Introduced

SB 578 - This act provides processes for the recorder of deeds to record electronic documents and procedures for remote online notarization.

If a document is required by law to be an original, on paper, or in writing for the purpose of recording, the document may be in electronic form. Furthermore, a requirement of notarization for a document or signature is satisfied if the electronic signature of the authorized person is attached to or logically associated with the document or signature. This act also allows satisfaction of the document requirements if a paper copy of an electronic document bearing an electronic signature along with all other required information is certified by a notary. The form and requirements of such certification are provided for in this act. The notary shall confirm that the electronic document contains an electronic signature that is capable of independent verification, shall personally print or supervise the printing of the document, and shall not make any changes to the document.

A document conveying real property, recorded by a clerk, and not certified by a notary according to the act shall put third persons on notice of the conveyance and is effective as if the document had been certified. The act does not apply to the recording of certain plats, maps, or surveys of real property. For the purposes of proving or acknowledging a written instrument affecting real property by an officer, a person may appear before the officer by physical presence or by means of communication technology, as defined in the act.

Within a year of the enactment of this act, the Secretary of State shall adopt rules regarding the facilitation and standards of remote online notarizations, including credential analysis and identity proofing. In order to perform remote online notarizations, a notary public shall register with the Secretary and fulfill certain requirements as described within the act. A remote online notary public may perform notarial acts using communication technology for certain remotely located individuals.

The notary shall keep a secure electronic journal containing certain information of each notarial act and shall create an audio and video recording of the performance of the notarial act. Both the journal and recording shall be backed-up, protected from unauthorized use, and maintained for at least ten years after the act. The Secretary of State shall establish standards for the retention of the recording, procedures for preservation of the recording and journal in case the notary's commission or authority is terminated, and standards for third party repositories for the retention of the recording.

A remote online notary public shall not allow another person to use the electronic record, signature, or seal. A remote online notary public shall immediately notify appropriate law enforcement agencies and the Secretary of State of any theft, vandalism, or unauthorized use of his or her electronic record, signature, or seal.

The notary public can only perform remote online notarizations while he or she is physically located within the state. The notary public shall verify the identity of a person creating an electronic signature at the time the signature is taken and shall take reasonable steps to ensure the security of the two-way video and audio communication. The electronic notarial certificate for the remote online notarization shall state that notarization is a remote online notarization. The remote online notary or employer of the notary may charge a fee for notarization as long as that fee is disclosed prior to providing the notarization.

Unless the remote online notary public reregisters within three months following termination, a notary whose registration has terminated is required to destroy those items that enable the electronic affixation of the electronic signature or seal and certify the compliance of such to the Secretary of State.

A person who knowingly obtains, conceals, damages, or destroys without authorization the items that enable the affixation of an official electronic signature or seal shall be guilty of a Class D misdemeanor.

For an acknowledgment or jurat, the form shall indicate that the person signing or taking the oath appeared using communication technology. The Secretary of State shall adopt rules detailing the forms for an acknowledgment or jurat performed online. Additionally, the Secretary of State shall promulgate any other rules necessary to administer the provisions of this act.

The effective date of this act is July 1, 2021.

This act is similar to SB 409 (2019), SB 1002 (2018), and HCS/HB 2506 (2018).

KATIE O'BRIEN


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