House File 736 - IntroducedA Bill ForAn Act 1providing for notarial acts, including by providing
2for the use of electronic media, providing penalties, and
3including effective date provisions.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1   Section 1.  Section 9B.1, Code 2019, is amended to read as
2follows:
   39B.1  Short title.
   4This chapter may be cited as the “Revised Uniform Law on
5Notarial Acts” Acts (2018)”
.
6   Sec. 2.  Section 9B.2, subsection 10, paragraph b, Code 2019,
7is amended to read as follows:
   8b.  “Personal Except as provided in section 9B.14A, “personal
9 appearance” does not include appearances which require video,
10optical, or technology with similar capabilities.
11   Sec. 3.  Section 9B.4, Code 2019, is amended by adding the
12following new subsection:
13   NEW SUBSECTION.  3.  A notarial officer may certify that a
14tangible copy of an electronic record is an accurate copy of
15the electronic record as provided in section 9B.14A.
16   Sec. 4.  Section 9B.6, Code 2019, is amended to read as
17follows:
   189B.6  Personal appearance required.
   19If a notarial act relates to a statement made in or a
20signature executed on a record, the individual making the
21statement or executing the signature shall appear personally
22before the notarial officer. This section is satisfied by a
23remotely located individual using communication technology to
24appear before a notary public as provided in section 9B.14A.

25   Sec. 5.  NEW SECTION.  9B.14A  Notarial act performed for
26remotely located individual.
   271.  As used in this section unless the context otherwise
28requires:
   29a.  “Communication technology” means an electronic device or
30process that does all of the following:
   31(1)  Allows a notary public and a remotely located individual
32to communicate with each other simultaneously by sight and
33sound.
   34(2)  When necessary and consistent with other applicable
35law, facilitates communication with a remotely located
-1-1individual who has a vision, hearing, or speech impairment.
   2b.  “Foreign state” means a jurisdiction other than the
3United States, a state, or a federally recognized Indian tribe.
   4c.  “Identity proofing” means a process or service by which
5a third person provides a notary public with a means to verify
6the identity of a remotely located individual by a review of
7personal information from public or private data sources.
   8d.  “Outside the United States” means a location outside
9the geographic boundaries of the United States, Puerto Rico,
10the United States Virgin Islands, and any territory, insular
11possession, or other location subject to the jurisdiction of
12the United States.
   13e.  “Remotely located individual” or “individual” means an
14individual who is not in the physical presence of the notary
15public who performs a notarial act under subsection 3.
   162.  A remotely located individual may comply with section
179B.6 by using communication technology to appear before a
18notary public.
   193.  A notary public located in this state may perform a
20notarial act using communication technology for a remotely
21located individual if all of the following applies:
   22a.  The notary public has any of the following:
   23(1)  Personal knowledge under section 9B.7, subsection 1, of
24the identity of the individual.
   25(2)  Satisfactory evidence of the identity of the remotely
26located individual by oath or affirmation from a credible
27witness appearing before the notary public under section 9B.7,
28subsection 2, or this section.
   29(3)  Obtained satisfactory evidence of the identity of the
30remotely located individual by using at least two different
31types of identity proofing.
   32b.  The notary public is able reasonably to confirm that a
33record before the notary public is the same record in which the
34remotely located individual made a statement or on which the
35individual executed a signature.
-2-
   1c.  The notary public, or a person acting on behalf of
2the notary public, creates an audio-visual recording of the
3performance of the notarial act.
   4d.  For a remotely located individual located outside the
5United States, all of the following applies:
   6(1)  The record complies with any of the following:
   7(a)  Is to be filed with or relates to a matter before a
8public official or court, governmental entity, or other entity
9subject to the jurisdiction of the United States.
   10(b)  Involves property located in the territorial
11jurisdiction of the United States or involves a transaction
12substantially connected with the United States.
   13(2)  The act of making the statement or signing the record
14is not prohibited by the foreign state in which the remotely
15located individual is located.
   164.  If a notarial act is performed under this section, the
17certificate of notarial act required by section 9B.15 and the
18short-form certificate provided in section 9B.16 must indicate
19that the notarial act was performed using communication
20technology.
   215.  A short-form certificate provided in section 9B.16 for a
22notarial act subject to this section is sufficient if any of
23the following applies:
   24a.  It complies with rules adopted under subsection 8,
25paragraph “a”.
   26b.  It is in the form provided in section 9B.16 and contains
27a statement substantially as follows: “This notarial act
28involved the use of communication technology”.
