Rule/Regulation
Summary
This part 5 new law update on the 2023 administrative rules adopted by the Illinois Secretary of State specifies rules for education and examination, Notary remittance agent, and electronic notarization system service providers.
Affects
Adds Sections 176.200, 176.210, 176.215, 176.220, 176.225, 176.230, 176.235, 176.240, 176.245, 176.250, 176.255, 176.400, 176.410, 176.420, 176.430, 176.440, 176.450, 176.460, 176.802, and 176.805 to Title 14, Subtitle A, Chapter I, Part 176 of the Illinois Administrative Code.
Changes
Definitions
- For the purpose of the education provider rules, defines “applicants,” certification,” “consumer information,” “Department,” “instructor,” “live certified proctors,” multimedia,” “provider,” “shareware,” “webcast,” and “web video conference proctor.”
- For the purpose of the Notary remittance agent rules, defines, “applicant,” “Department, “”financially sound,” “fraudulent activity,” “good business integrity,” “immediate family,” “licensee,” “remittance agent, “revocation,” “Secretary,” “Suspension,” and “transaction.”
- For the purpose of the electronic notarization system provider rules, defines “electronic notarization system” and “electronic notarization system provider.”
Education and Examination Provider Certification
- Prohibits a person, firm, association, partnership, or corporation from operating as an education and examination provider or engage in the business of providing a Notary course of study and examination unless the provider holds a certification issued by the Secretary.
- Prohibits a provider from remaining in operation if its certification to operate as a provider is suspended, revoked, canceled, or not renewed.
- Requires the Secretary of State to provide contact information of each provider on its official website. (https://www.ilsos.gov/departments/index/Notary/home.html)
- Clarifies that every officer, owner, director, partner, and manager for a provider is subject to the requirements of Subpart C.
- Provides 18 grounds, as specified, for which the Secretary of State will deny, suspend, or revoke a provider’s certification and an additional 9 grounds, as specified, for which the Secretary of State may deny, suspend, or revoke a provider’s certification.
- Requires an education provider to maintain a $50,000 surety bond for the protection of the contractual rights of students.
- Prohibits an education provider from requesting the Social Security numbers of students, except for the purpose of verifying the identity of students taking a course pursuant to Section 176.240(e).
- Provides that if a course is taken in person, an education provider must examine each student’s government-issued photo identification.
- Requires education providers before being certified to provide the Department with all necessary information to allow the Department to participate in a complete course, without fee to the Department, so that the Department may determine if the course complies with Part 176.
- Provides that a certificate issued to a course of study and examination provider will be valid for one calendar year spanning from January-December, and that the course provider must submit the course of study to the Department for approval annually on or before October 1 of each year.
- Provides rules, as specified, for the Secretary of State reviewing and approving courses of study.
- Provides rules, as specified, governing contracts between education providers and students.
- Provides rules, as specified, relating to education provider’s website, and the security of consumer information.
- Authorizes any person to file a complaint against an education provider.
Course and Exam Rules
- Provides that if the course is an online course, an education provider must identify each student by one of the following: (a) Web video recording accompanied by an examination of the student’s government-issued photo identification card; (b) Dynamic knowledge-based authentication, in which case, rules for the authentication, as specified, must be followed; (c) Web video proctoring with screen monitoring by live certified proctors; or (d) Any method, or combination of methods, of identity verification submitted by a provider and approved by the Department that reasonably establishes the identity of the student and the student's presence during the online course.
- Requires education providers to incorporate a course content validation process that verifies student participation, comprehension of course material, and course completion, including the following: (a) Built-in timers to ensure that 180 minutes of instruction have been viewed and completed by the student, in which case, additional rules, as specified, must be followed to calculate the 180 minutes. (b) At least one course validation question must be asked following each multimedia clip that exceeds 60 seconds. (c) A final examination at the end of the course, which must consist of 50 questions from a test bank of a minimum of 100 questions that requires an 85% passing score and follows additional rules for the questions, as specified.
- Provides that if a student scores less than 85% on the final examination, the student must be re-tested using different questions from the test bank without having to repeat the course but shall be allowed to review the course before retaking the examination, and further provides that after failing 3 times, the student must retake the course.
- Permits a student who fails the examination may choose to take a different course before retaking the examination.
- Requires the education provider to allow a maximum of 30 days for a student to complete its course.
