BILL ANALYSIS                                                                                                                                                                                                    






                           SENATE JUDICIARY COMMITTEE
                        Senator Ellen M. Corbett, Chair
                           2007-2008 Regular Session


          AB 434                                                 A
          Assemblymember Silva                                   B
          As Amended May 9, 2007
          Hearing Date: June 19, 2007                            4
          Government Code                                        3
          CS:rm                                                  4
                                                                 

                                     SUBJECT
                                         
                                Notaries Public

                                   DESCRIPTION  

          This bill would require a notary public to either provide a  
          photostatic copy, as specified, to a requesting member of  
          the public, or acknowledge that the line item requested  
          does not exist, within 30 days of receipt of the request by  
          the notary.
                                    BACKGROUND  

          Notaries public are appointed by the Secretary of State  
          only after an examination and application for appointment.   
          The Secretary of State's Notary Public Handbook states that  
          notaries public is a "?growing profession of more than  
          288,000 public officials who perform invaluable services to  
          the legal, business, financial, and real estate  
          communities."  Because there are a growing number of  
          notaries public, the Legislature has increased regulation  
          of their conduct and qualifications in recent years.  For  
          example, AB 1210 (Nakano, Ch. 513, Stats. 2003) imposed  
          mandatory education requirements for notaries public and  
          authorized the Secretary of State to review and approve  
          notary education courses as necessary.  In addition, the  
          Secretary of State is authorized to establish disciplinary  
          guidelines for notaries public.  (Government Code Section  
          8220.)  

          Overall, the trend towards enhanced regulation of the  
          notaries public profession is part of the state's attempt  
                                                                 
          (more)



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          to safeguard the public.  Because the profession deals with  
          legally binding documents and transactions, the state has  
          chosen to ensure that notaries public are ethical, well  
          trained, and responsive to the needs of the public.  AB 434  
          follows that trend by requiring a notary public to make a  
          timely response to a request from any member of the public  
          for a copy of the notary's entry into his or her journal.   
          Considering that current law lacks any specific guidelines  
          for a notary to respond to a request from a member of the  
          public, AB 434 is an attempt to provide a reasonable, but  
          necessary guideline for notaries to follow.  

                             CHANGES TO EXISTING LAW
           
           Existing law  specifies the qualifications to be a notary  
          public.  (Government Code Section 8201 et seq.) 
           
          Existing law  requires a notary to maintain a sequential  
          journal of official acts and specifies the manner in which  
          he or she maintains their official seal.   (Government Code  
          Section 8206 et seq.) 

           Existing law  requires a notary public, upon written  
          request, "[T]o furnish to the Secretary of State certified  
          copies of the notary's journal?.  To respond within 30 days  
          of receiving written requests sent by certified mail from  
          the Secretary of State's office for information relating to  
          official acts performed by the notary."  (Government Code  
          Section 8205.)

           Existing law  also requires a notary, upon written request  
          of any member of the public, to supply to the requesting  
          party a photostatic copy of the line item representing the  
          requested transaction at a cost of not more than thirty  
          cents ($0.30) per page.  (Government Code Section 8206 et  
          seq.) 

           This bill  would require a notary public to either provide  
          that photostatic copy to a requesting member of the public,  
          or acknowledge that the line item requested does not exist,  
          within 30 days of receipt of the request by the notary.

                                     COMMENT
           
              1.   Stated need for the bill
                                                                       




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             The author and sponsor (Conference of Delegates of  
            California Bar Associations) state:  "At present, absent  
            a disciplinary proceeding, a notary public who fails to  
            respond, or fails to respond within a reasonable time, to  
            a request for information has little if any incentive to  
            provide the information that it is obligated to provide  
            to a member of the public?."  The author further asserts  
            that: "The public, in the conduct of business may need  
            verification of a given signature, but the notary has no  
            guidelines to respond to these requests. Therefore few  
            regulations or disciplinary rules have been put forth by  
            the Secretary of State on how to respond?."  AB 434, the  
            author and sponsor argue, provides reasonable and  
            necessary guidelines for a notary public to respond to a  
            request, helping both a notary and the public.   