   296.  A notary public, a guardian, conservator, or agent of
30a notary public, or a personal representative of a deceased
31notary public shall retain the audio-visual recording created
32under subsection 3, paragraph “c”, or cause the recording
33to be retained by a repository designated by or on behalf
34of the person required to retain the recording. Unless a
35different period is required by rule adopted under subsection
-3-18, paragraph “d”, the recording must be retained for a period of
2at least ten years after the recording is made.
   37.  Before a notary public performs the notary public’s
4initial notarial act under this section, the notary public
5must notify the secretary of state that the notary public will
6be performing notarial acts with respect to remotely located
7individuals and identify the technologies the notary public
8intends to use. If the secretary of state has established
9standards under subsection 8 and section 9B.27 for approval
10of communication technology or identity proofing, the
11communication technology and identity proofing must conform to
12the standards.
   138.  In addition to adopting rules under section 9B.27, the
14secretary of state may adopt rules under this section regarding
15performance of a notarial act. The rules may do all of the
16following:
   17a.  Prescribe the means and process, including training
18requirements, of performing a notarial act involving a remotely
19located individual using communication technology.
   20b.  Establish standards for communication technology and
21identity proofing.
   22c.  Establish requirements or procedures to approve providers
23of communication technology and the process of identity
24proofing.
   25d.  Establish standards for data security and a period
26for the retention of an audio-visual recording created under
27subsection 3, paragraph “c”.
   289.  Before adopting, amending, or repealing a rule governing
29performance of a notarial act with respect to a remotely
30located individual, the secretary of state must consider all
31of the following:
   32a.  The most recent standards regarding the performance of
33a notarial act with respect to a remotely located individual
34promulgated by national standard-setting organizations and the
35recommendations of the national association of secretaries of
-4-1state.
   2b.  Standards, practices, and customs of other jurisdictions
3that have laws substantially similar to this section.
   4c.  The views of governmental officials and entities and
5other interested persons.
   610.  By allowing its communication technology or identity
7proofing to facilitate a notarial act for a remotely located
8individual or by providing storage of the audio-visual
9recording created under subsection 3, paragraph “c”, the
10provider of the communication technology, identity proofing,
11or storage appoints the secretary of state as the provider’s
12agent for service of process in any civil action in this state
13related to the notarial act.
   1411.  The commission of a notary public performing a notarial
15act under this section is conditional upon the notary public
16complying with the requirements in section 9B.21.
   1712.  A document purporting to convey or encumber real
18property that has been recorded by the county recorder for the
19jurisdiction in which the real property is located, although
20the document may not have been certified according to this
21section, shall give the same notice to third persons and be
22effective from the time of recording as if the document had
23been certified according to this section.
   2413.  In any cause of action brought under this section, venue
25shall lie in the county where the notary public is performing
26the notarial act.
   2714.  In any cause of action brought under this section, Iowa
28law shall be the choice of law. Any condition, stipulation, or
29provision in a document requiring the application of the law of
30another state in lieu of this state is void.
31   Sec. 6.  NEW SECTION.  9B.14B  Use of information.
   321.  As used in this section, unless the context otherwise
33requires:
   34a.  (1)  “Personally identifiable information” means
35information about or pertaining to an individual in a record
-5-1which identifies the individual, and includes information that
2can be used to distinguish or trace an individual’s identity,
3either alone or when combined with other information.
   4(2)  “Personally identifiable information” includes but is
5not limited to a person’s photograph, social security number,
6driver’s license number, name, address, and telephone number.
   7b.  “Remote facilitator” means a person who participates in
8performing a notarial act under section 9B.14A, by doing any
9of the following:
   10(1)  Providing communication technology used by a public
11notary or remotely located individual.
   12(2)  Creating, transmitting, or retaining audio-visual
13recordings on behalf of a notary public.
   142.  A notary public or a remote facilitator shall not sell,
15offer for sale, use, or transfer to another person personally
16identifiable information collected in the course of performing
17a notarial act for any purpose other than as follows:
   18a.  As required to perform the notarial act.
   19b.  As necessary to effect, administer, enforce, service, or
20process the transaction for which the personally identifiable
21information was provided.
   223.  Subsection 2 does not apply to the transfer of personally
23identifiable information to another person in any of the
24following circumstances:
   25a.  Upon written consent of the person for the use or release
26of that person’s personally identifiable information.
   27b.  In response to a court order, subpoena, or other legal
28process compelling disclosure.
   29c.  As part of a change in the form of a business entity’s
30organization or a change in the control of a business
31entity, including as a result of an acquisition, merger, or
32consolidation. However, any reorganized or successor business
33entity shall comply with the same requirements as provided in
34subsection 2.
