Legislature(2005 - 2006)CAPITOL 106

02/03/2005 08:00 AM House STATE AFFAIRS


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ HB 79 APPROP: DIVISION OF ELECTIONS TELECONFERENCED
Moved Out of Committee
*+ HB 97 OATHS; NOTARIES PUBLIC; STATE SEAL TELECONFERENCED
Moved CSHB 97(STA) Out of Committee
*+ HB 94 ELECTIONS TELECONFERENCED
Heard & Held
Bills Previously Heard/Scheduled
HB  97-OATHS; NOTARIES PUBLIC; STATE SEAL                                                                                     
                                                                                                                                
VICE CHAIR GATTO  announced that the first order  of business was                                                               
HOUSE BILL  NO. 97,  "An Act  relating to  the authority  to take                                                               
oaths,  affirmations,  and  acknowledgments   in  the  state,  to                                                               
notarizations, to verifications, to  acknowledgments, to fees for                                                               
issuing certificates with  the seal of the state  affixed, and to                                                               
notaries public; and providing for an effective date."                                                                          
                                                                                                                                
8:07:59 AM                                                                                                                    
                                                                                                                                
ANNETTE  KREITZER,  Chief  of Staff,  Office  of  the  Lieutenant                                                               
Governor,  said attempts  have been  made through  legislation to                                                               
make changes to the notary  statutes, which have not been changed                                                               
since 1961.   She noted that  [House Bill 439] was  one such bill                                                               
last year, but  ended up dying on the House  floor.  The proposed                                                               
legislation -  HB 97  - would allow  the notary  administrator to                                                               
move to  a more  web-based system for  education and  would bring                                                               
the notary  statutes up to  current practice.   In response  to a                                                               
question from  Vice Chair Gatto,  she confirmed that HB  97 would                                                               
streamline government.                                                                                                          
                                                                                                                                
8:11:09 AM                                                                                                                    
                                                                                                                                
MS. KREITZER  directed attention  to a notary  statute comparison                                                               
[included in  the committee packet],  which outlines  the general                                                               
concepts of the bill.                                                                                                           
                                                                                                                                
8:11:48 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LYNN moved to adopt  the committee substitute (CS)                                                               
for HB  97, Version  24-GH1008\G, Bannister,  1/28/05, as  a work                                                               
draft.   There  being  no  objection, Version  G  was before  the                                                               
committee.                                                                                                                      
                                                                                                                                
8:12:20 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG referred to language  that had been in a                                                               
bill the previous year, which read as follows:                                                                                  
                                                                                                                                
          Sec 44.50.071.  Handbook.  The lieutenant                                                                           
     governor  may  produce   a  handbook  for  commissioned                                                                    
     notaries  public  on  the   Internet  and  shall,  upon                                                                    
     request, distribute the handbook  to each person who is                                                                    
     commissioned a  notary public under this  chapter.  The                                                                    
     handbook must  contain a summary  of the  provisions of                                                                    
     this  chapter and  the regulations  adopted under  this                                                                    
     chapter.                                                                                                                   
                                                                                                                                
8:13:53 AM                                                                                                                    
                                                                                                                                
MS.  KREITZER  confirmed  that   the  language  that  dealt  with                                                               
handbooks  in House  Bill  439  was left  out.    She noted  that                                                               
Representative Gruenberg  felt strongly about  including language                                                               
in  the  bill  that  mandates  that  the  administration  provide                                                               
handbooks.  She explained, "We  are moving to a web-based system;                                                               
we don't  wish to be constricted  in how we present  handbooks to                                                               
notaries."  She said there are  12,000 notaries in the state, and                                                               
she thinks publishing 12,000 handbooks is  a waste of money.  She                                                               
stated  that  she would  rather  see  the administration  provide                                                               
printed materials to commissioned notaries public upon request.                                                                 
                                                                                                                                
8:15:32 AM                                                                                                                    
                                                                                                                                
MS. KREITZER said the word "shall"  is problematic.  She said the                                                               
committee  could  decide  to  add  the  language  back,  but  the                                                               
administration would oppose it.                                                                                                 
                                                                                                                                
8:16:41 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG  reread  the  language.    He  said  he                                                               
understands  Ms. Kreitzer's  concern.   He  suggested having  the                                                               
language state  that if a handbook  is printed, then it  would be                                                               
distributed.   He  added, "The  main  thing is  to do  it on  the                                                               
Internet."                                                                                                                      
                                                                                                                                
