GSC Electronic Signatures.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 1
HOUSE BILL 44

Short Title: GSC Electronic Signatures. (Public)
Sponsors: Representative Davis.
For a complete list of sponsors, refer to the North Carolina General Assembly web site.
Referred to: Judiciary 1, if favorable, Rules, Calendar, and Operations of the House
February 5, 2025
*H44-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO CLARIFY TH E USE OF ELECTRONIC SIGNATURES IN CERTAI N 2
CONTEXTS, PURSUANT T O A REVIEW DIRECTED BY THE GENERAL 3
ASSEMBLY, AS RECOMMENDED BY THE GENERAL STATUTES COMMISSION. 4
The General Assembly of North Carolina enacts: 5
SECTION 1. G.S. 6-21.6 reads as rewritten: 6
"§ 6-21.6. Reciprocal attorneys' fees provisions in business contracts. 7
(a) As used in this section, the following definitions apply: 8
(1) Business contract. – A contract entered into primarily for business or 9
commercial purposes. The term does not include a consumer contract, an 10
employment contract, or a contract to which a government or a governmental 11
agency of this State is a party. 12
(2) Consumer contract. – A contract entered into by one or more individuals 13
primarily for personal, family, or household purposes. 14
(3) Employment contract. – A contract between an individual and another party 15
to provide personal services by that individual to the other party, whether the 16
relationship is in the nature of employee -employer or principal-independent 17
contractor. 18
(4) Reciprocal attorneys' fees provisions. – Provisions in any written business 19
contract by which each party to the contract agrees, in the manner set out in 20
subsection (b) of this section, upon the terms and subject to the conditions set 21
forth in the contract that are made applicable to all parties, to pay or reimburse 22
the other parties for attorneys' fees and expenses incurred by reason of any 23
suit, action, proceeding, or arbitration involving the business contract. 24
(b) Reciprocal attorneys' fees provisions in business contracts are valid and enforceable 25
for the recovery of reasonable attorneys' fees and expenses only if all of the parties to the business 26
contract sign by hand the business contract. Signature "by hand" is not intended to prevent the 27
application of this section to a business contract executed by either the contract by hand or with 28
one of the following: 29
(1) A party's An electronic signature, as defined in G.S. 66-312, if the party's 30
electronic signature origi nates from an affirmative action on the part of the 31
party to evidence acceptance and execution such as typing the party's signature 32
or writing the party's signature with a finger or stylus on a touchscreen to 33
indicate acceptance and execution. 34
General Assembly Of North Carolina Session 2025
Page 2 House Bill 44-First Edition
(2) A party's manual signature that is delivered by an electronic reproductive 1
image thereof. 2
(c) If a business contract governed by the laws of this State contains a reciprocal 3
attorneys' fees provision, the court or arbitrator in any suit, action, proceeding, or arb itration 4
involving the business contract may award reasonable attorneys' fees in accordance with the 5
terms of the business contract. In determining reasonable attorneys' fees and expenses under this 6
section, the court or arbitrator may consider all relevan t facts and circumstances, including, but 7
not limited to, the following: 8
… 9
(7) Offers of judgment pursuant to Rule 68 of the North Carolina Rules of Civil 10
Procedure G.S. 1A-1, Rule 68, and whether judgment finally obtained was 11
more favorable than such these offers. 12
… 13
(d) Reasonable attorneys' fees and expenses shall not be are not governed by (i) any 14
statutory presumption or provision in the business contract providing for a stated percentage of 15
the amount of such the attorneys' fees or (ii) the amount recovered in other cases in which the 16
business contract contains reciprocal attorneys' fees provisions. 17
(e) Nothing in this section shall in any way make valid or invalid makes valid or invalid 18
attorneys' fees provisions in consumer contracts or in any note, conditional sale contract, or other 19
evidence of indebtedness that is otherwise governed by G.S. 6-21.2. If the business contract is 20
also a note, conditional sale contract, or other evidence of indebtedness that is otherwise governed 21
by G.S. 6-21.2, then the parties that are entitled to recover attorneys' fees and expenses may elect 22
to recover attorneys' fees and expenses either under this section or G.S. 6-21.2 but may recover 23
only once for the same attorneys' fees and expenses. 24
(f) In any suit, action, proceeding, or arbitration primarily for the recovery of monetary 25
damages, the award of reasonable attorneys' fees may shall not exceed the amount in controversy. 26
(g) Nothing in this section shall in any way make valid or invalid makes valid or invalid 27
attorneys' fees provisions in a contract of insurance governed by Chapter 58 of the General 28
Statutes." 29
SECTION 2.(a) Subsection (e) of G.S. 10B-5 is recodified as the fourth and fifth 30
sentences of subdivision (b)(8) of that section. 31
SECTION 2.(b) G.S. 10B-5, as amended by subsection (a) of this section, reads as 32
rewritten: 33
"§ 10B-5. Qualifications. 34
(a) Except as provided in subsection (d) of this section, the Secretary shall commission 35
as a notary any qualified person who submits an application in accordance with this Chapter. 36
(b) A person qualified for a notarial commission shall meet all of the following 37
requirements: 38
… 39
(8) Submit an application containing no significant misstatement or omission of 40
fact. The application form shall be provided by the Secretary and be available 41
at the register of deeds office in each county. Every application shall include 42
the signature of the applicant written with pen and ink, applicant, and the 43
signature shall be acknowledged by the applicant before a person authorized 44
to administer oaths. Notwithstanding subdivision (8) of subsection (b) of this 45
section, the An applicant's signature on an initial application shall be written 46
with pen and ink. The Secretary may allow applications for commissions to 47
be submitted electronically, in the format prescribed by the Secretary. The 48
Secretary shall establish a process for submission of the signature of the 49
applicant prior to commissioning, which applicant's signature that may 50
include electronic submission. 51
General Assembly Of North Carolina Session 2025
House Bill 44-First Edition Page 3
(9) Repealed by Session Laws 2013-204, s. 1, effective July 1, 2013. 1
(c) The notary shall be commissioned in his or her county of residence, unless the notary 2
is not a North Carolina resident, in which case he or she shall be commissioned in the county of 3
his or her employment or business. 4
(d) The Secretary may deny an application for commission or recommission if any of the 5
following apply applies to an applicant: 6
(1) Submission of an incomplete application or an application containing a 7
material misstatement or omission of fact. 8
(2) The applicant's conviction or plea of admission or nolo contendere to a felony 9
or any crime involving dishonesty or moral turpitude. In no case may shall a 10
commission be issued to an applicant within 10 years after release from prison, 11
probation, or parole, whichever is later. 12
(3) A finding or admission of liability against the applicant in a civil lawsuit based 13
on the applicant's deceit. 14
(4) The revocation, suspension, restriction, or denial of a notarial commission or 15
professional license by this or any other state or nation. In no case may shall 16
a commission be issued to an applicant within five years after the completion 17
of all conditions of any disciplinary order. 18
… 19
(e) Recodified." 20
SECTION 3. This act is effective when it becomes law. 21