            Finally, the author contends: "AB 434 is a simple measure  
            that will ? expedite the conduct of business in  
            California and provide for consumer protection without  
            unnecessary burdens on business. " 

              2.   The current 30-day proposal may not provide for a  
               timely response to a
             request from a member of the public 
           
                   a.        Current law does not provide a precise  
                    timeline for a notary to follow when
                 responding to a request from a member of the public

               As introduced, AB 434 required a notary to respond to a  
              request from a member of the public within 15 days from  
              the mailing of the request, which was intended to  
              provide a precise timeline for notaries to follow.  The  
              initial timeline was subsequently amended to 15  
              business days from receipt of the request.  Yet, in  
              response to concerns raised by the National Notary  
              Association (NNA) about the asserted difficulties for  
              notaries public to respond within 15 business days, AB  
              434 was further amended to the current 30-day response  
              time.  

              However, if timely and precise responses are the public  
              policy goals of AB 434, then it is questionable whether  
              affording notaries 30 calendar days to respond to a  
                                                                       




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              request from a member of the public is good public  
              policy. 
            
                  b.          Arguments in support of an extended  
                    30-day response guideline
               
              In the California Escrow Association's (CEA) support if  
              amended position, they claimed that 15 days was too  
              short of a time for notaries to respond to a request,  
              particularly requests for very old documents.   
              (Assembly Business and Professions Committee analysis,  
              dated March 27, 2007.) Other proponents of AB 434 as  
              amended also claimed 15 business days was too onerous  
              of an obligation.  They assert that: "The 30-day time  
              period is consistent with other parts of the Notary  
              Public law in the Government Code requiring a response  
              from a Notary."  (Letter of Support from the National  
              Notary Association, dated May 14, 2007.)  The NNA  
              further argues that with "?the 30-day time period,  
              Notaries will be more likely to provide the requested  
              information and thus achieve the intended result of  
              this legislation."  

              In sum, the proponents of the 30-day response period  
              maintain that although there should be a guideline in  
              place for notaries to follow, such a guideline must  
              recognize the everyday demands of notaries public.   
              Aside from the assertion that the 30-day proposal is  
              consistent with requests from the Secretary of State,  
              they contend that notaries public do not all operate on  
              a traditional business calendar and may be burdened by  
              other factors such as postal delays, intra-office  
              procedures, vacations, or sickness.  Finally, an  
              extended guideline ensures that notaries are not  
              uniquely burdened by requests from members of the  
              public.     

            c.  A request from the Secretary of State carries  
              different incentives and consequences than a request  
              from a member of the public  

              As mentioned in Comment 1, the author and sponsor  
              assert that there is very little, if any, incentive for  
              a notary to respond within a reasonable time to a  
              request from a member of the public, absent  
                                                                       




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              disciplinary proceedings.  In essence, they contend  
              that requests from members of the public are treated  
              differently than requests from the Secretary of State.   
              Under current law, a written request from the Secretary  
              of State provides the only specific guideline for a  
              notary to respond (30 days).  (Government Code Section  
              8205 (b)(2).)  

              However, the current 30-day statutory guideline does  
              not recognize that a request from the public for a copy  
              of a notary entry is ladened with different incentives  
              and consequences.  On the one hand, a request from the  
              Secretary of State is likely to be in connection with  
              the Secretary's ministerial duties with respect to that  
              notary.  For example, the Secretary of State is charged  
              with the responsibility of appointing and disciplining  
              notaries public.  (Government Code Section 8200 et  
              seq.)  The Secretary of State is thus afforded broad  
              authority to request information from a notary,  
              including, but not limited to certified copies of the  
              notary's journal.  (Government Code Section 8205.)  As  
              a result of this broad authority, a request from the  
              Secretary of State could be for a simple, random check  
              on compliance of a notary's duties rather than a  
              request for a critical document.  Therefore, requests  
              from the Secretary of State emphasize a concern about  
              the notary's performance of their official duties, and  
              so the timeliness of their response is not as critical.  
               

