6.4 Grounds for Disciplinary Action

The Secretary of State's Authority

Under MCA 1-5-621, the Montana Secretary of State (SOS) oversees and disciplines notaries. Discipline is administrative — it concerns your commission — and is separate from any criminal prosecution (6.5) or civil lawsuit. Knowing the five actions and the grounds is heavily tested.

The Five Disciplinary Actions

The General Standard

The SOS may act based on any act or omission showing the person lacks:

• Honesty
• Integrity
• Competence
• Reliability

Memorize these four — a single fitting acronym is 'HICR.' Any conduct undermining one of them can support discipline.

Specific Grounds (MCA 1-5-621)

Worked Example

A notary's commission was revoked in Wyoming for falsifying certificates. When she applies in Montana and discloses it, the SOS may deny the application: out-of-state revocation is an express ground, and the underlying falsification shows she lacks integrity and reliability.

Notice how the grounds overlap in a single fact pattern. The Wyoming revocation alone is sufficient under the out-of-state-action ground. But the same conduct also implicates the disqualifying-conviction ground if she was charged, the fraudulent-application ground if she failed to disclose it, and the general HICR standard because falsifying certificates shows a lack of honesty and reliability. The SOS does not need to prove every ground — one is enough — but a single bad act usually triggers several, which is why discipline cases are rarely close calls.

Note also that the bond-failure ground operates almost automatically: if a notary lets the required surety bond lapse, the commission cannot stand, because the bond is a condition of holding it in the first place.

The 30-Day Conviction-Reporting Duty

If a notary is convicted of — or pleads guilty or no contest to — either of the following, they must notify the SOS within 30 days of the conviction or plea:

1. Any felony, or
2. Any crime involving fraud, dishonesty, or deceit.

Note: A past conviction is not an automatic permanent bar if the person's full civil rights have been restored — but failing to report within 30 days is itself misconduct.

The 30-day clock starts at the conviction or the plea, not at sentencing and not when an appeal is exhausted. A 'no contest' (nolo contendere) plea counts the same as a guilty plea for reporting purposes, even though the defendant did not formally admit guilt. Two categories trigger the duty: any felony of any kind, and any misdemeanor or felony involving fraud, dishonesty, or deceit — such as theft, forgery, fraud, or perjury. A misdemeanor with no element of dishonesty — a minor traffic offense, for instance — does not trigger the reporting duty.

The safest practice when unsure is to report; over-reporting is harmless, while a missed report is independent misconduct that can compound the original problem.

Due Process

Discipline is not arbitrary. If the SOS moves against your commission, you are protected by the Montana Administrative Procedure Act (MAPA):

Reading the Action to the Severity

The five actions are not interchangeable; the SOS scales the response to the conduct. A minor, first-time procedural lapse — a few incomplete journal entries — might draw a conditioned commission requiring corrective training. Repeated failures to perform duties, or letting the bond lapse, might bring a temporary suspension until the problem is cured. Deliberate fraud, falsified certificates, or a disqualifying conviction typically warrants outright revocation or denial of renewal.

Understanding this gradient helps on scenario questions: the exam often asks not merely whether the SOS can act, but which action best fits the facts. Conditioning preserves the commission with strings attached; revocation ends it.

Discipline Is Not the Only Consequence

SOS discipline does not prevent — and is in addition to — criminal prosecution, civil liability, and any professional consequences from an employer or licensing board. A notary disciplined administratively can still be prosecuted under MCA 1-5-632 and sued by an injured party, and the outcomes are independent of one another.

On the Exam

• Five actions: deny, refuse to renew, revoke, suspend, condition.
• HICR standard: honesty, integrity, competence, reliability.
• 30 days to report a felony or fraud/dishonesty/deceit conviction.
• Out-of-state discipline is an express Montana ground.
• MAPA due process — notice, hearing, judicial review.