ARIZONA
HOUSE OF REPRESENTATIVES
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SB 1030: remote online notarization; registration |
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PRIME SPONSOR: Senator Leach, LD 11 BILL STATUS: House Engrossed
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Outlines the procedures for remote online
notarization.
History
Notary public duties include:
1. Taking acknowledgments and giving certificates of the acknowledgments endorsed on or attached to the instrument;
2. Administering oaths and affirmations;
3. Performing jurats;
4. Performing copy certification;
5. Keeping, maintaining and protecting, as a public record, a journal of all acts performed by the notary;
6. Providing and keeping the official seal that is imprinted in dark ink with the words "notary public", the name of the county in which the notary is commissioned, the name of the notary as it appears on the notarial application, the great seal of the state of Arizona, the notarial commission number and the expiration date of the notarial commission;
7. Authenticating with the official seal all official acts on every certificate or acknowledgement signed and sealed by the notary; and
8. Responding to any requests for information and complying with any investigations that are initiated by the Secretary of State or Attorney General (A.R.S. § 41-313).
In current statute, a notary public is required to keep a paper journal and shall only keep one journal at a time unless one or more entries in a notary public's journal are not public records. If there are one or more entries in a journal that are not public record then there may be one journal that contains entries that are not public records and one journal that contains entries that are public record (A.R.S. § 41-319).
Provisions
1. Specifies that if a notary public only keeps one journal, that journal is presumed to be a public record. (Sec. 1)
2. States that if there are one or more entries in a journal that are not public record then there shall be one journal that contains entries that are not public records and one journal that contains entries that are public record. (Sec. 1)
3. Authorizes the Secretary of State to require a notary public to attend a notary training course instead of or in addition to a suspension. (Sec. 2)
4. Stipulates that if a person appeals the denial of an application for notary public commission, that person may not submit a new application for consideration while the appeal is pending. (Sec. 2)
5. Specifies that if a person has had a notary commission in this state revoked, the person may not submit a new application for a notary commission for one year after the date of the revocation. (Sec. 2)
6. States that upon the denial of an application of a notary public's commission, the Secretary of State is required to give notice to the person and provide them with notice of the opportunity for a hearing on the denial. (Sec. 2)
7. Classifies the denial of an application of a notary public's commission as an appealable agency action. (Sec. 2)
8. Defines various terms related to remote online notarization. (Sec. 3)
9. Requires the Secretary of State, on or before July 1, 2020, to adopt rules to facilitate remote online notarizations. (Sec. 3)
10. Specifies that the rules adopted by the Secretary of State must include sufficient forms of notarial certificates for remote online notarizations and standards for applications and registration, communication technology, credential analysis, identity proofing and retention of the audio and visual recording prescribed this Act. (Sec. 3)
11. Allows the Secretary of State to review and consider standards by national standard-setting organizations. (Sec. 3)
12. Authorizes a notary public who is physically located in this state and who is authorized to perform remote online notarizations by the Secretary of State to perform a notarial act by means of communication technology for a remotely location individual who is physically located:
a. In this state;
b. Outside this state but not outside the United States; or
c. Outside the United States if:
i. The electronic record is either to be filed with or relates to a matter before a court, government entity, public official or other entity subject to the United States or involves property that is located in the territorial jurisdiction of the United States or a transaction substantially connected to the United States; and
ii. The notary public has no actual knowledge that the act of making the statement or signing the electronic record is prohibited by the foreign state in which the remotely located individual is located. (Sec. 3)
13. Requires a notary public to record each remote online notarial act performed by the notary public in chronological order in one or more journals maintained in a permanent, tamper-evident electronic format that complies with the rules of the Secretary of State. (Sec. 3)
14. Prohibits a notary public from recording a remote online notarial act in a paper journal. (Sec. 3)
15. Outlines that a journal entry must include:
a. The date and time of the notarial act;
b. A description of the record and type of the notarial act;
c. The full name and address of each individual for whom the remote online notarial act is performed;
d. If the identity of the individual is based on personal knowledge, a statement to that effect;
e. If the identity of the individual is based on credential analysis and identity proofing, a brief description of the results of the identity verification process and the identification credential presented, including the date of issuance and expiration of the identification credential but not its serial or identification number.
