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July 28, 2022 at 01:25 PM
What You Need to Know
- H.R. 3962,which passed 323-92, would set minimum national standards for online notarizations.
- The California attorney general says the bill could weaken state consumer protection standards.
- The House has also passed a statistics education support bill and a Medicare telehealth benefits bill.
The House has passed a bill that could help clients complete more financial services transactions online.
Lawmakers voted 323-92 Wednesday to pass a bundle of legislation that included H.R. 3962, the Securing and Enabling Commerce Using Remote and Electronic Notarization Act of 2022 bill.
The bill would set minimum national standards for online notarizations and let a consumer in one state use an online notary in any state, if the transaction involved relates to interstate commerce.
The House has also approved a number of other bills of interest to agents and advisors this week, including H.R. 4040, a Medicare telehealth benefits bill; H.R. 4586, a credit rating organization bill; and H.R. 3588, a math education support bill.
What It Means
Some states already make using online notarizations, including interstate online notarizations, easy. Others don’t.
If H.R. 3962 becomes law and works as expected, you may have an easier time completing transactions online and doing business with clients online.
The downside is that agents and advisors in distant places might have an easier time doing business with your clients.
The Bill
H.R. 3962 would require a notary notarizing a signature remotely to use at least two different types of processes or services to check the signer’s identity.
A notary could also rely on an oath from a credible witness who was with the signer or who had personal knowledge of the signer’s identity.
The bill would preempt state rules that shut out out-of-state notaries or favor specific types of notarization technology or notarization technical guidelines.
The Arguments
California Attorney General Rob Bonta sent the leaders of the House Energy and Commerce Committee — the committee with the jurisdiction over the bill — a letter opposing it.
