Legislative Developments 1-9-2023

Legislative Developments 1-9-2023

Article 9 and Lien-Related Legislation

New York: Assembly Bill 46 was introduced on 1/4/2023 to provide for an employee’s lien for wage claims. Claimant must file a notice of lien and a Uniform Commercial Code (UCC) financing statement to perfect the lien. The bill was assigned to the Assembly Judiciary Committee. Similar bills have been introduced during the past few legislative sessions.  

Other Uniform Laws Legislation (Includes UCC Article 12―Controllable Electronic Records)

Maine: House Bill 59 was introduced on 1/5/2023 to enact UCC Article 12―Controllable Electronic Records and conforming amendments. Committee assignment is pending.  

North Dakota: House Bill 1080 was introduced on 1/3/2023 to enact UCC Article 12―Controllable Electronic Records and conforming amendments. The bill was assigned to the House Judiciary Committee.

Washington: Senate Bill 5077 was pre-filed on 12/20/2022 to enact UCC Article 12―Controllable Electronic Records and conforming amendments. Committee assignment is pending.

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

New York: Senate Bill 359 was introduced on 1/4/2023 to establish various offenses related to crypto fraud, including fraud involving virtual tokens, private keys, “rug pulls,” and disclosures. The bill was assigned to the Senate Codes Committee.   

New York: Senate Bill 360 was introduced on 1/4/2023 to require certain disclosures and prohibit false, misleading, and deceptive statements in advertising regarding a virtual token or financial product or service. The bill was assigned to the Senate Banks Committee.   

United States: The president signed the National Defense Authorization Act (HB 7776) on 12/23/2022. Included within the lengthy bill was a provision that requires the Director of the Office of Science and Technology Policy to develop a national strategy for the research and development of distributed ledger technologies and their applications, including applications of public and permissionless distributed ledgers. The national strategy will include application of distributed ledger technology to preserve privacy, facilitate delivery of government services, modernize regulatory compliance, and facilitate access to financial services for underserved and underbanked populations. 

United States: Senate Bill 5267 was introduced on 12/15/2022 to adopt the Digital Asset Anti-Money Laundering Act of 2022.  This bill would require the Financial Crimes Enforcement Network (FinCEN) and Treasury Department to promulgate regulations to prevent use of digital assets for money laundering. The bill was assigned to the Senate Homeland Security and Governmental Affairs committees. 

United States: Senate Bill 5286 was introduced on 12/15/2022 to provide for supervision of digital asset markets by self-regulatory organizations. The bill was assigned to the Senate Banking, Housing and Urban Affairs committees. 

Wyoming: Senate Bill 76 was pre-filed on 1/4/2023 to provide for the registration of digital assets with the secretary of state. Upon registration, such digital assets shall be deemed located in the state for purposes of the state’s laws which may impact ownership rights of the digital asset or require transfer of the digital asset. Committee assignment is pending. 

Business Organization Legislation

Wyoming: House Bill 85 was pre-filed on 1/5/2023 to provide for for-profit public benefit corporations. A public benefit corporation is intended to produce a public benefit and to operate in a responsible and sustainable manner. Committee assignment is pending. 

Wyoming: House Bill 86 was pre-filed on 1/5/2023 to provide that no person shall 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 this state that relates to a digital asset, digital identity, or other interest or right to which the private key provides access unless a public key is unavailable or unable to disclose the requisite information with respect to the digital asset, digital identity, or other interest or right. Committee assignment is pending. 

Wyoming: Senate Bill 75 was pre-filed on 1/4/2023 to amend the state’s corporations law with respect to decentralized autonomous organizations. The bill would provide for a publicly available identifier to identify a smart contract. Committee assignment is pending. 

Notary Legislation

New York: Assembly Bill 329 was introduced on 1/4/2023 to require a notary or commissioner of deeds to create a detailed notarial record of each notarial act performed in connection with a document of conveyance. The bill defines document of conveyance as a written instrument that transfers or purports to transfer title effecting a change in ownership to residential real property. Committee assignment is pending.    

New York: Senate Bill 560 was introduced on 1/5/2023 to authorize a notary to remotely administer an oath to a witness in legal proceedings under certain conditions. Committee assignment is pending.    

North Dakota: House Bill 1054 was introduced on 1/3/2023 to provide a form of application for a notary commission and provide that a notary commission may be renewed within 60 days of expiration in the same manner as an original commission. The bill was assigned to the House Government and Veterans Affairs Committee.  

North Dakota: House Bill 1083 was introduced on 1/3/2023 to revise the remote notary provisions of the state’s version of the Revised Uniform Law on Notarial Acts. The bill was assigned to the House Judiciary Committee.  

Real Estate Recording-Related Legislation

Michigan: The governor signed SB 1133 (2021) on 12/13/2022 to require registers of deeds to collect a $4 fee in addition to all other recording fees. The new fee is to be remitted to the state treasurer and deposited in the state remonumentation fund.  The $4 fee will remain in place until January 1, 2043, at which time it will drop to $2. The bill is pending action by the governor. The new law took effect immediately.

Missouri:  House Bill 615 was introduced on 1/4/2023 to prohibit a county recorder from accepting for recording a deed or other instrument that transfers an interest in real property unless such deed or instrument indicates that a completed certificate of real estate value has been filed with an assessor. Committee assignment is pending.  

New York: Senate Bill 318 was introduced on 1/4/2023 to require the recording of any mezzanine debt and that such debt is subject to the mortgage tax. The bill also amends the state’s UCC § 9-601 to provide that a security interest in mezzanine debt related to real property upon which a mortgage has been filed may only be perfected by filing a UCC financing statement and only after the tax required by this bill has been paid. The bill was assigned to the Senate Judiciary Committee. Similar bills have been introduced during the past few legislative sessions.  

Other Items/Legislation of Interest

New York:  Senate Bills 326 and 342 were introduced on 1/4/2023 to prohibit any food service or retail establishment from refusing to accept cash for payment.     

United States: House Bill 8152 was introduced on 12/15/2022 to adopt the Digital Asset Anti-Money Laundering Act of 2022. This bill would require the Financial Crimes Enforcement Network (FinCEN) and Treasury Department to promulgate regulations to prevent use of digital assets for money laundering. The bill was assigned to the Senate Homeland Security and Governmental Affairs committees. 

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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.