SLS 18RS-607 ORIGINAL 2018 Regular Session SENATE BILL NO. 358 BY SENATOR LUNEAU NOTARIES. Provides for electronic notarial acts and electronic notaries public. (8/1/18) 1 AN ACT 2 To amend and reenact Civil Code Art. 1833 and to enact Chapter 10 of Title 35 of the 3 Louisiana Revised Statutes of 1950, to be comprised of R.S. 35:621 through 632, 4 relative to notaries public and commissioners; to provide relative to notarial acts; to 5 authorize electronic notarial acts; to authorize electronic notaries public; to provide 6 certain terms, definitions, conditions, requirements, procedures, and effects; and to 7 provide for related matters. 8 Be it enacted by the Legislature of Louisiana: 9 Section 1. Chapter 10 of Title 35 of the Louisiana Revised Statutes of 1950, 10 comprised of R.S. 35:621 through 632, is hereby enacted to read as follows: 11 CHAPTER 10. ELECTRONIC NOTARIAL ACTS 12 §621. Definitions 13 For the purposes of this Chapter: 14 (1) "Credential analysis" means a process or service operating according 15 to criteria approved by the secretary through which a third person affirms the 16 validity of a government-issued identification credential through review of 17 public and proprietary data sources. Page 1 of 10 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 358 SLS 18RS-607 ORIGINAL 1 (2) "Electronic" means relating to technology having electrical, digital, 2 magnetic, online, wireless, cellular, optical, electromagnetic, or similar 3 capabilities. 4 (3) "Electronic document" means information that is created, generated, 5 sent, communicated, received, or stored by electronic means. 6 (4) "Electronic notarial act" means an official act by an electronic notary 7 public conducted using electronic means and involves electronic documents, an 8 electronic seal, and electronic signature as provided by this Chapter. 9 (5) "Electronic notarial certificate" means the portion of a notarized 10 electronic document that is completed by the electronic notary public and 11 contains the following: 12 (a) The electronic notary public's electronic signature, electronic seal, 13 title, and commission expiration date. 14 (b) Other required information concerning the date and place of the 15 notarial act. 16 (c) The facts attested to or certified by the notary public in the notarial 17 act. 18 (6) "Electronic notary public" means a notary public who has been 19 commissioned by the secretary to perform electronic notarial acts under this 20 Chapter. 21 (7) "Electronic seal" means information within a notarized electronic 22 document that confirms the electronic notary public's name, jurisdiction, 23 license number, and commission expiration date and generally corresponds to 24 data in notary seals used on paper documents. 25 (8) "Electronic signature" means an electronic sound, symbol, or process 26 attached to or logically associated with an electronic document and executed or 27 adopted by a person with the intent to sign the document. 28 (9) "Identity proofing" means a process or service operating according 29 to criteria approved by the secretary through which a third person affirms the Page 2 of 10 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 358 SLS 18RS-607 ORIGINAL 1 identity of an individual through review of personal information from public 2 and proprietary data sources. 3 (10) "Notarial act" as used in this Chapter means the performance by 4 an electronic notary public of a function authorized under R.S. 35.1, et seq. 5 (11) "Online notarial act" means an electronic notarial act performed 6 by means of two-way video and audio conference technology and an online 7 internet connection that meets the standards adopted in this Chapter. 8 (12) "Principal" means an individual: 9 (a) Whose electronic signature is notarized in an electronic notarial act; 10 or 11 (b) Taking an oath or affirmation from the electronic notary public but 12 not in the capacity of a witness for the electronic notarial act. 13 (13) "Remote presentation" means a transmission to an electronic notary 14 public through communication technology of an image of a government-issued 15 identification credential that is of sufficient quality to enable the electronic 16 notary public to: 17 (a) Identify the individual seeking the electronic notary public's services. 18 (b) Perform credential analysis. 19 (14) "Secretary" means the Louisiana Secretary of State. 20 §622. Adoption of rules 21 The secretary shall adopt rules necessary to implement this Chapter, 22 including rules to facilitate electronic notarial acts. 23 §623. Electronic notarial acts; standards 24 The secretary by rule shall develop and maintain standards for 25 electronic notarial acts in accordance with this Chapter, including standards for 26 credential analysis, identity proofing and electronic notarial acts conducted by 27 an electronic notary public through use of an online internet connection. 28 §624. Performing electronic notarial acts; application and standards 29 A. A notary public or an applicant for appointment as an electronic Page 3 of 10 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 358 SLS 18RS-607 ORIGINAL 1 notary public under this Section may apply to the secretary to be appointed and 2 commissioned as an electronic notary public in the manner provided by this 3 Section. 4 B. A person qualifies to be appointed as an electronic notary public by: 5 (a) Satisfying the qualification requirements for appointment as a 6 notary public under Chapter 1 of this Title. 7 (b) Electronically submitting to the secretary an application in the form 8 prescribed thereby, that satisfies the secretary that the applicant is qualified. 9 C. The application required by Subsection B of this Section must 10 include: 11 (a) The applicant's name to be used in acting as a notary public. 12 (b) A certification that the applicant will comply with the secretary's 13 standards developed pursuant to this Chapter. 14 (c) An email address of the applicant. 