Article 2 - Online Notarization

California Government Code — §§ 8231-8231.20

Sections (14)

Added by Stats. 2023, Ch. 291, Sec. 8. (SB 696) Effective January 1, 2024.

(a)This article shall be known, and may be cited, as the Online Notarization Act.
(b)An online notarization platform shall not be authorized for use by a notary public in California and a notary public shall not provide online notarization for any principal pursuant to this article prior to registration with the Secretary of State or prior to completion of the Secretary of State’s technology project necessary to implement statutes related to online notarization. The Secretary of State shall complete the technology project no later than January 1,

2030, unless the Secretary of State informs the Legislature and the Governor in writing on or before January 1, 2029, that the technology project necessary to implement statutes related to online notarization is incomplete.

Added by Stats. 2023, Ch. 291, Sec. 8. (SB 696) Effective January 1, 2024.

As used in this article, the following terms have the following meanings:

(a)“Audio-video communication” means being able to see, hear, and communicate with another individual in real time using electronic means in a manner that conforms to the requirements of this article and any rules or regulations adopted by the Secretary of State pursuant to this article.
(b)“Audio-video recording” means a recording of the audio-video communication of an online notarial act required by Section

8231.6.

(c)“Credential” means a government-issued record evidencing an individual’s identity that satisfies the requirements of paragraph (3) or (4) of subdivision (b) of Section 1185 of the Civil Code.
(d)“Credential analysis” means a process or service operating according to the requirements of this article and any rules or regulations adopted by the Secretary of State pursuant to this article, through which a third party affirms the validity of a credential through review of public and proprietary data sources.
(e)“Depository” means an individual or entity that has an active registration with the Secretary of State pursuant to Section

8231.14 and is capable of storing a journal entry or audio-video recording on behalf of a notary public.

(f)“Electronic” means relating to technology having electrical, digital, magnetic, wireless, optical, electromagnetic, or similar capabilities.
(g)“Electronic journal” means an active sequential record of official acts performed while using an online notarization system performed by a person acting as a notary public authorized to perform online notarization maintained in a secure electronic format according to the requirements of this article and any rules or regulations adopted by the Secretary of State pursuant to this article.
(h)“Electronic online notarial

certificate” means the part of, or attachment to, an electronic record that is completed by the notary public authorized to perform online notarization and contains both of the following:

(1)The notary public’s electronic signature and electronic seal or, where applicable, the notary public’s electronic signature that meets the requirements of subdivision (f) of Section 27391.
(2)The facts attested to by the notary public in the particular online notarization.
(i)“Electronic record” means a record created, generated, sent, communicated, received, or stored by electronic means.
(j)“Electronic seal” means information within a notarized electronic record

that corresponds to information in notary seals used on paper records and that, where applicable, conforms to the requirement of this article, including, but not limited to, subdivision (b) of Section 8231.7 and any rules or regulations adopted by the

Secretary of State pursuant to this article.

(k)“Electronic signature” means an electronic sound, symbol, or process attached to or logically associated with an electronic record and executed or adopted by a person with the intent to sign the electronic record.
(l)“Encrypt” or “encrypted” means rendered unusable, unreadable, or indecipherable to an unauthorized person through a security technology or methodology generally accepted in the field of information security.
(m)“Express written request” means a request made in writing and initiated by a principal to access, use, share, sell, disclose, produce, provide, release, transfer, disseminate, or otherwise communicate the specified

information for a specific purpose. The nature of the access, use, sharing, sale, disclosure, production, provision, release, transfer, dissemination, or other communication shall be conveyed to the principal in clear and prominent terms in such a manner that an ordinary principal would notice and understand it. Express consent cannot be inferred.

(n)“Identity proofing” means a process or service operating according to the requirements of this article and any rules or regulations adopted by the Secretary of State pursuant to this article through which a third party affirms the

identity of an individual through review of personal information from public or proprietary data sources.

(o)“Notarial act” means the performance of an act by an individual that is authorized under the laws of this state, including acts described in Sections 8202, 8205, this article, and Sections 1185 and 1195 of the Civil Code.
(p)“Notary public’s electronic signature” means an electronic signature that does both of the following:
(1)Meets the requirements of this article and any rules or regulations adopted by the Secretary of State pursuant to this article.
(2)Includes an image of the notary public’s handwritten

signature, as required to be provided to the Secretary of State under subdivision (d) of Section 8231.7.

