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National Notary Association

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TX Senate Bill 1780

Legislation

State: Texas
Signed: May 27, 2023

Effective: January 01, 2024
Chapter: 258

Summary
Senate Bill 1780 adds a new authorization for Online Notaries to perform online notarizations on tangible documents and specifies requirements for these online notarial acts.
Affects
Amends Sections 406.101, 406.108, 406.109, 406.110 of and adds Sections 406.1106 and 406.1107 to the Government Code.
Changes

Definitions

  1. Defines “document” to mean a tangible (paper) instrument or electronic document.
  2. Defines “sign” to mean with the present intent to authenticate or adopt a record, to: (a) execute or adopt a tangible symbol; or (b) execute an electronic signature, as defined by Section 322.002 of the Business & Commerce Code.
  3. Defines “signature” to mean a tangible symbol or electronic signature that evidences the signing of a record executed or adopted by a person with the intent to sign the document.

Paper Online Notarization Authorization and Requirements

  1. Authorizes Online Notaries Public to take an acknowledgment of a signature on a tangible (paper) document using online notarization.
  2. Provides that an Online Notary must identify a person for an online notarization of a paper document using the same methods as for an electronic document.
  3. Requires an Online Notary who performs an online notarization in which the principal signs with a tangible symbol and not an electronic signature to reasonably confirm that a document before the Online Notary is the same document in which the principal made a statement or on which the principal executed a signature by the procedures in #4-6 immediately following.
  4. Provides that in taking an acknowledgment of a signature on a tangible document, an Online Notary satisfies the requirement to reasonably confirm that a document before the Online Notary is the same document in which the principal made a statement or on which the principal executed a signature if during a video and audio recording of the online notarization the acknowledgment is displayed to and identified by the principal and the principal signs the document and a declaration in substantially the following form that is a part of or securely attached to the document: “I declare under penalty of perjury that the document of which this declaration is a part or to which it is attached is the same document on which (name of Online Notary), an Online Notary, performed an online notarization and before whom I appeared by means of two-way video and audio conference technology on (date) (signature of principal) (printed name of principal).”
  5. Provides that in taking an acknowledgment of a signature on a tangible document, an Online Notary satisfies the requirement to reasonably confirm that a document before the Online Notary is the same document in which the principal made a statement or on which the principal executed a signature if the principal sends the document and declaration to the Online Notary not later than the third day after the date the online notarization was performed.
  6. Provides that in taking an acknowledgment of a signature on a tangible document, an Online Notary satisfies the requirement to reasonably confirm that a document before the Online Notary is the same document in which the principal made a statement or on which the principal executed a signature if the Online Notary: (a) in the video and audio recording, records the principal signing the document and declaration; (b) receives the document and declaration sent by the principal not later than the 10th day after the date the online notarization was performed; and (c) after receipt of the document and declaration from the principal, executes a notarial certificate that includes a statement in substantially the following form: “I, (name of Online Notary), witnessed, by means of video and audio conference technology, (name of principal) sign the attached document and declaration on (date).”

Record of Paper Online Notarizations

  1. Requires an Online Notary to keep a record of documents notarized by the Online Notary with a tangible symbol.
  2. Clarifies that an Online Notary must record the date and time of the online notarization and the type, the title, or a description of the document or proceeding in the Online Notary’s record.
  3. Requires for documents that are tangible, the record for each online notarization with a tangible symbol to contain the same elements required by Government Code 406.108(a) for an electronic record.

Paper Online Notarial Certificate

  1. Requires an Online Notary to keep a record of documents notarized by the Online Notary with a tangible symbol.
  2. Clarifies that an Online Notary must record the date and time of the online notarization and the type, the title, or a description of the document or proceeding in the Online Notary’s record.
  3. Requires for documents that are tangible, the record for each online notarization with a tangible symbol to contain the same elements required by Government Code 406.108(a) for an electronic record.

Online Oaths and Affirmations

  1. Authorizes an Online Notary to administer an oath or affirmation to a principal as an online notarization.
  2. Requires an Online Notary who administers an oath or affirmation online, except as otherwise provided by other Texas law, to: (a) identify the principal in compliance with Government Code 406.110(b); (b) create or cause the creation of a video and audio recording of the principal taking the oath or affirmation; and (c) retain or causes the retention under Government Code 406.108 of the recording.

Other Provisions

  1. Clarifies that the electronic record of an online notarization performed on electronic document must include the date and time of the online notarization.
  2. Requires an Online Notary to authenticate all online notarizations performed on an electronic document with the Online Notary’s electronic seal.
  3. Makes conforming changes to Government Code 406.108 (electronic record or journal) and 406.110 (online notarization procedures) consistent with the new paper online notarization law changes.
Analysis

Texas amends its online notarization statutes with provisions authorizing Online Notaries to take acknowledgments on tangible (paper) documents. Several other states have added similar provisions to their laws. For their part, the new Texas law follows the Revised Uniform Law on Notarial Act requirements for these types of online notarizations.

The new law expressly and only mentions the taking of acknowledgments when the online notarization involves a document. The new law also authorizes Online Notaries to administer oaths and affirmations as online notarial acts if the procedures specified in the new law are followed. The NNA wishes that the new law would have clarified whether these oaths and affirmations can involve a signed document.

The new law clarifies that an Online Notary must identify the remote principal using the same methods of ID as for a traditional paper or in-person electronic notarization. In addition, the new law requires the Online Notary to take several steps to confirm that the tangible document that is the subject of the online acknowledgment is the same document on which the remote principal made a statement or executed a signature. Chief among these steps is the requirement for the remote principal to sign a declaration regarding the signature on the tangible document and include this declaration with the signed document that is sent to the Notary. These online acknowledgments must contain a notarial certificate that indicates whether a physical or an electronic signature was made on the document in addition to the statement indicating that an online notarization was performed. In notarizing an online acknowledgment on a paper document, the Online Notary must affix an image of their physical official seal.

Read Senate Bill 1780.

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