8:17:54 AM                                                                                                                    
                                                                                                                                
SCOTT  CLARK,  Notary  Commission Administrator,  Office  of  the                                                               
Lieutenant  Governor, suggested  changing  the  language to  say,                                                               
"publish  information on  the Internet"  and  specify to  provide                                                               
that information, rather than using the word "handbook".                                                                        
                                                                                                                                
8:18:16 AM                                                                                                                    
                                                                                                                                
VICE CHAIR  GATTO asked  if it  would be better  to use  the term                                                               
"electronic  media" or  something  that is  not limiting,  rather                                                               
than using the word "Internet".                                                                                                 
                                                                                                                                
8:18:36 AM                                                                                                                    
                                                                                                                                
MS.  KREITZER said  the bill  drafters would  take care  of that.                                                               
She directed  attention to a  handout [included in  the committee                                                               
packet] showing  notary statute  comparisons between  current law                                                               
and proposed  legislation.  She  noted that the age  an applicant                                                               
must  be  would  be  changed  from  19  to  18,  which  would  be                                                               
consistent with the  residency requirement in AS  01.10.055.  The                                                               
applicant must  also legally reside  in the U.S.   All applicants                                                               
may not be  convicted/incarcerated felons or have  been so within                                                               
10  years.   Ms. Kreitzer  noted that  concerns were  raised last                                                               
year on this issue.                                                                                                             
                                                                                                                                
8:21:19 AM                                                                                                                    
                                                                                                                                
VICE  CHAIR  GATTO surmised  that  there  are various  levels  of                                                               
felonies and some would "disenfranchise a person."                                                                              
                                                                                                                                
8:21:36 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LYNN  stated that  he agrees with  the requirement                                                               
that an  applicant must legally  reside in the  U.S.  He  said he                                                               
worked on  a bill  last year  regarding this  issue, and  he said                                                               
there  was much  discussion  then  about how  to  determine if  a                                                               
person is indeed a legal alien.                                                                                                 
                                                                                                                                
8:22:32 AM                                                                                                                    
                                                                                                                                
MR. CLARK  said there will  be an application to  determine that.                                                               
In response to a follow-up  question from Representative Lynn, he                                                               
said  the applicant  will be  taken at  his/her word  when he/she                                                               
claims to be a legal resident.                                                                                                  
                                                                                                                                
8:23:28 AM                                                                                                                    
                                                                                                                                
MS. KREITZER,  in response to  a question from Vice  Chair Gatto,                                                               
clarified  that the  10-year period  for convicted  felons was  a                                                               
result of  past discussion  with the  former House  State Affairs                                                               
Standing Committee.  She listed the classes of felonies.                                                                        
                                                                                                                                
8:24:22 AM                                                                                                                    
                                                                                                                                
MR. CLARK  explained, "If we ...  set this idea to  the time that                                                               
they're convicted, there's a possibility  that they could qualify                                                               
while  they're still  in prison.   So,  that's why  it's tied  to                                                               
post-incarceration."                                                                                                            
                                                                                                                                
8:24:51 AM                                                                                                                    
                                                                                                                                
MS. KREITZER  returned to the review  of the handout.   She noted                                                               
that the  current term  for notaries public  will continue  to be                                                               
four  years.   The proposed  legislation would  create a  limited                                                               
governmental notary public commission,  which would be for state,                                                               
federal,  and  municipal  employees.   She  said  state  employee                                                               
notaries will  continue until they leave  their state employment.                                                               
Ms. Kreitzer said the $40  application fee for non-state employee                                                               
notaries would continue; however,  the fee for certificates would                                                               
be increased from $2 to $5 each.                                                                                                
                                                                                                                                
8:26:08 AM                                                                                                                    
                                                                                                                                
MR. CLARK  passed around examples  of the certificates.   He said                                                               
they are currently used for  two purposes:  verifying facts about                                                               
boards and commission  members so that the state  can sell bonds,                                                               
and  verifying  that  documents  passing  between  countries  are                                                               
official.                                                                                                                       
                                                                                                                                
8:26:59 AM                                                                                                                    
                                                                                                                                
MS.  KREITZER, regarding  notary bonds,  said the  amount of  the                                                               
bond would not  change, but limited government  notaries would be                                                               
excluded from the bond requirement.   The bill would also require                                                               
that the lieutenant governor keep the bonds for two years.                                                                      
                                                                                                                                
