BILL ANALYSIS                                                                                                                                                                                                    Ó



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          Date of Hearing:  April 26, 2016


                   ASSEMBLY COMMITTEE ON BUSINESS AND PROFESSIONS


                                  Rudy Salas, Chair


          AB 2217  
          (Hadley) - As Introduced February 18, 2016


          SUBJECT:  Notary public:  service fees.


          SUMMARY:  Revises the current statutory fee cap to allow  
          certified notaries public to increase fees for specified  
          services.


          EXISTING LAW:


          1)Authorizes the Secretary of State (SOS) to appoint and  
            commission notaries public who have met specified education,  
            examination, and ethical requirements.  (Government Code (GOV)  
            Section 8200- 8201.5)


          2)Provides that fees charged by a notary public for the  
            following services shall not exceed the fees prescribed by  
            this section:  


             a)   For taking an acknowledgment or proof of a deed, or  
               other instrument, to include the seal and the writing of  
               the certificate, the sum of $10 for each signature taken;
             b)   For administering an oath or affirmation to one person  








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               and executing the jurat, including the seal, the sum of  
               $10;


             c)   For all services rendered in connection with the taking  
               of any deposition, the sum of $20, and in addition thereto,  
               the sum of $5 for administering the oath to the witness and  
               the sum of $5 for the certificate to the deposition;


             d)   No fee may be charged to notarize signatures on vote by  
               mail ballot identification envelopes or other voting  
               materials;


             e)   For certifying a copy of a power of attorney under  
               Probate Code Section 4307 in the sum of $10; and,


             f)   In accordance with Section 6107, no fee may be charged  
               to a United States military veteran for notarization of an  
               application or a claim for a pension, allotment, allowance,  
               compensation, insurance, or any other veteran's benefit.   
               (GOV Section 8211)


          3)A notary public who holds himself or herself out as being an  
            immigration specialist, immigration consultant, or any other  
            title or description reflecting an expertise in immigration  
            matters shall not advertise in any manner whatsoever that he  
            or she is a notary public.  (GOV Section 8223(a))
          4)A notary public qualified and bonded as an immigration  
            consultant under Business and Professions Code Section 22440  
            may enter data, provided by the client, on immigration forms  
            provided by a federal or state agency.  The fee for this  
            service shall not exceed $10 per individual for each set of  
            forms.  If notary services are performed in relation to the  
            set of immigration forms, additional fees may be collected  
            pursuant to GOV Section 8211.  This fee limitation shall not  








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            apply to an attorney, who is also a notary public, who is  
            rendering professional services regarding immigration matters.  
             (GOV Section 8223(b))


          THIS BILL:


          5)Authorizes notaries public to increase fees for specified  
            services, listed below:


             a)   Revises maximum fee for taking an acknowledgment or  
               proof of a deed, or other instrument from $10 to $15  
               dollars for each signature taken.
             b)   Revises maximum fee for administering an oath or  
               affirmation to one person and executing the jurat from $10  
               to $15.


             c)   Revises maximum fee for services rendered in connection  
               with the taking of any deposition from $20 to $30, from $5  
               to $7 for administering the oath to the witness, and from  
               $5 to $7 for the certificate to the deposition.


             d)   Revises maximum fee for certifying a copy of a power of  
               attorney from $10 to $15.


             e)   Maintains that no fees shall be charged for voting  
               materials or to veterans for specified services.


          6)Revises maximum fee for notary publics qualified and bonded as  
            an immigration consultant to enter data on immigration forms  
            from $10 to $15.
          FISCAL EFFECT:  None. This bill is keyed non-fiscal by the  
          Legislative Counsel. 








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          COMMENTS:


          Purpose.  This bill is sponsored by the author.  According to  
          the author, "Notaries Public are small businessmen and women who  
          provide an essential service.  They should have more freedom to  
          set their fees in the marketplace, and a raise in the maximum  
          allowed fee is long overdue as is evidenced by the over 60%  
          increase seen in the cost of living since 1993."


          Background.  The SOS is authorized to appoint and commission  
          notaries, who have met specified education, examination, and  
          ethical background requirements.  Notary appointments are good  
          for four years.  All applicants for appointment must complete  
          the Notary Public Application form prescribed by the SOS each  
          time they apply for a commission, whether they currently hold a  
          commission as a notary public, a previous commission has  
          expired, or they are applying for the first time.  Notaries  
          public who wish to renew their appointments must apply, complete  
          a refresher course, and pass an exam before the expiration of  
          their first appointment if they wish to avoid a break in notary  
          public commission terms.  A notary public's jurisdiction is not  
          limited to the county in which the notary public's oath and bond  
          are filed, but a California notary public cannot perform  
          notarial acts outside of state borders.


