H.B. No. 1217
 
 
 
 
AN ACT
  relating to appointment of and performance of notarial acts by an
  online notary public and online acknowledgment and proof of written
  instruments; authorizing a fee and creating a criminal offense.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 121.006, Civil Practice and Remedies
  Code, is amended by adding Subsections (c) and (d) to read as
  follows:
         (c)  For purposes of Subsection (b), a person may personally
  appear before the officer taking the acknowledgment by:
               (1)  physically appearing before the officer; or
               (2)  appearing by an interactive two-way audio and
  video communication that meets the online notarization
  requirements under Subchapter C, Chapter 406, Government Code, and
  rules adopted under that subchapter.
         (d)  The acknowledgment form provided by this chapter must
  include a space for an online notarization as defined by Section
  406.101, Government Code, to indicate by which method described by
  Subsection (c) the acknowledging person appeared before the
  officer.
         SECTION 2.  Chapter 121, Civil Practice and Remedies Code,
  is amended by adding Section 121.016 to read as follows:
         Sec. 121.016.  EFFECT OF OTHER LAW. To the extent that a
  provision of this chapter conflicts with Subchapter C, Chapter 406,
  Government Code, that subchapter controls with respect to an online
  notarization as defined by Section 406.101, Government Code.
         SECTION 3.  Chapter 406, Government Code, is amended by
  adding Subchapter C to read as follows:
  SUBCHAPTER C. ONLINE NOTARY PUBLIC
         Sec. 406.101.  DEFINITIONS. In this subchapter:
               (1)  "Credential analysis" means a process or service
  operating according to criteria approved by the secretary of state
  through which a third person affirms the validity of a
  government-issued identification credential through review of
  public and proprietary data sources.
               (2)  "Electronic" means relating to technology having
  electrical, digital, magnetic, wireless, optical, electromagnetic,
  or similar capabilities.
               (3)  "Electronic document" means information that is
  created, generated, sent, communicated, received, or stored by
  electronic means.
               (4)  "Electronic notarial certificate" means the
  portion of a notarized electronic document that is completed by an
  online notary public and contains the following:
                     (A)  the online notary public's electronic
  signature, electronic seal, title, and commission expiration date;
                     (B)  other required information concerning the
  date and place of the online notarization; and
                     (C)  the facts attested to or certified by the
  online notary public in the particular notarization.
               (5)  "Electronic seal" means information within a
  notarized electronic document that confirms the online notary
  public's name, jurisdiction, identifying number, and commission
  expiration date and generally corresponds to information in notary
  seals used on paper documents.
               (6)  "Electronic signature" means an electronic sound,
  symbol, or process attached to or logically associated with an
  electronic document and executed or adopted by a person with the
  intent to sign the electronic document.
               (7)  "Identity proofing" means a process or service
  operating according to criteria approved by the secretary of state
  through which a third person affirms the identity of an individual
  through review of personal information from public and proprietary
  data sources.
               (8)  "Notarial act" means the performance by an online
  notary public of a function authorized under Section 406.016.
               (9)  "Online notarization" means a notarial act
  performed by means of two-way video and audio conference technology
  that meets the standards adopted under Section 406.104.
               (10)  "Online notary public" means a notary public who
  has been authorized by the secretary of state to perform online
  notarizations under this subchapter.
               (11)  "Principal" means an individual:
                     (A)  whose electronic signature is notarized in an
  online notarization; or
                     (B)  taking an oath or affirmation from the online
  notary public but not in the capacity of a witness for the online
  notarization.
               (12)  "Remote presentation" means transmission to the
  online notary public through communication technology of an image
  of a government-issued identification credential that is of
  sufficient quality to enable the online notary public to:
                     (A)  identify the individual seeking the online
  notary public's services; and
                     (B)  perform credential analysis.
         Sec. 406.102.  APPLICABILITY OF SUBCHAPTER. This subchapter
  applies only to an online notarization.
         Sec. 406.103.  RULEMAKING. The secretary of state may adopt
