BILL ANALYSIS Ó
AB 2217
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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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