(q)“Open format” means information that is formatted in a manner that is platform independent, machine readable, and made available to the public without restrictions that would impede the reuse of that information.
(r)“Online notarization” and “online notarial act” mean a notarial act performed by a notary public authorized to perform online notarization by means of an online notarization system that meets the requirements of this article and

any rules or regulations adopted by the Secretary of State pursuant to this article, if the record that is the subject of the notarial act is an electronic record.

(s)“Online notarization platform” means an individual or entity that has an active registration with the Secretary of State pursuant to Section 8231.14 and provides an online notarization system to a notary public authorized to perform

online notarization.

(t)“Online notarization system” means the computer hardware and software that enable a notary public to do both of the following:
(1)Perform an online notarial act by means of audio-video communication.
(2)Create an audio-video recording and a corresponding entry for the appropriate electronic journal for each online notarial act

performed as described in paragraph (1).

(u)“Principal” means an individual, other than a credible witness pursuant to Section 1185 of the Civil Code, whose electronic signature is notarized, or whose oath or affirmation is taken by a notary public, during an online notarization.
(v)“Record” means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in both physical and electronic form.
(w)“Records of online notarial acts” means, collectively, the electronic journal entries required by Section 8231.5 and the audio-video recordings required by Section

8231.6.

(x)“Remote presentation” means transmission to the notary public through audio-video communication of an image of a government-issued identification that complies with paragraph (3) or (4) of subdivision (b) of Section 1185 of the Civil Code that is of sufficient quality to enable the notary public to identify the individual seeking the notary public’s services. Remote presentation shall conform to the standards of this article and any rules or regulations adopted by the Secretary of State pursuant to this article.
(y)“United States” means a state of the United States, the District of Columbia, Puerto Rico, the United States Virgin Islands, or any territory or insular possession subject to the jurisdiction of the United States.

Added by Stats. 2023, Ch. 291, Sec. 8. (SB 696) Effective January 1, 2024.

(a)The Secretary of State shall adopt rules and regulations necessary to implement this article. The rules and regulations shall set and maintain standards for online notarizations and notaries public authorized to perform online notarization, including, but not limited to, all of the following:
(1)Audio-video

communication, including ensuring that principals with disabilities are accommodated by online notarization systems of online notarization platforms and notaries public in a manner consistent with applicable laws.

(2)Credential analysis.
(3)Electronic and tangible journals, including their form and content.
(4)Electronic seals.
(5)Identity proofing, which shall be performed at least at Identity Assurance Level 2, as established in NIST Special Publication 800-63A, dated June 2017, promulgated by the National Institutes of Standards and Technology, or any successor

publication. If this standard cannot be met due to applicable state or federal laws, such as California law governing the disclosure of information regarding driver’s licenses or other identification cards, then the Secretary of State shall adopt the most rigorous standard for identity proofing that also conforms to those laws.

(6)Online notarization systems.
(7)Depositories, including standards for security measures and storage capacity.
(8)Registration with the Secretary of State as a notary public authorized to perform online notarizations, or registration as a

depository or an online notarization platform.

(9)Remote presentation.
(10)Retention and storage of records of online notarial acts.
(11)Security and encryption.
(b)The Secretary of State

may confer with other state entities, departments, or agencies on matters relating to equipment, security, and technological aspects of online notarization standards.

(c)The Secretary of State, in developing the rules and regulations required by this section, may consider the views of other state entities, departments, or agencies, and members of the public.
(d)A commissioned notary public shall not provide online notarization for any principal before the adoption of rules by the Secretary of State pursuant to this section.

Added by Stats. 2023, Ch. 291, Sec. 8. (SB 696) Effective January 1, 2024.

Every person appointed as a notary public authorized to perform online notarizations shall execute an official bond in the sum of twenty-five thousand dollars ($25,000) in lieu of the bond required by Section 8212. The bond shall be in the form of a bond executed by an admitted surety insurer and not a deposit in lieu of bond. For the official misconduct or neglect of a notary public related to this article, the notary public and the sureties on the notary public’s official bond required by

this section are liable in a civil action to a person injured thereby provided, however, that the amount of the surety’s liability shall be limited to fifteen thousand dollars ($15,000) for notarial acts arising under Article 1 (commencing with Section 8200), and twenty-five thousand dollars ($25,000) for online notarial acts arising under this article. Under no circumstances shall the surety’s liability exceed the aggregate amount of twenty-five thousand dollars ($25,000). The bond shall be filed with the county clerk within which the notary public maintains a principal place of business pursuant to Section 8213.