  rules necessary to implement this subchapter, including rules to
  facilitate online notarizations.
         Sec. 406.104.  STANDARDS FOR ONLINE NOTARIZATION. (a) The
  secretary of state by rule shall develop and maintain standards for
  online notarization in accordance with this subchapter, including
  standards for credential analysis and identity proofing.
         (b)  The secretary of state may confer with the Department of
  Information Resources or other appropriate state agency on matters
  relating to equipment, security, and technological aspects of the
  online notarization standards.
         Sec. 406.105.  APPLICATION; QUALIFICATIONS. (a) A notary
  public or an applicant for appointment as a notary public under
  Subchapter A may apply to the secretary of state to be appointed and
  commissioned as an online notary public in the manner provided by
  this section.
         (b)  A person qualifies to be appointed as an online notary
  public by:
               (1)  satisfying the qualification requirements for
  appointment as a notary public under Subchapter A;
               (2)  paying the application fee described by Subsection
  (d); and
               (3)  electronically submitting to the secretary of
  state an application in the form prescribed by the secretary of
  state that satisfies the secretary of state that the applicant is
  qualified.
         (c)  The application required by Subsection (b) must
  include:
               (1)  the applicant's name to be used in acting as a
  notary public;
               (2)  a certification that the applicant will comply
  with the secretary of state's standards developed under Section
  406.104; and
               (3)  an e-mail address of the applicant.
         (d)  The secretary of state may charge a fee for an
  application submitted under this section in an amount necessary to
  administer this subchapter.
         Sec. 406.106.  PERFORMANCE OF NOTARIAL ACTS. An online
  notary public:
               (1)  is a notary public for purposes of Subchapter A and
  is subject to that subchapter to the same extent as a notary public
  appointed and commissioned under that subchapter;
               (2)  may perform notarial acts as provided by
  Subchapter A in addition to performing online notarizations; and
               (3)  may perform an online notarization authorized
  under this subchapter.
         Sec. 406.107.  AUTHORITY TO PERFORM ONLINE NOTARIZATIONS.
  An online notary public has the authority to perform any of the
  functions authorized under Section 406.016 as an online
  notarization.
         Sec. 406.108.  ELECTRONIC RECORD OF ONLINE NOTARIZATIONS.
  (a) An online notary public shall keep a secure electronic record
  of electronic documents notarized by the online notary public. The
  electronic record must contain for each online notarization:
               (1)  the date and time of the notarization;
               (2)  the type of notarial act;
               (3)  the type, the title, or a description of the
  electronic document or proceeding;
               (4)  the printed name and address of each principal
  involved in the transaction or proceeding;
               (5)  evidence of identity of each principal involved in
  the transaction or proceeding in the form of:
                     (A)  a statement that the person is personally
  known to the online notary public;
                     (B)  a notation of the type of identification
  document provided to the online notary public;
                     (C)  a record of the identity verification made
  under Section 406.110, if applicable; or
                     (D)  the following:
                           (i)  the printed name and address of each
  credible witness swearing to or affirming the person's identity;
  and
                           (ii)  for each credible witness not
  personally known to the online notary public, a description of the
  type of identification documents provided to the online notary
  public;
               (6)  a recording of any video and audio conference that
  is the basis for satisfactory evidence of identity and a notation of
  the type of identification presented as evidence; and
               (7)  the fee, if any, charged for the notarization.
         (b)  The online notary public shall take reasonable steps to:
               (1)  ensure the integrity, security, and authenticity
  of online notarizations;
               (2)  maintain a backup for the electronic record
  required by Subsection (a); and
               (3)  protect the backup record from unauthorized use.
         (c)  The electronic record required by Subsection (a) shall
  be maintained for at least five years after the date of the
  transaction or proceeding.
         Sec. 406.109.  USE OF ELECTRONIC RECORD, SIGNATURE, AND
  SEAL. (a) An online notary public shall take reasonable steps to
  ensure that any registered device used to create an electronic
  signature is current and has not been revoked or terminated by the
  device's issuing or registering authority.
         (b)  An online notary public shall keep the online notary
