"This just confuses me.."
 Me, too!!! I think it has possibly been adapted by some well-meaning people from other states. Or our "favorite" association-with-an-acronym-I-won't-mention has been teaching its use. Or it could be other companies teaching its use. Also, there seems to be a difference of opinion about whether or not it's UPL.
I think this happens because the request mentioned in the original post is so common. And I'll reiterate what David said about it being "convenient". It's an easy way to get around the issue. Someone here not too long ago mentioned that they just show the signer the certificate options - including the document custodian form - and let them decide. That might conform with the letter of the law, strictly interpreted, but to me, it still feels a bit too much like UPL. The Document Custodian form is not a notary certificate authorized in CA and is not mentioned in any way in the handbook from our SOS. That's all I need to know about it.
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