Summary
Creates rules for notaries to legally witness signatures online using video and requires states and federal courts to accept these digital notarizations.
What problem does this solve?
Rules for online notarization were different in each state, causing confusion and making it hard to use notarized documents across state lines. This bill creates one set of rules for all states to follow for online notarizations, ensuring they are accepted everywhere in the country.
Who does this affect?
- Notaries Public
- Businesses conducting interstate commerce
- Individuals needing legal or financial documents notarized
What does this bill do?
Reference
Text:
Section:
Sec. 4(a)
Header:
Authorization to perform and minimum standards for remote notarization
Allows remote online notarization
Lets notaries legally notarize documents for people anywhere in the world using video chat technology, as long as certain rules are followed.
Requires nationwide acceptance of remote notarizations
Forces all states and federal courts to accept remotely notarized documents from any other state, as long as they meet the law's standards.
Sets security standards for remote notarization
Requires notaries to verify a person's identity using at least two different methods and to create and keep a video recording of the entire notarization for several years.
Reference
Text:
Section:
Sec. 3
Header:
Authorization to perform and minimum standards for electronic notarization
Authorizes the use of electronic documents and signatures
Permits notaries to work with digital documents and use secure electronic signatures instead of paper and ink.
Prohibits notaries from giving legal advice
Forbids notaries who are not lawyers from using terms like "notario publico" or advertising that they can help with legal or immigration matters.
Reference
Text:
Section:
Sec. 10(a)
Header:
State standards of care; authority of state regulatory officials
Preserves state authority to regulate notaries
Allows states to continue setting their own rules for who can become a notary and to add extra requirements for remote notarizations.
What is the real world impact?
•
Modernizes business and legal transactions
Updates the notarization process for the digital age, making it faster and easier for people and businesses to complete transactions, especially when parties are in different states. This helps commerce flow more smoothly across the country.
•
Creates new security risks for legal documents
Allows notarization without being physically present, which could make it easier for fraud or identity theft to occur. Critics may argue that verifying identity over video is not as secure as checking documents in person.
When does this start?
Takes effect as soon as it is signed into law, but includes specific deadlines for keeping records.
Video recording retention
Requires notaries to keep the video recording of a remote notarization for at least 5 to 10 years, depending on state law.