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341E3943EE606124872583DF006E52FA Hearing Summary




PUBLIC
BILL SUMMARY For HB19-1167

SENATE COMMITTEE ON JUDICIARY
Date Apr 17, 2019      
Location SCR 352



HB19-1167 - Amended, referred to Senate Finance

02:05:05 PM  

Senators Rodriguez and Holbert, co-prime sponsors, explained HB 19-1167, concerning an authorization for notaries public to perform notarial acts using audio-video communication. 

Senator Holbert discussed how the bill will protect privacy concerns of people who have documents notarized electronically. 

Committee discussion followed about attempts to pass similar measures in previous legislative sessions.  The committee further discussed recommendations of the Uniform Law Commission and how remote testimony works.  Discussion returned to ensuring data privacy and protecting consumers. 

 

02:32:53 PM  

Terry Jones, representing Colorado Mortgage Lenders Association, testified in support of the bill. He discussed the inevitability of remote notarization and the stakeholder process involved with this bill.  He also talked about how remote notarization includes a recording that needs privacy restrictions.   Committee discussion followed about what happens to additional information that is part of the recording. 

02:49:02 PM  

Further discussion ensued about the notarial recordings and admissible evidence.  Mr. Jones emphasized that the bill attempts to make a minimal number of changes to the way the notary process is currently done in person or electronically.

02:53:14 PM  

Elizabeth Peetz, representing the Colorado Association of Realtors, testified in support of the bill. She discussed data privacy concerns.

Charles Calvin, representing the Colorado Bar Association, testified in favor of the bill.  He discussed how the bill attempts to replicate face-to-face notarization as much as possible.  He explained how the bill addresses core concerns about consumer information contained in documents that are notarized. 

 

03:09:05 PM  

Committee discussion followed about admissibility of evidence and district attorney subpoenas to obtain the recordings.  Discussion returned to the position of the Uniform Law Commission on this issue.  Committee members expressed concerns that business interests may impact positions on the bill. 

Senator Rodriguez distibuted two letters from mortgage companies that support the legislation (Attachments B and C). 

 

03:18:20 PM  

Andy Toft, representing the Colorado Bar Association, spoke in support of the bill.  He emphasized that the bill provides a mechanism for protecting consumer information.

03:24:03 PM  

Victoria Bantz, representing the Colorado Bar Association, testified in support of the bill. She stressed that the bill aims to keep regular and remote notaries on the same level.  She further discussed duties to report in regard to fraud. 

03:33:23 PM  

Meg Dubray, representing Notarize, spoke against the bill.  She explained that Notarize is a notary platform for the electronic notarization of documents.  She expressed concerns that the bill contains overly broad definitions and discussed data privacy laws.  She stated that the bill would cause difficulties for notary platforms. 

Phil Hayes, representing Notarize, testified against the bill.  He expressed concerns that the bill is too vague and designed to keep digital notaries out of the market.  He also noted problems with truncating the recordings involved with a remote notarization. 

 

03:49:58 PM  

The committee discussed digital platforms and businesses outside of Colorado.  Committee members attempted to review Notarize's privacy policies from their website.  Discussion followed about using personal information for business opportunities. 

Letty Maxfield, representing the Colorado Bar Association, joined Notarize at the table to answer questions.

04:10:37 PM  

Mr. Hayes testified that Notarize participated in the stakeholder process but was not included in drafting the legislation  Discussion followed about the stakeholder process. 

 

04:16:16 PM  

Diane Evans, representing the Land Title Association of Colorado, testified in support of the bill.  Ms. Evans explained that stakeholders were unable to reach consensus about data privacy.  She distributed a Uniform Residential Loan Application as an example of documents containing personal identifying information that may be sent to a remote notary in a real estate transaction (Attachment D).   She answered questions about definitions in the bill.   

 

 

04:51:22 PM  

Letty Maxfield testified in support of the bill. She discussed notary duties, generally, and notary platform privacy issues.  She explained that the bill is narrowly tailored to specifically protect the notarial process. 

05:08:14 PM  

Senator Gardner distributed and explained amendment L. 018 concerning admissible evidence contained in notarial documents (Attachment E). 

The committee sponsors did not support the proposed amendment and expressed concerns that it creates two standards for notaries.   



05:15:20 PM
Motion Adopt amendment L.018
Moved Gardner
Seconded
Cooke Yes
Gardner Yes
Rodriguez No
Gonzales Yes
Lee No
YES: 3   NO: 2   EXC: 0   ABS:  0   FINAL ACTION:  PASS
05:15:21 PM  

Committee members stated reasons for support or opposition to the bill. 

 

Senator Holbert distributed an email from the Mortgage Bankers Association in support of the bill (Attachment F).  Senators Holbert and Rodriguez made closing remarks. 

 



05:25:50 PM
Motion Refer House Bill 19-1167, as amended, to the Committee on Finance.
Moved Rodriguez
Seconded
Cooke No
Gardner No
Rodriguez Yes
Gonzales Yes
Lee Yes
Final YES: 3   NO: 2   EXC: 0   ABS:  0   FINAL ACTION:  PASS






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