15 D. The secretary may by rule create, promulgate and impose additional 16 mandatory qualifications for a notary public or an applicant for appointment 17 as an electronic notary public to conduct online notarial acts. 18 E. Nothing herein shall be construed to prevent an electronic notary 19 from using updated technology or technologies during the term of the 20 commission. The electronic notary shall notify the secretary electronically 21 within ninety days of installation or use of such updated technology or 22 technologies and provide a brief description thereof. 23 §625. Performing notarial acts 24 An electronic notary public is a notary public for purposes of this Title 25 and is subject thereto to the same extent as a notary public appointed and 26 commissioned thereunder. An electronic notary public may perform all notarial 27 acts authorized by this Title. 28 §626. Authority to perform electronic notarial acts 29 An electronic notary public has the authority to perform all electronic Page 4 of 10 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 358 SLS 18RS-607 ORIGINAL 1 notarial acts and related functions as governed by this Chapter. 2 §627. Electronic record of electronic notarial acts 3 A. An electronic notary public shall keep a secure electronic record of 4 electronic documents notarized by the electronic notary public. The electronic 5 record must contain for each electronic notarial act: 6 (1) The date and time of the act. 7 (2) The type of act. 8 (3) The type, the title, or a description of the electronic document or 9 proceeding. 10 (4) The printed name and address of each principal involved in the 11 transaction or proceeding. 12 (5) Evidence of identity of each principal involved in the transaction or 13 proceeding in the form of: 14 (a) A statement that the person is personally known to the electronic 15 notary public. 16 (b) A notation of the type of identification document provided to the 17 electronic notary public. 18 (c) A record of the identity verification made under this Section, if 19 applicable; or the following: 20 (i) The printed name and address of each credible witness swearing to 21 or affirming the person's identity. 22 (ii) For each credible witness not personally known to the electronic 23 notary public, a description of the type of identification documents provided to 24 the electronic notary public. 25 (d) A recording of any video and audio conference that is the basis for 26 satisfactory evidence of identity and a notation of the type of identification 27 presented as evidence. 28 (e) The fee, if any, charged for the electronic notarial act. 29 B. The electronic notary public shall take reasonable steps to: Page 5 of 10 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 358 SLS 18RS-607 ORIGINAL 1 (1) Ensure the integrity, security, and authenticity of all electronic 2 notarial acts performed. 3 (2) Maintain a backup for the electronic record required by Subsection 4 A of this Section. 5 (3) Protect the backup record from unauthorized use. 6 C. The electronic record required by Subsection A of this Section shall 7 be maintained for at least five years after the date of the transaction or 8 proceeding. 9 §628. Applicable law; jurisdiction 10 All electronic notarial acts performed in accordance with this Chapter 11 shall be deemed to have been performed within the state of Louisiana and 12 governed by Louisiana law. 13 §629. Duty of care 14 A. An electronic notary public performing electronic notarial acts shall 15 keep, maintain, protect, and provide for lawful inspection an electronic record 16 of all electronic notarial acts as provided by R.S. 35:688. 17 B. If video and audio conference technology authorized under this 18 Chapter is the basis for satisfactory evidence of identity and the principal's 19 identity has been ascertained upon presentation of such satisfactory evidence 20 of identity, the electronic notary public shall keep a copy of the recording of the 21 video and audio conference and a notation of the type of any other identification 22 used. The electronic notary public shall take reasonable steps to: 23 (1) Ensure the integrity, security, and authenticity of electronic notarial 24 acts. 25 (2) Maintain a backup of the electronic record of electronic notarial acts. 26 (3) Ensure protection of such backup records from unauthorized use. 27 C. The electronic record of an electronic notarial act shall be maintained 28 for a period of at least five years from the date of the transaction. 29 D. An electronic notary public performing electronic notarial acts shall: Page 6 of 10 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 358 SLS 18RS-607 ORIGINAL 1 (1) Take reasonable steps to ensure that any registered device used to 2 create an electronic signature is current and has not been revoked or 3 terminated by its issuing or registering authority. 4 (2) Keep his record, electronic signature, and physical and electronic 5 seals secure under his exclusive control and shall not allow them to be used by 6 any other notary or any other person. 7 (3) Use his electronic signature only for the purpose of performing 8 electronic notarial acts. 9 E. Immediately upon discovering that the notary's record, electronic 10 signature, or physical or electronic seal has been lost, stolen, or may be 11 otherwise used by a person other than the notary, an electronic notary public 12 performing electronic notarial acts shall inform the appropriate law 13 enforcement agency in the case of theft or vandalism, and notify the secretary 14 in writing and signed in the official name in which he was commissioned. 15 §630. Electronic notarial act procedures 16 A. An electronic notary public may perform an electronic notarial act 17 authorized under this Section that meets the requirements of this Chapter and 18 rules adopted thereunder regardless of whether the electronic notary public or 19 principal is physically located in this state at the time of any part of the 20 electronic notarial act. 21 B. In performing an electronic notarial act, an electronic notary public 22 shall verify the identity of a principal creating an electronic signature at the 23 time that the signature is taken in the same manner as for a notarial act 24 governed by R.S. 35:1, et seq., or as provided by this Section. 