Preliminary Draft of Proposed Rules

Office of the Colorado Secretary of State
Notary Program Rules
8 CCR 1505-11

March 15, 2018

Disclaimer:
In accordance with the State Administrative Procedure Act, this draft is filed with the Secretary of State and submitted to the Department of Regulatory Agencies.
This is a preliminary draft of the proposed rules that may be revised before the April 17, 2018 rulemaking hearing. If changes are made, a revised copy of the proposed rules will be available to the public and a copy will be posted on the Department of State’s website no later than April 12, 2018.
Please note the following formatting key:
Font effect	Meaning	
Sentence case	Retained/modified current rule language	
Small caps	New language	
Strikethrough	Deletions	
Italic blue font text	Annotations	

Amendments to 8 CCR 1505-11:
Amendments to Rule 1 concerning definitions:
[Current Rule 1.4 is amended.]
1.4	“DAN” means the unique document authentication number issued by the Secretary of State and required by sections 12-55-106.5, 12-55-111(4), and 12-55-112(4.5)(b), section 24-21-520(3), C.R.S., for electronic notarizations.
[New Rules 1.7 and 1.8.]
1.7	“Legal proceeding or disciplinary action based on the applicant’s or notary public’s fraud, dishonesty, or deceit” in section 24-21-523(1)(d), C.R.S., means any civil or criminal matter conducted either judicially or administratively concerning activities involving fraud, deceit, or the other violations listed in Rule 1.8.
1.8	“Misdemeanor involving dishonesty” in section 24-21-523(1)(c), C.R.S., means a violation of, or a conspiracy to violate, a civil or criminal law involving fraud, dishonesty, bribery, perjury, larceny, theft, robbery, extortion, forgery, counterfeiting, embezzlement, misappropriation of property, or any other offense adversely affecting a person’s fitness to serve as a notary public.
1.7 1.9	“New applicant” means a person seeking a commission as a Colorado notary for the first time or a formerly commissioned notary in Colorado whose commission has been expired for more than 30 days.
Amendments to Rule 2 concerning notary commissions:
[Regarding filing and training requirements: New Rule 2.1.3. Current Rules 2.1.3, 2.1.4, and 2.1.5 are renumbered as Rules 2.1.4, 2.1.5, and 2.1.6. New Rule 2.1.6(a) is amended.]
2.1.3	No more than 90 days before renewing a commission, a notary must successfully complete training and pass the exam administered by the Secretary of State.
2.1.3 2.1.4	The Secretary of State will grant credit only for completion of courses offered by an approved vendor, an approved course provider, or the Secretary of State.
2.1.4 2.1.5	The Secretary of State may require a notary who has committed misconduct meriting a disciplinary proceeding to retake and successfully complete the training and exam.
2.1.5 2.1.6	Examination. The Secretary of State’s open book examination will test the applicant’s understanding of notary duties contained in the following:
(a)	Title 12 24, Article 55 21, Part 5 (The Notaries Public Act Revised Uniform Law On Notarial acts) of the Colorado Revised Statutes;
(b)	Title 38, Article 30 (Titles and Interests) of the Colorado Revised Statutes;
(c)	Title 1, Article 40 (Initiative and Referendum) of the Colorado Revised Statutes; and
(d)	The Official Notary Handbook published by the Secretary of State.
[Amendments to current Rule 2.2.1, concerning electronic notarization]
2.2.1	A notary must submit a notice of intent on the approved form and receive approval from the Secretary of State before the notary may electronically notarize a document. A new applicant may file the intent at the time of application but may only electronically notarize a document after he or she has been commissioned and approved. A notary may choose to either use a DAN as the notary’s electronic signature or adopt a different electronic signature which the notary must always use in conjunction with a DAN. If the applicant intends to use a different electronic signature than a DAN, the applicant must attach an example of the electronic signature, a description of the electronic signature technology, and contact information for the technology’s supplier or vendor. A notary must notify the Secretary of State of all electronic signature changes.
[Current Rules 2.2.2 and 2.2.3 are repealed. Current Rules 2.2.4 and 2.2.5 are renumbered as Rules 2.1.2 and 2.1.3]
2.2.2	A notary must include his or her notary identification number in an electronic notarization.
2.2.3	For purposes of section 12-55-106.5(1), C.R.S., a notary’s name means the notary’s printed legal name.
