On November 22, 2024, Governor Kathy Hochul vetoed A.7242/S.8663, a bill that sought to rescind 19 NYCRR 182.9 (the “Regulations”) to eliminate the requirement that notaries keep a record of their paper and ink-based notarial acts.  The Regulations’ record-keeping requirement had been designed to protect New Yorkers against deed fraud and other forgeries.  The bill to rescind the Regulations had been supported by the New York State Bar Association, which asserted the journal requirement was unduly burdensome on lawyers and their notarial employees. The Regulations had been issued by the Secretary of State pursuant to Executive Law sections 130 and 135-c.  

The New York City Bar Association in an August 2024 letter had urged the Governor to veto the bill rescinding the Regulations.  The veto letter pointed out that paper and ink notarizations account for virtually all cases of deed fraud and home theft, and that notary journals are an important tool to ensure proper performance of notarial duties, to assist victims of fraud to obtain redress, and to provide evidence to protect notaries of unwarranted accusations of negligence.  Letter to the Governor in Opposition to the Journal Abolition Bill   The New York Notary Alliance also submitted a letter and supporting materials urging the Governor’s veto and in support of the Regulations.

Both letters urging veto were based on the December 2023 Report of the New York City Bar Association, prepared by its Commercial Law and Uniform State Laws and Real Estate committees, in support of the Regulations.  Regulations Promulgated by the NY Secretary of State on NY Notary Law | New York City Bar Association   

The Governor’s veto message stated, “Notary publics play an important role in the completion of many transactions, and diligent record-keeping is a critical resource when notarized transactions are alleged to be fraudulent or invalid.  Exempting certain notary publics from record-keeping requirements could impede our efforts to fight fraud and lead to confusion within the legal system.  Therefore, I am constrained to veto this bill.”  

Alan Kolod chaired the drafting subcommittees of the City Bar that prepared both the 2023 Report in support of the Regulations and the 2024 City Bar veto letter to the Governor. 

These are examples of Alan’s activities to support legislative efforts to combat fraud and, particularly, to do so by promoting the use of electronic records in commerce in ways that protect against documentary fraud.  These efforts include his work in support of enactment of the Uniform Law Commission’s Uniform Voidable Transactions Act to replace New York’s Fraudulent Conveyance Law, the amendments to the Executive Law to authorize remote electronic notarization, and the proposed 2022 Amendments to the New York Commercial Code to recognize transferable electronic records. 

Alan is currently working on projects involving potential amendment of the Electronic Signatures and Records Act to include provisions of the ULC’s Uniform Electronic Transactions Act, the authorization of electronic estate planning documents, and the recognition of remote notarization of paper and ink records with stringent anti-fraud provisions.