Added by Stats. 2023, Ch. 291, Sec. 8. (SB 696) Effective January 1, 2024.

(a)A notary public authorized to perform online notarization who resigns, is disqualified or removed from office, or allows the notary public’s registration to perform online notarization to expire without obtaining a reappointment, within 30 days, pursuant to Section 8209, shall

take all necessary measures to disable the electronic affixation of the notary public’s electronic signature or seal by the notary public or another person including, but not limited to, notifying the online notarization platform providing the online notarization system utilized by the notary public that their electronic signature and seal should be disabled, as well as adhering to any other requirements set forth in regulations adopted by the Secretary of State.

(b)An online notarization platform notified by a notary public pursuant to subdivision (a) shall disable, destroy, or otherwise prevent the use of the notary public’s electronic signature and electronic seal.

Added by Stats. 2023, Ch. 291, Sec. 8. (SB 696) Effective January 1, 2024.

(a)The Secretary of State may approve registrations of notaries public authorized to perform online notarizations for the military and naval reservations of the Army, Navy, Coast Guard, Air Force, and Marine Corps of the United States that are located in the State of California. Such registrants shall meet the requirements of Article 1 (commencing with Section 8200) in addition to the requirements of this article.
(b)Notwithstanding Section 8203.2, a notary public authorized to

perform online notarizations approved for registration under subdivision (a) may perform notarial acts for principals who are stationed at the reservation for which that notary public was approved, regardless of whether the principal was physically located on the reservation at the time of the notarial act.

(c)Notwithstanding Section 8203.5, the electronic online notarial certificate by a notary public authorized to perform online notarizations shall contain the name of the reservation for which the notary public was approved and where the principal for which the online notarization was performed was stationed at the time of the online notarial act. A notation in the following form shall be sufficient for purposes of this subdivision:

State of California Online Notarial

Act

Military Reservation of ________

Added by Stats. 2023, Ch. 291, Sec. 8. (SB 696) Effective January 1, 2024.

A person who, without authorization, knowingly obtains, conceals, damages, or destroys the certificate, disk, coding, card, program, software, or hardware enabling a notary public to affix the notary public’s electronic signature or electronic seal is guilty of a misdemeanor.

Added by Stats. 2023, Ch. 291, Sec. 8. (SB 696) Effective January 1, 2024.

(a)A person or entity shall apply for registration with the Secretary of State to be an online notarization platform or depository as prescribed by the Secretary of State.
(b)An entity required to obtain a certificate of qualification from the Secretary of State in order to transact business in California shall do so before applying for registration with the Secretary of State to be an online notarization platform or depository.
(c)An

online notarization platform or depository shall provide security for claims against the online notarization platform or depository or the online notarization platform’s or depository’s representatives, or employees based upon acts, errors, or omissions arising out of the business of the online notarization platform or depository through either one or an aggregate of both of the following:

(1)A policy or policies of insurance against liability imposed on or against the online notarization platform or depository by law for damages arising out of claims in an amount for each claim of at least two hundred fifty thousand dollars ($250,000).
(2)In trust or bank escrow, cash, bank certificates of deposit, United States Treasury obligations, bank letters of credit, or bonds of

insurance companies as security for payment of liabilities imposed by law for damages arising out of all claims in an amount of at least two hundred fifty thousand dollars ($250,000).

(d)The Secretary of State shall develop an application for registration to be submitted by an applicant. The Secretary of State may refuse registration of an online notarization platform or depository for failure to conform with the application requirements. The application shall include, but not be limited to, all of the following:
(1)The name and complete business or residence street address of an agent upon whom process may be

served within this state if this information is not already on file with the Secretary of State.

(2)A statement signed under penalty of perjury by an officer of the applicant authorized to enter into binding agreements on behalf of the applicant that the applicant shall comply with both of the following:
(A)This article and any rules or regulations adopted by the Secretary of State pursuant to this article that apply to online notarization platforms or depositories.
(B)The lawful properly-served process.
(3)For applications to be an online notarization platform, whether the online notarization platform provides custodial services for the notary

public.