2.2.4 2.2.2	A notary must:
(a)	Use a different DAN for each electronic notarization;
(b)	Take reasonable measures to secure assigned DANs against another person’s access or use and must not permit such access or use; and
(c)	Request new DANs to replace lost or stolen DANs after notifying the Secretary in the same manner as for a journal or seal.
2.2.5 2.2.3	A notary must verify that the document signer has adopted an electronic signature to function as his or her signature before electronically notarizing a document.
[Current Rule 2.2.6 is renumbered as Rule 2.2.4 and amended.]
2.2.6 2.2.4	Expiration of the Secretary of State’s approval to notarize electronically
(a)	Approval automatically expires:
(1)	Upon revocation, expiration, or resignation of the notary’s commission;
(2)	30 days after the notary’s name changes unless the notary previously submitted a name change.
(3)	Upon conviction of a felony;
(4)	Upon conviction of a misdemeanor involving dishonesty;
(4) (5)	If the notary moves out of Colorado no longer has a place of employment or practice or a residential address in the state of Colorado; or
(5) (6)	Upon the expiration or revocation of the technology described in the notification.
(b)	If approval expires, the notary or the notary’s authorized representative must destroy all electronic notarization software and unused DANs unless:
(1)	The notary’s commission expired; and
(2)	Within 30 days of the commission’s expiration, the Secretary of State recommissions the notary and the notary reregisters his or her electronic signature.
Amendments to Rule 3, concerning notary trainer requirements: 
[Amendments to current Rule 3.1.1(b), concerning course provider applicant requirements:]
3.1.1	A course provider applicant must:
[No amendments to current Rule 3.1.1(a)]
(b)	Attend in-person or online training provided by the Secretary of State.
[Amendments to current Rule 3.2.1(a), concerning vendor-specific requirements:]
3.2.1	The Secretary of State must approve a vendor’s proposed curriculum before a vendor may offer a notary training course. Curriculum must be based on:
(a)	The Colorado Notaries Public Act Revised Uniform Law On Notarial acts including but not limited to: the physical presence requirement, duty not to notarize a blank document, duty to use a notarial certificate, disqualifying interest, application procedures, resignation requirements, duty to maintain a journal of notarial acts, revocation proceedings, liability, identification of signers, role of the notary, and official misconduct; and
[No amendments to current Rule 3.2.1(b)]
[Current Rule 3.2.2(c), concerning seal of accreditation, is amended.]
(c)	A seal of accreditation expires four years after issuance. To renew accreditation, a vendor must submit for reapproval a detailed curriculum; copies of any course handout materials, workbooks, and tests; and the required form and fee.
[Current Rule 3.5 is amended.]
3.5	Duty to revise training. Approved vendors and course providers must revise approved courses of instruction as necessary to ensure that the courses accurately reflect current Colorado law. Approved vendors and course providers must submit notice of revised training and copies of the revisions to the Secretary of State for review and approval in a format that satisfies Rule 3.4, before offering the revised training to the public.
[New Rule 4.]
Rule 4.	Notary Journal Requirements
4.1	If a current or former notary leaves the notary journal with the notary’s firm or employer, as authorized by section 24-21-519(10)(a), C.R.S., the notary must notify the Secretary of State by electronically submitting the required form.
4.2	A firm or employer in possession of a notary’s journal has the same responsibility as a notary to:
4.2.1	Keep the journal secure as detailed in section 24-21-519(4), C.R.S.; 
4.2.2	Provide a copy of a requested transaction to a member of the public per section 24-21-519(5), C.R.S, but without certifying the copy or charging a notary fee;
4.2.3	Provide the journal to the Secretary of State for auditing or inspection without restriction per section 24-21-519(6), C.R.S.; 
4.2.4	Provide the journal to a certified peace officer per section 24-21-519(7), C.R.S.; and
4.2.5	Notify the Secretary of State if the journal is lost or stolen per section 24-21-519(8), C.R.S. 
4.3	A firm or employer in possession of a notary’s journal may:
4.3.1	Retain the journal indefinitely; or
4.3.2	Transmit the journal to the Colorado State Archives and notify the Secretary of State per section 24-21-519(10)(a)(I) and (b), C.R.S.