Golden State Today

California Attorney General Rob Bonta has expressed strong concerns regarding the Securing and Enabling Commerce Using Remote and Electronic (SECURE) Notarization Act in a letter sent to Congress. The proposed federal law would preempt state notarization laws, which Bonta argues should be allowed to coexist with more robust state regulations to better monitor and prevent data breaches, fraud, and other abuses.

“As more of our lives move online, we must be diligent about safeguarding consumer privacy and preventing fraud,” said Attorney General Bonta. “States are the front lines of consumer protection; any federal legislation should embrace, rather than preempt, state notarization laws. As the People’s Attorney, I'm committed to protecting vulnerable Californians from fraud and other abuses. That will be much more difficult for many of our most sensitive transactions — from buying a house to signing a will — if California's online notarization laws are preempted.”

Notarization serves to verify the identities of individuals formalizing important transactions such as creating advance healthcare directives, granting powers of attorney, and conducting real estate sales and purchases. Although these events are infrequent for most people, related fraud can have significant consequences.

State laws have traditionally governed notarizations. California has an extensive body of state law that includes regulations on notaries' registration, eligibility, duties, identity authentication processes, preservation of private information related to notarial acts, and oversight by the California Secretary of State. In 2023, California enacted SB 696, the Online Notarization Act, after previous attempts failed due to insufficient consumer protections. SB 696 provides safeguards including prohibitions on sharing consumers’ personal information and requirements for data security.

The SECURE Notarization Act would broadly preempt these state protections in the area of remote online notarization. If enacted into law, it would also mandate states recognize out-of-state online notarizations meeting minimum standards. This forced reciprocity could lead to weakened consumer protections nationwide. The act lacks guidance on preserving electronic recordings and other sensitive personal information collected during remote online notarizations.

A copy of Attorney General Bonta's letter is available here.