(4)A statement indicating that the applicant has no order, judgment, or decree entered against them in any civil or criminal action involving any of the following:
(A)Fraud.
(B)Material misrepresentation.
(C)Any willful acts or gross negligence related to breaches of secure information required to be stored under this act.
(e)Registration may be refused or canceled if the application is found to include a material misrepresentation or if the registrant subsequently has an order, judgment, or decree entered against them in any civil or criminal action as defined in paragraph (4) of subdivision

(d).

(f)The Secretary of State may charge a fee for an application for registration submitted pursuant to this section in an amount necessary to administer this article.
(g)Only an online notarization platform that has obtained registration from the Secretary of State may provide an online notarization system for a notary public authorized to perform online notarizations while commissioned in California.
(h)An online notarization platform shall take all reasonable steps to ensure that a notary public for whom it provides an online notarization system has the knowledge to use the system

to perform online notarial acts in compliance with this article and any rules or regulations adopted by the Secretary of State pursuant to this article.

(i)(1) An online notarization platform or depository that provides custodial services for a notary public shall not delete an online journal entry or the audio-video recording of an online notarization until (A) the contract for custodial services is terminated or the notary public resigns, is disqualified, is removed from office, or allows their registration as a notary public authorized to perform online notarizations to expire without obtaining reappointment, and (B) the notary public has downloaded the journal entry or audio-video recording. The online notarization platform or depository shall provide a reasonable opportunity for download upon termination of the contract for custodial services. The Secretary of State shall establish by rule or regulation the time period that constitutes a “reasonable opportunity” for download following termination of a contract for custodial services.
(2)An online notarization platform that does not provide custodial services for a notary public shall not delete an online journal entry or audio-video recording of an online notarial act until the notary public has been provided a reasonable opportunity to download the entry or record. The Secretary of

State shall establish by rule or regulation the time period that constitutes a “reasonable opportunity” for downloading the audio-video

recording.

(j)(1) An online notarization platform or depository that ceases to provide an online notarization system or depository for use within California, goes out of business, ceases operations, or is acquired by or merges with another entity that is not registered with the Secretary of State as an online notarization platform or depository, and an online notarization platform that ceases to provide custodial services, shall do both of the following:

(A) At least 30 calendar days before this event, notify each notary public that has utilized the online notarization platform or depository of the event

and enable the notary public to transfer all records of online notarial acts performed by the notary public, or all records stored by the depository, including, but not limited to, any electronic journals or audio-video recordings, to another online notarization platform, to the notary public, to a certified depository, at no cost to the notary public. The online notarization platform or depository shall not delete any records of online notarial acts performed by the notary public until the notary public has been provided a reasonable opportunity to download the entry or record. The Secretary of State shall establish by rule or regulation the time period that constitutes a “reasonable opportunity” for downloading records of online notarial acts.

(B) Upon full compliance with subparagraph (A), thereafter promptly delete all audio-video recordings of online notarizations and electronic journals.

(2)An online notarization platform or depository that is acquired by or merges with another entity that is not registered with the Secretary of State as an online notarization platform or depository may continue operating as an online notarization platform or as a depository if all of the following are met:
(A)The online notarization platform or depository submits an updated application for registration as required by subdivision (d) based on the new circumstances after acquisition or merger.
(B)The updated

application for registration is submitted to the Secretary of State at least 90 days prior to the acquisition or merger being completed, or as soon as permitted by applicable law, and the Secretary of State approves the updated application.

(C)The online notarization platform or depository notifies all notaries using the online notarization platform or depository at least 30 days before the completion of the acquisition or merger, or as soon as permitted by applicable law.
(k)A notary public authorized to perform online notarization

using an online notarization platform or depository shall not be vicariously liable for any damages resulting from the online notarization platform’s or depository’s failure to comply with the requirements of this article or any rules or regulations adopted by the Secretary of State pursuant to this article. Any provision in a contract or agreement between a notary public and an online notarization platform or depository that attempts to waive this immunity shall be null and void.

Added by Stats. 2023, Ch. 291, Sec. 8. (SB 696) Effective January 1, 2024.

(a)An online notarization platform or depository shall not have access to a notary public’s electronic signature or electronic seal.
(b)An online notarization platform or depository shall not access, use, share, sell, disclose, produce, provide, release, transfer, disseminate, or otherwise communicate the contents of the notary public’s electronic

journal, except to comply with any other applicable federal, state, or local law, a lawful subpoena or court order, or a lawful request from a law enforcement or regulatory agency.

