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Panel requires non-attorney notaries to carry bonds, raises coverage to $25,000
Summary
The committee approved changes requiring most non-attorney notaries to carry a surety bond (not insurance alone), raising the minimum from $10,000 to $25,000 and streamlining filing; state police witnesses described fraud cases tied to fraudulent notarizations in vehicle VIN-swapping schemes.
Representative Taylor presented HB 259 to require non-attorney notaries to hold a surety bond and increase the minimum coverage from $10,000 to $25,000. The bill also would streamline filing so commercial sureties file with the Secretary of State rather than record with each parish clerk.
Alan Jennings, legislative liaison for the Louisiana Notary Association, explained the change restores a mandatory bond requirement that had been optional since a 2004 change that allowed insurance as an alternative. Jennings argued bonds directly protect the public if a notary commits fraud or a criminal act: “The bond is the only pocket you have to be [reimbursed],” he said.
Lieutenant Mindy Keith and Sergeant Ryan Beard of the Louisiana State Police testified about cases in which fraudulent notarizations were used in vehicle identity (VIN) swaps and title fraud. Lieutenant Keith described schemes that push cloned vehicles back into commerce and lead to multiple innocent buyers losing cars; she said altered or rubber-stamped documents with notarizations contributed to those cases. Sergeant Beard said such frauds can create two victims: the theft victim and a subsequent good-faith purchaser.
The committee adopted a package of technical amendments and reported HB 259 as amended on a unanimous voice vote.
Why it matters: Committee testimony linked the bond requirement to consumer protection, saying a commercially issued bond provides an immediate fund to compensate victims of notarization fraud; the measure also intends to keep notarization practices consistent across parishes while increasing financial protection.