              In contrast, failing to respond to a request from a  
              member of the public, absent disciplinary measures, has  
              different consequences.   A request from the public  
              could be a much more time sensitive and critical  
              request.  For instance, in the unfortunate  
              circumstances of identity theft or an alleged forgery,  
              a member of the public may need a copy of a document or  
              transaction in the matter of a day or a week.  However,  
              there is no clear guideline for a response under  
              existing law.  Additionally, AB 434's 30-day language  
              would attempt to treat a random request from the  
              Secretary of State the same as a request from a victim  
              of a forgery, thereby defeating the measure's intent to  
              provide a timely and specific guideline for a notary to  
              follow.     
                                                                       




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              SHOULD NOT THE COMPLIANCE PERIOD BE REDUCED TO 15  
              CALENDAR DAYS AFTER RECEIPT OF THE REQUEST IN LIGHT OF  
              THE MORE EXIGENT CIRCUMSTANCES OF A PUBLIC REQUEST? 
                      
              d.   Compliance with a timelier guideline would not be  
               too onerous
                
               Existing law already requires a notary to maintain a  
               sequential journal of official acts.  (Government Code  
               Section 8206(a)(1).)  Within the journal, the notary  
               must include the date, time, and type of each official  
               act, as well as the signature of each person whose  
               signature that is notarized.  (Government Code Section  
               8206(a)(2).)   When a member of the public makes a  
               request, pursuant to existing law and under AB 434's  
               language, he or she must provide in writing the name  
               of the parties, the type of document they are  
               requesting, as well as the month and year the document  
               was notarized.   Therefore, a notary would be provided  
               with precisely the information they are already under  
               a duty to keep.  Moreover, the exactness of  
               information should make it easy for the notary to find  
               the entry.  As a result, a notary would not be placed  
               under any unusual burden if they are required to  
               respond earlier than 30 days.  

               Because the primary motivation behind AB 434 seeks to  
               address the issue of "timeliness", it is recommended  
               that a notary respond within 10 to 15 business days or  
               15 calendar days from the receipt of a request from a  
               member of the public.  To address concerns that a  
               notary may be sick or on vacation during that time,  
               the committee may also wish to provide an exigent  
               circumstance defense in any disciplinary proceeding.  

               Ten to fifteen business days or fifteen calendar days  
               should not be overly burdensome, considering the  
               requesting party must first provide, in writing, the  
               very type of information the notary is already  
               required to maintain.  Further, a 10 to 15 business  
               day or 15 calendar day turnaround from the date of  
               receipt for a request from a member of the public  
               would ensure that consumers are protected, without  
               placing any undue burden on notaries public.  
                                                                       




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          Support:  National Notary Association; Akin, Gump Strauss  
          Hauer & Feld LLP;
                 Best Realty Services; Elite Escrow Services of San  
                 Diego; Humboldt Builders' Exchange, Inc.; Cooper,  
                 White & Cooper LLP

          Opposition: None Known







                                     HISTORY
           
          Source: Conference of Delegates of California Bar  
          Associations

          Related Pending Legislation:  AB 886 (Runner, in Assembly  
                                   Appropriations),
                                would allow, among other things, a  
                                peace officer to seize a sequential  
                                journal of notarial acts from a  
                                notary public without a warrant,  
                                requires a thumbprint for all  
                                notarized documents and requires all  
                                notaries public to provide a physical  
                                address as their business address.

          Prior Legislation:  AB 2062 (Nakano, Ch. 539, Stats. 2004),  
          requires a notary
                        public to use a jurat (i.e., an official  
                        declaration similar to an affidavit) form to  
                        certify the identity of persons signing  
                        documents. 

                        AB 1210 (Nakano, Ch. 513, Stats. 2003),  
                        imposes mandatory education requirements for  
                        notaries public and authorizes the Secretary  
                        of State to review and approve notary  
                        education courses as necessary.

                                                                       




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                        SB 618 (Watson, Ch. 319, Stats. 1997),  
                        specifies that the notary journal and seal  
                        are the exclusive property of the notary  
                        public, and requires the notary public to  
                        keep the notary journal and the official seal  
                        in a locked and secured area, under the  
                        direct and exclusive control of the notary. 
                                   
          Prior Vote:  Assembly Business and Professions Committee  
          (Ayes 10, Noes 0)
                   Assembly Floor (Ayes 72, Noes 0)

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