(c)An online notarization platform or depository shall not access, use, share, sell, disclose, produce, provide, release, transfer, disseminate, or otherwise communicate the contents of a document notarized by a notary public absent express written request from the principal or to comply with any other applicable federal, state, or local law, a lawful subpoena or court order, or a lawful request from a law enforcement or regulatory agency.
(d)An online notarization platform or depository shall not access, use, share, sell, disclose, produce, provide, release, transfer, disseminate, or otherwise communicate the contents of an audio-video recording of an online notarial act absent express written request from the principal or to comply with any other applicable federal, state, or local law, a lawful subpoena or court order, or a lawful request from a law enforcement or regulatory agency.
(e)An online notarization platform or depository shall not access,

use, share, sell, disclose, produce, provide, release, transfer, disseminate, or otherwise communicate the personal information of a principal absent express written request from the principal or to comply with any other applicable federal, state, or local law, a lawful subpoena or court order, or a lawful request from a law enforcement or regulatory agency.

(f)Notwithstanding subdivisions (a), (b), (c), (d), and (e), an online notarization platform or depository may access, use, share, disclose, produce, provide, release, transfer, disseminate, or otherwise communicate the notary public’s electronic signature or electronic seal, the contents of the notary public’s

electronic journal, the contents of a notarized document or audio-video recording, or the personal information of a principal, to the extent necessary to do any of the following:

(1)Facilitate the performance of an online notarial act.
(2)Comply with the requirements of Article 1 (commencing with Section 8200), this article, rules and regulations adopted by the Secretary of State pursuant to this article, or any other applicable federal, state, or local law, or a lawful subpoena or court order, or a lawful request from a law enforcement or regulatory agency.
(3)Administer, affect, enforce, or process a record provided by or on behalf of a principal or the transaction of which the record is a part.
(4)As necessary to implement the requirements of this article and any rules or regulations adopted by the Secretary of State and to implement the fraud mitigation measures as outlined in NIST Special Publication 800-63A, dated June 2017, promulgated by the

National Institutes of Standards and Technology, or any successor publication.

(g)An online notarization platform or depository shall, in the most expedient time possible and without unreasonable delay, notify the Secretary of State, using a notification process designated by the Secretary of State, all appropriate law enforcement agencies, any affected online notaries public, and any affected principals, of the unauthorized access or use by

or disclosure to

another person, loss, compromise, theft, vandalism, corruption, or breach of any of the following:

(1)A notary public’s electronic signature or electronic seal.
(2)A notary public’s electronic journal.
(3)Any records of online notarial acts.

Added by Stats. 2023, Ch. 291, Sec. 8. (SB 696) Effective January 1, 2024.

(a)The Secretary of State may refuse to appoint any person as a notary public or may revoke or suspend the commission of any notary public for a violation of this article.
(b)The Secretary of State may refuse to register any online notarization platform or depository or may revoke or suspend the registration of any

online notarization platform or depository for a violation of this article.

Added by Stats. 2023, Ch. 291, Sec. 8. (SB 696) Effective January 1, 2024.

(a)For a violation of any provision of this article, an online notarization platform or depository is liable in civil action to the persons injured thereby for any of the following:
(1)The greater of the following:
(A)Any actual damages sustained by that person as a result of the violation.
(B)Statutory damages of two hundred fifty dollars ($250) per violation.
(2)Injunctive or declaratory relief. Such relief is presumed to accrue to the benefit of the public.
(3)Any other relief that the court deems proper.
(b)In any successful cause of action under this section, the court shall award costs of the action, together with reasonable attorney’s fees, as determined by the court.
(c)An action under subdivision (a) shall be brought no later than four years from

the date the plaintiff had actual knowledge of the violation.

(d)(1) The Attorney General, a city attorney, including the city attorney of a city and county, a county counsel, or a district attorney may bring a civil action in the name of the people of the State of California against an online notarization platform or depository for any violation of this article and recover or obtain any of the remedies available under subdivision (a).
(2)An action shall be brought under this subdivision no later than four years from the date

the online notarization platform or depository notifies the Secretary of State and the Attorney General of the violation that is the basis of the action.