   354.  A person who violates this section is guilty of a simple
-6-1misdemeanor.
2   Sec. 7.  Section 9B.20, Code 2019, is amended by adding the
3following new subsection:
4   NEW SUBSECTION.  3.  A county recorder may accept for
5recording a tangible copy of an electronic record containing
6a notarial certificate as satisfying any requirement that a
7record accepted for recording be an original, if the notarial
8officer executing the notarial certificate certifies that the
9tangible copy is an accurate copy of the electronic record.
10   Sec. 8.  Section 9B.21, Code 2019, is amended by adding the
11following new subsection:
12   NEW SUBSECTION.  3A.  The commission of a notary public,
13who performs a notarial act using communication technology
14for a remotely located individual under section 9B.14A, is
15conditional upon the notary public executing an agreement with
16such individual that at least stipulates any claim or cause of
17action arising out of the notarial act must be brought by the
18individual in a district court in this state as provided in
19section 9B.14A rather than a state court in another state.
20   Sec. 9.  EFFECTIVE DATE.  This Act takes effect July 1, 2020.
21EXPLANATION
22The inclusion of this explanation does not constitute agreement with
23the explanation’s substance by the members of the general assembly.
   24GENERAL. This bill amends Code chapter 9B, the “Revised
25Uniform Law on Notarial Acts” (RULONA), enacted by the
26general assembly in 2012 (2012 Acts, chapter 1050), which is
27based on a uniform Act proposed by the national conference
28of commissioners on uniform state laws (commissioners) in
292010. The Code chapter governs a notary public (an individual
30commissioned to perform a notarial act by the secretary of
31state) or other notarial officer (a statutory authorized
32individual such as a judge) who performs a specific official
33act such as attesting to some fact which often involves an
34individual’s statement or signing of a record presented by an
35individual (Code section 9B.2). Such an individual must appear
-7-1personally before the notarial officer (Code section 9B.6).
2A notarial act must be evidence by some form of certificate
3executed contemporaneously with the performance of the notarial
4act (Code sections 9B.15 and 9B.16). The record may either be
5tangible or electronic. A notary public who elects to perform
6a notarial act involving an electronic record must notify the
7secretary of state regarding the tamper-proof technology that
8the notary public will use (Code section 9B.20).
   9UNIFORM PROVISIONS. The bill includes amendments proposed
10to the uniform Act by the commissioners in 2018 and referred
11to as “RULONA (2018)”, by allowing a notary public to perform
12a notarial act remotely by utilizing audio-visual technology.
13Under the bill, an individual may personally appear before
14a notary public by means of communication technology.
15Communication technology is a process that allows a notary
16public and a remotely located individual (individual) to
17communicate with each other simultaneously. The notary public
18must have some reliable evidence of the true identity of the
19individual and confirm that the record before the notary public
20is the same record of the individual’s statement or the same
21document that is being signed. The certificate must indicate
22that the remote notarial act is performed in accordance with
23the provisions of the new Code section. The bill also requires
24that an audio-visual recording of the performance be created
25and stored for at least 10 years. The secretary of state is
26authorized to adopt rules required to administer the new Code
27section. The bill amends Code section 9B.20, by providing that
28a county recorder may accept a tangible copy of an electronic
29record, if a notarial officer certifies that the copy is
30accurate.
   31NONUNIFORM PROVISIONS — NOTICE TO CREDITORS. The bill
32provides that a document purporting to convey or encumber
33real property that has been recorded provides notice to third
34persons regardless of whether it has been properly certified.
35The bill also provides that a county recorder may accept a
-8-1tangible copy of the electronic record, if a notarial officer
2certifies that the copy is accurate. In a cause of action
3brought under the new Code section, venue lies in the county
4where the notary public is performing the notarial act, and
5Iowa law is the choice of law.
   6NONUNIFORM PROVISIONS — RESTRICTION ON USE OF PERSONALLY
7IDENTIFIABLE INFORMATION. The bill creates nonuniform Code
8section 9B.14B that restricts a public notary or person
9involved in performing a notarial act electronically from
10using personally identifiable information that is contained
11in a created record, subject to specified exceptions (e.g.,
12consent of a party). A person who violates this provision of
13the bill commits a simple misdemeanor. A simple misdemeanor is
14punishable by confinement for no more than 30 days or a fine of
15at least $65 but not more than $625 or by both.
   16EFFECTIVE DATE.The bill takes effect July 1, 2020.
-9-
da/jh