  public's electronic record, electronic signature, and electronic
  seal secure and under the online notary public's exclusive control.
  The online notary public may not allow another person to use the
  online notary public's electronic record, electronic signature, or
  electronic seal.
         (c)  An online notary public may use the online notary
  public's electronic signature only for performing online
  notarization.
         (d)  An online notary public shall attach the online notary
  public's electronic signature and seal to the electronic notarial
  certificate of an electronic document in a manner that is capable of
  independent verification and renders any subsequent change or
  modification to the electronic document evident.
         (e)  An online notary public shall immediately notify an
  appropriate law enforcement agency and the secretary of state of
  the theft or vandalism of the online notary public's electronic
  record, electronic signature, or electronic seal. An online notary
  public shall immediately notify the secretary of state of the loss
  or use by another person of the online notary public's electronic
  record, electronic signature, or electronic seal.
         Sec. 406.110.  ONLINE NOTARIZATION PROCEDURES. (a) An
  online notary public may perform an online notarization authorized
  under Section 406.107 that meets the requirements of this
  subchapter and rules adopted under this subchapter regardless of
  whether the principal is physically located in this state at the
  time of the online notarization.
         (b)  In performing an online notarization, an online notary
  public shall verify the identity of a person creating an electronic
  signature at the time that the signature is taken by using two-way
  video and audio conference technology that meets the requirements
  of this subchapter and rules adopted under this subchapter.
  Identity may be verified by:
               (1)  the online notary public's personal knowledge of
  the person creating the electronic signature; or
               (2)  each of the following:
                     (A)  remote presentation by the person creating
  the electronic signature of a government-issued identification
  credential, including a passport or driver's license, that contains
  the signature and a photograph of the person;
                     (B)  credential analysis of the credential
  described by Paragraph (A); and
                     (C)  identity proofing of the person described by
  Paragraph (A).
         (c)  The online notary public shall take reasonable steps to
  ensure that the two-way video and audio communication used in an
  online notarization is secure from unauthorized interception.
         (d)  The electronic notarial certificate for an online
  notarization must include a notation that the notarization is an
  online notarization.
         Sec. 406.111.  FEES FOR ONLINE NOTARIZATION. An online
  notary public or the online notary public's employer may charge a
  fee in an amount not to exceed $25 for performing an online
  notarization in addition to any other fees authorized under Section
  406.024.
         Sec. 406.112.  TERMINATION OF ONLINE NOTARY PUBLIC'S
  COMMISSION. (a) Except as provided by Subsection (b), an online
  notary public whose commission terminates shall destroy the coding,
  disk, certificate, card, software, or password that enables
  electronic affixation of the online notary public's official
  electronic signature or seal. The online notary public shall
  certify compliance with this subsection to the secretary of state.
         (b)  A former online notary public whose commission
  terminated for a reason other than revocation or a denial of renewal
  is not required to destroy the items described by Subsection (a) if
  the former online notary public is recommissioned as an online
  notary public with the same electronic signature and seal within
  three months after the former online notary public's former
  commission terminated.
         Sec. 406.113.  WRONGFUL POSSESSION OF SOFTWARE OR HARDWARE;
  CRIMINAL OFFENSE. (a)  A person who, without authorization,
  knowingly obtains, conceals, damages, or destroys the certificate,
  disk, coding, card, program, software, or hardware enabling an
  online notary public to affix an official electronic signature or
  seal commits an offense.
         (b)  An offense under this section is a Class A misdemeanor.
         SECTION 4.  This Act takes effect July 1, 2018.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 1217 was passed by the House on May 6,
  2017, by the following vote:  Yeas 141, Nays 1, 2 present, not
  voting.
 
  ______________________________
  Chief Clerk of the House   
 
 
         I certify that H.B. No. 1217 was passed by the Senate on May
  22, 2017, by the following vote:  Yeas 27, Nays 3.
 
  ______________________________
  Secretary of the Senate    
  APPROVED:  _____________________
                     Date          
   
            _____________________
                   Governor