f. If the identity of the individual is based on an oath or affirmation of a credible witness, the information required is with respect to the witness;
g. A fee, if any, charged by the notary public. (Sec. 3)
16. Requires the notary public, or a person acting on behalf of the notary public, to create an audio and visual recording of the performance of each remote online notarial act. (Sec. 3)
17. Stipulates that a notary public must take reasonable steps to:
a. Ensure the integrity, security and authenticity of remote online notarizations;
b. Maintain a backup of the audio and visual recording required by this Act and an electronic journal kept by the notary public outlined in this Act;
c. Protect the required backup from unauthorized use. (Sec. 3)
18. States that a notary public or guardian, conservator, agent or personal representative of the notary public, must retain an electronic journal kept by the notary public and audio and visual recording or cause the journal and recording to be retained by a depository designated by or on behalf of the person required to retain the journal or recording. (Sec. 3)
19. Asserts that the journal and audio and visual recordings be retained for at least five years after the date of the remote online notarial act. (Sec. 3)
20. Outlines the sections of statute that electronic journals kept by the notary public are subject to. (Sec. 3)
21. Requires a notary public to attach or logically associate the notary public's electronic signature and electronic seal to the notarial certificate in a tamper-evident format. (Sec. 3)
22. Mandates that the electronic seal must be capable of being copied together with the electronic record to which it is attached or with which it is logically associated. (Sec. 3)
23. Specifies that the notarial certificate must be attached to or logically associated with the electronic record that is the subject of the remote online notarial act. (Sec. 3)
24. Stipulates that if the Secretary of State establishes standards for attaching or logically associating the electronic signature, electronic seal or notarial certificate, the process must conform to the standards. (Sec. 3)
25. State that notary public's use of an electronic seal satisfies statute requirements relating to the authentication of the official seal of all official acts on every certificate or acknowledgment signed and sealed by the notary. (Sec. 3)
26. Requires the notary public to take reasonable steps to protect the notary public's electronic seal from unauthorized use. (Sec. 3)
27. Prohibits a notary public from allowing another person to use the notary public's electronic seal. (Sec. 3)
28. States that a notary public shall immediately notify an appropriate law enforcement agency and the Secretary of State on actual knowledge of the theft or vandalism of the notary public's electronic seal or electronic journal. (Sec. 3)
29. Specifies that a notary public shall immediately notify the Secretary of State on actual knowledge of the loss or use by another person of the notary public's electronic seal or electronic journal. (Sec. 3)
30. States that an electronic seal for electronic notarization is not a violation of statute which prohibits a notary public from possessing more than one official seal. (Sec. 3)
31. Instructs a notary public, before performing a remote online notarization, to:
a. Reasonably confirm that an electronic record before the notary public is the same electronic record in which the remotely located individual made a statement or on which the remotely located individual executed or adopted a signature; and
b. Take reasonable steps to ensure that the communication technology used in the remote online notarization is secure from unauthorized interception. (Sec. 3)
32. Outlines that a notary public can verify the identity of an individual by:
a. The notary public's personal knowledge of the individual;
b. Each of the following:
i. The individual's remote presentation of an identification credential that constitutes satisfactory evidence of identity as defined in statute;
ii. Credential analysis of the identification credential; and
iii. Identity proofing of the individual;
c. The oath or affirmation of a credible witness with personal knowledge of the individual who appears before and is identified by the notary public either:
i. Through satisfactory evidence of identity as defined in statute while in the physical presence of the notary public; or
ii. As a remotely located individual. (Sec. 3)
33. Authorizes a notary public to:
a. Require a remotely located individual to provide additional information necessary to assure the notary public of the identity of the individual; and
b. Refuse to perform a remote online notarization if the notary public is not satisfied as to the identity of the remotely located individual. (Sec. 3)
34. Allows a translator to be a remotely located individual if the translator, signer and notary public communicate by means of communication technology. (Sec. 3)
