Federal legislation that would authorize recognition and acceptance of
The SECURE Notarization Act of 2023 passed on a bipartisan basis by voice vote after Reps. Kelly Armstrong, R-N.D., and Madeleine Dean, D-Pa. reintroduced the bill mid February. An additional 29 co-sponsors from both Republican and Democratic parties signed onto the bill.
Advocates for national RON adoption are hoping the third time is the charm for the Securing and Enabling Commerce Using Remote Electronic Notarization Act, which was
As in previous versions, the latest iteration of the SECURE Act would allow notaries public to perform notarizations remotely, thereby permitting parties unavailable to attend an in-person meeting, such as overseas military personnel, to securely sign official documents. Notary and signer would both be required to communicate by sight and sound using authorized means and devices.
The proposed new law would also set minimum security standards for electronic notarizations, the bill's sponsors said.
While RONs were already allowed in a handful of states prior to 2020, the COVID-19 pandemic accelerated acceptance by necessity when in-person interaction was prohibited in many jurisdictions. Currently, 43 states and the District of Columbia have laws in their books permanently allowing for and recognizing the validity of remote online notarizations, according to the American Land Title Association. The federal SECURE Act would codify RONs into law and mandate recognition of signatures across state borders.
News of the latest bill's path through the House was welcomed by housing industry trade groups, who have long advocated for some form of national RON legislation.
"Too many Americans are left behind by our current system, which can delay the execution of important documents — such as closing documents for the purchase of a home — simply because someone is unable to visit a notary in person," said American Land Title Association CEO Diane Tomb in a press release. "We are grateful for the leadership of Representatives Dean and Armstrong in getting this bill through the House."
Noting that the minimum standards in the law were consistent with model state legislation offered by his organization and ALTA, as well as guidelines set forth by the Mortgage Industry Standards Maintenance Organization, Mortgage Bankers Association President and CEO Bob Broeksmit said the bill would help protect against fraud and make mortgage closings more convenient for consumers.
"The bill also complements existing state laws by providing state officials with the flexibility and freedom to implement their own RON standards," he said in a statement.
But support for a national RON law hasn't been universal, with criticism coming from some key states, notably California. Its leaders specifically cited preemptions of state laws as their reasons for opposition, with Attorney General Rob Bonta calling last year's proposed bill a "blunt object" that would force reciprocity resulting in "a race to the bottom regarding consumer protections" in a
But among the co-sponsors of the proposed new law was Rep.Young Kim, a Republican hailing from California.
The current version of the SECURE Act will likely encounter some of the same challenges and concerns surrounding preemption that contributed to the previous bills languishing in the Senate, said Tim Reiniger, former executive director of the National Notary Association.
"The issue, to be precise here, is the drafters expressly put in a provision that would prevent states from issuing technology-specific standards," he said.
"The practical effect for a notary is that instead of just having to meet a technology standard set by their state that will be applied for all material acts for all user groups and sectors, the notary would have to look to comply with a technology standard set by MISMO or ALTA for one set of documents," he said.
When notarizing other types of legal forms, another standard or set of technology might apply, which could quickly escalate notary expenses, he added.
"The issue with preemption is going to have to be resolved," Reiniger said. "I think it's causing trouble for the SECURE Act right now unless it's amended."
While RON developments make their way through Congress, amended state laws regarding remote notarizations are also being introduced this year. Changes in New York policy now give authorization to all notaries registered with the state to perform electronic notarizations.
New York rules now also require notarial journals to be kept for a minimum of 10 years, with documentation of key details including names, addresses and type of verification used. The new regulation means the use of remote ink notarization, where a paper document is produced and transmitted following an electronic signing, is now prohibited.
