Legislature(2005 - 2006)BELTZ 211

02/15/2005 03:30 PM Senate STATE AFFAIRS


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ SB 88 POLICY ON GENERAL FUND REVENUE SHORTFALL TELECONFERENCED
Heard & Held
*+ SB 72 OATHS; NOTARIES PUBLIC; STATE SEAL TELECONFERENCED
Heard & Held
*+ SCR 2 ROTARY INTERNATIONAL YEAR 2005 TELECONFERENCED
Moved SCR 2 Out of Committee
+ EO 113 - RELATING TO TIC TELECONFERENCED
Bills Previously Heard/Scheduled
                                                                                                                                
           SB  72-OATHS; NOTARIES PUBLIC; STATE SEAL                                                                        
                                                                                                                                
SENATOR GENE THERRIAULT  said the committee would hear  SB 72 and                                                               
although  he didn't  intend to  take  any action,  he wanted  the                                                               
issue introduced.                                                                                                               
                                                                                                                                
ANNETTE KREITZER,  chief of  staff to  Lt. Governor  Loren Leman,                                                               
asked members to  look at the sheet comparing  the current notary                                                               
statute and  the proposed  changes. They  vetted this  with other                                                               
notaries, insurance company lobbyists and with banks, she said.                                                                 
                                                                                                                                
With regard to qualifications, they  propose: lowering the age to                                                               
18;  making  residency  requirements  the  same  as  the  general                                                               
residency statute;  requiring the applicant to  reside legally in                                                               
the  U.S. and  not  have  been convicted  or  incarcerated for  a                                                               
felony within 10 years of the application.                                                                                      
                                                                                                                                
5:10:45 PM                                                                                                                    
                                                                                                                                
CHAIR  THERRIAULT  asked whether  a  person  living abroad  could                                                               
notarize documents.                                                                                                             
                                                                                                                                
SCOTT  CLARK,  notary  commission administrator,  explained  that                                                               
notary commissions  are restricted to  a certain area  so someone                                                               
that  wasn't physically  in  the state  wouldn't  qualify for  an                                                               
Alaskan  notary  commission.  As  proposed,  the  applicant  must                                                               
reside in the U.S. but wouldn't have to be a citizen.                                                                           
                                                                                                                                
CHAIR THERRIAULT  remarked the stamp  doesn't travel  outside the                                                               
state.                                                                                                                          
                                                                                                                                
MR. CLARK agreed.                                                                                                               
                                                                                                                                
SENATOR   CHARLIE   HUGGINS   asked  whether   military   officer                                                               
signatures would continue to be recognized as official.                                                                         
                                                                                                                                
MR.  CLARK  said  current statute  recognizes  the  authority  of                                                               
commissioned military officers and no change is proposed.                                                                       
                                                                                                                                
5:13:23 PM                                                                                                                    
                                                                                                                                
MS.  KREITZER said  the commissions  are  separated into  limited                                                               
governmental  notaries  public,  and  notaries  public.  Notaries                                                               
public have a four-year term  while limited governmental notaries                                                               
public  have  open-ended  commissions that  end  when  employment                                                               
ends.                                                                                                                           
                                                                                                                                
As proposed, the  $40 application fee would remain  the same, but                                                               
the  fee for  a  Lieutenant Governor  certificate would  increase                                                               
from $2 to $5.                                                                                                                  
                                                                                                                                
With regard to a bond, a  $1,000 notary bond would be required of                                                               
all applicants except the new  limited governmental notary public                                                               
and the  Lieutenant Governor  is required to  keep those  for two                                                               
years.                                                                                                                          
                                                                                                                                
5:14:54 PM                                                                                                                    
                                                                                                                                
SENATOR WAGONER  questioned the necessity  of increasing  the fee                                                               
by $3.                                                                                                                          
                                                                                                                                
MS. KREITZER said  the increase would bring  an additional $8,700                                                               
as reflected in the fiscal note.                                                                                                
                                                                                                                                
MR. CLARK  said the  $2 fee  has been in  effect since  1961. The                                                               
certificates verify  details about notarizations and  are usually                                                               
required  for   documents  that  go  to   foreign  countries,  he                                                               
explained. The $2  fee didn't cover the cost of  the 3,000 ornate                                                               
certificates  prepared each  year and  the $5  fee is  fair. Many                                                               
states charge between $20 and $25 for the same type certificate.                                                                
                                                                                                                                
CHAIR  THERRIAULT  said  these   are  clearly  not  the  standard                                                               
notarization that you get from the bank.                                                                                        
                                                                                                                                
MR. CLARK said  most of the public never sees  or needs this type                                                               
certificate.                                                                                                                    
                                                                                                                                
5:17:06 PM                                                                                                                    
                                                                                                                                
MS. KREITZER explained  that with regard to  commission types the                                                               
limited governmental notaries public  would include municipal and                                                               
federal employees in  addition to state employees.  This makes it                                                               
clear that the commissions may be held concurrently.                                                                            
                                                                                                                                
CHAIR  THERRIAULT  questioned  whether  limited  commissions  are                                                               
limited to a specific job and/or specific transaction.                                                                          
                                                                                                                                
