Legislative Developments 1-4-2024

Legislative Developments 1-4-2024

Article 9 and lien-related legislation

Florida: House Bill 175 was pre-filed on 10/16/2023 to provide that the priority of a judgment lien is determined under the state’s version of Uniform Commercial Code (UCC) Article 9. Committee assignment is pending.

Florida: Senate Bill 984 was pre-filed on 12/18/2023 to authorize a judgment lien to be acquired on specified personal property and in all payment intangibles and accounts of a judgment debtor whose location is in the state. Committee assignment is pending.

Missouri: House Bill 1551 was pre-filed on 12/1/2023 to amend the definition of “farm products” in Article 9 so that it eliminates the exclusion of standing timber and to expressly include trees. Committee assignment is pending.

Missouri: Senate Bill 1237 was pre-filed on 12/1/2023 to enhance the criminal penalties for the crime of filing false documents, including UCC records. Committee assignment is pending.

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

California: The governor signed Assembly Bill 39 on 10/13/2023 to provide for regulation of the digital asset financial businesses. The new law takes effect on 1/1/2024.

California: The governor signed Assembly Bill 1697 on 10/7/2023 to amend the state’s Uniform Electronic Transactions Act (UETA). The CA UETA exempted from its provisions, among other things, an authorization for the release of medical information by a provider of health care, health care service plan, pharmaceutical company, or contractor, and an authorization for the release of genetic test results by a health care service plan under the Confidentiality of Medical Information Act. This new law deletes the exception and makes conforming changes. The new law takes effect on 1/1/2024.  

California: The governor signed Senate Bill 95 on 9/22/2023 to enact the 2022 Amendments to the UCC. The new law takes effect on 1/1/2024.  

Delaware: The governor signed Senate Bill 157 on 8/18/2023 to enact the 2022 Amendments to the UCC. The new law took effect immediately.  

Wisconsin: Senate Bill 450 was introduced on 9/20/2023 to adopt the Uniform Voidable Transactions Act. The bill was assigned to the Senate Financial Institutions and Sporting Heritage Committee. A companion bill, Assembly Bill 453, was introduced on 9/28/2023 and assigned to the Assembly Consumer Affairs Committee.

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

Florida: House Bill 977 was pre-filed on 12/20/2023 to regulate virtual currency kiosk providers. Committee assignment is pending. A similar bill was pre-filed in the Senate as Senate Bill 662.

Missouri: Senate Bill 1050 was pre-filed on 12/1/2023 to authorize home digital asset mining businesses and limit local regulation of such businesses. Committee assignment is pending.

New Jersey: Assembly Bill 5747 was introduced on 11/30/2023 to classify all virtual currencies issued and sold to institutional investors as securities. The bill was assigned to the Financial Institutions and Insurance Committee.

New York: The governor vetoed Senate Bill 1891 on 11/17/2023. This bill would have established the New York state cryptocurrency and blockchain study task force.     

New York: The governor signed Senate Bill 5621 on 10/25/2023 to require that certain elected officials report digital asset holdings as part of their annual financial disclosures filed with an ethics commission.

Business organization legislation

Florida: Senate Bill 882 was pre-filed on 12/12/2023 to authorize the formation of decentralized autonomous organizations.  Committee assignment is pending.

Missouri: Senate Bill 897 was pre-filed on 12/1/2023 to make amend provisions and procedures for actions to dissolve Limited Liability Companies (LLCs).  Committee assignment is pending.

Washington: Senate Bill 5786 was pre-filed on 12/4/2023 to make updates to the Washington Business Corporations Act.  Committee assignment is pending.

Notary legislation

California: The governor signed Senate Bill 696 on 9/30/2023 to make several changes to the law regarding notaries and public records.  Among its various provisions, the bill (i) gives effect to a notarial act performed under the jurisdiction of another state, federally-recognized Indian tribe, or federal law; (ii) provides an application process with the secretary of state for an online notary; (iii) provides requirements and application process for certification of online notary platforms; and (iv) provides that a business consents to jurisdiction of the California courts if the individual for whom the remote notarial act was performed represented that they were a California resident. The new law takes effect on 1/1/2024.

Illinois: Senate Bill 2588 was introduced on 8/16/2023 to make amend the notary law so that certain electoral documents would be exempted from the notary journaling requirements. Committee assignment is pending.

Utah: House Bill 25 was pre-filed on 12/19/2023 to provide for electronic notarization of documents to be recorded electronically with a county recorder. Committee assignment is pending.

Virginia: Senate Bill 8 was pre-filed on 11/20/2023 to eliminate the oath requirements for an application for recommission. Committee assignment is pending.

Wisconsin: Senate Bill 626 was introduced on 11/7/2023 to allow 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. The bill was assigned to the Financial Institutions and Sporting Heritage Committee. A companion bill, Assembly Bill 659, was introduced on 11/9/2023 and assigned to the Assembly Judiciary Committee.

Real estate recording-related legislation

North Carolina: House Bill 422, which prohibits the recording of Unfair Real Estate Service Agreements, passed the Senate as amended on 8/16/2023. The House concurred the same day and the governor signed the bill on 8/24/2023. The new law took effect upon the governor’s signature.

Other items and legislation of interest

California: The governor signed Senate Bill 666 on 10/13/2023 to regulate fees for commercial financing transactions involving small businesses. The new law takes effect on 1/1/2024.  

Missouri: Senate Bill 826 was pre-filed on 12/1/2023 to prohibit any public entity from accepting a payment using central bank digital currency. Committee assignment is pending.

Missouri: Senate Bill 866 was pre-filed on 12/1/2023 to prohibit any public entity from accepting a payment using central bank digital currency. The bill also would require the state to accept payments in gold and silver coinage and allow the treasury to keep up to 1% of state funds in gold and silver bullion. Committee assignment is pending.

New Hampshire: House Bill 1674 was filed on 12/18/2023 to provide that electronic currency and bullion in the form of silver and gold shall be legal tender in the state. The bill also would provide for a bullion depository in the state treasury.  Committee assignment is pending.

Wisconsin: Assembly Bill 725 was introduced on 12/6/2023 to prohibit the state from accepting a payment in the form of central bank digital currency. The bill was assigned to the Financial Institutions Committee.