25 C. In performing an online notarial act, an electronic notary public shall 26 verify the identity of a principal by using two-way video and audio conference 27 technology and an online internet connection that meets the requirements of 28 this Chapter and rules adopted hereunder. 29 D. In performing any electronic notarial act, the principal's identity may Page 7 of 10 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 358 SLS 18RS-607 ORIGINAL 1 be verified by: 2 (1) The electronic notary public's personal knowledge of the person 3 creating the electronic signature; or 4 (2) Each of the following: 5 (a) Remote presentation by the person creating the electronic signature 6 of a government-issued identification credential, including a passport or 7 driver's license, that contains the signature and a photograph of the person. 8 (b) Credential analysis of the credential described by R.S. 35:681. 9 (c) Identity proofing of the person described by R.S. 35:681. 10 E. For an online notarial act, the electronic notary public shall take 11 reasonable steps to ensure that the internet-based, two-way video and audio 12 communication utilized is secure from unauthorized interception or access. 13 F. The electronic notarial certificate for any electronic notarial act must 14 include a notation that the notarial act is an electronic notarial act. 15 §631. Fees 16 An electronic notary public or the electronic notary public's employer 17 may charge a fee in an amount that is reasonable and customary for performing 18 the electronic notarial act in addition to any other fees authorized under this 19 Section. 20 §632. Termination of commission 21 A. Except as provided by Subsection B of this Section, an electronic 22 notary public whose commission terminates shall destroy the coding, disk, 23 certificate, card, software, or password that enables electronic affixation of the 24 electronic notary public's official electronic signature or seal. The electronic 25 notary public shall certify compliance with this Subsection to the secretary. 26 B. A former electronic notary public whose commission terminated for 27 a reason other than revocation or a denial of renewal is not required to destroy 28 the Items described by Subsection A of this Section if the former electronic 29 notary public is recommissioned as an electronic notary public with the same Page 8 of 10 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 358 SLS 18RS-607 ORIGINAL 1 electronic signature and seal within three months after the former electronic 2 notary public's former commission terminated. 3 Section 2. Civil Code Article 1833 is hereby amended and reenacted to read as 4 follows: 5 Art. 1833. Authentic act 6 A. An authentic act is a writing executed before a notary public or other 7 officer authorized to perform that function, in the presence of two witnesses, and 8 signed by each party who executed it, by each witness, and by each notary public 9 before whom it was executed. The typed or hand-printed name of each person shall 10 be placed in a legible form immediately beneath the signature of each person signing 11 the act. 12 B. To be an authentic act, the writing need not be executed at one time or 13 place, or before the same notary public or in the presence of the same witnesses, 14 provided that each party who executes it does so before a notary public or other 15 officer authorized to perform that function, and in the presence of two witnesses and 16 each party, each witness, and each notary public signs it. The failure to include the 17 typed or hand-printed name of each person signing the act shall not affect the validity 18 or authenticity of the act. 19 C. If a party is unable or does not know how to sign his name, the notary 20 public must cause him to affix his mark to the writing. 21 D. For purposes of this Article, a person may physically appear before 22 the notary public or authorized officer taking the acknowledgment or may 23 appear by an online, internet-based, two-way audio and video communication 24 that meets the electronic notarial act requirements provided by law. 25 E. A writing executed by electronic means before an electronic notary 26 public in the manner provided by law for an electronic notarial act that 27 otherwise meets the requirements of this Article shall be considered an 28 authentic act as provided herein. Page 9 of 10 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 358 SLS 18RS-607 ORIGINAL The original instrument and the following digest, which constitutes no part of the legislative instrument, were prepared by Jerry G. Jones. DIGEST SB 358 Original 2018 Regular Session Luneau Proposed law authorizes electronic notarial acts and electronic notaries public. Proposed law provides definitions and procedures for an applicant to be qualified by the secretary of state as an electronic notary public. Provides for the adoption of rules to implement its provisions. Proposed law provides requirements for performing and keeping of records of electronic notarial acts, and for termination of commission. Provides procedures for an electronic notarial act. Present law in Civil Code provides relative to authentic acts. Provides that an authentic act is a writing executed before a notary public or other officer authorized to perform that function, in the presence of two witnesses, and signed by each party who executed it, by each witness, and by each notary public before whom it was executed. Proposed law retains present law and adds that for its purposes, a person may physically appear before the notary public or authorized officer taking the acknowledgment or may appear by an online, internet-based, two-way audio and video communication that meets the electronic notarial act requirements. Further provides that a writing executed by electronic means before an electronic notary public for an electronic notarial act that otherwise meets the requirements of the present law shall be considered an authentic act. Effective August 1, 2018. (Amends C.C. Art. 1833; adds R.S. 35:621-632) Page 10 of 10 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions.