BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 1050
                                                                  Page  1

          Date of Hearing:   June 18, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                    SB 1050 (Monning) - As Amended:  June 2, 2014 

          Policy Committee:                              JudiciaryVote:9-0  
          (Consent)

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:               

           SUMMARY  

          This bill adds a statutory notice, as specified, to three  
          specific notary documents-a form certificate of acknowledgment,  
          a proof of execution, and a jurat-that the notary's  
          certification verifies only the identity of the person who  
          signed the document to which the certification is attached, and  
          not the truthfulness, accuracy, or validity of that document. (A  
          "jurat" is a form used by a notary to verify the identity of a  
          consumer who signs a legal document in front of the notary, and  
          then performs a sworn oath to the notary confirming their  
          identity.)

           FISCAL EFFECT  

          Minor absorbable costs for the Secretary of State's (SOS's)  
          office to incorporate the notice provision as part of its annual  
          updating of the Notary Handbook and other notary-related  
          materials.

           COMMENTS  

           Purpose  . This bill, sponsored by the SOS, seeks to protect  
          consumers and reduce the opportunity for fraud stemming from a  
          common misperception about what it means when a notary public  
          affixes his or her seal and signature (i.e. "notarizes") a  
          document. According to the author, when people are unfamiliar  
          with the meaning of a notary's seal, it creates an opportunity  
          for criminals to imply or falsely state that a notary's seal and  
          signature represent an official endorsement or approval of the  
          document.  Because of this kind of fraud, people have reportedly  
          been cheated out of title to homes and rental property.








                                                                  SB 1050
                                                                  Page  2


          SB 1050 revises the three types of common forms used by notaries  
          to include a consumer notification statement indicating that the  
          notary public verifies only the identity of the signer, and not  
          the content of the documents to which the notary certificate is  
          attached.  The bill requires this statement to be in a text box  
          above the body of the certificate, so that the statement will be  
          more visible and will stand alone above the dense legal language  
          in the actual notary certificate.  The bill is intended to alert  
          those receiving the document signed by the individual that the  
          document, though notarized, is not necessarily legal, accurate,  
          or valid merely because of the notarization.

          This bill has no known opposition.

           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081