8:27:31 AM                                                                                                                    
                                                                                                                                
MS. KREITZER directed attention to  the second page of the notary                                                               
statute comparison  handout.   She said  the new  commission type                                                               
being  created to  deal with  limited  governmental notaries  and                                                               
those  commissions  is  currently  available  for  municipal  and                                                               
federal employees, in  addition to state employees.   She stated,                                                               
"If you're  a notary public  and you  serve the public,  then you                                                               
can bill  for your services.   If you are a  governmental notary,                                                               
you are not to bill for your services."                                                                                         
                                                                                                                                
MS. KREITZER highlighted commission  revocation.  She noted that,                                                               
currently, it happens by the  Administrative Procedure Act, which                                                               
is  a  cumbersome  procedure  for   the  public.    The  proposed                                                               
legislation  would allow  the lieutenant  governor  to forward  a                                                               
complaint  to   the  administrative  hearing  office   if  he/she                                                               
believes the complaint is sufficient.                                                                                           
                                                                                                                                
MR.  CLARK, in  response  to  a question  from  Vice Chair  Gatto                                                               
regarding  frivolous  complaints,  said most  of  the  complaints                                                               
received  are against  notaries and  approximately 75  percent of                                                               
them turn out to be misunderstandings about notarization rules.                                                                 
                                                                                                                                
8:30:09 AM                                                                                                                    
                                                                                                                                
MS.  KREITZER  said [HB  97]  would  help the  administration  by                                                               
providing  a  clear   procedure  for  how  to   deal  with  those                                                               
complaints when they occur.   Regarding notary data, she said the                                                               
bill   proposes  collecting   additional  information   from  the                                                               
applicants,  which would  remain confidential.   The  information                                                               
that is currently  being collected would stay  public: the notary                                                               
public's   name,  mailing   address,   surety  information,   and                                                               
commission  date.   There  would  be  no  changes in  status  for                                                               
noncommissioned notary publics under the proposed legislation.                                                                  
                                                                                                                                
8:31:33 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LYNN recalled  that when he was on  active duty in                                                               
the  military, he  frequently acted  as  a notary  public of  the                                                               
commissioned officers.   He  said he is  now in  retired reserve,                                                               
and he asked if he could still [perform notary duties].                                                                         
                                                                                                                                
8:32:07 AM                                                                                                                    
                                                                                                                                
MR.  CLARK responded  that one  of  the problems  with the  whole                                                               
concept of  a noncommissioned notary  public is that "we  have no                                                               
involvement   in  either   post   masters,  or   the  court,   or                                                               
commissioned military officers"; therefore,  he said he could not                                                               
answer Representative  Lynn's question.   He  added, "Nor  can we                                                               
authenticate  the  notarizations  that  are  performed  by  those                                                               
notaries."  He offered an example.                                                                                              
                                                                                                                                
8:33:26 AM                                                                                                                    
                                                                                                                                
MR.  CLARK, in  response  to a  remark  by Representative  Elkins                                                               
regarding  electronic notarization,  stated, "That  whole concept                                                               
is going  to happen,  but I  don't think that  any state  is very                                                               
advanced right  now in making  that happen."   He noted  that the                                                               
pilot programs for electronic notarization,  in those states that                                                               
have them, have failed.                                                                                                         
                                                                                                                                
8:34:44 AM                                                                                                                    
                                                                                                                                
VICE  CHAIR GATTO  complimented  the state  on its  technological                                                               
advances.                                                                                                                       
                                                                                                                                
8:35:11 AM                                                                                                                    
                                                                                                                                
MR. CLARK  said the most  important result  of the bill  would be                                                               
its move toward web-based processes.                                                                                            
                                                                                                                                
8:37:23 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG  directed  attention  to  Amendment  1,                                                               
labeled  [24-GH1008\G.1,   Chenoweth,  2/3/05],  which   read  as                                                               
follows:                                                                                                                        
                                                                                                                                
    Page   4,   line   13,   following   "(or   County   of                                                                     
     __________________":                                                                                                       
          Insert "or Municipality of ___________________) "                                                                     
                                                                                                                                
    Page   4,   line   25,   following   "(or   County   of                                                                     
     __________________":                                                                                                       
          Insert "or Municipality of ___________________) "                                                                     
                                                                                                                                
    Page   5,   line   8,    following   "(or   County   of                                                                   
     __________________":                                                                                                     
          Insert "or Municipality of ___________________) "                                                                   
                                                                                                                                
    Page   5,   line   23,   following   "(or   County   of                                                                     
     __________________":                                                                                                       
          Insert "or Municipality of ___________________) "                                                                     
                                                                                                                                
     Page   6,   line   6,    following   "(or   County   of                                                                    
     __________________":                                                                                                       
          Insert "or Municipality of ___________________) "                                                                     
                                                                                                                                
