SB 696

Bill Subjects

Abstract

Existing law authorizes the Secretary of State to appoint and commission notaries public in the number the Secretary of State deems necessary for the public convenience. Existing law requires a notary public to keep one active sequential journal at a time of all official acts performed as a notary public. Existing law authorizes notaries public to act as notaries in any part of the state and prescribes the manner and method of notarizations. Existing law establishes various requirements to ensure the security of notary seals and imposes a civil penalty for a violation of those provisions. This bill would give effect to a notarial act performed in another state, under the authority and within the jurisdiction of a federally recognized Indian tribe, under federal law, or under the authority and within the jurisdiction of a foreign state, as if it were performed by a notarial officer of this state, if specified conditions are met. This bill would authorize a notary public or an applicant for appointment as a notary public to apply for registration with the secretary to be a notary public authorized to perform online notarizations by submitting an application that meets certain requirements. The bill would also require an entity to register with the Secretary of State as an online notarization platform or depository before providing an online notarization system or depository, as defined, to an online notary public. The bill would require a representative of an online notarization platform to certify compliance with applicable laws under penalty of perjury. The bill also creates a civil cause of action against an online notarization platform or depository for a violation of those laws. The bill would require the Secretary of State to develop an application for registration and establish rules to implement the bill. This bill would authorize the Secretary of State to charge an applicant a fee for an application for registration in an amount necessary to administer the bill's provisions related to online notarizations. The bill would authorize an online notary public to perform notarial acts and online notarizations by means of audio-video communication. The bill would specify that any state law requirement that a principal, as defined, appear before or in the presence of the notary public shall be satisfied by appearing by means of audio-video communication before a notary public authorized to perform online notarization in compliance with specified requirements. The bill would establish various requirements applicable to an online notary public, including requiring an online notary public to record each online notarial act performed by the notary public in one tangible sequential journal and one or more secure electronic journals, as specified, requiring an electronic notarial certificate to be in a specified form that is required to be signed under penalty of perjury, and requiring an online notary public to take all necessary measures to disable the electronic affixation of the notary public's electronic signature or seal upon termination of a commission, as specified. The bill would require a manufacturer or vendor of the notary public's electronic seal to apply to the Secretary of State to be assigned an identification number, as specified. This bill would establish various requirements applicable to an online notarization platform, including prohibiting an online notarization platform or depository from accessing, using, sharing, selling, disclosing, producing, providing, releasing, transferring, disseminating, or otherwise communicating the contents of an online notarial act, with specified exceptions. The bill would also make other conforming changes. The bill would impose requirements for ensuring the security of an electronic signature or electronic seal and would make a violation of those provisions subject to civil penalties. The bill would make a violation of those provisions grounds for refusal or revocation of a commission as a notary public. This bill would specify that a business, as defined, commencing on January 1, 2025, consents to the jurisdiction of the courts of California for transactions related to an individual for whom a remote online notarial act is performed who has represented to the business that they are located in California. For these transactions, the bill would require a business to comply with specified requirements, including creating an encrypted electronic journal entry for each remote online notarial act and an audio-video recording of the audio-video communication of each remote online notarial act facilitated by the business. The bill would also create a civil cause of action against a business for a violation of those laws. This bill would make it a misdemeanor for any person who, without authorization, knowingly obtains, conceals, damages, or destroys the certificate, disk, coding, card, program, software, or hardware enabling an online notary public to affix an official electronic signature or seal. The bill would make it a misdemeanor for an online notary public to willfully fail or refuse to either retain the electronic journal for 10 years after the performance of the last notarial act chronicled in the electronic journal or deliver all notarial records and papers to the Secretary of State within 30 days of when the online notary public resigns, is disqualified, is removed from office, or allows the online notary public's registration to expire. By creating new crimes, and by expanding the scope of the existing crime of perjury, this bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.