Remote Notary, False Claims, Data Privacy Measures Adopted

The General Assembly overwhelmingly approved legislation lowering business costs by allowing a notary public to notarize a document for a person who is not in the notary’s physical presence under specified conditions.

CBIA, along with a number of other employer groups, testified in support of SB 1040 during a Judiciary Committee hearing earlier this year.

Forty-two other states permit the practice, which Gov. Ned Lamont authorized during the pandemic through a series of executive orders.

The use of remote notarizations during the pandemic highlighted how systems can be modernized and improve operational efficiency.

Under the bill which now heads to the governor’s desk, remote notarization can be used when (1) the person and the notary can communicate in real time, simultaneously, by sight and sound using communication technology; and (2) the notary can reasonably identify the person during the notarization.

After the document is remotely notarized and signed, the bill then requires the person to mail or deliver the record to the notary for certification and execution.

The bill prohibits remote notarization for real estate closings; making and executing a will, codicil, or trust; executing healthcare instructions; designating a standby guardian for a minor; executing a living will; or appointing an agent under power of attorney unless the power of attorney is limited in duration and grants an agent authority over real estate transactions.

False Claims Act Expansion

The state Senate joined the House earlier this week to approve HB 6826, which expands the scope of the Connecticut False Claims Act.

The bill removes provisions in current law that limit it to state-administered health and human services programs.

CBIA opposed the bill when it was reviewed by the Government Administration and Elections Committee in March, but was relieved to see a major problem from last year’s proposal fixed in this year’s version.

The bill specifically exempts any claim, record, or statement made under any tax law administered by the state or one of its political subdivisions.

In 2022, CBIA opposed the inclusion of state and municipal business tax filings under the act. Only six states in the country apply their respective laws to state tax matters.

The inclusion of state and municipal tax matters under any expansion of the law allows private parties to intervene in the administration, interpretation, and enforcement of tax laws, usurping the authority of the Department of Revenue Services, creating uncertainty, and resulting in the inequitable treatment of taxpayers.

Under the final measure passed June 7 by the House, the expansion specifically exempts any claim, record, or statement made under any tax law administered by the state or one of its political subdivisions.

Data Privacy and Sexual Harassment

SB 3, a major priority for Senate Democrats—led by Sen. James Maroney (D-Milford)—cleared both chambers and will set new standards for accessing and sharing consumer health data by certain private entities that do business in Connecticut. 

The bill also requires social media platforms to unpublish and delete a minor’s social media account under specific circumstances, and establishes a framework for how individuals and entities offering certain online services, products, and features manage and process personal data for minors.

While the bill will arrive at the governor’s desk as solely focused on data privacy, it was amended during the committee process to remove a problematic section that increased an employer’s potential liability for employee references.

The bill was amended to remove a problematic section that increased an employer’s potential liability for employee references.

Section 13, now removed, required companies to disclose any “known act of sexual harassment” or “sexual assault” committed by an employee in the workplace if a recommendation or positive commentary about that employee is provided to a potential employer. 

If the employer failed to make this disclosure and the employee is hired by a new employer and commits an act of sexual harassment or sexual assault, the former employer who failed to disclose the act is liable to any employee of the person who relied on the recommendation or positive commentary.

CBIA testified against Section 13 during a March Judiciary Committee hearing.

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For more information, contact CBIA’s Wyatt Bosworth (860.244.1155) | @WyattBosworthCT.