     Page   6,   line   19,   following   "(or   County   of                                                                    
     __________________":                                                                                                       
     Insert "or Municipality of ___________________) "                                                                          
                                                                                                                                
The committee took a brief at-ease.                                                                                             
                                                                                                                                
REPRESENTATIVE  GRUENBERG  explained   that  the  term  "judicial                                                               
district" has  been used for  a long time,  and he said  he would                                                               
like to add "municipality".                                                                                                     
                                                                                                                                
8:39:31 AM                                                                                                                    
                                                                                                                                
MS. KREITZER, after  clarification from Representative Gruenberg,                                                               
said the administration would have no problem with that.                                                                        
                                                                                                                                
8:39:39 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG  moved Amendment  1.    There being  no                                                               
objections, Amendment 1 was adopted.                                                                                            
                                                                                                                                
8:39:53 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG  introduced [Conceptual]  Amendment  2,                                                               
[labeled  24-GH1008\G.2,   Chenoweth,  2/3/05],  which   read  as                                                               
follows:                                                                                                                        
                                                                                                                                
     Page 17, following line 11:                                                                                                
     Insert:                                                                                                                    
          "Sec. 44.50.073.  Handbook.  The lieutenant                                                                         
     governor  may  produce   a  handbook  for  commissioned                                                                    
     notaries  public  on  the   Internet  and  shall,  upon                                                                    
     request, distribute the handbook  to each person who is                                                                    
     commissioned a  notary public under this  chapter.  The                                                                    
     handbook must  contain a summary  of the  provisions of                                                                    
     this  chapter and  the regulations  adopted under  this                                                                    
     chapter."                                                                                                                  
                                                                                                                                
REPRESENTATIVE  GRUENBERG asked  Mr. Clark  and Ms.  Kreitzer for                                                               
suggestions on how  to improve Amendment 2.   After incorporating                                                               
some  changes  recommended  by   Mr.  Clark,  Ms.  Kreitzer,  and                                                               
committee members,  Conceptual Amendment  2 [treated  as amended]                                                               
read as follows:                                                                                                                
                                                                                                                                
     Page 17, following line 11:                                                                                                
     Insert:                                                                                                                    
          "Sec. 44.50.073.  Published summary.  The                                                                           
     lieutenant   governor  may   publish  information   for                                                                    
     commissioned  notaries public  by electronic  means and                                                                    
     shall, upon  request, distribute to each  person who is                                                                    
     commissioned  a   notary  public  under   this  chapter                                                                    
     information containing  a summary of the  provisions of                                                                    
     this  chapter and  the regulations  adopted under  this                                                                    
     chapter."                                                                                                                  
                                                                                                                                
8:44:16 AM                                                                                                                    
                                                                                                                                
MS. KREITZER  said that's acceptable  as a  conceptual amendment.                                                               
She said she thinks one purpose  of not using the term "handbook"                                                               
is because it puts the administration  in a box regarding how the                                                               
information is delivered.  Ms.  Kreitzer expressed willingness to                                                               
work with the committee further on this bill.                                                                                   
                                                                                                                                
8:46:50 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG  stated   his  understanding  that  the                                                               
legislature passed legislation for  electronic transactions in AS                                                               
09.80.010.   He  said he  wondered if  the Office  of the  Notary                                                               
Public could take a look at that.                                                                                               
                                                                                                                                
8:47:36 AM                                                                                                                    
                                                                                                                                
MS. KREITZER  said this issue  is being studied and,  although it                                                               
may  seem like  an easy  one  on the  surface,  it is  not.   For                                                               
notaries  public,   it's  more   difficult  to   have  electronic                                                               
notarizations.  She  said consideration is being made  to look in                                                               
statute  and  take  out  any  impediments  to  the  legislature's                                                               
consideration of  the matter  in the  future when  technology has                                                               
advanced.                                                                                                                       
                                                                                                                                
8:48:29 AM                                                                                                                    
                                                                                                                                
MR.  CLARK noted  that the  proposed  bill states  that a  notary                                                               
public's signature must  be in his/her own handwriting.   He said                                                               
that might be an impediment  to electronic notarization.  Some of                                                               
the  language  regarding seals  may  also  be an  impediment,  he                                                               
added.                                                                                                                          
                                                                                                                                
8:49:03 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG  said he would  be happy to work  on the                                                               
language with him.                                                                                                              
                                                                                                                                
8:49:22 AM                                                                                                                    
                                                                                                                                
MR. CLARK said he needs more time  to look at the entire bill and                                                               
"model" bills, as well.                                                                                                         
                                                                                                                                
