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Legislative Developments 1-7-22

Article 9 and Lien-Related Legislation

California: Assembly Bill 870 (2021) was amended on 1/3/2022 to provide for additional notice and hearing requirements before the department of toxic substances control may record a lien and allows an additional lien to be recorded if cleanup costs exceed the amount of the first lien. The bill is now in the Assembly Environmental Safety and Toxic Materials Committee.

Florida: House Bill 1173 was pre-filed on 1/4/2022 to make changes to the state’s judgment lien law. The bill would (i) specify that payment intangibles, accounts and proceeds thereof are subject to judgment liens; and (ii) make numerous changes to the judgment lien law with respect to priority and enforcement of judgment liens on motor vehicles, mobile homes, and vessels. The bill is pending introduction in the 2022 session.

Virginia: House Bill 21 was pre-filed on 12/23/2021 to clarify the advertising requirements for online personal property foreclosure sales. Committee assignment will follow introduction in the 2022 session.

Other Uniform Laws Legislation

No developments to report.

Emerging Technology Legislation (Blockchain, DLT, Cryptocurrency, etc.)

Indiana: House Bill 1211 was introduced on 1/5/2021 to direct the department of administration to gather information on how blockchain technology could be used by a state agency to: (i) achieve greater cost efficiency and cost effectiveness; and (ii) improve consumer convenience, experience, data security, and data privacy. The bill was assigned to the House Government and Regulatory Reform Committee.

Kentucky: Senate Bill 16 was introduced on 1/4/2021 to authorize creation of special purpose depository institutions that will provide special services to blockchain innovators and offer non-lending banking services. The bill was assigned to the Senate Banking and Insurance Committee.

Kentucky: Senate Bill 17 was introduced on 1/4/2021 to (i) define “digital assets” and classify them as intangible personal property; (ii) provide for perfection of a security interest in certain digital assets by possession or control; (iii) permit perfection of a security interest in certain digital assets by filing a financing statement; (iv) provide when a digital asset is located in a jurisdiction; (v) provide for registration of open blockchain tokens with the secretary of state; and (vi) authorize financial institutions to provide custodial services for digital assets. The bill was assigned to the Senate Banking and Insurance Committee.

New Hampshire: House Bill 1502 was introduced on 1/5/2021 to (i) define and categorize various types of digital assets for purposes of UCC Articles 8 and 9; (ii) provide for perfection of a security interest in digital assets by control; (iii) define what constitutes control of a digital asset; and (iv) authorize banks to provide digital asset custodial services. Committee assignment is pending.

New Hampshire: House Bill 1503 was introduced on 1/5/2021 to exempt a developer, seller, or facilitator of the exchange of an open blockchain token from certain securities laws. Committee assignment is pending.

Virginia: House Bill 80 was pre-filed on 1/4/2022 to create the Healthcare Regulatory Sandbox program for innovative use of new and emerging technology, including blockchain. The bill is pending introduction.

Washington: House Bill 1729 was pre-filed on 1/3/2022 to establish the Washington blockchain work group for the purpose of examining various potential applications for blockchain technology including, but not limited to, applications in computing, banking and other financial services, the real estate transaction process, health care, supply chain management, higher education, and public recordkeeping. Committee assignment will follow introduction in the 2022 session. This appears to be a companion to Senate Bill 5544, which was pre-filed in December.

Business Organization Legislation

No developments to report.

Notary Legislation

California: Assembly Bill 1093 (2021) was amended on 1/3/2022 to authorize remote online notarization and provide for the commissioning of remote notaries. The bill is now in the Assembly Judiciary Committee.

Maryland: House Bill 82 was pre-filed on 12/23/2021 to increase the maximum fees that the secretary of state may set by rule for a notarial act from $4 to $25. Committee assignment will follow introduction in the 2022 session.

New York: The governor signed SB 1780 on 12/22/2021 to provide for electronic and remote notarization. The new law will take effect 180 days after enactment, which appears to be 6/20/2022.

Vermont: House Bill 512 was introduced on 1/4/2022 to adopt the Revised Uniform law on Notarial Acts, including remote notary provisions. In addition, the bill would adopt URPERA and establish a state office to manage municipal land records (see below). Committee assignment is pending. introduction.

Real-Estate-Recording-Related Legislation

Indiana: House Bill 1025 was introduced on 1/4/2021 to prohibit a county recorder from recording a deed for a non-dwelling structure connected to a commercial onsite sewage system unless such system has been inspected and certifications provided to the health department, county recorder and buyer. The bill was be assigned to the House Environmental Affairs Committee.

Vermont: House Bill 512 was introduced on 1/4/2022 to create an office within the secretary of state to manage municipal land records, including the implementation and utilization of modern methods, techniques, equipment, documentation, and training to improve the quality of such records and help to achieve a high degree of standardization throughout the State. The bill also adopts the Uniform Real Property Electronic Recording Act (URPERPA). Committee assignment is pending. introduction.

Other Items/Legislation of Interest

No developments to report.

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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.