5850C RHOADS
Authorizes Seaford Fire District to file with the county of Nassau assessor an application for a retroactive real property tax exemption
Same as A 5794-C McDonough
SUMM : Authorizes the Seaford Fire District to file with the county of Nassau assessor an application for a retroactive real property tax exemption.

S9291  MAYER
Authorizes the City of White Plains to alienate certain property owned by the City of White Plains and operated as the former Galleria of White Plains public parking garage
Same as A 10208 RULES COM Paulin
SUMM : Amd §§1 & 2, Chap 471 of 2023 Relates to the parcels that may be alienated by the City of White Plains and operated as the former Galleria of White Plains public parking garage.

Two bills were signed by Governor Hochul over the weekend.

A9946  Paulin
Provides for the refund of penalties accrued on certain real property taxes in the town of Scarsdale, county of Westchester
Same as S 9202 MAYER

SUMM : Provides for the refund of penalties accrued on 2023-2024 real property taxes due to the specific failure by the USPS to deliver bills to owners in the town of Scarsdale, county of Westchester

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S8475      HARCKHAM
Authorizes the assessor of the town of New Castle, county of Westchester, to accept an application for a real property tax exemption from the Ethical Society of Northern Westchester
Same as A 8430 Burdick

SUMM : Authorizes the assessor of the town of New Castle to accept an application for a real property tax exemption from the Ethical Society of Northern Westchester; provides a waiver for any interest and penalties accrued in the event that the authorization to exempt is not timely granted.