          The most common services provided by notaries public include  
          acknowledgments, oaths and affirmations, witness signatures, and  
          certified copies of documents that are not public or vital  
          records.  Notaries public are required to purchase a notarial  
          seal from an approved vendor and to keep that seal secure in  
          their own possession.  Notaries public also have a  
          responsibility to maintain a journal detailing all of their  
          acknowledgements, and to keep that journal safely secured.   
          California law does not set a minimum fee, but currently caps  








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          the maximum fee that a notary public may charge at $10 per  
          signature for most notarial acts.  The cap has not changed for  
          over twenty years, during which time the cost of living has  
          increased.


          Bond.  A notary public must obtain a bond from a California  
          admitted surety insurer in the amount of $15,000.  The bond must  
          be filed with the county clerk of the county in which the notary  
          public's principal place of business is located (GOV Section  
          8212).  The bond is to provide a limited fund to reimburse  
          members of the public who are damaged by notarial misconduct.   
          However, the notary public and the surety named on the notary  
          public's official bond are liable in a civil action for all the  
          damages sustained from a notary public's misconduct or neglect.   
          Since there may be personal liability for the notary public to  
          the surety for the amount paid on the bond as damages and if the  
          damages exceed the amount of the bond, the SOS advises notary  
          publics to consider purchasing errors and omissions insurance,  
          or some other type of liability insurance, to cover damages that  
          may occur in the course of performing their notarial duties.


          Related Current Legislation.  AB 1408 (Hadley) of the current  
          legislative session would have removed entirely the statutory  
          fee caps for specified notarial services. The Assembly Committee  
          on Judiciary expressed concern that as a quasi-governmental  
          profession, notaries provide a service to the public that is  
          often required by law, and the complete removal of a statutory  
          cap would place too great a burden on the public, especially  
          poor and elderly people. NOTE: This bill died in the Assembly  
          Committee on Judiciary. 


          Related Prior Legislation.  AB 35 (Roger Hernández), Chapter  
          571, Statutes of 2013 prohibits immigration consultants,  
          attorneys, notaries public, and organizations accredited by the  
          United States Board of Immigration Appeals from participating in  
          practices that amount to price gouging, as defined, when a  








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          client or prospective client solicits these services. 


          ARGUMENTS IN SUPPORT: 


          The  American Association of Notaries  writes, "Notaries provide  
          valuable services to the public.  Notary fees have not increased  
          for the past two decades.  Increasing the maximum allowable fees  
          from $10 to $15 for performing the notarial acts specified in  
          the bill is a necessary step toward aligning California's notary  
          fees with rising inflation."


          The  American Society of Notaries  writes, "These fees have been  
          static for many years.  The proposed fee increases in [this  
          bill] are reasonable and reflect the significant value that a  
          notary public brings to a document transaction."


           The National Notary Association  writes, "It has been over 22  
          years since the Legislature established the current maximum  
          notary fee of $10 per signature in 1994.  And yet, since 2006,  
          the requirements for a Notary Public commission in California  
          have considerably increased the cost to become a Notary.  Every  
          four years, their employers now must pay for Livescan  
          fingerprints and a background check, a color passport  
          photograph, and a course of instruction.  This is in addition to  
          the costs for the required surety bond, official seal, journal  
          of official acts, application fee and fees to file the bond and  
          oath of office in the country of the applicant's principal place  
          of business."


           Several other individuals  write, "Increased notary income of  
          even $5 will help pay my gas and electric bill for one month,  
          and it would buy [two] gallons of gasoline for my car to travel  
          to a notary signing job.  It would partially pay for a notary  
          stamp and ink and for my annual notary errors and omissions  








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          insurance" and "While laws regulating notaries and potential  
          liability faced by notaries have both expanded significantly  
          during the last [twenty] years, the maximum fee that may be  
          charged has not kept up with the cost to operate as a Notary in  
          our state"


          REGISTERED SUPPORT:  


          The American Association of Notaries


          American Society of Notaries


          National Notary Association


          More than 1,100 Individuals


          REGISTERED OPPOSITION:  


          None on file.




          Analysis Prepared by:Tessa Nevarez / B. & P. / (916) 319-3301
















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