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Life Health > Running Your Business > Selling

Senate Notarization Bill Could Simplify Digital Business

By Allison Bell

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Congress could soon eliminate the need for clients to see notary publics in person to complete transactions involving life insurance, annuities and retirement plans.

The Senate Judiciary Committee is considering S. 1212, the Securing and Enabling Commerce Using Remote and Electronic Notarization Act of 2023 bill.

S. 1212 is a companion to H. 1059, a bill that passed in the House by a voice vote on Feb. 27.

S. 1212 would make remote online notarization services available for transactions involving interstate commerce throughout the United States.

The History

Traditionally, clients have used notary publics to verify their identity and to show that they are making certain moves, such as changing retirement account beneficiaries, voluntarily.

Many states have been allowing the use of online notarization services. The trend accelerated in 2020, when the COVID-19 pandemic hit.

Financial services groups support retaining and expanding access to online notarizations. The Insured Retirement Institute, for example, put support for SECURE Notarization Act legislation in its 2023 Federal Retirement Security Blueprint.

SECURE Notarization Act

S. 1212 was introduced last month by Sen. Kevin Cramer, R-N.D., and co-sponsored by Sen. Mark Warner, D-Va. It’s similar to S. 3533, a bill introduced in the 116th Congress, and S. 1625, a bill introduced in the 117th Congress.

The bill would require every state to recognize notarizations conducted under other states’ rules, and it would keep a state from banning use of remote online notarizations in matters involving interstate commerce.

Security

Some groups, including the Electronic Frontier Foundation and the California League of Independent Notaries, say bills like S. 1212 could increase the risk of identity theft by limiting states’ ability to impose tough notary registration and oversight standards.

Financial services groups and companies such as DocuSign say modern identity verification technology can make online notarizations at least as secure as in-person notarizations.

(Image: H Ko/Adobe Stock)

Allison Bell

Think_Allison

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