View Amendment Current Amendment: 1 to Bill 3917 The Committee on Judiciary proposes the following Amendment No. 1 to H. 3917 (COUNCIL\WAB\3917C001.AGM.WAB19):

Reference is to the bill as introduced.

Amend the bill, as and if amended, by Section 26-1-310, as contained in SECTION 2, by deleting the section in its entirety and inserting:

/      Section 26-1-310.      As used in this this article and Article 5:
     (1)      'Electronic' means relating to technology having electrical, digital, magnetic, wireless, optical, electromagnetic, or similar capabilities.
     (2)      'Electronic document' or 'electronic record' means information that is created, generated, sent, communicated, received, or stored by electronic means.
     (3)      'Electronic journal' means a chronological electronic record maintained by a notary public of notarial acts performed by the notary public.
     (4)      'Electronic notarial act' or 'electronic notarization' means a notarial act authorized under Section 26-1-360 and performed by an electronic notary public that involves the notary's electronic signature on an electronic document.
     (5)      'Electronic notarial certificate' means the part of, or attachment to, an electronic record that is completed by the electronic notary public, bears the electronic notary's electronic signature and electronic seal, and states the facts attested to by the electronic notary in an electronic notarization.
     (6)      'Electronic notarization system' means a set of applications, programs, hardware, software, or technologies that enable an electronic notary to perform electronic notarizations.
     (7)      'Electronic notary public' or 'electronic notary' means a notary public who has registered with the Secretary of State to perform electronic notarial acts under this article.
     (8)      'Electronic seal' means an electronic image attached to or logically associated with a notarized electronic document containing information that includes the electronic notary's name, title, jurisdiction, and commission expiration date.
     (9)      '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.
     (10)      'Information' means data, text, images, sounds, codes, computer programs, software, database, or the like.
     (11)      'Notary's electronic signature' means an electronic signature in a form approved by the Secretary of State for an electronic notary to sign an electronic record that is the subject of a notarial act.
     (12)      'Sole control' means being at all times in the direct physical custody of a person or safeguarded by a person with a password or other secure means of authentication.
     (13)      'Tamper-evident' means rendering any subsequent change or modification to an electronic record evident. /

Amend the bill further, Section 26-1-410(D), as contained in SECTION 2, by deleting the subsection in its entirety and inserting:

/      (D)      Any party to the notarized transaction or party with a legitimate interest in the transaction may inspect or request a copy of an entry or entries in the electronic journal if:
           (1)      the party specifies the month, year, type of record, and name of the individual for whom the notarial act was performed, in a signed request on a tangible or electronic record;
           (2)      the electronic notary does not surrender possession or control of the electronic journal;
           (3)      the party is shown or given a copy of only the entry or entries specified; and
           (4)      a separate new entry is made in the electronic journal, explaining the circumstances of the request and noting any related act of copy certification by the electronic notary. /

Amend the bill further, Section 26-1-410(G), as contained in SECTION 2, by deleting the subsection in its entirety and inserting:

/      (G)      The Secretary of State shall establish standards for preservation of electronic notarial records in the event of a resignation, revocation, or expiration of an electronic notary commission, or upon the death of an electronic notary. The provisions of this subsection do not apply to a former electronic notary whose commission has expired if he renews his electronic notary commission within three months of expiration. /

Amend the bill further, Section 26-1-560, as contained in SECTION 4, by adding an appropriately lettered subsection at the end to read:

/      ( )      For purposes of this chapter:
           (1)      any requirement that an instrument be signed in the presence of two subscribing witnesses may be satisfied by witnesses being present and electronically signing by means of communication technology, as defined in Section 26-1-510(B)(1); and
           (2)      the act of witnessing an electronic signature is satisfied if a witness is present either in the physical presence of the principal or present through audio-visual communication technology at the time the principal affixes his electronic signature and sees and hears the principal make a statement acknowledging that the principal has signed the electronic record. /

Amend the bill, as and if amended, Section 26-1-580, as contained in SECTION 4, by deleting the Section in its entirety and inserting:

/      Section 26-1-580.      (A)      The Secretary of State shall promulgate and enforce any regulations, policies, and procedures necessary for the administration of this article.
     (B)      Regulations adopted under this section shall:
           (1)      prescribe the means of performing remote online notarial acts;
           (2)      establish standards for communication technology, credential analysis, and identity proofing; and
           (3)      establish standards for the retention of audio-visual recordings created under Section 26-1-570."

Section 26-1-590. No provision of this article may be construed to contravene the laws of this State that require an attorney licensed to practice in this State to supervising a real estate closing."

Amend the bill further by striking SECTION 10 in its entirety and inserting:

/ SECTION      10.      This act does not apply to wills, codicils, and trusts in South Carolina. /

Amend the bill further by adding an appropriately numbered SECTION at the end to read:

/ SECTION      __.      This act takes effect one year after approval by the Governor. Remote and electronic notary public applications will not be accepted for processing until the administrative rules are in effect and vendors of technology are approved by the Secretary of State.      /


Renumber sections to conform.
Amend title to conform.