35. Authorizes a notary public to request satisfactory evidence for each notarization for individuals that receive remote online notarizations from the same notary public within a six-month period. (Sec. 3)
36. Requires the notarial certificate for a remote online notarization to indicate that the notarial act was a remote online notarization performed by means of communication technology. (Sec. 3)
37. Specifies that a notarial certificate is sufficient to indicate that the notarial act was a remote online notarization performed by means of communication technology if it either:
a. Complies with rules adopted in statute; or
b. Is in a form otherwise sufficient under the laws of this state and contains the statement: "this remote online notarization involved the use of communication technology". (Sec. 3)
38. Mandates that if a notary public who is authorized to perform remote online notarizations and whose commission is terminated, then the means that enable the notary public to attach or logically associate the notary public's electronic signature and an electronic seal to an electronic record must be destroyed. (Sec. 3)
39. Stipulates that upon the death or adjudication of incompetency of a notary public, the notary public's personal representative or guardian must comply with the destruction of the means that enable the notary public to attach or logically associate the notary public's electronic signature and an electronic seal to an electronic record must be destroyed. (Sec. 3)
40. Specifies that if a notary public whose commission terminated for a reason other than revocation or denial of renewal is not required to destroy the means that enable the notary public to attach or logically associate the notary public's electronic signature and an electronic seal to an electronic record if the former notary public is recommissioned within three months after the termination. (Sec. 3)
41. Exempts a notary public's electronic seal from being subject to being delivered by certified mail or other means providing a receipt to the Secretary of State upon the resignation or revocation of a notarial commission or the death of a notary public. (Sec. 3)
42. Specifies that the termination of a notary public's commission does not affect the retention requirements outlined in statute. (Sec. 3)
43. States that a remote online notarization satisfies any law of this state that requires an individual to appear before, appear personal before or be in the presence of a notary public at the time of the performance of a notarial act. (Sec. 3)
44. Stipulates that a notary public's verification of a remotely located individual satisfies any law of this state that requires the notary public to obtain satisfactory evidence of identity of the individual for a remote online notarization. (Sec. 3)
45. Specifies that the failure of a notary public to perform a duty or meet a requirement prescribed in this Act does not invalidate a remote online notarial act performed by the notary public. (Sec. 3)
46. Stipulates that an aggrieved person is not prevented from seeking to invalidate the electronic record or transaction that is the subject of the remote online notarial act or from seeking other remedies based on state or federal law, despite a valid remote online notarial act. (Sec. 3)
47. States that a purported remote online notarial act that is performed by an individual who is not authorized to perform remote online notarial acts is not validated by this Act. (Sec. 3)
48. Specifies that the validity of a remote online notarization is determined by applying the laws of the state regardless of the physical location of the remotely located individual at the time of the remote online notarization. (Sec. 3)
49. States that a notary public who is authorized to perform remote online notarizations is subject to and must comply with the laws set forth for administrative officers excepts as modified or supplemented by the Remote Online Notarization Act. (Sec. 3)
50. Asserts that if there is a conflict between the remote online notarization act and any other law of this state then this Act prevails. (Sec. 3)
51. Outlines the relation between the remote online notarization act and the electronic signatures in global and national commerce act. (Sec. 3)
52. States that a notarial certificate on the electronic record is complete without the imprint or perceivable image of the notary's seal if:
a. The electronic record is signed in the presence of a notary; and
b. The notary reasonably verifies that the electronic signature on the electronic record is the electronic signature executed or adopted by the signer or issued to the signer. (Sec. 4)
53. Requires the words "notary public" within the electronic record electronically signed by the notary. (Sec. 4)
54. Assert that this Act is effective from and after June 30, 2020. (Sec. 5)
55. Makes technical changes. (Sec. 1, 2, 4)
56.
57.
58. ---------- DOCUMENT FOOTER ---------
59. Fifty-fourth Legislature SB 1030
60. First Regular Session Version 3: House Engrossed
61.
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