§ 8231.14. — 8231.14. (Added by Stats. 2023, Ch. 291, Sec. 8.)

(a)
A person or entity shall apply for registration with the Secretary of State to be an online notarization platform or depository as prescribed by the Secretary of State.
(b)
An entity required to obtain a certificate of qualification from the Secretary of State in order to transact business in California shall do so before applying for registration with the Secretary of State to be an online notarization platform or depository.
(c)
An
online notarization platform or depository shall provide security for claims against the online notarization platform or depository or the online notarization platform’s or depository’s representatives, or employees based upon acts, errors, or omissions arising out of the business of the online notarization platform or depository through either one or an aggregate of both of the following:
(1)
A policy or policies of insurance against liability imposed on or against the online notarization platform or depository by law for damages arising out of claims in an amount for each claim of at least two hundred fifty thousand dollars ($250,000).
(2)
In trust or bank escrow, cash, bank certificates of deposit, United States Treasury obligations, bank letters of credit, or bonds of
insurance companies as security for payment of liabilities imposed by law for damages arising out of all claims in an amount of at least two hundred fifty thousand dollars ($250,000).
(d)
The Secretary of State shall develop an application for registration to be submitted by an applicant. The Secretary of State may refuse registration of an online notarization platform or depository for failure to conform with the application requirements. The application shall include, but not be limited to, all of the following:
(1)
The name and complete business or residence street address of an agent upon whom process may be
served within this state if this information is not already on file with the Secretary of State.
(2)
A statement signed under penalty of perjury by an officer of the applicant authorized to enter into binding agreements on behalf of the applicant that the applicant shall comply with both of the following:
(A)
This article and any rules or regulations adopted by the Secretary of State pursuant to this article that apply to online notarization platforms or depositories.
(B)
The lawful properly-served process.
(3)
For applications to be an online notarization platform, whether the online notarization platform provides custodial services for the notary
public.
(4)
A statement indicating that the applicant has no order, judgment, or decree entered against them in any civil or criminal action involving any of the following:
(A)
Fraud.
(B)
Material misrepresentation.
(C)
Any willful acts or gross negligence related to breaches of secure information required to be stored under this act.
(e)
Registration may be refused or canceled if the application is found to include a material misrepresentation or if the registrant subsequently has an order, judgment, or decree entered against them in any civil or criminal action as defined in paragraph (4) of subdivision
(d).
(f)
The Secretary of State may charge a fee for an application for registration submitted pursuant to this section in an amount necessary to administer this article.
(g)
Only an online notarization platform that has obtained registration from the Secretary of State may provide an online notarization system for a notary public authorized to perform online notarizations while commissioned in California.
(h)
An online notarization platform shall take all reasonable steps to ensure that a notary public for whom it provides an online notarization system has the knowledge to use the system
to perform online notarial acts in compliance with this article and any rules or regulations adopted by the Secretary of State pursuant to this article.
(i)
(1)
An online notarization platform or depository that provides custodial services for a notary public shall not delete an online journal entry or the audio-video recording of an online notarization until (A) the contract for custodial services is terminated or the notary public resigns, is disqualified, is removed from office, or allows their registration as a notary public authorized to perform online notarizations to expire without obtaining reappointment, and (B) the notary public has downloaded the journal entry or audio-video recording. The online notarization platform or depository shall provide a reasonable opportunity for download upon termination of the contract for custodial services. The Secretary of State shall establish by rule or regulation the time period that constitutes a “reasonable opportunity” for download following termination of a contract for custodial services.
(2)
An online notarization platform that does not provide custodial services for a notary public shall not delete an online journal entry or audio-video recording of an online notarial act until the notary public has been provided a reasonable opportunity to download the entry or record. The Secretary of
State shall establish by rule or regulation the time period that constitutes a “reasonable opportunity” for downloading the audio-video
recording.
(j)
(1)
An online notarization platform or depository that ceases to provide an online notarization system or depository for use within California, goes out of business, ceases operations, or is acquired by or merges with another entity that is not registered with the Secretary of State as an online notarization platform or depository, and an online notarization platform that ceases to provide custodial services, shall do both of the following:
(A)
At least 30 calendar days before this event, notify each notary public that has utilized the online notarization platform or depository of the event
and enable the notary public to transfer all records of online notarial acts performed by the notary public, or all records stored by the depository, including, but not limited to, any electronic journals or audio-video recordings, to another online notarization platform, to the notary public, to a certified depository, at no cost to the notary public. The online notarization platform or depository shall not delete any records of online notarial acts performed by the notary public until the notary public has been provided a reasonable opportunity to download the entry or record. The Secretary of State shall establish by rule or regulation the time period that constitutes a “reasonable opportunity” for downloading records of online notarial acts.
(B)
Upon full compliance with subparagraph (A), thereafter promptly delete all audio-video recordings of online notarizations and electronic journals.
(2)
An online notarization platform or depository that is acquired by or merges with another entity that is not registered with the Secretary of State as an online notarization platform or depository may continue operating as an online notarization platform or as a depository if all of the following are met:
(A)
The online notarization platform or depository submits an updated application for registration as required by subdivision (d) based on the new circumstances after acquisition or merger.
(B)
The updated
application for registration is submitted to the Secretary of State at least 90 days prior to the acquisition or merger being completed, or as soon as permitted by applicable law, and the Secretary of State approves the updated application.
(C)
The online notarization platform or depository notifies all notaries using the online notarization platform or depository at least 30 days before the completion of the acquisition or merger, or as soon as permitted by applicable law.
(k)
A notary public authorized to perform online notarization
using an online notarization platform or depository shall not be vicariously liable for any damages resulting from the online notarization platform’s or depository’s failure to comply with the requirements of this article or any rules or regulations adopted by the Secretary of State pursuant to this article. Any provision in a contract or agreement between a notary public and an online notarization platform or depository that attempts to waive this immunity shall be null and void.

Legislative History

Added by Stats. 2023, Ch. 291, Sec. 8. (SB 696) Effective January 1, 2024.