BILL ANALYSIS                                                                                                                                                                                                    Ó



                             SENATE JUDICIARY COMMITTEE
                         Senator Hannah-Beth Jackson, Chair
                             2015-2016  Regular  Session


          AB 2217 (Hadley)
          Version: February 18, 2016
          Hearing Date:  June 14, 2016
          Fiscal: No
          Urgency: No
          ME   


                                        SUBJECT
                                           
                            Notary public:  service fees

                                      DESCRIPTION  

          This bill would allow notary publics to charge higher prices for  
          some of their services. 

                                      BACKGROUND  

          A notary public is a public officer appointed and commissioned  
          by the Secretary of State to serve the public in non-contentious  
          matters generally concerning estates, deeds, powers-of-attorney,  
          foreign and international business, and other written  
          instruments.  Occasionally, an individual who is party to a more  
          sensitive formal agreement, such as a child custody agreement, a  
          confidential marriage license, or an advance healthcare  
          directive, must have the agreement notarized before it can enter  
          into force.  A notary's main functions are to take  
          acknowledgements of various written instruments, administer  
          oaths and affirmations, take depositions and affidavits, certify  
          copies of powers of attorney under the Probate Code, demand  
          acceptance and payment of foreign and inland bills of exchange  
          or promissory notes, and to protest nonpayment and nonacceptance  
          of bills and notes.  (Gov. Code Sec. 8205.)  

          Notaries public are commissioned for four-year terms by the  
          Secretary of State.  In order to receive a commission, an  
          individual must be a California resident who is at least 18  
          years old, complete a study course, pass an examination, clear a  
          background check, and pay a fee to the Secretary of State.   
          There is a statutory cap on the fees that a notary public may  
          charge for the basic services that a notary public provides.   
          For example, under current law a notary public may charge up to  
          $10 for each signature taken for taking an acknowledgement or  







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          proof of a deed.  The cap on fees that notaries public can  
          charge has not increased for over 20 years, while the cost of  
          living has increased over 60%.  (See U.S. Department of Labor,  
          Bureau of Labor Statistics Inflation Calculator  
            [as of June 8, 2016])   
          Accordingly, this bill would raise the amount notary publics can  
          charge for some of their services between 25% and 50%. 

                                CHANGES TO EXISTING LAW
           
           Existing law  authorizes the Secretary of State to appoint and  
          commission notaries public who have met education, examination,  
          and ethical requirements as specified.  (Gov. Code Secs.  
          8200-8201.5)  

           Existing law  provides that fees charged by a notary public for  
          the following services shall not exceed the following: 
                 taking an acknowledgment or proof of a deed, or other  
               instrument, to include the seal and the writing of the  
               certificate, ten dollars ($10) for each signature taken;
                 administering an oath or affirmation to one person and  
               executing the jurat, including the seal, ten dollars ($10);
                 providing services rendered to take a deposition, twenty  
               dollars ($20), and in addition thereto, five dollars ($5)  
               for administering the oath to the witness and five dollars  
               ($5) for the certificate to the deposition;
                 entering data provided by a client on immigration forms  
               provided by a federal or state agency if the notary public  
               is qualified and bonded as an immigration consultant, ten  
               dollars ($10); and
                 certifying a copy of a power of attorney under Section  
               4307 of the Probate Code, ten dollars ($10).  (Gov. Code  
               Sec. 8211.)

           Existing law  provides that no fees may be charged by notaries  
          public for notarizing an application or a claim by a United  
          States military veteran for a pension, allotment, allowance,  
          compensation, insurance, or any other veteran's benefit.  (Gov.  
          Code Sec. 6107.) 

           Existing law  provides that no fees may be charged by notaries  
          public for notarizing vote by mail ballot identification  
          envelopes or other voting materials.  (Gov. Code Sec. 8211(d).)









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          This bill  would allow a notary public to charge an additional $5  
          for the following services:
                 each signature taken for an acknowledgment or proof or a  
               deed, or other instrument, to include the seal and the  
               writing of the certificate;  
                 administering an oath or affirmation to one person and  
               executing the jurat, including the seal; 
                 certifying a copy of a power of attorney under Section  
               4307 of the Probate Code; and
                 entering data provided by a client on immigration forms  
               provided by a federal or state agency if the notary public  
               is qualified and bonded as an immigration consultant.

           This bill  , in connection with the taking of any deposition,  
          would allow a notary public to charge a fee up to $30, instead  
          of $20, and in addition would allow the notary to charge $7  
          instead of $5 for administering the oath to the witness and for  
          the certificate to the deposition.  

           This bill  makes other nonsubstantive conforming changes.  

                                        COMMENT
           
          1.   Stated need for the bill  

          According to the author:

             California law does not set a minimum fee but currently  
             caps the maximum fee that a Notary Public may charge at  
             $10 per signature.  This cap has not changed for over  
             twenty years, during which time the cost of living has  
             increased over 60%.

             AB 2217 will increase the maximum fee that can be charged  
             by Notaries Public in California. 

             By increasing the fees a notary may charge to $15 per  
             signature, AB 2217 will align those fees with the increase  
             of 64.8% seen in the Consumer Price Index (CPI) since 1993  
             - the last time the Notary fees were raised.  AB 2217 also  
             maintains current law, stating that no fee shall be  
             charged to notarize voting materials, nor shall fees be  
             charged to U.S. military veterans for notarization on  
             veteran's benefit claims. 








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             It is important to note that AB 2217 does not set the  
             price for Notary Public series, it simply raises the  
             price.  Notaries may continue to set their prices subject  
             to customer demand and subject to the revised cap. 

          2.   $10 in 1993 has the same buying power as $16.56 in 2016  

          According to the Bureau of Labor Statistic's inflation  
          calculator, $10 in 1993 has the same buying power as $16.56 in  
          2016.  (See U.S. Department of Labor, Bureau of Labor Statistics  
          Inflation Calculator    
          [as of June 8, 2016])   For this reason alone an increase from  
          $10 to $15 is arguably justified. The National Notary  
          Association, in support, further points out that requirements  
          for a Notary Public commission in California have considerably  
          increased the cost to become a Notary.  They note that every  
          four years the employers of notaries public must pay for  
          Livescan fingerprints, a background check, a color passport  
          photograph, and a course of instruction.  Additionally,  
          supporters highlight that they must also pay for a surety bond,  
          the official seal, journal of official acts, application fee and  
          fees to file the bond and oath of office in the county of the  
          applicant's principal place of business.  


           Support  :  The American Association of Notaries; American Society  
          of Notaries; National Notary Association; more than 1,100  
          individuals

           Opposition  :  None Known
                                        HISTORY
           
           Source  :  Author

           Related Pending Legislation  :  None Known

           Prior Legislation  :  AB 1408 (Hadley 2015) would have removed the  
          statutory fee cap for specified notarial services.  This bill  
          died in the Assembly Committee on Judiciary. 

           Prior Vote  :

          Assembly Floor (Ayes 76, Noes 0)








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          Assembly Business and Professions Committee (Ayes 16, Noes 0)