MS. KREITZER clarified that  limited governmental notaries public                                                               
have  that title  because they  work for  a governmental  entity.                                                               
They can  do all the  same notary actions  as a notary  public it                                                               
simply  signifies they  work for  a federal,  state or  municipal                                                               
government and that they don't charge a fee.                                                                                    
                                                                                                                                
5:18:58 PM                                                                                                                    
                                                                                                                                
CHAIR  THERRIAULT  noted  they  don't   charge  a  fee  and  then                                                               
questioned  whether they  could notarize  things for  the general                                                               
public.                                                                                                                         
                                                                                                                                
MS. KREITZER said they could  notarize things for the public, but                                                               
typically people go elsewhere.                                                                                                  
                                                                                                                                
CHAIR  THERRIAULT asked  whether  a  limited governmental  notary                                                               
public working  in a  government office would  have the  power to                                                               
decline offering private notary services.                                                                                       
                                                                                                                                
MR.  CLARK referenced  page 10,  lines  29-30 to  clarify that  a                                                               
limited governmental  notary public  could perform  notarial acts                                                               
only in the conduct of official government business.                                                                            
                                                                                                                                
CHAIR THERRIAULT questioned whether that was a new restriction.                                                                 
                                                                                                                                
5:20:38 PM                                                                                                                    
                                                                                                                                
MS. KREITZER said it is new  and they repealed and readopted most                                                               
of the  statute. She  said they  examined the  statute carefully,                                                               
but were certainly open to suggestions                                                                                          
                                                                                                                                
With  regard to  commission  revocation, she  explained that  the                                                               
Administrative Procedure  Act is cumbersome so  they propose that                                                               
the  Lieutenant  Governor  would   have  the  ability  to  review                                                               
complaints and dismiss them if found to be trivial.                                                                             
                                                                                                                                
They propose  to move to  a web based  system, but don't  want to                                                               
expose  private personal  information. The  public needs  to know                                                               
who and where notaries public are  located and how to reach them,                                                               
but they propose to keep  e-mail addresses, fax numbers and other                                                               
information private.                                                                                                            
                                                                                                                                
No changes were proposed for non-commissioned notaries.                                                                         
                                                                                                                                
SENATOR THOMAS WAGONER  suggested the state not get  to the point                                                               
that notaries  public all  charge the  maximum fee  allowed under                                                               
law.                                                                                                                            
                                                                                                                                
MS.  KREITZER  assured members  the  Lieutenant  Governor has  no                                                               
intention to go down that path.                                                                                                 
                                                                                                                                
She  noted  a  proposed  amendment that  is  designed  to  remove                                                               
impediments to  electronic notarization in the  future. She asked                                                               
members to  review the draft  amendment before the bill  is heard                                                               
again.                                                                                                                          
                                                                                                                                
CHAIR THERRIAULT  asked what constitutes  electronic notarization                                                               
because he's only familiar with traditional notarization.                                                                       
                                                                                                                                
5:24:54 PM                                                                                                                    
                                                                                                                                
MR.  CLARK  explained  the  traditional  aspect  of  notarization                                                               
wouldn't change and electronic notarizations  in the future would                                                               
be  held to  the same  high standards  as current  notarizations.                                                               
That being said, he couldn't  say what an electronic notarization                                                               
would look like  because no pilot project had  been successful to                                                               
date. Digital  signatures are common  right now  and successfully                                                               
addressing  the  intra-country  security   issue  is  a  work  in                                                               
progress.                                                                                                                       
                                                                                                                                
CHAIR THERRIAULT  questioned, "The  current wording  here removes                                                               
impediments to move to that through regulatory changes?"                                                                        
                                                                                                                                
MS. KREITZER  said they aren't looking  for regulatory authority.                                                               
It's simply preparing the way  for a future Legislature to define                                                               
what  electronic notarization  would  look like.  If you  believe                                                               
we're looking  for regulatory authority we're  open to amendment,                                                               
she said.                                                                                                                       
                                                                                                                                
5:27:06 PM                                                                                                                    
                                                                                                                                
CHAIR THERRIAULT  read the proposed amendment  and interpreted it                                                               
to give authority.                                                                                                              
                                                                                                                                
MS.  KREITZER said  her interpretation  is that  you can't  adopt                                                               
regulations where technology doesn't exist.                                                                                     
                                                                                                                                
CHAIR THERRIAULT  replied if the  technology came  into existence                                                               
tomorrow they'd be pre-approved.                                                                                                
                                                                                                                                
MS. KREITZER agreed it would be  to the extent that the law would                                                               
allow.  She said  she wouldn't  mind withdrawing  the regulations                                                               
portion because the intent is to remove impediments.                                                                            
                                                                                                                                
CHAIR THERRIAULT  said a  future Legislature  that wants  to make                                                               
that policy call would remove the impediments when appropriate.                                                                 
                                                                                                                                
There were no further questions.                                                                                                
                                                                                                                                
5:28:22 PM                                                                                                                    
                                                                                                                                
CHAIR THERRIAULT announced he would hold SB 72 in committee.                                                                    

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