(e)An online notarization platform shall not be vicariously liable for any of the following and shall not be vicariously liable in any civil action brought under this article for any damages proximately resulting from any of the following:
(1)The negligence, fraud, or willful misconduct of the notary public, principal, or the person that requested notarization of the record, or the notary public’s failure to comply with the requirements of this article, any rules or regulations adopted by the Secretary

of State pursuant to this article, or any applicable law, unless the notary public is an employee or agent of the online notarization platform, in which case the online notarization platform is responsible for the conduct of the notary public to the extent provided under other applicable law.

(2)A notary public’s failure to timely download an electronic journal or audio-video recording or failure to timely transfer those records to the Secretary of State, or the notary public’s deletion of one or more audio-video recording or entries in the notary public’s electronic journal.
(3)The contents of records uploaded to the online notarization platform for notarization.

Amended by Stats. 2024, Ch. 80, Sec. 57. (SB 1525) Effective January 1, 2025.

(a)As used in this section, the following terms have the following meanings:
(1)“Audio-video communication” means being able to see, hear, and communicate with another individual in real time using electronic means.
(2)“Audio-video recording” means a recording of the audio-video communication of a remote online notarial act.
(3)“Business” means an individual, proprietorship, firm, partnership, joint venture, syndicate, business trust, company, corporation, limited liability company, association, committee, and any other organization or group of individuals

acting in concert that provides a software platform for use by a notarial officer not in the physical presence of the principal to communicate with the principal, enable the performance of a remote online notarial act, and record the performance of the remote online notarial act.

(4)“Electronic journal” means a sequential record of remote online notarial acts performed by a notarial officer facilitated by a business.
(5)“Encrypt” or “encrypted” means rendered unusable, unreadable, or indecipherable to an unauthorized person through a security technology or methodology generally accepted in the field of information security.
(6)“Notarial act” means an act, whether performed with respect to a tangible or

electronic record, that a notarial officer may perform under the laws of a state other than California, a foreign state, or under federal law.

(7)“Notarial officer” means a notary public or other individual authorized to perform a notarial act.
(8)“Notary public” means an individual commissioned to perform a notarial act.
(9)“Open format” means information that is formatted in a manner that is platform independent, machine readable, and made available to the public without restrictions that would impede the reuse of that information.
(10)“Principal” means an individual for whom a remote online notarial act is performed who has represented to the business

that they are located in California.

(11)“Record” means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in both physical and electronic form.
(12)“Remote online notarial act“ or “remote online notarization” means a notarial act performed for a principal by a notarial officer using audio-video communication through a business when the notarial officer is located in a state other than California.
(13)“State” means a state of the United States, the District of Columbia, Puerto Rico, the United States Virgin Islands, or any territory or insular possession subject to the jurisdiction of the United States.
(b)A business consents to the jurisdiction of the courts of this state for transactions related to a principal.
(c)For transactions related to a principal, a business shall comply with all of the following:
(1)(A) A business shall create an encrypted electronic journal entry for each remote online notarial act. The business shall enable access to the electronic journal by the notarial officer through secure multifactor means of authentication. The electronic journal shall be capable of providing both physical and electronic copies of any entry made therein. Each electronic journal entry shall contain, at a minimum, the following information:
(i)The date, time, and type of each remote online

notarial act. The time entered shall be in Coordinated Universal Time.

(ii) The physical location of the principal as represented to the business by the principal, and the physical location of the notarial officer at the time of the remote online notarial act.

(iii) The title, or a short description if no title exists, of each record that was the subject of the remote online notarial act.

(iv) The electronic signature of each principal.

(v)A statement as to the basis of the notarial officer’s method of identification of the principal.

(vi) A statement that an audio-video recording of the remote online

notarial act was made pursuant to subparagraph (B).

(vii) The fee, if any, charged for the remote online notarial act.

(viii) The name of the business that provided the software platform for the performance of the remote online notarial act.

(B) A business shall create an audio-video recording of the audio-video communication of each remote online notarial act facilitated by the business. The business shall enable access to the audio-video recording by the notarial officer through a secure multifactor means of authentication. The audio-video recording shall be created in an open format and shall not include images of any record that was the subject of the remote online notarization.

(C) Each electronic journal entry and audio-video recording shall be retained, in accordance with federal, state, or local law, as applicable.

(D) A business shall provide the principal with a copy of each relevant electronic journal entry and audio-video recording following the completion of a transaction in the most expedient time possible.

