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New York State Bar Association applauds Legislature for passing law to ease burdensome recordkeeping regulations for notaries

New York State Bar Association applauds Legislature for passing law easing burdensome record-keeping regulations for notaries

6/6/2024

Author: Jennifer Andrus

New York State Bar Association President Domenick Napoletano issued the following statement after the state Legislature passed Notary Reform Act A07241A/S8663:

“New York state law required notaries to keep records of every transaction for 10 years. It was so difficult and time-consuming that many lawyers decided to completely stop practicing as notaries. We have worked closely to advise lawmakers on the implications of notarial law and we thank them for addressing this issue. We commend Assemblymember Charles Lavine and State Senator Brad Hoylman-Sigal for moving quickly to improve the law. We call on Governor Kathy Hochul to sign this much-needed reform.”

Shortly after the original Notarial Act was signed into law in 2022, the New York State Bar Association formed a Notarial Task Force to study the new rules. Acting quickly, the task force produced a report concluding that the new rules were unnecessary for lawyers who were already bound by the Rules of Professional Conduct. The report also found that the law did little to prevent or reduce consumer fraud, which was its intention.

Former NYSBA President Richard Lewis, who chaired the Notarization Task Force, praised the new law:

“This reform allows lawyers to spend less time filing paperwork and more time helping New Yorkers in need. This is an example of the government acting on behalf of its citizens by removing burdensome state regulations,” he said.

Background

Implementing Act § 135-c was enacted in 2022 to establish electronic certification requirements and procedures. Under the new law, notaries were obliged to keep a journal of each notarially certified document for 10 years. Electronic notaries must keep a diary and audio and video files. While the bill was intended to accommodate new technologies, it added more work for all types of notarial certifications.

The 2022 bill had a negative impact on New York attorneys by adding work hours related to maintaining records and recording them for review by state regulators. Preserving documents for review allowed private, confidential information between lawyers and clients to be disclosed to the government. The 2024 Act corrects this error by excluding non-electronic notarial deeds from the scope of the bookkeeping and storage provisions.