8:49:25 AM                                                                                                                    
                                                                                                                                
VICE CHAIR GATTO said, "I  think this bill moves more comfortably                                                               
without complicating it with things  that I did not initially see                                                               
as part of this legislation."                                                                                                   
                                                                                                                                
8:49:38 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG  said, "I  believe  that  the title  is                                                               
broad enough to accomplish that."                                                                                               
                                                                                                                                
8:51:29 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG  requested   that  the  committee  give                                                               
permission for  Legislative Legal and Research  Services to speak                                                               
directly with Ms. Kreitzer and Mr. Clark.                                                                                       
                                                                                                                                
VICE  CHAIR GATTO  asked if  there were  any objections  [to that                                                               
request].  [No objections were stated.]                                                                                         
                                                                                                                                
8:51:55 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG  moved to adopt Conceptual  Amendment 2,                                                               
as amended.  There being no objection, it was so ordered.                                                                       
                                                                                                                                
8:52:39 AM                                                                                                                    
                                                                                                                                
VICE CHAIR GATTO opened public testimony.                                                                                       
                                                                                                                                
8:52:49 AM                                                                                                                    
                                                                                                                                
PATRICIA BRAY,  testifying on behalf  of herself, noted  that she                                                               
has worked  between Mexico and  the U.S. on coordination  of many                                                               
bi-national  projects   and  has  taken  a   global  dialogue  on                                                               
agriculture  trade to  the United  Nation's  world conference  on                                                               
women  in China.    She revealed  that she  has  "a situation  of                                                               
identity  theft,"  as  well  as  "a  personal  situation  with  a                                                               
notary."   Ms.  Bray thanked  the House  Rules Committee  and the                                                               
governor for considering this issue.                                                                                            
                                                                                                                                
8:54:09 AM                                                                                                                    
                                                                                                                                
MS. BRAY  recalled that President  George W. Bush has  signed the                                                               
Identity Theft Penalty  Enhancement Act.  She  quoted a statement                                                               
made by President  Bush regarding identity theft.   She indicated                                                               
that the  Act was  a bi-partisan  effort of  Congress.   Ms. Bray                                                               
recommended that the House Rules  Committee incorporate the rules                                                               
and regulations under the national legislation into HB 97.                                                                      
                                                                                                                                
8:57:17 AM                                                                                                                    
                                                                                                                                
VICE CHAIR  GATTO, in response to  remarks by Ms. Bray,  told her                                                               
that the  issue of identity  theft and electronic  signatures may                                                               
be  addressed in  the  future, but  he would  like  to limit  the                                                               
discussion to the notary public bill in the interest of time.                                                                   
                                                                                                                                
8:57:36 AM                                                                                                                    
                                                                                                                                
MS. BRAY  said she has  evidence of  a notary using  her personal                                                               
information on an official document  without her permission.  She                                                               
said  [HB 97]  identifies  the revocation  of  a notary  public's                                                               
right,  which is  important.   She said,  "A notary  can take  25                                                               
years of  someone's life  and destroy  it in  two minutes."   Ms.                                                               
Bray  talked  about  issues  related   to  banking  and  national                                                               
security.                                                                                                                       
                                                                                                                                
8:58:34 AM                                                                                                                    
                                                                                                                                
VICE  CHAIR GATTO  offered his  understanding that  Ms. Bray  had                                                               
spoken with the "notary office."                                                                                                
                                                                                                                                
8:59:01 AM                                                                                                                    
                                                                                                                                
MS. BRAY answered no.  In  response to a question from Vice Chair                                                               
Gatto specifically asking  if she had spoken with  Mr. Clark, Ms.                                                               
Bray  answered yes.   She  mentioned oaths  and affirmations  and                                                               
said, "There is a real need to tighten  up or put in that a judge                                                               
must have a  current oath of office in effect  to be operating in                                                               
the  judiciary,   and  Alaska   does  not  have   that  situation                                                               
existing."                                                                                                                      
                                                                                                                                
9:00:03 AM                                                                                                                    
                                                                                                                                
VICE CHAIR GATTO closed public testimony.                                                                                       
                                                                                                                                
9:00:13 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   GRUENBERG   moved   to  report   the   committee                                                               
substitute  (CS)  for  HB  97,  Version  24-GH1008\G,  Bannister,                                                               
1/28/05,   as  amended,   out   of   committee  with   individual                                                               
recommendations and  the accompanying fiscal notes.   There being                                                               
no objection,  CSHB 97(STA) was  reported out of the  House State                                                               
Affairs Standing Committee.                                                                                                     

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