An online notarization bill with strong support from financial services groups may be moving ahead in Congress.
An arm of the House Energy and Commerce Committee, the Consumer Protection and Commerce Subcommittee, has put H.R. 3962, the Securing and Enabling Commerce Using Remote and Electronic Notarization Act of 2021, on the agenda for a hearing set for noon Thursday.
The bill would let notaries in one state notarize signatures in another state online, if the notarizations "occur in or affect interstate commerce."
What It Means
The bill could help an agent or advisor who wants to help a client complete a transmission minimize use of in-person office visits, paper documents, wet signatures and postal mail.
The bill could do the same for any out-of-state firms that wanted to do business with an agent or advisor's clients. Distant advisors could become more formidable competitors for any brick-and-mortar firms that have used an on-site notary to win clients' hearts.
H.R. 3962 Provisions
Under H.R. 3962, a notary who wanted to notarize a signature remotely could verify an individual's identity using one of two strategies.
The notary could use at least two distinct types of processes or services to verify the individual's identity.
They could also take an oath or affirmation from a credible witness who was either with the individual or who had personal knowledge of the identity of the individual.
The bill would preempt most state notarization rules.
The bill could allow states to set some local rules, if they continued to let out-of-state notaries operate in their states, and if they avoided favoring the use of any specific technology or any specific technical specifications.
The Supporters
Rep. Madeleine Dean, D-Pa., and Rep. Kelly Armstrong, R-N.D., introduced H.R. 3962 in June 2021.
