Legislative Developments 1-8-2024

Legislative Developments 1-8-2024

Article 9 and lien-related legislation

Illinois: House Bill 4317 was introduced on 1/3/2024 to provide for additional parties that may be served with notice of a mechanics lien and to allow delivery of such notices by overnight delivery service with tracking.

Maine:  Senate Bill 894 was introduced on 1/3/2024 to authorize a municipality to claim a lien against real estate for shoreland zoning ordinance violations.

Utah:  House Bill 164 was pre-filed on 1/4/2024 to amend Uniform Commercial Code (UCC) Article 9 with respect to central bank digital currency. The bill would add a definition of “central bank digital currency” to UCC § 9-102 and exclude central bank digital currency from the definition of “money.” The bill would also provide that a central bank digital currency is not specie legal tender and is not legal tender in the state.

Utah: Senate Bill 43 was pre-filed on 12/28/2023 to amend the state’s version of UCC § 9-513. The amendment would add a new section that requires a filing office to send a notice to the secured party of record if the debtor files a termination statement.

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

No developments to report.

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

Illinois: House Bill 4347 was introduced on 1/4/2024 to prohibit a public or private entity from requiring an individual to submit a blockchain based identification system as a condition of receiving goods or services from the public or private entity. The bill would also prohibit a public or private entity from requiring an individual to provide a biometric identifier or biometric information as a condition of receiving goods or services from the public or private entity.

Maine:  Senate Bill 905 was introduced on 1/3/2024 to repeal the Money Transmitters Act and replace it with a model act. The bill would provide for licensing of those engaged in virtual currency business activity, require disclosures, and otherwise regulate virtual currency businesses.

Missouri: House Bill 2107 was introduced on 1/3/2024 to (i) exempt digital assets as a method of payment from certain taxes; (ii) prohibit local regulation of home digital asset mining; and (iii) prohibit regulation of digital asset mining other than regulations generally applicable to other businesses.

Utah: House Bill 118 was introduced on 1/3/2024 to provide that a person may not be compelled to produce a private key or make a private key known to any other person in any civil, criminal, administrative, legislative, or other proceeding in the state that relates to a digital asset, digital identity, or other interest or right to which the private key provides access.     

Business organization legislation

Florida: House Bill 1231 and Senate Bill 1346 were both pre-filed on 1/4/2024 to authorize the formation of protected series of a limited liability company.

New York:  The governor signed Senate Bill 995 on 12/22/2023 to enact the LLC Transparency Act. This new law includes state beneficial ownership reporting requirements modeled on the Federal Corporate Transparency Act (CTA). The bill incorporates definitions from the federal CTA regulations and requires the disclosure of certain beneficial ownership information to the Department of State when filing articles of organization. Limited Liability Companies (LLCs) in existence on or before the effective date shall have until January 1, 2025 to file an initial beneficial owner report. The new law takes effect on 12/21/2024.

Notary legislation

Florida:  House Bill 1255 was pre-filed on 1/4/2024 to make it a felony for a notary to falsely notarize a signature on a written or electronic document of a person who is not in the presence of the notary public, either in person or online, at the time the signature is notarized. The bill also includes new journal requirements for notaries.

Missouri:  House Bill 1886 and House Bill 2109 were both introduced on 1/3/2024 to provide for electronic wills, including electronic and remote online notarization of such wills. A similar bill was introduced the same day in the Senate as Senate Bill 1221.

Real estate recording-related legislation

Missouri: House Bill 1845 was introduced on 1/3/2024 to provide that no recorder shall accept for recording any deed or instrument that grants, assigns, transfers, or otherwise conveys or vests any interest in real property unless the deed or instrument indicates that a completed certificate of value has been delivered to an assessor.

Missouri:  House Bill 2048 was introduced on 1/3/2024 to prohibit a person from recording an instrument conveying any real estate under a contract for sale unless the instrument discloses the sales price of the real estate. The bill also provides civil penalties for violations.  

Wisconsin:  Assembly Bill 915 was introduced on 1/4/2024 to increase the fees for recording and filing instruments with registers of deeds.

Other items and legislation of interest

Utah:  Senate Bill 30 was pre-filed on 12/21/2023 to require that a person who conveys a fee simple interest in real property submit a declaration that includes various information about the property to the county recorder before the instrument conveying the fee simple interest may be recorded.