Committee raises notary bond requirement to $50,000; sponsor and industry say change will protect consumers

The Senate Judiciary Committee on May 28 approved an amendment increasing the required notary bond and reported House Bill 259 with that change. The bill would require notaries to carry a higher bond amount to strengthen consumer protection against fraud.

Representative Taylor introduced the measure at the committee and said the existing $10,000 bond is frequently inadequate in consumer fraud cases such as vehicle‑sale scams; she noted that many used vehicles exceed the current bond amount. Alan Jennings, governmental affairs liaison for the Louisiana Notary Association, said the proposal would remove the option to substitute insurance in place of a bond. Jennings told the committee that when notaries commit fraud, insurance often does not provide a remedy because policies exclude criminal acts; he said a bond better protects the public.

Committee member Senator Luno asked about premium costs for larger bonds; witnesses said surety markets vary but cited an example where a five‑year bond quote could be inexpensive (one carrier quoted $69 for a five‑year bond in materials provided). Senator Carter signaled support and asked that the committee report favorably. The committee adopted amendment set 21‑77 changing the bond amount to $50,000 and reported the bill with amendments.

Sponsor and industry representatives said they would continue to consult with sureties and regulated businesses about implementation, but they argued the policy’s goal is to make victims of notary‑facilitated fraud whole more often and to preserve public trust in transactions notarized in Louisiana.