Bill Summary for H 776 (2021-2022)

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Summary date: 

May 5 2021

Bill Information:

View NCGA Bill Details2021
House Bill 776 (Public) Filed Monday, May 3, 2021
Intro. by D. Hall, Davis, Hardister, Reives.

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Bill summary

House committee substitute to the 1st edition makes the following changes. 

Revises new Article 4, Remote Online Notarization Act, to GS Chapter 10B as follows. 

Additionally prohibits a remote online notary from performing a remote online notarial act for any reason set forth in GS 10B-224(b), as enacted, which prohibits remote online notarial acts if any of four specified situations apply. 

Regarding the authority to perform a remote online notarial act, allows for a remotely located principal physically located outside of the US to have the principal's electronic signature confirm to the remote online notary that the requested remote online notarial act and the electronic document are related to a property right, title, or interest granted by an entity of the US government or a US court, as an alternative to the four other confirmation types permitted for those principals. Now provides that a remote online notarization performed by a remote online notary of the State is governed by state laws (previously more specifically provided for the validity of such notarizations).

Regarding the requirements and procedures for the remote online notary to verify the identity of the principal, allows for satisfactory evidence of the principal's identity by two forms of multifactor authentication, identity proofing and credential analysis (was two forms of multifactor identification), as approved by the Secretary of State. 

Regarding the requirements for using electronic notarization and conducting remote online notarization, makes changes to consistently refer to a remote online notarization, remote online notarial act, and communication technology recording, as used throughout the act. 

Now requires a remote online notary to retain the required electronic journal, upon resignation, revocation, or suspension, in accordance with the electronic journaling requirements of remote online notaries under new GS 10B-230, in addition to new GS 10B-231, regarding required security measures of remote online notaries. Authorizes a remote online notary to designate a steward (was custodian) to maintain and backup the electronic journal, retain and backup communication technology recordings, or provide methods for the remote online notary to access and/or export the electronic journal or communication technology recordings. Makes conforming changes to refer to the designated steward.

Additionally now requires a remote online notary to designate a steward third-party vendor approved by the Secretary to receive and maintain the notary's electronic journal and all other notarial records for the 10-year retention period, with the journal and other notarial records required to be transmitted by the notary or the notary's personal representative or guardian or other person in possession, to the steward, upon resignation, revocation, or expiration of the commission, or the notary's death or adjudication as incompetents. Makes conforming changes. 

Regarding security measures of remote online notaries and the Secretary, to consistently refer to communication technology, communication technology recordings, and remote online notarial acts, as context requires and consistent with the act.