Article 9 and Lien-Related Legislation
California: The governor signed SB 572 on 9/27/2021 to allow the Labor Commission to create a lien on real property as an alternative to a judgment lien for amounts due from cited parties. The lien would be recorded with the county recorder of any county where the cited party has real property. The new law takes effect on 1/1/2022.
Florida: House Bill 313 (2022) was pre-filed on 10/14/2021 to add Section 617 to the state’s version of Article 9, which would make it unlawful for any person, by inducement, persuasion, misrepresentation, intimidation, or other means, to cause the breach or violation of, or the refusal or failure to perform, a lawful contract by any party thereto or intentionally and unjustly interfere with or disrupt a business relationship. The bill is pending introduction in the 2022 session.
Florida: Senate Bill 336 (2022) was pre-filed on 9/23/2021 to amend UCC Article 9 to exclude a security interest in an ownership interest in a general partnership, limited partnership or LLC from certain provisions of UCC 9-406 and 9-408. The bill is pending introduction in the 2022 session.
Florida: Senate Bill 406 (2022) was pre-filed on 10/5/2021 to amend the state’s UCC § 9-108 to provide that a description of collateral by “accounts” is not sufficient for certain types of accounts and entitlements related to pensions, tax-free health savings accounts, education accounts, life insurance proceeds, disability benefits and similar assets.. The bill is pending introduction in the 2022 session.
Other Uniform Laws Legislation
No developments to report.
Emerging Technology Legislation (Blockchain, DLT, Cryptocurrency, etc.)
Michigan: The House passed HR 119 on 10/13/2021 to declare October 2021 as Cryptocurrency Education Month in the State of Michigan.
New Jersey: The governor signed AB 1178, a 2020 carryover bill, on 9/28/2021 that will allow corporations to utilize electronic networks, including distributed electronic networks, in order to meet recordkeeping requirements. The new law took effect immediately.
United States: House Resolution 5496 was introduced on 10/5/2021 to amend the Securities Act of 1933 to provide a safe harbor for transactions in certain tokens under certain conditions.. The bill was assigned to the House Financial Services Committee.
Business Organization Legislation
North Carolina: The governor signed HB 320 on 9/20/2021 to authorize business organizations to hold meetings remotely under certain conditions. The new law took effect immediately.
United States: House Resolution 5525 was introduced on 10/8/2021 to adopt the Enabler’s Act. This bill would amend the Bank Secrecy Act to expand the definition of “financial institution” to include corporate service companies, registered agents, trusts, CPAs, certain public relations businesses and third-party payment services. This would give various agencies greater regulatory authority over these entities. The bill appears to be in response to the recent Pandora Papers reports. The bill was assigned to the House Financial Services Committee.
North Carolina: HB 776, which would adopt the Remote Online Notarization Act, passed the Senate on 9/22/2021 as amended and was returned to the House for concurrence. The bill provides for the qualifications, procedures and other requirements for remote online notarization.
Pennsylvania: Senate Bill 898 was introduced on 10/6/2021 to establish a predictable fee schedule for real estate recording in certain counties. The bill would also create special recording fees in certain counties. The bill was assigned to the Senate Local Government Committee.
Other Items/Legislation of Interest
No developments to report.
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.