(2)(A) A business shall provide each individual for whom a remote online notarial act is to be performed with a prompt asking if the individual is located in California before the performance of a remote online notarial act.
(B)If the individual represents to the business that the individual is located in California in response to the prompt under subparagraph

(A), the business shall append a document to the record that is subject to the remote online notarial act. The appended document shall indicate the principal’s response to the prompt, as well as the notarial officer’s location at the time of the remote online notarial act. The failure to obtain or append the document indicating the principal’s location does not affect the validity of the record or the remote online notarial act, and nothing in this section shall be construed to require submission of the appended document referenced in this subparagraph as a condition of recording or acceptance under California law.

(3)(A) A business shall produce an audit trail detailing the following information completed as a part of each transaction involving a remote online notarial act:
(i)The action performed.

(ii) The date and time of the action’s performance in Coordinated Universal Time.

(iii) The name of the party performing the action.

(iv) The Internet Protocol address of the party performing the action.

(B) A business shall encrypt all audio-video communication and all records related to a remote online notarization and shall take reasonable steps to ensure that the audio-video communication used in a remote online notarization is secure from unauthorized interception.

(4)A business shall, in the most expedient time possible and without unreasonable delay,

notify all appropriate law enforcement agencies and any affected principals of the unauthorized access or use by or disclosure to another person, loss, compromise, theft, vandalism, corruption, or breach of a principal’s personal information or an electronic journal or audio-video recording.

(5)(A) A business shall not access, use, share, sell, disclose, produce, provide, release, transfer, disseminate, or otherwise communicate the contents of any of the following related to a principal:
(i)An electronic journal entry.

(ii) The contents of a record that is the subject of a remote online notarial act.

(iii) The audio-video recording of

a remote online notarial act.

(iv) Personal information.

(B) Notwithstanding subparagraph (A), a business may access, use, share, disclose, produce, provide, release, transfer, disseminate, or otherwise communicate the contents of clauses (i), (ii), (iii), and (iv) of subparagraph (A) to the extent necessary to do any of the following:

(i)Facilitate the performance of an online notarial act.

(ii) To comply with any other applicable federal, state, or local law, a lawful subpoena or court order, or a lawful request from a law enforcement or regulatory agency.

(iii) Administer, affect, enforce,

or process a record provided by or on behalf of a principal or the transaction of which the record is a part.

(iv) As necessary to implement the requirements of this section and to implement the fraud mitigation measures as outlined in NIST Special Publication 800-63A, dated June 2017, promulgated by the National Institute of Standards and Technology, or any successor publication.

(d)(1) For a violation of any provision of this section, a business is liable in civil action to the persons injured thereby for any of the following:

(A) The greater of the following:

(i)Any actual damages sustained by that person as a result of the

violation.

(ii) Statutory damages of two hundred fifty dollars ($250) per violation.

(B) Injunctive or declaratory relief. Such relief is presumed to accrue to the benefit of the public.

(C) Any other relief that the court deems proper.

(2)In any successful cause of action under this section, the court shall award costs of the action, together with reasonable attorney’s fees, as determined by the court.
(3)An action under paragraph (1) shall be brought no later than four years from the date the plaintiff had actual knowledge of the violation.
(4)(A) The Attorney General, a city attorney, including the city attorney of a city and county, a county counsel, or a district attorney may bring a civil action in the name of the people of the State of California against a business for any violation of this article and recover or obtain any of the remedies available under paragraph (1).
(B)An action shall be brought under this paragraph no later than four years from the date the business notifies the Attorney General of the violation that is the basis of the action.
(5)A business shall not be vicariously liable for any of the following and shall not be vicariously liable in any civil action brought under this article for any damages proximately resulting from any of the following:
(A)The negligence, fraud, or willful misconduct of the notarial officer, principal, or the person that requested notarization of the record, unless the notarial officer is an employee or agent of the business, in which case the business is responsible for the conduct of the notarial officer to the extent provided under other applicable law.
(B)The contents of records uploaded to the business for remote online notarization.
(e)This section shall become operative on January 1, 2025.

Added by Stats. 2023, Ch. 291, Sec. 8. (SB 696) Effective January 1, 2024.

Any waiver of the provisions of this article is contrary to public policy and is void and unenforceable.

Added by Stats. 2023, Ch. 291, Sec. 8. (SB 696) Effective January 1, 2024.

The provisions of this article are severable. If any provision of this article or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.