NC Administrative Rules (2024 -- No. 1)

Rule/Regulation

State: North Carolina

Effective: January 01, 2024

Summary
The first portions of the “Phase 1” rules put out for comment last August have been adopted by the North Carolina Secretary of State, defining terms and addressing matters related to charging fees.

Affects

Adds Chapter 07K .0101, .0201, .0202, .0203, .0204, .0205, and .0206 to Title 18 of the North Carolina Administrative Code.

Changes

Defines “approved,” armed forces of the United States,” “bank or financial institution,” “certificate of appointment,” “commission certificate,” “dishonored payment” or “payment that has been dishonored,” “enter information,” “federal business mileage rate,” “federally recognized Indian tribe,” “file,” “filer,” “filing,” “form,” “form preparer,” “information technology” or “IT”, “information technology security” or “IT security,” “initial appointment” “instructor,” “certified notary public instructor,” “certified instructor,” “notary instructor,” and “certified notary instructor,” “location,” “long-term,” “notarial transaction process,” “person,” “state recognized tribe,” “successfully complete” and “successful completion,” “technological failure,” “technology provider,” “termination of employment,” “traditional notarization,” “traditional notary public,” “type of notarial act,” “under the exclusive control of the notary,” and “United States” or “U.S.”
Requires a Notary who charges travel fees to refer to the IRS website for the current federal business mileage rate prior to charging the travel fee.
Requires a Notary to provide an estimate of the total fee and the basis for the estimated charges to a principal who requests a fee estimate from the Notary.
Requires a Notary’s journal to contain the following with regard to a specific notarial act for which fees were charged: (a) how much the Notary charged for each notarial act performed; and (b) if travel reimbursement was charged, the actual reimbursement charged, and the fee charged per mile.
Provides that a Notary who charges travel fees pursuant to G.S. 10B- 31(5) may obtain the advance consent of the principal in writing and delivered in any manner agreed upon by the Notary and the principal.
Requires a Notary who charges travel fees to obtain advance written consent of the principal that includes the following information: (a) the date of the consent, (b) the name of the principal, (c) the name of the Notary; (d) the estimated mileage that the Notary will charge, (e) the fee per mile that the Notary will charge, and (f) the planned date of the Notary's travel.

Analysis

The first of the so-called “Phase 1” administrative rules that were proposed by the Secretary of State last August have been adopted in part. The Phase 1 rules were much more extensive than the actual adoptions noted in this new law update. The rules that were adopted included over 30 definitions used in Chapter 10B of the North Carolina General Statutes and rules in the administrative code and several provisions that relate to Notaries who charge fees for notarial acts and travel fees. Conspicuously absent from the adopted rules include general provisions proposed last August related to the payment of fees to the Department of the Secretary of State, various forms Notaries would be required to submit to the Department, changes to the Electronic Notary rules, and provisions related to the journal. It is unknown when these proposed rules will be adopted, if at all. The journal rules could be off the table given the change to the statute removing the requirement for Notaries to keep a journal and making it permissive instead that was enacted under Senate Bill 615 last September.

Read the adopted administrative rules (see pages 1031-2033).