SB 360
Department of Legislative Services
Maryland General Assembly
2021 Session
FISCAL AND POLICY NOTE
Third Reader
Senate Bill 360 (Senator Rosapepe)
Judicial Proceedings Health and Government Operations
State Government – Notaries Public – Notary Public Fund and Remote Notarial
Acts
This bill establishes the Notary Public Fund, a special fund administered by the Secretary
of State (SOS) for the purpose of providing funding to support the implementation,
regulation, administration, and enforcement of the laws governing notaries public. The
fund consists of revenue from specified existing fees, money appropriated in the State
budget to the fund, and any other money from any other source accepted for the benefit of
the fund. The fund may be used only to cover the expenses of SOS in carrying out its
responsibilities with respect to notaries public. The bill takes effect July 1, 2021.
Fiscal Summary
State Effect: General fund revenues and expenditures decrease by $200,000 annually
beginning in FY 2022; special fund revenues and expenditures increase correspondingly.
(in dollars) FY 2022 FY 2023 FY 2024 FY 2025 FY 2026
GF Revenue ($200,000) ($200,000) ($200,000) ($200,000) ($200,000)
SF Revenue $200,000 $200,000 $200,000 $200,000 $200,000
GF Expenditure ($200,000) ($200,000) ($200,000) ($200,000) ($200,000)
SF Expenditure $200,000 $200,000 $200,000 $200,000 $200,000
Net Effect $0 $0 $0 $0 $0
Note:() = decrease; GF = general funds; FF = federal funds; SF = special funds; - = indeterminate increase; (-) = indeterminate decrease
Local Effect: None.
Small Business Effect: None.
 Analysis
Bill Summary: The State Treasurer must hold the fund separately, and the Comptroller
must account for the fund. The State Treasurer must invest the money of the fund in the
same manner as other State money may be invested. Interest earnings are credited to the
fund. Expenditures from the fund may be made only in accordance with the State budget.
Fees assessed by SOS for the processing of applications, issuance and renewal of notarial
commissions, returned checks, and preparation and furnishing of specified lists of
information to requestors must be distributed to the fund.
Current Law: SOS may fix reasonable fees as required for the processing of notary public
applications and the issuance and renewal of notarial commissions and may charge a
reasonable fee of up to $25 for checks returned for insufficient funds. Under regulations
adopted by SOS, each application for an original or renewal appointment as a notary public
must be accompanied by a processing fee of $9 payable to SOS.
In addition, SOS may charge a reasonable fee for the cost of preparing a list of public
information in its records to provide to a person who requests it, as specified. SOS may
charge a reduced fee if a list is requested for governmental or nonprofit purposes.
Chapter 407 of 2019 generally updated provisions relating to notaries public and notarial
acts.
State Fiscal Effect: SOS advises that it reduced its processing fee from $20 to $9 in
fiscal 2016 and has annually collected approximately $200,000 in fees related to notarial
commissions since then. Under the bill, such fees are distributed to the new special fund
rather than the general fund. Accordingly, based on annual fee revenue totals in recent
years, general fund revenues decrease by an estimated $200,000 annually, and special fund
revenues for the Notary Public Fund increase correspondingly. To the extent that fee
revenues are greater or less in a particular fiscal year, the decrease in general fund revenues
– and increase in special fund revenues – is greater or less.
As a result of the bill’s changes, general fund expenditures for SOS decrease by an
estimated $200,000 annually beginning in fiscal 2022, and special fund expenditures
increase correspondingly.
Additional Information
Prior Introductions: HB 661 of 2020 passed the House and was referred to the Senate
Rules Committee, but no further action was taken.
SB 360/ Page 2
Designated Cross File: None.
Information Source(s): Secretary of State; Department of Budget and Management;
Department of Legislative Services
Fiscal Note History: First Reader - February 4, 2021
rh/mcr Third Reader - March 24, 2021
Analysis by: Elizabeth J. Allison Direct Inquiries to:
(410) 946-5510
(301) 970-5510
SB 360/ Page 3
 ANALYSIS OF ECONOMIC IMPACT ON SMALL BUSINESSES
TITLE OF BILL: State Government – Notaries Public – Notary Public Fund and Remote
Notarial Acts
BILL NUMBER: SB 360
PREPARED BY: Secretary John Wobensmith
PART A. ECONOMIC IMPACT RATING
This agency estimates that the proposed bill:
__X__ WILL HAVE MINIMAL OR NO ECONOMIC IMPACT ON MARYLAND SMALL
BUSINESS
OR
WILL HAVE MEANINGFUL ECONOMIC IMPACT ON MARYLAND SMALL
BUSINESSES
PART B. ECONOMIC IMPACT ANALYSIS
Small businesses will be positively impacted because the Secretary of State will be able to better
manage the requirements of Chapter 407 of 2019 (SB678) and allow for the protection of the public
and the notaries themselves.
Small businesses that are in the real estate and mortgage business could be temporarily affected
by being unable to use the new remote notarization technology for an additional year. However,
the amount of small businesses that will use remote notarization technology is unknown.
Furthermore, people that give business to those in the real estate and mortgage businesses will still
be using these small business to conduct their transaction. Business will still occur as it currently
does; this bill does not prevent that.
SB 360/ Page 4


Statutes affected:
Text - First - State Government – Notaries Public – Notary Public Fund and Remote Notarial Acts: 6-226 State Finance and Procurement, 18-103 State Government, 18-108 State Government, 18-109 State Government
Text - Third - State Government – Notaries Public – Notary Public Fund and Remote Notarial Acts: 6-226 State Finance and Procurement, 18-103 State Government, 18-108 State Government, 18-109 State Government