- Requires the education course content to meet the following educational objectives: (a) Promoting respect for and encouraging the observance of the duties and requirements of a Notary under the Notary Public Act; (b) Identifying potential damages and economic losses that could result from notarial misconduct; (c) Motivating continuing development of notarial competencies through education, including, but not limited to adherence to the Notary Public Act; and (d) Providing knowledge of the Notary Public Act, Part 176, and other laws related to or affecting notarial work.
- Requires education providers to monitor the Illinois General Assembly and update their course content to include any new amendments to the Notary Public Act and submit to the Department for review and approval within 60 days after the effective date of the law change.
- Provides that if an education provider wishes to substantially change the course content, a copy of the proposed revisions must be sent to the Department for approval.
- Provides that a provider may elect not to provide training that includes electronic notarization only if the application of the provider clearly and conspicuously states that the course submitted for approval will not include training with response to electronic notarizations and the provider includes a statement on its website that its training will not include electronic notarizations and will not suffice for an Electronic Notary commission application.
Notary Remittance Agent Licensure
- Requires a person to submit an application with information, as specified, and a surety bond issued by a bonding or insurance company authorized to do business in Illinois to be licensed as a Notary remittance agent.
- Provides that each bond of a Notary remittance agent must be for $5,000 or the amount of cash, checks, electronic payments or money orders received by and made payable to the remittance agent for remittance to the Department during the highest 15-day period in the year preceding the year for which the license is applied, whichever is greater.
- Provides the grounds, as specified, for which the Secretary of State may deny, suspend, or revoke a Notary remittance agent license.
Notary Remittance Agent Transactions
- Requires all applications for Notary or Electronic Notary commissions submitted to the Department by remittance agents to be submitted electronically or by regular mail.
- Requires all transactions to be submitted to the Department within 30 days after receipt by the remittance agent as required by 5 ILCS 312/2-107(c), and clarifies that transactions sent by regular mail will be considered submitted to the Department on the date of postmark.
- Provides that depending on the severity of the violation, failure to comply with the requirement to submit applications 30 days after receipt will be grounds for suspension or revocation.
- Prohibits a remittance agent from employing any individual, or any member of that individual’s immediate family, who is employed by the Office of the Secretary of State.
- Requires all applications to include the remittance agent’s assigned number in the designated position on the form.
- Provides that the fee submitted to the Department must be submitted in a manner that associates the payment with a specific application.
- Provides that failure of the remittance agent to associate the payment with the proper application will result in the rejection of the transaction.
- Requires every remittance agent to keep records of all transactions, as specified.
- Requires all records to be available to employees from the Secretary of State or the officers from the Secretary of State Department of Police within 60 minutes, Monday through Friday during business hours, after a request, but clarifies that for purposes of this provision, Secretary of State Police will only make records requests between 11:00 am and 4:00 pm Central Time.
Electronic Notarization System Provider Certification
- Requires annual certification of an electronic notarization system.
- Authorizes a governmental agency to develop an internal electronic notarization system for certification.
- Clarifies that the Secretary of State is solely responsible for certifying electronic notarization systems.
- Provides the information, as specified, that must be included in an application for system certification.
- Provides that the Secretary of State will certify an electronic notarization system if meets 13 requirements, as specified.
- Requires a provider to wait 12 months before reapplying for certification if the original or an amended application for certification is denied.
- Provides that if there is any change after a provider’s certification that affects the ability of an Electronic Notary to comply with Part 176 when performing an electronic notarial act, the provider must immediately notify the Secretary of State of the change.
- Provides that upon receiving notice of the change to a provider’s certification, the Secretary of State will determine whether the provider continues to comply with Part 176.
- Requires providers to provide 9 individual services, as specified, once their system is certified.
- Provides the grounds, as specified, for decertification of an electronic notarization system.
- Authorizes providers whose applications for certification are denied, or whose certification is suspended or decertified, to request an administrative hearing that follows the procedures outlined in Subpart K of Part 176 (See the Part 6 new law update).
- Provides rules, as specified, for solicitations by electronic notarization system providers.
- Requires the Secretary of State to maintain a public list of certified electronic notarization system providers in no particular order on its website.
AnalysisThis part 5 new law update on the Illinois Notary administrative rules dives into the specific requirements for various service providers that provide education and examination, application processing, and electronic notarization systems. These lengthy sections of the rules are exceedingly dense and prescriptive. For this reason, many provisions have been noted at only a high level. Readers who want to learn more about these requirements may reference the applicable sections of the rules noted in the “Affects” section of this new law update.
Read the adopted administrative rules (see page 8656).
Below are links to the other new law updates on the 2023 Illinois administrative rules.