Legislative Developments 1-22-2024

Legislative Developments 1-22-2024

Article 9 and lien-related legislation

No developments to report this week.

Other uniform laws legislation (includes the 2022 Amendments to the Uniform Commercial Code (UCC) with UCC Article 12-Controllable Electronic Records)

Mississippi: House Bill 303 was introduced on 1/18/2024 to define “central bank digital currency,” prohibit all government entities in the state from using central bank digital currency, and to amend the state’s version of UCC § 1-201 to exclude that term from the definition of “money.”

Oklahoma: House Bill 3323 was pre-filed on 1/17/2024 to amend the state’s version of UCC § 1-201 to define “central bank digital currency” and exclude that term from the definitions of “deposit account” and “money.”

Rhode Island: House Bill 7210 was introduced on 1/18/2024 to enact the 2022 Amendments to the UCC, including UCC Article 12-Controllable Electronic Records, and related amendments.

Tennessee: Senate Bill 1764 was introduced on 1/12/2024 to amend the state’s version of UCC § 1-201 to add a definition for “central bank digital currency” and exclude central bank digital currency from the definition of “money.”

West Virginia: Senate Bill 454 was introduced on 1/15/2024 and House Bill 4837 on 1/17/2024 to amend the state’s version of UCC § 3-118 so the statute of limitation for actions to enforce the obligation of a note reflects a bank’s duty to retain and produce records of such note.

Wisconsin: Senate Bill 450, which would adopt the Uniform Voidable Transactions Act, passed the Senate on 1/16/2024 and was immediately taken up by the House. The bill then passed the House the same day. The bill is now pending action by the governor.

Emerging technology legislation (blockchain, distributed ledger technology, cryptocurrency, etc.)

Arizona: Senate Bill 1127 was introduced on 1/17/2024 to prohibit a city, town, or county from imposing a tax or fee on anyone running a node using blockchain technology from a residence.

Oklahoma: Senate Bill 1833 was pre-filed on 1/17/2024 to adopt the Blockchain Basics Act. This bill would provide that (i) an individual may engage in home digital asset mining; (ii) a digital asset mining business may operate in any area zoned for industrial use; (iii) limit local government ability to regulate digital asset mining; and (iv) limit state and local government ability to impose additional taxes or charges on controllable electronic records used as a method of payment. A similar, but not identical bill was pre-filed on 1/18/2024 as House Bill 3594.

Oklahoma: Senate Bill 1843 was pre-filed on 1/18/2024 to authorize the Banking Department and the Oklahoma Department of Commerce to coordinate, develop plans, and make recommendations, and to establish requirements and a strategy to implement a state-chartered financial institution and the central depository for virtual currency used by governmental agencies in the state. This new financial institution shall be fully supported by blockchain technology and innovations.

Business organization legislation

Maryland: Senate Bill 85 was introduced on 1/10/2024 to authorize the formation of limited worker cooperative associations and provides for their governance and dissolution.

Utah: House Bill 318 was introduced on 1/17/2024 to amend the Decentralized Autonomous Organizations Act. The amendments would provide that the Division of Corporations and Commercial Code does not issue a certificate of organization for such entities and modify the requirements for the name of such an organization.

Wyoming: Senate Bill 50 was pre-filed on 1/16/2024 to adopt the Wyoming Decentralized Unincorporated Nonprofit Association Act. The Act provides for the formation and management of decentralized unincorporated nonprofit associations.

Notary Legislation

Arizona: House Bill 2588 was introduced on 1/11/2024 to amend provisions of notary law, including (i) requirements for a notary stamp; (ii) application requirements; (iii) electronic filing of notary applications and records with the secretary of state; and (iv) a requirement that notary applicants be fingerprinted and obtain a fingerprint clearance card.

Utah: House Bill 25, which would provide for electronic notarization of documents to be recorded electronically with a county recorder, passed the House on 1/16/2024.

Virginia: House Bill 1372 was introduced on 1/15/2024 to authorize the use of a knowledge-based authentication assessment to establish satisfactory evidence of identity if the system meets certain requirements.

Virginia: Senate Bill 8, which would remove the oath requirement from the application for recommission of a notary, provided that the notary is in good standing and not subject to any investigation or proceeding, passed the Senate on 1/18/2024.

Wisconsin: Senate Bill 626, which would allow a notary public to perform a notarial act for a remotely located individual involving the creation and execution of a limited financial power of attorney for a real estate transaction, passed the Senate on 1/16/2024.

Real estate recording-related legislation

Alaska: Senate Bill 179 was pre-filed on 1/12/2024 to prohibit a city and the state from levying a tax on the transfer of real property.

Hawaii: House Bill 1628 was pre-filed on 1/16/2024 to provide that the transfer of a controlling interest in an entity shall be considered a taxable transaction of the entity’s real property. This appears similar to Senate Bill 2044, which was pre-filed last week.

Iowa: Senate Bill 2065 was introduced on 1/17/2024 to require that county recorders implement and administer a system for notifying a person when any instrument is recorded if the person is a named party to the instrument. Enrollment in the notification program will be voluntary for notice recipients.

Oklahoma: House Bill 3318 and Senate Bill 1763 were pre-filed on 1/17/2024 to prohibit the recording of an unfair real estate service agreement.

Oklahoma: Senate Bill 1704 was pre-filed on 1/16/2024 to provide that adverse possession does not establish title to real property if the owner has paid and discharged all taxes and assessments during the period the adverse possessor occupied the property.

Oklahoma: Senate Bill 1956 was pre-filed on 1/18/2024 to increase the penalties for any person who files or records a document purporting to convey right, title or interest in real property with a county clerk where the grantor does not hold bona fide color of title.

West Virginia: Senate Bill 457 was introduced on 1/16/2024 to adopt the Unfair Real Estate Service Agreement Act, which prohibits the recording of an unfair real estate service agreement and provides remedies for consumers.

Other items and legislation of interest

Indiana: Senate Bill 252 was introduced on 1/11/2024 to amend the requirements for publication of legal notices and the qualifications for a newspaper to publish legal notices.

Oklahoma: House Bill 3814 was pre-filed on 1/17/2024 to prohibit a hedge fund or subsidiary of a hedge fund from owning single family residential property in the state.

West Virginia: House Bill 4854 was introduced on 1/18/2024 to provide that a clerk may not charge a fee for a member of the public to inspect and take photographs of public records.

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Note that this update provides only a short summary of the listed bills, which are often lengthy and complex. It is not intended to include all potentially relevant provisions of each bill. For full details, please review the bill on the applicable state legislative web site.